Document:

exv10w2

 

Exhibit 10.2

SUCCESSFACTORS, INC.

2001 STOCK OPTION PLAN

As Adopted on June 5, 2001

and as amended on June 26, 2001, April 29, 2003, May 5, 2004,

November 23, 2004, February 10, 2005, May 5, 2006,

May 17, 2006 and April 19, 2007

     1. PURPOSE. The purpose of this Plan is to provide incentives to attract, retain and
motivate eligible persons whose present and potential contributions are important to the success of
SuccessFactors, Inc. (the “Company”), its Parent and Subsidiaries, by offering them an opportunity
to participate in the Company’s future performance through awards of Options. Capitalized terms
not defined in the text are defined in Section 21. This Plan is intended to be a written
compensatory benefit plan within the meaning of Rule 701 promulgated under the Securities Act.

     2. SHARES SUBJECT TO THE PLAN.

          2.1 Number of Shares Available. Subject to Sections 2.2 and 16, the total number of
Shares reserved and available for grant and issuance pursuant to this Plan will be 16,389,628
Shares or such lesser number of Shares as permitted under Section 260.140.45 of Title 10 of the
California Code of Regulations. Subject to Sections 2.2, 5.10 and 16, Shares subject to Options
previously granted will again be available for grant and issuance in connection with future Options
under this Plan to the extent such Shares: (i) cease to be subject to issuance upon exercise of an
Option, other than due to the exercise of such Option; or (ii) are issued upon exercise of an
Option but are forfeited or repurchased by the Company at the original exercise price. At all
times the Company will reserve and keep available a sufficient number of Shares as will be required
to satisfy the requirements of all Options granted and outstanding under this Plan.

          2.2 Adjustment of Shares. In the event that the number of outstanding shares of the
Company’s Common Stock is changed by a stock dividend, recapitalization, stock split, reverse stock
split, subdivision, combination, reclassification or similar change in the capital structure of the
Company without consideration, then (i) the number of Shares reserved for issuance under this Plan
and (ii) the Exercise Prices of and number of Shares subject to outstanding Options will be
proportionately adjusted, subject to any required action by the Board or the stockholders of the
Company and compliance with applicable securities laws; provided, however, that fractions of a
Share will not be issued but will either be paid in cash at the Fair Market Value of such fraction
of a Share or will be rounded down to the nearest whole Share, as determined by the Committee; and
provided, further, that the Exercise Price of any Option may not be decreased to below the par
value of the Shares.

     3. ELIGIBILITY. ISOs (as defined in Section 5 hereof) may be granted only to
employees (including officers and directors who are also employees) of the Company or of a Parent
or Subsidiary of the Company. NQSO’s (as defined in Section 5 hereof) may be granted to employees,
officers, directors and consultants of the Company or any Parent or Subsidiary of the Company; provided such consultants render bona fide services not in connection with the

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offer and sale of securities in a capital-raising transaction. A person may be granted more than
one Option under this Plan.

     4. ADMINISTRATION.

          4.1 Committee Authority. This Plan will be administered by the Committee or the Board
if no Committee is created by the Board. Subject to the general purposes, terms and conditions of
this Plan, and to the direction of the Board, the Committee will have full power to implement and
carry out this Plan. Without limitation, the Committee will have the authority to:

	 	(a)	 	construe and interpret this Plan, any Stock
Option Agreement (as defined in Section 5 hereof) and any other
agreement or document executed pursuant to this Plan;
	 
	 	(b)	 	prescribe, amend and rescind rules and
regulations relating to this Plan;
	 
	 	(c)	 	approve persons to receive Options;
	 
	 	(d)	 	determine the form and terms of Options;
	 
	 	(e)	 	determine the number of Shares or other
consideration subject to Options;
	 
	 	(f)	 	determine whether Options will be granted
singly, in combination with, in tandem with, in replacement of, or as
alternatives to, other Options under this Plan or options under any
other incentive or compensation plan of the Company or any Parent or
Subsidiary of the Company;
	 
	 	(g)	 	grant waivers of any conditions of this Plan or
any Option;
	 
	 	(h)	 	determine the terms of vesting and
exercisability of Options;
	 
	 	(i)	 	correct any defect, supply any omission, or
reconcile any inconsistency in this Plan, any Option, any Stock Option
Agreement or any Exercise Agreement (as defined in Section 5 hereof);
	 
	 	(j)	 	determine whether an Option has been earned;
	 
	 	(k)	 	make all other determinations necessary or
advisable for the administration of this Plan; and
	 
	 	(l)	 	extend the vesting period beyond a
Participant’s Termination Date.

          4.2 Committee Discretion. Unless in contravention of any express terms of this Plan
or Option, any determination made by the Committee with respect to any Option will be made in its
sole discretion either (i) at the time of grant of the Option, or (ii) subject to Section 5.9
hereof, at any later time. Any such determination will be final and binding on the Company
and on all persons having an interest in any Option under this Plan. The Committee

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may
delegate to one or more officers of the Company the authority to grant Options under this Plan,
provided such officer or officers are members of the Board.

     5. OPTIONS. The Committee may grant Options to eligible persons described in Section
3 hereof and will determine whether such Options will be Incentive Stock Options within the meaning
of the Code (the “ISOs”) or Nonqualified Stock Options (the “NQSOs”), the number of Shares subject
to the Option, the Exercise Price of the Option, the period during which the Option may be
exercised, and all other terms and conditions of the Option, subject to the following:

          5.1 Form of Option Grant. Each Option granted under this Plan will be evidenced by an
Agreement which will expressly identify the Option as an ISO or an NQSO (the “Stock Option
Agreement”), and will be in such form and contain such provisions (which need not be the same for
each Participant) as the Committee may from time to time approve, and which will comply with and be
subject to the terms and conditions of this Plan.

          5.2 Date of Grant. The date of grant of an Option will be the date on which the
Committee makes the determination to grant such Option, unless a later date is otherwise specified
by the Committee. The Stock Option Agreement and a copy of this Plan will be delivered to the
Participant within a reasonable time after the granting of the Option.

          5.3 Exercise Period. Options may be exercisable immediately but subject to repurchase
pursuant to Section 10 hereof or may be exercisable within the times or upon the events determined
by the Committee as set forth in the Stock Option Agreement governing such Option; provided,
however, that no Option will be exercisable after the expiration of ten (10) years from the date
the Option is granted; and provided further that no ISO granted to a person who directly or by
attribution owns more than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or of any Parent or Subsidiary of the Company (the “Ten Percent Stockholder”)
will be exercisable after the expiration of five (5) years from the date the ISO is granted. The
Committee also may provide for Options to become exercisable at one time or from time to time,
periodically or otherwise, in such number of Shares or percentage of Shares as the Committee
determines. Subject to earlier termination of the Option as provided herein, each Participant who
is not an officer, director or consultant of the Company or of a Parent or Subsidiary of the
Company shall have the right to exercise an Option granted hereunder at the rate of no less than
twenty percent (20%) per year over five (5) years from the date such Option is granted;
provided, however, that the rate of exercise may be above or below such limits if
authorized by the California Code of Regulations and if it is in compliance with Rule 701
promulgated under the Securities Act.

          5.4 Exercise Price. The Exercise Price of an Option will be determined by the
Committee when the Option is granted and may not be less than eighty-five percent (85%) of the Fair
Market Value of the Shares on the date of grant; provided that (i) the Exercise Price of an ISO
will not be less than one hundred percent (100%) of the Fair Market Value of the Shares on the date
of grant and (ii) the Exercise Price of any Option granted to a Ten Percent Stockholder will not be
less than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of
grant; provided, however, that the Exercise Price of a NQSO may be below such
limits if authorized by the California Code of Regulations and if it is in compliance with Rule 701
promulgated under the Securities Act. Payment for the Shares purchased must be made in accordance
with Section 6 hereof.

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          5.5 Method of Exercise. Options may be exercised only by delivery to the Company of a
written stock option exercise agreement (the “Exercise Agreement”) in a form approved by the
Committee (which need not be the same for each Participant). The Exercise Agreement will state (i)
the number of Shares being purchased, (ii) the restrictions imposed on the Shares purchased under
such Exercise Agreement, if any, and (iii) such representations and agreements regarding
Participant’s investment intent and access to information and other matters, if any, as may be
required or desirable by the Company to comply with applicable securities laws. Participant shall
execute and deliver to the Company the Exercise Agreement together with payment in full of the
Exercise Price, and any applicable taxes, for the number of Shares being purchased.

          5.6 Termination. Subject to earlier termination pursuant to Sections 16 or 17 hereof
and notwithstanding the exercise periods set forth in the Stock Option Agreement, exercise of an
Option will always be subject to the following:

	 	(a)	 	If the Participant is Terminated for any reason
other than death, Disability or for Cause, then the Participant may
exercise such Participant’s Options only to the extent that such
Options are exercisable upon the Termination Date or as otherwise
determined by the Committee. Such Options must be exercised by the
Participant, if at all, as to all or some of the Vested Shares
calculated as of the Termination Date or such other date determined by
the Committee, within three (3) months after the Termination Date (or
within such shorter time period, not less than thirty (30) days, or
within such longer time period, not exceeding five (5) years after the
Termination Date as may be determined by the Committee, with any
exercise beyond three (3) months after the Termination Date deemed to
be an NQSO) but in any event, no later than the expiration date of the
Options.
	 
	 	(b)	 	If the Participant is Terminated because of
Participant’s death or Disability (or the Participant dies within three
(3) months after a Participant’s Termination other than for Cause),
then Participant’s Options may be exercised, only to the extent that
such Options are exercisable by Participant on the Termination Date or
as otherwise determined by the Committee. Such Options must be
exercised by Participant (or Participant’s legal representative or
authorized assignee), if at all, as to all or some of the Vested Shares
calculated as of the Termination Date or such other date determined by
the Committee, within twelve (12) months after the Termination Date (or
within such shorter time period, not less than six (6) months, or
within such longer time period not exceeding five (5) years after the
Termination Date as may be determined by the Committee, with any
exercise beyond (i) three (3) months after the Termination Date when
the Termination is for any reason other than the Participant’s death or
disability, within the meaning of Section 22(e)(3) of the Code, or (ii)
twelve (12) months after the Termination Date when the Termination is
for Participant’s disability, within the meaning of Section 22(e)(3) of
the Code,

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	 	 	 	deemed to be an NQSO) but in any event no later than the expiration
date of the Options.

	 	(c)	 	If the Participant is terminated for Cause,
then Participant’s Options shall expire on such Participant’s
Termination Date, or at such later time and on such conditions as are
determined by the Committee.

          5.7 Limitations on Exercise. The Committee may specify a reasonable minimum number of
Shares that may be purchased on any exercise of an Option, provided that such minimum number will
not prevent Participant from exercising the Option for the full number of Shares for which it is
then exercisable.

          5.8 Limitations on ISOs. The aggregate Fair Market Value (determined as of the date
of grant) of Shares with respect to which ISOs are exercisable for the first time by a Participant
during any calendar year (under this Plan or under any other incentive stock option plan of the
Company or any Parent or Subsidiary of the Company) will not exceed One Hundred Thousand Dollars
($100,000). If the Fair Market Value of Shares on the date of grant with respect to which ISOs are
exercisable for the first time by a Participant during any calendar year exceeds One Hundred
Thousand Dollars ($100,000), then the Options for the first One Hundred Thousand Dollars ($100,000)
worth of Shares to become exercisable in such calendar year will be ISOs and the Options for the
amount in excess of One Hundred Thousand Dollars ($100,000) that become exercisable in that
calendar year will be NQSOs. In the event that the Code or the regulations promulgated thereunder
are amended after the Effective Date (as defined in Section 17 hereof) to provide for a different
limit on the Fair Market Value of Shares permitted to be subject to ISOs, then such different limit
will be automatically incorporated herein and will apply to any Options granted after the effective
date of such amendment.

          5.9 Modification, Extension or Renewal. The Committee may modify, extend or renew
outstanding Options and authorize the grant of new Options in substitution therefor, provided that
any such action may not, without the written consent of a Participant, impair any of such
Participant’s rights under any Option previously granted. Any outstanding ISO that is modified,
extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the
Code. Subject to Section 5.10 hereof, the Committee may reduce the Exercise Price of outstanding
Options without the consent of Participants by a written notice to them; provided, however, that
the Exercise Price may not be reduced below the minimum Exercise Price that would be permitted
under Section 5.4 hereof for Options granted on the date the action is taken to reduce the Exercise
Price; provided, further, that the Exercise Price will not be reduced below the par value of the
Shares, if any.

          5.10 No Disqualification. Notwithstanding any other provision in this Plan, no term
of this Plan relating to ISOs will be interpreted, amended or altered, nor will any discretion or
authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of
the Code or, without the consent of the Participant, to disqualify any Participant’s ISO under
Section 422 of the Code. In no event shall the total number of Shares issued (counting each
reissuance of a Share that was previously issued and then forfeited or repurchased by the Company
as a separate issuance) under the Plan upon exercise of ISO’s exceed EIGHTY MILLION (80,000,000)
Shares (adjusted in proportion to any adjustments under Section 2.2. hereof) over the term of the
Plan.

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     6. PAYMENT FOR SHARE PURCHASES.

          6.1 Payment. Payment for Shares purchased pursuant to this Plan may be made in cash
(by check) or, where expressly approved for the Participant by the Committee and where permitted by
law:

	 	(a)	 	by cancellation of indebtedness of the Company
owed to the Participant;
	 
	 	(b)	 	by surrender of shares that: (i) either (A)
have been owned by Participant for more than six (6) months and have
been paid for within the meaning of SEC Rule 144 (and, if such shares
were purchased from the Company by use of a promissory note, such note
has been fully paid with respect to such shares) or (B) were obtained
by Participant in the public market and (ii) are clear of all liens,
claims, encumbrances or security interests;
	 
	 	(c)	 	by tender of a full recourse promissory note
having such terms as may be approved by the Committee and bearing
interest at a rate sufficient to avoid imputation of income under
Sections 483 and 1274 of the Code; provided, however, that Participants
who are not employees or directors of the Company will not be entitled
to purchase Shares with a promissory note unless the note is adequately
secured by collateral other than the Shares; provided, further, that
the portion of the Exercise Price equal to the par value of the Shares
must be paid in cash or other legal consideration permitted by Delaware
General Corporation Law;
	 
	 	(d)	 	by waiver of compensation due or accrued to the
Participant from the Company for services rendered;
	 
	 	(e)	 	provided that a public market for the Company’s
stock exists:

	 	(i)	 	through a “same day sale”
commitment from the Participant and a broker-dealer that is a
member of the National Association of Securities Dealers (an
“NASD Dealer”) whereby the Participant irrevocably elects to
exercise the Option and to sell a portion of the Shares so
purchased sufficient to pay the total Exercise Price, and
whereby the NASD Dealer irrevocably commits upon receipt of such
Shares to forward the total Exercise Price directly to the
Company; or
	 
	 	(ii)	 	through a “margin” commitment
from the Participant and an NASD Dealer whereby the Participant
irrevocably elects to exercise the Option and to pledge the
Shares so purchased to the NASD Dealer in a margin account as
security for a loan from the NASD Dealer in the amount of the total Exercise Price, and whereby the NASD Dealer

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	 	 	 	irrevocably commits upon receipt of such Shares to forward
the total Exercise Price directly to the Company; or

	 	(f)	 	by any combination of the foregoing.

          6.2 Loan Guarantees. The Committee may, in its sole discretion, elect to assist the
Participant in paying for Shares purchased under this Plan by authorizing a guarantee by the
Company of a third-party loan to the Participant.

     7. WITHHOLDING TAXES.

          7.1 Withholding Generally. Whenever Shares are to be issued in satisfaction of
Options granted under this Plan, the Company may require the Participant to remit to the Company an
amount sufficient to satisfy federal, state and local withholding tax requirements prior to the
delivery of any certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Options are to be made in cash by the Company, such payment will be net of an
amount sufficient to satisfy federal, state, and local withholding tax requirements.

          7.2 Stock Withholding. When, under applicable tax laws, a Participant incurs tax
liability in connection with the exercise or vesting of any Option that is subject to tax
withholding and the Participant is obligated to pay the Company the amount required to be withheld,
the Committee may in its sole discretion allow the Participant to satisfy the minimum withholding
tax obligation by electing to have the Company withhold from the Shares to be issued that number of
Shares having a Fair Market Value equal to the minimum amount required to be withheld, determined
on the date that the amount of tax to be withheld is to be determined. All elections by a
Participant to have Shares withheld for this purpose will be made in accordance with the
requirements established by the Committee for such elections and be in writing in a form acceptable
to the Committee.

     8. PRIVILEGES OF STOCK OWNERSHIP.

          8.1 Voting and Dividends. No Participant will have any of the rights of a stockholder
with respect to any Shares until the Shares are issued to the Participant. After Shares are issued
to the Participant, the Participant will be a stockholder and have all the rights of a stockholder
with respect to such Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that the Participant will have no
right to retain such stock dividends or stock distributions with respect to Unvested Shares that
are repurchased pursuant to Section 10 hereof. The Company will comply with Section 260.140.1 of
Title 10 of the California Code of Regulations with respect to the voting rights of Common Stock.

          8.2 Financial Statements. The Company will provide financial statements to each
Participant annually during the period such Participant has Options outstanding, or as otherwise
required under Section 260.140.46 of Title 10 of the California Code of Regulations.
Notwithstanding the foregoing, the Company will not be required to provide such financial
statements to Participants when issuance is limited to key employees whose services in connection
with the Company assure them access to equivalent information.

     9. TRANSFERABILITY. Options granted under this Plan, and any interest therein, will
not be transferable or assignable by Participant, other than by will or by the laws of descent and
distribution and may not be made subject to execution, attachment or similar

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process. During the
lifetime of the Participant an Option will be exercisable only by the Participant or Participant’s
legal representative and any elections with respect to an Option may be made only by the
Participant or Participant’s legal representative.

     10. RESTRICTIONS ON SHARES.

          10.1 Right of First Refusal. At the discretion of the Committee, the Company may
reserve to itself and/or its assignee(s) in the Stock Option Agreement a right of first refusal to
purchase all Shares that a Participant (or a subsequent transferee) may propose to transfer to a
third party, unless otherwise not permitted by Section 25102(o) of the California Corporations
Code, provided, that such right of first refusal terminates upon the Company’s initial public
offering of Common Stock pursuant to an effective registration statement filed under the Securities
Act.

          10.2 Right of Repurchase. At the discretion of the Committee, the Company may reserve
to itself and/or its assignee(s) in the Stock Option Agreement a right to repurchase Unvested
Shares held by a Participant for cash and/or cancellation of purchase money indebtedness owed to
the Company by the Participant following such Participant’s Termination at any time within the
later of ninety (90) days after Participant’s Termination Date and the date Participant purchases
Shares upon exercise of an Option at the Participant’s Exercise Price, provided, that to the extent
the Participant is not an officer, director or consultant of the Company or of a Parent or
Subsidiary of the Company, such right of repurchase lapses at the rate of no less than twenty
percent (20%) per year over five (5) years from the date of grant of the Option.

     11. CERTIFICATES. All certificates for Shares or other securities delivered under
this Plan will be subject to such stock transfer orders, legends and other restrictions as the
Committee may deem necessary or advisable, including restrictions under any applicable federal,
state or foreign securities law, or any rules, regulations and other requirements of the SEC or any
stock exchange or automated quotation system upon which the Shares may be listed or quoted.

     12. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a Participant’s Shares
set forth in Section 10 hereof, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other instruments of transfer
approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated
by the Company to hold in escrow until such restrictions have lapsed or terminated. The Committee
may cause a legend or legends referencing such restrictions to be placed on the certificates. Any
Participant who is permitted to execute a promissory note as partial or full consideration for the
purchase of Shares under this Plan will be required to pledge and deposit with the Company all or
part of the Shares so purchased as collateral to secure the payment of Participant’s obligation to
the Company under the promissory note; provided, however, that the Committee may require or accept
other or additional forms of collateral to secure the payment of such obligation and, in any event,
the Company will have full recourse against the Participant under the promissory note
notwithstanding any pledge of the Participant’s Shares or other collateral. In connection with any
pledge of the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve.

     13. EXCHANGE AND BUYOUT OF OPTIONS. The Committee may, at any time or from time to
time, authorize the Company, with the consent of the respective Participants, to

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issue new Options
in exchange for the surrender and cancellation of any or all outstanding Options. The Committee
may at any time buy from a Participant an Option previously granted with payment in cash, shares of
Common Stock of the Company or other consideration, based on such terms and conditions as the
Committee and the Participant may agree.

     14. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. This Plan is intended to comply
with Section 25102(o) of the California Corporations Code. Any provision of this Plan which is
inconsistent with Section 25102(o) shall, without further act or amendment by the Company or the
Board, be reformed to comply with the requirements of Section 25102(o). An Option will not be
effective unless such Option is in compliance with all applicable federal and state securities
laws, rules and regulations of any governmental body, and the requirements of any stock exchange or
automated quotation system upon which the Shares may then be listed or quoted, as they are in
effect on the date of grant of the Option and also on the date of exercise or other issuance.
Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or
deliver certificates for Shares under this Plan prior to (i) obtaining any approvals from
governmental agencies that the Company determines are necessary or advisable, and/or (ii)
compliance with any exemption, completion of any registration or other qualification of such Shares
under any state or federal law or ruling of any governmental body that the Company determines to be
necessary or advisable. The Company will be under no obligation to register the Shares with the
SEC or to effect compliance with the exemption, registration, qualification or listing requirements
of any state securities laws, stock exchange or automated quotation system, and the Company will
have no liability for any inability or failure to do so.

     15. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Option granted under this
Plan will confer or be deemed to confer on any Participant any right to continue in the employ of,
or to continue any other relationship with, the Company or any Parent or Subsidiary of the Company
or limit in any way the right of the Company or any Parent or Subsidiary of the Company to
terminate Participant’s employment or other relationship at any time, with or without Cause.

     16. CORPORATE TRANSACTIONS.

          16.1 Assumption or Replacement of Options by Successor or Acquiring Company. In the
event of (i) a dissolution or liquidation of the Company, (ii) a merger or consolidation in which
the Company is not the surviving corporation (other than a merger or consolidation with a
wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or other
transaction in which there is no substantial change in the stockholders of the Company or their
relative stock holdings and the Options granted under this Plan are assumed, converted or replaced
by the successor or acquiring corporation, which assumption, conversion or replacement will be
binding on all Participants), (iii) a merger in which the Company is the surviving corporation but
after which the stockholders of the Company immediately prior to such merger (other than any
stockholder which merges with the Company in such merger, or which owns or controls another
corporation which merges with the Company in such merger) cease to own their shares or other equity
interests in the Company, or (iv) the sale of all or substantially all of the assets of the
Company, any or all outstanding Options may be assumed, converted or replaced by the successor or
acquiring corporation (if any), which assumption, conversion or replacement will be binding on all Participants. In the alternative, the successor or
acquiring corporation may substitute equivalent Options or provide substantially similar
consideration to Participants as was provided to stockholders (after taking into account

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the existing provisions of the Options). The successor or acquiring corporation may also substitute by
issuing, in place of outstanding Shares of the Company held by the Participant, substantially
similar shares or other property subject to repurchase restrictions and other provisions no less
favorable to the Participant than those which applied to such outstanding Shares immediately prior
to such transaction described in this Section 16.1. For the purposes of this paragraph, the
Option shall be considered assumed if, following the merger or sale of assets, the 0ption confers
the right to purchase or receive, for each Share subject to the Option immediately prior to the
merger or sale of assets, the consideration (whether stock, cash, or other securities or property)
received in the merger or sale of assets by holders of Common Stock for each Share held on the
effective date of the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares); provided, however,
that if such consideration received in the merger or sale of assets is not solely common stock of
the successor corporation or its Parent, the Committee may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of the Option, for each
Share subject to 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 merger or sale of assets. In the event such successor or acquiring corporation (if any) does
not assume, convert, replace or substitute Options, as provided above, pursuant to a transaction
described in this Section 16.1, then notwithstanding any other provision in this Plan to the
contrary, the vesting of such Options will accelerate and the Options will become exercisable in
full prior to the consummation of such event at such times and on such conditions as the Committee
determines, and if such Options are not exercised prior to the consummation of the corporate
transaction, they shall terminate in accordance with the provisions of this Plan.

          16.2 Other Treatment of Options. Subject to any greater rights granted to
Participants under the foregoing provisions of this Section 16 hereof, in the event of the
occurrence of any transaction described in Section 16.1 hereof, any outstanding Options will be
treated as provided in the applicable agreement or plan of merger, consolidation, dissolution,
liquidation or sale of assets.

          16.3 Assumption of Options by the Company. The Company, from time to time, also may
substitute or assume outstanding options granted by another company, whether in connection with an
acquisition of such other company or otherwise, by either (i) granting an Option under this Plan in
substitution of such other company’s option, or (ii) assuming such option as if it had been granted
under this Plan if the terms of such assumed option could be applied to an Option granted under
this Plan. Such substitution or assumption will be permissible if the holder of the substituted or
assumed option would have been eligible to be granted an Option under this Plan if the other
company had applied the rules of this Plan to such grant. In the event the Company assumes an
option granted by another company, the terms and conditions of such option will remain unchanged
(except that the exercise price and the number and nature of shares issuable upon exercise
of any such option will be adjusted appropriately pursuant to Section 424(a) of the Code). In the
event the Company elects to grant a new Option rather than assuming an existing option, such new
Option may be granted with a similarly adjusted Exercise Price.

     17. ADOPTION AND STOCKHOLDER APPROVAL. This Plan will become effective on the date
that it is adopted by the Board (the “Effective Date”). This Plan will be approved by the
stockholders of the Company (excluding Shares issued pursuant to this Plan), consistent with
applicable laws, within twelve (12) months before or after the Effective Date.

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Upon the Effective Date, the Board may grant Options pursuant to this Plan; provided, however, that: (i) no Option
may be exercised prior to initial stockholder approval of this Plan; (ii) no Option granted
pursuant to an increase in the number of Shares approved by the Board shall be exercised prior to
the time such increase has been approved by the stockholders of the Company; (iii) in the event
that initial stockholder approval is not obtained within the time period provided herein, all
Options granted hereunder shall be canceled, any Shares issued pursuant to any exercised Option
shall be canceled and rescinded; and (iv) Options granted pursuant to an increase in the number of
Shares approved by the Board which increase is not timely approved by stockholders shall be
canceled.

     18. TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided herein, this
Plan will terminate ten (10) years from the Effective Date or, if earlier, the date of stockholder
approval. This Plan and all agreements hereunder shall be governed by and construed in accordance
with the laws of the State of California.

     19. AMENDMENT OR TERMINATION OF PLAN. Subject to Section 5.9 hereof, the Board may at
any time terminate or amend this Plan in any respect, including without limitation amendment of any
form of Stock Option Agreement or instrument to be executed pursuant to this Plan; provided,
however, that the Board will not, without the approval of the stockholders of the Company, amend
this Plan in any manner that requires such stockholder approval pursuant to Section 25102(o) of the
California Corporations Code or the Code or the regulations promulgated thereunder as such
provisions apply to ISO plans.

     20. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the Board, the
submission of this Plan to the stockholders of the Company for approval, nor any provision of this
Plan will be construed as creating any limitations on the power of the Board to adopt such
additional compensation arrangements as it may deem desirable, including, without limitation, the
granting of stock options and other equity awards otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific cases.

     21. DEFINITIONS. As used in this Plan, the following terms will have the following
meanings:

          “Board” means the Board of Directors of the Company.

          “Cause” means Termination because of (i) any willful, material violation by the Participant of
any law or regulation applicable to the business of the Company or a Parent or Subsidiary of the
Company, the Participant’s conviction for, or guilty plea to, a felony or a crime involving moral
turpitude, or any willful perpetration by the Participant of a common law fraud, (ii) the
Participant’s commission of an act of personal dishonesty which involves personal profit in
connection with the Company or any other entity having a business relationship with the Company,
(iii) any material breach by the Participant of any provision of any agreement or understanding
between the Company or a Parent or Subsidiary of the Company and the Participant regarding the
terms of the Participant’s service as an employee, officer, director or consultant to the Company
or a Parent or Subsidiary of the Company, including without limitation, the willful and continued
failure or refusal of the Participant to perform the material duties required of such Participant as an employee, officer, director or consultant of the
Company or a Parent or Subsidiary of the Company, other than as a result of having a Disability, or
a breach of any applicable invention assignment and confidentiality agreement or similar agreement
between the Company or a Parent or Subsidiary of the Company and the Participant,

11

 

(iv)
Participant’s disregard of the policies of the Company or any Parent or Subsidiary of the Company
so as to cause loss, damage or injury to the property, reputation or employees of the Company or a
Parent or Subsidiary of the Company, or (v) any other misconduct by the Participant which is
materially injurious to the financial condition or business reputation of, or is otherwise
materially injurious to, the Company or a Parent or Subsidiary of the Company. The Committee will
have sole discretion to determine whether a Termination is for Cause, and such determination shall
be binding upon the Company and the Participant.

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Committee” means the committee created and appointed by the Board to administer this Plan, or
if no committee is created and appointed, the Board.

          “Company” means SuccessFactors, Inc., a Delaware corporation, or any successor corporation.

          “Disability” means a disability, whether temporary or permanent, partial or total, as
determined by the Committee.

          “Exercise Price” means the price at which a holder of an Option may purchase the Shares
issuable upon exercise of the Option.

          “Fair Market Value” means, as of any date, the value of a share of the Company’s Common Stock
determined as follows:

	 	(a)	 	if such Common Stock is then quoted on the
Nasdaq National Market, its closing price on the Nasdaq National Market
on the date of determination as reported in The Wall Street
Journal;
	 
	 	(b)	 	if such Common Stock is publicly traded and is
then listed on a national securities exchange, its closing price on the
date of determination on the principal national securities exchange on
which the Common Stock is listed or admitted to trading as reported in
The Wall Street Journal;
	 
	 	(c)	 	if such Common Stock is publicly traded but is
not quoted on the Nasdaq National Market nor listed or admitted to
trading on a national securities exchange, the average of the closing
bid and asked prices on the date of determination as reported by
The Wall Street Journal (or, if not so reported, as otherwise
reported by any newspaper or other source as the Board may determine);
or
	 
	 	(d)	 	if none of the foregoing is applicable, by the
Committee in good faith.

          “Option” means an award of an option to purchase Shares pursuant to Section 5.

          “Parent” means any corporation (other than the Company) in an unbroken chain of corporations
ending with the Company if each of such corporations other than the Company owns stock representing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

12

 

          “Participant” means a person who receives an Option under this Plan.

          “Plan” means this SuccessFactors, Inc. 2001 Stock Option Plan, as amended from time to time.

          “SEC” means the Securities and Exchange Commission.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Shares” means shares of the Company’s Common Stock, par value, $0.001 per share reserved for
issuance under this Plan, as adjusted pursuant to Sections 2 and 16 hereof, and any successor
security.

          “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if each of the corporations other than the last corporation
in the unbroken chain owns stock representing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain.

          “Termination” or “Terminated” means, for purposes of this Plan with respect to a Participant,
that the Participant has for any reason ceased to provide services as an employee, officer,
director or consultant to the Company or a Parent or Subsidiary of the Company. A Participant will
not be deemed to have ceased to provide services in the case of (i) sick leave, (ii) military
leave, or (iii) any other leave of absence approved by the Committee, provided that such leave is
for a period of not more than ninety (90) days (a) unless reinstatement (or, in the case of an
employee with an ISO, reemployment) upon the expiration of such leave is guaranteed by contract or
statute, or (b) unless provided otherwise pursuant to formal policy adopted from time to time by
the Company’s Board and issued and promulgated in writing. In the case of any Participant on (i)
sick leave, (ii) military leave or (iii) an approved leave of absence, the Committee may make such
provisions respecting suspension of vesting of the Option while on leave from the Company or a
Parent or Subsidiary of the Company as it may deem appropriate, except that in no event may an
Option be exercised after the expiration of the term set forth in the Stock Option Agreement. The
Committee will have sole discretion to determine whether a Participant has ceased to provide
services and the effective date on which the Participant ceased to provide services (the
“Termination Date”), and such determination shall be binding on the Company and the Participant.

          “Unvested Shares” means “Unvested Shares” as defined in the Stock Option Agreement.

          “Vested Shares” means “Vested Shares” as defined in the Stock Option Agreement.

13exv10w3

 

Exhibit 10.3

SUCCESSFACTORS, INC.

2001 STOCK OPTION PLAN

NOTICE OF STOCK OPTION GRANT

	 	 	 
	YOUR NAME
 

(Name)

	 	 
	 
	 	 
	 	 
	 
	(Address)
	 	 
	 
	 	 
	 	 
	 
	(Address)
	 	 

     You have been granted an option to purchase Common Stock “Common Stock” of
SuccessFactors, Inc., a Delaware corporation (the “Company”) as follows:

	 	 	 	 	 	 
	 	Board Approval Date:
	 	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 
	 	Date of Grant (Later of Board
Approval Date or Commencement of Employment/Consulting):
	 	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 
	 	Vesting Commencement Date:
	 	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 
	 	Exercise Price per Share:

	$ 	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 
	 	Total Number of Shares Granted:
	 	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 
	 	Total Exercise Price:

	$ 	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 
	 	Type of Option:

	 	þ Incentive Stock Option

	 	 
	 	 	 	 
	 	 

	 	o Non-Qualified Stock Option

	 	 
	 	 	 	 
	 	Term/Expiration Date:
	 	 	 	 
	 	 

	 	 

-1-

 

	 	 	 	 
	 	 

	 	 
	 	Vesting Schedule:

	 	This Option may be exercised, in whole or in part, as
follows: (a) On the one year anniversary of the
Vesting Commencement Date this Option shall become
exercisable as to 1/4th of the Shares; and
(b) thereafter this Option shall become exercisable as
to an additional 1/48th of the Shares on
each monthly anniversary of the Vesting Commencement
Date so that all the Shares become exercisable within
four years of the Vesting Commencement Date. No
Shares shall become exercisable after the termination
of Optionee’s employment or consulting relationship
with the Company. Optionee shall in no event be
entitled under this Option to purchase a number of
shares of the Company’s Common Stock greater than the
“Total Number of Shares Granted” indicated above. If
the application of this vesting schedule results in a
fractional share, such share shall be rounded down to
the nearest whole share for each month except for the
last month of the Vesting Schedule when the balance of
all Shares shall become exercisable.
	 	 
	 	 
	 	Termination Period:

	 	This Option may be exercised for 90 days after
termination of Optionee’s employment or consulting
relationship with the Company except as set out in
Sections 5, 6, or 7 of the Stock Option Agreement (but
in no event later than the Expiration Date).

     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 2001 Stock
Option Plan and the Stock Option Agreement, both of which are attached and made a part of this
document.

	 	 	 	 	 	 	 	 	 
	YOUR NAME:

	 	 
	 	SUCCESSFACTORS, INC.
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address (if different from previous page):	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

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SUCCESSFACTORS, INC.

2001 STOCK OPTION PLAN

STOCK OPTION AGREEMENT

     1. Grant of Option. SuccessFactors, Inc., a Delaware corporation (the
“Company”), hereby grants to YOUR NAME (“Optionee”), an option (the
“Option”) to purchase a total number of shares of Common Stock (the “Shares”) 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, definitions and
provisions of the SuccessFactors, Inc. 2001 Stock Option Plan (the “Plan”) adopted by the
Company, which is incorporated herein by reference. Unless otherwise defined herein, the terms
defined in the Plan shall have the same defined meanings in this Option.

     If designated an Incentive Stock Option, this Option is intended to qualify as an Incentive
Stock Option as defined in Section 422 of the Internal Revenue Code (the “Code”).

     2. Exercise of Option. This Option shall be exercisable during its Term in accordance
with the Vesting Schedule set out in the Notice of Stock Option Grant and with the provisions of
Section 9 of the Plan as follows:

          (a) Right to Exercise.

                    (i) This Option may not be exercised for a fraction of a share.

                    (ii) In the event of Optionee’s death, disability or other termination of employment, the
exercisability of the Option is governed by Sections 5, 6 and 7 below, subject to the limitation
contained in Section 2(a)(i).

                    (iii) In no event may this Option be exercised after the Expiration Date of this Option as set
forth in the Notice of Stock Option Grant.

          (b) Method of Exercise. This Option shall be exercisable by execution and delivery of
the Exercise Notice and Restricted Stock Purchase Agreement attached hereto as Exhibit A
(the “Exercise Agreement”) or of any other form of written notice approved for such purpose
by the Company which shall state the election to exercise the Option, the number of Shares in
respect of which the Option is being exercised, and such other representations and agreements as to
the holder’s investment intent with respect to such shares of Common Stock as may be required by
the Company pursuant to the provisions of the Plan. Such written notice shall be signed by
Optionee and shall be delivered in person or by certified mail to the Secretary of the Company.
The written notice shall be accompanied by payment of the Exercise Price. This Option shall be
deemed to be exercised upon receipt by the Company of such written notice accompanied by the
Exercise Price.

-3-

 

     No Shares will be issued pursuant to the exercise of an Option unless such issuance and such
exercise shall comply with all relevant provisions of applicable law and the requirements of any
stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax
purposes the Shares shall be considered transferred to Optionee on the date on which the Option is
exercised with respect to such Shares.

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

          (a) cash or check;

          (b) by cancellation of indebtedness of the Company to the Optionee;

          (c) and with the approval of the Committee, by tender of a full recourse promissory note
having such terms as may be approved by the Committee and bearing interest at a rate sufficient to
avoid imputation of income under Sections 483 and 1274 of the Code;

          (d) by waiver of compensation due to Optionee for services rendered;

          (e) surrender of other shares of Common Stock of the Company which (i) in the case of Shares
acquired pursuant to the exercise of a Company option, have been owned by Optionee for more than
six months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender
equal to the Exercise Price of the Shares as to which the Option is being exercised; or

          (f) if there is a public market for the Shares and they are registered under the Exchange Act,
delivery of a properly executed exercise notice together with irrevocable instructions to a broker
to deliver promptly to the Company the amount of sale or loan proceeds required to pay the Exercise
Price.

     4. Restrictions on Exercise. This Option may not be exercised until such time as the
Plan has been approved by the stockholders of the Company, or if the issuance of such Shares upon
such exercise or the method of payment of consideration for such shares would constitute a
violation of any applicable federal or state securities or other law or regulation, including any
rule under Part 207 of Title 12 of the Code of Federal Regulations as promulgated by the Federal
Reserve Board. As a condition to the exercise of this Option, the Company may require Optionee to
make any representation and warranty to the Company as may be required by any applicable law or
regulation.

     5. Termination of Relationship. In the event of Termination of Optionee, Optionee
may, to the extent otherwise so entitled at the date of such termination (the “Termination
Date”), exercise this Option during the Termination Period set forth in the Notice of Stock
Option Grant. To the extent that Optionee was not entitled to exercise this Option at such
Termination Date, or if Optionee does not exercise this Option within the Termination Period, the
Option shall terminate.

-4-

 

     6. Disability of Optionee.

          (a) Notwithstanding the provisions of Section 5 above, in the event of Termination of Optionee
as a result of Optionee’s total and permanent disability (as defined in Section 22(e)(3) of the
Code), Optionee may, but only within twelve months from the Termination Date (but in no event later
than the Expiration Date set forth in the Notice of Stock Option Grant), exercise this Option to
the extent Optionee was entitled to exercise it as of such Termination Date. To the extent that
Optionee was not entitled to exercise the Option as of the Termination Date, or if Optionee does
not exercise such Option (to the extent so entitled) within the time specified in this Section
6(a), the Option shall terminate.

          (b) Notwithstanding the provisions of Section 5 above, in the event of Termination of Optionee
as a result of disability not constituting a total and permanent disability (as set forth in
Section 22(e)(3) of the Code), Optionee may, but only within six months from the Termination Date
(but in no event later than the Expiration Date set forth in the Notice of Stock Option Grant),
exercise the Option to the extent Optionee was entitled to exercise it as of such Termination Date;
provided, however, that if this is an Incentive Stock Option and Optionee fails to exercise this
Incentive Stock Option within three months from the Termination Date, this Option will cease to
qualify as an Incentive Stock Option (as defined in Section 422 of the Code) and Optionee will be
treated for federal income tax purposes as having received ordinary income at the time of such
exercise in an amount generally measured by the difference between the Exercise Price for the
Shares and the Fair Market Value of the Shares on the date of exercise. To the extent that
Optionee was not entitled to exercise the Option at the Termination Date, or if Optionee does not
exercise such Option to the extent so entitled within the time specified in this Section 6(b), the
Option shall terminate.

     7. Death of Optionee. In the event of the death of Optionee (a) during the Term of
this Option and while an employee or consultant of the Company and having been in continuous status
as an employee or consultant since the date of grant of the Option, or (b) within 30 days after
Optionee’s Termination Date, the Option may be exercised at any time within six months following
the date of death (but in no event later than the Expiration Date set forth in the Notice of Stock
Option Grant), by 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
Termination Date.

     8. 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 and may be exercised during the
lifetime of Optionee only by him or her. The terms of this Option shall be binding upon the
executors, administrators, heirs, successors and assigns of Optionee.

     9. Term of Option. This Option may be exercised only within the Term set forth in the
Notice of Stock Option Grant, subject to the limitations set forth in Section 5 of the Plan.

     10. Tax Consequences. Set forth below is a brief summary as of the date of this
Option of certain of the federal and California tax consequences of exercise of this Option and
disposition of the Shares under the laws in effect as of the Date of Grant. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE

-5-

 

SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

          (a) Exercise of Incentive Stock Option. If this Option qualifies as an Incentive
Stock Option, there will be no regular federal or California income tax liability upon the exercise
of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price will be treated as an adjustment to the alternative minimum tax
for federal tax purposes and may subject Optionee to the alternative minimum tax in the year of
exercise.

          (b) Exercise of Non-qualified Stock Option. If this Option does not qualify as an
Incentive Stock Option, there may be a regular federal income tax liability and a California income
tax liability upon the exercise of the Option. 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 Shares on the date of exercise over the Exercise Price. If Optionee is an
employee, the Company will be required to withhold from Optionee’s compensation or collect from
Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this
compensation income at the time of exercise.

          (c) Disposition of Shares. In the case of a Non-qualified Stock Option, if Shares are
held for at least one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal and California income tax purposes. In the case of an Incentive
Stock Option, if Shares transferred pursuant to the Option are held for at least one year after
exercise and are disposed of at least two years after the Date of Grant, any gain realized on
disposition of the Shares will also be treated as long-term capital gain for federal and California
income tax purposes. In either case, through 2008, long-term capital gain will be taxed for
federal income tax and alternative minimum tax purposes at a maximum rate of 15% if the Shares are
held more than one year. If Shares purchased under an Incentive Stock Option are disposed of
within one year after exercise or within two years after the Date of Grant, any gain realized on
such disposition will be treated as compensation income (taxable at ordinary income rates) to the
extent of the difference between the Exercise Price and the lesser of (i) the Fair Market Value of
the Shares on the date of exercise, or (ii) the sale price of the Shares.

          (d) Notice of Disqualifying Disposition of Incentive Stock Option Shares. If the
Option granted to Optionee herein is an Incentive Stock Option, and if Optionee sells or otherwise
disposes of any of the Shares acquired pursuant to the Incentive Stock Option on or before the
later of (i) the date two years after the Date of Grant, or (ii) the date one year after the date
of exercise, Optionee shall immediately notify the Company in writing of such disposition.
Optionee acknowledges and agrees that he or she may be subject to income tax withholding by the
Company on the compensation income recognized by Optionee from the early disposition by payment in
cash or out of the current earnings paid to Optionee.

     11. Withholding Tax Obligations. Prior to the issuance of the Shares upon exercise of
this Option, Optionee must pay or make adequate provision for any applicable federal or state
withholding obligations of the Company. If Optionee is subject at the time of exercise of this
Option to Section 16(b) of the Exchange Act (an “Insider”), Optionee may provide for payment

-6-

 

of Optionee’s minimum statutory withholding taxes upon exercise of the Option by requesting that
the Company retain Shares with a Fair Market Value equal to the minimum amount of taxes required to
be withheld, all as set forth in Section 6(c) of the Plan. In such case, the Company shall issue
the net number of Shares to Optionee by deducting the Shares retained from the Shares exercised.

     12. Market Standoff Agreement. In connection with the initial public offering of the
Company’s securities and upon request of the Company or the underwriters managing such underwritten
offering of the Company’s securities, Optionee agrees not to sell, make any short sale of, loan,
grant any option for the purchase of, or otherwise dispose of any securities of the Company (other
than those included in the registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed 180 days) from the
effective date of such registration as may be requested by the Company or such managing
underwriters and to execute an agreement reflecting the foregoing as may be requested by the
underwriters at the time of the Company’s initial public offering.

13. Data Privacy Notice and Consent.

          (a) The Optionee hereby explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of his or her personal data as described in this Stock
Option Agreement by and among, as applicable, the Company, its parent, its subsidiaries and its
affiliates for the exclusive purpose of implementing, administering and managing the Optionee’s
participation in the Plan.

          (b) The Optionee understands that the Company may hold certain personal information about the
Optionee, including, but not limited to, the Optionee’s name, home address and telephone number,
date of birth, social insurance number or other identification number, salary, nationality, job
title, any shares of stock or directorships held in the Company, details of all Options or any
other entitlement to shares of Common Stock awarded, canceled, vested, unvested or outstanding in
the Optionee’s favor, for the purpose of implementing, administering and managing the Plan
(“Data”).

          (c) The Optionee understands that Data may be transferred to any third parties assisting in
the implementation, administration and management of the Plan, that these recipients may be located
in the Optionee’s country, or elsewhere, including outside the European Union, and that the
recipient’s country may have different data privacy laws and protections than the Optionee’s
country. The Optionee understands that he or she may request a list with the names and addresses
of any potential recipients of the Data by contacting his or her local human resources
representative. The Optionee authorizes the recipients to receive, possess, use, retain and
transfer the Data, in electronic or other form, for the purposes of implementing, administering and
managing the Optionee’s participation in the Plan, including any requisite transfer of such Data as
may be required to a broker, escrow agent or other third party with whom the Shares received upon
vesting of the Options may be deposited. The Optionee understands that Data will be held only as
long as is necessary to implement, administer and manage his or her participation in the Plan. The
Optionee understands that he or she may, at any time, view Data, request
additional information about the storage and processing of Data, require

-7-

 

any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by
contacting in writing his or her local human resources representative. The Optionee understands,
however, that refusal or withdrawal of consent may affect his or her ability to participate in the
Plan. For more information on the consequences of his or her refusal to consent or withdrawal of
consent, the Optionee understands that he or she may contact his or her local human resources
representative.

[Signature Page Follows]

-8-

 

     This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original and all of which together shall constitute one document.

	 	 	 	 	 
	 	SUCCESSFACTORS, INC.

 	 
	 	By:  	 	 
	 	 	Lars Dalgaard, President 	 
	 	 	 	 
	 

     OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF ANY SHARES ISSUED PURSUANT TO THIS OPTION
IS EARNED ONLY BY CONTINUING EMPLOYMENT OR CONSULTANCY AT THE WILL OF THE COMPANY (NOT THROUGH THE
ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER
ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY’S STOCK OPTION PLAN
WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO
CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH
OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S EMPLOYMENT OR CONSULTANCY AT ANY
TIME, WITH OR WITHOUT CAUSE.

     Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar
with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms
and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had
an opportunity to obtain the advice of counsel prior to executing this Option and fully understands
all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final
all decisions or interpretations of the Committee upon any questions arising under the Plan or this
Option.

	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

YOUR NAME
	 	 

-9-

 

EXHIBIT A

SUCCESSFACTORS, INC.

2001 STOCK OPTION PLAN

EXERCISE NOTICE AND RESTRICTED STOCK PURCHASE AGREEMENT

     This Agreement (“Agreement”) is made
as of              , by and between SuccessFactors, Inc., a
Delaware corporation (the “Company”), and YOUR NAME (“Purchaser”). To the extent
any capitalized terms used in this Agreement are not defined, they shall have the meaning ascribed
to them in the Company’s 2001 Stock Option Plan.

     1. Exercise of Option. Subject to the terms and conditions hereof, Purchaser hereby
elects to exercise his or her option to purchase                                          shares of the Common Stock (the “Shares”)
of the Company under and pursuant to the Company’s 2001 Stock Option Plan (the “Plan”) and
the Notice of Stock Option and Stock Option Agreement dated                      (the “Option
Agreement”). The purchase price for the Shares shall be $0.00 per Share for a total purchase
price of $                                         . The term “Shares” refers to the purchased Shares and all securities received
in replacement of the Shares or as stock dividends or splits, all securities received in
replacement of the Shares in a recapitalization, merger, reorganization, exchange or the like, and
all new, substituted or additional securities or other properties to which Purchaser is entitled by
reason of Purchaser’s ownership of the Shares.

     2. Time and Place of Exercise. The purchase and sale of the Shares under this
Agreement shall occur at the principal office of the Company simultaneously with the execution and
delivery of this Agreement in accordance with the provisions of Section 2(b) of the Option
Agreement. On such date, the Company will deliver to Purchaser a certificate representing the
Shares to be purchased by Purchaser (which shall be issued in Purchaser’s name) against payment of
the exercise price therefor by Purchaser by (a) cash, (b) check made payable to the Company, (c)
cancellation of indebtedness of the Company to Purchaser, (d) by tender of a full recourse
promissory note having such terms as may be approved by the Committee and bearing interest at a
rate sufficient to avoid imputation of income under Sections 483 and 1274 of the Code; (e) by
waiver of compensation due to Optionee for services rendered; (f) delivery of shares of the Common
Stock of the Company in accordance with Section 3 of the Option Agreement, or (g) a combination of
the foregoing.

     3. Limitations on Transfer. In addition to any other limitation on transfer created
by applicable securities laws, Purchaser shall not assign, encumber or dispose of any interest in
the Shares except in compliance with the provisions below and applicable securities laws.

          (a) Right of First Refusal. Before any Shares held by Purchaser or any transferee of
Purchaser (either being sometimes referred to herein as the “Holder”) may be sold or
otherwise transferred (including transfer by gift or operation of law), the Company or its
assignee(s) shall have a right of first refusal to purchase the Shares on the terms and conditions
set forth in this Section 3(a) (the “Right of First Refusal”).

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                    (i) Notice of Proposed Transfer. The Holder of the Shares shall deliver to the
Company a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention to
sell or otherwise transfer such Shares; (ii) the name of each proposed purchaser or other
transferee (“Proposed Transferee”); (iii) the number of Shares to be transferred to each
Proposed Transferee; and (iv) the terms and conditions of each proposed sale or transfer. The
Holder shall offer the Shares at the same price (the “Offered Price”) and upon the same
terms (or terms as similar as reasonably possible) to the Company or its assignee(s).

                    (ii) Exercise of Right of First Refusal. At any time within 30 days after receipt of
the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect
to purchase all, but not less than all, of the Shares proposed to be transferred to any one or more
of the Proposed Transferees, at the purchase price determined in accordance with subsection (iii)
below.

                    (iii) Purchase Price. The purchase price (“Purchase Price”) for the Shares
purchased by the Company or its assignee(s) under this Section 3(a) shall be the Offered Price. If
the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash
consideration shall be determined by the Board of Directors of the Company in good faith.

                    (iv) Payment. Payment of the Purchase Price shall be made, at the option of the
Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any
outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an
assignee, to the assignee), or by any combination thereof within 30 days after receipt of the
Notice or in the manner and at the times set forth in the Notice.

                    (v) Holder’s Right to Transfer. If all of the Shares proposed in the Notice to be
transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s)
as provided in this Section 3(a), then the Holder may sell or otherwise transfer such Shares to
that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or
other transfer is consummated within 60 days after the date of the Notice and provided further that
any such sale or other transfer is effected in accordance with any applicable securities laws and
the Proposed Transferee agrees in writing that the provisions of this Section 3 shall continue to
apply to the Shares in the hands of such Proposed Transferee. If the Shares described in the
Notice are not transferred to the Proposed Transferee within such period, or if the Holder proposes
to change the price or other terms to make them more favorable to the Proposed Transferee, a new
Notice shall be given to the Company, and the Company and/or its assignees shall again be offered
the Right of First Refusal before any Shares held by the Holder may be sold or otherwise
transferred.

                    (vi) Exception for Certain Family Transfers. Anything to the contrary contained in
this Section 3(a) notwithstanding, the transfer of any or all of the Shares during Purchaser’s
lifetime or on Purchaser’s death by will or intestacy to Purchaser’s Immediate Family (as defined
below) or a trust for the benefit of Purchaser’s Immediate Family shall be exempt from the
provisions of this Section 3(a). “Immediate Family” as used herein shall mean spouse,
lineal descendant or antecedent, father, mother, brother or sister. In such

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case, the transferee or other recipient shall receive and hold the Shares so transferred subject to the
provisions of this Section, and there shall be no further transfer of such Shares except in
accordance with the terms of this Section 3.

          (b) Involuntary Transfer.

                    (i) Company’s Right to Purchase upon Involuntary Transfer. In the event, at any time
after the date of this Agreement, of any transfer by operation of law or other involuntary transfer
(including divorce or death, but excluding, in the event of death, a transfer to Immediate Family
as set forth in Section 3(a)(vi) above) of all or a portion of the Shares by the record holder
thereof, the Company shall have the right to purchase all of the Shares transferred at the greater
of the purchase price paid by Purchaser pursuant to this Agreement or the Fair Market Value of the
Shares on the date of transfer. Upon such a transfer, the person acquiring the Shares shall
promptly notify the Secretary of the Company of such transfer. The right to purchase such Shares
shall be provided to the Company for a period of 30 days following receipt by the Company of
written notice by the person acquiring the Shares.

                    (ii) Price for Involuntary Transfer. With respect to any stock to be transferred
pursuant to Section 3(b)(i), the price per Share shall be a price set by the Board of Directors of
the Company that will reflect the current value of the stock in terms of present earnings and
future prospects of the Company. The Company shall notify Purchaser or his or her executor of the
price so determined within 30 days after receipt by it of written notice of the transfer or
proposed transfer of Shares. However, if the Purchaser does not agree with the valuation as
determined by the Board of Directors of the Company, the Purchaser shall be entitled to have the
valuation determined by an independent appraiser to be mutually agreed upon by the Company and the
Purchaser and whose fees shall be borne equally by the Company and the Purchaser.

          (c) Assignment. The right of the Company to purchase any part of the Shares may be
assigned in whole or in part to any stockholder or stockholders of the Company or other persons or
organizations; provided, however, that an assignee, other than a corporation that is the Parent or
a 100% owned Subsidiary of the Company, must pay the Company, upon assignment of such right, cash
equal to the difference between the original purchase price and Fair Market Value, if the original
purchase price is less than the Fair Market Value of the Shares subject to the assignment.

          (d) Restrictions Binding on Transferees. All transferees of Shares or any interest
therein will receive and hold such Shares or interest subject to the provisions of this Agreement.
Any sale or transfer of the Shares shall be void unless the provisions of this Agreement are
satisfied.

          (e) Termination of Rights. The Right of First Refusal and the Company’s right to
repurchase the Shares in the event of an involuntary transfer pursuant to Section 3(b) above shall
terminate upon the first sale of Common Stock of the Company to the general public pursuant to a
registration statement filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the “Securities Act”).

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          (f) Market Standoff Agreement. In connection with the initial public offering of the
Company’s securities and upon request of the Company or the underwriters managing such underwritten
offering of the Company’s securities, Purchaser agrees not to sell, make any short sale of, loan,
grant any option for the purchase of, or otherwise dispose of any securities of the Company (other
than those included in the registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed 180 days) from the
effective date of such registration as may be requested by the Company or such managing
underwriters and to execute an agreement reflecting the foregoing as may be requested by the
underwriters at the time of the Company’s initial public offering.

     4. Investment and Taxation Representations. In connection with the purchase of the
Shares, Purchaser represents to the Company the following:

          (a) Purchaser 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. Purchaser is purchasing the Shares for investment for his or her own
account only and not with a view to, or for resale in connection with, any “distribution” thereof
within the meaning of the Securities Act.

          (b) Purchaser understands that the Shares have not been registered under the Securities Act by
reason of a specific exemption therefrom, which exemption depends upon, among other things, the
bona fide nature of Purchaser’s investment intent as expressed herein.

          (c) Purchaser understands that the Shares are “restricted securities” under applicable U.S.
federal and state securities laws and that, pursuant to these laws, Purchaser must hold the Shares
indefinitely unless they are registered with the Securities and Exchange Commission and qualified
by state authorities, or an exemption from such registration and qualification requirements is
available. Purchaser acknowledges that the Company has no obligation to register or qualify the
Shares for resale. Purchaser further acknowledges that if an exemption from registration or
qualification is available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Shares, and requirements
relating to the Company which are outside of the Purchaser’s control, and which the Company is
under no obligation and may not be able to satisfy.

          (d) Purchaser understands that Purchaser may suffer adverse tax consequences as a result of
Purchaser’s purchase or disposition of the Shares. Purchaser represents that Purchaser has
consulted any tax consultants Purchaser deems advisable in connection with the purchase or
disposition of the Shares and that Purchaser is not relying on the Company for any tax advice.

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     5. Restrictive Legends and Stop-Transfer Orders.

          (a) Legends. The certificate or certificates representing the Shares shall bear the
following legends (as well as any legends required by any other applicable state and federal
corporate and securities laws):

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE
SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE
AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF
COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS.”

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC
RESALE AND TRANSFER AND RIGHT OF FIRST REFUSAL AND REPURCHASE OPTIONS HELD BY THE ISSUER
AND/OR ITS ASSIGNEE(S) AND MAY NOT BE TRANSFERRED EXCEPT AS SET FORTH IN AN AGREEMENT
BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE
OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF
FIRST REFUSAL AND REPURCHASE OPTIONS ARE BINDING ON TRANSFEREES OF THESE SHARES.”

          (b) Stop-Transfer Notices. Purchaser agrees that, in order to ensure compliance with
the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions
to its transfer agent, if any, and that, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

          (c) Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay
dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.

          (d) Removal of Legend. When all of the following events have occurred, the Shares
then held by Purchaser will no longer be subject to the first legend referred to in Section 5(a):
(i) the termination of the Right of First Refusal; and (ii) the expiration or termination of the
market standoff provisions of Section 3(f) (and of any agreement entered pursuant to Section
3(f)). After such time, and upon Purchaser’s request, a new certificate or certificates

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representing the Shares not repurchased shall be issued without the first legend referred to in
Section 5(a), and delivered to Purchaser.

     6. No Employment Rights. Nothing in this Agreement shall affect in any manner
whatsoever the right or power of the Company, or a Parent or Subsidiary of the Company, to
terminate Purchaser’s employment or consulting relationship, for any reason, with or without cause.

     7. Miscellaneous.

          (a) Governing Law. This Agreement and all acts and transactions pursuant hereto and
the rights and obligations of the parties hereto shall be governed, construed and interpreted in
accordance with the laws of the State of California, without giving effect to principles of
conflicts of law.

          (b) Entire Agreement; Enforcement of Rights. The Plan and the Option are hereby
incorporated by reference in this Agreement. This Agreement (including the Plan and the Option)
sets forth the entire agreement and understanding of the parties relating to the subject matter
herein and merges all prior discussions between them. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing
signed by the parties to this Agreement. The failure by either party to enforce any rights under
this Agreement shall not be construed as a waiver of any rights of such party.

          (c) Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, the parties agree to renegotiate such provision in good
faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement
for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance
of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance
of the Agreement shall be enforceable in accordance with its terms.

          (d) Construction. This Agreement is the result of negotiations between and has been
reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this
Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be
construed in favor of or against any one of the parties hereto.

          (e) Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be deemed sufficient when delivered personally or sent by telegram or fax or 48 hours
after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and
addressed to the party to be notified at such party’s address as set forth below or as subsequently
modified by written notice.

          (f) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one instrument.

          (g) Successors and Assigns. The rights and benefits of this Agreement shall inure to
the benefit of, and be enforceable by the Company’s successors and assigns. The rights

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and obligations of Purchaser under this Agreement may only be assigned with the prior written consent
of the Company.

          (h) California Corporate Securities Law. THE PLAN, THE STOCK OPTION AGREEMENT,
AND THIS EXERCISE AGREEMENT ARE INTENDED TO COMPLY WITH SECTION 25102(o) OF THE CALIFORNIA
CORPORATIONS CODE AND ANY RULES (INCLUDING COMMISSIONER RULES, IF APPLICABLE) OR REGULATIONS
PROMULGATED THEREUNDER BY THE CALIFORNIA DEPARTMENT OF CORPORATIONS (THE “REGULATIONS”). ANY
PROVISION OF THIS EXERCISE AGREEMENT THAT IS INCONSISTENT WITH SECTION 25102(o) SHALL, WITHOUT
FURTHER ACT OR AMENDMENT BY THE COMPANY OR THE BOARD, BE REFORMED TO COMPLY WITH THE REQUIREMENTS
OF SECTION 25102(o). THE SALE OF THE SECURITIES THAT ARE THE SUBJECT OF THIS EXERCISE AGREEMENT,
IF NOT YET QUALIFIED WITH THE CALIFORNIA COMMISSIONER OF CORPORATIONS AND NOT EXEMPT FROM SUCH
QUALIFICATION, IS SUBJECT TO SUCH QUALIFICATION, AND THE ISSUANCE OF SUCH SECURITIES, AND THE
RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL UNLESS
THE SALE IS EXEMPT. THE RIGHTS OF THE PARTIES TO THIS EXERCISE AGREEMENT ARE EXPRESSLY CONDITIONED
UPON SUCH QUALIFICATION BEING OBTAINED OR AN EXEMPTION BEING AVAILABLE.

          (i) Tax Consequences. PURCHASER UNDERSTANDS THAT PURCHASER MAY SUFFER ADVERSE
TAX CONSEQUENCES AS A RESULT OF PURCHASER’S PURCHASE OR DISPOSITION OF THE SHARES. PURCHASER
REPRESENTS THAT PURCHASER HAS CONSULTED WITH ANY TAX CONSULTANT(S) PURCHASER DEEMS ADVISABLE IN
CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND THAT PURCHASER IS NOT RELYING ON THE
COMPANY FOR ANY TAX ADVICE. IN PARTICULAR, IF THE SHARES ARE SUBJECT TO REPURCHASE BY THE COMPANY
OR IF PURCHASER IS AN INSIDER SUBJECT TO SECTION 16(b) OF THE EXCHANGE ACT, PURCHASER REPRESENTS
THAT PURCHASER HAS CONSULTED WITH PURCHASER’S TAX ADVISERS CONCERNING THE ADVISABILITY OF FILING AN
83(b) ELECTION WITH THE INTERNAL REVENUE SERVICE.

[Signature Page Follows]

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     The parties have executed this Exercise Notice and Restricted Stock Purchase Agreement as of
the date first set forth above.

	 	 	 	 	 
	 	COMPANY:

SUCCESSFACTORS, INC.

 	 
	 	By:  	 	 
	 
	 	Name:  	 	 
	 	 	(print)
	 
	 	Title:  	 
	 
	 	1500 Fashion Island Blvd., Suite 300

San Mateo, CA 94403 
	 
	 	PURCHASER:

YOUR NAME: 	 
	 	 	 
	 	 	 
	 	(Signature) 	 
	 	 	 
	 
	 	Address: 	 
	 
	 	 	 
	 
	 	 	 
	 

     I, ____________, spouse of YOUR NAME, have read and hereby approve the foregoing
Agreement. In consideration of the Company’s granting my spouse the right to purchase the Shares
as set forth in the Agreement, I hereby agree to be bound irrevocably by the Agreement and further
agree that any community property or similar interest that I may have in the Shares shall hereby be
similarly bound by the Agreement. I hereby appoint my spouse as my attorney-in-fact with respect
to any amendment or exercise of any rights under the Agreement.

	 	 	 	 	 
	 
	 	Spouse of YOUR NAME

 	 

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