Document:

Motive, Inc. Equity Incentive Plan

 Exhibit 4.3 
  

MOTIVE, INC. 
  
 EQUITY INCENTIVE PLAN 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	ARTICLE 1.     INTRODUCTION.	  	1
		
	ARTICLE 2.     ADMINISTRATION.	  	1
			
	        2.1	  	Committee Composition	  	1
	        2.2	  	Committee Responsibilities	  	1
	        2.3	  	Committee for Non-Officer Grants	  	2
		
	ARTICLE 3.     COMMON SHARES RESERVED FOR ISSUANCE.	  	2
			
	        3.1	  	Basic Limitation	  	2
	        3.2	  	Annual Increase in Shares	  	2
	        3.3	  	Additional Shares	  	2
	        3.4	  	Dividend Equivalents	  	2
	        3.5	  	Limitation on Common Shares Underlying Awards	  	2
		
	ARTICLE 4.     ELIGIBILITY.	  	2
			
	        4.1	  	Incentive Stock Options	  	2
	        4.2	  	Other Grants	  	3
		
	ARTICLE 5.     OPTIONS.	  	3
			
	        5.1	  	Stock Option Agreement	  	3
	        5.2	  	Number of Shares	  	3
	        5.3	  	Exercise Price	  	3
	        5.4	  	Exercisability and Term	  	3
	        5.5	  	Buyout Provisions	  	3
		
	ARTICLE 6.     PAYMENT FOR OPTION SHARES.	  	4
			
	        6.1	  	General Rule	  	4
		
	ARTICLE 7.     AUTOMATIC OPTION GRANTS TO OUTSIDE DIRECTORS.	  	4
			
	        7.1	  	Initial Grants	  	4
	        7.2	  	Annual Grants	  	4
	        7.3	  	Accelerated Exercisability	  	5
	        7.4	  	Exercise Price	  	5
	        7.5	  	Term	  	5

  

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	ARTICLE 8.     STOCK APPRECIATION RIGHTS.	  	5
			
	        8.1	    	SAR Agreement	  	5
	        8.2	    	Number of Shares	  	5
	        8.3	    	Exercise Price	  	5
	        8.4	    	Exercisability and Term	  	5
	        8.5	    	Exercise of SARs	  	5
	        8.6	    	Payment for SARs	  	6
		
	ARTICLE 9.     RESTRICTED SHARES.	  	6
			
	        9.1	    	Restricted Share Agreement	  	6
	        9.2	    	Payment for Awards	  	6
	        9.3	    	Vesting Conditions and Term	  	6
	        9.4	    	Voting and Dividend Rights	  	6
		
	ARTICLE 10.    STOCK UNITS.	  	7
			
	        10.1	    	Stock Unit Agreement	  	7
	        10.2	    	Payment for Awards	  	7
	        10.3	    	Vesting and Exercisability	  	7
	        10.4	    	Voting and Dividend Rights	  	7
	        10.5	    	Form and Time of Settlement of Stock Units	  	7
	        10.6	    	Creditors’ Rights	  	7
		
	ARTICLE 11.    ADJUSTMENTS, DISSOLUTION OR LIQUIDATION	  	8
			
	        11.1	    	Adjustments	  	8
	        11.2	    	Dissolution or Liquidation	  	8
		
	ARTICLE 12.    EFFECT OF CHANGE IN CONTROL	  	8
		
	ARTICLE 13.    DEFERRAL OF AWARDS	  	9
		
	ARTICLE 14.    AWARDS UNDER OTHER PLANS.	  	9
		
	ARTICLE 15.    PAYMENT OF DIRECTOR’S FEES IN SECURITIES.	  	9
			
	        15.1	    	Effective Date	  	9
	        15.2	    	Elections to Receive NSOs, Restricted Shares or Stock Units	  	9
	        15.3	    	Number and Terms of NSOs, Restricted Shares or Stock Units	  	10
		
	ARTICLE 16.    LIMITATION ON RIGHTS.	  	10
			
	        16.1	    	Retention Rights	  	10
	        16.2	    	Stockholders’ Rights	  	10
	        16.3	    	Regulatory Requirements	  	10

  

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	ARTICLE 17.     WITHHOLDING TAXES.	  	10
			
	        17.1	  	General	  	10
	        17.2	  	Share Withholding	  	10
		
	ARTICLE 18.     FUTURE OF THE PLAN.	  	11
			
	        18.1	  	Term of the Plan	  	11
	        18.2	  	Amendment or Termination	  	11
		
	ARTICLE 19.     TRANSFERABILITY OF AWARDS	  	11
		
	ARTICLE 20.     DEFINITIONS.	  	11
			
	        20.1	  	“Affiliate”	  	11
	        20.2	  	“Award”	  	11
	        20.3	  	“Award Agreement”	  	11
	        20.4	  	“Board”	  	11
	        20.5	  	“Change in Control”	  	11
	        20.6	  	“Code”	  	12
	        20.7	  	“Committee”	  	12
	        20.8	  	“Common Share”	  	12
	        20.9	  	“Company”	  	12
	        20.10	  	“Consultant”	  	12
	        20.11	  	“Disability”	  	12
	        20.12	  	“Effective Date”	  	13
	        20.13	  	“Employee”	  	13
	        20.14	  	“Exchange Act”	  	13
	        20.15	  	“Exercise Price”	  	13
	        20.16	  	“Fair Market Value”	  	13
	        20.17	  	“ISO”	  	13
	        20.18	  	“NSO”	  	13
	        20.19	  	“Option”	  	13
	        20.20	  	“Optionee”	  	13
	        20.21	  	“Outside Director”	  	13
	        20.22	  	“Parent”	  	13
	        20.23	  	“Participant”	  	13
	        20.24	  	“Permissible Assignee”	  	13
	        20.25	  	“Plan”	  	14
	        20.26	  	“Predecessor Plan”	  	14
	        20.27	  	“Restricted Share”	  	14
	        20.28	  	“Restricted Share Agreement”	  	14
	        20.29	  	“SEC”	  	14
	        20.30	  	“Stock Appreciation Right” or “SAR”	  	14
	        20.31	  	“SAR Agreement”	  	14
	        20.32	  	“Stock Option Agreement”	  	14
	        20.33	  	“Stock Unit”	  	14
	        20.34	  	“Stock Unit Agreement”	  	14
	        20.35	  	“Subsidiary”	  	14

  

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 MOTIVE, INC. 
  
 EQUITY INCENTIVE PLAN*

  
 ARTICLE 1. INTRODUCTION. 
  
 The Plan was adopted by the Board on November 21, 2003, and will become
effective on the effective date of the Company’s registration statement on the Form S-1 relating to the initial public offering of its Common Shares (the “Effective Date”). The purpose of the Plan is to promote the long-term success
of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and
Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form
of Restricted Shares, Stock Units, Options (which may constitute incentive stock options or nonstatutory stock options) or Stock Appreciation Rights. 
  
 The Plan shall be governed by, and construed in accordance with, the internal substantive laws (but not the choice of law rules) of the State of Delaware.

  
 ARTICLE 2. ADMINISTRATION. 
  
 2.1 Committee Composition. The Plan shall be administered by
the Committee. The Committee shall consist exclusively of two or more directors of the Company, who shall be appointed by the Board. In addition: 
  
 (a) To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the Plan shall be administered by a Committee of
two or more “non-employee directors” within the meaning of Rule 16b-3; and 
  
 (b) To the extent desirable to qualify Awards granted hereunder as “performance based compensation” within the meaning of
Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code. 
  
 2.2 Committee Responsibilities. The Committee shall (a) select the Employees, Outside Directors and
Consultants who are to receive Awards under the Plan, (b) determine the type, number, vesting requirements and other features and conditions of such Awards, (c) interpret the Plan, (d) prescribe, amend and rescind rules and regulations relating the
plan, (e) modify or amend each Award (subject to the limitation in Section 18.2 of the Plan), and (f) make all other decisions relating to the operation of the Plan. The Committee’s determinations under the Plan shall be final and binding on
all persons. 
  

	*	The Committee has determined that this Plan, including, without limitation, the description herein of the number of Common Shares available for award hereunder, already gives effect
to the one-for-four reverse split of the Company’s outstanding Common Stock and Preferred Stock to occur immediately prior to the closing of its initial public offering (the “Reverse Split”) and no adjustment shall be made to this
Plan or the number of Common Shares available for award hereunder in connection with the effectiveness of the Reverse Split. 

 2.3 Committee for Non-Officer Grants. The Board may also appoint a secondary Committee of
the Board, which shall be composed of one or more directors of the Company who need not satisfy the requirements of Section 2.1(a) or 2.1(b). Such secondary Committee may administer the Plan with respect to Employees and Consultants who are not
considered officers or directors of the Company under Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and Consultants and may determine all features and conditions of such Awards. Within the limitations of this
Section 2.3, any reference in the Plan to the Committee shall include such secondary Committee. 
  
 ARTICLE 3. COMMON SHARES RESERVED FOR ISSUANCE. 
  
 3.1 Basic Limitation. Common Shares issued pursuant to the Plan may be authorized but unissued shares or treasury shares. The aggregate
number of Common Shares underlying Awards that are reserved for issuance under the Plan shall not exceed (a) 1,250,000 Common Shares plus (b) the number of Common Shares that remain available for issuance on the Effective Date under the Predecessor
Plan plus (c) the additional Common Shares described in Sections 3.2 and 3.3.  
  
 3.2 Annual Increase in Shares. As of January 1 of each year, commencing with the year 2005, the aggregate number of Common Shares underlying Awards reserved for issuance under the Plan shall
automatically increase by a number equal to the lesser of (a) 4% of the total number of Common Shares then outstanding, (b) 1,250,000 Common Shares, or (c) a lesser number of Common Shares as determined by the Board. 
  
 3.3 Additional Shares. If Restricted Shares are forfeited, then
such Common Shares shall again become available for Awards under the Plan. If Stock Units, Options, or SARs are forfeited or terminate for any reason before being exercised, then the corresponding number of Common Shares underlying such Awards shall
again become available for Awards under the Plan. If Stock Units are settled, then only the number of Common Shares (if any) actually issued in settlement of such Stock Units shall reduce the number available under Section 3.1 and the balance shall
again become available for Awards under the Plan. If SARs are exercised, then only the number of Common Shares (if any) actually issued in settlement of such SARs shall reduce the number available under Section 3.1 and the balance shall again become
available for Awards under the Plan.  
  
 3.4
Dividend Equivalents. Dividend equivalents paid or credited under the Plan in the form of cash shall not be applied against the number of Common Shares reserved for issuance under the Plan. Dividend equivalents paid or credited in the form of
Stock Units shall count against the number of Common Shares reserved for issuance under the Plan. 
  
 3.5 Limitation on Common Shares Underlying Awards. The maximum number of Common Shares underlying all Awards granted to any Participant
during any single calendar year shall be 5,000,000 Common Shares. 
  
 ARTICLE 4. ELIGIBILITY. 
  
 4.1 Incentive Stock Options. Only Employees shall be eligible for the grant of ISOs; provided, however, that an ISO shall not be granted on or after the 10th
anniversary of 
  

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 the date the Board adopts this Plan. In addition, an Employee who owns more than 10% of the total combined voting power
of all classes of outstanding stock of the Company or any of its Parents or Subsidiaries shall not be eligible for the grant of an ISO unless the requirements set forth in Section 422(c)(5) of the Code are satisfied. 
  
 4.2 Other Grants. Employees, Outside Directors and Consultants
shall be eligible for the grant of Restricted Shares, Stock Units, NSOs or SARs. 
  
 ARTICLE 5. OPTIONS. 
  
 5.1 Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by an applicable Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms of the
Plan and the terms of the Stock Option Agreement (which may not be inconsistent with the terms of the Plan). The Stock Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option Agreements
entered into under the Plan need not be identical. 
  
 5.2
Number of Shares. Each Stock Option Agreement shall specify the number of Common Shares subject to the Option. 
  
 5.3 Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. Notwithstanding the above, the Exercise Price under: (i)
an ISO or (ii) an NSO that is intended to qualify as “performance based compensation” under Section 162(m) of the Code, shall in no event be less than 100% of the Fair Market Value of the Common Share on the date of grant. 
  
 5.4 Exercisability and Term. Each Stock Option Agreement shall
specify: 
  
 (a) the date or event when all or
any installment of the Option is to become exercisable; 
  
 (b) the term during which the Option is exercisable; provided, however, that the term of an ISO shall in no event exceed 10 years from the date of grant; and 
  
 (c) the term after the Optionee’s termination of
employment with the Company, Subsidiary, Parent or Affiliate, during which the Optionee or Permissible Assignee (if applicable) may exercise the vested portion of the Option. 
  
 5.5 Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash
equivalents an Option previously granted or (b) authorize an Optionee or Permissible Assignee (if applicable) to elect to cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Committee
shall establish. 
  

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 ARTICLE 6. PAYMENT FOR OPTION SHARES. 
  
 6.1 General Rule. The entire Exercise Price of Common Shares
issued upon exercise of Options shall be payable in the form specified in the Stock Option Agreement. Such form of payment may include any combination of the foregoing: 
  
 (a) cash or cash equivalent; 
  
 (b) the surrender or attesting to the ownership of (and authorizing the Company to cancel), other Common
Shares owned by the Optionee (or Permissible Assignee, if applicable) that (i) have been owned by the Optionee (or Permissible Assignee, if applicable) for more than six months from the date of such surrender or attestation, and (ii) have a Fair
Market Value on the date of such surrender or attestation equal to the Exercise Price; 
  
 (c) consideration received by the Company under a “cashless exercise” program that is determined by the Committee to comply with
the requirements of applicable law, including the requirements of the Sarbanes-Oxley Act of 2002; or 
  
 (d) such other consideration and method of payment for the issuance of Common Shares to the extent permitted under applicable laws.

  
 ARTICLE 7. AUTOMATIC OPTION GRANTS TO OUTSIDE DIRECTORS.

  
 7.1 Initial Grants. Each individual who
first becomes an Outside Director after the Effective Date shall at that time receive a one-time grant of an NSO covering 12,500 Common Shares; provided, however, that an individual who first becomes an Outside Director after the Effective Date
and who is contemporaneously appointed chairman of the Audit Committee of the Board, shall receive a one-time grant of an NSO covering 25,000 Common Shares. An NSO under this Section 7.1 shall be granted on the date when such Outside Director
first joins the Board as an Outside Director. 25% of the NSO will become exercisable and vested upon the completion of 12 months of service from the date of grant and 6.25% of the NSO will become exercisable and vested upon the completion of each
successive three-month period of service thereafter. 
  
 7.2 Annual Grants. Upon the conclusion of each regular annual meeting of the Company’s stockholders held in the year 2005 and thereafter, each Outside Director who is an Outside Director on the date of such annual
meeting, shall receive an NSO covering 3,125 Common Shares; provided, however, that an Outside Director who is also the chairman of the Audit Committee of the Board on the date of such annual meeting shall receive an NSO covering 6,250 Common
Shares. Notwithstanding the above, an NSO shall not be granted to an Outside Director under this Section 7.2, if in the same calendar year the Outside Director received an NSO described in Section 7.1. 6.25% of each NSO granted under this Section
7.2 shall become exercisable and vested upon the completion of each successive three-month period of service after the date of grant. 
  

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 7.3 Accelerated Exercisability. All NSOs granted to an Outside Director under this Article
7 shall also become exercisable and vested in full in the event of: 
  
 (a) The termination of such Outside Director’s service because of death or Disability; or 
  
 (b) A Change in Control with respect to the Company. 
  
 7.4 Exercise Price. The Exercise Price under all NSOs granted to an Outside Director under this Article 7
shall be equal to 100% of the Fair Market Value of a Common Share on the date of grant, payable in one of the forms described in Article 6. 
  
 7.5 Term. All NSOs granted to an Outside Director under this Article 7 shall terminate on the earliest of (a) the 10th anniversary of the
date of grant, or (b) the date 12 months after the termination of such Outside Director’s service for any reason. 
  
 ARTICLE 8. STOCK APPRECIATION RIGHTS. 
  
 8.1 SAR Agreement. Each grant of an SAR under the Plan shall be evidenced by an SAR Agreement between the Optionee and the Company. Such SAR
shall be subject to all applicable terms of the Plan and the terms of the SAR Agreement (which may not be inconsistent with the terms of the Plan). The provisions of the various SAR Agreements entered into under the Plan need not be identical.

  
 8.2 Number of Shares. Each SAR Agreement shall
specify the number of Common Shares to which the SAR pertains. 
  
 8.3 Exercise Price. Each SAR Agreement shall specify the Exercise Price; provided, however, that if an SAR is intended to qualify as “performance based compensation” under Section 162(m) of the Code, such SAR shall
have an Exercise Price equal to the Fair Market Value of the Common Shares underlying the SAR on the date of grant. 
  
 8.4 Exercisability and Term. SARs may be awarded alone or in tandem with Options. If SARs are granted in tandem with Options, the SARs shall
not be exercisable unless the related Options are forfeited and cancelled. Each SAR Agreement shall specify: 
  
 (a) the date when all or any installment of the SAR is to become exercisable; 
  
 (b) the term during which an SAR is exercisable; and

  
 (c) the term after the Optionee’s
termination of employment with the Company, Subsidiary, Parent or Affiliate, during which the Optionee (or Permissible Assignee, if applicable) may exercise the vested portion of his or her SAR. 
  
 8.5 Exercise of SARs. Upon exercise of an SAR, the Optionee
(or Permissible Assignee, if applicable) shall receive from the Company (a) Common Shares, 
  

 5 

 (b) cash or (c) a combination of Common Shares and cash, as the Committee shall determine. The amount of cash and/or the
Fair Market Value of Common Shares received upon exercise of an SAR shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of exercise) of the Common Shares subject to the SAR exceed the Exercise Price. If, on
the date when an SAR expires, the Exercise Price under such SAR is less than the Fair Market Value on such date but any portion of such SAR has not been exercised, then such SAR shall automatically be deemed to be exercised as of such date with
respect to such portion. 
  
 8.6 Payment for SARs.
The entire Exercise Price of an SAR shall be payable in the form specified in the SAR Agreement. Such form of payment may include any combination of the following: 
  
 (a) cash or cash equivalent; 
  
 (b) the surrender or attesting to the ownership of (and authorizing the Company to cancel), other Common
Shares owned by the Optionee (or Permissible Assignee, if applicable) that (i) have been owned by the Optionee (or Permissible Assignee, if applicable) for more than six months from the date of such surrender or attestation, and (ii) have a Fair
Market Value on the date of such surrender or attestation equal to the Exercise Price; or 
  
 (c) such other consideration and method of payment for the issuance of Common Shares to the extent permitted under applicable laws.

  
 ARTICLE 9. RESTRICTED SHARES. 
  
 9.1 Restricted Share Agreement. Each grant of Restricted Shares
under the Plan shall be evidenced by an applicable Restricted Share Agreement between the Participant and the Company. Such Restricted Shares shall be subject to all terms of the Plan and the Restricted Share Agreement (which shall not be
inconsistent with the terms of the Plan). The provisions of the various Restricted Share Agreements entered into under the Plan need not be identical. 
  
 9.2 Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, which
consideration shall be specified in the Restricted Share Agreement; provided however, that in all cases, at least the par value of the Restricted Shares awarded or sold shall be paid in cash or a cash equivalent. 
  
 9.3 Vesting Conditions and Term. As specified in the applicable
Restricted Share Agreement, each Award of Restricted Shares may or may not be subject to vesting. If the Restricted Shares are subject to vesting, vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the
Restricted Share Agreement. 
  
 9.4 Voting and Dividend
Rights. Except as otherwise provided in the Restricted Share Agreement, the holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Share
Agreement may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to
which the dividends were paid. 
  

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 ARTICLE 10. STOCK UNITS. 
  
 10.1 Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit
Agreement between the recipient and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and the applicable Stock Unit Agreement (which shall not be inconsistent with the terms of the Plan). The provisions of the
various Stock Unit Agreements entered into under the Plan need not be identical. 
  
 10.2 Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipient. 
  
 10.3 Vesting and Exercisability. Each Award of Stock Units may be
subject to vesting as provided in the Stock Unit Agreement. Each Stock Unit Agreement shall also specify the term of such Stock Unit grant, and the period that the Participant (or Permissible Assignee, if applicable) may settle the vested portion of
the Stock Unit following the termination of the Participant’s employment with the Company, a Parent, Subsidiary or Affiliate. 
  
 10.4 Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded
under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Common Share while each Stock Unit is
outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Common Shares, or in a combination of both. Prior to distribution, any dividend
equivalents that are not paid shall be subject to the same conditions and restrictions as the Stock Units to which they attach. 
  
 10.5 Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Common Shares or (c) any
combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting
Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Common Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments. The distribution may occur or
commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents.

  
 10.6 Creditors’ Rights. A holder of Stock Units
shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 
  

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 ARTICLE 11. ADJUSTMENTS, DISSOLUTION OR LIQUIDATION 
  
 11.1 Adjustments. In the event that any dividend or other distribution
(whether in the form of cash, Common Shares, other securities, or other property), recapitalization, stock-split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Shares
or other securities of the Company, or other change in the corporate structure of the Company affecting the Common Shares such that an adjustment is determined by the Committee (in its sole discretion) to be appropriate in order to prevent dilution
or enlargement of benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it deems equitable, adjust the number and class of Common Shares which are reserved for issuance under the
Plan, the number, class, and price of Common Shares covered by each outstanding Award, and the numerical share limits in Sections 3.1, 3.2, 5.2, 7.1, 7.2 and 8.2. 
  
 11.2 Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the
Committee shall notify each recipient of an Award as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised or settled, Options, SARs and Stock Units shall terminate
immediately prior to the dissolution or liquidation of the Company. 
  
 ARTICLE 12. EFFECT OF CHANGE IN CONTROL. In the event of a Change in Control, each outstanding Award shall be assumed or an equivalent Award substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. In the event that the successor corporation refuses to assume or substitute for the Award, the Award shall be fully vested and the recipient of such Award shall have the right to exercise the Award as to all of the Common Shares
underlying the Award, including that portion of the Award which would not otherwise be vested or exercisable. If an Award becomes fully vested and exercisable in lieu of assumption or substitution in the event of a Change in Control, the Committee
shall notify the recipient of an Award in writing or electronically that the Award shall be fully vested and exercisable (subject to the consummation of the Change of Control) for a period of 15 days from the date of such notice, and the Award shall
terminate upon the expiration of such period. For purposes of this Section, an Award shall be considered assumed if, following the Change in Control, the assumed Award confers the right to purchase or receive, for each Common Share underlying such
assumed Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities or property) received in the Change in Control by holders of Common Shares for each Common Share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change in Control is not
solely common stock of the successor corporation or its Parent, the Committee may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an Award, to be solely common stock of the successor
corporation or its Parent equal in Fair Market Value to the per share consideration received by holders of Common Shares the Change in Control. 
  

 8 

 ARTICLE 13. DEFERRAL OF AWARDS. The Committee (in its sole discretion) may permit or require a
Participant to: 
  
 (a) Have cash that
otherwise would be paid to such Participant as a result of the exercise of an SAR or the settlement of Stock Units credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books;

  
 (b) Have Common Shares that otherwise would
be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of Stock Units; or 
  
 (c) Have Common Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR or the
settlement of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall be determined by reference to the Fair Market
Value of such Common Shares as of the date when they otherwise would have been delivered to such Participant. 
  
 A deferred compensation account established under this Article 13 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is
established shall have no rights other than those of a general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement
between such Participant and the Company. If the deferral or conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation)
the settlement of deferred compensation accounts established under this Article 13. 
  
 ARTICLE 14. AWARDS UNDER OTHER PLANS. 
  
 The Company may grant equity awards under other plans, agreements, or programs. Such awards may be settled in the form of Common Shares issued under this Plan. Such Common Shares shall be treated for all purposes under the Plan like Common
Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Common Shares available under Article 3. 
  
 ARTICLE 15. PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 
  

15.1 Effective Date. No provision of this Article 15 shall be effective unless and until the Board has determined to implement such provision.

  
 15.2 Elections to Receive NSOs, Restricted Shares or Stock
Units. An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such
NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Article 15 shall be made at the beginning of a calendar year on a date and in a manner to be determined by the Board. Such an election shall be
irrevocable with respect to the calendar year for which the election is made. 
  

 9 

 15.3 Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted
Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner determined by the Board. The terms of such NSOs, Restricted Shares or Stock
Units shall also be determined by the Board. 
  
 ARTICLE 16.
LIMITATION ON RIGHTS. 
  
 16.1 Retention Rights.
Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain an Employee, Outside Director or Consultant. The Company and its Parents, Subsidiaries and Affiliates reserve the right to terminate the
service of any Employee, Outside Director or Consultant at any time, with or without cause, subject to applicable laws, the Company’s certificate of incorporation and by-laws and any applicable written employment agreement. 
  
 16.2 Stockholders’ Rights. A Participant shall have no dividend
rights, voting rights or other rights as a stockholder with respect to any Common Shares covered by his or her Award prior to the time when a stock certificate for such Common Shares is issued or, if applicable, the time when he or she becomes
entitled to receive such Common Shares by filing any required notice of exercise and paying any required Exercise Price. No adjustment shall be made for cash dividends or other rights for which the record date is prior to such time, except as
expressly provided in the Plan. 
  
 16.3 Regulatory
Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue Common Shares under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be
required. The Company reserves the right to restrict, in whole or in part, the delivery of Common Shares pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Common Shares, to their registration,
qualification or listing or to an exemption from registration, qualification or listing. 
  
 ARTICLE 17. WITHHOLDING TAXES. 
  
 17.1 General. To the extent required by applicable Federal, state, local or foreign law, a Participant, Permissible Assignee (if applicable), or successor shall make arrangements satisfactory to the Company for the satisfaction of
any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Common Shares or make any cash payment under the Plan until such obligations are satisfied. 
  
 17.2 Share Withholding. To the extent that applicable law subjects a
Participant, Permissible Assignee (if applicable), or successor to tax withholding obligations, the Committee may permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any Common Shares
that otherwise would be issued to him or her or by surrendering all or a portion of any Common Shares that he or she previously acquired; provided, however, that such withholding shall be allowed only to the extent that it does not trigger adverse
financial accounting consequences to the Company. Such Common Shares shall be valued at their Fair Market Value on the date when they are withheld or surrendered. 
  

 10 

 ARTICLE 18. FUTURE OF THE PLAN. 
  
 18.1 Term of the Plan. The Plan, as set forth herein, shall become effective on the Effective Date and shall remain
in existence until the 10th anniversary of the Effective Date, unless sooner terminated by the Board as provided in
Section 18.2 below. 
  
 18.2 Amendment or Termination. The
Board may, at any time and for any reason, amend or terminate the Plan. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules. No Awards
shall be granted under the Plan after the termination thereof. The termination of the Plan, or any amendment thereof, shall not adversely affect any Award previously granted under the Plan without the consent of the Participant. 
  
 ARTICLE 19. TRANSFERABILITY OF AWARDS. Unless explicitly provided for
in the applicable Award Agreement, an Award may not be sold, pledged, assigned, transferred or disposed of in any manner other than by will or the laws of descent and distribution and may be exercised, during the lifetime of the Participant, only by
the Participant. Notwithstanding the preceding sentence, the Committee, in its sole and absolute discretion may provide for the transferability of an Award in the specific Award Agreement, but only to the extent that the transferee of such an Award
is a Permissible Transferee. 
  
 ARTICLE 20.
DEFINITIONS. 
  
 20.1 “Affiliate”
means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than 50% of the voting securities of such entity. 
  
 20.2 “Award” means any award of an Option, an SAR, a Restricted Share or a Stock Unit under the Plan. 
  
 20.3 “Award Agreement” means individually or collectively, a
Stock Option Agreement, a Restricted Share Agreement, a Stock Appreciation Right Agreement, or a Stock Unit Agreement. 
  
 20.4 “Board” means the Company’s Board of Directors, as constituted from time to time. 
  
 20.5 “Change in Control” shall mean: 
  
 (a) The consummation of a merger or consolidation of the
Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization beneficially own immediately after such merger,
consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity;

  

 11 

 (b) The sale, transfer or other disposition of all or substantially all of the
Company’s assets; 
  
 (c) A change in the
composition of the Board, as a result of which fewer than 50% of the incumbent directors are directors who either (i) had been directors of the Company on the date 24 months prior to the date of the event that may constitute a Change in Control (the
“original directors”) or (ii) were elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or
nomination and the directors whose election or nomination was previously so approved; or 
  
 (d) Any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing at least 50% of the total voting power represented by the Company’s then outstanding voting securities. For purposes of this Paragraph (d), the term “person” shall have
the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a Parent or Subsidiary and (ii) a corporation
owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Common Shares of the Company. 
  
 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that
will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
  
 20.6 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 20.7 “Committee” means a committee of the Board, as described in Article 2. 
  
 20.8 “Common Share” means one share of the common
stock of the Company, par value $.001 per share. 
  
 20.9
“Company” means Motive, Inc., a Delaware corporation. 
  
 20.10 “Consultant” means a natural person who provides bona fide services to the Company, a Parent, a Subsidiary or an Affiliate as an independent contractor. Service as a Consultant shall be
considered employment for all purposes of the Plan, except as provided in Section 4.1. 
  
 20.11 “Disability” shall mean permanent and total disability as defined in Section 22(e)(3) of the Code. 
  

 12 

 20.12 “Effective Date” has the meaning set forth in Article I of the Plan.

  
 20.13 “Employee” means a common-law
employee of the Company, a Parent, a Subsidiary or an Affiliate. 
  
 20.14 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 20.15 “Exercise Price” in the case of an Option, means the amount for which one Common Share may be purchased upon exercise of
such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of an SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Common Share
in determining the amount payable upon exercise of such SAR. 
  
 20.16 “Fair Market Value” means the market price of Common Shares, determined by the Committee in good faith on such basis as it deems appropriate. Whenever possible, the determination of Fair Market Value by the
Committee shall be based on the prices reported in The Wall Street Journal or as reported directly to the Company by The NASDAQ Stock Market, or a stock exchange. Such determination shall be conclusive and binding on all persons. 

 
 20.17 “ISO” means an incentive stock option
described in Section 422(b) of the Code. 
  
 20.18
“NSO” means a stock option not described in Sections 422 of the Code. 
  
 20.19 “Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase Common Shares pursuant to Articles 5 and 7 of the Plan. 
  
 20.20 “Optionee” means a person or estate who holds
an Option or SAR. 
  
 20.21 “Outside
Director” shall mean a member of the Board who is not an Employee. Service as an Outside Director shall be considered employment for all purposes of the Plan, except as provided in Section 4.1. 
  
 20.22 “Parent” means any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 
  
 20.23 “Participant” means an Employee, Consultant, or Outside Director, who holds an Award under the
terms of the Plan. 
  
 20.24 “Permissible Assignee”
means an individual or entity designated in the applicable Award Agreement, to which the Participant has properly assigned an Award. For purposes of this Plan and applicable Award Agreements, a Permissible Assignee must be an individual or
entity as to which the underlying Common Shares shall be eligible for registration under the Securities Act of 1933 on a form S-8 registration statement promulgated by the SEC.  
  

 13 

 20.25 “Plan” means this Motive, Inc. Equity Incentive Plan, as amended from time
to time. 
  
 20.26 “Predecessor Plan”
means the Company’s 1997 Stock Option/Stock Issuance Plan. 
  
 20.27 “Restricted Share” means a Common Share awarded under the Plan pursuant to Article 9 of the Plan. 
  
 20.28 “Restricted Share Agreement” means the agreement between the Company and the recipient of a Restricted Share that contains
the terms, conditions and restrictions pertaining to such Restricted Share. 
  
 20.29 “SEC” means the U.S. Securities and Exchange Commission. 
  
 20.30 “Stock Appreciation Right” or “SAR” means a stock appreciation right granted under the Plan pursuant to Article 8
of the Plan. 
  
 20.31 “SAR Agreement”
means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her SAR. 
  
 20.32 “Stock Option Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and
restrictions pertaining to his or her Option. 
  
 20.33
“Stock Unit” means a bookkeeping entry representing the equivalent of one Common Share, as awarded under the Plan pursuant to Article 10 of the Plan. 
  
 20.34 “Stock Unit Agreement” means the agreement between the Company and the recipient of a Stock
Unit that contains the terms, conditions and restrictions pertaining to such Stock Unit. 
  
 20.35 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in
the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the
Plan shall be considered a Subsidiary commencing as of such date. 
  

 14Motive, Inc. Employee Stock Purchase Plan

 Exhibit 4.4 
  

MOTIVE, INC. 
  
 EMPLOYEE STOCK PURCHASE PLAN 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	SECTION 1.     PURPOSE OF THE PLAN.	  	1
		
	SECTION 2.     ADMINISTRATION OF THE PLAN.	  	1
	        (a)	  	Committee Composition	  	1
	(b)	  	Committee Responsibilities	  	1
		
	SECTION 3.     ENROLLMENT AND PARTICIPATION.	  	1
	(a)	  	Offering Periods	  	1
	(b)	  	Enrollment	  	1
	(c)	  	First Offering Period	  	2
	(d)	  	Duration of Participation	  	2
	(e)	  	Applicable Offering Period	  	2
		
	SECTION 4.     EMPLOYEE CONTRIBUTIONS.	  	3
	(a)	  	Frequency of Payroll Deductions	  	3
	(b)	  	Amount of Payroll Deductions	  	3
	(c)	  	Changing Withholding Rate	  	3
	(d)	  	Discontinuing Payroll Deductions	  	3
	(e)	  	Limit on Number of Elections	  	3
		
	SECTION 5.     WITHDRAWAL FROM THE PLAN.	  	3
	(a)	  	Withdrawal	  	3
	(b)	  	Re-Enrollment After Withdrawal	  	3
		
	SECTION 6.     CHANGE IN EMPLOYMENT STATUS.	  	4
	(a)	  	Termination of Employment	  	4
	(b)	  	Leave of Absence	  	4
	(c)	  	Death	  	4
		
	SECTION 7.     PLAN ACCOUNTS AND PURCHASE OF SHARES.	  	4
	(a)	  	Plan Accounts	  	4
	(b)	  	Purchase Price	  	4
	(c)	  	Number of Shares Purchased	  	4
	(d)	  	Available Shares Insufficient	  	5
	(e)	  	Issuance of Stock	  	5
	(f)	  	Tax Withholding	  	5
	(g)	  	Unused Cash Balances	  	5
	(h)	  	Stockholder Approval	  	5
		
	SECTION 8.     LIMITATIONS ON STOCK OWNERSHIP.	  	5
	(a)	  	Five Percent Limit	  	5
	(b)	  	Dollar Limit	  	5

  

 i 

					
	SECTION 9.       RIGHTS NOT TRANSFERABLE.	  	6
		
	SECTION 10.     NO RIGHTS AS AN EMPLOYEE.	  	6
		
	SECTION 11.     NO RIGHTS AS A STOCKHOLDER.	  	6
		
	SECTION 12.     Securities Law Requirements.	  	6
		
	SECTION 13.     STOCK OFFERED UNDER THE PLAN.	  	6
	        (a)	  	Authorized Shares	  	6
	(b)	  	Anti-Dilution Adjustment	  	6
	(c)	  	Dissolution or Liquidation	  	7
	(d)	  	Change in Control	  	7
		
	SECTION 14.     AMENDMENT OR DISCONTINUANCE.	  	7
		
	SECTION 15.     DEFINITIONS.	  	7
	(a)	  	“Board”	  	7
	(b)	  	“Code”	  	7
	(c)	  	“Committee”	  	7
	(d)	  	“Company”	  	8
	(e)	  	“Compensation”	  	8
	(f)	  	“Change in Control”	  	8
	(g)	  	“Eligible Employee”	  	9
	(h)	  	“Exchange Act”	  	9
	(i)	  	“Fair Market Value”	  	9
	(j)	  	“Offering Period”	  	9
	(k)	  	“Participant”	  	9
	(l)	  	“Participating Company”	  	9
	(m)	  	“Plan”	  	9
	(n)	  	“Plan Account”	  	9
	(o)	  	“Purchase Price”	  	10
	(p)	  	“Stock”	  	10
	(q)	  	“Subsidiary”	  	10

  

 ii 

 MOTIVE, INC. 
  
 EMPLOYEE STOCK PURCHASE
PLAN* 
  
 SECTION 1. PURPOSE OF THE PLAN. 
  
 The Board adopted the Plan effective as of the effective date of the
Company’s registration statement on the Form S-1 relating to the initial public offering of its Stock (the “Effective Date”). The purpose of the Plan is to provide Eligible Employees with an opportunity to increase their proprietary
interest in the success of the Company by purchasing Stock from the Company on favorable terms and to pay for such purchases through payroll deductions. The Plan is intended to qualify under section 423 of the Code. Therefore, the provisions of the
Plan shall be construed so as to extend and limit Plan participation in a manner that is consistent with the requirements of the Code. 
  
 SECTION 2. ADMINISTRATION OF THE PLAN. 
  
 (a) Committee Composition. The Committee shall administer the Plan. The Committee shall consist exclusively of one or more directors of the
Company, who shall be appointed by the Board. 
  
 (b) Committee
Responsibilities. The Committee shall have full and exclusive discretionary authority to: (i) construe, interpret and apply the terms of the Plan, (ii) make policy decisions relating to the operation of the Plan, (iii) determine eligibility and
to adjudicate all disputed claims filed under the Plan, and (iv) adopt such rules, guidelines and forms as it deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall be final and binding on all persons.

  
 SECTION 3. ENROLLMENT AND PARTICIPATION. 
  
 (a) Offering Periods. Each Offering Period shall consist of a 6-month
period. The first 6-month period shall commence on February 1 of each calendar year and shall end on July 31 of the same calendar year. The second 6-month period shall commence on August 1 of each calendar year and end on January 31 of the next
calendar year. However, if either February 1, July 31, August 1 or January 31 is not a Trading Day, then the Offering Period shall commence or end (as applicable) on the first Trading Day immediately prior to such date(s). Notwithstanding the above,
the first Offering Period shall commence on the Effective Date and shall terminate on July 31, 2004. 
  
 (b) Enrollment. Any individual who, on the day preceding the first day of an Offering Period, qualifies as an Eligible Employee may elect to become
a Participant in the Plan for such Offering Period by executing the enrollment form prescribed for this purpose by the Committee. The enrollment form shall be filed with the Company at the prescribed location not 
  

	*	The Committee has determined that this Plan, including, without limitation, the description herein of the number of shares of the Company’s Stock available for purchase
hereunder, already gives effect to the one-for-four reverse split of the Company’s outstanding Common Stock and Preferred Stock to occur immediately prior to the closing of its initial public offering (the “Reverse Split”) and no
adjustment shall be made to this Plan or the number of shares of the Company’s Stock available for purchase hereunder in connection with the effectiveness of the Reverse Split. 

 later than 15 days prior to the commencement of such Offering Period, except that the Company may announce a deadline
that is less than 15 days prior to the commencement of the first Offering Period. 
  
 (c) First Offering Period. Notwithstanding the above paragraph, any individual who qualifies as an Eligible Employee immediately prior to the first Offering Period under the Plan shall automatically be enrolled
in the first Offering Period. Such Eligible Employee shall be entitled to continue his or her participation in the first Offering Period only if he or she submits to the Company’s payroll office (or its designee) a properly completed enrollment
agreement in the form provided by the Committee (i) no earlier than the effective date of the filing of the Company’s Registration Statement on Form S-8 with respect to the shares of Common Stock issuable under the Plan (the “S-8 Effective
Date”) and (ii) no later than 10 days after the S-8 Effective Date (the “Enrollment Window”). A participant’s failure to submit the enrollment agreement during the Enrollment Window pursuant to this paragraph shall result in the
automatic withdrawal of his or her participation in the first Offering Period in accordance with the terms of Section 5(a). 
  
 (d) Duration of Participation. Once enrolled in the Plan, a Participant shall continue to participate in the Plan until he or she ceases to be an
Eligible Employee, withdraws from the Plan under Section 5(a) or reaches the end of the Offering Period in which his or her employee contributions were discontinued under Section 4(d) or 8(b). A Participant who discontinued employee contributions
under Section 4(d) or withdrew from the Plan under Section 5(a) may again become a Participant, if he or she then is an Eligible Employee, by following the procedure described in Subsection (b) above. A Participant whose employee contributions were
discontinued automatically under Section 8(b) shall automatically resume participation at the beginning of the Offering Period commencing in the next calendar year, if he or she then is an Eligible Employee. 
  
 (e) Applicable Offering Period. An applicable Offering Period shall be
determined as follows: 
  
 (i) Once a Participant
is enrolled in the Plan for an Offering Period, such Offering Period shall continue to apply to him or her until the earliest of (A) the end of such Offering Period, or (B) the end of his or her participation under Subsection (d) above. 

 
 (ii) When a Participant reaches the end of an Offering
Period, such Participant shall automatically be re-enrolled for the Offering Period that commences immediately after the end of such Offering Period, unless such Participant elects not to be re-enrolled in such subsequent Offering Period by
submitting to the Company’s payroll office (or its designee) a properly completed change in enrollment agreement in the form provided by the Committee no later than 10 days prior to the start of the subsequent Offering Period. 
  
 (iii) Any other provision of the Plan notwithstanding, the
Company (at its sole discretion) may determine prior to the commencement of any new Offering Period that all Participants shall be re-enrolled for such new Offering Period. 
  

 2 

 SECTION 4. EMPLOYEE CONTRIBUTIONS. 
  
 (a) Frequency of Payroll Deductions. A Participant may purchase shares of Stock under the Plan solely by means of
payroll deductions. Payroll deductions, as designated by the Participant pursuant to Subsection (b) below, shall occur on each payday during participation in the Plan. 
  
 (b) Amount of Payroll Deductions. An Eligible Employee shall designate on the enrollment form the portion of his or
her Compensation that he or she elects to have withheld for the purchase of Stock. Such portion shall be a whole percentage of the Eligible Employee’s Compensation, but not less than 1% or more than 15%. 
  
 (c) Changing Withholding Rate. If a Participant wishes to change the
rate of payroll withholding, he or she may do so by filing a new enrollment form with the Company at the prescribed location at any time. The new withholding rate shall be effective as soon as reasonably practicable after the Company has received
such form. The new withholding rate shall be a whole percentage of the Eligible Employee’s Compensation, but not less than 1% or more than 15%. 
  
 (d) Discontinuing Payroll Deductions. If a Participant wishes to discontinue employee contributions entirely, he or she may do so by filing a new
enrollment form with the Company at the prescribed location at any time. Payroll withholding shall cease as soon as reasonably practicable after the Company has received such form. A Participant who has discontinued employee contributions may resume
such contributions by filing a new enrollment form with the Company at the prescribed location. Payroll withholding shall resume as soon as reasonably practicable after the Company has received such form. 
  
 (e) Limit on Number of Elections. No Participant shall make more than
two elections under Subsection (c) or (d) above during any Offering Period. 
  
 SECTION 5. WITHDRAWAL FROM THE PLAN. 
  
 (a)
Withdrawal. A Participant may elect to withdraw from the Plan by filing the prescribed form with the Company at the prescribed location at any time before the last day of an Offering Period. As soon as reasonably practicable thereafter,
payroll deductions shall cease and the entire amount credited to the Participant’s Plan Account shall be refunded to him or her in cash, without interest. No partial withdrawals shall be permitted. 
  
 (b) Re-Enrollment After Withdrawal. A former Participant who has
withdrawn from the Plan shall not be a Participant until he or she re-enrolls in the Plan under Section 3(c). Re-enrollment may be effective only at the commencement of an Offering Period. 
  

 3 

 SECTION 6. CHANGE IN EMPLOYMENT STATUS. 
  
 (a) Termination of Employment. Termination of employment as an Eligible Employee for any reason, including death,
shall be treated as an automatic withdrawal from the Plan under Section 5(a). (A transfer from one Participating Company to another shall not be treated as a termination of employment.) 
  
 (b) Leave of Absence. For purposes of the Plan, employment shall not be deemed to terminate when the Participant goes
on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved by the Company in writing. Employment, however, shall be deemed to terminate 90 days after the Participant goes on a leave, unless a contract
or statute guarantees his or her right to return to work. Employment shall be deemed to terminate in any event when the approved leave ends, unless the Participant immediately returns to work. 
  
 (c) Death. In the event of the Participant’s death, the amount
credited to his or her Plan Account shall be paid to a beneficiary designated by him or her for this purpose on the prescribed form or, if none, to the Participant’s estate. Such form shall be valid only if it was filed with the Company at the
prescribed location before the Participant’s death. 
  
 SECTION 7. PLAN
ACCOUNTS AND PURCHASE OF SHARES. 
  
 (a) Plan
Accounts. The Company shall maintain a Plan Account on its books in the name of each Participant. All amounts deducted from the Participant’s Compensation under the Plan shall be credited to the Participant’s Plan Account. Amounts
credited to Plan Accounts shall not be trust funds and may be commingled with the Company’s general assets and applied to general corporate purposes. No interest shall be credited to Plan Accounts. 
  
 (b) Purchase Price. The Purchase Price for each share of Stock
purchased at the close of an Offering Period shall be the lower of: 
  
 (i) 85% of the Fair Market Value of such share on the last Trading Day in such Offering Period; or 
  
 (ii) 85% of the Fair Market Value of such share on the first Trading Day in such Offering Period, but in the case of the first Offering
Period under the Plan, 85% of the Fair Market Value on the Effective Date. 
  
 (c) Number of Shares Purchased. As of the last day of each Offering Period, each Participant shall be deemed to have elected to purchase the number of shares of Stock calculated in accordance with this
Subsection (c), unless the Participant has previously elected to withdraw from the Plan in accordance with Section 5(a). The amount then in the Participant’s Plan Account shall be divided by the Purchase Price, and the number of shares that
results shall be purchased from the Company with the funds in the Participant’s Plan Account. The foregoing notwithstanding, no Participant shall purchase more than 25,000 shares of Stock with respect to any Offering Period or more than the
dollar limitation set forth in Section 8(b). 
  

 4 

 (d) Available Shares Insufficient. In the event that the aggregate number of shares that all
Participants elect to purchase during an Offering Period exceeds the maximum number of shares remaining available for issuance under Section 13(a), then the number of shares to which each Participant is entitled shall be determined by multiplying
the number of shares available for issuance by a fraction. The numerator of such fraction is the number of shares that such Participant has elected to purchase, and the denominator of such fraction is the number of shares that all Participants have
elected to purchase. 
  
 (e) Issuance of Stock.
Certificates representing the shares of Stock purchased by a Participant under the Plan shall be issued to him or her as soon as reasonably practicable after the close of the applicable Offering Period, except that the Committee may determine that
such shares shall be held for each Participant’s benefit by a broker designated by the Committee (unless the Participant has elected that certificates be issued to him or her). 
  
 (f) Tax Withholding. To the extent required by applicable Federal, state, local or foreign law, a Participant or a
successor (if applicable) shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any shares of Stock under the
Plan until such obligations are satisfied. 
  
 (g) Unused Cash
Balances. An amount remaining in the Participant’s Plan Account that represents the Purchase Price for any fractional share shall be carried over in the Participant’s Plan Account to the next Offering Period. Any amount remaining in
the Participant’s Plan Account that represents the Purchase Price for whole shares that could not be purchased by reason of Subsection (d) above, Section 8(b) or Section 13(a) shall be refunded to the Participant in cash, without interest.

  
 (h) Stockholder Approval. Notwithstanding any other
provisions of the Plan, shares of Stock shall not be purchased under the Plan unless and until the Company’s stockholders have approved the adoption of the Plan. 
  
 SECTION 8. LIMITATIONS ON STOCK OWNERSHIP. 
  

(a) Five Percent Limit. Notwithstanding any other provision of the Plan, a Participant shall not be granted a right to purchase Stock under the
Plan if such Participant, immediately after his or her election to purchase such Stock, would own stock possessing more than 5% of the total combined voting power or value of all classes of stock of the Company or any parent or Subsidiary of the
Company as described in Section 423(b)(3) of the Code. 
  
 (b)
Dollar Limit. Notwithstanding any other provision of the Plan, a Participant shall not purchase Stock with a Fair Market Value in excess $25,000 during any calendar year (under this Plan and all other employee stock purchase plans of the
Company or any parent or Subsidiary of the Company). For purposes of this Subsection (b), the Fair Market Value of Stock shall be determined in each case as of the beginning of the Offering Period in which such Stock is purchased. Employee stock
purchase plans not described in Section 423 of the Code shall be disregarded for purposes of this Section 8(b). 
  

 5 

 SECTION 9. RIGHTS NOT TRANSFERABLE. 
  
 The rights of any Participant under the Plan, or any Participant’s interest in any Stock or moneys to which he or she
may be entitled under the Plan, shall not be transferable by voluntary or involuntary assignment or by operation of law, or in any other manner other than by beneficiary designation or the laws of descent and distribution. If a Participant in any
manner attempts to transfer, assign or otherwise encumber his or her rights or interest under the Plan, other than by beneficiary designation or the laws of descent and distribution, then such act shall be treated as an election by the Participant
to withdraw from the Plan under Section 5(a). 
  
 SECTION 10. NO RIGHTS AS AN
EMPLOYEE. 
  
 Nothing in the Plan or in any right granted
under the Plan shall confer upon the Participant any right to continue in the employ of a Participating Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Participating Companies or of
the Participant, which rights are hereby expressly reserved by each, to terminate his or her employment at any time and for any reason, with or without cause. 
  

SECTION 11. NO RIGHTS AS A STOCKHOLDER. 
  
 A Participant shall have no rights as a stockholder with respect to any shares of Stock that he or she may have a right to purchase under the Plan until
such shares have been purchased at the end of the applicable Offering Period. 
  
 SECTION 12. SECURITIES LAW REQUIREMENTS. 
  
 Shares of Stock shall not be issued under the Plan unless the issuance and delivery of such shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended,
the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded. 
  
 SECTION 13. STOCK OFFERED UNDER THE PLAN. 
  
 (a) Authorized Shares. The number of shares of Stock available for
purchase under the Plan shall be 750,000. On January 1 of each year, commencing with January 1, 2005, the aggregate number of shares of Stock available for purchase during the life of the Plan shall automatically be increased by a number equal to
the lesser of (a) 2% of the total number of shares of Stock then outstanding, (b) 500,000 shares, or (c) a lesser number determined by the Board. 
  
 (b) Anti-Dilution Adjustment. In the event that any dividend or other distribution (whether in the form of cash, Stock, other securities, or other
property), recapitalization, stock-split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Stock or other securities of the Company, or other change in the corporate structure of
the Company affecting the Stock such that an 
  

 6 

 adjustment is determined by the Committee (in its sole discretion) to be appropriate in order to prevent dilution or
enlargement of benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it deems equitable, adjust the number and class of Stock which are reserved for issuance under the Plan pursuant
to Section 13(a) and the number, class, and price of Stock covered by each then outstanding right to purchase Stock hereunder, and the numerical share limit in Section 7(c). 
  
 (c) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Offering
Period then in progress shall be shortened and shall terminate immediately prior to the consummation of such proposed dissolution or liquidation (the “Last Purchase Date”), unless provided otherwise by the Board. The Board shall notify
each participant in writing, at least 15 days prior to the Last Purchase Date, that the Offering Period has been shortened, and that the shares of Stock shall be automatically purchased on the Last Purchase Date, unless prior to such date the
Participant has withdrawn from the Offering Period as provided in Section 5(a) or 8(b). 
  
 (d) Change in Control. In the event of a Change of Control, the stock purchase rights under this Plan shall be assumed or substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. In the event that the successor corporation refuses to assume or substitute for such rights, any Offering Period then in progress shall terminate immediately prior to the consummation of such Change in Control (the “Last Purchase
Date”), unless provided otherwise by the Board. The Board shall notify each participant in writing, at least 15 days prior to the Last Purchase Date, that the Offering Period has been shortened, and that the shares of Stock shall be
automatically purchased on the Last Purchase Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 5(a) or 8(b). The Plan shall in no event be construed to restrict in any way the
Company’s right to undertake a dissolution, liquidation, merger, consolidation or other reorganization. 
  
 SECTION 14. AMENDMENT OR DISCONTINUANCE. 
  
 The Board shall have the right to amend, suspend or terminate the Plan at any time and without notice. Except as provided in Section 13, any increase in the aggregate number of shares of Stock to be issued under the
Plan shall be subject to approval by a vote of the stockholders of the Company. In addition, any other amendment of the Plan shall be subject to approval by a vote of the stockholders of the Company to the extent required by an applicable law or
regulation. Unless terminated earlier as described above, the Plan shall terminate automatically 10 years after its adoption by the Board. 
  
 SECTION 15. DEFINITIONS. 
  
 (a) “Board” means the Board of Directors of the Company, as constituted from time to time. 
  
 (b) “Code” means the Internal Revenue Code of 1986, as
amended. 
  
 (c) “Committee” means a committee of
the Board, as described in Section 2. 
  

 7 

 (d) “Company” means Motive, Inc., a Delaware corporation. 
  
 (e) “Compensation” means the total compensation paid in cash
to a Participant by a Participating Company, including salaries, wages, bonuses, incentive compensation, commissions, overtime pay and shift premiums. “Compensation” shall exclude all non-cash items, moving or relocation allowances,
cost-of-living equalization payments, car allowances, tuition reimbursements, imputed income attributable to cars or life insurance, severance pay, fringe benefits, contributions or benefits received under employee benefit plans, income attributable
to the exercise of stock options, and similar items. The Committee shall determine whether a particular item is included in Compensation. 
  
 (f) “Change in Control” means: 
  
 (i) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if
persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization beneficially own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the
outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; 
  
 (ii) The sale, transfer or other disposition of all or substantially all of the Company’s assets;

  
 (iii) A change in the composition of the
Board, as a result of which fewer than 50% of the incumbent directors are directors who either (i) had been directors of the Company on the date 24 months prior to the date of the event that may constitute a Change in Control (the “original
directors”) or (ii) were elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the
directors whose election or nomination was previously so approved; or 
  
 (iv) Any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least
50% of the total voting power represented by the Company’s then outstanding voting securities. For purposes of this Paragraph (d), the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange
Act but shall exclude (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a parent or Subsidiary of the Company and (ii) a corporation owned directly or indirectly by the stockholders of the
Company in substantially the same proportions as their ownership of the Stock of the Company. 
  
 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same
proportions by the persons who held the Company’s securities immediately before such transaction. 
  

 8 

 (g) “Eligible Employee” means any employee of a Participating Company whose customary
employment is for more than five months per calendar year and for more than 20 hours per week. The foregoing notwithstanding, an individual shall not be considered an Eligible Employee if his or her participation in the Plan is prohibited by the law
of any country that has jurisdiction over him. 
  
 (h)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (i) “Fair Market Value” means the market price of Stock, determined by the Committee as follows: 
  
 (i) If the Stock was traded on The NASDAQ Stock Market on the date in question, then the Fair Market Value shall be equal to the
last-transaction price quoted for such date by The NASDAQ Stock Market; 
  
 (ii) If the Stock was traded on a stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported by the applicable composite transactions report for such date; or

  
 (iii) If none of the foregoing provisions is
applicable, then the Committee shall determine the Fair Market Value in good faith on such basis as it deems appropriate. 
  
 Whenever possible, the determination of Fair Market Value by the Committee shall be based on the prices reported in The Wall Street Journal or as reported directly
to the Company by The NASDAQ Stock Market or a stock exchange. Such determination shall be conclusive and binding on all persons. 
  
 (j) “Offering Period” means a 6-month period with respect to which the right to purchase Stock may be granted under the Plan, as
determined pursuant to Section 3(a) and during which contributions may be made toward the purchase of stock under the Plan. 
  
 (k) “Participant” means an Eligible Employee who elects to participate in the Plan, as provided in Section 3(c). 
  
 (l) “Participating Company” means (i) the Company and (ii)
each present or future Subsidiary designated by the Committee as a Participating Company. 
  
 (m) “Plan” means this Motive, Inc. Employee Stock Purchase Plan, as it may be amended from time to time. 
  
 (n) “Plan Account” means the hypothetical bookkeeping account established for each Participant pursuant to Section 7(a). 
  

 9 

 (o) “Purchase Price” means the price at which Participants may purchase Stock under the
Plan, as determined pursuant to Section 7(b). 
  
 (p)
“Stock” means the Common Stock of the Company. 
  
 (q) “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 (r) “Trading Day” means a day on which The NASDAQ Stock Market is open for trading. 
  

 10

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