Document:

AMENDED AND RESTATED 2002 LONG TERM INCENTIVE PLAN

 
Exhibit 10.1

 
BEARINGPOINT, INC. 
 
2000 LONG-TERM INCENTIVE PLAN 
 
(as amended and restated effective April 22, 2003) 
 
I. INTRODUCTION 
 
1.1 Purposes. The purposes of the 2000 Long-Term Incentive Plan (this “Plan”) of BearingPoint, Inc., a Delaware corporation (the “Company”), are (i) to
align the interests of the Company’s stockholders and the recipients of awards under this Plan by providing a means to increase the proprietary interest of such recipients in the Company’s growth and success, (ii) to advance the interests
of the Company by increasing its ability to attract and retain highly competent officers, other employees, non-employee directors and consultants and (iii) to motivate such persons to act in the long-term best interests of the Company and its
stockholders. 
 
This Plan is a continuation, and
amendment and restatement, of the KMPG Consulting, Inc. 2000 Long-Term Incentive Plan, the provisions of which shall continue to control with respect to any options or stock awards outstanding thereunder to the extent necessary to avoid
establishment of a new measurement date for financial accounting purposes. 
 
1.2 Certain Definitions. 
 
“Affiliate” shall mean (i) any subsidiary corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, as described in Section 424(f) of
the Code and (ii) any other entity in which the Company has an equity interest or with which the Company has a significant business relationship. 
 
“Agreement” shall mean the written agreement evidencing an award hereunder between the Company and the recipient
of such award. 
 
“Board”
shall mean the Board of Directors of the Company. 
 
“Bonus Stock” shall mean shares of Common Stock which are not subject to a Restriction Period or Performance Measures. 
 
“Bonus Stock Award” shall mean an award of Bonus Stock under this Plan. 
 
“Change in Control” shall have the
meaning set forth in Section 7.8(b). 
 
“Code” shall mean the Internal Revenue Code of 1986, as amended. 

 
“Committee” shall mean the committee designated by the Board which, following an IPO, shall consist of two or more members of the Board, each of whom may be a “Non-Employee Director” within the
meaning of Rule 16b-3 under the Exchange Act. 
 
“Common Stock” shall mean the common stock, $0.01 par value, of the Company. 
 
“Company” shall have the meaning set forth in Section 1.1. 
 
“Disability” shall mean the inability
of the recipient of an award to perform substantially such recipient’s duties and responsibilities for a continuous period of at least six months, as determined solely by the Committee. 
 
“Discretionary Director Options” shall
have the meaning set forth in Section 6.5. 
 
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 
“Fair Market Value” shall mean the last sale price of a share of Common Stock as reported on the New York Stock
Exchange on the date as of which such value is being determined or, if there shall be no reported transactions on such date, on the next preceding date for which a transaction was reported; provided, however, that if the Common Stock
is not traded on the New York Stock Exchange, Fair Market Value may be determined by the Committee by whatever means or method as the Committee, in the good faith exercise of its discretion, shall at such time deem appropriate. 
 
“Free-Standing SAR” shall mean an SAR
which is not issued in tandem with, or by reference to, an option, which entitles the holder thereof to receive, upon exercise, shares of Common Stock (which may be Restricted Stock), cash or a combination thereof with an aggregate value equal to
the excess of the Fair Market Value of one share of Common Stock on the date of exercise over the base price of such SAR, multiplied by the number of such SARs which are exercised. 
 
“Incentive Stock Option” shall mean an option to purchase shares of Common Stock that
meets the requirements of Section 422 of the Code, or any successor provision, which is intended by the Committee to constitute an Incentive Stock Option. 
 
“Incumbent Board” shall have the meaning set forth in Section 7.8(b)(3). 
 
“IPO” shall mean the initial public
offering of Common Stock pursuant to an effective registration statement under the Securities Act of 1933, as amended. 
 
“Mature Shares” shall mean previously-acquired shares of Common Stock for which the holder thereof has good title,
free and clear of all liens and encumbrances and which such holder either (i) has held for at least six months or (ii) has purchased on the open market. 
 
“Non-Employee Director” shall mean any director of the Company who is not an officer or employee of the Company or
any subsidiary of the Company and who is not a partner, principal or employee of KPMG LLP. 
 

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“Non-Statutory Stock Option” shall mean an option to purchase shares of Common Stock which is not an Incentive Stock Option. 
 
“Performance Measures” shall mean the criteria and objectives, established by the
Committee, which shall be satisfied or met (i) as a condition to the exercisability of all or a portion of an option or SAR, (ii) as a condition to the grant of a Stock Award or (iii) during the applicable Restriction Period or Performance Period as
a condition to the holder’s receipt, in the case of a Restricted Stock Award, of the Restricted Stock subject to such award, or, in the case of a Performance Share Award, of the shares of Common Stock subject to such award and/or of payment
with respect to such award. Such criteria and objectives may include one or more of the following: the attainment by a share of Common Stock of a specified Fair Market Value for a specified period of time, earnings per share, return to stockholders
(including dividends), return on equity, earnings of the Company, revenues, market share, cash flow or cost reduction goals, or any combination of the foregoing. In the sole discretion of the Committee, the Committee may amend or adjust the
Performance Measures or other terms and conditions of an outstanding award in recognition of unusual or nonrecurring events affecting the Company or its financial statements or changes in law or accounting principles. 
 
“Performance Period” shall mean any
period designated by the Committee during which the Performance Measures applicable to a Performance Share Award shall be measured. 
 
“Performance Share” shall mean a right, contingent upon the attainment of specified Performance Measures within a
specified Performance Period, to receive one share of Common Stock, which may be Restricted Stock or, in lieu of all or a portion thereof, the Fair Market Value of such share of Common Stock in cash. 
 
“Performance Share Award” shall mean
an award of Performance Shares under this Plan. 
 
“Person” shall have the meaning set forth in Section 7.8(b)(3). 
 
“Restricted Stock” shall mean either (i) shares of Common Stock which are subject to a Restriction Period, or (ii)
Common Stock equivalent units which are subject to a Restriction Period. 
 
“Restricted Stock Award” shall mean an award of Restricted Stock under this Plan. 
 
“Restriction Period” shall mean any period designated by the Committee during which the Restricted Stock subject
to a Restricted Stock Award is subject to forfeiture and may not be sold, transferred, assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this Plan or the Agreement relating to such award. 
 
“Retirement” shall mean termination of
employment with or service to the Company by reason of retirement on or after age 65. 
 
“SAR” shall mean a stock appreciation right which may be a Free-Standing SAR or a Tandem SAR. 
 

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“Stock Award” shall mean a Restricted Stock Award or a Bonus Stock Award. 
 
“Tandem SAR” shall mean an SAR which is granted in tandem with, or by reference to, an option (including a
Non-Statutory Stock Option granted prior to the date of grant of the SAR), which entitles the holder thereof to receive, upon exercise of such SAR and surrender for cancellation of all or a portion of such option, shares of Common Stock (which may
be Restricted Stock), cash or a combination thereof with an aggregate value equal to the excess of the Fair Market Value of one share of Common Stock on the date of exercise over the base price of such SAR, multiplied by the number of shares of
Common Stock subject to such option, or portion thereof, which is surrendered. 
 
“Tax Date” shall have the meaning set forth in Section 7.5. 
 
“Ten Percent Holder” shall have the meaning set forth in Section 2.1(a). 
 
1.3 Administration. This Plan shall be
administered by the Committee. Any one or a combination of the following awards may be made under this Plan to eligible persons: (i) options to purchase shares of Common Stock in the form of Incentive Stock Options or Non-Statutory Stock Options,
(ii) SARs in the form of Tandem SARs or Free-Standing SARs, (iii) Stock Awards in the form of Restricted Stock or Bonus Stock and (iv) Performance Shares. The Committee shall, subject to the terms of this Plan, select eligible persons for
participation in this Plan and determine the form, amount and timing of each award to such persons and, if applicable, the number of shares of Common Stock, the number of SARs and the number of Performance Shares subject to such an award, the
exercise price or base price associated with the award, the time and conditions of exercise or settlement of the award and all other terms and conditions of the award, including, without limitation, the form of the Agreement evidencing the award.
The Committee may, in its sole discretion and for any reason at any time, take action such that (i) any or all outstanding options and SARs shall become exercisable in part or in full, (ii) all or a portion of the Restriction Period applicable to
any outstanding Restricted Stock Award shall lapse, (iii) all or a portion of the Performance Period applicable to any outstanding Performance Share Award shall lapse and (iv) the Performance Measures applicable to any outstanding award (if any)
shall be deemed to be satisfied at the maximum or any other level. The Committee shall, subject to the terms of this Plan, interpret this Plan and the application thereof, establish rules and regulations it deems necessary or desirable for the
administration of this Plan and may impose, incidental to the grant of an award, conditions with respect to the award, such as limiting competitive employment or other activities. All such interpretations, rules, regulations and conditions shall be
final, binding and conclusive. 
 
The Committee may
delegate some or all of its power and authority hereunder to the Board or either of the Co-Chief Executive Officers or other executive officer of the Company as the Committee deems appropriate; provided, however, that the Committee may
not delegate its power and authority to either of the Co-Chief Executive Officers or other executive officer of the Company with regard to the selection for participation in this Plan of an officer or other person subject to Section 16 of the
Exchange Act or decisions concerning the timing, pricing or amount of an award to such an officer or other person. 
 

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No member of
the Board or Committee, and neither a Co-Chief Executive Officer nor any other executive officer to whom the Committee delegates any of its power and authority hereunder, shall be liable for any act, omission, interpretation, construction or
determination made in connection with this Plan in good faith, and the members of the Board and the Committee and the Co-Chief Executive Officers or other executive officer shall be entitled to indemnification and reimbursement by the Company in
respect of any claim, loss, damage or expense (including attorneys’ fees) arising therefrom to the full extent permitted by law, except as otherwise may be provided in the Company’s Certificate of Incorporation and/or By-laws, and under
any directors’ and officers’ liability insurance that may be in effect from time to time. 
 
A majority of the Committee shall constitute a quorum. The acts of the Committee shall be either (i) acts of a majority of the members of
the Committee present at any meeting at which a quorum is present or (ii) acts approved in writing by all of the members of the Committee without a meeting. 
 
1.4 Eligibility. Participants in this Plan shall consist of such officers, other employees and consultants, and
persons expected to become officers, other employees and consultants, of the Company and its Affiliates, as the Committee in its sole discretion may select from time to time, and such other persons designated by the Committee pursuant to Section
7.13. For purposes of this Plan, references to employment also shall mean a consulting relationship and references to employment by the Company also shall mean employment by an Affiliate. The Committee’s selection of a person to participate in
this Plan at any time shall not require the Committee to select such person to participate in this Plan at any other time. Non-Employee Directors of the Company shall be eligible to participate in this Plan in accordance with Article VI.

 
1.5 Shares Available.

 
(a) Shares Available. The number of
shares of Common Stock that are authorized for grants or awards under this Plan (the “Authorized Shares”) shall at all times be equal to the greater of (i) subject to adjustment as provided in Section 7.7, 177,000,000 shares and (ii) 25%
of the sum of (x) the number of issued and outstanding shares of Common Stock of the Company plus (y) the Authorized Shares, provided, however, that the number of Authorized Shares shall never be reduced below the number of shares that are
then issuable under all outstanding grants or awards. The number of shares of Common Stock that shall be available for grants or awards under this Plan (the “Available Shares”) shall be equal to the number of Authorized Shares reduced by
the sum of the aggregate number of shares of Common Stock, adjusted as provided in Section 7.7, which become subject to outstanding options, including Discretionary Director Options, outstanding Free-Standing SARs, outstanding Stock Awards and
outstanding Performance Share Awards. 
 
(b)
Maximum Grants of Incentive Stock Options. Subject to adjustment as provided in Section 7.7, the maximum number of shares that may be granted as Incentive Stock Options shall be 177,000,000. 
 
(c) Restoration of Available Shares. To the extent that
shares of Common Stock subject to an outstanding option (except to the extent shares of Common Stock are issued or 
 

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delivered by the Company in connection with the exercise of a Tandem SAR), Free-Standing SAR, Stock Award
or Performance Share Award are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or by reason of the delivery or withholding of shares of Common Stock to pay all or a portion of the purchase
price of an award, if any, or to satisfy all or a portion of the tax withholding obligations relating to an award, then such shares of Common Stock shall again be available under this Plan. 
 
(d) Available Common Stock. Shares of Common Stock
shall be made available from authorized and unissued shares of Common Stock, or authorized and issued shares of Common Stock reacquired and held as treasury shares or otherwise or a combination thereof. 
 
II. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

 
2.1 Stock Options. The
Committee may, in its discretion, grant options to purchase shares of Common Stock to such eligible persons as may be selected by the Committee. Each option, or portion thereof, that is not an Incentive Stock Option shall be a Non-Statutory Stock
Option. An Incentive Stock Option may not be granted to any person who is not an employee of the Company or any parent or subsidiary (as defined in Section 424 of the Code). Each Incentive Stock Option shall be granted within ten years of the date
this Plan is adopted by the Board. To the extent that the aggregate Fair Market Value (determined as of the date of grant) of shares of Common Stock with respect to which options designated as Incentive Stock Options are exercisable for the first
time by a participant during any calendar year (under this Plan or any other plan of the Company or any parent or subsidiary as defined in Section 424 of the Code) exceeds the amount (currently $100,000) established by the Code, such options shall
constitute Non-Statutory Stock Options. 
 
Options
shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable: 
 
(a) Number of Shares and Purchase Price. The number of
shares of Common Stock subject to an option and the purchase price per share of Common Stock purchasable upon exercise of the option shall be determined by the Committee; provided, however, that the purchase price per share of Common
Stock purchasable upon exercise of the option shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of such option; and provided further, that if an Incentive Stock Option shall be granted
to any person who, at the time such option is granted, owns capital stock possessing more than ten percent of the total combined voting power of all classes of capital stock of the Company (or of any parent or subsidiary as defined in Section 424 of
the Code) (a “Ten Percent Holder”), the purchase price per share of Common Stock shall not be less than the price (currently 110% of Fair Market Value) required by the Code in order to constitute an Incentive Stock Option.

 
(b) Exercise Period and Exercisability.
The period during which an option may be exercised shall be determined by the Committee; provided, however, that no Incentive Stock Option shall be exercised later than ten years after its date of grant; and provided
further, that if an Incentive Stock Option shall be granted to a Ten Percent Holder, such option shall not be exercised later than five years after its date of grant. The Committee may, in its discretion, 
 

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establish Performance Measures which shall be satisfied or met as a condition to the grant of an option or
to the exercisability of all or a portion of an option. The Committee shall determine whether an option shall become exercisable in cumulative or non-cumulative installments and in part or in full at any time. An exercisable option, or portion
thereof, may be exercised only with respect to whole shares of Common Stock. 
 
(c) Method of Exercise. An option may be exercised (i) by giving written notice to the Company specifying the number of whole shares of Common Stock to be purchased and by accompanying such
notice with payment therefor in full (or by arranging for such payment to the Company’s satisfaction) either (A) in cash, (B) by delivery (either actual delivery or by attestation procedures established by the Company) of Mature Shares having
an aggregate Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable by reason of such exercise, (C) in cash by a broker-dealer acceptable to the Company to whom the optionee has submitted an
irrevocable notice of exercise or (D) a combination of (A) and (B), in each case to the extent set forth in the Agreement relating to the option, (ii) if applicable, by surrendering to the Company any Tandem SARs which are cancelled by reason of the
exercise of the option and (iii) by executing such documents as the Company may reasonably request. The Company shall have sole discretion to disapprove of an election pursuant to any of clauses (i)(B)-(D). Any fraction of a share of Common Stock
which would be required to pay such purchase price shall be disregarded and the remaining amount due shall be paid in cash by the optionee. No certificate representing Common Stock shall be delivered until the full purchase price therefor and any
withholding taxes thereon, as described in Section 7.5, have been paid (or arrangement made for such payment to the Company’s satisfaction). 
 
2.2 Stock Appreciation Rights. The Committee may, in its discretion, grant SARs to such eligible persons as may be selected
by the Committee. The Agreement relating to an SAR shall specify whether the SAR is a Tandem SAR or a Free-Standing SAR. 
 
SARs shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with
the terms of this Plan, as the Committee shall deem advisable: 
 
(a) Number of SARs and Base Price. The number of SARs subject to an award shall be determined by the Committee. Any Tandem SAR related to an Incentive Stock Option shall be granted at the same time that such Incentive Stock
Option is granted. The base price of a Tandem SAR shall be the exercise price per share of Common Stock of the related option. The base price of a Free-Standing SAR shall be determined by the Committee; provided, however, that such
base price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of such SAR. 
 
(b) Exercise Period and Exercisability. The Agreement relating to an award of SARs shall specify whether such award may be settled
in shares of Common Stock (including shares of Restricted Stock) or cash or a combination thereof. The period for the exercise of an SAR shall be determined by the Committee; provided, however, that no Tandem SAR shall be exercised
later than the expiration, cancellation, forfeiture or other termination of the related option. The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of an SAR or to the
exercisability of all or a portion of an SAR. The 
 

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Committee shall determine whether an SAR may be exercised in cumulative or non-cumulative installments and
in part or in full at any time. An exercisable SAR, or portion thereof, may be exercised, in the case of a Tandem SAR, only with respect to whole shares of Common Stock and, in the case of a Free-Standing SAR, only with respect to a whole number of
SARs. If an SAR is exercised for shares of Restricted Stock, a certificate or certificates representing such Restricted Stock shall be issued in accordance with Section 3.2(c) and the holder of such Restricted Stock shall have such rights of a
stockholder of the Company as determined pursuant to Section 3.2(d). Prior to the exercise of an SAR for shares of Common Stock, including Restricted Stock, the holder of such SAR shall have no rights as a stockholder of the Company with respect to
the shares of Common Stock subject to such SAR. 
 
(c) Method of Exercise. A Tandem SAR may be exercised (i) by giving written notice to the Company specifying the number of whole SARs which are being exercised, (ii) by surrendering to the Company any options which are
cancelled by reason of the exercise of the Tandem SAR and (iii) by executing such documents as the Company may reasonably request. A Free-Standing SAR may be exercised (i) by giving written notice to the Company specifying the whole number of SARs
which are being exercised and (ii) by executing such documents as the Company may reasonably request. 
 
2.3 Termination of Employment or Service. Subject to the requirements of the Code, all of the terms relating to the
exercise, cancellation or other disposition of an option or SAR upon a termination of employment with or service to the Company of the recipient of such option or SAR, as the case may be, whether by reason of Disability, Retirement, death or any
other reason, shall be determined by the Committee. 
 
III. STOCK AWARDS 
 
3.1
Stock Awards. The Committee may, in its discretion, grant Stock Awards to such eligible persons as may be selected by the Committee. The Agreement relating to a Stock Award shall specify whether the Stock Award is a Restricted Stock Award
or Bonus Stock Award. 
 
3.2 Terms of Stock
Awards. Stock Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable. 
 
(a) Number of Shares and Other Terms. The number of
shares of Common Stock subject to a Restricted Stock Award or Bonus Stock Award and the Performance Measures (if any) and Restriction Period applicable to a Restricted Stock Award shall be determined by the Committee. Bonus Stock Awards shall not be
subject to any Performance Measures or Restriction Periods. 
 
(b) Vesting and Forfeiture. The Agreement relating to a Restricted Stock Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of the
Restricted Stock subject to such award (i) if specified Performance Measures are satisfied or met during the specified Restriction Period or (ii) if the holder of such award remains continuously in the employment of or service to the 
 

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Company during the specified Restriction Period and for the forfeiture of all or a portion of the shares
of Common Stock subject to such award (x) if specified Performance Measures are not satisfied or met during the specified Restriction Period or (y) if the holder of such award does not remain continuously in the employment of or service to the
Company during the specified Restriction Period. 
 
(c) Share Certificates. During the Restriction Period, a certificate or certificates representing a Restricted Stock Award may be registered in the holder’s name or a nominee name at the discretion of the Company and may
bear a legend, in addition to any legend which may be required pursuant to Section 7.6, indicating that the ownership of the shares of Common Stock represented by such certificate is subject to the restrictions, terms and conditions of this Plan and
the Agreement relating to the Restricted Stock Award. As determined by the Committee, all certificates registered in the holder’s name shall be deposited with the Company, together with stock powers or other instruments of assignment (including
a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate by the Company, which would permit transfer to the Company of all or a portion of the shares of Common Stock subject to the Restricted
Stock Award in the event such award is forfeited in whole or in part. Upon termination of any applicable Restriction Period (and the satisfaction or attainment of applicable Performance Measures), or upon the grant of a Bonus Stock Award, in each
case subject to the Company’s right to require payment of any taxes in accordance with Section 7.5, a certificate or certificates evidencing ownership of the requisite number of shares of Common Stock shall be delivered to the holder of such
award. 
 
(d) Rights with Respect to Restricted
Stock Awards. Unless otherwise set forth in the Agreement relating to a Restricted Stock Award, and subject to the terms and conditions of the Agreement relating to a Restricted Stock Award, (i) the holder of a Restricted Stock Award
denominated in shares of Common Stock shall have all rights as a stockholder of the Company, including, but not limited to, voting rights, the right to receive dividends and the right to participate in any capital adjustment applicable to all
holders of Common Stock; provided, however, that a distribution with respect to shares of Common Stock, other than a regular cash dividend, shall be deposited with the Company and shall be subject to the same restrictions as the shares
of Common Stock with respect to which such distribution was made, and (ii) the holder of a Restricted Stock Award denominated in Common Stock equivalent units shall have no rights as a stockholder of the Company unless and until shares of Common
Stock are issued and delivered to the holder of the Restricted Stock Award with respect to such Common Stock equivalent units; provided, however, that a Restricted Stock Award denominated in Common Stock equivalent units may provide
for the payment of dividend equivalents which correspond to the payment of dividends on Common Stock. 
 
3.3 Termination of Employment or Service. All of the terms relating to the satisfaction of Performance Measures and the
termination of the Restriction Period relating to a Restricted Stock Award, or any forfeiture and cancellation of such award upon a termination of employment with or service to the Company of the recipient of such award, whether by reason of
Disability, Retirement, death or any other reason, shall be determined by the Committee. 
 

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IV.
PERFORMANCE SHARE AWARDS 
 
4.1
Performance Share Awards. The Committee may, in its discretion, grant Performance Share Awards to such eligible persons as may be selected by the Committee. 
 
4.2 Terms of Performance Share Awards. Performance Share Awards shall be subject to the
following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable. 
 
(a) Number of Performance Shares and Performance Measures. The number of Performance Shares subject to
any award and the Performance Measures and Performance Period applicable to such award shall be determined by the Committee. 
 
(b) Vesting and Forfeiture. The Agreement relating to a Performance Share Award shall provide, in the manner determined by the
Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of such award, if specified Performance Measures are satisfied or met during the specified Performance Period, and for the forfeiture of all or a portion of
such award, if specified Performance Measures are not satisfied or met during the specified Performance Period. 
 
(c) Settlement of Vested Performance Share Awards. The Agreement relating to a Performance Share Award (i) shall specify whether
such award may be settled in shares of Common Stock (including shares of Restricted Stock) or cash or a combination thereof and (ii) may specify whether the holder thereof shall be entitled to receive, on a current or deferred basis, dividend
equivalents, and, if determined by the Committee, interest on or the deemed reinvestment of any deferred dividend equivalents, with respect to the number of shares of Common Stock subject to such award. If a Performance Share Award is settled in
shares of Restricted Stock, a certificate or certificates representing such Restricted Stock shall be issued in accordance with Section 3.2(c) and the holder of such Restricted Stock shall have such rights of a stockholder of the Company as
determined pursuant to Section 3.2(d). Prior to the settlement of a Performance Share Award in shares of Common Stock, including Restricted Stock, the holder of such award shall have no rights as a stockholder of the Company with respect to the
shares of Common Stock subject to such award. 
 
4.3 Termination of Employment or Service. All of the terms relating to the satisfaction of Performance Measures and the termination of the Performance Period relating to a Performance Share Award, or any forfeiture and
cancellation of such award upon a termination of employment with or service to the Company of the recipient of such award, whether by reason of Disability, Retirement, death or other termination, shall be determined by the Committee. 
 
V. OTHER STOCK-BASED AWARDS 
 
In addition to Restricted Stock Awards, the Committee may from
time to time grant other stock-based awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall
determine. Other stock-based awards may be denominated in cash, in Common Stock or other securities, in stock-equivalent units, in stock appreciation units, in 
 

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securities or debentures convertible into Common Stock, or in any combination of the foregoing and may be
paid in Common Stock or other securities, in cash, or in a combination of Common Stock or other securities and cash, all as determined in the sole discretion of the Committee. 
 
VI. PROVISIONS RELATING TO NON-EMPLOYEE DIRECTORS 
 
6.1 Eligibility. Each Non-Employee
Director shall be eligible to participate in the Plan as provided in this Article VI. 
 
6.2 Automatic Grants of Stock Options. Each Non-Employee Director shall automatically be granted Non-Statutory Stock Options as follows: 
 
(a) Time of Grant. Automatic grants of Non-Statutory
Stock Options shall be made on the dates specified below: 
 
(1) Each person who is serving as a Non-Employee Director as of March 20, 2001 shall automatically be granted, on the date that the next Non-Employee Director is elected, an option to purchase 15,000 shares of Common Stock.

 
(2) Each person who is first elected or first
begins to serve as a Non-Employee Director on or after March 20, 2001 shall automatically be granted, on the date of such initial election or service, an option to purchase 15,000 shares of Common Stock. 
 
(3) Each person who is a Non-Employee Director shall
automatically be granted an option to purchase 5,000 shares of Common Stock on the date he or she is first elected to serve as Chair of the Audit Committee of the Board of Directors of the Company. 
 
(b) Purchase Price. The purchase price per share of
Common Stock purchasable upon exercise of an option granted under this Section 6.2 shall be 100% of the Fair Market Value of a share of Common Stock on the date of grant of such option. 
 
(c) Exercise Period and Exercisability. Each option granted under Section 6.2(a)(1) or Section
6.2(a)(2) shall be fully exercisable on and after the one year anniversary of its date of grant and each option granted under Section 6.2(a)(3) shall be fully exercisable on and after the day preceding the day of the next annual meeting of
stockholders of the Company following its date of grant. Each option granted under this Section 6.2 shall expire 10 years after its date of grant. An exercisable option, or portion thereof, may be exercised in whole or in part only with respect to
whole shares of Common Stock. Options granted under this Section 6.2 shall be exercisable in accordance with Section 2.1(c). 
 
6.3 Termination of Directorship. (a) Disability. If the recipient of an option granted under Section 6.2 ceases to be
a director of the Company by reason of Disability, each such option held by the holder thereof shall be exercisable only to the extent such option is exercisable on the effective date of such recipient’s ceasing to be a director and may
thereafter be exercised by such holder (or such holder’s legal representative or similar person) until and including the earlier to occur of the (i) date which is one year after the effective date of such recipient’s ceasing to be a
director and (ii) the expiration date of the term of such option. 
 

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(b)
Retirement. If the recipient of an option granted under Section 6.2 ceases to be a director of the Company by reason of Retirement, each such option held by the holder thereof shall be exercisable only to the extent such option is exercisable
on the effective date of such recipient’s ceasing to be a director and may thereafter be exercised by such holder (or such holder’s legal representative or similar person) until and including the earlier to occur of the (i) date which is
three months after the effective date of such recipient’s ceasing to be a director and (ii) the expiration date of the term of such option. 
 
(c) Death. If the recipient of an option granted under Section 6.2 ceases to be a director of the Company by reason of death, each
such option held by the holder thereof shall be exercisable only to the extent such option is exercisable on the effective date of such recipient’s ceasing to be a director and may thereafter be exercised by such holder’s executor,
administrator, legal representative, beneficiary or similar person until and including the earlier to occur of the (i) date which is one year after the date of such recipient’s death and (ii) the expiration date of the term of such option.

 
(d) Other Termination. If the recipient
of an option granted under Section 6.2 ceases to be a director of the Company for any reason other than Disability, Retirement or death, each such option held by the holder thereof shall be exercisable only to the extent such option is exercisable
on the effective date of such recipient’s ceasing to be a director and may thereafter be exercised by such holder (or such holder’s legal representative or similar person) until and including the earlier to occur of the (i) date which is
three months after the effective date of such recipient’s ceasing to be a director and (ii) the expiration date of the term of such option. 
 
(e) Death Following Termination of Directorship. If the recipient of an option granted under Section 6.2 dies during the period set
forth in Section 6.3(a) following such recipient’s ceasing to be a director of the Company by reason of Disability, or if such recipient dies during the period set forth in Section 6.3(b) following such recipient’s Retirement, or if such a
recipient dies during the period set forth in Section 6.3(d) following such recipient’s ceasing to be a director for any reason other than by reason of Disability or Retirement, each such option held by the holder thereof shall be exercisable
only to the extent that such option is exercisable on the date of the recipient’s death and may thereafter be exercised by such holder’s executor, administrator, legal representative, beneficiary or similar person until and including the
earlier to occur of the (i) date which is one year after the date of such recipient’s death and (ii) the expiration date of the term of such option. 
 
6.4 Automatic Grants of Restricted Stock Awards. Each Non-Employee Director shall be granted a Restricted Stock Award as
follows: 
 
(a) Time of Grant. Each person
who is serving as a Non-Employee Director immediately following any annual meeting of stockholders of the Company held on or after November 11, 2002, shall automatically be granted, on the date of such meeting, a Restricted Stock Award for 4,000
shares of Common Stock, unless the Compensation Committee determines that such Restricted Stock Award shall be in Common Stock equivalent units with dividend equivalents. 
 
(b) Vesting. The Restricted Stock Award shall be fully vested upon grant. 
 

12 

 
(c)
Restriction Period. The Restriction Period for the Restricted Stock Award shall be the period of time during which the Non-Employee Director provides services as a member of the Board. The Restriction Period shall terminate on the date that
the Non-Employee Director ceases to serve as a member of the Board. 
 
6.5 Discretionary Grants of Stock Options. The Committee may, in its discretion, grant options to purchase shares of Common Stock (“Discretionary Director Options”) to all Non-Employee
Directors or to any one or more of them. Each Discretionary Director Option shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee
shall deem advisable: 
 
(a) Number of Shares
and Purchase Price. The number of shares of Common Stock subject to a Discretionary Director Option and the purchase price per share of Common Stock purchasable upon exercise of the option shall be determined by the Committee; provided,
however, that the purchase price per share of Common Stock purchasable upon exercise of the option shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of such option. 
 
(b) Exercise Period and Exercisability. The period
during which a Discretionary Director Option may be exercised shall be determined by the Committee. The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of a Discretionary
Director Option or to the exercisability of all or a portion of a Discretionary Director Option. The Committee shall determine whether a Discretionary Director Option shall become exercisable in cumulative or non-cumulative installments and in part
or in full at any time. An exercisable Director Discretionary Option, or portion thereof, may be exercised only with respect to whole shares of Common Stock. Each Discretionary Director Option shall be exercisable in accordance with Section 2.1(c).

 
(c) Termination of Directorship. All of
the terms relating to the exercise, cancellation or other disposition of a Discretionary Director Option upon a termination of service as a director of the Company of the recipient of a Discretionary Director Option, whether by reason of Disability,
Retirement, death or any other reason, shall be determined by the Committee. 
 
VII. GENERAL 
 
7.1 Effective Date and Term of Plan. This Plan shall be submitted to the stockholders of the Company for approval within 12 months following its adoption by the Board and, if approved, shall become
effective as of the date of such adoption by the Board. No option may be exercised prior to the date of such stockholder approval. This Plan shall terminate 10 years after its effective date, unless terminated earlier by the Board. Termination of
this Plan shall not affect the terms or conditions of any award granted prior to such termination. 
 
7.2 Amendments. The Board or the Committee may amend this Plan as it shall deem advisable, subject to any requirement of
stockholder approval required by applicable law, rule or regulation, including Section 422 of the Code; provided, however, that no amendment shall be made without stockholder approval if such amendment would (a) increase the maximum
number of shares of Common Stock available under this Plan (subject to Section 7.7), (b) effect any 
 

13 

change inconsistent with Section 422 of the Code or (c) extend the term of this Plan. No amendment may
impair the rights of a holder of an outstanding award without the consent of such holder. 
 
7.3 Agreement. No award shall be valid until an Agreement is executed by the Company and the recipient of such award and, upon execution by each party and delivery of the Agreement to the
Company, such award shall be effective as of the effective date set forth in the Agreement. 
 
7.4 Non-Transferability of Awards. Unless the Committee provides for the transferability of a particular award and such transferability is specified in the Agreement relating to such
award, no award shall be transferable other than by will, the laws of descent and distribution or pursuant to beneficiary designation procedures stated in Section 7.11 or otherwise approved by the Company. Except to the extent permitted by the
foregoing sentence or the Agreement relating to the Award, each award may be exercised or settled during the recipient’s lifetime only by the recipient or the recipient’s legal representative or similar person. Except to the extent
permitted by the second preceding sentence or the Agreement relating to the Award, no award may be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to
execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any such award, such award and all rights thereunder shall immediately become null and void. 
 
7.5 Tax Withholding. The Company shall have the
right to require, prior to the issuance or delivery of any shares of Common Stock or the payment of any cash pursuant to an award made hereunder, payment by the holder of such award of any federal, state, local or other taxes which may be required
to be withheld or paid in connection with such award. An Agreement may provide that (i) the Company shall withhold whole shares of Common Stock which would otherwise be delivered to a holder, having an aggregate Fair Market Value determined as of
the date the obligation to withhold or pay taxes arises in connection with an award (the “Tax Date”), or withhold an amount of cash which would otherwise be payable to a holder, in the amount necessary to satisfy any such obligation
or (ii) the holder may satisfy any such obligation by any of the following means: (A) a cash payment to the Company, (B) delivery (either actual delivery or by attestation procedures established by the Company) to the Company of Mature Shares having
an aggregate Fair Market Value, determined as of the Tax Date, equal to the amount necessary to satisfy any such obligation, (C) authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate
Fair Market Value, determined as of the Tax Date, or withhold an amount of cash which would otherwise be payable to a holder, equal to the amount necessary to satisfy any such obligation, (D) in the case of the exercise of an option, a cash payment
by a broker-dealer acceptable to the Company to whom the optionee has submitted an irrevocable notice of exercise or (E) any combination of (A), (B) and (C), in each case to the extent set forth in the Agreement relating to the award;
provided, however, that the Company shall have sole discretion to disapprove of an election pursuant to any of clauses (ii)(B)-(E). Any fraction of a share of Common Stock which would be required to satisfy such an obligation shall be
disregarded and the remaining amount due shall be paid in cash by the holder. 
 
 

14 

 
7.6
Restrictions on Shares. Each award made hereunder shall be subject to the requirement that if at any time the Company determines that the listing, registration or qualification of the shares of Common Stock subject to such award upon any
securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the exercise or settlement of such award or the delivery
of shares thereunder, such award shall not be exercised or settled and such shares shall not be delivered unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained, free of any
conditions not acceptable to the Company. The Committee may provide for such restrictions upon the transferability of shares of Common Stock delivered pursuant to any award made hereunder as it deems appropriate and such restrictions shall be
specified in the Agreement relating to such award. The Company may require that certificates evidencing shares of Common Stock delivered pursuant to any award made hereunder bear a legend indicating that the sale, transfer or other disposition
thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder and such other restrictions, if any, specified in the Agreement relating to the award pursuant to which
such shares were delivered. 
 
7.7
Adjustment. In the event of any stock split, reverse stock split, stock dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or other similar change in capitalization or
event, or any distribution to holders of Common Stock other than a regular cash dividend, the class of securities available under this Plan, the number and class of securities subject to each outstanding option and the purchase price per security,
the terms of each outstanding SAR, the number and class of securities subject to each outstanding Stock Award or Performance Share Award, and the terms of each outstanding Restricted Stock Award or Performance Share Award shall be appropriately
adjusted by the Committee, such adjustments to be made in the case of outstanding options and SARs without an increase in the aggregate purchase price or base price. The decision of the Committee regarding any such adjustment shall be final, binding
and conclusive. If any such adjustment would result in a fractional security being (a) available under this Plan, such fractional security shall be disregarded, or (b) subject to an award under this Plan, the Company shall pay the holder of such
award, in connection with the first vesting, exercise or settlement of such award in whole or in part occurring after such adjustment, an amount in cash determined by multiplying (i) the fraction of such security (rounded to the nearest hundredth)
by (ii) the excess, if any, of (A) the Fair Market Value on the vesting, exercise or settlement date over (B) the exercise or base price, if any, of such award. 
 
7.8 Change in Control. 
 
(a) (1) Notwithstanding any provision in this Plan or any Agreement, in the event of a Change in Control in
connection with which the holders of Common Stock receive shares of common stock that are registered under Section 12 of the Exchange Act, (i) all outstanding options and SARS shall immediately become exercisable in full, (ii) the Restriction Period
applicable to any outstanding Restricted Stock Award shall lapse, (iii) the Performance Period applicable to any outstanding Performance Share Award shall lapse, (iv) the Performance Measures applicable to any outstanding award shall be deemed to be
satisfied at the maximum level and (v) there shall be substituted for each share of Common Stock available under this Plan, whether or not then subject to an outstanding award, the number and class of shares into 
 

15 

which each outstanding share of Common Stock shall be converted pursuant to such Change in Control. In the
event of any such substitution, the purchase price per share in the case of an option and the base price in the case of an SAR shall be appropriately adjusted by the Committee (whose determination shall be final, binding and conclusive), such
adjustments to be made in the case of outstanding options and SARs without an increase in the aggregate purchase price or base price. 
 
(2) Notwithstanding any provision in this Plan or any Agreement, in the event of any Change in Control other than a Change in Control in
connection with which the holders of Common Stock receive shares of common stock that are registered under Section 12 of the Exchange Act, each outstanding award shall be surrendered to the Company by the holder thereof, and each such award shall
immediately be cancelled by the Company, and the holder shall receive, within ten days of the occurrence of a Change in Control, a cash payment from the Company in an amount equal to (i) in the case of an option, the number of shares of Common Stock
then subject to such option, multiplied by the excess, if any, of the greater of (A) the highest per share price offered to stockholders of the Company in any transaction whereby the Change in Control takes place or (B) the Fair Market Value of a
share of Common Stock on the date of occurrence of the Change in Control, over the purchase price per share of Common Stock subject to the option, (ii) in the case of a Free-Standing SAR, the number of shares of Common Stock then subject to such
SAR, multiplied by the excess, if any, of the greater of (A) the highest per share price offered to stockholders of the Company in any transaction whereby the Change in Control takes place or (B) the Fair Market Value of a share of Common Stock on
the date of occurrence of the Change in Control, over the base price of the SAR, (iii) in the case of a Restricted Stock Award or Performance Share Award, the number of shares of Common Stock or the number of Performance Shares, as the case may be,
then subject to such award, multiplied by the greater of (A) the highest per share price offered to stockholders of the Company in any transaction whereby the Change in Control takes place or (B) the Fair Market Value of a share of Common Stock on
the date of occurrence of the Change in Control. In the event of such a Change in Control, each Tandem SAR shall be surrendered by the holder thereof and shall be cancelled simultaneously with the cancellation of the related option. The Company may,
but is not required to, cooperate with any person who is subject to Section 16 of the Exchange Act to assure that any cash payment in accordance with the foregoing to such person is made in compliance with Section 16 and the rules and regulations
thereunder. 
 
(b) “Change in Control”
shall mean: 
 
(1) a sale or transfer of all or
substantially all of the assets of the Company on a consolidated basis in any transaction or series of related transactions; 
 
(2) any merger, consolidation or reorganization to which the Company is a party, except for a merger, consolidation or reorganization in
which the Company is the surviving corporation and, after giving effect to such merger, consolidation or reorganization, the holders of the Company’s outstanding equity (on a fully diluted basis) immediately prior to the merger, consolidation
or reorganization will own in the aggregate immediately following the merger, consolidation or reorganization the Company’s outstanding equity (on a fully diluted basis) either (i) having the ordinary voting power to elect a majority of the
members of the Company’s board of directors to be elected by the holders of Common Stock and any other class which votes 
 

16 

together with the Common Stock as a single class or (ii) representing at least 50% of the equity value of
the Company as reasonably determined by the Board; 
 
(3) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of such Board; provided, however, that any individual who
becomes a director of the Company subsequent to the date hereof whose election, or nomination for election by the holders of the Company’s equity, was approved by the vote of at least a majority of the directors then comprising the Incumbent
Board shall be deemed to have been a member of the Incumbent Board; and provided further, that no individual who was initially elected as a director of the Company as a result of an actual or threatened solicitation by any individual, entity or
group (a “Person”) other than the Board, including any “person” within the meaning of Section 13(d) of the Exchange Act, for the purpose of opposing a solicitation by any other Person with respect to the election or
removal of directors, or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall be deemed to have been a member of the Incumbent Board; or 
 
(4) any Person other than KPMG LLP or its affiliates, acquires
beneficial ownership of 30% or more of the outstanding equity of the Company generally entitled to vote on the election of directors. 
 
7.9 No Right of Participation or Employment. No person shall have any right to participate in this Plan. Neither this Plan
nor any award made hereunder shall confer upon any person any right to continued employment by the Company or any Affiliate of the Company or affect in any manner the right of the Company or any Affiliate of the Company to terminate the employment
of any person at any time without liability hereunder. 
 
7.10 Rights as Stockholder. No person shall have any right as a stockholder of the Company with respect to any shares of Common Stock or other equity security of the Company which is subject to an award hereunder unless
and until such person becomes a stockholder of record with respect to such shares of Common Stock or equity security. 
 
7.11 Designation of Beneficiary. If permitted by the Company, a holder of an award may file with the Committee a written
designation of one or more persons as such holder’s beneficiary or beneficiaries (both primary and contingent) in the event of the holder’s death. To the extent an outstanding option or SAR granted hereunder is exercisable, such
beneficiary or beneficiaries shall be entitled to exercise such option or SAR. Each beneficiary designation shall become effective only when filed in writing with the Committee during the holder’s lifetime on a form prescribed by the Committee.
The spouse of a married holder domiciled in a community property jurisdiction shall join in any designation of a beneficiary other than such spouse. The filing with the Committee of a new beneficiary designation shall cancel all previously filed
beneficiary designations. If a holder fails to designate a beneficiary, or if all designated beneficiaries of a holder predecease the holder, then each outstanding option and SAR hereunder held by such holder, to the extent exercisable, may be
exercised by such holder’s executor, administrator, legal representative or similar person. 
 
7.12 Governing Law. This Plan, each award hereunder and the related Agreement, and all determinations made and actions taken pursuant thereto, to the extent not otherwise 
 

17 

governed by the Code or the laws of the United States, shall be governed by the laws of the State of
Delaware and construed in accordance therewith without giving effect to principles of conflicts of laws. 
 
7.13 Granting Awards to Foreign Persons. Without the amendment of this Plan, the Committee may grant awards to persons
designated by the Committee from time to time, who otherwise are eligible persons under Section 1.4 and who are subject to the laws of foreign countries or jurisdictions. The Committee may grant awards to such persons on such terms and conditions
different from those specified in this Plan as may in the judgment of the Committee be necessary or desirable to foster and promote achievement of the purposes of this Plan and, in furtherance of such purposes, the Committee may make such
modifications, amendments, procedures, subplans and the like as may be necessary or advisable to comply with provisions of the laws of other countries or jurisdictions in which the Company or its Affiliates operate or have employees or other persons
who are eligible persons under Section 1.4. 
 
7.14 Additional Provisions Applicable to Options Granted Prior to IPO. In order to comply with certain requirements of the California Corporate Securities Law of 1968, as amended, this Section shall apply to options
granted under this Plan prior to an IPO (a “Pre-IPO Option”). The terms set forth in the Agreements pursuant to which Pre-IPO Options are granted on January 31, 2000 (the “January 31, 2000 Options”) relating to (i) the period
during which an option may be exercised, (ii) the exercise, cancellation or other disposition of an option upon a termination of employment with the Company of the recipient of such option, whether by reason of Disability, Retirement, death or any
other reason, (iii) restrictions on the transferability of an option and (iv) the providing of annual financial statements to the holder of an option are hereby incorporated into this Plan by reference as if set forth herein verbatim and shall apply
in all respects only to all Pre-IPO Options granted to eligible persons; provided, however, that Pre-IPO Options may be granted under this Plan having exercise periods different from those of the January 31, 2000 Options so long as each such Pre-IPO
Option becomes exercisable at a rate of at least 20% per year during the five-year period commencing on the date of grant of such Pre-IPO Option. 
 

18EMPLOYEE STOCK PURCHASE PLAN

Exhibit 10.1 
 
LIONBRIDGE TECHNOLOGIES, INC. 
 
1999 EMPLOYEE STOCK PURCHASE PLAN 
(as amended on April 7, 2003) 
 
Article 1—Purpose. 
 
This 1999 Employee Stock Purchase Plan (the “Plan”) is intended to encourage stock ownership by all eligible employees of Lionbridge Technologies, Inc. (the “Company”), a Delaware
corporation, and its participating subsidiaries (as defined in Article 17) so that they may share in the growth of the Company by acquiring or increasing their proprietary interest in the Company. The Plan is designed to encourage eligible employees
to remain in the employ of the Company and its participating subsidiaries. The Plan is intended to constitute an “employee stock purchase plan” within the meaning of Section 423(b) of the Internal Revenue Code of 1986, as amended (the
“Code”). 
 
Article 2—Administration of the
Plan. 
 
The Plan may be administered by a
committee appointed by the Board of Directors of the Company (the “Committee”). The Committee shall consist of not less than two members of the Company’s Board of Directors. The Board of Directors may from time to time remove members
from, or add members to, the Committee. Vacancies on the Committee, however caused, shall be filled by the Board of Directors. The Committee may select one of its members as Chairman, and shall hold meetings at such times and places as it may
determine. Acts by a majority of the Committee, or acts reduced to or approved in writing by a majority of the members of the Committee, shall be the valid acts of the Committee. 
 
The interpretation and construction by the Committee of any provisions of the Plan or of any option granted
under it shall be final, unless otherwise determined by the Board of Directors. The Committee may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best, provided that any such rules and regulations shall be
applied on a uniform basis to all employees under the Plan. No member of the Board of Directors or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any option granted under it.

 
In the event the Board of Directors fails to
appoint or refrains from appointing a Committee, the Board of Directors shall have all power and authority to administer the Plan. In such event, the word “Committee” wherever used herein shall be deemed to mean the Board of Directors.

 
Article 3—Eligible Employees. 
 
All employees of the Company or any of its participating
subsidiaries whose customary employment is more than 20 hours per week and for more than three months in any calendar year shall be eligible to receive options under the Plan to purchase common stock of the Company, 

and all eligible employees shall have the same rights and privileges hereunder. Persons who are eligible employees on the first business day
of any Payment Period (as defined in Article 5) shall receive their options as of such day. Persons who become eligible employees after any date on which options are granted under the Plan shall be granted options on the first day of the next
succeeding Payment Period on which options are granted to eligible employees under the Plan. In no event, however, may an employee be granted an option if such employee, immediately after the option was granted, would be treated as owning stock
possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or of any parent corporation or subsidiary corporation, as the terms “parent corporation” and “subsidiary
corporation” are defined in Section 424(e) and (f) of the Code. For purposes of determining stock ownership under this paragraph, the rules of Section 424(d) of the Code shall apply, and stock which the employee may purchase under outstanding
options shall be treated as stock owned by the employee. 
 
Article 4—Stock Subject to the Plan. 
 
The stock subject to the options under the Plan shall be shares of the Company’s authorized but unissued common stock, par value $.01 per share (the “Common Stock”), or shares of Common Stock reacquired by the
Company, including shares purchased in the open market. The aggregate number of shares which may be issued pursuant to the Plan is 1,000,000, subject to adjustment as provided in Article 12. If any option granted under the Plan shall expire or
terminate for any reason without having been exercised in full or shall cease for any reason to be exercisable in whole or in part, the unpurchased shares subject thereto shall again be available under the Plan. 
 
Article 5—Payment Period and Stock Options. 
 
The first Payment Period during which payroll deductions will
be accumulated under the Plan shall commence on the later to occur of November 1, 1999 and the first day of the first calendar month following effectiveness of the Form S-8 registration statement filed with the Securities and Exchange Commission
covering the shares to be issued pursuant to the Plan and shall end on April 30, 2000. From May 1, 2000 through April 30, 2003, Payment Periods shall consist of the six-month periods commencing on May 1 and November 1 and ending on the following
October 31 and April 30, respectively, of each calendar year. From May 1, 2003 through the remainder of the duration of the Plan, Payment Periods shall consist of the six-month periods commencing on June 1 and December 1, respectively, of each
calendar year and ending on the following November 30 and May 31, respectively of each calendar year. 
 
Twice each year, on the first business day of each Payment Period, the Company will grant to each eligible employee who is then a
participant in the Plan an option to purchase on the last day of such Payment Period, at the Option Price hereinafter provided for, a maximum of 500 shares, on condition that such employee remains eligible to participate in the Plan throughout the
remainder of such Payment Period. The participant shall be entitled to exercise the option so granted only to the extent of the participant’s accumulated payroll deductions on the last day of such Payment Period. If the participant’s
accumulated payroll deductions on the last day of the 

 

2 

Payment Period would enable the participant to purchase more than 500 shares except for the 500-share limitation, the excess of the amount of
the accumulated payroll deductions over the aggregate purchase price of the 500 shares shall be promptly refunded to the participant by the Company, without interest. The Option Price per share for each Payment Period shall be the lesser of (i) 85%
of the average market price of the Common Stock on the first business day of the Payment Period and (ii) 85% of the average market price of the Common Stock on the last business day of the Payment Period, in either event rounded up to the nearest
cent. The foregoing limitation on the number of shares subject to option and the Option Price shall be subject to adjustment as provided in Article 12. 
 
For purposes of the Plan, the term “average market price” on any date means (i) the average (on that date) of the high and low
prices of the Common Stock on the principal national securities exchange on which the Common Stock is traded, if the Common Stock is then traded on a national securities exchange; or (ii) the last reported sale price (on that date) of the Common
Stock on the Nasdaq National Market, if the Common Stock is not then traded on a national securities exchange; or (iii) the average of the closing bid and asked prices last quoted (on that date) by an established quotation service for
over-the-counter securities, if the Common Stock is not reported on the Nasdaq National Market; or (iv) if the Common Stock is not publicly traded, the fair market value of the Common Stock as determined by the Committee after taking into
consideration all factors which it deems appropriate, including, without limitation, recent sale and offer prices of the Common Stock in private transactions negotiated at arm’s length. 
 
For purposes of the Plan, the term “business day”
means a day on which there is trading on the Nasdaq National Market or the aforementioned national securities exchange, whichever is applicable pursuant to the preceding paragraph; and if neither is applicable, a day that is not a Saturday, Sunday
or legal holiday in Massachusetts. 
 
No employee
shall be granted an option which permits the employee’s right to purchase stock under the Plan, and under all other Section 423(b) employee stock purchase plans of the Company and any parent or subsidiary corporations, to accrue at a rate which
exceeds $25,000 of fair market value of such stock (determined on the date or dates that options on such stock were granted) for each calendar year in which such option is outstanding at any time. The purpose of the limitation in the preceding
sentence is to comply with Section 423(b)(8) of the Code. If the participant’s accumulated payroll deductions on the last day of the Payment Period would otherwise enable the participant to purchase Common Stock in excess of the Section
423(b)(8) limitation described in this paragraph, the excess of the amount of the accumulated payroll deductions over the aggregate purchase price of the shares actually purchased shall be promptly refunded to the participant by the Company, without
interest. 
 
Article 6—Exercise of Option.

 
Each eligible employee who continues to be
a participant in the Plan on the last day of a Payment Period shall be deemed to have exercised his or her option on such date and shall be deemed to have purchased from the Company such number of full shares of Common Stock reserved for the purpose
of the Plan as the participant’s accumulated payroll deductions on such 

 

3 

date will pay for at the Option Price, subject to the 500-share limit of the option and the Section 423(b)(8) limitation described in Article
5. If the individual is not a participant on the last day of a Payment Period, the he or she shall not be entitled to exercise his or her option. Only full shares of Common Stock may be purchased under the Plan. Unused payroll deductions remaining
in a participant’s account at the end of a Payment Period by reason of the inability to purchase a fractional share shall be carried forward to the next Payment Period. 
 
Article 7—Authorization for Entering the Plan. 
 
An employee may elect to enter the Plan by filling out,
signing and delivering to the Company an authorization: 
 
A. Stating the percentage to be deducted regularly from the employee’s pay; 
 
B. Authorizing the purchase of stock for the employee in each Payment Period in accordance with the terms of the Plan; and

 
C. Specifying the exact name or
names in which stock purchased for the employee is to be issued as provided under Article 11 hereof. 
 
Such authorization must be received by the Company at least ten days before the first day of the next succeeding Payment Period and shall take effect only if the employee is an eligible employee on the
first business day of such Payment Period. 
 
Unless a participant files a new authorization or withdraws from the Plan, the deductions and purchases under the authorization the participant has on file under the Plan will continue from one Payment Period to succeeding Payment
Periods as long as the Plan remains in effect. 
 
The Company will accumulate and hold for each participant’s account the amounts deducted from his or her pay. No interest will be paid on these amounts. 
 
Article 8—Maximum Amount of Payroll Deductions. 
 
An employee may authorize payroll deductions in an amount
(expressed as a whole percentage) not less than one percent (1%) but not more than ten percent (10%) of the employee’s total compensation, including base pay or salary and any overtime, bonuses or commissions. 
 
Article 9—Change in Payroll Deductions. 
 
Deductions may not be increased or decreased during a Payment
Period. However, a participant may withdraw in full from the Plan. 
 
Article 10—Withdrawal from the Plan. 
 

4 

 
A participant
may withdraw from the Plan (in whole but not in part) at any time prior to the last day of a Payment Period by delivering a withdrawal notice to the Company. 
 
To re-enter the Plan, an employee who has previously withdrawn must file a new authorization at least ten days before the first day of the
next Payment Period in which he or she wishes to participate. The employee’s re-entry into the Plan becomes effective at the beginning of such Payment Period, provided that he or she is an eligible employee on the first business day of the
Payment Period. 
 
Article 11—Issuance of Stock.

 
Certificates for stock issued to
participants shall be delivered as soon as practicable after each Payment Period by the Company’s transfer agent. 
 
Stock purchased under the Plan shall be issued only in the name of the participant, or if the participant’s authorization so
specifies, in the name of the participant and another person of legal age as joint tenants with rights of survivorship. 
 
Article 12—Adjustments. 
 
Upon the happening of any of the following described events, a participant’s rights under options granted under the Plan shall be
adjusted as hereinafter provided: 
 
A. In the event that the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if, upon a reorganization, split-up, liquidation, recapitalization or the like of the Company, the shares
of Common Stock shall be exchanged for other securities of the Company, each participant shall be entitled, subject to the conditions herein stated, to purchase such number of shares of Common Stock or amount of other securities of the Company as
were exchangeable for the number of shares of Common Stock that such participant would have been entitled to purchase except for such action, and appropriate adjustments shall be made in the purchase price per share to reflect such subdivision,
combination or exchange; and 
 
B.
In the event the Company shall issue any of its shares as a stock dividend upon or with respect to the shares of stock of the class which shall at the time be subject to option hereunder, each participant upon exercising such an option shall be
entitled to receive (for the purchase price paid upon such exercise) the shares as to which the participant is exercising his or her option and, in addition thereto (at no additional cost), such number of shares of the class or classes in which such
stock dividend or dividends were declared or paid, and such amount of cash in lieu of fractional shares, as is equal to the number of shares thereof and the amount of cash in lieu of fractional shares, respectively, which the participant would have
received if the participant had been the holder of the shares as to which the participant is exercising his or her option at all times between the date of the granting of such option and the date of its exercise. 
 

5 

 
Upon the
happening of any of the foregoing events, the class and aggregate number of shares set forth in Article 4 hereof which are subject to options which have been or may be granted under the Plan and the limitations set forth in the second paragraph of
Article 5 shall also be appropriately adjusted to reflect the events specified in paragraphs A and B above. Notwithstanding the foregoing, any adjustments made pursuant to paragraphs A or B shall be made only after the Committee, based on advice of
counsel for the Company, determines whether such adjustments would constitute a “modification” (as that term is defined in Section 424 of the Code). If the Committee determines that such adjustments would constitute a modification, it may
refrain from making such adjustments. 
 
If the
Company is to be consolidated with or acquired by another entity in a merger, a sale of all or substantially all of the Company’s assets or otherwise (an “Acquisition”), the Committee or the board of directors of any entity assuming
the obligations of the Company hereunder (the “Successor Board”) shall, with respect to options then outstanding under the Plan, either (i) make appropriate provision for the continuation of such options by arranging for the substitution
on an equitable basis for the shares then subject to such options either (a) the consideration payable with respect to the outstanding shares of the Common Stock in connection with the Acquisition, (b) shares of stock of the successor corporation,
or a parent or subsidiary of such corporation, or (c) such other securities as the Successor Board deems appropriate, the fair market value of which shall not materially exceed the fair market value of the shares of Common Stock subject to such
options immediately preceding the Acquisition; or (ii) terminate each participant’s options in exchange for a cash payment equal to the excess of (a) the fair market value on the date of the Acquisition, of the number of shares of Common Stock
that the participant’s accumulated payroll deductions as of the date of the Acquisition could purchase, at an option price determined with reference only to the first business day of the applicable Payment Period and subject to the 500-share,
Code Section 423(b)(8) and fractional-share limitations on the amount of stock a participant would be entitled to purchase, over (b) the result of multiplying such number of shares by such option price. 
 
The Committee or Successor Board shall determine the
adjustments to be made under this Article 12, and its determination shall be conclusive. 
 
Article 13—No Transfer or Assignment of Employee’s Rights. 
 
An option granted under the Plan may not be transferred or assigned and may be exercised only by the participant. 
 
Article 14—Termination of Employee’s Rights.

 
Whenever a participant ceases to be an
eligible employee because of retirement, voluntary or involuntary termination, resignation, layoff, discharge, death or for any other reason, his or her rights under the Plan shall immediately terminate, and the Company shall promptly refund,
without interest, the entire balance of his or her payroll deduction account under the Plan. Notwithstanding the foregoing, eligible employment shall be treated as continuing intact while a participant is on military leave, sick leave or other bona
fide leave of absence, for up to 90 days, 

 

6 

or for so long as the participant’s right to re-employment is guaranteed either by statute or by contract, if longer than 90 days.

 
Article 15—Termination and Amendments to Plan.

 
The Plan may be terminated at any time by
the Company’s Board of Directors but such termination shall not affect options then outstanding under the Plan. It will terminate in any case when all or substantially all of the unissued shares of stock reserved for the purposes of the Plan
have been purchased. If at any time shares of stock reserved for the purpose of the Plan remain available for purchase but not in sufficient number to satisfy all then unfilled purchase requirements, the available shares shall be apportioned among
participants in proportion to the amount of payroll deductions accumulated on behalf of each participant that would otherwise be used to purchase stock, and the Plan shall terminate. Upon such termination or any other termination of the Plan, all
payroll deductions not used to purchase stock will be refunded, without interest. 
 
The Committee or the Board of Directors may from time to time adopt amendments to the Plan provided that, without the approval of the stockholders of the Company, no amendment may (i) increase the
number of shares that may be issued under the Plan; (ii) change the class of employees eligible to receive options under the Plan, if such action would be treated as the adoption of a new plan for purposes of Section 423(b) of the Code; or (iii)
cause Rule 16b-3 under the Securities Exchange Act of 1934 to become inapplicable to the Plan. 
 
Article 16—Limits on Sale of Stock Purchased under the Plan. 
 
The Plan is intended to provide shares of Common Stock for investment and not for resale. The Company does not, however, intend to
restrict or influence any employee in the conduct of his or her own affairs. An employee may, therefore, sell stock purchased under the Plan at any time the employee chooses, subject to compliance with any applicable federal or state securities laws
and subject to any restrictions imposed under Article 21 to ensure that tax withholding obligations are satisfied. THE EMPLOYEE ASSUMES THE RISK OF ANY MARKET FLUCTUATIONS IN THE PRICE OF THE STOCK. 
 
Article 17—Participating Subsidiaries. 
 
The term “participating subsidiary” shall mean any
present or future subsidiary of the Company, as that term is defined in Section 424(f) of the Code, which is designated from time to time by the Board of Directors to participate in the Plan. The Board of Directors shall have the power to make such
designation before or after the Plan is approved by the stockholders. 
 
Article 18—Optionees Not Stockholders. 
 
Neither the granting of an option to an employee nor the deductions from his or her pay shall constitute such employee a stockholder of the shares covered by an option until such shares have been
actually purchased by the employee. 
 

7 

 
Article
19—Application of Funds. 
 
The
proceeds received by the Company from the sale of Common Stock pursuant to options granted under the Plan will be used for general corporate purposes. 
 
Article 20—Notice to Company of Disqualifying Disposition. 
 
By electing to participate in the Plan, each participant agrees to notify the Company in writing immediately
after the participant transfers Common Stock acquired under the Plan, if such transfer occurs within two years after the first business day of the Payment Period in which such Common Stock was acquired. Each participant further agrees to provide any
information about such a transfer as may be requested by the Company or any subsidiary corporation in order to assist it in complying with the tax laws. Such dispositions generally are treated as “disqualifying dispositions” under Sections
421 and 424 of the Code, which have certain tax consequences to participants and to the Company and its participating subsidiaries. 
 
Article 21—Withholding of Additional Income Taxes. 
 
By electing to participate in the Plan, each participant acknowledges that the Company and its participating
subsidiaries are required to withhold taxes with respect to the amounts deducted from the participant’s compensation and accumulated for the benefit of the participant under the Plan, and each participant agrees that the Company and its
participating subsidiaries may deduct additional amounts from the participant’s compensation, when amounts are added to the participant’s account, used to purchase Common Stock or refunded, in order to satisfy such withholding obligations.
Each participant further acknowledges that when Common Stock is purchased under the Plan the Company and its participating subsidiaries may be required to withhold taxes with respect to all or a portion of the difference between the fair market
value of the Common Stock purchased and its purchase price, and each participant agrees that such taxes may be withheld from compensation otherwise payable to such participant. It is intended that tax withholding will be accomplished in such a
manner that the full amount of payroll deductions elected by the participant under Article 7 will be used to purchase Common Stock. However, if amounts sufficient to satisfy applicable tax withholding obligations have not been withheld from
compensation otherwise payable to any participant, then, notwithstanding any other provision of the Plan, the Company may withhold such taxes from the participant’s accumulated payroll deductions and apply the net amount to the purchase of
Common Stock, unless the participant pays to the Company, prior to the exercise date, an amount sufficient to satisfy such withholding obligations. Each participant further acknowledges that the Company and its participating subsidiaries may be
required to withhold taxes in connection with the disposition of stock acquired under the Plan and agrees that the Company or any participating subsidiary may take whatever action it considers appropriate to satisfy such withholding requirements,
including deducting from compensation otherwise payable to such participant an amount sufficient to satisfy such withholding requirements or conditioning any disposition of Common Stock by the participant upon the payment to the Company or such
subsidiary of an amount sufficient to satisfy such withholding requirements. 
 

8 

 
Article
22—Governmental Regulations. 
 
The
Company’s obligation to sell and deliver shares of Common Stock under the Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance or sale of such shares. 
 
Government regulations may impose reporting or other
obligations on the Company with respect to the Plan. For example, the Company may be required to identify shares of Common Stock issued under the Plan on its stock ownership records and send tax information statements to employees and former
employees who transfer title to such shares. 
 
Article
23—Governing Law. 
 
The validity and
construction of the Plan shall be governed by the laws of Delaware, without giving effect to the principles of conflicts of law thereof. 
 
Article 24—Approval of Board of Directors and Stockholders of the Company. 
 
The Plan was adopted by the Board of Directors on June 15,
1999 and was approved by the stockholders of the Company on June 15, 1999. 
 

9

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