Document:

Prepared by R.R. Donnelley Financial -- 1999 Directors Stock Option Plan Effect 01/01/2002

 Exhibit 10.1 
 OPENWAVE SYSTEMS INC. 
  
 1999 DIRECTORS’ STOCK OPTION PLAN1 
 as Amended and Restated effective January 1, 2002 
  
 Termination Date: June 9, 2009 
  
 1.    Purposes of the Plan.    The purposes of this Openwave Systems Inc. 1999 Directors’ Stock Option Plan are to attract and retain the best available personnel for service as Directors
of the Company, to provide additional incentive to the Outside Directors of the Company to serve as Directors, and to encourage their continued service on the Board. 
  
 All options granted hereunder shall be nonstatutory stock options. 
  
 2.    Definitions.    As used herein, the following definitions shall apply: 
  
 (a)    “Board” means the Board of Directors of the Company. 
  
 (b)    “Change of Control”  means the occurrence of any of the following events: 
  
 (i)    The sale, exchange, lease or other disposition of all or substantially all of the assets of the Company to
a person or group of related persons (as such terms are defined or described in Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that will continue the business of the Company in the
future; 
  
 (ii)    A merger or consolidation involving the Company in which the voting
securities of the Company owned by the shareholders of the Company immediately prior to such merger or consolidation do not represent, after conversion if applicable, more than fifty percent (50%) of the total voting power of the surviving
controlling entity outstanding immediately after such merger or consolidation; provided that any person who (1) was a beneficial owner (within the meaning of Rules 13d-3 and 13d-5 promulgated under the Exchange Act) of the voting securities of the
Company immediately prior to such merger or consolidation, and (2) is a beneficial owner of more than 20% of the securities of the Company immediately after such merger or consolidation, shall be excluded from the list of “shareholders of the
Company immediately prior to such merger or consolidation” for purposes of the preceding calculation); or 
  
 (iii)    The direct or indirect acquisition of beneficial ownership of at least fifty percent (50%) of the voting securities of the Company by a person or group of related persons (as such terms are defined or described
in Sections 3(a)(9) and 13(d)(3) of the Exchange 
 

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	Formerly known as the Unwired Planet, Inc. 1999 Directors' Stock Option Plan. This Plan was updated on June 25, 2001 to reflect the name change of the Company and to reflect
the 2-1 stock split of the Company's outstanding common stock effected in November 1999. 
 

 

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 Act); provided, that “person or group of related persons” shall not include the Company, a subsidiary of the Company, or an
employee benefit plan sponsored by the Company or a subsidiary of the Company (including any trustee of such plan acting as trustee). 
  
 (c)    “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (d)    “Common Stock” means the Common Stock of the Company. 
  
 (e)    “Company” means Openwave Systems Inc., a Delaware corporation. 
  
 (f)    “Continuous Status as a Director” means the absence of any interruption or termination of service as a Director. 
  
 (g)    “Corporate Transaction” means a dissolution or liquidation of the Company, a sale of all or substantially all of the
Company’s assets, or a merger, consolidation or other capital reorganization of the Company with or into another corporation. 
  
 (h)    “Director” means a member of the Board. 
  
 (i)    “Employee” means any person, including any officer or Director, employed by the Company or any Parent or Subsidiary of the Company. The payment of a director’s fee by the Company shall not be
sufficient in and of itself to constitute “employment” by the Company. 
  
 (j)    “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (k)    “Option” means a stock option granted pursuant to the Plan. All options shall be nonstatutory stock options (i.e., options that are not intended to qualify as incentive
stock options under Section 422 of the Code). 
  
 (l)    “Optioned Stock”
means the Common Stock subject to an Option. 
  
 (m)    “Optionee” means an
Outside Director who receives an Option. 
  
 (n)    “Outside Director” means
a Director who is not an Employee. 
  
 (o)    “Parent” means a “parent
corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (p)    “Plan” means this Openwave Systems Inc. 1999 Directors’ Stock Option Plan. 
  
 (q)    “Share” means a share of the Common Stock, as adjusted in accordance with Section 11 of the Plan. 
  
 (r)    “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of
the Code. 
 

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 3.    Stock Subject to the Plan.    Subject to
the provisions of Section 11 of the Plan, the maximum aggregate number of Shares which may be optioned and sold under the Plan is 1,200,000 Shares of Common Stock (the “Pool”). The Shares may be authorized, but unissued, or reacquired
Common Stock. 
  
 If an Option should expire or become unexercisable for any reason without having been exercised in full, the
unpurchased Shares which were subject thereto shall, unless the Plan has been terminated, become available for future grant under the Plan. In addition, any Shares of Common Stock that are retained by the Company upon exercise of an Option in order
to satisfy the exercise price for such Option, or any withholding taxes due with respect to such exercise, shall be treated as not issued and shall continue to be available under the Plan. If Shares that were acquired upon exercise of an Option are
subsequently repurchased by the Company, such Shares shall not in any event be returned to the Plan and shall not become available for future grant under the Plan. 
  
 4.    Administration of and Grants of Options under the Plan. 
  
 (a)    Administrator.    Except as otherwise required herein, the Plan shall be administered by the Board. 

 
 (b)    Procedure for Grants.    All grants of Options hereunder shall be
automatic and nondiscretionary and shall be made strictly in accordance with the following provisions: 
  
 (i)    No person shall have any discretion to select which Outside Directors shall be granted Options or to determine the number of Shares to be covered by Options granted to Outside Directors. 
  
 (ii)    Each Outside Director who becomes an Outside Director for the first time after January 1, 2002, (a
“New Outside Director”) shall be automatically granted an Option to purchase 60,000 Shares (the “First Option”) on the date on which such person first becomes an Outside Director, whether through election by the stockholders of
the Company or appointment by the Board to fill a vacancy. 
  
 (iii)    Each New Outside
Director shall thereafter be automatically granted an Option to purchase 36,000 Shares (a “Subsequent Option”) on the first Board of Directors meeting date of each calendar year that begins at least six months following the grant date of
the First Option to such New Outside Director. 
  
 (iv)    Each Outside Director who is not a
New Outside Director shall automatically be granted a Subsequent Option to purchase 36,000 Shares on the first Board of Directors meeting date of each calendar year beginning on or after January 1, 2002. 
  
 (v)    Notwithstanding the provisions of subsections (ii) and (iii) hereof, in the event that a grant would cause
the number of Shares subject to outstanding Options plus the number of Shares previously purchased upon exercise of Options to exceed the Pool, then each such automatic grant shall be for that number of Shares determined by dividing the total

 

 3 

 
number of Shares remaining available for grant by the number of Outside Directors receiving an Option on the automatic grant date. Any further grants shall then be deferred until such time, if
any, as additional Shares become available for grant under the Plan through action of the stockholders to increase the number of Shares which may be issued under the Plan or through cancellation or expiration of Options previously granted hereunder.

  
 (vi)    Notwithstanding the provisions of subsections (ii) and (iii) hereof, any grant of
an Option made before the Company has obtained stockholder approval of the Plan in accordance with Section 17 hereof shall be conditioned upon obtaining such stockholder approval of the Plan in accordance with Section 17 hereof. 

 
 (vii)    The terms of each option granted hereunder shall be as follows: 
  
 (1)    each option shall be exercisable only while the Outside Director remains a Director of the Company, except
as set forth in Section 9 below; 
  
 (2)    the exercise price per Share shall be 100% of the
fair market value per Share on the date of grant of each option, determined in accordance with Section 8 hereof; 
  
 (3)    each Option granted as a First Option to a New Outside Director under Section 4(b)(ii) above shall vest and become exercisable, with respect to 15,000 of the underlying shares, on the one year anniversary of the
date of grant, and with respect to the remaining 45,000 of the underlying shares, in equal installments of 1,250 shares per month commencing with the 13th monthly anniversary of the grant date and ending on the 48th monthly anniversary of
the grant date (and if a subsequent calendar month has a fewer number of days than the date of the monthly anniversary, then on the last day of such month); provided, however, that such shares underlying the Option shall only vest as long the
Outside Director remains in Continuous Status as a Director of the Company; and 
  
 (4)    each Option granted as a Subsequent Option to an Outside Director under Sections 4(b)(iii) or (iv) on or after January 1, 2002, shall vest and become exercisable in equal installments of 750 shares per month on
each monthly anniversary of the date of grant, commencing on the first monthly anniversary and ending on the 48th monthly
anniversary (and if a subsequent calendar month has a fewer number of days than the date of the monthly anniversary, then on the last day of such month); provided, however, that such shares underlying the option shall only vest as long the Outside
Director remains in Continuous Status as a Director of the Company. 
  
 (5)    notwithstanding Sections 4(b)(vii)(3) and (4), each Option granted as a First Option or a Subsequent Option to an Outside Director under Sections 4(b)(iii) or (iv) on or after January 1, 2002, shall immediately
vest and become exercisable upon the termination of such Outside Director’s Continuous Status as a Director for any reason (except upon such Outside Director’s resignation from the Board or determination not to stand for re-election) upon
the occurrence of or within twenty-four (24) months following a Change of Control. 
 

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 (c)    Powers of the
Board.    Subject to the provisions and restrictions of the Plan, the Board shall have the authority, in its discretion: (i) to determine, upon review of relevant information and in accordance with Section 8(b) of the Plan,
the fair market value of the Common Stock; (ii) to determine the exercise price per Share of Options to be granted, which exercise price shall be determined in accordance with Section 8 of the Plan; (iii) to interpret the Plan; (iv) to prescribe,
amend and rescind rules and regulations relating to the Plan; (v) to authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Option previously granted hereunder; and (vi) to make all other
determinations deemed necessary or advisable for the administration of the Plan. 
  
 (d)    Effect of Board’s Decision.    All decisions, determinations and interpretations of the Board shall be final and binding on all Optionees and any other holders of any Options
granted under the Plan. 
  
 (e)    Suspension or Termination of
Option.    If the Chief Executive Officer or his or her designee reasonably believes that an Optionee has committed an act of misconduct, such officer may suspend the Optionee’s right to exercise any Option pending a
determination by the Board (excluding the Outside Director accused of such misconduct). If the Board (excluding the Outside Director accused of such misconduct) determines an Optionee has committed an act of embezzlement, fraud, dishonesty,
nonpayment of an obligation owed to the Company, breach of fiduciary duty or deliberate disregard of the Company rules resulting in loss, damage or injury to the Company, or if an Optionee makes an unauthorized disclosure of any Company trade secret
or confidential information, engages in any conduct constituting unfair competition, induces any Company customer to breach a contract with the Company or induces any principal for whom the Company acts as agent to terminate such agency
relationship, neither the Optionee nor his or her estate shall be entitled to exercise any Option whatsoever. In making such determination, the Board of Directors (excluding the Outside Director accused of such misconduct) shall act fairly and shall
give the Optionee an opportunity to appear and present evidence on Optionee’s behalf at a hearing before the Board or a committee of the Board. 
  
 5.    Eligibility.    Options may be granted only to Outside Directors. All Options shall be automatically granted in accordance with the terms set forth in Section 4(b)
above. An Outside Director who has been granted an Option may, if he or she is otherwise eligible, be granted an additional Option or Options in accordance with such provisions. 
  
 The Plan shall not confer upon any Optionee any right with respect to continuation of service as a Director or nomination to serve as a Director, nor shall it interfere in any way with
any rights which the Director or the Company may have to terminate his or her directorship at any time. 
  
 6.    Term of Plan; Effective Date.    The Plan shall become effective on the effectiveness of the registration statement under the Securities Act of 1933, as amended, relating 

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 to the Company’s initial public offering of securities. It shall continue in effect for a term of ten (10) years, i.e., until June 9, 2009, unless sooner
terminated under Section 13 of the Plan. 
  
 7.    Term of Options.    The term of
each Option granted after January 1, 2002 shall be ten (10) year(s) from the date of grant thereof unless an Option terminates sooner pursuant to Section 9 below. 
  
 8.    Exercise Price and Consideration. 
  
 (a)    Exercise Price.    The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be 100% of the fair market value per Share on
the date of grant of the Option. 
  
 (b)    Fair Market
Value.    The fair market value shall be determined by the Board; provided however that in the event the Common Stock is traded on the Nasdaq National Market or listed on a stock exchange, the fair market value per Share
shall be the closing sales price on such system or exchange on the date of grant of the Option (or, in the event that the Common Stock is not traded on such date, on the immediately preceding trading date), as reported in The Wall Street Journal, or
if there is a public market for the Common Stock but the Common Stock is not traded on the Nasdaq National Market or listed on a stock exchange, the fair market value per Share shall be the mean of the bid and asked prices of the Common Stock in the
over-the-counter market on the date of grant, as reported in The Wall Street Journal (or, if not so reported, as otherwise reported by the National Association of Securities Dealers Automated Quotation (“Nasdaq”) System). 

 
 (c)    Form of Consideration.    The consideration to be paid for the Shares
to be issued upon exercise of an Option shall consist entirely of cash, check, other Shares of Common Stock having a fair market value on the date of surrender equal to the aggregate exercise price of the Shares as to which the Option shall be
exercised (which, if acquired from the Company, shall have been held for at least six months), or any combination of such methods of payment and/or, if expressly permitted under the terms of an Option, any other consideration or method of payment as
shall be permitted under applicable corporate law. 
  
 9.    Exercise of Option. 

 
 (a)    Procedure for Exercise; Rights as a Stockholder.    Any Option
granted hereunder shall be exercisable at such times as are set forth in Section 4(b) above; provided however that no Options shall be exercisable prior to stockholder approval of the Plan in accordance with Section 17 below has been obtained.

  
 An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the
terms of the Option by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may consist of any consideration and method of payment
allowable under Section 8(c) of the Plan. Until the issuance (as 
 

 6 

  
 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 right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. A share
certificate for the number of Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock
certificate is issued, except as provided in Section 11 of the Plan. 
  
 Exercise of an Option in any manner
shall result in a decrease in the number of Shares which 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. 
  
 (b)    Termination of Continuous Status as a Director.    If an interruption or
termination of the Continuous Status as a Director occurs to an Outside Director, he or she may, but only within ninety (90) days after the date he or she ceases to be a Director of the Company, exercise his or her Option to the extent that he or
she was entitled to exercise it at the date of such termination. Notwithstanding the foregoing, in no event may the Option be exercised after its term set forth in Section 7 has expired. To the extent that such Outside Director was not entitled to
exercise an Option at the date of such termination, or does not exercise such Option (to the extent he or she was entitled to exercise) within the time specified above, the Option shall terminate and the Shares underlying the unexercised portion of
the Option shall revert to the Plan. 
  
 (c)    Disability of
Optionee.    Notwithstanding Section 9(b) above, in the event a Director is unable to continue his or her service as a Director with the Company as a result of his or her total and permanent disability (as defined in Section
22(e)(3) of the Code), he or she may, but only within twelve (12) months from the date of such termination, exercise his or her Option to the extent he or she was entitled to exercise it at the date of such termination. Notwithstanding the
foregoing, in no event may the Option be exercised after its term set forth in Section 7 has expired. To the extent that he or she was not entitled to exercise the Option at the date of termination, or if he or she does not exercise such Option (to
the extent he or she was entitled to exercise) within the time specified above, the Option shall terminate and the Shares underlying the unexercised portion of the Option shall revert to the Plan. 
  
 (d)    Death of Optionee.    In the event of the death of an Optionee: (A) during the
term of the Option who is, at the time of his or her death, a Director of the Company and who shall have been in Continuous Status as a Director since the date of grant of the Option, or (B) three (3) months after the termination of Continuous
Status as a Director, the Option may be exercised, at any time within twelve (12) months following the date of death, by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to
the extent of the right to exercise that had accrued at the date of death or the date of termination, as applicable. Notwithstanding the foregoing, in no event may the Option be exercised after its term set forth in Section 7 has expired. To the
extent that an Optionee was not entitled to exercise the Option at the date of death or termination or if he or she does not exercise such Option (to the extent he or she was entitled to exercise) within the time specified above, the Option shall
terminate and the Shares underlying the unexercised portion of the Option shall revert to the Plan. 
 

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 10.    Nontransferability of Options.    The
Option may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent or distribution or pursuant to a qualified domestic relations order (as defined by the Code or the rules
thereunder). The designation of a beneficiary by an Optionee does not constitute a transfer. An Option may be exercised during the lifetime of an Optionee only by the Optionee or a transferee permitted by this Section. 
  
 11.    Adjustments Upon Changes in Capitalization; Corporate Transactions. 
  
 (a)    Adjustment.    Subject to any required action by the stockholders of the
Company, the number of shares of Common Stock covered by each outstanding Option, the number of Shares of Common Stock set forth in Sections 4(b)(ii),(iii) and (iv) above, and the number of Shares of Common Stock which have been authorized for
issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option, as well as the price per Share of Common Stock covered by each such outstanding Option,
shall be proportionately adjusted for any increase or decrease in the number of issued Shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock (including any such
change in the number of Shares of Common Stock effected in connection with a change in domicile of the Company) or any other increase or decrease in the number of issued Shares of Common Stock effected without receipt of consideration by the
Company; provided however that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option. 
  
 (b)    Corporate Transactions; Change of Control.    In the event of a Corporate Transaction, each outstanding Option shall be (i) continued by the Company, (ii) assumed by the successor to the
Company or a Parent or Subsidiary of the Company or such successor, or (iii) an equivalent Option shall be substituted by the successor or a Parent or Subsidiary of such successor or the Company. In the event that the Company shall not continue each
outstanding Option and the Company does not reach agreement with any other entity to assume the outstanding Options or to substitute equivalent options, the Options shall terminate upon the consummation of the transaction; provided, however, that
each Optionee shall have the right to exercise all of his or her Options to purchase Shares, immediately prior to the consummation of the transaction, to the extent that he or she was entitled to exercise such Options immediately prior to the
consummation of the transaction. In addition, in the event of a Change of Control, each outstanding Option shall be (i) continued by the Company, (ii) assumed by the successor to the Company or a Parent or Subsidiary of the Company or such
successor, or (iii) an equivalent option shall be substituted by the successor or a Parent or Subsidiary of the Company or such successor. In the event that the Company shall not continue each outstanding Option and the Company does not reach
agreement with any other entity to assume the outstanding
 
 

 8 

 
Options or to substitute equivalent options, the Options shall terminate upon the consummation of the transaction; provided, however, that each Optionee shall have the right toexercise all of his
or her Options to purchase Shares in their entirety immediately prior to the consummation of the transaction. 
  
 Notwithstanding the provisions of the preceding paragraph of this Section 11(b), in no event may the Option be exercised after its term set forth in Section 7 has expired. To the extent that an Outside Director was not entitled to exercise
an Option immediately prior to the consummation of the transaction or does not exercise such Option (to the extent he or she was entitled to exercise) within the time specified above, the Option shall terminate and the Shares underlying the
unexercised portion of the Option shall revert to the Plan. 
  
 For purposes of this Section 11(b), an Option
shall be considered assumed, without limitation, if, at the time of issuance of the stock or other consideration upon such Corporate Transaction or Change of Control, each Optionee would be entitled to receive upon exercise of an Option the same
number and kind of shares of stock or the same amount of property, cash or securities as the Optionee would have been entitled to receive upon the occurrence of such transaction if the Optionee had been, immediately prior to such transaction, the
holder of the number of Shares of Common Stock covered by the Option at such time (after giving effect to any adjustments in the number of Shares covered by the Option as provided for in this Section 11); provided however that if such consideration
received in the transaction was not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the Option to be
solely common stock of the successor corporation or its Parent equal to the Fair Market Value of the per Share consideration received by holders of Common Stock in the transaction. 
  
 (c)    Certain Distributions.    In the event of any distribution to the Company’s stockholders of securities of any
other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of consideration by the Company, the Administrator may, in its discretion, appropriately adjust the price per Share of Common Stock covered
by each outstanding Option to reflect the effect of such distribution. 
  
 12.    Time of Granting
Options.    The date of grant of an Option shall, for all purposes, be the date determined in accordance with Section 4(b) hereof. Notice of the determination shall be given to each Outside Director to whom an Option is so
granted within a reasonable time after the date of such grant. 
  
 13.    Amendment and Termination of the
Plan. 
  
 (a)    Amendment and
Termination.    The Board may amend or terminate the Plan from time to time in such respects as the Board may deem advisable; provided that, to the extent necessary or desirable to comply with Applicable
Laws (as defined in Section 14 below), the Company shall obtain approval of the stockholders of the Company to Plan amendments to the extent and in the manner required by such Applicable Laws. 
 

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 (b)    Effect of Amendment or
Termination.    Any such amendment or termination of the Plan that would impair the rights of any Optionee shall not affect Options already granted to such Optionee and such Options shall remain in full force and effect as if
this Plan had not been amended or terminated, unless mutually agreed otherwise between the Optionee and the Board, which agreement must be in writing and signed by the Optionee and the Company. 
  

14.    Conditions Upon Issuance of Shares.    Notwithstanding any other provision of the Plan or any agreement entered
into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have no liability for failure, to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with the legal requirements relating
to the administration of stock option plans under applicable U.S. state corporate laws, U.S. federal and applicable state securities laws, the Code, any stock exchange or Nasdaq rules or regulations to which the Company may be subject and the
applicable laws of any other country or jurisdiction where Options are granted under the Plan, as such laws, rules, regulations and requirements shall be in place from time to time (the “Applicable Laws”). Such compliance shall be
determined by the Company in consultation with its legal counsel. 
  
 As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the time of any such exercise 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 is required by law. 
  
 15.    Reservation of
Shares.    The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 

 
 16.    Option Agreement.    Options shall be evidenced by written option agreements in such
form as the Board shall approve. 
  
 17.    Stockholder Approval.    If required by
the Applicable Laws, continuance of the Plan shall be subject to approval by the stockholders of the Company. Such stockholder approval shall be obtained in the manner and to the degree required under the Applicable Laws. 
 

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 OPENWAVE SYSTEMS INC. 
  
 1999 DIRECTORS’ STOCK OPTION PLAN 
  
 NOTICE OF STOCK OPTION GRANT

  
 «Optionee» 
 «OptioneeAddress1» 
 «OptioneeAddress2» 
  
 You have been granted an option to purchase Common Stock of
Openwave Systems Inc. (the “Company”) as follows: 
  
 
	 
	 Date of Grant
 	    	 «GrantDate»
 
	 
	 Vesting Commencement Date
 	    	 «VestingStartDate»
 
	 
	 Exercise Price per Share
 	    	 «ExercisePrice»
 
	 
	 Total Number of Shares Granted
 	    	 «SharesGranted»
 
	 
	 Total Exercise Price
 	    	 «TotalExercisePrice»
 
	 
	 Expiration Date
 	    	 «ExpirDate»
 
	 
	 Vesting Schedule
 	    	 This Option may be exercised, in whole or in part, in accordance with the following schedule:
«VestingSchedule»
 
	 
	 Termination Period
 	    	 This Option may be exercised for 90 days after termination of Optionee’s Continuous
Status as a Director, or such longer period as may be applicable upon death or Disability of Optionee as provided in the Plan, but in no event later than the Expiration Date as provided above.

 
  
  
  
  
  
  
  
 

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 By your signature and the signature of the Company’s representative below, you and the
Company agree that this option is granted under and governed by the terms and conditions of the Openwave System Inc. 1999 Directors’ Stock Option Plan and the Nonstatutory Stock Option Agreement, all of which are attached and made a part of
this document. 
  
 OPTIONEE:
                                        
                                    OPENWAVE SYSTEMS INC.

  

	 	By
	:                                      
                                        

  

	 	Tit
	le:                                      
                                    
 

 

	 	___
	__________________________________ 
 

	 	Sig
	nature 
 

  

	 	___
	__________________________________ 
 

	 	Pri
	nt Name 
 

  
 

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 OPENWAVE SYSTEMS INC. 
  
 1999 DIRECTORS’ STOCK OPTION PLAN 
  
 NONSTATUTORY STOCK OPTION AGREEMENT

  
 1.    Grant of Option.    The Board of Directors of the
Company hereby grants to the Optionee named in the Notice of Stock Option Grant attached as Part I of this Agreement (the “Optionee”), an option (the “Option”) to purchase a number of Shares, as set forth in the Notice of Stock
Option Grant, at the exercise price per share set forth in the Notice of Stock Option Grant (the “Exercise Price”), subject to the terms and conditions of the Openwave Systems Inc. 1999 Directors’ Stock Option Plan (the
“Plan”), which is incorporated herein by reference. (Capitalized terms not defined herein shall have the meanings ascribed to such terms in the Plan.) In the event of a conflict between the terms and conditions of the Plan and the terms
and conditions of this Nonstatutory Stock Option Agreement, the terms and conditions of the Plan shall prevail. 
  
 2.    Exercise of Option. 
  
 (a)    Right to
Exercise.    This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Stock Option Grant and the applicable provisions of the Plan and this Nonstatutory Stock Option
Agreement. In the event of Optionee’s death, disability or other termination of Optionee’s employment or consulting relationship, the exercisability of the Option is governed by the applicable provisions of the Plan and this Nonstatutory
Stock Option Agreement. 
  
 (b)    Method of
Exercise.    This Option is exercisable by delivery of an exercise notice, in the form attached as Exhibit A (the “Exercise Notice”), which shall state the election to exercise the Option, the number of
Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be signed
by the Optionee and shall be delivered in person or by certified mail to the Secretary of the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares. This Option shall be deemed to be
exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such aggregate Exercise Price. 
  
 No Shares shall be issued pursuant to the exercise of this Option unless such issuance and exercise complies with all relevant provisions of law and the requirements of any stock exchange or quotation service upon
which the Shares are then listed. Assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the Option is exercised with respect to such Exercised Shares. 

 
 3.    Method of Payment.    Payment of the aggregate Exercise Price shall be by
any of the following, or a combination thereof, at the election of the Optionee: 
 

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 (a)    cash; 
  
 (b)    check; 
  
 (c)    delivery of a properly executed exercise notice together with such other documentation as the Administrator and the broker, if applicable,
shall require to effect an exer­cise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price; or 
  
 (d)    surrender of other Shares which (i) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than
six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares. 
  
 4.    Non-Transferability of Option.    This Option may not be transferred in any manner otherwise than by will or by the laws of descent
or distribution or pursuant to a domestic relations order (as defined by the Code or the rules thereunder) and may be exercised during the lifetime of Optionee only by the Optionee or a transferee permitted by Section 10 of the Plan. The terms of
the Plan and this Nonstatutory Stock Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 
  
 5.    Term of Option.    This Option may be exercised only within the term set out in the Notice of Stock Option Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Nonstatutory Stock Option Agreement. 
  
 6.    Tax
Consequences.    Set forth below is a brief summary of certain federal tax consequences relating to this Option based on the United States federal income tax law in effect as of the date of grant. This summary does not
address specific state, local or foreign tax consequences THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT HIS OR HER OWN TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING
OF THE SHARES. 
  
 (a)    Exercising the Option.    Since this
Option does not qualify as an incentive stock option under Section 422 of the Code, the Optionee may incur regular federal and state income tax liability upon exercise. The Optionee will be treated as having received compensation income (taxable at
ordinary income tax rates) equal to the excess, if any, of the fair market value of the Exercised Shares on the date of exercise over their aggregate Exercise Price. 
  
 (b)    Disposition of Shares.    If the Optionee holds the Option Shares for more than one year, gain realized on
disposition of the Shares will be treated as long-term capital gain for federal income tax purposes. 
  
 The
parties signature on a Notice of Stock Option Grant that corresponds to this Stock Option Agreement, shall bind them to the terms of this Nonstatutory Stock Option Agreement. 
 

 14 

  
 EXHIBIT A 
  
 OPENWAVE SYSTEMS Inc. EXERCISE NOTICE 
  
 
	 Optionee
Name:                                       
                     
 	 	 Social Security #
:                                        
                
 
	  	 	  
	  	 	  
	 Home
Address:                                      
                       
 	 	 Daytime Phone
Number:                                       
       
 
	  	 	  
	  	 	  
	                          _______________________________
 	 	  

 
  
 
Option(s) Exercised: 
 
	 Plan
 
	    	 Grant Number
 
	    	 Grant Date
 
	    	 NQ** or ISO?
 
	  	 (1)             x
 Grant Price
 Per Share
 
	 	 (2)             =
 Number of Shares

 To be exercised
 
	    	 (3)
 Total Exercise
 Option Price
 

	  	    	  	    	  	    	  	  	 $
 	  
 	 	  	    	 $
 	  
 
	  	    	  	    	  	    	  	  	 $
 	  
 	 	  	    	 $
 	  
 
	  	    	  	    	  	    	  	  	 $
 	  
 	 	  	    	 $
 	  
 
	  	    	  	    	  	    	  	  	 $
 	  
 	 	  	    	 $
 	  
 
	  	    	  	    	  	    	  	  	  	  	 	 Subtotal
 	    	 $
 	  
 
	  	    	  	    	  	    	  	  	  	  	 	 ** Total NQ Taxes Due:
 	    	 $
 	  
 
	  	    	  	    	  	    	  	  	  
 	 Totals
 	 	  	    	 $
 	  
 

 
  
 
Payment and Issuance Instructions: 

 
 Attached is my check
#                          in the amount of
$                          to pay for the  exercise of my stock option as listed above. 

 
 Issue the shares as designated below: 
  ̈ My E*Trade
account                                       
         OR             ̈ Mail a
certificate to my home address 
  
 Account
#:                                       
                                      

 
  ̈ My Credit Suisse First Boston account 

 
 Account
#:                                       
                                      

 
 
Representations: 
 OFFICERS AND DIRECTORS ONLY

  
 I AM an officer and/or director of Openwave Systems Inc,.and I (initial for each response): 
  
                     have reviewed my
transactions relative to Section 16. 
                     may
be required to file a Form 144 because of this transaction.             
                     understand that I will need to file a Form 4 because of this transaction. 
  
 
 
 The undersigned holder of the stock option(s) described above irrevocably exercises such
option(s) as set forth and herewith makes payment therefore, all at the price and on the terms and conditions specified in the stock option agreement(s) pertaining to the option(s) exercised. 
 INSTRUCTIONS:    Mail this completed exercise form and check, made payable to: 
 Openwave Systems Inc. at 1400 Seaport Blvd., Redwood
City, CA 94063, Attn: Stock Administration 
  
 ____________________________________________                        _________________________________ 

Optionee
Signature                                       
                                        
             Date 
 

 15Prepared by R.R. Donnelley Financial -- 1999 Employee Stock Purchase Plan Effec 04/11/2002

 Exhibit 10.2 
 OPENWAVE SYSTEMS INC. 
  
 1999 EMPLOYEE STOCK PURCHASE PLAN[1] 
  
 (Amended and Restated effective as of April 11, 2002)[2] 
  
 The following constitute the provisions of the 1999
Employee Stock Purchase Plan of Openwave Systems Inc. 
  
 1.    Purpose.    The
purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase
Plan” under Section 423 of the Code and the Plan shall be interpreted and administered in accordance with this intent. In addition, the Plan authorizes the grant of options pursuant to sub-plans or special rules adopted by the Administrator
designed to achieve desired tax or other objectives in particular locations outside the United States. 
  
 2.    Definitions. 
  
 (a)    “Administrator” has the meaning set out in Section 15 of the Plan. 
  
 (b)    “Affiliate” means any Designated Subsidiary or any individual, corporation, limited liability company, partnership, association, joint-stock company, trust, any
unincorporated organization, or government or political subdivision thereof that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with the Company, whether now or hereafter existing
which has been designated as an “Affiliate” by the Administrator for purposes of the Plan. 
  
 (c)    “Applicable Law” means the legal requirements relating to the administration of an employee stock purchase plan under applicable U.S. state corporate laws, U.S. federal and applicable state
securities laws, the Code, any stock exchange rules or regulations and the applicable laws of any other country or jurisdiction where options are granted, as such laws, rules, regulations and requirements shall be in place from time to time.

  
 (d)    “Board” means the Board of Directors of the Company.

  
 (e)    “Code” means the U.S. Internal Revenue Code of 1986, as amended.

  
 (f)    “Common Stock” means the Common Stock of the Company.

  
 (g)    “Company” means Openwave Systems Inc., a Delaware corporation.

 

	1
	 
	Formerly known as the Phone.com 1999 Employee Stock Purchase Plan. 
 

	2
	 
	Previously amended effective as of November 17, 2000 and May 1, 2000; and previously amended and restated effective as of November 1, 2001 and November 30, 2001. 

 (h)    “Compensation” means all base straight time gross earnings, sales
commissions, incentive compensation, incentive payments, bonuses, shift premium, payments for overtime and other compensation. 
  
 (i)    “Continuous Status as an Employee” means the absence of any interruption or termination of service as an Employee. Continuous Status as an Employee shall not be considered
interrupted in the case of (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Board or a committee named by the Board, provided that such leave is for a period of not more than 90 days, unless reemployment upon the
expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company and its
Affiliates. 
  
 (j)    “Contributions” means all amounts credited to the
account of a participant pursuant to the Plan. 
  
 (k)    “Corporate
Transaction” means a sale of all or substantially all of the Company’s assets, or a merger, consolidation or other capital reorganization of the Company with or into another corporation, or any other transaction or series of related
transactions in which the Company’s stockholders immediately prior thereto own less than 50% of the voting stock of the Company (or its successor or parent) immediately thereafter. 
  
 (l)    “Designated Subsidiaries” means the Subsidiaries which have been designated by the Board from time to time in its sole
discretion as eligible to participate in the Plan; provided however that the Board shall only have the discretion to designate Subsidiaries if the issuance of options to such Subsidiary’s Employees pursuant to the Plan would not cause the
Company to incur adverse accounting charges. 
  
 (m)    “Employee” means any
person, including an Officer, who is customarily employed for at least twenty (20) hours per week and more than five (5) months in a calendar year by the Company or one of its Subsidiaries. Notwithstanding the foregoing, if expressly provided in a
sub-plan, “Employee” means any person, including an Officer, who is customarily employed for at least twenty (20) hours per week and more than five (5) months in a calendar year by the Company or one of its Affiliates, or as otherwise
required under Applicable Law. 
  
 (n)    “Exchange Act” means the U.S.
Securities Exchange Act of 1934, as amended. 
  
 (o)    “Offering Date”
means the first business day of each Offering Period of the Plan. 
  
 (p)    “Offering Period” means a period of twenty-four (24) months commencing on November 1 and May 1 of each year, except for the first Offering Period as set forth in Section 4(a). 

 2 

 (q)    “Officer” means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (r)    “Plan” means this 1999 Employee Stock Purchase Plan. 
  
 (s)    “Purchase Date” means the last day of each Purchase Period of the Plan. 
  
 (t)    “Purchase Period” means a period of six (6) months within an Offering Period. 
  
 (u)    “Purchase Price” means with respect to a Purchase Period an amount equal to 85% of the Fair Market Value (as defined in
Section 7(b) below) of a Share of Common Stock on the Offering Date or on the Purchase Date, whichever is lower; provided, however, that in the event (i) of any increase in the number of Shares available for issuance under the Plan as a result of a
stockholder-approved amendment to the Plan, and (ii) all or a portion of such additional Shares are to be issued with respect to one or more Offering Periods that are underway at the time of such increase (“Additional Shares”), and
(iii) the Fair Market Value of a Share of Common Stock on the date of such increase (the “Approval Date Fair Market Value”) is higher than the Fair Market Value on the Offering Date for any such Offering Period, then in such
instance the Purchase Price with respect to Additional Shares shall be 85% of the Approval Date Fair Market Value or the Fair Market Value of a Share of Common Stock on the Purchase Date, whichever is lower. 
  
 (v)    “Securities Act” means the U.S. Securities Act of 1933, as amended. 

 
 (w)    “Share” means a share of Common Stock, as adjusted in accordance with Section
19 of the Plan. 
  
 (x)    “Subsidiary” means a corporation, domestic or
foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 
  
 3.    Eligibility. 
  
 (a)    Any person who is an Employee of the Company or a Designated Subsidiary as of the Offering Date of a given Offering Period shall be eligible
to participate in such Offering Period under the Plan, subject to the requirements of Section 5(a) and any applicable limitations imposed by Section 423(b) of the Code; provided however that eligible Employees may not participate in more than one
Offering Period at a time. Notwithstanding the foregoing, if expressly provided in a sub-plan, any person who is an Employee (as defined in such sub-plan) as of the Offering Date of a given Offering Period (and who is not eligible to participate in
the Plan in accordance with the preceding sentence) shall be eligible to participate in such Offering Period, subject to the requirements of Section 5(a) and if not otherwise provided under the terms of such sub-plan, any applicable limitations
imposed by Section 423(b) of the 
 

 3 

 Code; provided however that such eligible Employees may not participate in more than one Offering Period at a time. 
  
 (b)    Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under
the Plan (i) if, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to
purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any subsidiary of the Company, or (ii) if such option would permit his or her rights to purchase stock under
all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) of the Fair Market Value (as defined in Section 7(b) below) of such
stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time. 
  
 4.    Offering Periods and Purchase Periods. 
  
 (a)    Offering Periods.    The Plan shall be generally implemented by a series of Offering Periods of twenty-four (24) months’ duration, with new Offering Periods (other than the first
Offering Period) commencing on or about November 1 and May 1 of each year (or at such other time or times as may be determined by the Board of Directors). The Plan shall continue until terminated in accordance with Section 19 hereof. The Board of
Directors of the Company shall have the power to change the duration and/or the frequency of Offering Periods with respect to future offerings without stockholder approval if such change is announced at least five (5) days prior to the scheduled
beginning of the first Offering Period to be affected. 
  
 (b)    Purchase
Periods.    Each Offering Period shall generally consist of four (4) consecutive purchase periods of six (6) months’ duration. The last day of each Purchase Period shall be the “Purchase Date” for such
Purchase Period. A Purchase Period commencing on November 1 shall end on the next April 30. A Purchase Period commencing on May 1 shall end on the next October 31. The Board of Directors of the Company shall have the power to change the duration
and/or frequency of Purchase Periods with respect to future purchases without stockholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Purchase Period to be affected. 

 
 5.    Participation. 
  
 (a)    An eligible Employee may become a participant in the Plan by completing a subscription agreement on the form provided by the Company and
filing it with the Company’s payroll office prior to the applicable Offering Date, unless a later time for filing the subscription agreement is set by the Board for all eligible Employees with respect to a given Offering Period. The
subscription agreement shall set forth the percentage of the participant’s Compensation (subject to Section 6(a) below) to be paid as Contributions pursuant to the Plan. 
  
 (b)    Payroll deductions shall commence on the first payroll following the Offering Date and shall end on the last payroll paid on or prior to the
last Purchase Period of the 
 

 4 

 Offering Period to which the subscription agreement is applicable, unless sooner terminated by the participant as provided in Section
10. 
  
 (c)    Notwithstanding any other provisions of the Plan to the contrary, in locations
where local law prohibits payroll deductions, an eligible Employee may elect to participate through contributions to his or her account under the Plan in a form acceptable to the Administrator. In such event, any such Employees shall be deemed to be
participating in a sub-plan, unless the Administrator otherwise expressly provides that such Employees shall be treated as participating in the Plan. 
  
 6.    Method of Payment of Contributions. 
  
 (a)    A participant shall elect to have payroll deductions made on each payday during the Offering Period in an amount not less than one percent (1%) and not more than twenty percent (20%) (or such other percentage as
the Board may establish from time to time before an Offering Date) of such participant’s Compensation on each payday during the Offering Period. All payroll deductions made by a participant shall be credited to his or her account under the
Plan. A participant may not make any additional payments into such account unless payroll deductions are prohibited under applicable law, in which case the provisions of Section 5(c) shall apply. 
  

(b)    A participant may discontinue his or her participation in the Plan as provided in Section 10, or, on one occasion only during each
Purchase Period may either increase or decrease the rate of his or her Contributions with respect to the Purchase Period by completing and filing with the Company a new subscription agreement authorizing a change in the payroll deduction rate. The
change in rate shall be effective as of the beginning of the next calendar month following the date of filing of the new subscription agreement, if the agreement is filed at least ten (10) business days prior to such date and, if not, as of the
beginning of the next succeeding calendar month. 
  
 (c)    Notwithstanding the foregoing, to
the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) herein, a participant’s payroll deductions may be decreased during any Purchase Period scheduled to end during the current calendar year to 0%. Payroll
deductions shall re-commence at the rate provided in such participant’s subscription agreement at the beginning of the first Purchase Period which is scheduled to end in the following calendar year, unless terminated by the participant as
provided in Section 10. 
  
 7.    Grant of Option. 
  

(a)    On the Offering Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to
purchase on each Purchase Date the number of Shares of the Company’s Common Stock determined by dividing such Employee’s Contributions accumulated prior to such Purchase Date and retained in the participant’s account as of the
Purchase Date by the applicable Purchase Price; provided however that the maximum number of Shares an Employee may purchase during each Purchase Period shall be 5,000 Shares (after giving effect to the 2-1 stock split in November 1999 and subject to
any further adjustment 
 

 5 

 pursuant to Section 19 below), and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b)
and 13. 
  
 (b)    The fair market value of the Company’s Common Stock on a given date
(the “Fair Market Value”) shall be determined by the Board in its discretion based on the closing sales price of the Common Stock for such date (or, in the event that the Common Stock is not traded on such date, on the immediately
preceding trading date), as reported by the National Association of Securities Dealers Automated Quotation (Nasdaq) National Market or, if such price is not reported, the mean of the bid and asked prices per share of the Common Stock as reported by
Nasdaq or, in the event the Common Stock is listed on a stock exchange, the Fair Market Value per share shall be the closing sales price on such exchange on such date (or, in the event that the Common Stock is not traded on such date, on the
immediately preceding trading date), as reported in The Wall Street Journal. For purposes of the Offering Date under the first Offering Period under the Plan, the Fair Market Value of a share of the Common Stock of the Company shall be the
Price to Public as set forth in the final prospectus filed with the Securities and Exchange Commission pursuant to Rule 424 under the Securities Act. 
  
 8.    Exercise of Option.    Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of Shares will be exercised
automatically on each Purchase Date of an Offering Period, and the maximum number of full Shares subject to the option will be purchased at the applicable Purchase Price with the accumulated Contributions in his or her account. No fractional Shares
shall be issued. The Shares purchased upon exercise of an option hereunder shall be deemed to be transferred to the participant on the Purchase Date. During his or her lifetime, a participant’s option to purchase Shares hereunder is exercisable
only by him or her. 
  
 9.    Delivery.    As promptly as practicable after each
Purchase Date of each Offering Period, the number of Shares purchased by each participant shall be deposited by the Company into a designated brokerage account established in the participant’s name. Any payroll deductions or Contributions
accumulated in a participant’s account which are not sufficient to purchase a full Share shall be retained in the participant’s account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant
as provided in Section 10 below. Any other amounts left over in a participant’s account after a Purchase Date shall be returned to the participant. 
  
 10.    Voluntary Withdrawal; Termination of Employment. 
  
 (a)    A participant may withdraw all but not less than all the Contributions credited to his or her account under the Plan at any time prior to each Purchase Date by giving written notice to the Company. All of the
participant’s Contributions credited to his or her account will be paid to him or her promptly after receipt of his or her notice of withdrawal and his or her option for the current period will be automatically terminated, and no further
Contributions for the purchase of Shares will be made during the Offering Period. 
  
 (b)    Upon termination of the participant’s Continuous Status as an Employee prior to the Purchase Date of an Offering Period for any reason, including retirement or death, the 
 

 6 

 Contributions credited to his or her account will be returned to him or her or, in the case of his or her death, to the person or
persons entitled thereto under Section 14, and his or her option will be automatically terminated. 
  
 (c)    In the event an Employee fails to remain in Continuous Status as an Employee of the Company for at least twenty (20) hours per week during the Offering Period in which the employee is a participant, he or she will
be deemed to have elected to withdraw from the Plan and the Contributions credited to his or her account will be returned to him or her and his or her option terminated unless otherwise required under Applicable Law, in which case any Employees
affected by such Applicable Law shall be deemed to be participating in a sub-plan, unless the Administrator otherwise expressly provides that such Employees shall be treated as participating in the Plan. 
  
 (d)    A participant’s withdrawal from an offering will not have any effect upon his or her eligibility to
participate in a succeeding offering or in any similar plan which may hereafter be adopted by the Company. 
  
 11.    Automatic Withdrawal.    If the Fair Market Value of the Shares on any Purchase Date of an Offering Period is less than the Fair Market Value of the Shares on the Offering Date for such
Offering Period, then every participant shall automatically (i) be withdrawn from such Offering Period at the close of such Purchase Date and after the acquisition of Shares for such Purchase Period, and (ii) be enrolled in the Offering Period
commencing on the first business day subsequent to such Purchase Period. 
  
 12.    Interest.    No interest shall accrue on the Contributions of a participant in the Plan unless otherwise required under Applicable Law, in which case any Employees affected by such
Applicable Law shall be deemed to be participating in a sub-plan, unless the Administrator otherwise expressly provides that such Employees shall be treated as participating in the Plan. 
  
 13.    Stock. 
  
 (a)    Subject to adjustment as provided in Section 19, the maximum number of Shares which shall be made available for sale under the Plan shall be (i) 6,552,3393 plus (ii) the automatic annual increase (the “Automatic Annual Increase”)4 on the first day of each of the Company’s fiscal years equal to the following: 
  
 (i)    in fiscal years 2002, 2003 and 2004 an amount equal to the lesser of (i) 1,805,250 Shares, or (ii) one percent (1%) of the Shares outstanding
on the last day of the immediately preceding fiscal year; and (ii) in fiscal years 2005, 2006, 2007 and 2008 an amount equal to the lesser of (i) 805,250 Shares or (ii) one percent (1%) of the Shares outstanding on the last day of the immediately
preceding fiscal year; and 
 

	3
	 
	This number takes into account the Company’s 2 for 1 stock split of November 1999 and Shares that became available as a result of the merger of the Software.com, Inc. 1999
Employee Stock Purchase Plan into this Plan after conversion of the Shares to Shares of the Company. 
 

	4
	 
	The Automatic Annual Increase numbers set forth in this Plan take into account the effect of the 2 for 1 stock split in November 1999 and the merger of the Software.com, Inc.
1999 Employee Stock Purchase plan into this Plan. 
 

 

 7 

  
 (ii)    in fiscal years 2005, 2006, 2007 and 2008 an
amount equal to the lesser of (i) 805,250 Shares or (ii) one percent (1%) of the Shares outstanding on the last day of the immediately preceding fiscal year. 
  
 If the Board determines that, on a given Purchase Date, the number of shares with respect to which options are to be exercised may exceed (i) the number of shares of
Common Stock that were available for sale under the Plan on the Offering Date of the applicable Offering Period, or (ii) the number of shares available for sale under the Plan on such Purchase Date, the Board may in its sole discretion provide (x)
that the Company shall make a pro rata allocation of the Shares of Common Stock available for purchase on such Offering Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase Common Stock on such Purchase Date, and continue all Offering Periods then in effect, or (y) that the Company shall make a pro rata allocation of the shares available
for purchase on such Offering Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on
such Purchase Date, and terminate any or all Offering Periods then in effect pursuant to Section 20 below. The Company may make pro rata allocation of the Shares available on the Offering Date of any applicable Offering Period pursuant to the
preceding sentence, notwithstanding any authorization of additional Shares for issuance under the Plan by the Company’s stockholders subsequent to such Offering Date. 
  
 (b)    The participant shall have no interest or voting right in Shares covered by his or her option until such option has been exercised.

  
 (c)    Shares to be delivered to a participant under the Plan will be registered in the
name of the participant or in the name of the participant and his or her spouse. 
  
 14.    Administration.    The Board or a committee named by the Board (in either case, the “Admnistrator”) shall supervise and administer the Plan and shall have full power to adopt,
amend and rescind any rules deemed desirable and appropriate for the administration of the Plan and not inconsistent with the Plan, to construe and interpret the Plan, and to make all other determinations necessary or advisable for the
administration of the Plan. The Administrator may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures. Without limiting the generality of the
foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding handling of payroll deductions, payment of interest, conversion of local currency, payroll tax, withholding procedures and handling of stock certificates
which vary with local requirements; however, if such varying provisions are not in accordance with the provisions of Section 423(b) of the Code, including but not limited to the requirement of Section 423(b)(5) of the Code that all options granted
under the Plan shall have the same rights and privileges unless otherwise provided under the Code and the regulations promulgated thereunder, then the Employees affected by such varying provisions shall be deemed to be participating under a sub-plan
and not the Plan. The Administrator may also adopt sub-plans applicable to particular 
 

 8 

 Designated Subsidiaries, Affiliates or locations, which sub-plans may be designed to be outside the scope of Code Section 423. The rules of such sub-plans may
take precedence over other provisions of this Plan, with the exception of Paragraph 13(a) above, but unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern the operation of such sub-plan. 

 
 15.    Designation of Beneficiary. 
  
 (a)    A participant may file a written designation of a beneficiary who is to receive any Shares and cash, if any, from the participant’s
account under the Plan in the event of such participant’s death subsequent to the end of a Purchase Period but prior to delivery to him or her of such Shares and cash. In addition, a participant may file a written designation of a beneficiary
who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to the Purchase Date of an Offering Period. If a participant is married and the designated beneficiary is not the
spouse, spousal consent shall be required for such designation to be effective. 
  
 (b)    Such designation of beneficiary may be changed by the participant (and his or her spouse, if any) at any time by written notice. In the event of the death of a participant and in the absence of a beneficiary
validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such Shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or
relative is known to the Company, then to such other person as the Company may designate. 
  
 16.    Transferability.    Neither Contributions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive Shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 15) by the participant. Any such attempt at assignment, transfer, pledge or other disposition
shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 10. 
  
 17.    Use of Funds.    All Contributions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to
segregate such Contributions unless otherwise required under Applicable Law. 
  
 18.    Reports.    Individual accounts will be maintained for each participant in the Plan. Statements of account will be given to participating Employees at least annually, which statements
will set forth the amounts of Contributions, the per Share Purchase Price, the number of Shares purchased and the remaining cash balance, if any. 
 

 9 

  
 19.    Adjustments Upon Changes in Capitalization; Corporate
Transactions. 
  
 (a)    Adjustment.    Subject to any
required action by the stockholders of the Company, the number of Shares covered by each option under the Plan which has not yet been exercised and the number of Shares which have been authorized for issuance under the Plan but have not yet been
placed under option (collectively, the “Reserves”), as well as the maximum number of shares of Common Stock which may be purchased by a participant in a Purchase Period, the number of shares of Common Stock set forth in Section 13(a)(i)
above, and the price per Share of Common Stock covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a stock split,
reverse stock split, stock dividend, combination or reclassification of the Common Stock (including any such change in the number of Shares of Common Stock effected in connection with a change in domicile of the Company), or any other increase or
decrease in the number of Shares effected without receipt of consideration by the Company; provided however that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an option. 
  
 (b)    Corporate Transactions.    In the event of a dissolution or liquidation of the Company, any Purchase Period and
Offering Period then in progress will terminate immediately prior to the consummation of such action, unless otherwise provided by the Board. In the event of a Corporate Transaction, each option outstanding under the Plan shall be assumed or an
equivalent option shall be substituted by the successor corporation or a parent or subsidiary of such successor corporation. In the event that the successor corporation refuses to assume or substitute for outstanding options, each Purchase Period
and Offering Period then in progress shall be shortened and a new Purchase Date shall be set (the “New Purchase Date”), as of which date any Purchase Period and Offering Period then in progress will terminate. The New Purchase Date shall
be on or before the date of consummation of the transaction and the Board shall notify each participant in writing, at least ten (10) days prior to the New Purchase Date, that the Purchase Date for his or her option has been changed to the New
Purchase Date and that his or her option will be exercised automatically on the New Purchase Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in Section 10. For purposes of this Section 19, an option
granted under the Plan shall be deemed to be assumed, without limitation, if, at the time of issuance of the stock or other consideration upon a Corporate Transaction, each holder of an option under the Plan would be entitled to receive upon
exercise of the option the same number and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior
to the transaction, the holder of the number of Shares of Common Stock covered by the option at such time (after giving effect to any adjustments in the number of Shares covered by the option as provided for in this Section 19); provided however
that if the consideration received in the transaction is not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Board may, with the consent of the successor corporation, provide for the
consideration to be received upon exercise 
 

 10 

 of the option to be solely common stock of the successor corporation or its parent equal in Fair Market Value to the per Share
consideration received by holders of Common Stock in the transaction. 
  
 The Board may, if it so determines in
the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per Share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of Shares of its outstanding Common Stock, and in the event of the Company’s being consolidated with or merged into any other corporation. 
  
 20.    Amendment or Termination. 
  
 (a)    The Board may at any time and for any reason terminate or amend the Plan. Except as provided in Section 19, no such termination of the Plan
may affect options previously granted, provided that the Plan or an Offering Period may be terminated by the Board on a Purchase Date or by the Board’s setting a new Purchase Date with respect to an Offering Period and Purchase Period then in
progress if the Board determines that termination of the Plan and/or the Offering Period is in the best interests of the Company and the stockholders or if continuation of the Plan and/or the Offering Period would cause the Company to incur adverse
accounting charges as a result of a change after the effective date of the Plan in the generally accepted accounting rules applicable to the Plan. Except as provided in Section 19 and in this Section 20, no amendment to the Plan shall make any
change in any option previously granted which adversely affects the rights of any participant. In addition, to the extent necessary to comply with Rule 16b–3 under the Exchange Act, or under Section 423 of the Code (or any successor rule or
provision or any applicable law or regulation), the Company shall obtain stockholder approval in such a manner and to such a degree as so required. 
  
 (b)    Without stockholder consent and without regard to whether any participant rights may be considered to have been adversely affected, the Board
(or its committee) shall be entitled to change the Offering Periods and Purchase Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s
Compensation, and establish such other limitations or procedures as the Board (or its committee) determines in its sole discretion advisable which are consistent with the Plan. 
  
 21.    Notices.    All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed
to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 
 

 11 

  
 22.    Conditions Upon Issuance of
Shares.    Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or
foreign, including, without limitation, the Securities Act, the Exchange Act, the rules and regulations promulgated thereunder, applicable state securities laws 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. 
  
 As a condition to the
exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise 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 is required by any of the aforementioned applicable provisions of law. 
  
 23.    Term of Plan; Effective Date.    The Plan became effective in June 1999. It shall continue in effect for a term of twenty (20) years
unless sooner terminated under Section 20. 
  
 24.    Additional Restrictions of Rule
16b-3.    The terms and conditions of options granted hereunder to, and the purchase of Shares by, persons subject to Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3. This Plan shall
be deemed to contain, and such options shall contain, and the Shares issued upon exercise thereof shall be subject to, such additional conditions and restrictions as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16
of the Exchange Act with respect to Plan transactions. 
 

 12 

  
 OPENWAVE SYSTEMS INC. 
  
 1999 EMPLOYEE STOCK PURCHASE PLAN 
  
 SUBSCRIPTION AGREEMENT 

 
 New Election           
 Change
of Election           
  
 1.    I,                , hereby elect to participate in the Openwave Systems Inc. 1999 Employee Stock Purchase Plan, as amended, (the
“Plan”) for the Offering
Period                ,    to                ,   
 , and subscribe to purchase shares of the Company’s Common Stock in accordance with this Subscription Agreement and the Plan. 
  
 2. I elect to have Contributions in the amount of    % of my Compensation, as those terms are defined in the Plan, applied to this purchase. I understand that this amount must not be less than 1% and not more than 20% of
my Compensation during the Offering Period. (Please note that no fractional percentages are permitted). 
  
 3. I hereby authorize
payroll deductions from each paycheck during the Offering Period at the rate stated in Item 2 of this Subscription Agreement. I understand that all payroll deductions made by me shall be credited to my account under the Plan and that I may not make
any additional payments into such account. I understand that all payments made by me shall be accumulated for the purchase of shares of Common Stock at the applicable purchase price determined in accordance with the Plan. I further understand that,
except as otherwise set forth in the Plan, shares will be purchased for me automatically on the Purchase Date of each Offering Period unless I otherwise withdraw from the Plan by giving written notice to the Company for such purpose. 

 
 4. I understand that I may discontinue at any time prior to the Purchase Date my participation in the Plan as provided in Section 10 of the
Plan. I also understand that I can increase or decrease the rate of my Contributions on one occasion only with respect to either an increase or a decrease during any Purchase Period by completing and filing a new Subscription Agreement with such
increase or decrease taking effect as of the beginning of the calendar month following the date of filing of the new Subscription Agreement, if filed at least ten (10) business days prior to the beginning of such month. Further, I may change the
rate of deductions for future Offering Periods by filing a new Subscription Agreement, and any such change will be effective as of the beginning of the next Offering Period. In addition, I acknowledge that, unless I discontinue my participation in
the Plan as provided in Section 10 of the Plan, my election will continue to be effective for each successive Offering Period. 
  
 5. I have received a copy of the Company’s most recent description of the Plan and a copy of the complete “Openwave Systems Inc. 1999 Employee Stock Purchase Plan.” I understand that my participation in the Plan is in all
respects subject to the terms of the Plan. 
 

 13 

  
 6.    Shares purchased for me under the Plan should be issued in the
name(s) of (name of employee or employee and spouse only): 
  

	 	                                      
                       
	 
 

  

	 	                                      
                       
	 
 

  
 7.    In
the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and shares due to me under the Plan: 
  
 NAME:    (Please print) 

	 	                                      
                       
	 
 

	 	(Fi
	rst)            (Middle)            (Last) 

                                       
      
 (Relationship) 

	 	                                      
                       
	 
 

	 	(A
	ddress) 
 

  

	 	                                      
                       
	 
 

  
 8.    I
understand that if I dispose of any shares received by me pursuant to the Plan within 2 years after the Offering Date (the first day of the Offering Period during which I purchased such shares) or within 1 year after the Purchase Date, I will be
treated for federal income tax purposes as having received ordinary compensation income at the time of such disposition in an amount equal to the excess of the fair market value of the shares on the Purchase Date over the price which I paid for the
shares, regardless of whether I disposed of the shares at a price less than their fair market value at the Purchase Date. The remainder of the gain or loss, if any, recognized on such disposition will be treated as capital gain or loss.

  
 I hereby agree to notify the Company in writing within 30 days after the date of any such disposition, and I will make
adequate provision for federal, state or other tax withholding obligations, if any, which arise upon the disposition of the Common Stock. The Company may, but will not be obligated to, withhold from my compensation the amount necessary to meet
any applicable withholding obligation including any withholding necessary to make available to the Company any tax deductions or benefits attributable to the sale or early disposition of Common Stock by me. 
  
 9.    If I dispose of such shares at any time after expiration of the 2-year and 1-year holding periods, I understand that I will be
treated for federal income tax purposes as having received compensation income only to the extent of an amount equal to the lesser of (1) the excess of the fair market value of the shares at the time of such disposition over the purchase price which
I paid for the shares under the option, or (2) 15% of the fair market value of the shares on the Offering Date. The remainder of the gain or loss, if any, recognized on such disposition will be treated as capital gain or loss. 

 
 I understand that this tax summary is only a summary and is subject to change. I further understand that I should consult a tax
advisor concerning the tax implications of the purchase and sale of stock under the Plan. 
 

 14 

  
 10.    I hereby agree to be bound by the terms of the Plan. The
effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan. 
  
 SIGNATURE:
                                        
                                         

  
 SOCIAL SECURITY #:
                                        
                           
  
 DATE:
                                        
                                        
               
  
  
 SPOUSE’S SIGNATURE
(necessary  if beneficiary is not spouse): 
  
  
                                       
                                        
                        
 (Signature) 
  
  
                                       
                                        
                        
 (Print name) 
 

 15 

 OPENWAVE SYSTEMS INC. 
  
 1999 EMPLOYEE STOCK PURCHASE PLAN 
  
 NOTICE OF WITHDRAWAL 
  
 I,                , hereby elect to withdraw my participation in the Openwave Systems Inc. 1999 Employee
Stock Purchase Plan (the “Plan”) for the Offering Period that began on                ,    . This withdrawal covers all Contributions
credited to my account for the current period and is effective on the date designated below. 
  
 I understand that all
Contributions credited to my account will be paid to me as promptly as practicable upon receipt by the Company of this Notice of Withdrawal and that my option for the current period will automatically terminate, and that no further Contributions for
the purchase of shares can be made by me during the Offering Period. 
  
 The undersigned further understands and agrees that he or
she shall be eligible to participate in succeeding offering periods only by delivering to the Company a new Subscription Agreement. 
  
 Dated:                                     
                 

	 	                                      
          
	 
 

	 	Sig
	nature of Employee 
 

  
  

	 	                                      
          
	 
 

	 	So
	cial Security Number 
 

 

 16

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