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Exhibit 10.17    
  

CALDERA INTERNATIONAL, INC  

2002 OMNIBUS STOCK INCENTIVE PLAN  

	1.
	Establishment
and Purpose. 

        There
is hereby adopted the Caldera International, Inc. 2002 Omnibus Stock Incentive Plan (the "Plan"). The Plan shall be in addition to (but except as provided in
Section 3(a) below shall not supplant or be construed to amend or terminate) the Caldera Systems, Inc. 1999 Omnibus Stock Incentive Plan. The Plan is intended to promote the
interests of the Company and the stockholders of the Company by providing officers, other employees of the Company, directors who are not employees of the Company, and other persons who are expected
to make a long-term contribution to the success of the Company with appropriate incentives and rewards to encourage them to enter into and continue in the employ of the Company and/or to
acquire a proprietary interest in the long-term success of the Company, thereby aligning their interest more closely to the interest of stockholders. 

	2.
	Definitions. 

        As
used in the Plan, the following definitions apply to the terms indicated below: 

	(a)
	"Award
Agreement" shall mean the written agreement between the Company and a Participant evidencing an Incentive Award.

	(b)
	"Board
of Directors" shall mean the Board of Directors of the Company.

	(c)
	"Cause,"
when used in connection with the termination of a Participant's employment by the Company, shall mean (i) the willful and continued failure by the Participant
substantially to perform his duties and obligations to the Company (other than any such failure resulting from his incapacity due to physical or mental illness) or (ii) the willful engaging by
the Participant in misconduct that is materially injurious to the Company. For purposes of this Section 2(c), no act, or failure to act, on a Participant's part shall be considered "willful"
unless done, or omitted to be done, by the Participant in bad faith and without reasonable belief that his action or omission was in the best interest of the Company. The Committee shall determine
whether a termination of employment is for Cause.

	(d)
	"Change
in Control" shall mean any of the following occurrences: 

        (i)
any "person," as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company), is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more
of the combined voting power of the Company's then outstanding securities; 

        (ii)
during any period of not more than two consecutive years (not including any period prior to the adoption of the Plan), individuals who at the beginning of such period
constitute the Board of Directors and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in
clause (i), (iii) or (iv) of this Section) whose election by the Board of Directors or nomination for election was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or 

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nomination for election was previously so approved, cease for any reason to constitute at least a majority thereof; 

        (iii)
the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than (A) a merger or consolidation that would result in
the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or (B) a merger or
consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no "person" (as herein above defined) acquires more than 50% of the combined voting power of the
Company's then outstanding securities; or 

        (iv)
the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the
Company's assets. 

	(e)
	"Code"
shall mean the Internal Revenue Code of 1986, as amended from time to time.

	(f)
	"Committee"
shall mean the Compensation Committee of the Board of Directors. The Committee shall consist of two or more persons each of whom is an "outside director" within the
meaning of Section 162(m) of the Code and a "Non-Employee Director" within the meaning of Rule 16b-3 under the Exchange Act (or who satisfies any other criteria
for administering employee benefit plans as may be specified by the Securities and Exchange Commission in order for transactions under such plan to be exempt from the provisions of
Section 16(b) of the Exchange Act).

	(g)
	"Company"
shall mean, Caldera International, Inc., a Delaware corporation.

	(h)
	"Common
Stock" shall mean the common stock of the Company, no par value per share.

	(i)
	"Disability"
shall mean: (1) any physical or mental condition that would qualify a Participant for a disability benefit under the long-term disability plan
maintained by the Company or a Subsidiary of the Company and applicable to such Participant; or (2) when used in connection with the exercise of an Incentive Stock Option following termination
of employment, disability within the meaning of Section 22(e)(3) of the Code.

	(j)
	"Effective
Date" shall mean the date upon which this Plan is adopted by the Board of Directors.

	(k)
	"Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended from time to time.

	(l)
	"Executive
Officer" shall have the meaning set forth in Rule 3b-7 promulgated under the Exchange Act.

	(m)
	"Exercise
Date" shall mean the date on which a Participant may exercise an Incentive Award.

	(n)
	"Fair
Market Value" of a share of Common Stock, as of a date of determination, shall mean (i) the closing sales price per share of Common Stock on the national securities
exchange on which such stock is principally traded for the last preceding date on which there was a sale of such stock on such exchange, or (ii) if the shares of Common Stock are not listed or
admitted to trading on any such exchange, the closing price as reported by the Nasdaq Stock Market for the last preceding date on which there was a sale of such stock on such exchange, or
(iii) if the shares of Common Stock are not then listed on the Nasdaq Stock Market, the average of the highest reported bid and lowest reported asked prices for the shares of Common Stock as
reported by the National Association of Securities Dealers, Inc. Automated 

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Quotations
System for the last preceding date on which there was a sale of such stock in such market, or (iv) if the shares of Common Stock are not then listed on a national securities
exchange or traded in an over-the-counter market, such value as determined by the Committee in good faith. 

	(o)
	"Incentive
Award" shall mean an Option, Tandem SAR, Stand-Alone SAR, Restricted Stock grant, Phantom Stock grant or Stock Bonus granted pursuant to the terms of the Plan.

	(p)
	"Incentive
Stock Option" shall mean an Option that is an "incentive stock option" within the meaning of Section 422 of the Code.

	(q)
	"Issue
Date" shall mean the date established by the Company on which certificates representing shares of Restricted Stock shall be issued by the Company pursuant to the terms of
Section 10(e)of the Plan.

	(r)
	"Non-Qualified
Stock Option" shall mean an Option that is not an Incentive Stock Option.

	(s)
	"Option"
shall mean an option to purchase shares of Common Stock granted pursuant to Section 7 of the Plan.

	(t)
	"Participant"
means any person who is both eligible to receive an Incentive Award pursuant to the Plan (as set forth in Section 5) and to whom an Incentive Award is granted
pursuant to the Plan, and, upon his or her death, his or her successors, heirs, executors and administrators, as the case may be.

	(u)
	"Phantom
Stock" shall mean the right, granted pursuant to Section 11 of the Plan, to receive in cash the Fair Market Value of a share of Common Stock.

	(v)
	"Plan"
shall mean this 2002 Omnibus Stock Incentive Plan, as amended from time to time.

	(w)
	"Reference
Value" shall mean, with respect to Stand-Alone SARs, the greater of the Fair Market Value or the value given by the Compensation Committee.

	(x)
	"Restricted
Stock" shall mean a share of Common Stock that is granted pursuant to the terms of Section 10 hereof and that is subject to the restrictions set forth in
Section 10 of the Plan.

	(y)
	"Rule 16b-3"
shall mean Rule 16b-3 promulgated under the Exchange Act.

	(z)
	"Section 162(m)"
shall mean Section 162(m) of the Code and the regulations promulgated thereunder.

	(aa)
	"Securities
Act" shall mean the Securities Act of 1933, as amended from time to time.

	(ab)
	"Stand-Alone
SAR" shall mean a stock appreciation right granted pursuant to Section 9 of the Plan that is not related to any Option.

	(ac)
	"Stock
Bonus" shall mean a bonus payable in shares of Common Stock granted pursuant to Section 12 of the Plan.

	(ad)
	"Subsidiary"
shall mean a "subsidiary corporation" within the meaning of Section 424(f) of the Code.

	(ae)
	"Tandem
SAR" shall mean a stock appreciation right granted pursuant to Section 8 of the Plan that is related to an Option.

	(af)
	"Termination
of employment," or words of similar import, in the Plan shall be deemed, (i) when applied to non-employee Directors, to mean "termination of service
as a director," and (ii) when applied to employee-Directors, to mean "termination of service as an employee and a director." Reference to "termination of employment," or words of similar
import, in the 

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Plan
shall not be deemed to apply to persons who were not employees or a director of the Company or a Subsidiary of the Company. 

	(ag)
	"Vesting
Date" shall mean the date established by the Committee on which an Incentive Award may vest. 

	3.
	Stock
Subject to the Plan.

	(a)
	Shares
Available for Awards. 

The
maximum number of shares of Common Stock reserved for issuance under the Plan shall be 1,500,000 shares (subject to adjustment as provided herein). The total number of shares reserved for issuance
hereunder may be authorized but unissued Common Stock or authorized and issued Common Stock held in the Company's treasury or acquired by the Company for the purposes of the Plan. The Committee may
direct that any stock certificate evidencing shares issued pursuant to the Plan shall bear a legend setting forth such restrictions on transferability as may apply to such shares pursuant to the Plan.
The grant of a Tandem SAR shall not reduce the number of shares of Common Stock with respect to which Incentive Awards may be granted pursuant to the Plan. Upon the exercise of any Tandem SAR, the
related Option shall be canceled to the extent of the number of shares of Common Stock as to which the Tandem SAR is exercised and, notwithstanding the foregoing, such number of shares shall no longer
be available for Incentive Awards under the Plan. Subject to adjustment under Section 3(c) below, the maximum number of shares of Common Stock that may be issued under the Plan shall be
increased as of November 1 each year, beginning November 1, 2003, by three percent (3%) of the total number of shares of Common Stock that are issued and outstanding on the immediately
preceding October 31st. This increase shall be in lieu of the increase provided for in Section 3(a) of the Caldera Systems, Inc. 1999 Omnibus Stock Incentive
Plan following the increase scheduled for November 1, 2002 pursuant to the terms of that plan, and Section 3(a) of the Caldera Systems, Inc. 1999 Omnibus Stock Incentive
Plan is hereby amended to provide that no automatic annual increase in the number of shares of Common Stock authorized for issuance under that plan shall occur after November 1, 2002. Any
provision herein to the contrary notwithstanding, the maximum number of shares of Common Stock that may issued pursuant to Incentive Stock Options granted hereunder shall not exceed 1,500,000, subject
to adjustment under Section 3(c) below. 

	(b)
	Individual
Limitation. 

The
total number of shares of Common Stock subject to Incentive Awards (including Incentive Awards payable in cash but denominated as shares of Common Stock, i.e., Stand-Alone SARs and Phantom Stock),
awarded to any employee during any tax year of the Company, shall not exceed 400,000 shares. Determinations under the preceding sentence shall be made in a manner that is consistent with
Section 162(m) of the Code. 

	(c)
	Adjustment
for Change in Capitalization. 

In
the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Common Stock, or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share exchange, or other similar corporate transaction or event, affects the Common Stock such that an
adjustment is appropriate in order to prevent dilution or enlargement of the rights of Participants under the Plan, then the Committee shall make such equitable changes or adjustments as it deems
necessary or appropriate to any or all of (i) the number and kind of shares of stock that may thereafter be issued in connection with Incentive Awards, (ii) the number and kind of shares
of stock issued or issuable in respect of outstanding Incentive Awards, and (iii) the exercise price, grant price, or purchase price relating to any Incentive 

4

 

Award; provided that, with respect to Incentive Stock Options, such adjustment shall be made in accordance with Section 424 of the Code. 

	(d)
	Re-Use
of Shares. 

The
following shares of Common Stock shall again become available for Incentive Awards: any shares subject to an Incentive Award that remain unissued upon the cancellation, surrender, exchange or
termination of such award for any reason whatsoever; any shares of Restricted Stock forfeited; and any shares in respect of which a stock appreciation right is settled for cash. 

	4.
	Administration
of the Plan. 

        The
Plan shall be administered by the Committee. The Committee shall have the authority in its sole discretion, subject to and not inconsistent with the express provisions of the Plan,
to administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or
necessary or advisable in the administration of the Plan, including, without limitation, the authority to grant Incentive Awards; to determine the persons to whom and the time or times at which
Incentive Awards shall be granted; to determine the type and number of Incentive Awards to be granted, the number of shares of Stock to which an Award may relate and the terms, conditions,
restrictions and performance criteria relating to any Incentive Award; to determine whether, to what extent, and under what circumstances an Incentive Award may be settled, canceled, forfeited,
exchanged, or surrendered; to subject shares of Stock to which an Award may relate to rights of repurchase or rights of refusal in favor of the Company under the circumstances and upon the terms set
forth in an Award Agreement; to make adjustments in the performance goals in recognition of unusual or non-recurring events affecting the Company or the financial statements of the Company
(to the extent in accordance with Section 162(m)of the Code, if applicable), or in response to changes in applicable laws, regulations, or accounting principles; to construe and interpret the
Plan and any Incentive Award; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine the terms and provisions of Award Agreements; and to make all other
determinations deemed necessary or advisable for the administration of the Plan. 

        The
Committee may, in its absolute discretion, without amendment to the Plan, (i) accelerate the date on which any Tandem SAR or Stand-Alone SAR or Incentive Award relating to
Phantom Stock granted under the Plan becomes exercisable, waive or amend the operation of Plan provisions respecting exercise after termination of employment or otherwise adjust any of the terms of
such Option or Stand-Alone SAR, and (ii) accelerate the Exercise Date or Issue Date, or waive any condition imposed hereunder, with respect to any share of Restricted Stock or Phantom Stock or
otherwise adjust any of the terms applicable to such share. 

        No
member of the Committee shall be liable for any action, omission or determination relating to the Plan, and the Company shall indemnify and hold harmless each member of the Committee
and each other director or employee of the Company to whom any duty or power relating to the administration or interpretation of the Plan has been delegated against any cost or expense (including
counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out of any action, omission or determination relating to the Plan, if, in either
case, such action, omission or determination was taken or made by such member, director or employee in good faith and in a manner such member, director or employee reasonably believed to be in or not
opposed to the best interests of the Company. 

	5.
	Eligibility.

        The
persons who shall be eligible to receive Incentive Awards pursuant to the Plan shall be all employees and directors of the Company and its Subsidiaries and such other persons whom
the Committee determines are expected to make a contribution to the Company; provided, however, that 

5

 

no Incentive Awards shall be granted to any "officers" or "directors" of the Company or its Subsidiaries (within the meaning of the rules of Nasdaq Stock Market or any other securities exchange on
which Company shares are traded) unless and until the shareholders of the Company formally
approve the Plan at a duly called shareholders meeting. Subject to the foregoing, the Committee may grant Incentive Awards to any, all or none of such eligible persons at any time, from time to time,
during the term of the Plan. Nothing herein shall require the Company to submit the Plan to Company shareholders for their approval and any Incentive Awards granted to persons other than Company
"officers" and "directors" shall be effective notwithstanding the absence of shareholder approval. 

	6.
	Awards
Under the Plan; Award Agreement. 

        The
Committee may grant Options, Tandem SARs, Stand-Alone SARs, shares of Restricted Stock, shares of Phantom Stock and Stock Bonuses, in such amounts and with such terms and conditions
as the Committee shall determine, subject to the provisions of the Plan. 

        Each
Incentive Award granted under the Plan (except an unconditional Stock Bonus) shall be evidenced by an Award Agreement that shall contain such provisions as the Committee may in its
sole discretion deem necessary or desirable. By accepting an Incentive Award, a Participant thereby agrees that the award shall be subject to all of the terms and provisions of the Plan and the
applicable Award Agreement. 

	7.
	Options.

	(a)
	Identification
of Options. 

Each
Option shall be clearly identified in the applicable Award Agreement as either an Incentive Stock Option or a Non-Qualified Stock Option. 

	(b)
	Exercise
Price. 

Each
Award Agreement with respect to an Option shall set forth the amount (the "option exercise price") payable by the grantee to the Company upon exercise of the Option. The Option exercise price per
share shall be set by the Committee in its discretion on a case by case basis, but in the case of an Incentive Stock Option shall not be less than the Fair Market Value of a share of Common Stock on
the date of grant. 

	(c)
	Term
and Exercise of Options. 

        (1)
Unless the applicable Award Agreement provides otherwise, an Option shall become cumulatively exercisable as to 25 percent of the shares covered thereby on each of the first,
second, third and fourth anniversaries of the date of grant. The Committee shall determine the expiration date of each Option; provided, however, that no Incentive Stock Option shall be exercisable
more than 10 years after the date of grant. Unless the applicable Award Agreement provides otherwise, no Option shall be exercisable prior to the first anniversary of the date of grant. 

        (2)
An Option shall be exercised by delivering notice to the Company's principal office, to the attention of its Secretary, no less than one business day in advance of the effective date
of the proposed exercise. An Option may also be exercised electronically by notifying the Company's agent, pursuant to the methods then in use by that agent. Such notice shall specify the number of
shares of Common Stock with respect to which the Option is being exercised and the effective date of the proposed exercise and shall be signed by the Participant or other person then having the right
to exercise the Option. Such notice may be withdrawn at any time prior to the close of business on the business day immediately preceding the effective date of the proposed exercise. Payment for
shares of Common Stock purchased upon the exercise of an Option shall be made on the effective date of such exercise by one or a 

6

 

combination of the following means: (i) in cash, by certified check, bank cashier's check or wire transfer; (ii) by delivering a properly executed exercise notice to the Company
together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds to pay the full amount of the Purchase Price, (iii) by
delivering shares of Common Stock owned by the Participant with appropriate stock powers, (iv) by electing to have the Company retain shares of Common Stock that would otherwise be issued on
the exercise of the Option, or (v) any combination of the foregoing forms. In determining the number of shares of Common Stock necessary to be delivered to or retained by the Company, such
shares shall be valued at their Fair Market Value as of the exercise date. 

        (3)
Certificates for shares of Common Stock purchased upon the exercise of an Option shall be issued in the name of the Participant or other person entitled to receive such shares, and
delivered to the Participant or such other person as soon as practicable following the effective date on which the Option is exercised. In the event of an exercise by way of electronic means, no
actual Certificates need be issued. 

	(d)
	Limitations
on Incentive Stock Options. 

        (1)
To the extent that the aggregate Fair Market Value of shares of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by a Participant during
any calendar year under the Plan and any other stock option plan of the Company (or any Subsidiary of the Company) shall exceed $100,000, or such higher value as may be permitted under
Section 422 of the Code, such Options shall be treated as Non-Qualified Stock Options. Such Fair Market Value shall be determined as of the date on which each such Incentive Stock
Option is granted. 

        (2)
No Incentive Stock Option may be granted to an individual if, at the time of the grant, such individual owns stock possessing more than ten percent of the total combined voting power
of all classes of stock of the Company unless (i) the exercise price per share of such Incentive Stock Option is at least 110 percent of the Fair Market Value of a share of Common Stock
at the time such Incentive Stock Option is granted and (ii) such Incentive Stock Option is not exercisable after the expiration of five years from the date such Incentive Stock Option is
granted. 

	(e)
	Effect
of Termination of Employment. 

        (1)
Unless the applicable Award Agreement provides otherwise, in the event that the employment of a Participant with the Company or a Subsidiary of the Company shall terminate for any
reason other than death, Disability or Cause, (i) Options granted to such Participant, to the extent that they are exercisable at the time of such termination, shall remain exercisable until
the date that is ninety (90) days (or 120 days in the case of a "Non-Qualified Stock Option") after such termination, on which date they shall expire, and (ii) Options
granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination. Notwithstanding the
foregoing, no Option shall be exercisable after the expiration of its term. 

        (2)
Unless the applicable Award Agreement provides otherwise, in the event that the employment of a Participant with the Company or a Subsidiary of the Company shall terminate on account
of the Disability or death of the Participant (i) Options granted to such Participant, to the extent that they were exercisable at the time of such termination, shall remain exercisable until
the first anniversary of such termination, on which date they shall expire, and (ii) Options granted to such Participant, to the extent that they were not exercisable at the time of such
termination, shall expire at the close of business on the date of 

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such termination. Notwithstanding the foregoing, no Option shall be exercisable after the expiration of its term. 

        (3)
Unless an applicable Award Agreement issued after the date hereof provides otherwise, if a Participant's employment with the Company or a Subsidiary of the Company is terminated for
Cause, Options granted to the Participant, to the extent they are then exercisable, shall remain exercisable for 30 days following the date of termination of employment, on which date they
shall expire. Notwithstanding the foregoing, no Option shall be exercisable after expiration of its term. 

	(f)
	Effect
of Change in Control. 

Upon
the occurrence of a Change in Control, (i) Options granted to a Participant, to the extent that they were exercisable at the time of a Change in Control, shall remain exercisable until
their expiration notwithstanding the provisions of Section 7(e)(1) and (2) of the Plan, and (ii) Options granted to such Participant, to the extent they were not
exercisable at the time of a Change in Control, shall expire at the close of business on the date of such Change in Control. Notwithstanding the foregoing, no Option shall be exercisable after the
expiration of its term. Any vested, exercisable Options outstanding at the time of a Change in Control shall be cashed out, converted to options of the acquiring entity, assumed by the acquiring
entity or otherwise disposed of in the manner provided in any shareholder-approved agreement or plan governing or providing for such Change in Control ("Change in Control Agreement"); provided that
any such cash-out, conversion, assumption or disposition of the Options shall not deprive the Option holder of the inherent value of his Options, measured solely by the excess of the Fair
Market Value of the underlying Option shares immediately prior to the Change in Control over the Option exercise price, without the holder's consent. In the absence of such governing provisions in a
Change in Control Agreement, the Committee in its sole discretion may on a case by case basis require any vested, exercisable Options that remain outstanding upon a Change in Control to be cashed out
and terminated in exchange for a lump sum cash payment, shares of the acquiring entity or a combination thereof equal in value to the fair market value of the Option, measured in the manner described
above, immediately prior to the Change in Control. Any non-vested Options shall terminate upon a Change in Control unless: (i) otherwise provided in the Change in Control Agreement
or in a written agreement, such as a severance agreement, between the Company and the Participant; or (ii) the Committee in its sole discretion on a case by case basis elects in writing to
waive termination 

8

  

	8.
	Tandem
SARs. 

        The
Committee may grant in connection with any Option granted hereunder one or more Tandem SARs relating to a number of shares of Common Stock less than or equal to the number of shares
of Common Stock subject to the related Option. A Tandem SAR may be granted at the same time as, or, in the case of a Non-Qualified Stock Option, subsequent to the time that, its related
Option is granted. 

	(a)
	Benefit
Upon Exercise. 

The
exercise of a Tandem SAR with respect to any number of shares of Common Stock shall entitle the Participant to a cash payment, for each such share, equal to the excess of (i) the Fair
Market Value of a share of Common Stock on the exercise date over (ii) the option exercise price per share of the related Option. Such payment shall be made as soon as practicable after the
effective date of such exercise. 

	(b)
	Term
and Exercise of Tandem SAR. 

        (1)
A Tandem SAR shall be exercisable only if and to the extent that its related Option is exercisable. 

        (2)
The exercise of a Tandem SAR with respect to a number of shares of Common Stock shall cause the immediate and automatic cancellation of its related Option with respect to an equal
number of shares. The exercise of an Option, or the cancellation, termination or expiration of an Option (other than pursuant to this Section 8(b)(2)), with respect to a number of shares of
Common Stock shall cause the automatic and immediate cancellation of any related Tandem SARs to the extent that the number of shares of Common Stock remaining subject to such Option is less than the
number of shares then subject to such Tandem SAR. Such Tandem SARs shall be canceled in the order in which they become exercisable. 

        (3)
No Tandem SAR shall be assignable or transferable otherwise than together with its related Option, and any such transfer or assignment will be subject to the provisions of
Section 20 of the Plan. 

        (4)
A Tandem SAR shall be exercisable by delivering notice to the Company's principal office, to the attention of its Secretary, no less than one business day in advance of the effective
date of the proposed exercise. A Tandem SAR may also be exercised electronically by notifying the Company's agent, pursuant to the methods then in use by that agent. Such notice shall specify the
number of shares of Common Stock with respect to which the Tandem SAR is being exercised and the effective date of the proposed exercise and shall be signed by the Participant or other person then
having the right to exercise the Option to which the Tandem SAR is related. Such notice may be withdrawn at any time prior to the close of business on the business day immediately preceding the
effective date of the proposed exercise. 

	9.
	Stand-Alone
SARs.

	(a)
	Benefit
Upon Exercise. 

The
exercise of a Stand-Alone SAR with respect to any number of shares of Common Stock shall entitle the Participant to a cash payment, for each such share, equal to the excess of (i) the Fair
Market Value of a share of Common Stock on the exercise date over (ii) the Reference Value of the Stand-Alone SAR. Such payments shall be made as soon as practicable after the effective date of
such exercise. 

9

 

	(b)
	Term
and Exercise of Stand-Alone SARs. 

        (1)
Unless the applicable Award Agreement provides otherwise, a Stand-Alone SAR shall become cumulatively exercisable as to 25 percent of the shares covered thereby on each of the
first, second, third and fourth anniversaries of the date of grant. The Committee shall determine the expiration date of each Stand-Alone SAR. Unless the applicable Award Agreement provides otherwise,
no Stand-Alone SAR shall be exercisable prior to the first anniversary of the date of grant. 

        (2)
A Stand-Alone SAR shall be exercised by delivering notice to the Company's principal office, to the attention of its Secretary, no less than one business day in advance of the
effective date of the proposed exercise. A Stand-Alone SAR may also be exercised electronically by notifying the Company's agent, pursuant to the methods then in use by that agent. Such notice shall
specify the number of shares of Common Stock with respect to which the Stand-Alone SAR is being exercised, and the effective date of the proposed exercise, and shall be signed by the Participant. The
Participant may withdraw such notice at any time prior to the close of business on the business day immediately preceding the effective date of the proposed exercise. 

	(c)
	Effect
of Termination of Employment. 

The
provisions set forth in Section 7(e) with respect to the exercise of Options following termination of employment shall apply as well to the exercise of Stand-Alone SARs. 

	(d)
	Effect
of Change in Control. 

Upon
the occurrence of a Change in Control, (i) Stand-Alone SARs granted under the Plan, to the extent exercisable at the time of a Change of Control, shall remain exercisable until their
expiration notwithstanding the provisions of Section 7(e) of the Plan that are incorporated into this Section 9, and (ii) Stand-Alone SARs not exercisable at the time of a
Change in Control shall expire at the close of business on the date of such Change in Control. Any vested, exercisable Non-Tandem SARs shall, upon a Change in Control, be cashed out,
converted, assumed or otherwise disposed of in the same manner as applies to Options under Section 7(f). 

	10.
	Restricted
Stock.

	(a)
	Issue
Date and Vesting Date. 

At
the time of the grant of shares of Restricted Stock, the Committee shall establish an Issue Date or Issue Dates and a Vesting Date or Vesting Dates with respect to such shares. The Committee may
divide such shares into classes and assign a different Issue Date and/or Vesting Date for each class. If the grantee is employed by the Company or a Subsidiary of the Company on an Issue Date (which
may be the date of grant), the specified number of shares of Restricted Stock shall be issued in accordance with the provisions of Section 10(e) of the Plan. Provided that all conditions to the
vesting of a share of Restricted Stock imposed pursuant to Section 10(b) of the plan are satisfied, and except as provided in Section 10(g) of the Plan, upon the occurrence
of the Vesting Date with respect to a share of Restricted Stock, such share shall vest and the restrictions of Section 10(c) of the Plan shall lapse. 

	(b)
	Conditions
to Vesting. 

At
the time of the grant of shares of Restricted Stock, the Committee may impose such restrictions or conditions to the vesting of such shares as it, in its absolute discretion, deems appropriate. 

10

 

	(c)
	Restrictions
on Transfer Prior to Vesting. 

Prior
to the vesting of a share of Restricted Stock, no transfer of a Participant's rights with respect to such share, whether voluntary or involuntary, by operation of law or otherwise, shall be
permitted. Immediately upon any attempt to transfer such rights, such share, and all of the rights related thereto, shall be forfeited by the Participant. 

	(d)
	Dividends
on Restricted Stock. 

The
Committee in its discretion may require that any dividends paid on shares of Restricted Stock shall be held in escrow until all restrictions on such shares have lapsed. 

	(e)
	Issuance
of Certificates. 

        (1)
Reasonably promptly after the Issue Date with respect to shares of Restricted Stock, the Company shall cause to be issued a stock certificate, registered in the name of the
Participant to whom such shares were granted, evidencing such shares; provided, that the Company shall not cause such a stock certificate to be issued unless it has received a stock power duly
endorsed in blank with respect to such shares. Each such stock certificate shall bear the following legend: The transferability of this certificate and the shares of stock represented hereby are
subject to the restrictions, terms and conditions (including forfeiture provisions and restrictions against transfer) contained in the 2002 Omnibus Stock Incentive Plan of Caldera
International, Inc. and an Award Agreement entered into between the registered owner of such shares and Caldera Systems, Inc. A copy of such Plan and Award Agreement is on file in the
office of the Secretary of Caldera International, Inc., 320 South 520 West, Suite 100, Lindon, Utah 84042. Such legend shall not be removed until such shares vest pursuant to the terms
of the applicable Award Agreement. 

        (2)
Each certificate issued pursuant to this Section 10(e), together with the stock powers relating to the shares of Restricted Stock evidenced by such certificate, shall be held
by the Company unless the Committee determines otherwise. 

	(f)
	Consequences
of Vesting. 

        Upon
the vesting of a share of Restricted Stock pursuant to the terms of the applicable Award Agreement, the restrictions of Section 10(c) of the Plan shall lapse, except
as otherwise provided in the Award Agreement. Reasonably promptly after a share of Restricted Stock vests, the Company shall cause to be delivered to the Participant to whom such shares were granted,
a certificate evidencing such share, free of the legend set forth in Section 10(e) of the Plan. 

	(g)
	Effect
of Termination of Employment. 

        (1)
Subject to such other provision as the Committee may set forth in the applicable Award Agreement, and to the Committee's amendment authority pursuant to Section 4 of the Plan,
upon the termination of a Participant's employment by the Company or any Subsidiary of the Company for any reason other than Cause, any and all shares to which restrictions on transferability apply
shall be immediately forfeited by the Participant and transferred to the Company, provided that if the Committee, in its sole discretion and within thirty (30) days after such termination of
employment notifies the Participant in writing of its decision not to terminate the Participant's rights in such shares, then the Participant shall continue to be the owner of such shares subject to
such continuing restrictions as the Committee may prescribe in such notice. If shares of Restricted Stock are forfeited in accordance with the provision of this Section 10, the Company shall
also have the right to require the return of all dividends paid on such shares, whether by termination of any escrow arrangement under which such dividends are held or otherwise. 

11

 

        (2)
In the event of the termination of a Participant's employment for Cause, all shares of Restricted Stock granted to such Participant that have not vested as of the date of such
termination shall immediately be returned to the Company, together with any dividends paid on such shares. 

	(h)
	Effect
of Change in Control. 

Upon
the occurrence of a Change in Control, all restrictions on outstanding vested shares shall immediately lapse and all outstanding shares of Restricted Stock that have not theretofore vested shall
immediately expire and be cancelled. 

	(i)
	Special
Provisions Regarding Restricted Stock Awards. 

The
Committee may designate on a case-by-case basis whether Restricted Stock Awards are intended to be "performance based compensation" within the meaning of Code
Section 162(m). The grant of
Restricted Stock so designated shall be based on the attainment by the Company (or a Subsidiary or division of the Company if applicable) of performance goals pre-established by the
Committee, based on one or more of the following criteria: (i) the attainment of a specified percentage return on total stockholder equity of the Company; (ii) the attainment of a
specified percentage increase in earnings per share of Common Stock; (iii) the attainment of a specified percentage increase in net income of the Company; and (iv) the attainment of a
specified percentage increase in profit before taxation of the Company (or a Subsidiary or division of the Company if applicable). Attainment of any such performance criteria shall be determined in
accordance with generally accepted accounting principles as in effect from time to time. Such shares shall be released from restrictions only after the attainment of such performance measures have
been certified by the Committee. 

	11.
	Phantom
Stock.

	(a)
	Vesting
Date. 

At
the time of the grant of shares of Phantom Stock, the Committee shall establish a Vesting Date or Vesting Dates with respect to such shares. The Committee may divide such shares into classes and
assign a different Vesting Date for each class. Provided that all conditions to the vesting of a share of Phantom Stock imposed pursuant to Section 11(c) of the Plan are satisfied, and
except as provided in Section 11(d) of the Plan, upon the occurrence of the Vesting Date with respect to a share of Phantom Stock, such share shall vest. 

	(b)
	Benefit
Upon Vesting. 

Upon
the vesting of a share of Phantom Stock, the Participant shall be entitled to receive in cash, within 30 days of the date on which such share vests, an amount equal to the sum of
(i) the Fair Market Value of a share of Common Stock on the date on which such share of Phantom Stock vests and (ii) the aggregate amount of cash dividends paid with respect to a share
of Common Stock during the period commencing on the date on which the share of Phantom Stock was granted and terminating on the date on which such share vests. 

	(c)
	Conditions
to Vesting. 

At
the time of the grant of shares of Phantom Stock, the Committee may impose such restrictions or conditions to the vesting of such shares as it, in its absolute discretion, deems appropriate. 

	(d)
	Effect
of Termination of Employment. 

        (1)
Subject to such other provisions as the Committee may set forth in the applicable Award Agreement, and to the Committee's amendment authority pursuant to Section 4 of the 

12

 

Plan, shares of Phantom Stock that have not vested, together with any dividends credited on such shares, shall be forfeited upon the Participant's termination of employment for any reason other than
Cause. 

        (2)
In the event of the termination of a Participant's employment for Cause, all shares of Phantom Stock granted to such Participant that have not vested as of the date of such
termination shall immediately be forfeited, together with any dividends credited on such shares. 

	(e)
	Effect
of Change in Control. 

Upon
the occurrence of a Change in Control, all outstanding shares of Phantom Stock that have not theretofore vested shall immediately expire and be cancelled. 

	(f)
	Special
Provisions Regarding Phantom Stock Awards. 

The
Committee may designate on a case by case basis whether Phantom Stock Awards are intended to be "performance based compensation" within the meaning of Code Section162 (m). The grant of Phantom
Stock so designated shall be based on the attainment by the Company (or a Subsidiary or division of the Company if applicable) of performance goals pre-established by the Committee, based
on one or more of the following criteria: (i) the attainment of a specified percentage return on total stockholder equity of the Company; (ii) the attainment of a specified percentage
increase in earnings per share of Common Stock; (iii) the attainment of a specified percentage increase in net income of the Company; and (iv) the attainment of a specified percentage
increase in profit before taxation of the Company (or a Subsidiary or division of the Company if applicable). Attainment of any such performance criteria shall be determined in accordance with
generally accepted accounting principles as in effect from time to time. Such shares shall be released from restrictions only after the attainment of such performance measures have been certified by
the Committee. 

	12.
	Stock
Bonuses. 

        In
the event that the Committee grants a Stock Bonus, a certificate for the shares of Common Stock comprising such Stock Bonus shall be issued in the name of the Participant to whom such
grant was
made and delivered to such Participant as soon as practicable after the date on which such Stock Bonus is payable. 

	13.
	Rights
as a Stockholder. 

        No
person shall have any rights as a stockholder with respect to any shares of Common Stock covered by or relating to any Incentive Award until the date of issuance of a stock
certificate with respect to such shares. Except as otherwise expressly provided in Section 3(c) of the Plan, no adjustment to any Incentive Award shall be made for dividends or other
rights for which the record date occurs prior to the date such stock certificate is issued. 

	14.
	No
Special Employment Rights; No Right to Incentive Award. 

        Nothing
contained in the Plan or any Award Agreement shall confer upon any Participant any right with respect to the continuation of employment by the Company or any Subsidiary of the
Company or interfere in any way with the right of the Company or any Subsidiary of the Company, subject to the terms of any separate employment agreement to the contrary, at any time to terminate such
employment or to increase or decrease the compensation of the Participant. No person shall have any claim or right to receive an Incentive Award hereunder. The Committee's granting of an Incentive
Award to a Participant at any time shall neither require the Committee to grant any other Incentive Award to such Participant or other person at any time or preclude the Committee from making
subsequent grants to such Participant or any other person. 

13

 

	15.
	Securities
Matters.

	(a)
	The
Company shall be under no obligation to effect the registration pursuant to the Securities Act of any interests in the Plan or any shares of Common Stock to be issued hereunder or
to effect similar compliance under any state laws. Notwithstanding anything herein to the contrary, the Company shall not be obligated to cause to be issued or delivered any certificates evidencing
shares of Common Stock pursuant to the Plan unless and until the Company is advised by its counsel that the issuance and delivery of such certificates is in compliance with all applicable laws,
regulations of governmental authority and the requirements of any securities exchange on which shares of Common Stock are traded. The Committee may require, as a condition of the issuance and delivery
of certificates evidencing shares of Common Stock pursuant to the terms hereof and of the applicable Award Agreement, that the recipient of such shares make such covenants, agreements and
representations, and that such certificates bear such legends, as the Committee, in its sole discretion, deems necessary or desirable.

	(b)
	The
transfer of any shares of Common Stock hereunder shall be effective only at such time as counsel to the Company shall have determined that the issuance and delivery of such shares
is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which shares of Common Stock are traded. The Committee may, in its
sole discretion, defer the effectiveness of any transfer of shares of Common Stock hereunder in order to allow the issuance of such shares to be made pursuant to registration or an exemption from
registration or other methods for compliance available under federal or state securities laws. The Committee shall inform the Participant in writing of its decision to defer the effectiveness of a
transfer. During the period of such deferral in connection with the exercise of an Option, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with
respect thereto. 

	16.
	Withholding
Taxes. 

        Whenever
cash is to be paid pursuant to an Incentive Award, the Company (or its agent) shall have the right to deduct therefrom an amount sufficient to satisfy any federal, state and
local withholding tax requirements related thereto. Whenever shares of Common Stock are to be delivered pursuant to an Incentive Award, the Company (or its agent) shall have the right to require the
Participant to remit to the Company in cash an amount sufficient to satisfy any federal, state and local withholding tax requirements related thereto. With the approval of the Committee, a Participant
may satisfy the foregoing requirement by electing to have the Company (or its agent) withhold from delivery shares of Common Stock having a fair market value equal to the amount of tax to be withheld.
Such shares shall be valued at their Fair Market Value on the date on which the amount of tax to be withheld is determined (the "Tax Date"). Fractional share amounts shall be settled in cash. Such a
withholding election may be made with respect to all or any portion of the shares to be delivered pursuant to an Incentive Award. 

	17.
	Notification
of Election Under Section 83(b) of the Code. 

        If
any Participant shall, in connection with the acquisition of shares of Common Stock under the Plan, make the election permitted under Section 83(b) of the Code (i.e., an
election to include in gross income in the year of transfer the amounts specified in Section 83(b)), such Participant shall notify the Company of such election within 10 days of filing
notice of the election with the Internal Revenue Service, in addition to any filing and a notification required pursuant to regulation issued under the authority of Code Section 83(b). 

14

 

	18.
	Notification
Upon Disqualifying Disposition Under Section 421(b) of the Code. 

        Each
Award Agreement with respect to an Incentive Stock Option shall require the Participant to notify the Company of any disposition of shares of Common Stock issued pursuant to the
exercise of such Option under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions), within 10 days of such disposition. 

	19.
	Amendment
or Termination of the Plan. 

        The
Board of Directors may, at any time, suspend or terminate the Plan or revise or amend it in any respect whatsoever; provided, however, that stockholder approval shall be required if
and to the extent the Board of Directors determines that such approval is appropriate for purposes of satisfying Section 162(m) or 422 of the Code or to the extent such approval is required by
the rules of any stock exchange on which the Common Stock is listed. Nothing herein shall restrict the Committee's ability to exercise its discretionary authority pursuant to Section 4 of the
Plan, which discretion may be exercised without amendment to the Plan. No action hereunder may, without the consent of a Participant, reduce the Participant's rights under any outstanding Incentive
Award. 

	20.
	Transfers
Upon Death; Non-Assignability. 

        Upon
the death of a Participant, outstanding Incentive Awards granted to such Participant may be exercised only by the executor or administrator of the Participant's estate or by a
person who shall have acquired the right to such exercise by will or by the laws of descent and distribution. No transfer of an Incentive Award by will or the laws of descent and distribution shall be
effective to bind the Company unless the Committee shall have been furnished with (a) written notice thereof and with a copy of the will and/or such evidence as the Committee may deem necessary
to establish the validity of the transfer and (b) an agreement by the transferee to comply with all the terms and conditions of the Incentive Award that are or would have been applicable to the
Participant and to be bound by the acknowledgments made by the Participant in connection with the grant of the Incentive Award. 

        During
a Participant's lifetime, the Committee may permit the transfer, assignment or other encumbrance of an outstanding Option or outstanding shares of Restricted Stock unless such
Option is an Incentive Stock Option and the Committee and the Participant intend that it shall retain such status. Notwithstanding the foregoing, subject to any conditions as the Committee may
prescribe, a Participant may, upon providing written notice to the Secretary of the Company, elect to transfer any or all Options granted to such Participant pursuant to the Plan to members of his or
her immediate family, including, but not limited to, children, grandchildren and spouse or to trusts for the benefit of such immediate family members or to partnerships in which such family members
are the only partners; provided, however, that no such transfer by any Participant may be made in exchange for consideration. 

	21.
	Expenses
and Receipts. 

        The
expenses of the Plan shall be paid by the Company. Any proceeds received by the Company in connection with any Incentive Award will be used for general corporate purposes. 

	22.
	Failure
to Comply. 

        In
addition to the remedies of the Company elsewhere provided for herein, failure by a Participant (or beneficiary or transferee) to comply with any of the terms and conditions of the
Plan or the applicable Award Agreement, unless such failure is remedied by such Participant (or beneficiary or transferee) within ten days after notice of such failure by the Committee, shall
be grounds for the cancellation and forfeiture of such Incentive Award, in whole or in part, as the Committee, in its absolute discretion, may determine. 

15

 

	23.
	Effective
Date and Term of Plan. 

        The
Plan became effective on the Effective Date, but the Plan (and any grants of Incentive Awards made prior to stockholder approval of the Plan) shall be subject to the requisite
approval of the stockholders of the Company. In the absence of such approval, such Incentive Awards shall be null and void. Unless earlier terminated by the Board of Directors, the right to grant
Incentive Awards under the Plan will terminate on the tenth anniversary of the Effective Date. Incentive Awards outstanding at Plan termination will remain in effect according to their terms and the
provisions of the Plan. 

	24.
	Applicable
Law. 

        Except
to the extent preempted by any applicable federal law, the Plan will be construed and administered in accordance with the laws of the State of Utah, without reference to the
principles of conflicts of law. 

	25.
	Participant
Rights. 

        No
Participant shall have any claim to be granted any Incentive Award under the Plan, and there is no obligation for uniformity of treatment for Participants. Except as provided
specifically herein, a Participant or a transferee of an Incentive Award shall have no rights as a stockholder with respect to
any shares covered by any award until the date of the issuance of a Common Stock certificate to him for such shares. 

	26.
	Unfunded
Status of Awards. 

        The
Plan is intended to constitute an "unfunded" plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant to an Incentive Award,
nothing contained in the Plan or any Award Agreement shall give any such Participant any rights that are greater than those of a general creditor of the Company. 

	27.
	No
Fractional Shares. 

        No
fractional shares of Common Stock shall be issued or delivered pursuant to the Plan. The Committee shall determine whether cash, other Incentive Awards, or other property shall be
issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 

	28.
	Beneficiary. 

        A
Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such
designation. If no designated beneficiary survives the Participant, the executor or administrator of the Participant's estate shall be deemed to be the Participant's beneficiary. 

	29.
	Interpretation.

        The
Plan is designed and intended to comply with Rule 16b-3 promulgated under the Exchange Act and, with Section 162(m) of the Code, and all provisions hereof
shall be construed in a manner to so comply. 

16

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Exhibit 10.04D    
  

 
 

CALIFORNIA COASTAL COMMUNITIES, INC. RETIREMENT PLAN
  
  AMENDMENT NO. 2    
  

        The California Coastal Communities, Inc. Retirement Plan ("Plan"), which was executed December 21, 2001, and which has been amended for EGTRRA, is
hereby further amended. This amendment is intended as good faith compliance with Revenue Rulings 2001-62 (applicable mortality table) and 2002-27 (definition of compensation),
and is to be construed in accordance with guidance issued thereunder. 

1.    Effective
December 31, 2002, the following is added at the end of Section 6.3.3 of the Plan: 

Effective
for distributions with Annuity Starting Dates on or after December 31, 2002, and notwithstanding any other Plan provisions to the contrary, the applicable mortality table used for
purposes of adjusting any benefit or limitation under Code Section 415(b)(2)(B), (C), or (D) as set forth in the Plan and the applicable mortality table used for purposes of satisfying
the requirements of Code Section 417(e) as set forth in the Plan is the table prescribed in Revenue Ruling 2001-62. 

2.    Effective
for Plan Years and Limitation Years beginning on and after January 1, 1998, the following paragraph is added at the end of the definition of "Compensation" in
Section 1.16 of the Plan: 

For
purposes of the definitions of "Compensation" in the Plan, amounts under Code Section 125 include any amounts not available to a Participant in cash in lieu of group health coverage because
the Participant is unable to certify that he or she has other health coverage. An amount will be treated as an amount under Code Section 125 only if the employer does not request or collect
information regarding the Participant's other health coverage as part of the enrollment process for the health plan. 

        IN
WITNESS WHEREOF, this Amendment No. 2 is executed this 30th day of December, 2002. 

	 	 	California Coastal Communities, Inc.
	

 	
 	

By:	
 	

/s/  SANDRA G. SCIUTTO      

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Exhibit 10.04D

CALIFORNIA COASTAL COMMUNITIES, INC. RETIREMENT PLAN AMENDMENT NO. 2

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