Document:

exv10w46

 

Exhibit 10.46

ACTIVANT SOLUTIONS HOLDINGS, INC.

SECOND AMENDED AND RESTATED

2000 STOCK OPTION PLAN

FOR KEY EMPLOYEES

(amended December 15, 2004)

1. PURPOSE

     Activant Solutions Holdings Inc., a Delaware corporation (herein, together
with its successors, referred to as the “COMPANY”), by means of this 2000 Stock
Option Plan for Key Employees (the “PLAN”), desires to afford certain key
employees of, and Certain persons performing services for, the Company and any
direct or indirect subsidiary or parent corporation thereof now existing or
hereafter formed or acquired (such corporations sometimes referred to herein as
“RELATED ENTITIES”) who are responsible for the continued growth of the Company
an opportunity to acquire a proprietary interest in the Company, and thus to
create in such persons an increased interest in and a greater concern for the
welfare of the Company and any Related Entities. Certain definitions used
herein are defined in Section 20 of this Plan.

     The stock options described in Sections 6 and 7 (the “OPTIONS”), and the
shares of Common Stock (as hereinafter defined) acquired pursuant to the
exercise of such Options, are a matter of separate inducement and are not in
lieu of any salary or other compensation for services. As used in the Plan,
the terms “parent corporation” and “subsidiary corporation” shall have the
meanings contained in Sections 424 (e) and 424 (f) , respectively, of the
Internal Revenue Code of 1986, as amended (the “CODE”)

2. ADMINISTRATION

     The Plan shall be administered by the Option Committee, or any successor
thereto, of the Board of Directors of the Company (the “BOARD OF DIRECTORS”) ,
or by any other committee appointed by the Board of Directors to administer the
Plan (the “COMMITTEE”); Provided, that the entire Board of Directors may act as
the Committee if it chooses to do so; and PROVIDED, FURTHER, that (i) for
purposes of determining any Performance-Based Options (as hereinafter defined)
applicable to Key Employees (as hereinafter defined) who constitute “covered
employees” within the meaning of Section 162(m) of the Code, “Committee” shall
mean the members of the Option Committee of the Board of Directors who qualify
as “outside directors” within the meaning of Section 162(m) of the Code, and
such Performance—Based Options shall be subject to ratification by unanimous
approval of the members of the Board of Directors, and (ii) for so long as the
Company is subject to the reporting requirements of the Securities Exchange Act
of 1934, as amended (the “EXCHANGE ACT”), the Committee shall be composed
solely of two or more “Non-Employee Directors” as defined in Rule l6b-3, as
amended (“RULE 16B-3”), promulgated thereunder; PROVIDED, that, alternatively,
for purposes of granting options other than Performance-Based Options
hereunder, the Board of Directors may authorize such grants and may take any
other action permitted pursuant to Section 162(m) of the Code, Rule 16b—3 and
applicable law and regulations.

 

 

     The number of individuals that shall constitute the Committee shall be
determined from time to time by a majority of all the members of the Board of
Directors, and, unless that majority of the Board of Directors determines
otherwise, shall be no less than two individuals. A majority of the Committee
shall constitute a quorum (or if the Committee consists of only two members,
then both members shall constitute a quorum) , and subject to the provisions of
Section 5, the acts of a majority of the members present at any meeting at
which a quorum is present, or acts approved in writing by all members of the
Committee, shall be the acts of the Committee. Whenever the Company shall have
a class of equity securities registered pursuant to Section 12 of the Exchange
Act, the Committee shall administer the Plan so as (i) to comply at all times
with the Exchange Act, and (ii) to ensure that compensation attributable to
Options granted under the Plan to Key Employees who constitute “covered
employees” within the meaning of Section 162(m) of the Code shall (A) meet the
deduction limitation imposed by Section 162(m) of the Code, or (B) qualify as
“performance-based compensation” as such term is used in Section 162 (m) of the
Code and the regulations promulgated thereunder and thus be exempt from the
deduction limitation imposed by Section 162(m) of the Code.

     The members of the Committee shall serve at the pleasure of the Board of
Directors, which shall have the power, at any time and from time to time, to
remove members from or add members to the Committee. Removal from the
Committee may be with or without cause. Any individual serving as a member of
the Committee shall have the right to resign from membership on the Committee
by written notice to the Board of Directors. The Board of Directors, and not
the remaining members of the Committee, shall have the power and authority to
fill vacancies on the Committee, however caused. The Board of Directors shall
promptly fill any vacancy that causes the number of members of the Committee to
be less than two or, if the Company has a class of equity securities registered
pursuant to Section 12 of the Exchange Act, any other number that Rule 16b-3 or
other applicable rules under Section 16(b) of the Exchange Act, Section 162(m)
of the Code, or any successor or analogous rules or laws may require from time
to time.

3. SHARES AVAILABLE AND MAXIMUM INDIVIDUAL GRANTS

     Subject to the adjustments provided in Section 12, the maximum aggregate
number of shares of common stock, par value $0.01 per share, of the Company
(“COMMON STOCK”) in respect of which Options may be granted for all purposes
under the Plan shall be 10,000,000 shares. If, for any reason, any shares as
to which Options have been granted cease to be subject to purchase thereunder,
including the expiration of any such Option, the termination of any such Option
prior to exercise, or the forfeiture of any such Option, such shares shall
thereafter be available for grants under the Plan. Options granted under the
Plan may be fulfilled in accordance with the terms of the Plan with (i)
authorized and unissued shares of the Common Stock, or (ii) issued shares of
such Common Stock held in the Company’s treasury.

     The maximum aggregate number of shares of Common Stock underlying all
Options that may be granted to any single Key Employee, including any Options
that may have been granted to such Key Employee as an Eligible Non-Employee (as
hereinafter defined), during the Term (as hereinafter defined) of the Plan
shall be 800,000 shares, subject to the adjustments provided in Section 12;
provided, however, that the foregoing limitation shall not apply to the Options
issued to A. Lawrence Jones pursuant to his Option Agreement with the Company
dated December    , 2004. For purposes of the preceding sentence, such Options
that are cancelled or repriced shall continue to be counted in determining such
maximum aggregate number of shares of Common Stock that may be granted to any
single Key Employee, including any Options that may have been granted to such
Key Employee as an Eligible Non-Employee, during the Term of the Plan.

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4. ELIGIBILITY AND BASES OF PARTICIPATION

     Grants of Incentive Options (as hereinafter defined) and Non-Qualified
Options (as hereinafter defined) may be made under the Plan, subject to and in
accordance with Section 6, to Key Employees. As used herein, the term “KEY
EMPLOYEE” shall mean any employee of the Company or any Related Entity,
including officers and directors of the Company or any Related Entity who are
also employees of the Company or any Related Entity, who are regularly employed
on a salaried basis and who are so employed on the date of such grant, whom the
Committee identifies as having a direct and significant effect on the
performance of the Company or any Related Entity.

     Grants of Non-Qualified Options may be made, subject to and in accordance
with Section 7, to any Eligible Non-Employee. As used herein, the term
“ELIGIBLE NON-EMPLOYEE” shall mean any person or entity of any nature
whatsoever, specifically including an individual, a firm, a company, a
corporation, a partnership, a trust, or other entity (collectively, a “PERSON”)
that the Committee designates as eligible for a grant of Options pursuant to
the Plan because such Person performs bona fide consulting, advisory, or other
services for the Company or any Related Entity (other than services in
connection with the offer or sale of securities in a capital-raising
transaction) and the Board of Directors or the Committee determines that the
Person has a direct and significant effect on the performance of the Company or
any Related Entity.

     The adoption of the Plan shall not be deemed to give any Person a right to
be granted any Options.

5. AUTHORITY OF COMMITTEE

     Subject to and not inconsistent with the express provisions of the Plan,
the Code and, if applicable, Rule 16b-3 and Section 162(m) of the Code, the
Committee shall have plenary authority to:

	a.	 	determine the Key Employees and Eligible Non-Employees to
whom Options shall be granted, the time when such Options shall be
granted, the number of Options, the purchase price or exercise price
of each Option, the period(s) during which such Options shall be
exercisable (whether in whole or in part, including whether such
Options shall become immediately exercisable upon the consummation
of a Change of Control) , the restrictions to be applicable to
Options and all other terms and provisions thereof (which need not
be identical);
	 
	b.	 	require, as a condition to the granting of any Option, that
the Person receiving such Option agree not to sell or otherwise
dispose of such Option, any Common Stock acquired pursuant to such
Option, or any other “derivative security” (as defined by Rule
16a-1(c) under the Exchange Act) of the Company for a period of six
months following the later of (i) the date of the grant of such
Option or (ii) the date when the exercise price of such Option is
fixed if such exercise price is not fixed at the date of grant of
such Option, or for such other period as the Committee may
determine;
	 
	c.	 	provide an arrangement through registered broker-dealers
whereby temporary financing may be made available to an optionee by
the broker-dealer, under the rules and regulations of the Board of
Governors of the Federal Reserve, for the

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	 	 	purpose of assisting the optionee in the exercise of an Option,
such authority to include the payment by the Company of the
commissions of the broker-dealer; PROVIDED, HOWEVER, that such
financing does not cause the Company to recognize compensation, or
additional compensation expense, with respect to such Option for
financial reporting purposes;
	 
	d.	 	provide the establishment of procedures for an optionee (i)
to have withheld from the total number of shares of Common Stock to
be acquired upon the exercise of an Option that number of shares
having a Fair Market Value which, together with such cash as shall
be paid in respect of fractional shares, shall equal the aggregate
exercise price under such Option for the number of shares then being
acquired (including the shares to be so withheld), and (ii) to
exercise a portion of an Option by delivering that number of shares
of Common Stock already owned by such optionee having an aggregate
Fair Market Value which shall equal the partial Option exercise
price and to deliver the shares thus acquired by such optionee in
payment of shares to be received pursuant to the exercise of
additional portions of such Option, the effect of which shall be
that such optionee can in sequence utilize such newly acquired
 shares in payment of the exercise price of the entire Option,
together with such cash as shall be paid in respect of fractional
  PROVIDED, HOWEVER, that in the case of an Incentive Option,
no shares shall be used to pay the exercise price under this
paragraph unless (A) such shares were not acquired through the
exercise of an Incentive Option, or (B) if so acquired, (x) such
 shares have been held for more than two years since the grant of
such Incentive Option and for more than one year since the exercise
of such Incentive Option (the “HOLDING PERIOD”) , or (y) if such
 shares do not meet the Holding Period, the optionee elects in
writing to use such shares to pay the exercise price under this
paragraph;
	 
	e.	 	provide that all or a portion of the exercise price of the
Options may be paid with a full recourse promissory note, with such
terms as the Committee may prescribe (except as provided below);
PROVIDED, HOWEVER, that the term of such promissory note shall not
extend beyond the period(s) during which such Options shall be
exercisable; the shares of Common Stock issuable upon exercise of
such Options shall be pledged as security for the payment of the
principal amount of the promissory note and interest thereon; and
the interest rate payable under the promissory note shall be fixed,
non-refundable, nonprepayable and shall not be less than the minimum
rate required under the Code;
	 
	f.	 	provide for (in accordance with Section 15 or otherwise) the
establishment of a procedure whereby a number of shares of Common
Stock or other securities may be withheld from the total number of
shares of Common Stock or other securities to be issued upon
exercise of an Option to meet the obligation of withholding for
income, social security and other taxes incurred by an optionee upon
such exercise or required to be withheld by the Company or a Related
Entity in connection with such exercise unless, as determined by the
Committee in the exercise of its discretion, such procedure is not
permitted by applicable law;
	 
	g.	 	prescribe, amend, modify and rescind rules and regulations
relating to the Plan; and

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	h.	 	make all determinations permitted or deemed necessary,
appropriate or advisable for the administration of the Plan,
interpret any Plan or Option provision, perform all other acts,
exercise all other powers, and establish any other procedures
determined by the Committee to be necessary, appropriate, or
advisable in administering the Plan or for the conduct of the
Committee’s business. Any act of the Committee, including
interpretations of the provisions of the Plan or any Option and
determinations under the Plan or any Option, made in good faith,
shall be final, conclusive and binding on all parties.

     The Committee may delegate to one or more of its members, or to one or
more agents, such administrative duties as it may deem advisable, and the
Committee or any Person to whom it has delegated duties as aforesaid may employ
one or more Persons to render advice with respect to any responsibility the
Committee or such Person may have under the Plan; PROVIDED, HOWEVER, that any
such delegation shall be in writing; and PROVIDED, HOWEVER, that, any
determination of Performance-Based Options applicable to Key Employees who
constitute “covered employees” within the meaning of Section 162(m) of the Code
may not be delegated to a member of the Board of Directors who, if elected to
serve on the Committee, would not qualify as an “outside director” within the
meaning of Section 162(m) of the Code. The Committee may employ attorneys,
consultants, accountants, or other Persons and the Committee, the Company, and
its officers and directors shall be entitled to rely upon the advice, opinions,
or valuations of any such Persons. No member or agent of the Committee shall
be personally liable for any action, determination or interpretation made in
good faith with respect to the Plan and all members and agents of the Committee
shall be fully protected by the Company in respect of any such action,
determination or interpretation.

6. STOCK OPTION GRANTS TO KEY EMPLOYEES

     Subject to the express provisions of the Plan, the Committee shall have
the authority to grant incentive stock options pursuant to Section 422 of the
Code (“INCENTIVE OPTIONS”), to grant non-qualified stock options (options which
do not qualify under Section 422 of the Code) (“NON-QUALIFIED OPTIONS”), and to
grant both types of Options to Key Employees. No Incentive Option shall be
granted pursuant to the Plan after the earlier of ten years from the date of
adoption of the Plan or ten years from the date of approval of the Plan by the
shareholders of the Company. Incentive Options may be granted only to Key
Employees. The terms and conditions of the Options granted under this Section
6 shall be determined from time to time by the Committee; PROVIDED, HOWEVER,
that the Options granted under this Section 6 shall be subject to all terms and
provisions of the Plan (other than Section 7), including the following:

	a.	 	OPTION EXERCISE PRICE. Subject to Section 4, the Committee
shall establish the Option exercise price at the time any Option is
granted to a Key Employee at such amount as the Committee shall
determine; PROVIDED, that, in the case of an Incentive Option, such
price shall not be less than the Fair Market Value per share of
Common Stock at the date the Option is granted; and PROVIDED,
FURTHER, that in the case of an Incentive Option granted to a person
who, at the time such Incentive Option is granted, owns shares of
the Company or any Related Entity which possess more than 10% of the
total combined voting power of all classes of shares of the Company
or of any Related Entity, the option exercise price shall not be
less than 110% of the Fair Market Value per share of Common Stock at
the date the Option is granted. The Option

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	 	 	exercise price shall be subject to adjustment in accordance with
the provisions of Section 12 of the Plan.
	 
	b.	 	PAYMENT. The price per share of Common Stock with respect to
each Option exercise by a Key Employee shall be payable at the time
of such exercise. Such price shall be payable in cash or by any
other means acceptable to the Committee, including by the delivery
to the Company of shares of Common Stock owned by the optionee or by
the delivery or withholding of shares pursuant to a procedure
created pursuant to subsection 5(d) of the Plan (but, with respect
to Incentive Options, subject to the limitations described in such
subsection 5(d)). Shares delivered to or withheld by the Company in
payment of the Option exercise price shall be valued at the Fair
Market Value of the Common Stock on the day preceding the date of
the exercise of the Option.
	 
	c.	 	EXERCISABILITY OF STOCK OPTION. Unless otherwise determined
by the Committee at the time of grant, and subject to the provisions
of subsections 6(d), (e), (f), (g) and (i) below, stock options
granted to Key Employees hereunder shall vest and become exercisable
according to the vesting schedule set forth below:
	 
	 	 	one-fifth of the shares of Common Stock underlying the stock
option grant shall vest and become exercisable on the first
anniversary of the date of grant and remain exercisable until the
stock option expires; and
	 
	 	 	an additional one-fifth of the shares of Common Stock underlying
the stock option grant shall vest and become exercisable on the
second anniversary of the date of grant and remain exercisable
until the stock option expires; and
	 
	 	 	an additional one-fifth of the shares of Common Stock underlying
the stock option grant shall vest and become exercisable on the
third anniversary of the date of grant and remain exercisable
until the stock option expires; and
	 
	 	 	an additional one-fifth of the shares of Common Stock underlying
the stock option grant shall vest and become exercisable on the
fourth anniversary of the date of grant and remain exercisable
until the stock option expires; and
	 
	 	 	the final one-fifth of the shares of Common Stock underlying the
stock option grant shall vest and become exercisable on the fifth
anniversary of the date of grant and remain exercisable until the
stock option expires.
	 
	 	 	No Option by its terms shall be exercisable after the expiration
of ten years from the date of grant of the Option, unless, as to
any Non-Qualified Option, otherwise expressly provided in such
Option; PROVIDED, HOWEVER, that no Incentive Option granted to a
person who, at the time such Option is granted, owns stock of the
Company, or any Related Entity, possessing more than 10% of the
total combined voting power of all classes of stock of the
Company, or any Related Entity, shall be exercisable after the
expiration of five years from the date such Option is granted.

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	d.	 	DEATH. If an optionee’s employment with the Company or a
Related Entity terminates due to the death of such optionee, the
estate of such optionee, or a Person who acquired the right to
exercise such Option by bequest or inheritance or by reason of the
death of the optionee, shall have the right to exercise the vested
portion of such Option in accordance with its terms at any time and
from time to time within 180 days after the date of death unless a
longer or shorter period is expressly provided in such Option or
established by the Committee pursuant to Section 10 (but in no event
after the expiration date of such Option), and thereafter such
Option shall lapse and no longer be exercisable.
	 
	e.	 	DISABILITY. If the employment of an optionee terminates
because of his or her Disability (as defined in Section 20), such
optionee or his or her legal representative shall have the right to
exercise the vested portion of such Option in accordance with its
terms at any time and from time to time within 180 days after the
date of such termination unless a longer or shorter period is
expressly provided in such Option or established by the Committee
pursuant to Section 10 (but in no event after the expiration date of
the Option) , and thereafter such Option shall lapse and no longer
be exercisable; PROVIDED, HOWEVER, that in the case of an Incentive
Option, the optionee or his or her legal representative shall in any
event be required to exercise the vested portion of such Incentive
Option within one year after termination of the optionee’s
employment due to his or her Disability.
	 
	f.	 	TERMINATION FOR GOOD CAUSE; VOLUNTARY TERMINATION. Unless an
optionee’s Option expressly provides otherwise, such optionee shall
immediately forfeit all rights under his or her Option, except as to
the shares of stock already purchased thereunder, if the employment
of such optionee with the Company or a Related Entity is terminated
by the Company or any Related Entity for Good Cause (as defined
below) or if such optionee voluntarily terminates employment without
the consent of the Company or any Related Entity. The determination
that there exists Good Cause for termination shall be made by the
Committee (unless otherwise agreed to in writing by the Company and
the optionee) and any decision in respect thereof by the Committee
shall be final and binding on all parties in interest.
	 
	g.	 	OTHER TERMINATION OF EMPLOYMENT. If the employment of an
optionee with the Company or a Related Entity terminates for any
reason other than those specified in subsections 6(d), (e) or (f)
above, such optionee shall have the right to exercise the vested
portion of his or her Option in accordance with its terms, within 30
days after the date of such termination, unless a longer or shorter
period is expressly provided in such Option or established by the
Committee pursuant to Section 10 (but in no event after the
expiration date of the Option), and thereafter such Option shall
lapse and no longer be exercisable; PROVIDED, that (i) no Incentive
Option shall be exercisable more than three months after such
termination, and (ii) the Committee may, in the exercise of its
discretion, extend the exercise date of any Option upon termination
of employment for a period not to exceed six months plus one day
(but in no event after the expiration date of the Option) if the
Committee determines that the stated exercise date will have an
inequitable result under Section 16(b) of the Exchange Act.

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	h.	 	MAXIMUM EXERCISE. To the extent that the aggregate Fair
Market Value of Common Stock (determined at the time of the grant of
the Option) with respect to which Incentive Options are exercisable
for the first time by an optionee during any calendar year under all
plans of the Company and any Related Entity exceeds $100,000, such
Incentive Options shall be treated as Non-Qualified Options.
	 
	i.	 	CONTINUATION OF EMPLOYMENT. Each Incentive Option shall
require the optionee to remain in the continuous employ of the
Company or any Related Entity from the date of grant of the
Incentive Option until at least three months prior to the date of
exercise of the Incentive Option.
	 
	j.	 	INTERPRETATION OF PLAN. Any termination of employment of an
optionee with the Company or any Related Entity shall in no way
change or amend the Company’s at-will termination policy.

7. STOCK OPTION GRANTS TO ELIGIBLE NON-EMPLOYEES

     Subject to the express provisions of the Plan, the Committee shall have
the authority to grant Non-Qualified Options (and not Incentive Options) to
Eligible Non-Employees; PROVIDED, HOWEVER, that whenever the Company has any
class of equity securities registered pursuant to Section 12 of the Exchange
Act, no Eligible Non-Employee then serving on the Committee (or such other
committee then administering the Plan) shall be granted Options hereunder if
the grant of such Options would cause such Eligible Non-Employee to no longer
be a “Non-Employee Director” as set forth in Section 2 hereof. The terms and
conditions of the Options granted under this Section 7 shall be determined from
time to time by the Committee; PROVIDED, HOWEVER, that the Options granted
under this Section 7 shall be subject to all terms and provisions of the Plan
(other than Section 6), including the following:

	a.	 	OPTION EXERCISE PRICE. Subject to Section 4, the Committee
shall establish the Option exercise price at the time any
Non-Qualified Option is granted to an Eligible Non-Employee at such
amount as the Committee shall determine. The Option exercise price
shall be subject to adjustment in accordance with the provisions of
Section 12 of the Plan.
	 
	b.	 	PAYMENT. The price per share of Common Stock with respect to
each Option exercise by an Eligible Non-Employee shall be payable at
the time of such exercise. Such price shall be payable in cash or
by any other means acceptable to the Committee, including by the
delivery to the Company of shares of Common Stock owned by the
optionee or by the delivery or withholding of shares pursuant to a
procedure created pursuant to subsection 5(d) of the Plan. Shares
delivered to or withheld by the Company in payment of the Option
exercise price shall be valued at the Fair Market Value of the
Common Stock on the day preceding the date of the exercise of the
Option.
	 
	c.	 	EXERCISABILITY OF STOCK OPTION. Unless otherwise determined
by the Committee at the time of grant and subject to the provisions
of subsections 7(d), (e), (f), (g) and (i) below, stock options
granted to Eligible Non-Employees hereunder shall vest and become
exercisable according to the vesting schedule set forth below:

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	 	 	one-fifth of the shares of Common Stock underlying the stock
option grant shall vest and become exercisable on the first
anniversary of the date of grant and remain exercisable until the
stock option expires; and
	 
	 	 	an additional one-fifth of the shares of Common Stock underlying
the stock option grant shall vest and become exercisable on the
second anniversary of the date of grant and remain exercisable
until the stock option expires; and
	 
	 	 	an additional one-fifth of the shares of Common Stock underlying
the stock option grant shall vest and become exercisable on the
third anniversary of the date of grant and remain exercisable
until the stock option expires; and
	 
	 	 	an additional one-fifth of the shares of Common Stock underlying
the stock option grant shall vest and become exercisable on the
fourth anniversary of the date of grant and remain exercisable
until the stock option expires; and
	 
	 	 	the final one-fifth of the shares of Common Stock underlying the
stock option grant shall vest and become exercisable on the fifth
anniversary of the date of grant and remain exercisable until the
stock option expires.
	 
	 	 	No Option shall be exercisable after the expiration of ten years
from the date of grant of the Option, unless otherwise expressly
provided in such Option.
	 
	d.	 	DEATH. If the retention by the Company or any Related Entity
of the services of any Eligible Non-Employee that is a natural
person terminates because of his or her death, the estate of such
optionee, or a Person who acquired the right to exercise the vested
portion of such Option by bequest or inheritance or by reason of the
death of the optionee, shall have the right to exercise such Option
in accordance with its terms, at any time and from time to time
within 180 days after the date of death unless a longer or shorter
period is expressly provided in such Option or established by the
Committee pursuant to Section 10 (but in no event after the
expiration date of such Option), and thereafter such Option shall
lapse and no longer be exercisable.
	 
	e.	 	DISABILITY. If the retention by the Company or any Related
Entity of the services of any Eligible Non-Employee that is a
natural person terminates because of his or her Disability, such
optionee or his or her legal representative shall have the right to
exercise the vested portion of such Option in accordance with its
terms at any time and from time to time within 180 days after the
date of the optionee’s termination unless a longer or shorter period
is expressly provided in such Option or established by the Committee
pursuant to Section 10 (but in no event after the expiration of the
Option) , and thereafter such Option shall lapse and no longer be
exercisable.
	 
	f.	 	TERMINATION FOR GOOD CAUSE; VOLUNTARY TERMINATION. If the
retention by the Company or any Related Entity of the services of
any Eligible Non-Employee is terminated (i) for Good Cause, (ii) as
a result of removal of the optionee from office as a director of the
Company or of any Related Entity for cause by action of the
shareholders of the Company or such Related Entity in accordance
with the articles of incorporation or the by-laws of the Company or

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	 	 	such Related Entity, as applicable, and the corporate law of the
jurisdiction of incorporation of the Company or such Related
Entity, or (iii) as a result of the voluntary termination by such
optionee of the optionee’s service without the consent of the
Company or any Related Entity, then such optionee shall
immediately forfeit his, her or its rights under such Option
except as to the shares of stock already purchased. The
determination that there exists Good Cause for termination shall
be made by the Committee (unless otherwise agreed to in writing by
the Company and the optionee) and any decision in respect thereof
by the committee shall be final and binding on all parties in
interest.
	 
	g.	 	OTHER TERMINATION OF RELATIONSHIP. If the retention by the
Company or any Related Entity of the services of any Eligible
Non-Employee terminates for any reason other than those specified in
subsections 7(d), (e) or (f) above, such optionee shall have the
right to exercise the vested portion of his, her or its Option in
accordance with its terms within 30 days after the date of such
termination, unless a longer or shorter period is expressly provided
in such Option or established by the Committee pursuant to Section
10 (but in no event after the expiration date of the Option), and
thereafter such Option shall lapse and no longer be exercisable;
PROVIDED, that the Committee may, in the exercise of its discretion,
extend the exercise date of any Option upon termination of retention
of an Eligible Non-Employee’s services for a period not to exceed
six months plus one day (but in no event after the expiration date
of the Option) if the Committee determines that the stated exercise
date will have an inequitable result under Section 16(b) of the
Exchange Act.
	 
	h.	 	INELIGIBILITY FOR OTHER GRANTS. Any Eligible Non-Employee
who receives an Option pursuant to this Section 7 shall be
ineligible to receive any Options under any other Section of this
Plan.

8. EARLY EXERCISE

     The Committee, in its sole discretion, may provide that an option is
exercisable prior to vesting. In the event the optionee’s employment (or, in
the case of any Option granted under Section 7, the optionee’s relationship)
with the Company or a Related Entity terminates for any reason while the
optionee holds such unvested shares, the Company will have the right to
repurchase any unvested shares. The terms and procedures of any right of early
exercise (and the repurchase procedures) shall be established by the Committee
and shall be set forth in the optionee’s option agreement.

9. PERFORMANCE-BASED OPTIONS

     The Committee, in its sole discretion, may designate and design Options
granted under the Plan as Performance-Based Options if it determines that
compensation attributable to such Options might not otherwise be tax deductible
by the Company due to the deduction limitation imposed by Section 162(m) of the
Code. Accordingly, Options granted under the Plan may be granted in such a
manner that the compensation attributable to such Options is intended by the
Committee to qualify as “performance-based compensation” as such term is used
in Section 162 (m) of the Code and the regulations promulgated thereunder and
thus be exempt from the deduction limitation imposed by Section 162(m) of the
Code (“PERFORMANCE-BASED OPTIONS”) .

10

 

Options granted under the Plan to Key Employees who constitute “covered
employees” within the meaning of Section 162(m) of the Code shall be deemed to
qualify as Performance-Based Options only if:

	a.	 	The Option exercise price is not less than the Fair Market
Value per share of Common Stock at the date the Option is granted;
PROVIDED, that in the case of an Incentive Option, such price is
subject to the limitations described in subsection 6(a); PROVIDED,
FURTHER, that the Option exercise price shall be subject to
adjustment in accordance with the provisions of Section 12 of the
Plan; or
	 
	b.	 	With respect to a Non-Qualified Option granted at an exercise
price that is below the Fair Market Value per share of the Common
Stock on the date of grant, such Option satisfies the following
requirements:

	(i)	 	the granting or vesting of such Non-Qualified
Option is subject to the achievement of a performance goal or
goals based on one or more of the following performance
measures (either individually or in any combination) : net
sales; pre-tax income before allocation of corporate overhead
and bonus; budget; cash flow; earnings per share; net income;
division, group or corporate financial goals; return on
stockholders’ equity; return on assets; attainment of
strategic and operational initiatives; appreciation in and/or
maintenance of the price of the Common Stock or any other
publicly-traded securities of the Company; market share;
gross profits; earnings before interest and taxes; earnings
before interest, taxes, depreciation and amortization;
economic value-added models; comparisons with various stock
market indices; increase in number of customers; and/or
reductions in costs;
	 
	(ii)	 	the Committee establishes in writing (A) the
objective performance-based goals applicable to a given
performance period, and (B) the individual employees or class
of employees to which such performance-based goals apply no
later than ninety days after the commencement of such
performance period (but in no event after twenty-five percent
of such performance period has elapsed)
	 
	(iii)	 	no compensation attributable to
Performance-Based Options will be paid to or otherwise
received by a Key Employee who constitutes a “covered
employee” within the meaning of Section 162(m) of the Code
until the Committee certifies in writing that the performance
goal or goals (and any other material terms) applicable to
such performance period have been satisfied;
	 
	(iv)	 	after the establishment of a performance goal,
the Committee shall not revise such performance goal (unless
such revision will not disqualify compensation attributable
to the Performance-Based Options as “performance-based
compensation” under Section 162(m) of the Code) or increase
the amount of compensation payable with respect to such
Performance-Based Options upon the attainment of such
performance goal; and

11

 

	(v)	 	as required by the regulations promulgated
under Section 162(m) of the Code, the material terms of
performance goals as described in subsection 9(b) (i) shall
be disclosed to and reapproved by the Company’s shareholders
no later than the first shareholder meeting that occurs in
the fifth year following the year in which the Company’s
shareholders previously approved such performance goals.

10. CHANGE OF CONTROL

     If (i) a Change of control shall occur, (ii) the Company shall enter into
an agreement providing for a Change of Control, or (iii) any member of the HMC
Group shall enter into an agreement providing for a Change of control, then all
Options outstanding under the Plan shall become exercisable immediately upon
the Change of Control and the Board shall have, in addition to its rights
pursuant to SECTION 11 hereof, the discretion to determine the treatment with
respect to all Options granted pursuant to the Plan, including, without
limitation, the discretion to immediately terminate the Option held by
optionees and to grant such optionees, in lieu thereof, the right to receive an
amount for each Option equal to (x) the fair market value of a share of Common
Stock on the date of the consummation of such Change of Control, less the per
share exercise price of such Option, multiplied by (y) the number of shares of
Common Stock vested under such Option as of the Charge of Control (taking into
account any shares that vest as a result of such Change of Control)

11. PURCHASE OPTION

	a.	 	Except as otherwise expressly provided in any particular
Option, if (i) any optionee’s employment (or, in the case of any
Option granted under Section 7, the optionee’s relationship) with
the Company or a Related Entity terminates for any reason at any
time or (ii) a Change of Control occurs, the Company and/or its
designee(s) shall have the option (the “PURCHASE OPTION”) to
purchase, and if the option is exercised, the optionee (or, with
respect to Common Stock acquired pursuant to the exercise of an
Option, the optionee’s assignee, or the optionee’s executor or the
administrator of the optionee’s estate, in the event of the
optionee’s death, or the optionee’s legal representative in the
event of the optionee’s incapacity (hereinafter, collectively with
such optionee, the “GRANTOR”)) shall sell to the Company and/or its
assignee(s), all or any portion (at the Company’s option) of the
 shares of Common Stock and/or Options held by the Grantor (such
 shares of Common Stock and Options collectively being referred to as
the “PURCHASABLE SHARES”)
	 
	b.	 	The Company shall give notice in writing to the Grantor of
the exercise of the Purchase Option within one year after the
earlier of the date of the termination of the optionee’s employment
or engagement or such Change of Control. Such notice shall state
the number of Purchasable Shares to be purchased and the purchase
price of such Purchasable Shares. If no notice is given within the
time limit specified above, the Purchase Option shall terminate.
	 
	c.	 	The purchase price to be paid for the Purchasable Shares
purchased pursuant to the Purchase Option shall be, in the case of
any Common Stock, the Fair Market Value per share as of the date of
the notice of exercise of the Purchase Option times the number of
 shares being purchased, and in the case of any Option, the

12

 

	 	 	Fair Market Value per share times the number of vested shares
(including by acceleration) subject to such Option which are being
purchased, less the applicable per share Option exercise price.
The purchase price shall be paid in cash. The closing of such
purchase shall take place at the Company’s principal executive
offices within ten days after the purchase price has been
determined. At such closing, the Grantor shall deliver to the
purchaser(s) the certificates or instruments evidencing the
Purchasable Shares being purchased, duly endorsed (or accompanied
by duly executed stock powers) and otherwise in good form for
delivery, against payment of the purchase price by check of the
purchaser(s) In the event that, notwithstanding the foregoing, the
Grantor shall have failed to obtain the release of any pledge or
other encumbrance on any Purchasable Shares by the scheduled
closing date, at the option of the purchaser(s) the closing shall
nevertheless occur on such scheduled closing date, with the cash
purchase price being reduced to the extent of, and paid to the
holder of, all unpaid indebtedness for which such Purchasable
Shares are then pledged or encumbered.
	 
	d.	 	To assure the enforceability of the Company’s rights under
this Section 11, each certificate or instrument representing Common
Stock or an Option held by him or it shall bear a conspicuous legend
in substantially the following form:
	 
	 	 	“THE SHARES [REPRESENTED BY THIS CERTIFICATE] [ISSUABLE PURSUANT
TO THIS AGREEMENT] ARE SUBJECT TO AN OPTION TO REPURCHASE PROVIDED
UNDER THE PROVISIONS OF THE COMPANY’S 2000 STOCK OPTION PLAN FOR
KEY EMPLOYEES AND A STOCK OPTION AGREEMENT ENTERED INTO PURSUANT
THERETO. A COPY OF SUCH OPTION PLAN AND OPTION AGREEMENT ARE
AVAILABLE UPON WRITTEN REQUEST TO THE COMPANY AT ITS PRINCIPAL
EXECUTIVE OFFICES.”

     The Company’s rights under this Section 11 shall terminate upon the
consummation of a Qualifying Public Offering.

12. ADJUSTMENT OF SHARES

     Except as otherwise contemplated in Section 10, and unless otherwise
expressly provided in a particular Option, in the event that, by reason of any
merger, consolidation, combination, liquidation, recapitalization, stock
dividend, stock split, split-up, split-off, spin-off, combination of shares,
exchange of shares or other like change in capital structure of the Company
(collectively, an “ADJUSTMENT EVENT”) , the Common Stock is substituted,
combined, or changed into any cash, property, or other securities, or the
shares of Common Stock are changed into a greater or lesser number of shares of
Common Stock, the number and/or kind of shares and/or interests subject to an
Option and the per share price or value thereof shall be appropriately and
equitably adjusted by the Committee to give appropriate effect to such
Adjustment Event. Any fractional shares or interests resulting from such
adjustment shall be eliminated. Notwithstanding the foregoing, (i) each such
adjustment with respect to an Incentive Option shall comply with the rules of
Section 424(a) of the Code to an Incentive Option, and (ii) in no event shall
any adjustment be made which would render any Incentive Option granted
hereunder other than an “incentive stock option” for purposes of Section 422 of
the Code.

13

 

     In the event the Company is not the surviving entity of an Adjustment
Event and, following such Adjustment Event, any optionee will hold Options
issued pursuant to the Plan which have not been exercised, cancelled, or
terminated in connection therewith, the Company shall cause such Options to be
assumed (or cancelled and replacement Options issued) by the surviving entity
or a Related Entity. In the event of any perceived conflict between the
provisions of Section 10 and this Section 12, the Committee’s determinations
under Section 10 shall control.

13. ASSIGNMENT OR TRANSFER

     Except as otherwise expressly provided in any Non-Qualified Option, no
Option granted under the Plan or any rights or interests therein shall be
assignable or transferable by an optionee except by will or the laws of descent
and distribution, and during the lifetime of an optionee, Options granted to
him or her hereunder shall be exercisable only by the optionee or, in the event
that a legal representative has been appointed in connection with the
Disability of an optionee, such legal representative.

14. COMPLIANCE WITH SECURITIES LAWS

     The Company shall not in any event be obligated to file any registration
statement under the Securities Act of 1933, as amended (the “SECURITIES ACT”)
or any applicable state securities laws, to permit exercise of any Option or to
issue any Common Stock in violation of the Securities Act or any applicable
state securities laws. Each optionee (or, in the event of his or her death or,
in the event a legal representative has been appointed in connection with his
or her Disability, the Person exercising the Option) shall, as a condition to
his or her right to exercise any Option, deliver to the Company an agreement or
certificate containing such representations, warranties and covenants as the
Company may deem necessary or appropriate to ensure that the issuance of shares
of Common Stock pursuant to such exercise is not required to be registered
under the Securities Act or any applicable state securities laws.

     Certificates for shares of Common Stock, when issued, may have
substantially the following legend, or statements of other applicable
restrictions, endorsed thereon, and may not be immediately transferable:

“THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS. THE SHARES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED,
TRANSFERRED OR OTHERWISE DISPOSED OF UNTIL THE HOLDER HEREOF PROVIDES
EVIDENCE SATISFACTORY TO THE ISSUER (WHICH, IN THE DISCRETION OF THE
ISSUER, MAY INCLUDE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER)
THAT SUCH OFFER, SALE, PLEDGE, TRANSFER OR OTHER DISPOSITION WILL NOT
VIOLATE APPLICABLE FEDERAL OR STATE LAWS.”

     This legend shall not be required for shares of Common Stock issued
pursuant to an effective registration statement under the Securities Act and in
accordance with applicable state securities laws.

14

 

15. WITHHOLDING TAXES

     By acceptance of the Option, the optionee will be deemed to (i) agree to
reimburse the Company or any Related Entity by which the optionee is employed
for any federal, state, or local taxes required by any government to be
withheld or otherwise deducted by such corporation in respect of the optionee’s
exercise of all or a portion of the Option; (ii) authorize the Company or any
Related Entity by which the optionee is employed to withhold from any cash
compensation paid to the optionee or on the optionee’s behalf, an amount
sufficient to discharge any federal, state, and local taxes imposed on the
Company or the Related Entity by which the optionee is employed, and which
otherwise has not been reimbursed by the optionee, in respect of the optionee’s
exercise of all or a portion of the Option; and (iii) agree that the Company
may, in its discretion, hold the stock certificate to which the optionee is
entitled upon exercise of the Option as security for the payment of the
aforementioned withholding tax liability, until cash sufficient to pay that
liability has been accumulated, and may, in its discretion, effect such
withholding by retaining shares issuable upon the exercise of the Option having
a Fair Market Value on the date of exercise which is equal to the amount to be
withheld.

16. COSTS AND EXPENSES

     The costs and expenses of administering the Plan shall be borne by the
Company and shall not be charged against any Option nor to any employee
receiving an Option.

17. FUNDING OF PLAN

     The Plan shall be unfunded. The Company shall not be required to make any
segregation of assets to assure the payment of any Option under the Plan.

18. OTHER INCENTIVE PLANS

     The adoption of the Plan does not preclude the adoption by appropriate
means of any other incentive plan for employees.

19. EFFECT ON EMPLOYMENT

     Nothing contained in the Plan or any agreement related hereto or referred
to herein shall affect, or be construed as affecting, the terms of employment
of any Key Employee except to the extent specifically provided herein or
therein. Nothing contained in the Plan or any agreement related hereto or
referred to herein shall impose, or be construed as imposing, an obligation on
(i) the Company or any Related Entity to continue the employment of any Key
Employee, and (ii) any Key Employee to remain in the employ of the Company or
any Related Entity.

20. DEFINITIONS

     In addition to the terms specifically defined elsewhere in the Plan, as
used in the Plan, the following terms shall have the respective meanings
indicated:

“ADJUSTMENT EVENT” shall have the meaning set forth in Section 12 hereof.

15

 

“AFFILIATE” shall mean, as to any Person, a Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled
by, or is under common control with, such Person.

“BOARD OF DIRECTORS” shall have the meaning set forth in Section 2
hereof.

“CHANGE OF CONTROL” shall mean the first to occur of the following
events: (i) any sale, lease, exchange, or other transfer (in one
transaction or series of related transactions) of all or substantially
all of the assets of the company to any Person or group of related
Persons as determined pursuant to Section 13 (d) of the Exchange Act and
the regulations and interpretations thereunder (a “Group”) other than one
or more members of the HMC Group, (ii) a majority of the Board of
Directors of the Company shall consist of Persons who are not Continuing
Directors; or (iii) the acquisition by any Person or Group other than one
or more members of the HMC Group of the power, directly or indirectly, to
vote or direct the voting of securities having more than 50% of the
ordinary voting power for the election of directors of the Company.

“CODE” shall have the meaning set forth in Section 1 hereof.

“COMMITTEE” shall have the meaning set forth in Section 2 hereof.

“COMMON STOCK” shall have the meaning set forth in Section 3 hereof.

“COMPANY” shall have the meaning set forth in Section 1 hereof.

“CONTINUING DIRECTOR” shall mean, as of the date of determination, any
Person who (i) was a member of the Board of Directors of the Company on
the date of adoption of the Plan, (ii) was nominated for election or
elected to the Board of Directors of the Company with the affirmative
vote of a majority of the Continuing Directors who were members of such
Board of Directors at the time of such nomination or election, or (iii)
is a member of the HMC Group.

“DISABILITY” shall mean (i) permanent disability as defined under the
appropriate provisions of the applicable long-term disability plan
maintained for the benefit of employees of the Company or any Related
Entity who are regularly employed on a salaried basis or (ii) if no such
long-term disability plan exists, an inability to perform a participant’s
employment duties and responsibilities by reason of any physical or
mental condition for a period of 26 consecutive weeks or a period of 26
weeks during any 12-month period in connection with the same physical or
mental condition or (iii) another meaning agreed to in writing by the
Committee and the optionee; PROVIDED, HOWEVER, that in the case of the
optionee holding an Incentive Option “disability” shall have the meaning
specified in Section 22(e) (3) of the Code.

“ELIGIBLE NON-EMPLOYEE” shall have the meaning set forth in Section 4
hereof.

“EXCHANGE ACT” shall have the meaning set forth in Section 2 hereof.

“FAIR MARKET VALUE” shall, as it relates to the Common Stock, mean the
average of the high and low prices of such Common Stock as reported on
the principal national securities exchange on which the shares of Common
Stock are then listed or the NASDAQ National Market, as applicable, on
the date specified herein for such a

16

 

determination; or if there were no sales on such date, on the next
preceding day on which there were sales; or, if such Common Stock is not
listed on a national securities exchange, the last reported bid price in
the over-the-counter market; or, if such shares are not traded in the
over-the-counter market, the per share cash price for which all of the
outstanding Common Stock could be sold to a willing purchaser in an arms
length transaction (without regard to minority discount, absence of
liquidity, or transfer restrictions imposed by any applicable law or
agreement) at the date of the event giving rise to a need for a
determination. Except as may be otherwise expressly provided in a
particular Option, Fair Market Value shall be determined in good faith by
the Committee.

“GOOD CAUSE”, with respect to any Key Employee, shall mean (unless
another definition is agreed to in writing by the Company and the
optionee) termination by action of the Board of Directors because of: (A)
the optionee’s conviction of, or plea of nolo contendere to, a felony or
a crime involving moral turpitude; (B) the optionee’s personal
dishonesty, willful misconduct, willful violation of any law, rule, or
regulation (other than minor traffic violations or similar offenses) or
breach of fiduciary duty which involves personal profit; (C) the
optionee’s willful commission of material mismanagement in the conduct of
his or her duties as assigned to him by the Board of Directors or the
optionee’s supervising officer or officers of the Company; (D) the
optionee’s willful failure to execute or comply with the policies of the
Company or his or her stated duties as established by the Board of
Directors or the optionee’s supervising officer or officers of the
Company, or the optionee’s intentional failure to perform the optionee’s
stated duties; or (E) substance abuse or addiction on the part of the
optionee. “GOOD CAUSE”, with respect to any Eligible Non-Employee, shall
mean (unless another definition is agreed to in writing by the Company
and the optionee) termination by action of the Board of Directors because
of: (A) the optionee’s conviction of, or plea of nolo contendere to, a
felony or a crime involving moral turpitude; (B) the optionee’s personal
dishonesty, willful misconduct, willful violation of any law, rule, or
regulation (other than minor traffic violations or similar offenses) or
breach of fiduciary duty which involves personal profit; (C) the
optionee’s willful commission of material mismanagement in providing
services to the Company or any Related Entity; (D) the optionee’s willful
failure to comply with the policies of the Company in providing services
to the Company or any Related Entity, or the optionee’s intentional
failure to perform the services for which the optionee has been engaged;
(E) substance abuse or addiction on the part of the optionee; or (F) the
optionee’s willfully making any material misrepresentation or willfully
omitting to disclose any material fact to the board of directors of the
Company or any Related Entity with respect to the business of the Company
or any Related Entity.

“GRANTOR” has the meaning set forth in Section 11 hereof.

“HMC GROUP” shall mean Hicks, Muse, Tate & Furst Incorporated, its
Affiliates, and their respective employees, officers, partners and
directors (and members of their respective families and trusts for the
primary benefit of such family members)

“HOLDING PERIOD” shall have the meaning set forth in subsection 5 (d)
hereof.

“INCENTIVE OPTIONS” shall have the meaning set forth in Section 6 hereof.

The term “INCLUDING” when used herein shall mean “including, but not
limited to”.

17

 

“KEY EMPLOYEE” shall have the meaning set forth in Section 4 hereof.

“NON-QUALIFIED OPTIONS” shall have the meaning set forth in Section 6
hereof.

“OPTIONS” shall have the meaning set forth in Section 1 hereof.

“PERFORMANCE-BASED OPTIONS” shall have the meaning set forth in Section 9
hereof.

“PERSON” shall have the meaning set forth in Section 4 hereof.

“PLAN” shall have the meaning set forth in Section 1 hereof.

“PURCHASABLE SHARES” shall have the meaning set forth in Section lb
hereof.

“PURCHASE OPTION” shall have the meaning set forth in Section 11 hereof.

“QUALIFYING PUBLIC OFFERING” shall mean a firm commitment underwritten
public offering of Common Stock the result of which is that the HMC Group
shall own less than 10% of the fully diluted Common Stock of the Company.

“RELATED ENTITIES” shall have the meaning set forth in Section 1 hereof.

“RULE 16B-3” shall have the meaning set forth in Section 2 hereof.

“SECURITIES ACT” shall have the meaning set forth in Section 14 hereof.

“TERM” shall have the meaning set forth in Section 22 hereof.

21. AMENDMENT OF PLAN

     The Board of Directors shall have the right to amend, modify, suspend or
terminate the Plan at any time; PROVIDED, that no amendment shall be made which
shall increase the total number of shares of the Common Stock which may be
issued and sold pursuant to Options granted under the Plan or decrease the
minimum Option exercise price in the case of an Incentive Option, or modify the
provisions of the Plan relating to eligibility with respect to Incentive
Options unless such amendment is made by or with the approval of the
shareholders. The Board of Directors shall be authorized to amend the Plan and
the Options granted thereunder, without the consent or joinder of any optionee
or other Person, in such manner as may be deemed necessary or appropriate by
the Board of Directors in order to cause the Plan and the Options granted
thereunder (i) to qualify as “incentive stock options” within the meaning of
Section 422 of the Code, (ii) to comply with Rule l6b-3 (or any successor rule)
under the Exchange Act (or any successor law) and the regulations (including
any temporary regulations) promulgated thereunder or (iii) to comply with
Section 162(m) of the Code (or any successor section) and any regulations
(including any temporary regulations) promulgated thereunder. Except as
provided above, no amendment, modification, suspension or termination of the
Plan shall materially impair the value of any Options previously granted under
the Plan, without the consent of the holder thereof.

18

 

22. EFFECTIVE DATE

     The Plan shall be effective as of February 1, 2000, and shall be void
retroactively as to any Incentive Option if not approved by the shareholders of
the Company within twelve months thereafter. The Plan shall terminate on the
tenth anniversary of the date of the effective date of the Plan or the date of
approval of the Plan by the shareholders of the Company, whichever is earlier,
unless sooner terminated by the Board of Directors (the “TERM”).

19exv10w15

 

Exhibit 10.15

FORM OF

FISCAL YEAR                     ORACLE EXECUTIVE BONUS PLAN FOR                    

			
	Name:
	 	Employee ID:                    
	Title:
	 	Effective Date:                    

 

Individual Bonus based on “Change in Operating Profit”

 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Change in	 	 	 	Total
	 	 	 	FY_	 	 	 	Operating	 	Individual	 	Individual
	(in ‘000)
	
	
	(projected)
	
	FY__
	
	Profit
	 	Payout
	
	Bonus ($)

	Example:
	 	 	 	 	 	 	 	 	 	 	 
	Revenue

Expense

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	
 	 	 	 	 	 	 
	Operating Profit

	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	
 

Operating Profit is calculated as Total Company Revenue minus Total Company Expense

Revenue and expense numbers are in USD

Plan is potentially subject to restatement in the event of a significant acquisition.

If both years’ profit is negative, but year-over-year is producing a positive variance, no bonus is paid.

If year over year operating profit is producing negative results, no bonus is paid

The individual bonus may not fall below zero.

Page 1 of 2

 

Administration of the Fiscal Year                     Oracle Executive Bonus Plan (Bonus Plan)

Amendment and Termination. The Compensation Committee may terminate the Bonus Plan, in whole or in part, suspend the Bonus Plan, in whole or in part from time to
time, and amend the Bonus Plan, from time to time, including the adoption of amendments deemed necessary or desirable to correct any defect or supply omitted data
or reconcile any inconsistency in the Bonus Plan or in any award granted thereunder, so long as stockholder approval has been obtained, if required in order for
awards under the Bonus Plan to qualify as “performance-based compensation” under Section 162(m). The Compensation Committee may amend or modify the Bonus Plan in
any respect, or terminate the Bonus Plan, without the consent of any affected participant. However, in no event may such amendment or modification result in an
increase in the amount of compensation payable pursuant to any award.

Awards under the Bonus Plan do not vest, and are not earned, until the Compensation Committee makes any and all authorized determinations, adjustments,
modifications, and changes of amounts payable under the Bonus Plan.

All awards will be paid in cash as soon as is practicable following determination of the award, unless the Committee has, prior to the grant of an award, received
and approved, in its sole discretion, a request by a participant to defer receipt of an award in accordance with the Bonus Plan.

The amounts that will be paid pursuant to the Bonus Plan are not currently determinable. The maximum bonus payment that any participant may receive under the
Bonus Plan would be $                   , less any other cash compensation (including base salary) she or he receives with respect to fiscal year                     (i.e., total cash
compensation cannot exceed $                   ).

Should a participant’s employment with Oracle terminate for any reason during fiscal year                    , the participant will not be eligible to receive an award under the
Bonus Plan.

Executives on a paid or unpaid leave of absence will not be eligible to earn compensation under the Bonus Plan. Payments under the Bonus Plan may be adjusted to
reflect time on leave.

Under present federal income tax law, participant will realize ordinary income equal to the amount of the award received in the year of receipt. That income will
be subject to applicable income and employment tax withholding by the Company.

Oracle Policies. The executive agrees to abide by published Oracle policies including this Bonus Plan, the Code of Ethics and Business Conduct, the Proprietary
Information Agreement, and other employment and/or financial guidelines.

At-Will Employment. Employment at Oracle is at-will. Oracle makes no express or implied commitment that employment will have a minimum or fixed term; that Oracle
may take adverse employment action only for cause or that employment is terminable only for cause. Either the executive or Oracle may terminate the employment
relationship at any time for any reason. Additionally, Oracle may take any other employment action at any time for any reason. No one at Oracle may make, unless
specifically authorized in writing by Oracle’s Board of Directors, any promise, express or implied, that employment is for any fixed term or that cause is
required for the termination of or change in the employment relationship.

Severability. If any portion of this Bonus Plan shall, for any reason, be held invalid or unenforceable, or contrary to public policy or any law, the remainder
of the Bonus Plan shall not be affected by such invalidity or unenforceability, but shall remain in full force and effect, as if the invalid or unenforceable term
or portion thereof had not existed within this Bonus Plan.

Knowing and Voluntary Agreement. By signing the Fiscal Year                     Oracle Executive Bonus Plan, the executive is agreeing that he or she has read and understood
every provision set forth herein, and that, in consideration for participation in the Bonus Plan, agrees to abide by its terms.

I acknowledge receipt and accept this document.

 

               
                      
                      
                     Date

Page 2 of 2

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