Document:

Exhibit 10.2

 

 

EXE TECHNOLOGIES, INC.

1997 INCENTIVE AND NON-QUALIFIED

STOCK OPTION PLAN

 

As Amended and Restated February 6, 2001; and

As Amended May 30, 2002

 

 

 

EXE TECHNOLOGIES, INC.

1997 INCENTIVE AND NON-QUALIFIED

STOCK OPTION PLAN

 

Section 1.  Name and Purposes

of the Plan.

 

(a)           Name.  The Plan will be known as the EXE

Technologies, Inc. 1997 Incentive and Non-Qualified Stock Option Plan.

 

(b)           Purposes.  The purpose of the Plan is to provide key

Employees and Consultants with an opportunity to share in the capital

appreciation of the Common Stock of the Company. The Options granted pursuant

to the Plan are intended to constitute either Incentive Stock Options or

Non-Qualified Stock Options, as determined by the Administrator of the Plan at

the time of grant.

 

Section 2.  Definitions.  As used herein, the following definitions

shall apply:

 

(a)           “Administrator”

shall be the Board or a Committee appointed by the Board pursuant to Section 3

of the Plan, which shall administer the Plan.

 

(b)           “Affiliate”

shall mean, whether now or hereafter existing, a person or entity that

directly, or indirectly controls or is controlled by, or is under common

control with, the Company, except that when used in connection with an

Incentive Stock Option, “Affiliate” shall mean a Subsidiary.

 

(c)           “Board”

shall mean the Board of Directors of the Company, as constituted from time to

time.

 

(d)           “Change

of Control” shall mean the happening of an event (excluding a Public

Offering) that shall be deemed to have occurred upon the earliest to occur of

the following events:

 

(i)            the

date the stockholders of the Company (or the Board, if stockholder action is

not required) approve a plan or other arrangement pursuant to which the Company

will be dissolved or liquidated;

 

(ii)           the

date the stockholders of the Company (or the Board, if stockholder action is

not required) approve a definitive agreement to sell or otherwise dispose of

all or substantially all of the assets of the Company;

 

(iii)          the

date the stockholders of the Company (or the Board, if stockholder action is

not required) and the stockholders of the other constituent corporations (or

their respective boards of directors, if and to the extent that stockholder

action is not required) have approved a definitive agreement to merge or

consolidate the Company with or into another corporation, other than, in either

case, a merger or consolidation of the Company in which holders of shares of

the Company’s voting capital stock immediately prior to the merger or

 

 

consolidation will have at least fifty percent (50%) of the ownership

of voting capital stock of the surviving corporation immediately after the

merger or consolidation (on a fully diluted basis), which voting capital stock

is to be held by each such holder in the same or substantially similar

proportion (on a fully diluted basis) as such holder’s ownership of voting

capital stock of the Company immediately before the merger or consolidation;

 

(iv)          the

date any entity, person or group (within the meaning of Section 13(d)(3) or

Section 14(d)(2) of the Exchange Act), other than (A) the Company, (B) any of

its Subsidiaries, (C) any of the holders of the capital stock of the Company,

as determined on the date that this Plan is adopted by the Board, (D) any

employee benefit plan (or related trust) sponsored or maintained by the Company

or any of its Subsidiaries or (E) any Affiliate of any of the foregoing, shall

have acquired beneficial ownership of, or shall have acquired voting control

over more than fifty percent (50%) of the outstanding shares of the Company’s

voting capital stock (on a fully diluted basis), unless the transaction

pursuant to which such person, entity or group acquired such beneficial

ownership or control resulted from the original issuance by the Company of shares

of its voting capital stock and was approved by at least a majority of

directors who shall have been members of the Board for at least twelve (12)

months prior to the date of such approval;

 

(v)           the

first day after the date of this Plan when directors are elected such that

there shall have been a change in the composition of the Board such that a

majority of the Board shall have been members of the Board for less than twelve

(12) months, unless the nomination for election of each new director who was not

a director at the beginning of such twelve (12) month period was approved by a

vote of at least sixty percent (60%) of the directors then still in office who

were directors at the beginning of such period; or

 

(vi)          the

date upon which the Board determines (in its sole discretion) that based on

then current available information, the events described in clause (iv) are

reasonably likely to occur.

 

(e)           “Code”

shall mean the Internal Revenue Code of 1986, as amended from time to time, and

any successor thereto.

 

(f)            “Committee”

shall mean a Committee appointed by the Board in accordance with Section 3(a)

of the Plan, if one is appointed, in which event the Committee or Committees,

as the case may be, shall possess the power and authority of the Board with respect

to the Plan as set forth in Section 3(b) of the Plan.

 

(g)           “Common

Stock” shall mean the Common Stock, $.01 par value per share, of the

Company.

 

(h)           “Company”

shall mean EXE Technologies, Inc., a Delaware corporation, and any successor in

interest that agrees to assume and maintain the Plan.

 

(i)            “Consultant”

shall mean any person associated with the Company or a Subsidiary who is

engaged by the Company or a Subsidiary to render services and is compensated by

the

 

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Company or Subsidiary for such services, including but not limited to,

an advisor or independent contractor, but excluding any director who is not an

Employee.

 

(j)            “Disability”

or “Disabled” with respect to an Optionee shall mean (i) when the

Optionee is determined to be disabled within the meaning of any long-term

disability policy or program sponsored by the Company covering the Optionee, as

in effect as of the date of such determination, or (ii) if no such policy or

program shall be in effect, when the Optionee is unable to engage in any

substantial gainful activity by reason of a physical or mental impairment that

can be expected to result in death or that has lasted or can be expected to

last for a continuous period of not less than twelve (12) months.  The determination of whether an Optionee is

Disabled pursuant to subparagraph (ii) shall be determined by the

Administrator, whose determination shall be conclusive; provided that:

(A) if an Optionee is bound by the terms of an executive Employment

Agreement between the Optionee and the Company, then whether the Optionee is

“Disabled” for purposes of the Plan shall be determined in accordance with the

procedures set forth in said Employment Agreement, if such procedures are

therein provided; and (B) an Optionee bound by such an Employment

Agreement shall not be determined to be Disabled under the Plan any earlier

than he or she would be determined to be disabled under his or her Employment

Agreement.

 

(k)           “Employee”

shall mean any person employed by the Company or any Subsidiary of the Company.

 

(l)            “Exchange

Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(m)          “Fair

Market Value” shall mean, as of any date, the fair market value of a share

of Common Stock as determined pursuant to Section 7 hereof.

 

(n)           “Incentive

Stock Option” shall mean any Option that is intended to be and is

designated as an incentive stock option within the meaning of Section 422 of

the Code.

 

(o)           “Non-Employee

Director” shall have the meaning set forth in Rule 16b-3(b)(3)(i)

promulgated by the Securities and Exchange Commission under the Exchange Act,

or any successor definition adopted by the Securities and Exchange Commission;

provided, however, that the Administrator may, to the extent the Administrator

deems it necessary or desirable to comply with Section 162(m) of the Code and

applicable regulations thereunder, ensure that each Non-Employee Director also

qualifies as an “outside director” as that term is defined in the regulations

under Section 162(m) of the Code.

 

(p)           “Non-Qualified

Stock Option” shall mean any Option that is not intended to or does not

qualify as an Incentive Stock Option.

 

(q)           “Option”

shall mean an Incentive Stock Option or a Non-Qualified Stock Option, as the

case may be, granted pursuant to the Plan.

 

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(r)            “Option

Agreement” shall mean the written agreement by and between the Company and

an Optionee under which Optionee may purchase the Shares pursuant to the

exercise of an Option.

 

(s)           “Optionee”

shall mean an Employee or Consultant to whom an Option is granted.

 

(t)            “Plan”

shall mean this EXE Technologies, Inc. 1997 Incentive and Non-Qualified Stock

Option Plan, as amended from time to time.

 

(u)           “Public

Offering” shall mean the consummation of a firm commitment underwritten

public offering of equity securities of the Company registered under the

Securities Act.

 

(v)           “Sale

of the Company” shall mean the earliest of: (i) the closing of a sale,

transfer or other disposition of all or substantially all of the shares of the

capital stock then outstanding of the Company (except if such transferee is

then an Affiliate); (ii) the closing of a sale, transfer or other disposition

of all or substantially all of the assets of the Company (except if such

transferee is then an Affiliate); or (iii) the merger or consolidation of the

Company with or into another corporation (except an Affiliate), other than a

merger or consolidation of the Company in which the holders of shares of the

Company’s voting capital stock outstanding immediately before such merger or

consolidation hold greater than fifty percent (50%) of the surviving entity’s

voting capital stock after such consolidation or merger.

 

(w)          “Securities

Act” shall mean the Securities Act of 1933, as amended.

 

(x)           “Share”

or “Shares” shall mean a share or shares of Common Stock, as adjusted in

accordance with Section 8 of the Plan, that is allocated to the Plan.

 

(y)           “Subsidiary”

shall mean, whether now or hereafter existing, a subsidiary or parent

corporation of the Company as such term is defined in Sections 424(e), (f) and

(g) of the Code.

 

(z)           “Vested

Amount” shall mean, with respect to each Option, a percentage of the shares

for which the Option has become exercisable (subject to the further terms of

the Plan) by application of the schedule set forth in Section 4(b).

 

Section 3.  Administration.

 

(a)           Procedure.

The Plan shall be administered by the Board and/or by one or more Committees,

each of which shall consist of not less than two (2) persons appointed by the

Board.  In the event the Company has a

class of equity securities registered under the Exchange Act, the Board shall

administer the Plan; provided that it may appoint one or more Committees in

accordance with Section 3(b).

 

(b)           Committees.  If one or more Committees are appointed by

the Board, then the Committees shall possess the power and authority of the

Board in administering the Plan on behalf of the Board, subject to such terms

and conditions as the Board may prescribe, which

 

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conditions

may state that the Committee shall have administrative authority with respect

to only a prescribed group of individuals eligible for Options under the Plan.

 

Members of a Committee shall be members of the Board and shall serve

for such period of time as the Board may determine.  From time to time, the Board may increase the size of a Committee

and appoint additional members thereto, remove members (with or without cause)

and appoint new members in substitution therefore, fill vacancies however

caused, or remove all members of a Committee and thereafter directly administer

the Plan.  Notwithstanding the

foregoing, in the event the Company has a class of equity securities registered

under the Exchange Act, any Committee that grants Options to individuals who

are covered employees pursuant to section 162(m) of the Code and the

regulations thereunder, and/or to individuals who are directors, officers or

principal stockholders as determined pursuant to Section 16 of the Exchange

Act, shall be composed solely of two (2) or more Non-Employee Directors.

 

(c)           Powers

of the Administrator.  Subject to

the provisions of the Plan (and, in the case of the Committee, the specific

duties delegated by the Board to such Committee), the Administrator shall have

the authority, in its sole discretion:

 

(1)           to determine whether

and to what extent Options are granted hereunder;

 

(2)           to determine the

Fair Market Value of the Common Stock based upon review of relevant information

and in accordance with Section 7 of the Plan;

 

(3)           to determine the

exercise price of the Options in accordance with Section 6(b) of the Plan;

 

(4)           to select the

Optionees to whom Options may from time to time be granted;

 

(5)           to determine the

number of Shares to be subject to each Option granted hereunder;

 

(6)           to prescribe, amend

and rescind rules and regulations relating to the Plan;

 

(7)           to determine the

terms and provisions of each Option granted under the Plan, each Option

Agreement and each other agreement that in the sole discretion of the

Administrator may be required (all of which agreements need not be identical

with the terms of other Options, Option Agreements or other agreements);

 

(8)           to determine the

circumstances under which the vesting or exercise date of an Option will be

accelerated;

 

(9)           to interpret the

Plan or any agreement entered into with respect to the grant or exercise of

Options;

 

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(10)         to authorize any

person to execute on behalf of the Company any instrument required to

effectuate the grant of an Option previously granted by the Administrator or to

take such other actions as may be necessary or appropriate with respect to the

Company’s rights pursuant to Options or agreements relating to the granting or

exercise thereof;

 

(11)         to determine whether

and under what circumstances an Option may be exercised without a payment of

cash under Section 6(c) hereof;

 

(12)         to terminate the Plan

in the event of a Change of Control; and

 

(13)         to make such other

determinations and establish such other procedures as it deems necessary or

advisable for the administration of the Plan.

 

(d)           Effect

of the Administrator’s Decision. 

All decisions, determinations and interpretations of the Administrator

pursuant to the provisions of the Plan shall be final and binding on all

Optionees and any other holders of Options.

 

(e)           Limitation

of Liability.  Notwithstanding

anything herein to the contrary, no member of the Board or the Committee shall be

liable for any good faith determination, act or failure to act in connection

with the Plan or any Option awarded hereunder.

 

Section 4.  Eligibility.

 

(a)           Eligible

Persons.  Options may be granted at

any time and from time to time to any Employee or Consultant who shall be

selected by the Administrator.  Any

grant of Options may include or exclude any Employee or Consultant as the

Administrator shall determine in its sole discretion.  Consultants who are not also Employees of the Company are

eligible to be granted Non-Qualified Stock Options under the Plan but are not

eligible to be granted Incentive Stock Options under the Plan.

 

(b)           Vesting

and Exercisability of Options. 

Subject to the provisions of 

Section 6 hereof and except to the extent the Administrator provides

otherwise, each Option shall vest and become exercisable as follows:  (i) 25% of the Option shall vest on the

first anniversary of the date of grant; and (ii) the remaining 75% shall vest

at a rate of 2.083% of the Option on the last day of each month after the first

anniversary of the date of grant, with the number of shares vesting each month

determined by rounding up to the nearest whole number of shares.

 

The Administrator may, but need not, determine that the Vested Amount

of each Option shall be exercisable only upon the earlier to occur of: (i) the

consummation of a Public Offering; or (ii) the consummation of a Sale of the

Company. The unvested portion of each Option may not be exercised.  In addition, as specified in Section 3(c)(8),

the Administrator may determine the circumstances under which the vesting or

exercise date of an Option will be accelerated.

 

(c)           Effect

Upon Engagement.  The Plan will not

confer upon any Optionee any right with respect to the continuation of any

employment, consulting or any other relationship with the Company nor will it

interfere in any way with such Optionee’s right or the Company’s right to

 

6

 

terminate

that Optionee’s employment, consulting or other relationship with the Company

at any time, whether with or without cause.

 

Section 5.  Stock Subject to

the Plan.

 

(a)           Maximum

Number of Shares. Subject to the provisions of Section 8 of the Plan, the

maximum aggregate number of Shares which may be optioned and sold under the

Plan is Twelve Million (12,000,000) Shares. 

The Shares may be authorized, but unissued or reacquired, Common

Stock.  In the event the Company has a

class of equity securities registered under the Exchange Act, the maximum

number of Shares with respect to which Options may be granted under the Plan to

any Employee during any calendar year is One Million (1,000,000) Shares.

 

(b)           Return

of Shares to the Plan.  If an Option

expires, is terminated or becomes unexercisable for any reason without having

been exercised in full, then the unpurchased Shares subject thereto shall,

unless the Plan shall have been terminated, return to the Plan and become

available for future grant under the Plan.

 

Section 6.  Terms and

Conditions of Options.

 

Each Option granted under the Plan shall be authorized by the

Administrator and shall be evidenced by an Option Agreement, which shall state

or incorporate by reference all other terms and conditions of the Plan

including, without limitation, the following terms and conditions:

 

(a)          Number

of Shares.  The Option Agreement

shall state the number of Shares subject to the Option.

 

(b)           Option

Exercise Price.  The per Share

exercise price for the Shares to be issued pursuant to the exercise of an

Incentive Stock Option shall be stated in the Option Agreement and shall be no

less than the Fair Market Value per share of the Common Stock on the date such

Option is granted, without regard to any restriction other than a restriction

that by its terms will never lapse; provided, however, that any Incentive Stock

Option granted under this Plan to an Employee who, at the time such Option is

granted, owns more than ten percent (10%) of the current total combined voting

power of all classes of the capital stock of the Company, shall have an

exercise price per Share of not less than one hundred ten percent (110%) of the

Fair Market Value of the Common Stock on the date such Option is granted.  The per Share exercise price for the Shares

to be issued pursuant to the exercise of a Non-Qualified Stock Option shall be

stated in the Option Agreement and shall be determined by the Administrator but

shall be at least $.01 per Share.

 

(c)           Consideration.  The consideration to be paid for the Shares

to be issued upon the exercise of an Option, including the method of payment,

shall be determined by the Administrator and may consist entirely of: (i) cash;

(ii) check; or (iii) such other consideration and method of payment as the

Administrator may from time to time determine. 

In making its determination as to the type of consideration to accept,

the Administrator shall consider if the acceptance of such consideration may be

reasonably expected to benefit the Company.

 

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(d)           Form

of Option.  The Option Agreement

shall state whether the Option granted thereunder is intended to be an

Incentive Stock Option or a Non-Qualified Stock Option.

 

(e)           Exercise

of an Option.

 

(1)           Unless otherwise

provided by the Administrator, the Vested Amount of any Option granted

hereunder shall be exercisable, in whole or in part, at such times and under

such further conditions as may be determined by the Administrator and as set

forth in the Option Agreement.

 

(2)           An Option may not be

exercised for a fraction of a Share.

 

(3)           An Option may not be

exercised after the date of expiration of its term as shall be set forth in the

Option Agreement.

 

(4)           An Option shall be

deemed to have been exercised when written notice of such exercise has been

received by the Company at its principal executive office in accordance with

the terms of the Option Agreement by the person entitled to exercise the

Option, and full payment for the Shares with respect to which the Option is to

be exercised has been received by the Company, accompanied by any agreements

required by the Administrator or the terms of the Plan and/or Option

Agreement.  An Optionee shall have no

right to vote or receive dividends and shall have no other rights as a

stockholder with respect to the Shares, notwithstanding the exercise of the

Option, until the issuance (as evidenced by the appropriate entry on the books

of the Company or of a duly authorized transfer agent of the Company) of the

stock Certificate evidencing such Shares. 

No adjustment shall be made for a dividend or other right for which the

record date is prior to the date a stock Certificate with respect to the Shares

is issued.

 

(5)           As soon as

practicable after the proper exercise of an Option in accordance with the

provisions of the Plan, the Company shall, without transfer or issue tax to the

Optionee, deliver to the Optionee at the principal executive office of the

Company or such other place as shall be mutually agreed upon between the

Company and the Optionee, a Certificate or Certificates representing the Shares

for which the Option shall have been exercised.  The time of issuance and delivery of the Certificate(s)

representing the Shares for which the Option shall have been exercised may be

postponed by the Company for such period as may be required by the Company,

with reasonable diligence, to comply with any applicable listing requirements

of any national or regional securities exchange or any law or regulation

applicable to the issuance or delivery of such Shares.

 

(6)           The exercise of an

Option in any manner shall result in a decrease in the number of Shares that

thereafter may be available both for purposes of the Plan and for sale under

the Option by the number of Shares as to which the Option is exercised.

 

(f)            Termination

of Options.

 

(1)           Termination in

General.  Unless sooner terminated

as provided in this Plan, each Option shall be exercisable for the period of

time as shall be determined by the

 

8

 

Administrator

and set forth in the Option Agreement and shall be void and unexercisable

thereafter.

 

(2)           Termination of

Relationship with the Company. 

Unless sooner terminated as provided in this Plan, in the event of the

termination of an Optionee’s employment or consulting relationship with the

Company (as the case may be) for any reason other than the death or Disability

of the Optionee, such Optionee may, within three (3) months (or such other

period of time as is determined by the Administrator) from the date of such

termination (but in no event later than the expiration date of the term of such

Option as set forth in the Option Agreement), exercise the Option up to the

Vested Amount as of the date of termination, but only to the extent that the

Optionee was entitled to exercise the Option on the date of such

termination.  To the extent the Optionee

was not entitled to exercise the Option on the date of such termination, or if

the Optionee does not exercise such Option to the extent so entitled within the

time specified herein, the Option will terminate.

 

(3)           Death or

Disability.  Unless sooner

terminated as provided in this Plan, in the event of the death or Disability of

an Optionee while employed or engaged by the Company (as the case may be),

Options held by such Optionee that are exercisable on the date of Disability or

death shall be exercisable up to the Vested Amount as of the date of Disability

or death for a period of twelve (12) months commencing on the date of the

Optionee’s Disability or death.  Such Options

may be exercisable by the Optionee or his or her legal guardian or

representative or, in the case of death, by his or her executor(s) or

administrator(s); provided, however, if such disabled Optionee shall commence

any employment or engagement during such twelve (12) month period with or by a

competitor of the Company  (including,

but not limited to, full or part-time employment or independent consulting

work), as determined solely in the judgment of the Administrator, then all

Options held by such Optionee that have not yet been exercised shall terminate

immediately upon the commencement thereof.

 

(4)           Agreement to

Terminate.  Options may be

terminated at any time by agreement between the Company and the Optionee.

 

(g)           Other Provisions.

 

(1)           Notwithstanding any

provision in this Plan or an Option Agreement to the contrary, no Option

granted to any Optionee under this Plan shall be treated as an Incentive Stock

Option to the extent that such Option would cause the aggregate Fair Market

Value of all Shares with respect to which Incentive Stock Options are

exercisable by such Optionee for the first time during any calendar year

(determined as of the date of grant of each such Option) to exceed

$100,000.  For purposes of determining

whether an Incentive Stock Option granted to an Optionee would cause the

aggregate Fair Market Value to exceed the $100,000 limitation, such Incentive

Stock Options shall be taken into account in the order granted.  For purposes of this subsection, Incentive

Stock Options granted to an Optionee shall include all incentive stock options

under all plans of the Company or any Subsidiary that are incentive stock

option plans within the meaning of Section 422 of the Code.  Options may be exercised in any order

elected by the Optionee, whether or not the Optionee holds any unexercised

Options under this Plan or any other plan of the Company.

 

9

 

(2)           Notwithstanding any

other provision of this Plan or an Option Agreement to the contrary, no Option

shall be (A) granted under this Plan after ten (10) years from the date on

which this Plan is adopted by the Administrator, or (B) exercisable more than

ten (10) years from the date of grant; provided that if an Incentive Stock

Option shall be granted under this Plan to any Employee who, at the time of the

grant of such Option, owns stock possessing more than ten percent (10%) of the

total combined voting power for all classes of the Company’s capital stock, the

foregoing clause (B) shall be deemed modified by substituting the term “five (5)

years” for the term “ten (10) years” that appears therein.

 

Section 7.  Fair Market Value

of Common Stock.

 

The Fair Market Value of a Share of Common Stock, as of any date, shall

be determined as follows:

 

(a)           If the Shares of

Common Stock are listed on a national or regional securities exchange or traded

through NASDAQ/NMS, then the Fair Market Value of a share of Common Stock shall

be the closing price for a share of Common Stock on the exchange or on

NASDAQ/NMS, as reported in The Wall Street Journal or such other source

as the Administrator deems reliable on the relevant valuation date, or if there

is no trading on that date, on the next trading date.

 

(b)           If the Shares of

Common Stock are traded in the over-the-counter market, then the Fair Market Value

of a share of Common Stock shall be the mean of the bid and asked prices for a

share of Common Stock on the relevant valuation date as reported in The Wall

Street Journal or other source the Administrator deems reliable (or, if not

so reported, as otherwise reported by the National Association of Securities

Dealers Automated Quotations (“NASDAQ”) System or the NASD OTC Bulletin Board),

or if there is no trading on such date, on the next trading date.

 

(c)           In the absence of an

established market for the Common Stock, the Fair Market Value of a share of

Common Stock shall be determined by the Board in its sole discretion.

 

Section 8.  Adjustments.

 

(a)           Adjustments.  Subject to any required action by the

stockholders of the Company, the number of Shares covered by each outstanding

Option, the number of Shares that have been authorized for issuance under the

Plan but as to which no Options have yet been granted or that have been

returned to the Plan upon cancellation or expiration of an Option, and the price

per Share of the Common Stock covered by an Option will each be proportionately

adjusted for any increase or decrease in the number of outstanding shares of

Common Stock resulting from stock splits, reverse stock splits, stock

dividends, reclassifications and recapitalizations or automatic conversion of

shares of one class of stock to those of another by operation of the terms of

such stock.  Such adjustment shall be

made by the Administrator whose determination in that respect will be final,

binding and conclusive.  Except as

provided herein, no issuance by the Company of shares of stock of any class or

securities convertible into shares of stock of any class, will affect,

 

10

 

and

no adjustment by reason thereof will be made with respect to, the number or

price of shares of Common Stock subject to an Option.

 

(b)           No Fractional

Shares.  No fractional Shares shall

be issuable on account of any action aforesaid, and the aggregate number of

Shares into which Shares then covered by the Option, when changed as the result

of such action, shall be reduced to the number of whole Shares resulting from

such action, unless the Administrator, in its sole discretion, shall determine

to issue scrip Certificates in respect to any fractional Shares, which scrip

Certificates shall be in a form and have such terms and conditions as the

Administrator in its discretion shall prescribe.

 

Section 9.  Rights as a

Stockholder.

 

An Optionee shall have no rights as a stockholder of the Company and

shall not have the right to vote nor receive dividends with respect to any

Shares subject to an Option until such Option has been exercised and a stock

Certificate with respect to the Shares purchased upon such exercise of the

Option has been issued to Optionee as set forth in Section 6(e)(4) and (5)

hereof.

 

Section 10.  Forfeiture.

 

Notwithstanding any other provision of this Plan, (a) if an Optionee’s

employment with the Company is terminated by the Company pursuant to the cause

termination provisions of an applicable employment agreement, or (b) if the

Optionee’s employment or consulting relationship with the Company (as the case

may be) is terminated and the Board makes a determination that the Optionee (1)

has engaged in any type of disloyalty to the Company, including without

limitation, fraud, embezzlement, theft, or dishonesty in the course of

Optionee’s employment or consulting relationship, (2) has been convicted of a

felony or other crime involving a breach of trust or fiduciary duty owed to the

Company, (3) has made an unauthorized disclosure of trade secrets or

confidential information of the Company, or (4) has breached any

confidentiality agreement or non-competition agreement with the Company in any

material respect, then, at the election of the Board, all unexercised Options

held by the Optionee (whether or not then exercisable) shall terminate.  In the event of such an election by the

Board, in addition to immediate termination of all unexercised Options, the

Optionee shall forfeit all Shares for which the Company has not yet delivered

stock Certificates to the Optionee and the Company shall refund to the Optionee

the exercise price paid to it upon exercise of the Option with respect to such

Shares.  Notwithstanding anything herein

to the contrary, the Company may withhold delivery of stock Certificates

pending the resolution of any inquiry that could lead to a finding resulting in

forfeiture.

 

Section 11.  Time of Granting

Options.

 

The date of grant of an Option shall, for all purposes, be the date on

which the Administrator makes the determination to grant the Option or such

other date as is determined by the Administrator.  Notice of the determination shall be given to each Optionee to whom

an Option is so granted within a reasonable time after the date of such grant.

 

11

 

Section 12.  Modification,

Extension, Renewal of Option.

 

Subject to the terms and conditions of the Plan, the Administrator may

modify, extend or renew an Option, or accept the surrender of an Option (to the

extent not theretofore exercised); provided that no Incentive Stock Option may

be modified, extended or renewed if such action would cause such Option to

cease to be an incentive stock option within the meaning of Section 422 of the

Code.

 

Section 13.  Transferability.

 

No Option may be sold, pledged, assigned, transferred or disposed of in

any manner other than by will or by the laws of descent and distribution.  During the lifetime of the Optionee, his or

her Options shall be exercisable by the Optionee.  In the event of the Optionee’s legal incapacity or Disability,

the Option is exercisable by the Optionee’s legal guardian or representative.

 

Section 14.  Power of Board

if Change of Control.

 

Notwithstanding anything to the contrary set forth in this Plan, in the

event of a Change of Control, the Board shall have the right, in its sole

discretion, to accelerate the vesting of all Options that have not vested as of

the date of the Change of Control and/or to establish an earlier date for the

expiration of the exercise of an Option (notwithstanding a later expiration of

exercisability set forth in an Option Agreement).  In addition, in the event of a Change of Control of the Company,

the Board shall have the right, in its sole discretion, subject to and

conditioned upon a Sale of the Company: 

(a) to arrange for the successor company (or other entity) to assume all

of the rights and obligations of the Company under this Plan; or (b) to

terminate this Plan and (i) to pay to all Optionees cash with respect to those

Options that are vested as of the date of the Sale of the Company in an amount

equal to the difference between the Option Price and the Fair Market Value of a

Share of Common Stock (determined as of the date the Plan is terminated)

multiplied by the number of Options that are vested as of the date of the Sale

of the Company which are held by the Optionee as of the date of the Sale of the

Company, or (ii) to arrange for the exchange of all Options for options to

purchase common stock in the successor corporation, or (iii) to distribute to

each Optionee other property in an amount equal to and in the same form as the

Optionee would have received from the successor corporation if the Optionee had

owned the Shares subject to Options that are vested as of the date of the Sale

of the Company rather than the Option at the time of the Sale of the

Company.  The form of payment or

distribution to the Optionee pursuant to this Section shall be determined by

the Board in its sole discretion.

 

Section 15.  Amendment or

Termination of the Plan.

 

Insofar as permitted by law and the Plan, the Board may at any time

suspend, terminate, discontinue, alter or amend the Plan in any respect

whatsoever; provided, however, that without prior approval of at least a

majority of the stockholders entitled to vote thereon, no such revision or

amendment may increase the aggregate number of Shares for which Options may be

granted hereunder, change the designation of the class of Optionees eligible to

receive Options or

 

12

 

decrease

the price at which Options may be granted. 

Any other provision of this Section notwithstanding, the Board

specifically is authorized to adopt any amendment to this Plan deemed by the

Board to be necessary or advisable to assure that the Incentive Stock Options

or the Non-Qualified Stock Options available under the Plan continue to be

treated as such, respectively, under all applicable laws.

 

Section 16.  Application of

Funds.

 

The proceeds received by the Company from the sale of Shares pursuant

to the exercise of Options shall be used for general corporate purposes.

 

Section 17.  No Obligation to

Exercise Option.

 

The granting of an Option shall impose no obligation upon the Optionee

to exercise such Option.

 

Section 18.  Approval of

Stockholders.

 

This Plan, and any amendments thereto, shall become effective on the

date the Plan or amendment, as applicable, is adopted by the Board; provided

that the Plan shall become limited to a non-qualified stock option plan if,

either in the case of the Plan’s original adoption or in the case of an

amendment increasing the number of shares reserved for award under the Plan or

changing the class of employees eligible for Incentive Stock Options (“material

amendment”), the Plan or such material amendment is not approved by the

stockholders of a majority of the Company’s outstanding voting stock within one

year (365 days) of its adoption by the Board. 

The Administrator may grant Options hereunder prior to approval of the

Plan, or any material amendments thereto, by the holders of a majority of the

Company’s outstanding voting stock; provided that any and all Options so

granted shall be converted into Non-Qualified Stock Options if the Plan or

material amendment, as applicable, is not approved by such stockholders within

365 days of its adoption.

 

Section 19.  Conditions Upon

Issuance of Shares.

 

(a)           Options granted

under the Plan are conditioned upon the Company obtaining any required permit

or order from appropriate governmental agencies, authorizing the Company to

issue such Options and Shares issuable upon the exercise thereof.

 

(b)           Shares shall not be

issued pursuant to the exercise of an Option unless the exercise of such Option

and the issuance and delivery of such Shares pursuant thereto shall comply with

all relevant provisions of law, including, without limitation, the Securities

Act, the Exchange Act, the rules and regulations promulgated thereunder, and

the requirements of any stock exchange upon which the Shares may then be

listed, and shall be further subject to the approval of counsel for the Company

with respect to such compliance.

 

(c)           As a condition to

the exercise of an Option, the Administrator may require the person exercising

such Option to execute an agreement with, and/or may require the person

 

13

 

exercising

such Option to make any representation and/or warranty to, the Company as may

be, in the judgment of counsel to the Company, required under applicable law or

regulation, including but not limited to, a representation and warranty that

the Shares are being purchased only for investment and without any present

intention to sell or distribute such Shares if, in the opinion of counsel for

the Company, such a representation and warranty is appropriate under any of the

aforementioned relevant provisions of law.

 

Section 20.  Reservation of

Shares.

 

(a)           The Company, during

the term of this Plan, shall at all times reserve and keep available such

number of Shares as shall be sufficient to satisfy the requirements of the

Plan.

 

(b)           The Company, during

the term of this Plan, shall use its best efforts to seek to obtain from

appropriate regulatory agencies any requisite authorization in order to issue

and sell such number of Shares as shall be sufficient to satisfy the

requirements of the Plan.  The inability

of the Company to obtain from any such regulatory agency having jurisdiction

the requisite authorization(s) deemed by the Company’s counsel to be necessary

for the lawful issuance and sale of any Shares hereunder, or the inability of

the Company to confirm to its satisfaction that any issuance and sale of any

Shares hereunder will meet applicable legal requirements, shall relieve the

Company of any liability in respect to the failure to issue or sell such Shares

as to which such requisite authority shall not have been obtained.

 

Section 21.  Other Agreements.

 

Options shall be evidenced by an Option Agreement in such form or forms

as the Administrator (subject to the terms and conditions of this Plan) may

from time to time approve, which Option Agreement shall evidence and reflect

the terms and conditions of an Option as set forth in Section 6 hereof.  The Administrator may, from time to time,

require such other agreements in connection with the Option as it, in its sole

discretion, deems advisable.  The Option

Agreement and any other agreement required by the Plan or the Option Agreement,

as determined by the Administrator, may contain such other provisions as the

Administrator in its discretion deems advisable and that are not inconsistent

with the provisions of this Plan, including, without limitation, restrictions

upon or conditions precedent to the exercise of the Option.

 

Section 22.  Taxes, Fees,

Expenses and Withholding.

 

(a)           The Company shall

pay all original issue and transfer taxes (but not income taxes, if any) with

respect to the grant of an Option and/or the issue and transfer of Shares

pursuant to the exercise thereof, and all other fees and expenses necessarily

incurred by the Company in connection therewith, and will, from time to time,

use its best efforts to comply with all laws and regulations that, in the

opinion of counsel for the Company, shall be applicable thereto.

 

(b)           The granting of

Options hereunder and the issuance of Shares pursuant to the exercise thereof

is conditioned upon the Company’s reservation of the right to withhold in

accordance with any applicable law, from any compensation or other amounts

payable to the

 

14

 

Optionee,

any taxes required to be withheld under federal, state or local law as a result

of the grant or exercise of such Option or the sale of the Shares issued upon

exercise thereof.  To the extent that

compensation or other amounts, if any, payable to the Optionee is insufficient

to pay any taxes required to be so withheld, the Company may, in its sole

discretion, require the Optionee (or such other person entitled herein to exercise

the Option), as a condition to the exercise of an Option, to pay in cash to the

Company an amount sufficient to cover such tax liability or otherwise to make

adequate provision for the Company’s satisfaction of its withholding

obligations under federal, state and local law.

 

Section 23.  Notices.

 

Any notice to be given to the Company pursuant to the provisions of

this Plan shall be addressed to the Company in care of its Secretary (or such

other person as the Company may designate from time to time) at its principal

executive office, and any notice to be given to an Optionee shall be delivered

personally or addressed to the Optionee at the address given beneath the

signature of the Optionee on his or her Option Agreement, or at such other

address as such Optionee or his or her permitted transferee (upon the transfer

of the Shares) may hereafter designate in writing to the Company.  Any such notice shall be deemed duly given

when enclosed in a properly sealed envelope or wrapper addressed as aforesaid,

registered or certified, and deposited, postage and registry or certification

fee prepaid, in a post office or branch post office regularly maintained by the

United States Postal Service.  It shall

be the obligation of each Optionee and each permitted transferee holding Shares

purchased upon exercise of an Option to provide the Secretary of the Company,

by letter mailed as provided herein, with written notice of his or her direct

mailing address.

 

Section 24.  No Enlargement

of Employee Rights.

 

This Plan is purely voluntary on the part of the Company, and the

continuance of the Plan shall not be deemed to constitute a contract between

the Company and any Employee or Consultant, or to be consideration for or a

condition of the employment or service of any Employee or Consultant as the

case may be.  Nothing contained in this

Plan shall be deemed to give any Employee or Consultant the right to be

retained in the employ or service of the Company, or to interfere with the right

of the Company to discharge or retire any Employee or Consultant thereof at any

time.  No Employee or Consultant shall

have any right to or interest in Options authorized hereunder prior to the

grant thereof to such Employee or Consultant, and upon such grant such Employee

shall have only such rights and interests as are expressly provided herein,

subject, however, to all applicable provisions of the Company’s Certificate of

Incorporation, as the same may be amended from time to time.

 

Section 25.  Information to

Optionees.

 

The Company, upon request, shall provide without charge to each

Optionee copies of such annual and periodic reports as are provided by the

Company to its stockholders generally.

 

15

 

Section 26.  Availability of

Plan.

 

A copy of this Plan shall be delivered to the Secretary of the Company

and shall be shown to any eligible person making reasonable inquiry concerning

it.

 

Section 27.  Invalid

Provisions.

 

In the event that any provision of this Plan is found to be invalid or

otherwise unenforceable under any applicable law, such invalidity or

unenforceability shall not be construed as rendering any other provisions

contained herein as invalid or unenforceable, and all such other provisions

shall be given full force and effect to the same extent as though the invalid

or unenforceable provision was not contained herein.

 

Section 28.  Applicable Law.

 

This Plan shall be governed by and construed in accordance with the

laws of the State of Delaware.

 

Section 29.  Administrator

Action.

 

Notwithstanding anything to the contrary set forth in this Plan, any

and all actions of the Administrator taken under or in connection with this

Plan and any agreements, instruments, documents, Certificates or other writings

entered into, executed, granted, issued and/or delivered pursuant to the terms

hereof, shall be subject to and limited by any and all votes, consents,

approvals, waivers or other actions of all or certain stockholders of the

Company or other persons required pursuant to (a) the Company’s Certificate of

Incorporation (as the same may be amended and/or restated from time to time),

(b) the Company’s Bylaws (as the same may be amended and/or restated from time

to time), and (c) any other agreement, instrument, document or writing now or hereafter

existing, between or among the Company and its stockholders or other persons

(as the same may be amended from time to time).

 

Section 30.  Miscellaneous.

 

This Plan is intended to comply with the conditions and requirements

for employee benefit plans under Rule 16b-3, as promulgated under Section 16 of

the Exchange Act such that Options granted pursuant to the Plan will be

exempted from the provisions of Section 16(b) thereof.  To the extent that any provision of the Plan

would cause a conflict with such requirements, such provision shall be deemed

null and void to the extent permitted by applicable law.  This section shall not be applicable if no

class of the Company’s equity securities is then registered pursuant to Section

12 of the Exchange Act.

 

AMENDMENT NO. 1 TO THE

EXE TECHNOLOGIES, INC.

1997 INCENTIVE AND

NON-QUALIFIED

STOCK OPTION PLAN

 

Section

5(a) of the EXE Technologies, Inc. 1997 Incentive and Non-Qualified Stock

Option Plan (the “Plan”) is hereby amended to increase the number of shares of

Common Stock available for issuance thereunder

 

16

 

from 12,000,000 shares to

15,000,000 shares and increasing the maximum number of shares of Common Stock

with respect to which options may be granted under the Plan to any employee

during any calendar year from 1,000,000 shares to 3,000,000 shares.

 

 

Adopted by the

Board of Directors

on April 24, 2002

Adopted by the

Stockholders

on May 30, 2002

 

17

 

EXE TECHNOLOGIES, INC.

1997 INCENTIVE AND NON-QUALIFIED

STOCK OPTION PLAN

 

 

INCENTIVE STOCK OPTION AGREEMENT

 

EXE

TECHNOLOGIES, INC. (the “Company”) hereby grants to ____________________ (the

“Optionee”) an option (the “Option”) purchase a total of _______________ shares

of Common Stock, $ .01 par value per share, of the Company (“Common Stock”), at

the price and on the terms set forth herein, and in all respects subject to the

terms and provisions of the EXE TECHNOLOGIES, INC. 1997 INCENTIVE AND

NON-QUALIFIED STOCK OPTION PLAN (the “Plan”) applicable to incentive stock

options, which terms and provisions are incorporated herein by reference.  Capitalized terms used but not otherwise

defined herein shall have the meanings given to them in the Plan.

 

1.             Nature

of the Option.  The Option is

intended by the Company and the Optionee to be an incentive stock option within

the meaning of Section 422 of the Code.

 

2.             Date of Grant; Term of Option.  The Option is granted this ______

day of ______________, ________,

and it may not be exercised later than 5:00 p.m. on the ______ day of

____________, ______.

 

3.             Option Exercise Price.  The Option exercise price is $_______per

Share, which price is the Fair Market Value per share of the Common Stock on

the date hereof; or $______ per share if Optionee, at the time of grant, owns

stock possessing more than ten percent (10%) of the current total combined

voting power of all classes of the Company’s capital stock, which price

represents a price per Share equal to no less than one hundred ten percent

(110%) of the Fair Market Value of the Common Stock on the date the Option is

granted.

 

4.             Exercise of Option.  Except as otherwise provided herein, the

Option shall be exercisable during its term only in accordance with the terms

and provisions of the Plan and this Option Agreement as follows:

 

(a)           Vesting.  Twenty-Five percent of the Option shall vest and become

exercisable on the first anniversary of the date of grant.  The remaining 75% of the Option shall vest

and become exercisable at a rate of 2.083% of the Option on the last day of

each month after the first anniversary of the date of grant, with the number of

shares vesting each month determined by rounding up to the nearest whole number

of shares.

 

(b)           Right to Exercise.  The Vested Amount of each Option may be

exercised at such times and subject to such procedures as the Company may

further provide.

 

 

(c)           Method of Exercise.  The Option shall be exercisable by written

notice that shall state the election to exercise the Option, the number of

Shares in respect to which the Option is being exercised and such other

representations and agreements as to the Optionee’s investment intent with

respect to such Shares as may be required by the Company hereunder or pursuant

to the provisions of the Plan.  Such

written notice shall be signed by the Optionee (or, subject to the approval of

the Administrator, a registered securities broker authorized by the Optionee to

exercise the Option pursuant to an executed power of attorney) and shall be

delivered in person or by certified mail to the Secretary of the Company or

such other person as may be designated by the Company.  The written notice shall be accompanied by

payment of the purchase price and any agreements required by the Administrator,

the terms of the Plan and/or this Option Agreement.  The Option will be deemed to be exercised upon the receipt by the

Company of such written notice, payment of the purchase price, and duly

executed copies of any agreements required by the Administrator, the terms of

the Plan and/or this Option Agreement. 

The Optionee will have no right to vote or receive dividends and will

have not other rights as a stockholder with respect to such Shares

notwithstanding the exercise of the Option, until the issuance (as evidenced by

the appropriate entry on the books of the Company or of a duly authorized

transfer agent of the Company) of the stock Certificate evidencing the Shares

that are being issued upon exercise of the Option.  The Company will issue (or cause to be issued) such stock

Certificates promptly following the exercise of the Option.  The Certificate or Certificates for the

Shares as to which the Option shall be exercised shall be registered in the

name of the Optionee and shall contain any legend as may be required under the

Plan and any agreements required by the Administrator and/or applicable law.

 

(d)           Method of Payment.  The method of payment of the purchase

price shall be determined by the Administrator and may consist entirely of

cash, check, or any combination of such methods of payment, or such other

consideration or method of payment as may be authorized by the Administrator

and permitted under the Plan.

 

(e)           Restrictions on Exercise.  The Option may not be exercised if the

issuance of the Shares upon such exercise would constitute a violation of any

applicable federal or state securities laws or other laws or regulations.  As a condition to the exercise of the

Option, the Company may require the Optionee to make any representations and

warranties to the Company as may be required by any applicable law or

regulation.

 

5.             Investment Representations.  Unless the Shares have been registered under the

Securities Act, in connection with the grant of the Option, the Optionee

represents and warrants as follows:

 

(a)           The Optionee is

acquiring the Option, and upon exercise of the Option, the Optionee will be

acquiring the Shares for investment for his or her own account, not as a

nominee or agent, and not with a view to, or for resale in connection with, any

distribution thereof.

 

(b)           The Optionee is

aware of the Company’s business affairs and financial condition and has

acquired sufficient information about the Company to reach an informed and

knowledgeable decision to acquire the Shares. 

The Optionee has received all

 

2

 

information

as the Optionee deems necessary and appropriate to enable him or her to

evaluate the financial risk inherent in making an investment in the Shares and

has received satisfactory and complete information concerning the business and

financial condition of the Company in response to all inquiries in respect

thereof.

 

6.             Termination of Employment with the Company.  Subject to the provisions of Section 8

hereof, upon termination of the Optionee’s employment with the Company for any

reason other than death or Disability, the Optionee shall have the right to

exercise the Option at any time within the three (3) month period after the

date of such termination to the extent that the Optionee was entitled to

exercise the Option at the date of such termination.

 

7.             Death or Disability of Optionee.  Upon the death or Disability of the Optionee

while in the employ of the Company, the Option may be exercised at any time

within twelve (12) months after the date of death or termination due to

Disability, in the case of death, by the Optionee’s estate or by a person who

acquired the right to exercise the Option by bequest or inheritance, or, in the

case of Disability, by the Optionee or his legal guardian or representative,

but in any case only to the extent the Optionee was entitled to exercise the

Option at such date; provided, however, that if such disabled Optionee shall

commence any employment or engagement during such twelve (12) month period with

or by a competitor of the Company (including, but not limited to, full or

part-time employment or independent consulting work), as determined solely in

the judgment of the Administrator, then the Option shall terminate immediately

upon the commencement thereof.  To the

extent that the Optionee was not entitled to exercise the Option at the date of

termination, or to the extent the Option is not exercised within the time

specified herein, the Option shall terminate. 

Notwithstanding the foregoing, the Option shall not be exercisable after

the expiration of the term set forth in Section 2 hereof.

 

8.             Forfeiture of Option. 

Notwithstanding any other provision of the Option Agreement,

(a) if the Optionee’s employment with the Company is terminated by the Company

pursuant to the cause termination provisions of an applicable employment

agreement, or (b) if the Optionee’s employment with the Company is terminated

and the Board makes a determination that the Optionee (i) has engaged in any

type of disloyalty to the Company, including without limitation, fraud,

embezzlement, theft, or dishonesty in the course of his employment, (ii) has

been convicted of a felony or other crime involving a breach of trust or other

fiduciary duty owed to the Company, (iii) has disclosed trade secrets or

confidential information of the Company, or (iv) has breached any agreement

with the Company in respect of confidentiality, non-disclosure, non-competition

or otherwise, then, at the election of the Board, all unexercised Options shall

terminate.  In the event of such an

election by the Board, in addition to immediate termination of all unexercised

Options, the Optionee shall forfeit all Shares for which the Company has not

yet delivered share Certificates to the Optionee and the Company shall refund

to the Optionee the Option price paid to the Company with respect to those

Shares.  Notwithstanding anything herein

to the contrary, the Company may withhold delivery of share Certificates

pending the resolution of any inquiry that could lead to a determination

resulting in forfeiture.

 

3

 

9.             Non-transferability of Option.  The Option may not be sold, pledged,

assigned, hypothecated, gifted, transferred or disposed of in any manner either

voluntarily or involuntarily by operation of law, other than by will or by the

laws of descent or distribution, and may be exercised during the lifetime of

the Optionee only by such Optionee. 

Subject to the foregoing and the terms of the Plan, the terms of the Option

Agreement shall be binding upon the executors, administrators, heirs,

successors and assigns of the Optionee.

 

10.           Continuation of Employment.  Neither the Plan nor this Option Agreement shall

confer upon any Optionee any right to continue in the employment of the Company

or limit in any respect the right of the Company to discharge or release the

Optionee at any time, with or without cause and with or without notice.  For purposes of Sections 6, 7 and 8, “Company,”

when used with reference to the employment of the Optionee, shall mean the

Company and any Affiliate, as applicable.

 

11.           Withholding.  The Company reserves the right to withhold, in accordance with

any applicable laws, from any consideration payable to Optionee any taxes

required to be withheld by federal, state or local law as a result of the grant

or exercise of the Option or the sale or other disposition of the Shares issued

upon exercise of the Option.  If the

amount of any consideration payable to the Optionee is insufficient to pay such

taxes or if no consideration is payable to the Optionee, then upon the request

of the Company, the Optionee (or such other person entitled to exercise the

Option pursuant to Section 7 hereof) shall pay to the Company an amount

sufficient for the Company to satisfy any federal, state or local tax

withholding requirements the Company may incur as a result of the grant or

exercise of the Option or the sale or other disposition of the Shares issued

upon the exercise of the Option.

 

12.           The Plan. 

The Option is subject to, and the Company and the Optionee agree to be

bound by, all of the terms and conditions of the Plan as such Plan may be

amended from time to time in accordance with the terms thereof.  Pursuant to the Plan, the Administrator is

authorized to adopt rules and regulations not inconsistent with the Plan as it

shall deem appropriate and proper.  A

copy of the Plan in its present form is available for inspection during

business hours by the Optionee or the persons entitled to exercise the Option

at the Company’s principal office.

 

13.           Conversion to Non-Qualified Option.  Notwithstanding anything to the contrary set

forth herein, this Option is being granted subject to the condition that in the

event the Plan, or any material amendment (as defined in Section 18 of the

Plan) is not approved by the stockholders of the Company within 365 days of the

date that the Plan or material amendment, as applicable, was adopted by the

Board, this Option shall automatically be converted into a Non-Qualified Stock Option.  In addition, neither the Company nor any

member of the Board or Committee shall be liable for any good faith

determination, act or failure to act in connection with the Option which

thereafter is determined to have converted the Option into a Non-Qualified

Stock Option.

 

14.           Early Disposition of Stock.  Subject to the fulfillment by the Optionee

of any conditions upon the disposition of Shares received under the Option, the

Optionee hereby agrees that if he or she disposes of any Shares received under

the Option within two (2) years

 

4

 

from

date of grant or one (1) year after such Shares were transferred to him or her

upon exercise of the Option, he or she will notify the Company in writing

within thirty (30) days after the date of such disposition.  The Optionee acknowledges that disposition

by him or her within two (2) years from the date of grant and one (1) year from

the date of exercise of the Option would disqualify him or her from capital

gain treatment for any gain realized upon such disposition.

 

15.           Entire Agreement.  The Option, together with the Plan and the other exhibits

attached thereto or hereto, represents the entire agreement between the

parties.

 

16.           Governing Law.  This Option shall be construed in accordance with the laws of the

State of Delaware, without regard to the application of the principles of

conflicts of laws.

 

17.           Amendment. 

Subject to the provisions of the Plan, this Option Agreement may only be

amended by a writing signed by each of the parties hereto.

 

	

  Date:

  	

   

  	

   

  	

  EXE TECHNOLOGIES, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Title:

  	

   

  	

   

  
							

 

5

 

ACKNOWLEDGMENT

 

The Optionee acknowledges receipt of a copy of the Plan, a copy of

which is attached hereto, and represents that he or she has read and is

familiar with the terms and provisions thereof, and hereby accepts the Option

subject to all of the terms and provisions thereof.  The Optionee hereby agrees to accept as binding, conclusive and

final all decisions or interpretations of the Administrator upon any questions

arising under the Plan.

 

 

	

  Date:

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Signature

  of Optionee

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Name

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  City,

  State, Zip

  	

   

  
	

   

  	

   

  

 

 

EXE TECHNOLOGIES, INC.

1997 INCENTIVE AND NON-QUALIFIED

STOCK OPTION PLAN

 

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

 

EXE TECHNOLOGIES, INC. (the “Company”) hereby grants to

_________________________  (the

“Optionee”) an option (the “Option”) to purchase a total of __________________

shares of Common Stock, $ .01 par value per share, of the Company (“Common

Stock”), at the price and on the terms set forth herein, and in all respects

subject to the terms and provisions of the EXE TECHNOLOGIES, INC. 1997

INCENTIVE AND NON-QUALIFIED STOCK OPTION PLAN (the “Plan”) applicable to

non-qualified stock options, which terms and provisions are incorporated by

reference herein.  Unless otherwise

defined herein, capitalized terms used but not defined herein shall have the

meanings given to them in the Plan.

 

1.             Nature of the Option.  The Option is intended to be a nonstatutory

stock option and is NOT

intended to be an incentive stock option within the meaning of Section 422 of

the Code, or to otherwise qualify for any special tax benefits to the Optionee.

 

2.             Date

of Grant; Term of Option.  The

Option is granted this ______ day of ___________, ______, and it may not be

exercised later than 5:00 p.m. on the ______ day of __________________ , ______.

 

3.             Option Exercise Price.  The Option exercise price is _______________

($_________) per Share.

 

4.             Exercise of Option.  Except as otherwise provided herein, the

Option shall be exercisable during its term only in accordance with the terms

and provisions of the Plan and this Option Agreement as follows:

 

(a)           Vesting.  Twenty-Five percent of the Option shall vest and become

exercisable on the first anniversary of the date of grant.  The remaining 75% of the Option shall vest

and become exercisable at a rate of 2.083% of the Option on the last day of each

month after the first anniversary of the date of grant, with the number of

shares vesting each month determined by rounding up to the nearest whole number

of shares.

 

(b)           Right to Exercise.  The Vested Amount of each Option may be

exercised at such times and subject to such procedures as the Company may

further provide.

 

(c)           Method

of Exercise.  The Option shall be exercisable by written

notice that shall state the election to exercise the Option, the number of

Shares in respect to which the Option is being exercised and such other

representations and agreements as to the Optionee’s investment intent with

respect to such Shares as may be required by the

 

 

Administrator

or pursuant to the provisions of the Plan. 

Such written notice shall be signed by the Optionee (or, subject to the

approval of the Administrator, a registered securities broker authorized by the

Optionee to exercise the Option pursuant to an executed power of attorney) and

shall be delivered in person or by certified mail to the Secretary of the

Company or such other person as may be designated by the Company.  The written notice shall be accompanied by

payment of the purchase price and any agreements required by the Administrator,

the terms of the Plan and/or this Option Agreement.  The Option will be deemed to be exercised upon the receipt by the

Company of such written notice, payment of the purchase price and duly executed

copies of any agreements required by the Administrator, the terms of the Plan

and/or this Option Agreement.  The Optionee

shall have no right to vote or receive dividends and shall have no other rights

as a stockholder with respect to such Shares, notwithstanding the exercise of

the Option, until the issuance by the Company (as evidenced by the appropriate

entry on the books of the Company or of a duly authorized transfer agent of the

Company) of the stock Certificate evidencing the Shares that are being issued

upon exercise of the Option.  The

Company will issue (or cause to be issued) such stock Certificates promptly

following the exercise of the Option.  The

Certificate or Certificates for the Shares as to which the Option shall be

exercised shall be registered in the name of the Optionee and shall contain any

legend as may be required under the Plan and any agreements required by the

Administrator and/or applicable law.

 

(d)           Method

of Payment.  The method of payment of the purchase price

shall be determined by the Administrator and may consist entirely of cash,

check, or any combination of such methods of payment, or such other

consideration or method of payment as may be authorized by the Administrator

and permitted under the Plan.

 

(e)           Restrictions

on Exercise.  The Option may not be exercised if the

issuance of the Shares upon such exercise would constitute a violation of any

applicable federal or state securities laws or other laws or regulations.  As a condition to the exercise of the

Option, the Company may require the Optionee to make any representations and

warranties to the Company as may be required by any applicable law or

regulation.

 

5.             Investment

Representations.  Unless the

Shares have been registered under the Securities Act, in connection with the

acquisition of the Option, the Optionee represents and warrants as follows:

 

(a)           The Optionee is

acquiring the Option, and upon exercise of the Option, Optionee will be

acquiring the Shares for investment for his or her own account, not as a

nominee or agent, and not with a view to, or for resale in connection with, any

distribution thereof.

 

(b)           The Optionee is aware

of the Company’s business affairs and financial condition and has acquired

sufficient information about the Company to reach an informed and knowledgeable

decision to acquire the Shares.  The

Optionee has received all such information as the Optionee deems necessary and

appropriate to enable him or her to evaluate the financial risk inherent in

making an investment in the Shares and has received satisfactory and complete

information concerning the business and financial condition of the Company in

response to all inquiries in respect thereof.

 

2

 

6.             Termination

of Relationship with the Company.  Subject to the provisions of

Section 8 hereof, upon termination of the Optionee’s employment, consulting or

other relationship with the Company (as the case may be) for any reason other

than death or Disability, the Optionee shall have the right to exercise this

Option up to the Vested Amount as of the date of termination for a period of

three (3) months from the date of such termination, provided that the Optionee

may only exercise the Option to the extent that the Optionee was entitled to

exercise the Option at the date of such termination.

 

7.             Death

or Disability of Optionee.  Upon the death or Disability

of the Optionee while in the employ of or engagement by the Company (as the

case may be), the Option may be exercised up to the Vested Amount at any time

within twelve (12) months after the date of death or termination due to

Disability provided the Optionee was entitled to exercise the Option at the

date of his or her death or termination due to Disability.  In the case of death, the Option may be

exercised by the Optionee’s estate or by a person who acquired the right to

exercise this Option by bequest or inheritance.  In the case of Disability, the Option may be exercised by the

Optionee or his or her legal guardian or representative, but in any case, the

Option may be exercised only to the extent that the Optionee was entitled to

exercise the Option at such date; provided, however, that if such disabled

Optionee shall commence any employment or engagement during such twelve (12)

month period with or by a competitor of the Company (including, but not limited

to, full or part-time employment or independent consulting work), as determined

solely in the judgment of the Administrator, then the Option shall terminate

immediately upon the commencement thereof. 

To the extent that the Optionee was not entitled to exercise the Option

at the date of termination, or to the extent the Option is not exercised within

the time specified herein, the Option shall terminate.  Notwithstanding the foregoing, the Option

shall not be exercisable after the expiration of the term set forth in Section

2 hereof.

 

8.             Forfeiture

of Option.  Notwithstanding any other provision of this

Option Agreement, (a) if an Optionee’s employment with the Company is

terminated by the Company pursuant to the cause termination provisions of an

applicable employment agreement, or (b) if the Optionee’s employment or

consulting relationship with the Company (as the case may be) is terminated and

the Board makes a determination that the Optionee (i) has engaged in any type

of disloyalty to the Company, including without limitation, fraud,

embezzlement, theft, or dishonesty in the course of his employment or

engagement, (ii) has been convicted of a felony or other crime involving a

breach of trust or other fiduciary duty owed to the Company, (iii) has

disclosed trade secrets or confidential information of the Company, or (iv) has

breached any agreement with the Company in respect of confidentiality,

non-disclosure, non-competition or otherwise, then, at the election of the

Board, all unexercised Options shall terminate.  In the event of such an election by the Board, in addition to

immediate termination of all unexercised Options, the Optionee shall forfeit

all Shares for which the Company has not yet delivered share Certificates to

the Optionee and the Company shall refund to the Optionee the Option price paid

to the Company with respect to those Shares. 

Notwithstanding anything herein to the contrary, the Company may

withhold delivery of share Certificates pending the resolution of any inquiry

that could lead to a determination resulting in forfeiture.

 

3

 

9.             Non-transferability

of Option.  The Option may not be sold, pledged,

assigned, hypothecated, gifted, transferred or disposed of in any manner either

voluntarily or involuntarily by operation of law, other than by will or by the

laws of descent or distribution, and may be exercised during the lifetime of

the Optionee only by such Optionee. 

Subject to the foregoing and the terms of the Plan, the terms of this

Option Agreement shall be binding upon the executors, administrators, heirs,

successors and assigns of the Optionee.

 

10.          Continuation

of Employment or Engagement.  Neither the Plan nor this

Option Agreement shall confer upon any Optionee any right to continue in the

service of the Company or limit, in any respect, the right of the Company to discharge

or release the Optionee at any time, with or without cause and with or without

notice.  For purposes of Sections 6, 7,

8 and 10 “Company,” when used with reference to the employment or other service

of the Optionee, shall mean the Company and any Affiliate, as applicable.

 

11.          Withholding.  The

Company reserves the right to withhold, in accordance with any applicable laws,

from any consideration payable to the Optionee any taxes required to be

withheld by federal, state or local law as a result of the grant or exercise of

the Option or the sale or other disposition of the Shares issued upon exercise

of the Option.  In addition, in the case

of an Option granted to an Optionee who is not subject to the tax laws of the

United States, the Optionee shall also be liable, to the extent permitted by

applicable foreign law, for any taxes imposed under foreign law on the Company

or Affiliate of the Company as a result of the grant or exercise of the Option

or the sale or other disposition of the Shares issued upon exercise of the

Option.  If the amount of any

consideration payable to the Optionee is insufficient to pay such taxes or if

no consideration is payable to the Optionee, then upon the request of the

Company, the Optionee (or such other person entitled to exercise the Option

pursuant to Section 7 hereof) shall pay to the Company (a) an amount sufficient

for the Company to satisfy any federal, state or local tax withholding

requirements the Company may incur, or (b) an amount equal to any foreign taxes

incurred by the Company or Affiliate of the Company, as a result of the grant

or exercise of the Option or the sale or other disposition of the Shares issued

upon the exercise of the Option.

 

12.          The

Plan.  This Option Agreement is subject to, and the

Company and the Optionee agree to be bound by, all of the terms and conditions

of the Plan as such Plan may be amended from time to time in accordance with

the terms thereof.  Pursuant to the

Plan, the Administrator is authorized to adopt rules and regulations not

inconsistent with the Plan as it shall deem appropriate and proper.  A copy of the Plan in its present form is

available for inspection during business hours by the Optionee or the persons

entitled to exercise the Option at the Company’s principal office.

 

13.          Entire

Agreement.  This Option Agreement, together with the

Plan, and any other and the other exhibits attached thereto or hereto,

represents the entire agreement between the parties.

 

14.          Governing

Law.  This Option Agreement shall be construed in

accordance with the laws of the State of Delaware, without regard to the

application of the principles of conflicts of laws.

 

4

 

15.          Amendment. 

Subject to the provisions of the Plan, this Option Agreement may only be

amended by a writing signed by each of the parties hereto.

 

 

	

  Date:

  	

   

  	

   

  	

  EXE TECHNOLOGIES, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

  Title:

  	

   

  	

   

  
								

 

5

 

ACKNOWLEDGMENT

 

The Optionee acknowledges receipt of a copy of the Plan, a copy of

which is attached hereto, and represents that he or she has read and is

familiar with the terms and provisions thereof, and hereby accepts the Option

subject to all of the terms and provisions thereof.  The Optionee hereby agrees to accept as binding, conclusive and

final all decisions or interpretations of the Administrator upon any questions

arising under the Plan.

 

	

  Date:

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Signature

  of Optionee

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Name

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  City,

  State, ZipExhibit 10.3

 

EXE TECHNOLOGIES, INC.

 

STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS

Amended and Restated Effective April 4, 2002; and

Amended Effective May 30, 2002

 

EXE Technologies, Inc., a Delaware corporation (the “Company”),

hereby formulates and adopts the following Stock Option Plan (the “Plan”)

for Non-­Employee Directors of the Company.

 

1.             Purpose.  The purpose of the Plan is to secure for the

Company the benefits of the additional incentive inherent in the ownership of

Common Stock, par value $.0l per share, of the Company (“Common Stock”)

by non-employee directors of the Company and to help the Company secure and

retain the services of such non-employee directors.

 

2.             Administration. 

The Plan is intended to be a largely self-­governing formula plan.  To this end, except as provided in Section

4, the Plan requires minimal discretionary action by any administrative body

with regard to any transaction under the Plan. 

To the extent that questions of administration arise, these shall be

resolved by the Board of Directors of the Company (the “Board of Directors”).

 

Subject to the

express provisions of the Plan, the Board of Directors shall have plenary

authority to interpret the Plan, to prescribe, amend and rescind the rules and

regulations relating to it and to make all other determinations deemed

necessary and advisable for the administration of the Plan.  The determination of the Board of Directors

shall be conclusive.

 

3.             Common Stock Subject to Options.  Subject to the adjustment provisions of Section

15 below, a maximum of 300,000 shares of Common Stock may be made subject to

Options (as hereinafter defined) granted under the Plan.  If, and to the extent that, Options granted

under the Plan shall terminate, expire or be canceled for any reason without

having been exercised, new Options may be granted in respect of the shares

covered by such terminated, expired or canceled Options.  The granting and terms of such new Options

shall comply in all respects with the provisions of the Plan.

 

Shares sold upon the

exercise of any Option granted under the Plan may be shares of authorized and

unissued Common Stock, shares of issued Common Stock held in the Company’s

treasury or both.

 

There shall be reserved at

all times for sale under the Plan a number of shares, of either authorized and

unissued shares of Common Stock or shares of Common Stock held in the Company’s

treasury, or both, equal to the maximum number of shares that may be purchased

pursuant to Options granted or that may be granted under the Plan.

 

 

4.             Grant of Options.

 

(a)           Initial Awards. 

Each person who is first elected, appointed or otherwise first becomes

an “Eligible Director” (as defined in Section 5) after the Effective

Date (as defined in Section 19) shall receive an Option to purchase 25,000

shares of Common Stock as of the date on which such person first becomes an

Eligible Director (“Initial Options”).

 

(b)           Special One-Time Award.  Each person who is an Eligible Director as of the Effective Date

shall receive an Option to purchase 25,000 shares of Common Stock as of the

Effective Date (“Special Options”).

 

(c)           Subsequent Awards. 

Each Eligible Director who is re-elected, shall, effective as of the

first day of such Eligible Director’s new three-year term, receive an Option to

purchase 25,000 shares of Common Stock for service as a director of the Company

(“Subsequent Options”); provided that, if a re-elected Eligible

Director’s term is for one year, such Eligible Director shall receive

Subsequent Options only on the third anniversary of his initial election, and,

if re-elected, every three years thereafter; provided further, that if the

Company institutes three-year terms for directors and this causes an Eligible

Director to be eligible for Subsequent Options prior to the expiration of three

years from a prior grant of Initial Options or Subsequent Options, the Board of

Directors shall make equitable adjustments in the granting schedule of

Subsequent Options as it deems appropriate in its sole discretion.

 

(d)           Discretionary Awards.  In addition to Initial Options, Special Options and Subsequent

Options, the Board of Directors may, in its sole discretion, award additional

Options (“Discretionary Options”) to Eligible Directors, in amounts and

subject to such vesting conditions as shall be prescribed in an applicable

Option Agreement.

 

Initial Options, Special

Options, Subsequent Options and Discretionary Options may, individually or

collectively, be referred to as “Options.”

 

(e)           Type of Options. 

All Options granted under the Plan shall be “nonqualified” stock options

subject to the provisions of Section 83 of the Internal Revenue Code of 1986,

as amended (the “Code”).

 

5.             Individuals Eligible.  Only directors of the Company who are not employees of the

Company (“Eligible Directors”) shall participate in the Plan.  A director receiving an Option pursuant to

the Plan may hereinafter be referred to as an “Optionee.”

 

6.             Price.

 

(a)           The option price of each share of Common Stock purchasable

under any Option granted pursuant to the Plan shall be no less than the Fair

Market Value (as defined below) thereof at the time the Option is granted.

 

(b)           For purposes of the Plan, “Fair Market Value” of a

share of Common Stock shall mean:

 

2

 

(i)            If the shares of Common Stock are listed on a national or

regional securities exchange or traded through NASDAQ/NMS, then the Fair Market

Value of a share of Common Stock shall be the closing price for a share of

Common Stock on the exchange or on NASDAQ/NMS, as reported in The Wall

Street Journal or such other source as the Board of Directors deems

reliable on the relevant valuation date, or if there is no trading on that

date, on the next trading date.

 

(ii)           If the shares of Common Stock are traded in the over-the-counter

market, then the Fair Market Value of a share of Common Stock shall be the mean

of the bid and asked prices for a share of Common Stock on the relevant

valuation date as reported in The Wall Street Journal or other source

the Board of Directors deems reliable (or, if not so reported, as otherwise

reported by the National Association of Securities Dealers Automated Quotations

(“NASDAQ”) System or the NASD OTC Bulletin Board), or if there is no

trading on such date, on the next trading date.

 

(iii)          In the absence of an established market for the Common

Stock, the Fair Market Value of a share of Common Stock shall be determined by

the Board of Directors in its sole discretion.

 

7.             Vesting and

Duration of Options.

 

(a)           Vesting.

 

Unless specified otherwise

in an Option Agreement, each Option granted hereunder shall vest and become

exercisable in 1⁄4 increments on each of the first, second, third and fourth

anniversaries of the date such Option is granted; provided that the

Optionee is in the service of the Company as a director on such date.  In the event of the termination of the

Optionee’s service as a director of the Company prior to the fourth anniversary

of the date such Option is granted, such Option, to the extent not yet vested,

shall automatically and without notice terminate and become null and void.

 

(b)           Term of Options.

 

Notwithstanding any

provision of the Plan to the contrary (other than Section 7(a)), the

unexercised portion of any Option granted under the Plan shall automatically

and without notice terminate and become null and void at the time of the

earliest to occur of the following:

 

(i)            The expiration of 10 years from the date on which such

Option was granted;

 

(ii)           The expiration of three (3) months from the date the

Optionee’s service with the Company shall terminate for any reason other than

death or Disability; and

 

3

 

(iii)          The expiration of twelve (12) months from the date the

Optionee’s service with the Company terminates due to death or Disability.

 

(iv)          For purposes of this Plan, “Disability” or “Disabled”

shall mean (i) when the Optionee is determined to be disabled within the

meaning of any long­ term disability policy or program sponsored by the Company

covering the Optionee, as in effect as of the date of such determination, or

(ii) if no such policy or program shall be in effect, when the Optionee is

unable to engage in any substantial gainful activity by reason of a physical or

mental impairment that can be expected to result in death or that has lasted or

can be expected to last for a continuous period of not less than twelve (12)

months.  The determination of whether an

Optionee is Disabled pursuant to subparagraph (ii) shall be determined by the

Board of Directors, whose determination shall be conclusive.

 

8.             Exercise of

Options.

 

(a)           An Option granted under the Plan shall be deemed exercised

when the person entitled to exercise the Option:

 

(i)            delivers written notice to the Company at its principal

business office, directed to the attention of its Corporate Secretary, or to

the Company’s designee of the decision to exercise; and

 

(ii)           concurrently tenders to the Company full payment for the

shares to be purchased pursuant to such exercise, accompanied by any agreements

required by the Board of Directors or the terms of the Plan and any Option

Agreement.

 

(b)           Payment for shares with respect to which an Option is

exercised may be made in any combination of the following: (i) by cash or

certified or official bank check payable to the Company (or the equivalent

thereof acceptable to the Board of Directors); (ii) with the consent of the

Board of Directors in its sole discretion, by personal check (subject to

collection) and which may in the Board of Directors’ discretion be deemed conditional;

and (iii) by delivery of previously ­acquired shares of Common Stock owned by

the grantee for at least six months (or such longer or shorter period as the

Board of Directors may prescribe that will not result in variable accounting

treatment) having a fair market value (determined as of the option exercise

date) equal to the portion of the option exercise price being paid

thereby.  In addition, in the event

there is a public market for the shares and subject to such rules as may be

established by the Board of Directors, payment in accordance with clause (a) of

this Section 8 may be deemed to be satisfied by delivery to the Company of an

assignment of a sufficient amount of the proceeds from the sale of Common Stock

acquired upon exercise to pay for all of the Common Stock acquired upon

exercise and an authorization to the broker or selling agent to pay that amount

to the Company, which sale shall be made at the Optionee’s direction at the

time of exercise; provided, however, that the availability of

this payment method shall be available only if the Board of Directors

determines that the accounting treatment that may result does not adversely

impact the Company.

 

4

 

9.             Nontransferability

of Options.

 

(a)           Except as provided

in Section 9(b), no Option or any right evidenced thereby shall be transferable

in any manner other than by will or the laws of descent and distribution, and,

during the lifetime of an Optionee, only the Optionee (or the Optionee’s court-appointed

legal representative) may exercise an Option.

 

(b)           Options may be

transferred by gift or domestic order to “family members” (as such term is

defined in the General Instructions to Form S-8) of Optionees (which includes,

without limitation, entities in which the Optionee own more than 50% of the

voting interests).

 

10.           Power of Board if Change of Control.  Notwithstanding anything to the contrary set

forth in this Plan, in the event of a Change of Control (as defined below), the

Board of Directors shall have the right, in its sole discretion, to accelerate

the vesting of all Options that have not vested as of the date of the Change of

Control and/or to establish an earlier date for the expiration of the exercise

of an Option (notwithstanding a later expiration of exercisability set forth in

an Option Agreement).  In addition, in

the event of a Change of Control of the Company, the Board of Directors shall

have the right, in its sole discretion, subject to and conditioned upon a Sale

of the Company (as defined below): (a) to arrange for the successor company (or

other entity) to assume all of the rights and obligations of the Company under

this Plan; or (b) to terminate this Plan and (i) to pay to all Optionees cash

with respect to those Options that are vested as of the date of the Sale of the

Company in an amount equal to the difference between the Option Price and the

Fair Market Value of a Share of Common Stock (determined as of the date the

Plan is terminated) multiplied by the number of Options that are vested as of

the date of the Sale of the Company which are held by the Optionee as of the

date of the Sale of the Company, or (ii) to arrange for the exchange of all

Options for options to purchase common stock in the successor corporation, or (iii)

to distribute to each Optionee other property in an amount equal to and in the

same form as the Optionee would have received from the successor corporation if

the Optionee had owned the Shares subject to Options that are vested as of the

date of the Sale of the Company rather than the Option at the time of the Sale

of the Company.  The form of payment or

distribution to the Optionee pursuant to this Section shall be determined by

the Board of Directors in its sole discretion.

 

For purposes of this Plan, “Change of Control” shall mean the

happening of an event (excluding a public offering) that shall be deemed to

have occurred upon the earliest to occur of the following events: (i) the date

the stockholders of the Company (or the Board, if stockholder action is not

required) approve a plan or other arrangement pursuant to which the Company

will be dissolved or liquidated; (ii) the date the stockholders of the Company

(or the Board, if stockholder action is not required) approve a definitive

agreement to sell or otherwise dispose of all or substantially all of the

assets of the Company; (iii) the date the stockholders of the Company (or the

Board, if stockholder action is not required) and the stockholders of the other

constituent corporations (or their respective boards of directors, if and to

the extent that stockholder action is not required) have approved a definitive

agreement to merge or consolidate the Company with or into another corporation,

other than, in either case, a merger or consolidation of the Company in which

holders of shares of the Company’s voting capital stock immediately prior to

the merger or consolidation will have at least fifty percent (50%) of the

 

5

 

ownership of voting capital

stock of the surviving corporation immediately after the merger or

consolidation (on a fully diluted basis), which voting capital stock is to be

held by each such holder in the same or substantially similar proportion (on a

fully diluted basis) as such holder’s ownership of voting capital stock of the

Company immediately before the merger or consolidation; (iv) the date any

entity, person or group (within the meaning of Section 13(d)(3) or Section

14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange

Act”)), other than (A) the Company, (B) any of its subsidiaries, (C) any of

the holders of the capital stock of the Company, as determined on the date that

this Plan is adopted by the Board, (D) any employee benefit plan (or related

trust) sponsored or maintained by the Company or any of its Subsidiaries or (E)

any Affiliate of any of the foregoing, shall have acquired beneficial ownership

of, or shall have acquired voting control over more than fifty percent (50%) of

the outstanding shares of the Company’s voting capital stock (on a fully

diluted basis), unless the transaction pursuant to which such person, entity or

group acquired such beneficial ownership or control resulted from the original

issuance by the Company of shares of its voting capital stock and was approved

by at least a majority of directors who shall have been members of the Board

for at least twelve (12) months prior to the date of such approval; (v) the

first day after the date of this Plan when directors are elected such that there

shall have been a change in the composition of the Board such that a majority

of the Board shall have been members of the Board for less than twelve (12)

months, unless the nomination for election of each new director who was not a

director at the beginning of such twelve (12) month period was approved by a

vote of at least sixty percent (60%) of the directors then still in office who

were directors at the beginning of such period; or (vi) the date upon which the

Board determines (in its sole discretion) that based on then current available

information, the events described in clause (iv) are reasonably likely to

occur.

 

“Sale of the Company”

shall mean the earliest of: (i) the closing of a sale, transfer or other

disposition of all or substantially all of the shares of the capital stock then

outstanding of the Company (except if such transferee is then an Affiliate);

(ii) the closing of a sale, transfer or other disposition of all or

substantially all of the assets of the Company (except if such transferee is

then an Affiliate); or (iii) the merger or consolidation of the Company with or

into another corporation (except an Affiliate), other than a merger or

consolidation of the Company in which the holders of shares of the Company’s

voting capital stock outstanding immediately before such merger or

consolidation hold greater than fifty percent (50%) of the surviving entity’s

voting capital stock after such consolidation or merger.

 

11.           Forfeiture. 

Notwithstanding any other provision of this Plan, if an Optionee’s

service with the Company is terminated and the Board of Directors makes a

determination that the Optionee (a) has engaged in any type of disloyalty to

the Company, including without limitation, fraud, embezzlement, theft, or

dishonesty in the course of Optionee’s service, (b) has been convicted of a

felony or other crime involving a breach of trust or fiduciary duty owed to the

Company, or (c) has made an unauthorized disclosure of trade secrets or

confidential information of the Company then, at the election of the Board of

Directors, all unexercised Options held by the Optionee (whether or not then

exercisable) shall terminate.  In the

event of such an election by the Board of Directors, in addition to immediate

termination of all unexercised Options, the Optionee shall forfeit all shares

for which the Company has not yet delivered stock certificates to the Optionee

and the Company shall refund to the Optionee the

 

6

 

exercise price paid to it upon exercise of the Option with respect to

such shares.  Notwithstanding anything

herein to the contrary, the Company may withhold delivery of stock certificates

pending the resolution of any inquiry that could lead to a finding resulting in

forfeiture.

 

12.           Rights of Optionee.  Neither the Optionee nor the Optionee’s executor or administrator

shall have any of the rights of a stockholder of the Company with respect to

the shares subject to an Option until certificates for such shares shall

actually have been issued upon the due exercise of such Option.  Unless the Board of Directors otherwise

determines in accordance with Section 15 below, no adjustment shall be made for

any regular cash dividend for which the record date is prior to the date of

such due exercise and full payment for such shares has been made therefore.

 

13.           Right to Terminate Service.  Nothing in the Plan or in any Option shall

confer upon any Optionee the right to continue in the services of the Company

or affect the right of the Company to terminate the Optionee’s service at any

time, subject, however, to the provisions of any agreement between the Company

and the Optionee.

 

14.           Nonalienation of Benefits.  Except as otherwise expressly provided

herein, no right or benefit under the Plan shall be subject to anticipation,

alienation, sale, assignment, hypothecation, pledge, exchange, transfer,

encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,

hypothecate, pledge, exchange, transfer, encumber or charge the same shall be

void.  To the extent permitted by

applicable law, no right or benefit hereunder shall in any manner be liable for

or subject to the debts, contracts, liabilities or torts of the person entitled

to such benefits.

 

15.           Adjustment Upon Changes in Capitalization, etc.  In the event that the Board of Directors

determines that any dividend or other distribution (whether in the form of

cash, shares of Common Stock, other securities, or other property),

recapitalization, stock split, reverse stock split, reorganization, merger,

consolidation, split-up, spin-off, combination, repurchase, or exchange of

shares of Common Stock or other securities of the Company, issuance of warrants

or other rights to purchase shares of Common Stock or other securities of the

Company, or other similar corporate transaction or event affects the shares of

Common Stock such that an adjustment is determined by the Board of Directors in

its discretion to be appropriate in order to prevent dilution or enlargement of

the benefits or potential benefits intended to be made available under the

Plan, then the Board of Directors shall, in such manner as it may deem

equitable, adjust any or all of (i) the number of shares of Common Stock or

other securities of the Company (or number and kind of other securities or

property) with respect to which Options may be granted, including the amounts

specified in Section 4, (ii) the number of shares of Common Stock or other

securities of the Company (or number and kind of other securities or property)

subject to outstanding Options, and (iii) the grant or exercise price with

respect to any Option or, if deemed appropriate, make provision for a cash

payment to the holder of an outstanding Option in consideration for the

cancellation of such Option.

 

16.           Form of Agreements with Optionees.  Each Option granted pursuant to the Plan

shall be evidenced by an individual agreement (“Option Agreement”) in

writing and shall have

 

7

 

such form, terms and provisions, not inconsistent with the provisions

of the Plan, as the Board of Directors shall provide for such Option.  In the event that any provisions of an

Option Agreement differ from the terms of the Plan, the Plan provisions shall

govern.  Upon exercise of an Option, the

Board of Directors may, from time to time, require the Optionee to sign

agreements in connection with the Option as it, in its sole discretion, deems

advisable.  The Option Agreement and any

other agreement required by the Plan or the Option Agreement, as determined by

the Board of Directors, may contain such other provisions of this Plan,

including, without limitation, restrictions upon or conditions precedent to the

exercise of the Option.

 

17.           Purchase for Investment.  Whether or not the Options and shares covered by the Plan have

been registered under the Securities Act of 1933, as amended, each person

exercising an Option under the Plan may be required by the Company to give a

representation in writing that such person is acquiring such shares for investment

and not with a view to, or in connection with, the sale, transfer or

distribution of any part thereof.  The

Company will endorse any necessary legend referring to the foregoing

restriction upon the certificate or certificates representing any shares issued

or transferred to the Optionee upon the exercise of any Option granted under

the Plan.

 

18.           Termination and Amendment of Plan and Options.

 

(a)           Unless the Plan shall theretofore have been terminated as

hereinafter provided, Options may be granted under the Plan, as provided in

Section 4 hereof, prior to the tenth anniversary of the Effective Date on which

date the Plan will expire, except as to Options then outstanding under the

Plan.  Such Options shall remain in

effect until they have been exercised, have expired or have been canceled.

 

(b)           The Plan may be terminated or amended at any time by the

Board of Directors; provided, however, that (i) any such

amendment shall comply with all applicable laws and applicable stock exchange

listing requirements and (ii) any amendment for which stockholder approval is

necessary to comply with any tax or regulatory requirement shall not be

effective until such approval has been obtained.

 

(c)           No termination, modification or amendment of the Plan,

without the consent of the Optionee, may adversely affect the rights of such

person with respect to any Option previously granted under the Plan.

 

19.           Effective Date of Plan.  The Plan shall become effective upon approval of the Plan by the

Board of Directors (the “Effective Date”).

 

20.           Government and Other Regulations.  The obligation of the Company with respect

to Options granted under the Plan shall be subject to all applicable laws,

rules and regulations and such approvals by any governmental agency as may be

required, including, without limitation, the effectiveness of any registration

statement required under the Securities Act of 1933, as amended, and the rules

and regulations of any securities exchange on which the Common Stock may be

listed.

 

8

 

21.           Withholding. 

The Company’s obligation to deliver shares of Common Stock in respect of

any Option granted under the Plan shall be subject to any applicable federal,

state and local tax withholding requirements. 

Federal, state and local withholding tax, if any, due upon the exercise

of any Option, may be paid in shares of Common Stock (including the withholding

of shares subject to an Option), provided, however, that the total tax

withholding where stock is being used to satisfy such tax obligations cannot

exceed the Company’s minimum statutory withholding obligations (based on

minimum statutory withholding rates for federal and state tax purposes,

including payroll taxes, that are applicable to such supplemental taxable income).

 

22.           Separability. 

If any part of the Plan is declared by any court or governmental

authority to be unlawful or invalid, such unlawfulness or invalidity shall not

invalidate any portion of the Plan not declared to be unlawful or invalid.  Any Section or part of a Section so declared

to be unlawful or invalid shall, if possible, be construed in a manner which

will give effect to the terms of such Section or part of a Section to the

fullest extent possible while remaining lawful and valid.

 

23.           Non-Exclusivity of the Plan.  Neither the adoption of the Plan by the

Board of Directors nor the submission of the Plan to the stockholders of the

Company for approval shall be construed as creating any limitation on the power

of the Board of Directors to adopt such other incentive arrangements as it may

deem desirable, including, without limitation, the granting of stock options

and the awarding of stock and cash otherwise than under the Plan, and such

arrangements may be either generally applicable or applicable only in specific

cases.

 

24.           Exclusion from Pension and Profit-Sharing Computation.  By acceptance of an Option, each Optionee

shall be deemed to have agreed that such grant is special incentive

compensation that will not be taken into account, in any manner, as salary,

compensation or bonus in determining the amount of any payment under any

pension, retirement or other employee benefit plan of the Company or any of its

affiliates.  In addition, such Option

will not affect the amount of any life insurance coverage, if any, provided by

the Company on the life of the Optionee.

 

25.           Governing Law. 

The Plan shall be governed by, and construed in accordance with, the

laws of the State of Delaware.

 

AMENDMENT NO. 1 TO THE

EXE TECHNOLOGIES, INC.

STOCK OPTION PLAN FOR

NON-EMPLOYEE DIRECTORS

 

Section 3 of the EXE

Technologies, Inc. Stock Option Plan for Non-Employee Directors (the “Plan”) is

hereby amended to increase the number of shares of Common Stock available for

issuance thereunder from 300,000 shares to 600,000 shares.

 

Adopted by the Board of

Directors

on April 4, 2002

Adopted by the Stockholders

on May 30, 2002

 

9

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