Document:

Exhibit 10.3

 

RIGHTNOW TECHNOLOGIES, INC.

 

2004 EQUITY INCENTIVE PLAN

 

Section 1.               Purpose.  The purpose of the RightNow Technologies,
Inc. 2004 Equity Incentive Plan (the “Plan”) is to promote the interests of
RightNow Technologies, Inc. (the “Company”) and its stockholders by aiding the
Company in attracting, retaining and providing incentives to employees,
officers, directors who are not also employees (“Non-Employee Directors”),
consultants and independent contractors.

 

Section 2.               Definitions.  As used in the Plan, the following terms
shall have the meanings set forth below:

 

“Affiliate” shall mean (i) any entity that, directly or indirectly
through one or more intermediaries, is controlled by the Company, and (ii) any
entity in which the Company has a significant equity interest, as determined by
the Committee.

 

“Award” shall mean any Option, Stock Appreciation Right, Restricted
Stock, Restricted Stock Unit, Performance Award or other Stock-Based Award
granted under the Plan.

 

“Award Agreement” shall mean any written agreement, contract or other
instrument or document evidencing any Award granted under the Plan.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended from
time to time, and any regulations promulgated thereunder.

 

“Committee” shall mean either the Board of Directors of the Company
(the “Board”) or a committee of the Board appointed by the Board (the
“Compensation Committee”) to administer the Plan and composed of not less than
two directors, each of whom is a “Non-Employee Director” within the meaning of
Rule 16b-3 (which term “Non-Employee Director” is defined in this paragraph for
purposes of the definition of “Committee” only and is not intended to define
such term as used elsewhere in the Plan) and each of whom is an “outside director”
within the meaning of Section 162(m) of the Code.

 

“Eligible Person” shall mean any employee, officer, director (including
any Non-Employee Director), consultant or independent contractor providing
services or other benefits to the Company or any Affiliate who the Committee
determines to be an Eligible Person.

 

“Fair Market Value” shall mean, with respect to any property
(including, without limitation, any Shares or other securities), the fair
market value of such property determined by such methods or procedures as shall
be established from time to time by the Committee.  Notwithstanding the foregoing, unless
otherwise

 

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determined by
the Committee, the Fair Market Value of Shares on a given date for purposes of
the Plan shall not be less than:  (i) the
closing price as reported for composite transactions, if the Shares are then
listed on a national securities exchange; (ii) the last sale price, if the
Shares are then quoted on the Nasdaq National Market; or (iii) in all other
cases, the average of the closing representative bid and asked prices of the
Shares, all on the date as of which Fair Market Value is being determined.  If on a given date the Shares are not traded
in an established securities market, the Committee shall make a good faith
attempt to satisfy the requirements of this clause and in connection therewith
shall take such action as it deems necessary or advisable.

 

“Incentive Stock Option” shall mean an option granted under Section
6(a) of the Plan that is intended to meet the requirements of Section 422 of
the Code or any successor provision.

 

“Non-Qualified Stock Option” shall mean an option granted under Section
6(a) of the Plan that is not intended to be an Incentive Stock Option.

 

“Option” shall mean an Incentive Stock Option or a Non-Qualified Stock
Option.

 

“Other Stock-Based Award” shall mean any right granted under Section
6(e) of the Plan.

 

“Participant” shall mean an Eligible Person designated to be granted an
Award under the Plan.

 

“Performance Award” shall mean any right granted under Section 6(d) of
the Plan.

 

“Person” shall mean any individual, corporation, partnership,
association or trust.

 

“Restricted Stock” shall mean any Share granted under Section 6(c) of
the Plan.

 

“Restricted Stock Unit” shall mean any unit granted under Section 6(c)
of the Plan evidencing the right to receive a Share (or a cash payment equal to
the Fair Market Value of a Share) at some future date.

 

“Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended.

 

“Shares” shall mean shares of Common Stock, $0.001 par value, of the
Company, or such other securities or property as may become subject to Awards
pursuant to an adjustment made under Section 4(c) of the Plan.

 

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“Stock Appreciation Right” shall mean any right granted under Section
6(b) of the Plan.

 

Section 3.               Administration.

 

(a)           Power
and Authority of the Committee.  The
Plan shall be administered by the Compensation Committee with respect to grants
to the officers and directors of the Company and by the Board with respect to
grants to all other Eligible Persons. 
The Compensation Committee may from time to time assist the Board in
administering the Plan with respect to Eligible Persons who are not officers or
directors of the Company, or the Board may delegate such administration
function entirely to the Compensation Committee.  Subject to the terms of the Plan and
applicable law, the Committee shall have full power and authority to:  (i) designate Participants; (ii) determine
the type or types of Awards to be granted to each Participant under the Plan;
(iii) determine the number of Shares to be covered by (or with respect to which
payments, rights or other matters are to be calculated in connection with) each
Award; (iv) determine the terms and conditions of any Award or Award Agreement;
(v) amend the terms and conditions of any Award or Award Agreement and accelerate
the exercisability of any Award or the lapse of restrictions relating to any
Award; (vi) determine whether, to what extent and under what circumstances
Awards may be exercised in cash, Shares, other securities, other Awards or
other property, or canceled, forfeited or suspended; (vii) determine whether,
to what extent and under what circumstances cash, Shares, other securities,
other Awards, other property and other amounts payable with respect to an Award
under the Plan shall be deferred either automatically or at the election of the
holder thereof or the Committee; (viii) interpret and administer the Plan and
any Award made under or instrument or agreement, including an Award Agreement,
relating to the Plan; (ix) establish, amend, suspend or waive such rules and
regulations and appoint such agents as it shall deem appropriate for the proper
administration of the Plan; and (x) make any other determination and take any
other action that the Committee deems necessary or desirable for the
administration of the Plan.  Unless
otherwise expressly provided in the Plan, all designations, determinations,
interpretations and other decisions under or with respect to the Plan or any
Award shall be within the sole discretion of the Committee, may be made at any
time and shall be final, conclusive and binding upon any Participant, any
holder or beneficiary of any Award and any employee of the Company or any
Affiliate.

 

Section 4.               Shares Available
for Awards.

 

(a)           Shares
Available.  Subject to adjustment as
provided in Section 4(c), the total number of Shares available for granting
Awards under the Plan shall be 3,500,000, plus an automatic annual increase on
the first day of each of the Company’s fiscal years beginning in 2005 and
ending in 2014 equal to the lesser of (i) 1,000,000 shares of Common Stock or
(ii) four percent of the number

 

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of shares of
Common Stock outstanding on the last day of the immediately preceding fiscal
year or (iii) such lesser number as determined by the Board.  Shares to be issued under the Plan may be
either authorized but unissued Shares or Shares acquired in the open market or
otherwise.  Any Shares that are used by a
Participant as full or partial payment to the Company of the purchase price
relating to an Award, or in connection with the satisfaction of tax obligations
relating to an Award, shall again be available for granting Awards under the
Plan (except that Shares used in connection with the satisfaction of tax
obligations shall not be available for granting Incentive Stock Options).  If any Shares covered by an Award or to which
an Award relates are not purchased or are forfeited, or if an Award otherwise
terminates without delivery of any Shares, then the number of Shares counted
against the aggregate number of Shares available under the Plan with respect to
such Award, to the extent of any such forfeiture or termination, shall again be
available for granting Awards under the Plan.

 

(b)           Accounting
for Awards.  For purposes of this
Section 4, if an Award entitles the holder thereof to receive or purchase
Shares, the number of Shares covered by such Award or to which such Award
relates shall be counted on the date of grant of such Award against the
aggregate number of Shares available for granting Awards under the Plan.  Such Shares may again become available for
granting Awards under the Plan pursuant to the provisions of Section 4(a) of
the Plan, subject to the limitations set forth in Section 4(c) of the Plan.

 

(c)           Adjustments.  In the event that the Committee shall
determine that any dividend or other distribution (whether in the form of cash,
Shares, other securities or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company, or other similar corporate transaction or event
affects the Shares such that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of
(i) the number and type of Shares (or other securities or other property) that
thereafter may be made the subject of Awards, (ii) the number and type of
Shares (or other securities or other property) subject to outstanding Awards,
and (iii) the purchase or exercise price with respect to any Award; provided,
however, that the number of Shares covered by any Award or to which such
Award relates shall always be a whole number.

 

(d)           Award
Limitations Under the Plan.  No
Eligible Person may be granted any Award or Awards, the value of which is based
solely on an increase in the value of the Shares after the date of grant of
such Awards, for more than 1,000,000 Shares, subject to adjustment as provided
in the Plan, in the aggregate in any calendar year.  The foregoing annual limitation specifically
includes the

 

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grant of any
“performance-based” Awards within the meaning of Section 162(m) of the Code.

 

Section 5.               Eligibility.  Any Eligible Person of the Company or any
Affiliate shall be eligible to be designated a Participant.  In determining which Eligible Persons shall
receive an Award and the terms of any Award, the Committee may take into account
the nature of the services rendered by the respective Eligible Persons, their
present and potential contributions to the success of the Company or such other
factors as the Committee, in its discretion, shall deem relevant.  Notwithstanding the foregoing, an Incentive
Stock Option may be granted only to full-time or part-time employees (which
term as used herein includes, without limitation, officers and directors who
are also employees), and an Incentive Stock Option shall not be granted to an
employee of an Affiliate unless such Affiliate is also a “subsidiary
corporation” of the Company within the meaning of Section 424(f) of the Code or
any successor provision.

 

Section 6.               Awards.

 

(a)           Options.  The Committee is hereby authorized to grant
Options to Participants with the following terms and conditions and with such
additional terms and conditions not inconsistent with the provisions of the
Plan as the Committee shall determine:

 

(i)            Exercise
Price.  The purchase price per Share
purchasable under an Option shall be determined by the Committee; provided,
however, that the purchase price for Shares underlying Incentive Stock
Options shall not be less than 100% of the Fair Market Value of a Share on the
date of grant of such Incentive Stock Option, or 110% of the Fair Market Value
of a Share on the date of grant of such Incentive Stock Option if the
Participant owns directly or indirectly greater than 10% of the Company’s
outstanding capital stock.

 

(ii)           Option
Term.  The term of each Option shall
be fixed by the Committee; provided, however, that the term shall
not exceed 10 years, or, in the case of Incentive Stock Options, 5 years if the
Participant owns directly or indirectly greater than 10% of the Company’s
outstanding capital stock.

 

(iii)          Time
and Method of Exercise.  The
Committee shall determine the time or times at which an Option may be exercised
in whole or in part and the method or methods by which, and the form or forms
(including, without limitation, cash, Shares, other securities, other Awards or
other property, or any combination thereof, having a Fair Market Value on the
exercise date equal to the relevant exercise price) in which, payment of the
exercise price with respect thereto may be made or deemed to have been made.

 

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(b)           Stock
Appreciation Rights.  The Committee
is hereby authorized to grant Stock Appreciation Rights to Participants subject
to the terms of the Plan and any applicable Award Agreement.  A Stock Appreciation Right granted under the
Plan shall confer on the holder thereof a right to receive upon exercise
thereof the excess of (i) the Fair Market Value of one Share on the date of
exercise (or, if the Committee shall so determine, at any time during a
specified period before or after the date of exercise) over (ii) the grant
price of the Stock Appreciation Right as specified by the Committee, which
price shall not be less than 100% of the Fair Market Value of one Share on the
date of grant of the Stock Appreciation Right. 
Subject to the terms of the Plan and any applicable Award Agreement, the
grant price, term, methods of exercise, dates of exercise, methods of
settlement and any other terms and conditions of any Stock Appreciation Right
shall be as determined by the Committee. 
The Committee may impose such conditions or restrictions on the exercise
of any Stock Appreciation Right as it may deem appropriate.

 

(c)           Restricted
Stock and Restricted Stock Units. 
The Committee is hereby authorized to grant Restricted Stock and
Restricted Stock Units to Participants with the following terms and conditions
and with such additional terms and conditions not inconsistent with the
provisions of the Plan as the Committee shall determine:

 

(i)            Restrictions.  Shares of Restricted Stock and Restricted
Stock Units shall be subject to such restrictions as the Committee may impose
(including, without limitation, any limitation on the right to vote a Share of
Restricted Stock or the right to receive any dividend or other right or
property with respect thereto), which restrictions may lapse separately or in
combination at such time or times, in such installments or otherwise as the
Committee may deem appropriate.

 

(ii)           Stock
Certificates; Delivery of Shares. 
Any Restricted Stock granted under the Plan shall be evidenced by
issuance of a stock certificate or certificates, which certificate or
certificates shall be held by the Company. 
Such certificate or certificates shall be registered in the name of the
Participant and shall bear an appropriate legend referring to the restrictions
applicable to such Restricted Stock. 
Promptly upon the lapse or waiver of applicable restrictions, Shares
representing Restricted Stock that is no longer subject to restrictions shall
be delivered to the holder thereof.  In
the case of Restricted Stock Units, no Shares shall be issued at the time such
Awards are granted.  Upon the lapse or
waiver of restrictions and the restricted period relating to Restricted Stock
Units evidencing the right to receive Shares, such Shares shall be issued and
delivered to the holders of the Restricted Stock Units.

 

(iii)          Forfeiture.  Except as otherwise determined by the
Committee, upon a Participant’s termination of employment (as

 

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determined
under criteria established by the Committee) during the applicable restriction
period, all Shares of Restricted Stock and all Restricted Stock Units held by
the Participant at such time shall be forfeited and reacquired by the Company; provided,
however, that the Committee may, when it finds that a waiver would be in
the best interest of the Company, waive in whole or in part any or all
remaining restrictions with respect to Shares of Restricted Stock or Restricted
Stock Units.

 

(d)           Performance
Awards.  The Committee is hereby
authorized to grant Performance Awards to Participants subject to the terms of
the Plan and any applicable Award Agreement. 
A Performance Award granted under the Plan (i) may be denominated or
payable in cash, Shares (including, without limitation, Restricted Stock and
Restricted Stock Units), other securities, other Awards or other property and
(ii) shall confer on the holder thereof the right to receive payments, in whole
or in part, upon the achievement of such performance goals during such
performance periods as the Committee shall establish.  Subject to the terms of the Plan and any
applicable Award Agreement, the performance goals to be achieved during any
performance period, the length of any performance period, the amount of any
Performance Award granted, the amount of any payment or transfer to be made
pursuant to any Performance Award and any other terms and conditions of any
Performance Award shall be determined by the Committee.

 

(e)           Other
Stock-Based Awards.  The Committee is
hereby authorized to grant to Participants such other Awards that are
denominated or payable in, valued in whole or in part by reference to, or
otherwise based on or related to, Shares (including, without limitation,
securities convertible into Shares), as are deemed by the Committee to be
consistent with the purpose of the Plan; provided, however, that
such grants must comply with applicable law. 
Subject to the terms of the Plan and any applicable Award Agreement, the
Committee shall determine the terms and conditions of such Awards. Shares or
other securities delivered pursuant to a purchase right granted under this
Section 6(e) shall be purchased for such consideration, which may be paid by
such method or methods and in such form or forms (including, without
limitation, cash, Shares, other securities, other Awards or other property or
any combination thereof), as the Committee shall determine.

 

(f)            General.

 

(i)            No
Cash Consideration for Awards. 
Awards shall be granted for no cash consideration or for such minimal
cash consideration as may be required by applicable law.

 

(ii)           Awards
May Be Granted Separately or Together. 
Awards may, in the discretion of the Committee, be granted either alone
or in addition to, in tandem with or in substitution for any other Award or any

 

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award granted
under any plan of the Company or any Affiliate other than the Plan.  Awards granted in addition to or in tandem
with other Awards or in addition to or in tandem with awards granted under any
such other plan of the Company or any Affiliate may be granted either at the
same time as or at a different time from the grant of such other Awards or
awards.

 

(iii)          Forms
of Payment under Awards.  Subject to
the terms of the Plan and of any applicable Award Agreement, payments or
transfers to be made by the Company or an Affiliate upon the grant, exercise or
payment of an Award may be made in such form or forms as the Committee shall
determine (including, without limitation, cash, Shares, other securities, other
Awards or other property or any combination thereof), and may be made in a
single payment or transfer, in installments or on a deferred basis, in each
case in accordance with rules and procedures established by the Committee.  Such rules and procedures may include,
without limitation, provisions for the payment or crediting of reasonable
interest on installment or deferred payments.

 

(iv)          Limits
on Transfer of Awards.  No Award and
no right under any such Award shall be transferable by a Participant otherwise
than by will or by the laws of descent and distribution; provided, however,
that, if so determined by the Committee, a Participant may, in the manner
established by the Committee, transfer Options (other than Incentive Stock
Options) or designate a beneficiary or beneficiaries to exercise the rights of
the Participant and receive any property distributable with respect to any
Award upon the death of the Participant. 
Except as otherwise provided in any applicable Award Agreement or
amendment thereto (other than an Award Agreement relating to an Incentive Stock
Option), pursuant to terms determined by the Committee, each Award or right
under any Award shall be exercisable during the Participant’s lifetime only by
the Participant or, if permissible under applicable law, by the Participant’s
guardian or legal representative.  Except
as otherwise provided in any applicable Award Agreement or amendment thereto
(other than an Award Agreement or amendment thereto relating to an Incentive
Stock Option), no Award or right under any such Award may be pledged,
alienated, attached or otherwise encumbered, and any purported pledge,
alienation, attachment or encumbrance thereof shall be void and unenforceable
against the Company or any Affiliate.

 

(v)           Term
of Awards.  The term of each Award
shall be for such period as may be determined by the Committee.

 

(vi)          Restrictions;
Securities Exchange Listing.  All
certificates for Shares or other securities delivered under the Plan pursuant
to any Award or the exercise thereof shall be subject to such stop transfer
orders

 

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and other
restrictions as the Committee may deem advisable under the Plan or the rules,
regulations and other requirements of the Securities and Exchange Commission and
any applicable federal or state securities laws, and the Committee may cause
appropriate entries to be made or legend or legends to be affixed on any such
certificates to reflect such restrictions. 
If the Shares or other securities are listed on a securities exchange,
the Company shall not be required to deliver any Shares or other securities
covered by an Award unless and until such Shares or other securities have been
listed on such securities exchange.

 

(g)           Directors’ Options.

 

(i)            Annual Grant.  Each Non-Employee Director shall receive
annually on the date of each annual stockholders’ meeting Non-Qualified Options
to purchase 15,000 Shares, provided that such Non-Employee Director has
not received an initial grant as described in Section 6(g)(ii) below during the
same calendar year.  Each chair of each
committee of the Board shall receive annually on the date of each annual
stockholders’ meeting additional Non-Qualified Options to purchase 5,000
Shares, provided that such committee chair has not received an initial
grant as described in Section 6(g)(ii) below during the same calendar
year.  The exercise prices for the Shares
shall be the Fair Market Value of the Shares on the date of the grants.  Each Option shall become exercisable
immediately upon grant, shall be exercisable for 10 years following the date of
grant and shall be generally subject to the terms and conditions set forth in
the Plan.

 

(ii)           Initial Grant.  Upon appointment or initial election to the
Board, each Non-Employee Director shall receive an Option to purchase 30,000
Shares.  The exercise price for the
Shares shall be the Fair Market Value of the Shares on the date of grant.  Each Option shall become exercisable in
twelve installments of 2,500 Shares every three months from the date of grant,
shall be exercisable for 10 years following the date of grant and shall be
generally subject to the terms and conditions set forth in the Plan.

 

(iii)          No Limitation on Other Awards.  The provisions of this Section 6(g) shall not
prevent the Committee from granting other and additional Awards to Non-Employee
Directors, subject only to the terms and conditions set forth in the Plan.

 

Section 7.               Amendment and
Termination; Adjustments.  Except to
the extent prohibited by applicable law and unless otherwise expressly provided
in an Award Agreement or in the Plan:

 

(a)           Amendments
to the Plan.  The Board may amend,
alter, suspend, discontinue or terminate the Plan; provided, however,
that, notwithstanding any

 

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other
provision of the Plan or any Award Agreement, without the approval of the
stockholders of the Company, no such amendment, alteration, suspension,
discontinuation or termination shall be made that, absent such stockholder
approval:

 

(i)            would
cause Rule 16b-3 or Section 162(m) of the Code to become unavailable with
respect to the Plan;

 

(ii)           would
violate the rules or regulations of the Nasdaq National Market, any other
securities exchange or the National Association of Securities Dealers, Inc.
that are applicable to the Company; or

 

(iii)          would
cause the Company to be unable, under the Code, to grant Incentive Stock
Options under the Plan.

 

(b)           Amendments
to Awards.  The Committee may waive
any conditions of or rights of the Company under any outstanding Award,
prospectively or retroactively.  The
Committee may not amend, alter, suspend, discontinue or terminate any
outstanding Award, prospectively or retroactively, without the consent of the
Participant or holder or beneficiary thereof, except as otherwise herein
provided or in the Award Agreement.

 

(c)           Correction
of Defects, Omissions and Inconsistencies. 
The Committee may correct any defect, supply any omission or reconcile
any inconsistency in the Plan or any Award in the manner and to the extent it
shall deem desirable to carry the Plan into effect.

 

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Section 8.               Income Tax
Withholding; Tax Bonuses.

 

(a)           Withholding.  In order to comply with all applicable
federal or state income tax laws or regulations, the Company may take such
action as it deems appropriate to ensure that all applicable federal or state
payroll, withholding, income or other taxes that are the sole and absolute
responsibility of a Participant are withheld or collected from such
Participant.  In order to assist a
Participant in paying all or a portion of the federal and state taxes to be
withheld or collected upon exercise or receipt of (or the lapse of restrictions
relating to) an Award, the Committee, in its discretion and subject to such
additional terms and conditions as it may adopt, may permit the Participant to
satisfy such tax obligation by (i) electing to have the Company withhold a
portion of the Shares otherwise to be delivered upon exercise or receipt of (or
the lapse of restrictions relating to) such Award with a Fair Market Value
equal to the amount of such taxes or (ii) delivering to the Company Shares
other than Shares issuable upon exercise or receipt of (or the lapse of
restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes.  The election, if
any, must be made on or before the date that the amount of tax to be withheld
is determined.

 

(b)           Tax
Bonuses.  The Committee, in its
discretion, shall have the authority, at the time of grant of any Award under
this Plan or at any time thereafter, to approve cash bonuses to designated
Participants to be paid upon their exercise or receipt of (or the lapse of
restrictions relating to) Awards in order to provide funds to pay all or a portion
of federal and state taxes due as a result of such exercise or receipt (or the
lapse of restrictions relating to) Awards in order to provide funds to pay all
or a portion of federal and state taxes due as a result of such exercise or
receipt (or the lapse of such restrictions). 
The Committee shall have full authority in its discretion to determine
the amount of any such tax bonus.

 

Section 9.               General
Provisions.

 

(a)           No
Rights to Awards.  No Eligible
Person, Participant or other Person shall have any claim to be granted any
Award under the Plan, and there is no obligation for uniformity of treatment of
Eligible Persons, Participants or holders or beneficiaries of Awards under the
Plan.  The terms and conditions of Awards
need not be the same with respect to different Participants.

 

(b)           Award
Agreements.  No Participant will have
rights under an Award granted to such Participant unless and until an Award
Agreement shall have been duly executed on behalf of the Company.

 

(c)           No
Rights of Stockholders.  Except with
respect to Restricted Stock and other grants of Common Stock of the Company,
neither a Participant nor the Participant’s legal representative shall be, or
shall have any of the rights and privileges of, a stockholder of the Company in
respect of any Shares issuable

 

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upon the
exercise or payment of any Award, in whole or in part, unless and until the
Shares have been issued.

 

(d)           No
Limit on Other Compensation Arrangements. 
Nothing contained in the Plan shall prevent the Company or any Affiliate
from adopting or continuing in effect other or additional compensation
arrangements, and such arrangements may be either generally applicable or
applicable only in specific cases.

 

(e)           No
Right to Employment.  The grant of an
Award shall not be construed as giving a Participant the right to be retained
in the employ, or as giving a Non-Employee Director the right to continue as a
director, of the Company or any Affiliate, nor will it affect in any way the
right of the Company or an Affiliate to terminate such employment or the term
of a Non-Employee Director at any time, with or without cause.  In addition, the Company or an Affiliate may
at any time dismiss a Participant from employment or terminate the term of a
Non-Employee Director free from any liability or any claim under the Plan,
unless otherwise expressly provided in the Plan or in any Award Agreement.

 

(f)            Governing
Law.  The validity, construction and
effect of the Plan and any rules and regulations relating to the Plan shall be
determined in accordance with the laws of the State of Delaware.

 

(g)           Severability.  If any provision of the Plan or any Award is
or becomes or is deemed to be invalid, illegal or unenforceable in any
jurisdiction or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially
altering the purpose or intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction or Award, and the remainder of the Plan or
any such Award shall remain in full force and effect.

 

(h)           No
Trust or Fund Created.  Neither the
Plan nor any Award shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company or any
Affiliate and a Participant or any other Person.  To the extent that any Person acquires a
right to receive payments from the Company or any Affiliate pursuant to an
Award, such right shall be no greater than the right of any unsecured general
creditor of the Company or any Affiliate.

 

(i)            No
Fractional Shares.  No fractional
Shares shall be issued or delivered pursuant to the Plan or any Award, and the
Committee shall determine whether cash shall be paid in lieu of any fractional
Share or whether such fractional Share or any rights thereto shall be canceled,
terminated or otherwise eliminated.

 

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(j)            Headings.  Headings are given to the Sections and
subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way
material or relevant to the construction or interpretation of the Plan or any
provision thereof.

 

(k)           Section
16 Compliance.  The Plan is intended
to comply in all respects with Rule 16b-3 or any successor provision, as in
effect from time to time, and in all events the Plan shall be construed in
accordance with the requirements of Rule 16b-3. 
If any Plan provision does not comply with Rule 16b-3 as hereafter
amended or interpreted, the provision shall be deemed inoperative.  The Board, in its absolute discretion, may
bifurcate the Plan so as to restrict, limit or condition the use of any
provision of the Plan with respect to persons who are officers or directors
subject to Section 16 of the Securities and Exchange Act of 1934, as amended,
without so restricting, limiting or conditioning the Plan with respect to other
Participants.

 

Section 10.             Effective Date of
the Plan.  The Plan shall be
effective as of the date (the “Effective Date”) immediately prior to the date
on which the Company’s registration statement relating to its initial public
offering of Common Stock is declared effective by the Securities and Exchange
Commission, subject to approval by the Company’s stockholders in accordance
with applicable law.

 

Section 11.             Term of the Plan.  Awards shall be granted under the Plan only
during a 10-year period beginning on the Effective Date of the Plan.  However, unless otherwise expressly provided
in the Plan or in an applicable Award Agreement, any Award theretofore granted
may extend beyond the end of such 10-year period, and the authority of the
Committee provided for hereunder with respect to the Plan and any Awards, and
the authority of the Board to amend the Plan, shall extend beyond the end of
such period.

 

13Exhibit 10.4

 

RIGHTNOW
TECHNOLOGIES, INC.

2004 EMPLOYEE STOCK
PURCHASE PLAN

 

ARTICLE I

INTRODUCTION

 

Section 1.01           Purpose.  The purpose of the Plan is to provide
employees of the Company and certain related corporations with an opportunity
to share in the ownership of the Company by providing them with a convenient
means for regular and systematic purchases of Common Stock and, thus, to
develop a stronger incentive to work for the continued success of the Company.

 

Section 1.02           Rules of
Interpretation.  It is intended that
the Plan be an “employee stock purchase plan” as defined in Section 423(b) of
the Code and Treasury Regulations promulgated thereunder.  Accordingly, the Plan shall be interpreted
and administered in a manner consistent therewith if so approved.  Subject to Article XIII, all Participants in
the Plan will have the same rights and privileges consistent with the
provisions of the Plan.

 

Section 1.03           Definitions.  For purposes of the Plan, the following
terms will have the meanings set forth below:

 

“Acceleration Date” means the later of the date of stockholder approval
or approval by the Company’s Board of Directors of (i) any consolidation or
merger of the Company in which the Company is not the continuing or surviving
corporation or pursuant to which shares of Common Stock would be converted into
cash, securities or other property, other than a merger of the Company in which
stockholders of the Company immediately prior to the merger have substantially
the same proportionate ownership of stock in the surviving corporation
immediately after the merger; (ii) any sale, exchange or other transfer (in one
transaction or a series of related transactions) of all or substantially all of
the assets of the Company; or (iii) any plan of liquidation or dissolution of
the Company.

 

“Affiliate” means any subsidiary corporation of the Company, as defined
in Section 424(f) of the Code, whether now or hereafter acquired or
established.

 

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

 

“Committee” means the committee described in Section 10.01 of the Plan.

 

“Common Stock” means the Company’s Common Stock, $.001 par value per
share, as such stock may be adjusted for changes in the stock or the Company as
contemplated by Article XI of the Plan.

 

“Company” means RightNow Technologies, Inc. and its successors by
merger or consolidation as contemplated by Section 11.02 of the Plan.

 

1

 

“Current Compensation” means all regular wage, salary and commission
payments paid by the Company to a Participant in accordance with the terms of
his or her employment, but excluding annual bonus payments and all other forms
of special compensation.

 

“Effective Date” means the date on which the Company’s registration
statement relating to its initial public offering of Common Stock is declared
effective by the Securities and Exchange Commission.

 

“Fair Market Value” as of a given date means the fair market value of
the Common Stock determined by such methods or procedures as shall be
established from time to time by the Committee, but shall not be less than (i)
the closing price of the Common Stock as reported for composite transactions if
the Common Stock is then traded on a national securities exchange or (ii) the
last sale price if the Common Stock is then quoted on the NASDAQ National
Market System; provided, however, that the Fair Market Value on
the Effective Date shall be the initial public offering price set forth on the
cover of the final prospectus used in connection with the Company’s initial
public offering of Common Stock.  If on
a given date the Common Stock is not traded on an established securities
market, the Committee shall make a good faith attempt to satisfy the requirements
of this Section 1.03 and in connection therewith shall take such action as it
deems necessary or advisable.

 

“Participant” means a Regular Employee who is eligible to participate
in the Plan under Section 2.01 or any other eligible employee designated by the
Committee pursuant to Section 2.01 and who has elected to participate in the
Plan or who has been automatically enrolled in the Plan pursuant to Section
2.02.

 

“Participating Affiliate” means an Affiliate that has been designated
by the Committee in advance of the Purchase Period in question as a corporation
whose eligible Regular Employees may participate in the Plan.

 

“Plan” means the RightNow Technologies, Inc. 2004 Employee Stock
Purchase Plan, as it may be amended, the provisions of which are set forth
herein.

 

“Purchase Period” means any of the approximate six-month periods
beginning on the first business day in January and July, as appropriate, and
ending on the last business day in June and December, respectively; provided,
however, that the initial Purchase Period will commence on the Effective
Date and will terminate on the last business day in December 2004, and that the
then current Purchase Period will end upon the occurrence of an Acceleration
Date.

 

“Regular Employee” means an employee of the Company or a Participating
Affiliate as of the first day of a Purchase Period, including an officer or
director who is also an employee, but excluding an employee whose customary
employment is less than 20 hours per week or less than five months per calendar
year.

 

2

 

“Stock Purchase Account” means the account maintained on the books and
records of the Company recording the amount received from each Participant
through payroll deductions made under the Plan.

 

ARTICLE II

ELIGIBILITY AND
PARTICIPATION

 

Section 2.01           Eligible Employees.  All Regular Employees shall be eligible to
participate in the Plan beginning on the first day of the first Purchase Period
to commence after such person becomes a Regular Employee.  Subject to the provisions of Article VI of
the Plan, each such employee will continue to be eligible to participate in the
Plan so long as he or she remains a Regular Employee.

 

Section 2.02           Election to
Participate.  All eligible Regular
Employees as of the first business day of the initial Purchase Period shall be
automatically enrolled as Participants in the Plan for the initial Purchase
Period.  Thereafter, an eligible Regular
Employee may elect to participate in the Plan for a given Purchase Period by
filing with the Company, in advance of that Purchase Period and in accordance
with such terms and conditions as the Committee in its sole discretion may
impose, a form provided by the Company for such purpose (which authorizes
regular payroll deductions from Current Compensation beginning with the first
payday in that Purchase Period and continuing until the employee withdraws from
the Plan or ceases to be eligible to participate in the Plan).

 

Section 2.03           Limits on Stock
Purchase.  No employee shall be
granted any right to purchase Common Stock hereunder if such employee,
immediately after such a right to purchase is granted, would own, directly or
indirectly, within the meaning of Section 423(b)(3) and Section 424(d) of the
Code, Common Stock possessing 5% or more of the total combined voting power or
value of all the classes of the capital stock of the Company or of all
Affiliates.

 

Section 2.04           Voluntary
Participation.  Participation in the
Plan on the part of a Participant is voluntary and such participation is not a
condition of employment nor does participation in the Plan entitle a
Participant to be retained as an employee.

 

ARTICLE III

PAYROLL DEDUCTIONS
AND STOCK PURCHASE ACCOUNT

 

Section 3.01           Deduction from Pay.  Except for the initial Purchase Period, the
form described in Section 2.02 of the Plan will permit a Participant to elect
payroll deductions of any multiple of 1% established by the Committee for a
particular Purchase Period, but not less than 1% or more than  15% of such
Participant’s Current Compensation for each pay period during such Purchase
Period, subject to such other

 

3

 

limitations as the Committee in its sole discretion may impose.  A Participant may cease making payroll
deductions at any time, subject to such limitations as the Committee in its
sole discretion may impose.  In the
event that during a Purchase Period the entire credit balance in a
Participant’s Stock Purchase Account exceeds the product of (a) 85% (or such
other percentage above 85% established by the Committee prior to the first
business day of that Purchase Period) of the Fair Market Value of the Common
Stock on the first business day of that Purchase Period and (b) 5,000, then
payroll deductions for such Participant automatically shall cease, and payroll
deductions shall resume on the first pay period of the next Purchase Period.

 

Section 3.02           Credit to Account.  Payroll deductions will be credited to the
Participant’s Stock Purchase Account on each payday.

 

Section 3.03           Interest.  No interest will be paid on payroll
deductions or on any other amount credited to, or on deposit in, a
Participant’s Stock Purchase Account.

 

Section 3.04           Nature of Account.  The Stock Purchase Account is established
solely for accounting purposes, and all amounts credited to the Stock Purchase
Account will remain part of the general assets of the Company or the
Participating Affiliate (as the case may be).

 

Section 3.05           No Additional
Contributions.  Except during the
initial Purchase Period, a Participant may not make any payment into the Stock
Purchase Account other than the payroll deductions made pursuant to the
Plan.  During the initial Purchase
Period, a Participant may contribute up to ten percent (10%) of the
Participant’s Current Compensation during the initial Purchase Period to the
Participant’s Stock Purchase Account by delivery of a personal check or money
order to the Company.  Contributions to
a Participant’s Stock Purchase Account during the initial Purchase Period must
be made on or prior to December 1, 2004. 
Any Participant’s contribution shall be credited to the Participant’s
Stock Purchase Account and such funds shall be held by the Company on the terms
and conditions of this Article III.

 

ARTICLE IV

RIGHT TO PURCHASE
SHARES

 

Section 4.01           Number of Shares.  Each Participant will have the right to
purchase on the last business day of the Purchase Period all, but not less than
all, of the number of whole shares of Common Stock that can be purchased at the
price specified in Section 4.02 of the Plan with the entire credit balance in
the Participant’s Stock Purchase Account, subject to the limitations that (a)
no more than 5,000 shares of Common Stock may be purchased under the Plan by
any one Participant for a given Purchase Period, and (b) in accordance with Section
423(b)(8) of the Code, no more than $25,000 in Fair Market Value (determined at
the beginning of each Purchase Period) of Common Stock and other stock may be
purchased under the Plan and all other employee stock purchase plans (if any)
of the Company and the Affiliates by any one Participant for any calendar
year.  If the purchases for all
Participants for any Purchase Period would otherwise cause the aggregate number
of shares of Common Stock to be sold under the Plan to exceed the

 

4

 

number specified in Section 10.04 of the Plan, each Participant shall
be allocated a pro rata portion of the Common Stock to be sold for such
Purchase Period.

 

Section 4.02           Purchase Price.  The purchase price (“Purchase Price”) for
the initial Purchase Period shall be the lesser of (a) the Fair Market Value of
the Common Stock on the Effective Date or (b) 85% of the Fair Market Value of
the Common Stock on the last business day of the initial Purchase Period,
rounded up to the next higher full cent. 
The Purchase Price for any subsequent Purchase Period shall be that
price as established by the Committee prior to the first business day of that
Purchase Period, which price may, in the discretion of the Committee, be a
price which is not fixed or determinable as of the first business day of that
Purchase Period; provided, however, that in no event shall the
purchase price for any Purchase Period after the initial Purchase Period be
less than the lesser of (x) 85% of the Fair Market Value of the Common Stock on
the first business day of that Purchase Period or (y) 85% of the Fair Market
Value of the Common Stock on the last business day of that Purchase Period, in
each case rounded up to the next higher full cent.

 

ARTICLE V

EXERCISE OF RIGHT

 

Section 5.01           Purchase of Stock.  On the last business day of a Purchase
Period, the entire credit balance in each Participant’s Stock Purchase Account
will be used to purchase the number of whole shares (for this purpose any
fractional share as calculated under this Section 5.01 will be rounded down to
the next lower whole share) of Common Stock purchasable with such amount
(subject to the limitations of Section 4.01 of the Plan), unless the
Participant has filed with the Company, in advance of that date and subject to
such terms and conditions as the Committee in its sole discretion may impose, a
form provided by the Company which requests the distribution of the entire
credit balance in cash.

 

Section 5.02           Cash Distributions.  Any amount remaining in a Participant’s
Stock Purchase Account after the last business day of a Purchase Period will be
paid to the Participant in cash within thirty (30) days after the end of that
Purchase Period; provided, however, that if the amount remaining
in the Participant’s Stock Purchase Account at the end of a Purchase Period
results from the fact that such amount was not sufficient to purchase a whole
share of Common Stock, such amount will be transferred to the Participant’s
Stock Purchase Account for the immediately succeeding Purchase Period.

 

Section 5.03           Notice of
Acceleration Date.  The Company
shall use its best efforts to notify each Participant in writing at least 10
days prior to any Acceleration Date that the then current Purchase Period will
end on such Acceleration Date.

 

Section 5.04           Taxes.   Participants are responsible for the
payment of all income taxes, employment, social insurance, welfare and other
taxes under applicable law relating to any amounts deemed under the laws of the
country of their residency or of the organization of the Participating
Affiliate which employs them to constitute income

 

5

 

arising out of the Plan, the purchase and sale of shares of Common
Stock pursuant to this Plan and the distribution of Common Stock or cash to the
Participant in accordance with this Plan. 
Each Participant hereby authorizes the relevant Participating Affiliate
to make appropriate withholding deductions from each Participant’s
compensation, which shall be in addition to any payroll deductions made
pursuant to Section 3.01 above, and to pay such amounts to the appropriate tax
authorities in the relevant country or countries in order to satisfy any of the
above tax liabilities of the Participant under applicable law.

 

ARTICLE VI

WITHDRAWAL FROM PLAN;
SALE OF STOCK

 

Section 6.01           Voluntary Withdrawal.  A Participant may, in accordance with such
terms and conditions as the Committee in its sole discretion may impose,
withdraw from the Plan and cease making payroll deductions by filing with the
Company a form provided for this purpose. 
In such event, the entire credit balance in the Participant’s Stock
Purchase Account will be paid to the Participant in cash within 30 days.  A Participant who withdraws from the Plan
will not be eligible to reenter the Plan until the beginning of the next
Purchase Period following the date of such withdrawal.

 

Section 6.02           Death.  Subject to such terms and conditions as the
Committee in its sole discretion may impose, upon the death of a Participant,
no further amounts shall be credited to the Participant’s Stock Purchase
Account.  Thereafter, on the last
business day of the Purchase Period during which such Participant’s death
occurred and in accordance with Section 5.01 of the Plan, the entire credit
balance in such Participant’s Stock Purchase Account will be used to purchase
Common Stock, unless such Participant’s estate has filed with the Company, in
advance of that day and subject to such terms and conditions as the Committee
in its sole discretion may impose, a form provided by the Company which elects
to have the entire credit balance in such Participant’s Stock Account
distributed in cash within 30 days after the end of that Purchase Period or at
such earlier time as the Committee in its sole discretion may decide.  Each Participant, however, may designate one
or more beneficiaries who, upon the Participant’s death, are to receive the
Common Stock or the amount that otherwise would have been distributed or paid
to the Participant’s estate and may change or revoke any such designation from
time to time.  No such designation,
change or revocation will be effective unless made by the Participant in
writing and filed with the Company during the Participant’s lifetime.  Unless the Participant has otherwise
specified the beneficiary designation, the beneficiary or beneficiaries so
designated will become fixed as of the date of the death of the Participant so
that, if a beneficiary survives the Participant but dies before the receipt of
the payment due such beneficiary, the payment will be made to such
beneficiary’s estate.

 

Section 6.03           Termination of
Employment.  Subject to such terms
and conditions as the Committee in its sole discretion may impose, upon the
termination of a Participant’s employment with the Company or a Participating
Affiliate for any reason other than death, no further amounts shall be credited
to the Participant’s Stock Purchase Account. Thereafter, on the last business
day of the Purchase Period during which such Participant’s termination occurred
and in

 

6

 

accordance with Section 5.01 of the Plan, the entire credit balance in
such Participant’s Stock Purchase Account will be used to purchase Common
Stock, unless such Participant has filed with the Company, in advance of that
day and subject to such terms and conditions as the Committee in its sole
discretion may impose, a form provided by the Company which elects to receive
the entire credit balance in such Participant’s Stock Purchase Account in cash
within 30 days after the end of that Purchase Period, provided that such
Participant shall have no right to purchase Common Stock in the event that the
last day of such a Purchase Period occurs more than three months following the
termination of such Participant’s employment with the Company.  For purposes of this Section 6.03, a
transfer of employment to any Affiliate, or a leave of absence that has been
approved by the Committee, will not be deemed a termination of employment as a
Regular Employee.

 

Section 6.04           No Employment Rights.  Nothing in this Plan shall confer on any
Participant any express or implied right to continued employment by the Company
or any of its Affiliates, whether for the duration of the Plan or
otherwise.  Nothing in this Plan shall
confer on any person any legal or equitable right against the Company or any of
its Affiliates, directly or indirectly, or give rise to any cause of action at
law or in equity against the Company or any of its Affiliates.  Neither the Common Stock purchased hereunder
nor any other benefits conferred hereby, including the right to purchase Common
Stock at a discount, shall form any part of the wages or salary of any eligible
employees or Participants for purposes of severance pay or termination
indemnities, irrespective of the reason for termination of employment.  Under no circumstances shall any person
ceasing to be an employee of the Company or any of its Affiliates be entitled
to any compensation for any loss of any right or benefit under this Plan which
such employee might otherwise have enjoyed but for termination of employment,
whether such compensation is claimed by way of damages for wrongful or unfair
dismissal, breach of contract or otherwise.

 

ARTICLE VII

NONTRANSFERABILITY

 

Section 7.01           Nontransferable
Right to Purchase.  The right to
purchase Common Stock hereunder may not be assigned, transferred, pledged or
hypothecated (whether by operation of law or otherwise), except as provided in
Section 6.02 of the Plan, and will not be subject to execution, attachment or
similar process.  Any attempted
assignment, transfer, pledge, hypothecation or other disposition or levy of
attachment or similar process upon the right to purchase will be null and void
and without effect.

 

Section 7.02           Nontransferable
Account.  Except as provided in
Section 6.02 of the Plan, the amounts credited to a Stock Purchase Account may
not be assigned, transferred, pledged or hypothecated in any way, and any
attempted assignment, transfer,

 

7

 

pledge, hypothecation or other disposition of such amounts will be null
and void and without effect.

 

ARTICLE VIII

STOCK CERTIFICATES

 

Section 8.01           Issuance of
Purchased Shares.  Promptly after
the last day of each Purchase Period and subject to such terms and conditions
as the Committee in its sole discretion may impose, the Company will cause the
Common Stock then purchased pursuant to Section 5.01 of the Plan to be issued
for the benefit of the Participant and held in the Plan pursuant to Section
8.03 of the Plan.

 

Section 8.02           Completion of
Issuance.  A Participant shall have
no interest in the Common Stock purchased pursuant to Section 5.01 of the Plan
until such Common Stock is issued for the benefit of the Participant pursuant
to Section 8.03 of the Plan.

 

Section 8.03           Form of Ownership.  The Common Stock issued under Section 8.01
of the Plan will be held in the Plan (including being held for each
Participant’s benefit by a broker designated by the Company) in the name of the
Participant or jointly in the name of the Participant and another person, as
the Participant may direct on a form provided by the Company, until such time
as certificates for such shares of Common Stock are delivered to or for the
benefit of the Participant pursuant to Section 8.04 of the Plan.

 

Section 8.04           Delivery.  Subject to such terms and conditions as the
Committee in its sole discretion may impose, by filing with the Company a form
provided by the Company for such purpose, the Participant may elect to have the
Company cause to be delivered to or for the benefit of the Participant a
certificate for the number of whole shares representing the Common Stock
purchased pursuant to Section 5.01 of the Plan.  The election notice will be processed as soon as practicable
after receipt.  A certificate for whole
shares normally will be mailed to the Participant within five business days
after receipt of the election notice.

 

Section 8.05           Securities Laws.  The Company shall not be required to issue
or deliver any shares representing Common Stock prior to registration under the
Securities Act of 1933, as amended, or registration or qualification under any
state or foreign law if such registration is required.  The Company will use its best efforts to
accomplish such registration (if and to the extent required) not later than a
reasonable time following the beginning of the initial Purchase Period, and
delivery of shares may be deferred until such registration is accomplished.

 

8

 

ARTICLE IX

APPROVAL DATE,
AMENDMENT AND TERMINATION OF PLAN

 

Section 9.01           Approval Date.  The Plan was approved by the Board of
Directors on July 15, 2004, and shall be approved by the stockholders of the
Company prior to the Effective Date.

 

Section 9.02           Plan Commencement.  The initial Purchase Period under the Plan
will commence on the Effective Date. 
Thereafter, each succeeding Purchase Period will commence and terminate
as described under “Purchase Period” in Section 1.03 of the Plan.

 

Section 9.03           Powers of Board.   The Board of Directors may amend or
discontinue the Plan at any time.  No
amendment or discontinuation of the Plan, however, shall be made without
stockholder approval that (i) absent such stockholder approval would cause Rule
16b-3 under the Securities Exchange Act of 1934, as amended (the “Act”), to
become unavailable with respect to the Plan, (ii) requires stockholder approval
under any rules or regulations of the NASDAQ National Market System or any
securities exchange that are applicable to the Company, or (iii) permit the
issuance of the Common Stock before payment therefor in full.

 

Section 9.04           Automatic
Termination.  The Plan shall
terminate automatically when all of the shares of Common Stock provided for in
Section 10.04 of the Plan have been sold, provided that such termination
shall in no way affect the terms of the Plan pertaining to any Common Stock
then held under the Plan.

 

ARTICLE X

ADMINISTRATION

 

Section 10.01         The Committee.  The Plan shall be administered either by the
Board of Directors of the Company (the “Board”), by the Compensation Committee
or by any other committee of the Board established by the Board to administer
the Plan (the Board or such committee is referred to herein as the
“Committee”).

 

Section 10.02         Powers of Committee.  Subject to the provisions of the Plan, the
Committee shall have full authority to administer the Plan, including authority
to interpret and construe any provision of the Plan, to establish deadlines by
which the various administrative forms must be received in order to be
effective, and to adopt such other rules and regulations for administering the
Plan as it may deem appropriate.  The
Committee shall have full and complete authority to determine whether all or
any part of the Common Stock acquired pursuant to the Plan shall be subject to
restrictions on the transferability thereof or any other restrictions affecting
in any manner a Participant’s rights with respect thereto but any such
restrictions shall be contained in the form by which a Participant elects to
participate in the Plan pursuant to Section 2.02 of the Plan.  The Committee also shall have full and
complete authority to set the Purchase Price within the range set forth in this
Plan and to set the commencement of the Purchase

 

9

 

Periods after the initial Purchase Period.  Decisions of the Committee will be final and binding on all
parties who have an interest in the Plan.

 

Section 10.03         Power and Authority of
the Board of Directors. 
Notwithstanding anything to the contrary contained herein, the Board of
Directors may, at any time and from time to time, without any further action of
the Committee, exercise the powers and duties of the Committee under the Plan.

 

Section 10.04         Stock to be Sold.  The Common Stock to be issued and sold under
the Plan may be authorized but unissued shares or shares acquired in the open
market or otherwise.  Except as provided
in Section 11.01 of the Plan, the aggregate number of shares of Common Stock to
be sold under the Plan will not exceed 750,000 shares, plus an automatic annual
increase on the first day of each year beginning in 2005 and ending in 2014
equal to the lesser of (i) 500,000 shares of Common Stock or (ii) two percent
of the number of shares of Common Stock outstanding on the last day of the
immediately preceding year or (iii) such lesser number as determined by the
Board.

 

Section 10.05         Data Privacy.  Participation in the Plan shall be subject
to the effective consent of the Participant under applicable law to the
collection, use, compilation and disclosure by the Company and/or its
Affiliates of personal data and/or sensitive personal data about the
Participant as the Company and/or its Affiliates may require to implement,
administer and manage the Plan.

 

Section 10.06         Notices.  Notices to the Committee should be addressed
as follows:

 

RightNow
Technologies, Inc.

40 Enterprise
Boulevard

Bozeman,
MT  59718

Attention:  Secretary

 

ARTICLE XI

ADJUSTMENT FOR
CHANGES IN STOCK OR COMPANY

 

Section 11.01         Stock Dividend or
Reclassification.  If the
outstanding shares of Common Stock are increased, decreased, changed into or
exchanged for a different number or kind of securities of the Company, or
shares of a different par value or without par value, through reorganization,
recapitalization, reclassification, stock dividend, stock split, amendment to
the Company’s certificate of incorporation, reverse stock split or otherwise,
an appropriate adjustment shall be made in the maximum numbers and kind of
securities to be purchased under the Plan with a corresponding adjustment in
the purchase price to be paid therefor.

 

Section 11.02         Merger or
Consolidation.  If the Company is
merged into or consolidated with one or more corporations during the term of
the Plan, appropriate adjustments will be made to give effect thereto on an
equitable basis in terms of issuance of shares of the corporation surviving the
merger or of the consolidated corporation, as the case may be.

 

10

 

ARTICLE XII

APPLICABLE LAW

 

Rights to
purchase Common Stock granted under the Plan shall be construed and shall take
effect in accordance with the laws of the State of Delaware.

 

ARTICLE XIII

INTERNATIONAL
PARTICIPANTS

 

The Committee
shall have the power and authority to allow Participants of those Participating
Affiliates, so designated by the Committee, who work or reside outside of the
United States on behalf of the Company an opportunity to acquire Common Stock
pursuant to the Plan in accordance with such special terms and conditions as
the Committee may designate with respect to each such Participating
Affiliate.  Without limiting the
authority of the Committee, the special terms and conditions which may be
established with respect to each such Participating Affiliate, and which need
not be the same for all Participating Affiliates, include but are not limited
to the right to participate, procedures for elections to participate, the
payment of any interest with respect to amounts received from or credited to
accounts held for the benefit of Participants, the purchase price of any shares
to be acquired, the length of any purchase period, the maximum amount of
contributions, credits or Common Stock which may be acquired by any
Participant, and a Participant’s rights in the event of his or her death,
disability, withdrawal from the Plan, termination of employment on behalf of
the Company and all matters related thereto. 
Any such special terms and conditions shall be set forth in one or more
Appendices to the Plan, which shall be deemed incorporated into and form part
of the Plan.  Notwithstanding the
foregoing,  this Article XIII is not
subject to Section 423 of the Code or any other provision of the Plan that
refers to or is based upon such Section, and for tax purposes, this Article
XIII shall be treated as separate and apart from the balance of the Plan.

 

11

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