Document:

Senior Executive Agreement - Peter W. Shoemaker

  Exhibit 10.3
 SENIOR EXECUTIVE AGREEMENT
                         THIS AGREEMENT is made effective as of October 1, 2002, between GLOBAL IMAGING
SYSTEMS, INC., a Delaware corporation (the “Company”) and PETER W. SHOEMAKER (“Executive”).
 Recitals
                         A.   The
Company and Executive desire to enter into an agreement pursuant to which Executive will be employed as the Senior Vice President and Chief Operating Officer of the Company on the terms and conditions set forth in this Agreement.
                         B.   Certain definitions are set forth in
Section 4 of this Agreement.
 Agreement
                         The parties hereto agree as follows:
                         1.   Employment. The Company hereby engages Executive to serve as the Senior Vice President and Chief Operating Officer of the Company, and Executive agrees to serve the Company, during the
Service Term (as defined in Section 1(d) hereof) in the capacities, and subject to the terms and conditions, set forth in this Agreement.
                              (a)   Services. During the Service Term, Executive, as Senior Vice President and Chief Operating Officer of the Company, shall have all the duties and responsibilities customarily rendered by
Chief Operating Officers of companies of similar size and nature and as may be reasonably assigned from time to time by the Board and the Company’s Chief Executive Officer (the “CEO”).
Executive will report directly to the CEO. Executive will devote his best efforts and substantially all of his business time and attention (except for vacation periods and periods of illness or other incapacity ) to the business of the Company and
its Affiliates. Notwithstanding the foregoing, and provided that such activities do not interfere with the fulfillment of Executive’s obligations hereunder, Executive may (A) serve as an officer, director or trustee of any charitable or
non-profit entity; (B) own a passive investment in any private company and own up to 5% of the outstanding voting securities of any public company; or (C) serve as a director of up to two other companies so long as such companies do not compete with
the Company. Unless the Company and Executive agree to the contrary, Executive’s place of employment shall be at the Company’s principal executive offices in Tampa, Florida; provided, however,
that Executive will travel to such other locations of the Company and its Affiliates as may be reasonably necessary in order to discharge his duties hereunder.
                                      
(b)   Salary, Bonus and Benefits.
 

	 	          (i)   Salary and Bonus. During the Service Term, the Company will pay
Executive a base salary (the “Annual Base Salary”) as the Board may designate from 

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	 	time to time, at the rate of not less than $325,000 per annum; provided, however, that the Annual Base Salary shall be subject to review annually (at the end of each of fiscal year of the Company) by the Board for
upward increases thereon. The Executive will be eligible to receive an annual bonus in an amount of up to 50-100% of Executive’s Annual Base Salary for such fiscal year, as determined by the Board based upon the Company’s achievement of
budgetary and other objectives set by the Board for bonuses for its senior executives (including the CEO and the Company’s CFO). The calculation of the annual bonus shall be made in good faith by the Board and consistent with past practice in
consultation with the Executive, which bonus criteria calculation shall be reasonable in light of the Company’s past year’s performance and shall be communicated to Executive by the Board prior to the start of the Company’s fiscal
year. The bonus criteria calculation for the fiscal year ending March 31, 2003 has been provided to Executive (provided that such bonus for the fiscal year ending March 31, 2003 shall be prorated for the number of days in such fiscal year actually
served by Executive). Notwithstanding the foregoing, Executive shall be guaranteed to receive a bonus equal to at least 50% of Executive’s Annual Base Salary paid for the fiscal year ending March 31, 2003 (pro rated). For the fiscal year ending
March 31, 2004 and thereafter, the Board shall also reevaluate such bonus criteria calculation in light of the current economic conditions in the Company’s industry. The annual bonus, if any, shall be due and payable to Executive prior to June
30 of the following fiscal year.

	 	          (ii)   Benefits. During the Service Term,
Executive will be entitled to such other benefits approved by the Board including those made available to the Company’s other senior executives, including participation in the Company’s healthcare plan. Executive shall be reimbursed for
customary travel, civic and luncheon club dues and other expenses, subject to standard and reasonable documentation requirements. In addition, Executive will receive a stipend of $900 per month for lease of an automobile and other related expenses
during the Service Term. Executive shall also be eligible to receive four weeks paid vacation per annum. Any unused vacation time during each fiscal year shall be “rolled-over” to the following fiscal year to the extent permitted by the
Company’s policies for other senior executives of the Company.

	 	          (iii)   Stock Options. As of the effective date hereof, Executive
shall receive a stock option grant for the purchase of 50,000 shares of the common stock of the Company at an exercise price equal to the closing price of the Company’s common stock (the “Common
Stock”) on the NASDAQ National Market System as of the date hereof. In addition, Executive shall receive additional grants of stock options for the purchase of 50,000 shares of the Common Stock on April 1st of each year,
to the extent he remains an employee of the Company as of such April 1st dates. All options shall (i) be exercisable at the fair market value of the Common Stock on the date of grant; (ii) vest annually over a five-year period (subject to
accelerated vesting upon certain events of termination as provided for in Section 1(c)(ii) hereof, a change of control or permanent disability to the extent permitted by the Company’s stock option
plan); and (iii) expire not later than the tenth anniversary of the date of grant. The terms and conditions of the stock options shall

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	 	otherwise be those set forth under the Company’s stock option plan and shall be consistent with the terms contained in stock option agreements provided to other key executives of the Company.

	 	          (iv)   Restricted Stock Grant. The Company shall provide Executive
with a restricted stock grant (the “Restricted Stock Grant”) of 40,000 shares of the Company’s Common Stock pursuant to a customary restricted stock agreement. The Restricted Stock Grant
will vest over five years from October 1, 2002 with 20% vesting on the third anniversary of the date hereof, an additional 30% vesting on the fourth anniversary of the date hereof and the balance (50%) vesting on the fifth anniversary of the date
hereof.

                              (c)   Termination. 

	 	          (i)   Events of Termination. Executive’s employment with the
Company shall cease upon:

                                       
   (A)   Executive’s death.
                                       
   (B)   Executive’s voluntary retirement.

	 	             (C)   Executive’s permanent disability, which means his incapacity due to physical or mental illness such
that he is unable to perform the essential functions of his previously assigned duties for a period of six months in any twelve month period and such permanent incapacity has been determined to exist by either (x) the Company’s disability
insurance carrier or (y) by the Board in good faith based on competent medical advice in the event that the Company does not maintain disability insurance on the Executive.

	 	             (D)   Termination by the Company by the delivery to Executive of a written notice from the Board or the CEO that Executive
has been terminated (“Notice of Termination”) with or without Cause. “Cause” shall mean:

	 	              (1)   Executive’s (aa) conviction of a felony; (bb) Executive’s commission of any other
material act or omission involving dishonesty or fraud with respect to the Company or any of its Affiliates or any of the customers, vendors or suppliers of the Company or its Subsidiaries; (cc) Executive’s misappropriation of material funds or
assets of the Company for personal use; or (dd) Executive’s engagement in unlawful harassment or other discrimination with respect to the employees of the Company or its Subsidiaries;

	 	              (2)   Executive’s continued substantial and repeated neglect of his duties, after written notice
thereof from the Board, and such 

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	 	neglect has not been cured within 30 days after Executive receives notice thereof from the Board;

	 	              (3)   Executive’s gross negligence or willful misconduct in the performance of his duties
hereunder that results, or is reasonably expected to result, in material damage to the Company; or

	 	              (4)   Executive’s engaging in conduct constituting a breach of Sections
2 or 3 hereof that is not cured in full within 15 days after notice of default thereof from the Company.

	 		In order for the termination to be effective: Executive must be notified in writing (which writing shall specify the cause in reasonable detail) of any termination of his employment for Cause. Executive will then have the
right, within ten days of receipt of such notice, to file a written request for review by the Company. In such case, Executive will be given the opportunity to be heard, personally or by counsel, by the Board and a majority of the Directors must
thereafter confirm that such termination is for Cause. If the Directors do not provide such confirmation, the termination shall be treated as other than for Cause. Notwithstanding anything to the contrary contained in this paragraph, Executive shall
have the right after termination has occurred to appeal any determination by the Board that such termination was for “Cause” to arbitration in accordance with the provisions of Section 3(g)
hereof. 

	 	            The delivery by the Company of notice to Executive that it does not intend to renew this Agreement as provided in Section
1(d) shall constitute a termination by the Company without Cause unless such notice fulfills the requirements of Section 1(c)(i)(D)(1), (2), (3) or (4) above.

	 	            (E)   Executive’s voluntary resignation by the delivery to the Company and the Board of at least 45 days written notice
from Executive that Executive has resigned with or without Good Reason. “Good Reason” shall mean Executive’s resignation from employment with the Company within 45 days after the
occurrence of any one of the following:

	 	               (1)   the failure of the Company to pay an amount owing to Executive hereunder after Executive has provided
the Company and the Board with written notice of such failure and such payment has not thereafter been made within 15 days of the delivery of such written notice; 

	 	               (2)   any material reduction or diminution in the Executive’s title, duties or responsibilities
without his consent after Executive has provided the Company with written notice within 30 days thereafter of such reduction and such reduction has not thereafter been rescinded within 15 days of the delivery of such written notice;

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	 	               (3)   the Executive’s resignation within one year after the Effective Date of a Change of Control (as
defined in Section 6 hereof); provided, however, that in the event of a Change of Control as a result of the departure of the Company’s CEO as specified in Section
6(e) hereof, such resignation must occur within 90 days after the end of the 90-day period referenced in Section 6(e).

	 	               (4)   the relocation of Executive from the Tampa, Florida metropolitan area without his
consent.

	 	            The delivery by the Executive of notice to the Company that he does not intend to renew this Agreement as provided in Section
1(d) shall constitute a resignation by the Executive without Good Reason unless such notice fulfills the requirements of Section 1(c)(i)(E)(1), (2), (3) or (4) above.

                                    (ii)   Rights on Termination.

	 	             (A)   In the event that, prior to the third anniversary of the date hereof, termination
is by the Company without Cause (including by operation of the last paragraph of Section 1(c)(i)(D) above) or by Executive with Good Reason, the Company will continue to pay Executive a monthly amount
equal to 150%1 of the monthly portion of the Annual Base Salary for a period equal to 12-months commencing on the date of termination on regular salary payment dates. In the event that, on or after the third anniversary of the date
hereof, termination is by the Company without Cause (including by operation of the last paragraph of Section 1(c)(i)(D) above) or by Executive with Good Reason, the Company will continue to pay
Executive a monthly amount equal to 150% of the monthly portion of the Annual Base Salary for a period equal to 24 months commencing on the date of termination on regular salary payment dates and the Restricted Stock Grant will become 100% vested.
The payments to Executive pursuant to the foregoing two sentences are referred to as the “Severance Payments.” In either event, (i) the Company will continue to provide Executive with
healthcare coverage during any period during which Executive is receiving Severance Payments following the date of termination; (ii) the Restricted Stock Grant shall become not less than 25% fully vested; (iii) all stock options granted to Executive
shall become 100% fully vested and shall remain exercisable for a period of one year after the date of termination; and (iv) the Company will pay to Executive in a lump sum any accrued but unused vacation time.

	 	             (B)   If the Company terminates Executive’s employment for Cause, if Executive retires before the third
anniversary of the date hereof or if Executive resigns without Good Reason (including by operation of the last paragraph of Section 1(c)(i)(E)), the Company’s obligations to pay any 

 ______________

	 		 	1	 	100% of Annual Base Salary plus 50% bonus.

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	 	compensation or benefits under this Agreement (other than accrued but unused vacation time which shall be paid to Executive in a lump sum payment) and all vesting under the Restricted Stock Grant and all stock options held by the
Executive will cease effective as of the date of termination. Executive’s right to receive any other health or other benefits, if any, will be determined under the provisions of applicable plans, programs or other
coverages.

	 	             (C)   If Executive retires after the third anniversary of the date hereof but prior to the fifth anniversary of the
date hereof, the Company’s obligations to pay any compensation or benefits under this Agreement (other than accrued but unused vacation time which shall be paid to Executive in a lump sum payment) will cease effective as of the date of
termination. Notwithstanding the foregoing, all stock options held by Executive shall become 100% vested and shall remain exercisable for a period of one year after the date of termination. Executive’s right to receive any other health or other
benefits, if any, will be determined under the provisions of applicable plans, programs or other coverages.

	 	             (D)   If Executive retires after the fifth anniversary of the date hereof, the Company’s obligations to pay any
compensation or benefits under this Agreement (other than accrued but unused vacation time which shall be paid to Executive in a lump sum payment) will cease effective as of the date of termination. Notwithstanding the foregoing, all stock options
held by Executive shall become 100% vested and shall remain exercisable for a period of one year after the date of termination and the Restricted Stock Grant will become 100% vested. Executive’s right to receive any other health or other
benefits, if any, will be determined under the provisions of applicable plans, programs or other coverages.

	 	             (E)   If Executive’s employment terminates because of Executive’s death or permanent disability, the Company
will pay Executive or his estate an amount, if any, equal to the sum of (i) his accrued but unused vacation time and (ii) his bonus for the current year prorated to reflect the number of days Executive has worked during the year in which he dies or
becomes permanently disabled (such amount to be paid after the end of such year when bonuses are normally paid to other senior executives of the Company). Notwithstanding the foregoing, all stock options held by Executive shall become 100% vested
and shall remain exercisable for a period of one year after the date of death or permanent disability. Executive’s or his estate’s right to receive any other health or other benefits, if any, will be determined under the provisions of
applicable plans, programs or other coverages.

                             Notwithstanding the foregoing, the Company’s
obligation to Executive for severance pay or other rights under either subparagraphs (A) or (B) above (the “Severance
Pay”) shall cease if Executive is in violation of the provisions of Sections 2 or 3 hereof. Until such time as Executive 
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    has received all of his Severance Payments, he will be entitled to continue to receive any health, life, accident and disability insurance benefits provided by the
Company to Executive under this Agreement. If Executive dies or is permanently disabled, then Executive or his estate shall be entitled to any disability income or life insurance payments from any insurance policies paid for by the Company or its
Affiliates as specified in such policies.
                                       
(d)   Term of Employment. Unless Executive’s employment under this Agreement is sooner terminated as a result of Executive’s termination in
accordance with the provisions of Section 1(c) above, Executive’s employment under this Agreement shall commence on October 1, 2002 and shall terminate on April 1, 2005 (the “Service Term”); provided, however, that Executive’s employment under this Agreement, and the Service Term, shall be automatically renewed for additional
one-year periods commencing on April 1, 2005 and, thereafter, on each successive anniversary of such date unless either the Company or the Executive notify the other party in writing within ninety (90) days prior to any such April 1st anniversary
that it or he desires not to renew Executive’s employment under this Agreement. All references herein to “Service Term” shall include any renewals thereof after April 1, 2005. 

                        2.   Confidential Information
and Goodwill; Inventions. Executive acknowledges and agrees that: 
                              (a)   As
a necessary function of Executive’s employment hereunder, Executive will have access to and utilize Confidential Information which constitutes a valuable and essential asset of the Company’s business. Executive acknowledges and agrees that
the Company’s Confidential Information includes trade secrets as defined under Section 688.002(4) of the Florida Statutes, including customer lists and proprietary business models, which are crucial to the operation of the Company’s and
its Subsidiaries’ business.
                              (b)   The Confidential Information, observations and data obtained by him during the course of his performance under this Agreement concerning the business and affairs of the Company are the property of
the Company, including information concerning the acquisition opportunities in or reasonably related to the Business of which Executive becomes aware during the Service Term. Therefore, Executive agrees that he will not disclose to any unauthorized
person or use for his own account any of the Confidential Information without the Board’s written consent. Executive agrees to deliver to the Company at the termination of his employment, or at any other time the Company may request, all
memoranda, notes, plans, records, reports and other documents (including copies thereof) relating to the Company, the Business or any other Confidential Information.
                              (c)   All
inventions, innovations, developments, improvements, methods, designs, analyses, drawings, software, reports and all similar or related information (whether or not patented or patentable) developed by Executive during the Service Term which
(i) directly or indirectly relate to the Company or its Affiliates or the Business, or (ii) result from any work performed by Executive while employed by the Company or its Affiliates shall belong to the Company and its Affiliates.
Executive shall promptly disclose all such inventions to the Board and perform all actions reasonably requested by the Board (whether during or after the Service Term) to establish and confirm such ownership (including, without limitation,
assignments, consents, powers of attorney and other instruments).
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                            3.   Noncompetition and Nonsolicitation.
                              (a)   Noncompetition. Executive acknowledges that in the course of his employment with the Company he will become familiar with the Company’s and its Affiliates’ trade secrets and
with other confidential information concerning the Company and that his services will be of special, unique and extraordinary value to the Company and its Affiliates. Executive further acknowledges that the business of the Company and its
Subsidiaries is nationwide. Therefore, Executive agrees that, during the Service Term and for the greater of (i) one (1) year after the termination of all Severance Payments received by the Executive or (ii) two (2) years after the date of
termination of Executive’s employment with the Company (collectively, the “Noncompete Period”), he shall not either directly or indirectly for himself or on behalf of or in conjunction
with any other person, partnership, corporation or entity:

	 	           (i)   own, maintain, engage in, render any services for, manage, have any financial interest in, or permit his name to be used in
connection with as a shareholder, bondholder, creditor, officer, director, partner, agent, contractor with, employee or representative of, or in any manner be associated with, or give financial, technical or other assistance to any business
competing in the United States with the business of the Company and/or its Subsidiaries or any business with which the Company or its Subsidiaries have firm plans to engage in at the time of the Executive’s termination of employment with the
Company;

	 	          (ii)   become employed by or associated with, in any capacity or in any position similar to Executive’s position with the Company or
in any capacity or in any position in which Executive is required to compete with the Company or its Subsidiaries, any person, partnership, corporation or entity anywhere in the United States;

 provided, however, that nothing contained herein shall prohibit Executive from (i) owning up to five percent (5%) of the outstanding securities of a publicly-held company or (ii) engaging in a consulting business so long as such consulting
business is limited to providing advice to copier/office equipment dealers in markets not serviced by the Company or its Subsidiaries at the time of Executive’s termination.
                              (b)   Nonsolicitation. During the Noncompete Period, Executive shall not directly or indirectly through another entity (i) induce or attempt to induce any senior management employee of the
Company or any Subsidiary or, to the actual knowledge of the Executive, any other employee of the Company or any Subsidiary, to leave the employ of the Company or such Subsidiary, or in any way interfere with the relationship between the Company or
any Subsidiary and any employee thereof or (ii) induce or attempt to induce any customer, supplier, vendor, licensee or other business relation of the Company or any Subsidiary to cease doing business with the Company or such Subsidiary, or to
modify its business relationship with the Company in a manner materially adverse to the Company or any Subsidiary, or in any way materially disparage the Company or its Subsidiaries to any such customer, supplier, vendor, licensee or business
relation of the Company or any Subsidiary. 
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                               (c)   Enforcement. The Executive understands and agrees the terms and conditions of Executive’s employment hereunder are in consideration
for Executive’s covenants contained in Section 2 and 3 of this Agreement. If, at the time of enforcement of Section
2 or 3 of this Agreement, a court holds that the restrictions stated herein are unreasonable under circumstances then existing the parties hereto agree that the maximum duration,
scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum duration, scope and area
permitted by law. Because Executive’s services are unique and because Executive has access to confidential information, the parties hereto agree that money damages would be an inadequate remedy for any breach of this Agreement. Therefore, in
the event a breach or threatened breach of this Agreement, the Company or its successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or
injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security). In addition, the Company shall have the right to discontinue Severance Payments during any period in
which Executive is in violation of this Section 3 without prejudice to the Company’s rights to obtain injunctive relief, damages and/or any other relief.
                         The Executive acknowledges and agrees that the provisions of this Section 3 are reasonably necessary to protect the legitimate business interests of the Company.
 GENERAL PROVISIONS
                         4.   Definitions.
                               “Affiliate” of any Person means any other Person which directly or indirectly controls, is controlled by or is under common control with such Person.
                               “Board”
means the Company’s board of directors or the board of directors or similar management body of any successor of the Company.
                               “Business” means any business of the Company or its Subsidiaries now or hereafter engaged in, including without limitation the business of distributing, selling and servicing office equipment in the United States.
                               “Change of Control
Period” shall mean the period commencing on the Effective Date and ending on the first anniversary of the Effective Date.
                               “Competitive
Activity” means any business or activity of Executive or any third party that is the same as the Business or competitive with the Business.
                               “Confidential
Information” means all confidential information and trade secrets of the Company and its Affiliates including, without limitation, the following: the identity, written lists, or descriptions of any customers derived by
the Company and its Subsidiaries, referral sources or Organizations; financial statements, cost reports, or other financial information; contract proposals or 
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    bidding information; business plans; training and operations methods and manuals; personnel records; fee structures; and management systems, policies or procedures,
including related forms and manuals. “Confidential Information” shall not include any information or knowledge which: (a) is in the public domain other than by Executive’s breach of this Agreement; (b) is disclosed to
Executive lawfully by a third party who is not under any obligation of confidentiality; (c) is otherwise generally known by persons engaged in the Business; or (d) was known by Executive prior to his employment with the Company.
                               “Effective Date” shall mean the first date on which a Change of Control (as defined in Section 6) occurs. Anything in this Agreement to the contrary notwithstanding, if a Change of Control occurs and if the
Executive’s employment with the Company is terminated within twelve months prior to the date on which the Change of Control occurs, and if it is reasonably demonstrated by the Executive that such termination of employment (i) was at the request
of a third party who has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or anticipation of a Change of Control, then for all purposes of this Agreement the “Effective Date” shall mean the date immediately prior to the date of such termination of employment.
                               “Organization” means any organization that has contracted with the Company for the performance of services in connection with the Business.
                               “Person”
means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political
subdivision thereof.
                               “Subsidiary” means any corporation of which the Company owns securities having a majority of the ordinary voting power in electing the board of directors directly or through one or
more subsidiaries.
                        5.   Notices. Any notice provided for in this Agreement must be in writing and must be either personally delivered, mailed by first class United States mail (postage prepaid, return receipt
requested) or sent by reputable overnight courier service (charges prepaid) or by facsimile to the recipient at the address below indicated:
                         If to the Executive:

	 	Peter Shoemaker
 c/o Global Imaging Systems, Inc.
 3820 Northdale Boulevard, Suite 200A
 Tampa, Florida 33624
 Tel
No.:   (888) 628-7834
 Fax No.:   (813) 264-7877

 
                              and to:

	 	807A South Oregon Avenue
 Tampa, Florida 33606

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                          If to the Company:

	 	3820 Northdale Boulevard, Suite 200A
 Tampa, Florida 33624
 Attention:  Thomas S. Johnson
 Tel No.:   (888) 628-7834

Fax No.:   (813) 264-7877

 
                              with a copy to:

	 	Hogan & Hartson, LLP
 555 Thirteenth Street, N.W.
 Washington, D.C. 20004
 Attention:  Christopher J. Hagan
 Tel
No.:     (202) 637-5771
 Fax No.:     (202) 637-5910

 
 or such other address or to the attention of such other person as the
recipient party shall have specified by prior written notice to the sending party.
                        6.   Change
of Control. For the purpose of this Agreement, a “Change of Control” shall mean:
                              (a)   The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”), other than Golder, Thoma, Cressey, Rauner Fund IV, L.P. and its Affiliates, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either
(i) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then -outstanding voting securities of the
Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company approved by the Board and Executive, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the Company, or (iv) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c) of this Section 6(a); or
                              (b)   Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose
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    initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or
                              (c)   Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case,
unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately
prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all
of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding
Company Voting Securities, as the case may be, (ii) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 50% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such Business Combination, or the combined voting power of the then-outstanding
voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination or (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or
                              (d)   Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company; or
                                        (e)   Prior to the third anniversary of the date hereof, the failure to appoint the Executive as Chief Executive Officer of the Company within 90 days following the death, retirement,
permanent disability, resignation or termination of the Company’s CEO.
                        7.   Executive’s Representations and Warranties. Executive represents and warrants that he has full and authority to enter into this
Agreement and fully to perform his obligations hereunder, that he is not subject to any non-competition agreement, and that his past, present and anticipated future activities have not and will not infringe on the proprietary rights of others,
including, but not limited to, proprietary information rights or interfere with any agreements he has with any prior employee. Executive further represents and warrants that he is not obligated under any contract (including licenses, covenants or
commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, which would conflict with or result in a breach of this Agreement or which would in any manner interfere with the
performance of his duties for the Company.
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                           8.   General Provisions.
                              (a)   Expenses. Each party shall bear his or its own expenses in connection with the negotiation and execution of this Agreement and the
consummation of the transactions contemplated by this Agreement.
                              (b)   Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other
provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.
                              (c)   Complete Agreement. This Agreement, those documents expressly referred to herein and other documents of even date herewith embody the
complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

                              (d)   Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.
                              (e)   Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by
Executive, the Company and their respective successors and assigns; provided that the rights and obligations of Executive under this Agreement shall not be assignable.
                              (f)   Choice of Law. This Agreement will be governed by and construed in accordance with the internal laws of the State of Florida, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of Florida or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Florida.
                              (g)   Remedies and Arbitration. Each of the parties to this Agreement will be entitled to enforce its rights under this Agreement to recover
damages and costs (including reasonable attorney’s fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor. Except for the remedies of the Company provided in Section 3(c) hereof, the parties hereto agree to submit any disputes arising out of or relating to this Agreement to binding arbitration in Tampa, Florida administered by the American Arbitration Association under its
Commercial Arbitration Rules, before a panel of one arbitrator, and judgment on the award rendered by the arbitrator may be entered into any court having jurisdiction thereof. The prevailing party in any arbitration shall be entitled to recover its
reasonable attorneys’ fees and costs from the other party or parties.
                              (h)   Amendment and Waiver. The provisions of this Agreement may be amended and waived only with the prior written consent of the Company and
Executive.
 - 13 -

                                 (i)   Business Days. If any time period for giving notice or taking action hereunder expires on a day which is a Saturday, Sunday or holiday in the state in which the Company’s chief
executive office is located, the time period shall be automatically extended to the business day immediately following such Saturday, Sunday or holiday.
                              (j)   Termination. This Agreement (except for the provisions of Section 1) shall survive the termination of Executive’s employment with the
Company and shall remain in full force and effect after such termination.
 [THIS SPACE INTENTIONALLY LEFT BLANK]
 - 14 -

                            IN WITNESS
WHEREOF, the parties hereto have executed this Agreement on the date first written above.

		 	GLOBAL IMAGING SYSTEMS, INC.
	
	 	By: 	

				

	 	 	 	Thomas S. Johnson 
President

		 	 
	
	 	By: 	

				

	 	 	 	PETER W. SHOEMAKER

 - 15 -2002 Employee Stock Purchase Plan

  EXHIBIT 10.4
  
 PLUMTREE SOFTWARE, INC.
 2002 EMPLOYEE STOCK PURCHASE PLAN
           The following constitutes the provisions of the 2002 Employee Stock
Purchase Plan of Plumtree Software, Inc. 
 Purpose.  The purpose of the Plan is to provide Employees with an opportunity to purchase Common Stock through accumulated payroll
deductions.  It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code.  The provisions of the Plan, accordingly, shall be construed so as to extend and limit
Plan participation in a manner that is consistent with the requirements of that section of the Code. 
 Definitions. “Administrator” means the Board or any committee thereof designated by the Board in accordance with Section 14.
 “Board” means the Board of
Directors of the Company.
 “Change of Control” means the occurrence of any of the following events:
Any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company  representing fifty percent (50%) or more of the total voting power represented by the
Company’s then outstanding voting securities; or
 The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; or
 The consummation of a merger or consolidation of the Company, with
any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company, or such surviving entity or its parent outstanding immediately after such merger or
consolidation.
 A change in the composition of the Board, as a result of which fewer than a majority of the Directors are Incumbent Directors.  "Incumbent Directors" means Directors who either (A) are Directors as of the effective
date of the Plan (pursuant to Section 23), or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those Directors whose election or nomination was not in connection with any transaction
described in subsections (i), (ii) or (iii) or in connection with an actual or threatened proxy contest relating to the election of Directors of the Company.
 “Code” means the
Internal Revenue Code of 1986, as amended.  Any reference to a section of the Code herein shall be a reference to any successor or amended section of the Code.
 “Common Stock”
means the common stock of the Company.
 “Company” means Plumtree Software, Inc., a Delaware corporation. 
 “Compensation” means an Employee’s base straight time gross earnings and bonuses, but exclusive of payments for commissions, overtime, shift premium and other compensation.
 “Designated Subsidiary” means any Subsidiary that has been designated by the Administrator from time to time in its sole discretion as eligible to participate in the Plan.
 “Director” means a member of the Board.
 “Employee” means any individual who is a common law employee of an Employer and is customarily
employed for at least twenty (20) hours per week and more than five (5) months in any calendar year by the Employer.  For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick
leave or other leave of absence approved by the Employer.  Where the period of leave exceeds ninety (90) days and the individual’s 

  right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the 91st day of such leave.

 “Employer” means any one or all of the Company and its Designated Subsidiaries.
 “Enrollment Date” means the first
Trading Day of each Offering Period.
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, including the rules and regulations promulgated thereunder. 

“Exercise Date” means the first Trading Day on or after February 1 and August 1 of each year.  The first Exercise Date under the Plan shall be February 3, 2003.
 “Fair Market Value” means, as of any date, the value of Common Stock determined as follows:
 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 the Common Stock (or the closing bid, if no sales were reported) as quoted on such exchange or
system on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable, or;
 If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value shall be the mean of the closing bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable, or; In
the absence of an established market for the Common Stock, its Fair Market Value shall be determined in good faith by the Administrator, or; For purposes of the Enrollment Date of the first Offering Period under the Plan, the Fair Market Value shall
be the initial price to the public as set forth in the final prospectus deemed to be included within the registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Common Stock (the
“Registration Statement”).
 “Offering Periods” means the periods of approximately twenty-four (24) months during which an option granted pursuant to the Plan may be
exercised, commencing on the first Trading Day on or after February 1 and August 1 of each year and terminating on the first Trading Day on or after the February 1 and August 1 Offering Period commencement date approximately twenty-four months
later; provided, however, that the first Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement effective and
ending on the first Trading Day on or after the earlier of (i)  February 1, 2004 or (ii) twenty-seven (27) months from the beginning of the first Offering Period; and provided, further, that the second Offering Period under the Plan shall
commence on February 3, 2003.  The duration and timing of Offering Periods may be changed pursuant to Section 4 of this Plan.
 “Parent” means a “parent corporation,”
whether now or hereafter existing, as defined in Section 424(e) of the Code.
 “Plan” means this 2002 Employee Stock Purchase Plan.
 “Purchase Period” means the approximately six (6) month period commencing on one Exercise Date and ending with the next Exercise Date, except that the first Purchase Period of any Offering Period shall
commence on the Enrollment Date and end with the next Exercise Date.  
 “Purchase Price” means an amount equal to eighty-five percent (85%) of the Fair Market Value of a share of
Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20.
 “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.
 “Trading
Day” means a day on which the U.S. national stock exchanges and the Nasdaq System are open for trading.
 -2-
 
 

  Eligibility.
 First Offering Period.  Any individual who is an Employee immediately prior to the first
Offering Period under the Plan shall be automatically enrolled in the first Offering Period.
 Subsequent Offering Periods.  Any individual who is an Employee as of the Enrollment Date of
any future Offering Period shall be eligible to participate in such Offering Period, subject to the requirements of Section 5.
 Limitations.  Any provisions of the Plan to the contrary
notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code)
would own capital stock of the Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital
stock of the Company or of any Parent or Subsidiary of the Company, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or
Subsidiary of the Company accrues at a rate which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value of the stock at the time such option is granted) for each calendar year in which such option is
outstanding at any time.
 Offering Periods.  The Plan shall be implemented by consecutive, overlapping Offering Periods with a new Offering Period commencing on the first Trading Day on or after February 1 and August 1 of each year,
or on such other date as the Administrator shall determine, and continuing thereafter until terminated in accordance with Section 20; provided, however, that the first Offering Period under the Plan shall commence with the first Trading Day on or
after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement effective and ending on the first Trading Day on or after the earlier of (i) February 1, 2004 or (ii) twenty-seven (27) months from the
beginning of the first Offering Period; and provided, further, that the second Offering Period under the Plan shall commence on February 3, 2003. The Administrator shall have the power to change the duration of Offering Periods (including the
commencement dates thereof) with respect to future offerings without stockholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter.
 Participation.
 First Offering Period.  An Employee who has become a participant in the first Offering Period under the Plan pursuant to Section 3(a) shall be entitled to continue his or her participation in such Offering
Period only if he or she submits to the Company’s payroll office (or its designee) a properly completed subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose (i) no earlier than the
effective date of the filing of the Company’s Registration Statement on Form S-8 with respect to the shares of Common Stock issuable under the Plan (the “Effective Date”) and (ii) no later than five (5) business days from the
Effective Date (the “Enrollment Window”).  A participant’s failure to submit the subscription agreement during the Enrollment Window pursuant to this Section 5(a) shall result in the automatic termination of his or her
participation in the first Offering Period under the Plan.
 Subsequent Offering Periods.  An Employee who is eligible to participate in the Plan pursuant to Section 3(b) may become a
participant by (i) submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Enrollment Date, a properly completed subscription agreement authorizing payroll
deductions in the form provided by the Administrator for such purpose, or (ii) following an electronic or other enrollment procedure prescribed by the Administrator. Payroll
Deductions. At the time a participant enrolls in the Plan pursuant to Section 5, he or she shall elect to have payroll deductions made on each payday during the Offering Period in an amount
not exceeding 15% of the Compensation which he or she receives on each such payday; provided, that should a payday occur on an Exercise Date, a participant shall have the payroll deductions made on such payday applied to his or her account under the
new Offering Period or Purchase Period, as the case may be.
 Payroll deductions authorized by a participant shall commence on the first payday following the Enrollment Date and shall end on the last
payday in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10; provided, however, that for the first Offering Period under the Plan, payroll deductions shall commence
on the first payday on or following the end of the Enrollment Window.
 -3-
 
 

  All payroll deductions made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only.  A participant may not
make any additional payments into such account.
 A participant may discontinue his or her participation in the Plan as provided in Section 10, or may change the rate of his or her payroll deductions
during the Offering Period by (i) properly completing and submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Exercise Date, a new subscription agreement
authorizing the change in payroll deduction rate in the form provided by the Administrator for such purpose, or (ii) following an electronic or other procedure prescribed by the Administrator. If a participant has not followed such procedures to
change the rate of payroll deductions, the rate of his or her payroll deductions shall continue at the originally elected rate throughout the Offering Period and future Offering Periods (unless terminated as provided in Section 10). The
Administrator may, in its sole discretion, limit the nature and/or number of payroll deduction rate changes that may be made by participants during any Offering Period.  Any change in payroll deduction rate made pursuant to this Section 6(d)
shall be effective as of the first full payroll period following five (5) business days after the date on which the change is made by the participant (unless the Administrator, in its sole discretion, elects to process a given change in payroll
deduction rate more quickly).  
 Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(c), a participant’s payroll deductions
may be decreased to zero percent (0%) at any time during a Purchase Period.  Payroll deductions shall recommence at the rate originally elected by the participant effective as of the beginning of the first Purchase Period which is scheduled to
end in the following calendar year, unless terminated by the participant as provided in Section 10.
 At the time the option is exercised, in whole or in part, or at the time some or all of the
Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the
disposition of the Common Stock.  At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any
withholding required to make available to the Company any tax deductions or benefits attributable to the sale or early disposition of Common Stock by the Employee. 
 Grant of Option.  On the Enrollment Date of each Offering Period,
each Employee participating in such Offering Period shall be granted an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such
participant’s payroll deductions accumulated prior to such Exercise Date and retained in the participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall a participant be permitted to
purchase during each Purchase Period more than 10,000 shares of Common Stock (subject to any adjustment pursuant to Section 19), and provided further that such purchase shall be subject to the limitations set forth in Sections 3(c) and 13.  The
Employee may accept the grant of such option (i) with respect to the first Offering Period under the Plan, by submitting a properly completed subscription agreement in accordance with the requirements of Section 5(a) on or before the last day of the
Enrollment Window, and (ii) with respect to any future Offering Period under the Plan, by electing to participate in the Plan in accordance with the requirements of Section 5(b).  The Administrator may, for future Offering Periods, increase or
decrease, in its absolute discretion, the maximum number of shares of Common Stock that a participant may purchase during each Purchase Period of such Offering Period.  Exercise of the option shall occur as provided in Section 8, unless the
participant has withdrawn pursuant to Section 10.  The option shall expire on the last day of the Offering Period.
 
 Exercise of Option. Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares of Common Stock shall be exercised automatically on the Exercise Date, and the maximum number of full shares
subject to option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account.  No fractional shares of Common Stock shall be purchased; any payroll deductions
accumulated in a participant’s account which are not sufficient to purchase a full share shall be retained in the participant’s account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant
as provided in Section 10.  Any other monies left over in a participant’s account after the Exercise Date shall be returned to the participant.  During a participant’s lifetime, a participant’s option to purchase shares
hereunder is exercisable only by him or her.
 Notwithstanding any contrary Plan provision, if the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with
respect to which options are to be exercised may exceed (i) the number of shares of
 -4-
 
 

  Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or (ii) the number of shares of Common Stock available for sale
under the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as
applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and continue all Offering Periods
then in effect, or (y) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it
shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Offering Periods then in effect pursuant to Section 20.  The Company may
make pro rata allocation of the shares of Common Stock available on the Enrollment Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares of Common Stock for issuance under
the Plan by the Company’s shareholders subsequent to such Enrollment Date.
 Delivery.  As soon as administratively practicable after each Exercise Date on which a purchase of shares of Common Stock occurs, the Company shall
arrange the delivery to each participant, as appropriate, the shares purchased upon exercise of his or her option in a form determined by the Administrator (in its sole discretion).  No participant shall have any voting, dividend, or other
shareholder rights with respect to shares of Common Stock subject to any option granted under the Plan until such shares have been purchased and delivered to the participant as provided in this Section 9.
 Withdrawal.
 Under procedures established by the Administrator, a participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any
time by (i) submitting to the Company’s payroll office (or its designee) a written notice of withdrawal in the form prescribed by the Administrator for such purpose, or (ii) following an electronic or other withdrawal procedure prescribed by
the Administrator. All of the participant’s payroll deductions credited to his or her account shall be paid to such participant as promptly as practicable after the effective date of his or her withdrawal and such participant’s option for
the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of shares shall be made for such Offering Period.  If a participant withdraws from an Offering Period, payroll deductions shall not resume
at the beginning of the succeeding Offering Period unless the participant re-enrolls in the Plan in accordance with the provisions of Section 5.
 A participant’s withdrawal from an Offering
Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which
the participant withdraws.
 Termination of Employment.  In the event a participant ceases to be an Employee of an Employer, his or her option shall remain exercisable for a period of ninety (90) days from the date of such
Employee’s termination.  Upon the expiration of such ninety (90) day period or a date prior to the expiration of such ninety (90) day period if requested by the participant, any payroll deductions credited to such participant’s
account during the Offering Period but not yet used to purchase shares of Common Stock under the Plan shall be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15, and such
participant’s option shall be automatically terminated.
 
 Interest.  No interest shall accrue on the payroll deductions of a participant in the Plan.
 Stock.
 Subject to
adjustment upon changes in capitalization of the Company as provided in Section 19, the maximum number of shares of Common Stock which shall be made available for sale under the Plan shall be 2,000,000 shares plus an annual increase to be added on
the first day of the Company’s fiscal year beginning in fiscal year 2003, equal to the lesser of (i) 1,500,000 shares, (ii) 2% of the outstanding shares on such date or (iii) an amount determined by the Board.  
 Shares of Common Stock to be delivered to a participant under the Plan shall be registered in the name of the participant or in the name of the participant and his or her spouse.
 Administration.  The Plan shall
be administered by the Board or a committee of members of the Board who shall be appointed from time to time by, and shall serve at the pleasure of, the Board.  The Administrator shall have full and exclusive discretionary authority to
construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan.  The Administrator, in its sole discretion and on such terms and conditions as it may provide, may
delegate to one or more individuals all or any part of its authority and powers under the Plan. Every finding, decision and determination made by the Administrator (or its designee) shall, to the full extent 
 -5- 

  permitted by law, be final and binding upon all parties.
 Designation of Beneficiary.
 A participant may designate a
beneficiary who is to receive any shares of Common Stock and cash, if any, from the participant’s account under the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such participant of such shares and cash.  In addition, a participant may designate a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to
exercise of the option.  If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective.
 Such designation of
beneficiary may be changed by the participant at any time.  In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company
shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such
shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.
 All beneficiary designations under this Section 15 shall be made in such form and manner as the Administrator may prescribe from time to time.
 Transferability.  Neither payroll deductions credited to a
participant’s account nor any rights with regard to the exercise of an option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent
and distribution or as provided in Section 15) by the participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from an
Offering Period in accordance with Section 10.
 
 Use of Funds.  All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to
segregate such payroll deductions.  Until shares of Common Stock are issued under the Plan (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), a participant shall only have
the rights of an unsecured creditor with respect to such shares.
 Reports.  Individual accounts shall be maintained for each participant in the Plan.  Statements of account shall be given to participating Employees at least annually,
which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any.
 
 Adjustments, Dissolution, Liquidation, Merger or Change of
Control.
 Adjustments.  In the event that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, stock
split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, or other change in the corporate structure of the Company affecting the
Common Stock such that an adjustment is determined by the Administrator (in its sole discretion) 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 Administrator shall, in such manner as it may deem equitable, adjust the number and class of Common Stock which may be delivered under the Plan, the Purchase Price per share and the number of shares of Common Stock covered by each option under
the Plan which has not yet been exercised, and the numerical limits of Sections 7 and 13.
 Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the
Company, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless
provided otherwise by the Board.  The New Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation.  The Board shall notify each participant in writing, at least ten (10) business days prior to the
New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10.  
 Merger or Change of Control.  In the event of a merger of the Company with or into another corporation
or a Change of Control, each outstanding option shall be assumed or an equivalent option substituted by the successor corporation or a 
 -6-
 
 

  Parent or Subsidiary of the successor corporation.  In the event that the successor corporation refuses to assume or substitute for the option, any Purchase Periods then in
progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any Offering Periods then in progress shall end on the New Exercise Date.  The New Exercise Date shall be before the date of the Company’s
proposed merger or Change of Control.  The Board shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New
Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10.
 Amendment or Termination.
 The Administrator may at any time and for any reason terminate or amend the Plan.  Except as provided in Section
19, no such termination can affect options previously granted under the Plan, provided that an Offering Period may be terminated by the Administrator on any Exercise Date if the Administrator determines that the termination of the Plan is in the
best interests of the Company and its stockholders.  Except as provided in Section 19 and this Section 20, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant.  To the
extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain stockholder approval in such a manner and to such a degree as
required.
 Without stockholder consent and without regard to whether any participant rights may be considered to have been “adversely affected,” the Administrator shall be entitled to change
the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in
excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and
crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as
the Administrator determines in its sole discretion advisable which are consistent with the Plan.
 In the event the Administrator determines that the ongoing operation of the Plan may result in
unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to: altering the
Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price; shortening any Offering Period so that Offering Period ends on a new Exercise Date, including an Offering Period underway at
the time of the Board action; and allocating shares.
 Such modifications or amendments shall not require stockholder approval or the consent of any Plan participants.
 Notices.  All
notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof.
 Conditions Upon Issuance of Shares.  Shares of Common Stock shall not be issued with respect to an option under the Plan unless the exercise of such option and the issuance and delivery of such shares
pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, including the rules and regulations promulgated thereunder, the Exchange Act and the
requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.
           As
a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention
to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.
 Term of Plan.  The Plan shall become effective upon the
earlier to occur of its adoption by the Board or its approval by the stockholders of the Company.  It shall continue in effect until terminated under Section 20.
 Automatic Transfer to Low Price Offering Period.  To the extent permitted
by any applicable laws, regulations, or stock exchange rules if the Fair Market Value of the Common Stock on any Exercise Date in an Offering Period is lower than 
 -7- 

  the Fair Market Value of the Common Stock on the Enrollment Date of such Offering Period, then all participants in such Offering Period shall be automatically withdrawn from such
Offering Period immediately after the exercise of their option on such Exercise Date and automatically re-enrolled in the immediately following Offering Period.
 -8-

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