Document:

1998 Employee Stock Incentive Plan

 Exhibit 10.4 
  
 CAPTIVA SOFTWARE CORPORATION 
 (FKA ACTIONPOINT, INC.) 
  
 1998 EMPLOYEE STOCK PURCHASE PLAN 
  
 ADOPTED EFFECTIVE JULY 1, 1998

 AMENDED AND RESTATED EFFECTIVE MARCH 7, 2000

 AMENDED AND RESTATED EFFECTIVE JULY 1, 2002

 AMENDED AND RESTATED OCTOBER 23, 2003 

 TABLE OF CONTENTS 
  

			
	 	  	Page

	 SECTION 1. PURPOSE OF THE PLAN
	  	1
		
	 SECTION 2. ADMINISTRATION OF THE PLAN
	  	1
	 (a) Committee Composition
	  	1
	 (b) Committee Responsibilities
	  	1
		
	 SECTION 3. STOCK OFFERED UNDER THE PLAN
	  	1
	 (a) Authorized Shares
	  	1
	 (b) Anti-Dilution Adjustments
	  	1
	 (c) Reorganizations
	  	2
		
	 SECTION 4. ENROLLMENT AND PARTICIPATION
	  	2
	 (a) Offering Periods
	  	2
	 (b) Accumulation Periods
	  	2
	 (c) Enrollment
	  	2
	 (d) Duration of Participation
	  	2
	 (e) Applicable Offering Period
	  	3
		
	 SECTION 5. EMPLOYEE CONTRIBUTIONS
	  	3
	 (a) Commencement of Payroll Deductions
	  	3
	 (b) Amount of Payroll Deductions
	  	3
	 (c) Changing Withholding Rate
	  	3
	 (d) Discontinuing Payroll Deductions
	  	4
	 (e) Limit on Number of Elections
	  	4
		
	 SECTION 6. WITHDRAWAL FROM THE PLAN
	  	4
	 (a) Withdrawal
	  	4
	 (b) Re-Enrollment After Withdrawal
	  	4
		
	 SECTION 7. CHANGE IN EMPLOYMENT STATUS
	  	4
	 (a) Termination of Employment
	  	4
	 (b) Leave of Absence
	  	4
	 (c) Death
	  	4
		
	 SECTION 8. PLAN ACCOUNTS AND PURCHASE OF SHARES
	  	5
	 (a) Plan Accounts
	  	5
	 (b) Purchase Price
	  	5
	 (c) Number of Shares Purchased
	  	5
	 (d) Available Shares Insufficient
	  	5
	 (e) Issuance of Stock
	  	5
	 (f) Tax Withholding
	  	5
	 (g) Unused Cash Balances
	  	6
		
	 SECTION 9. LIMITATIONS ON STOCK OWNERSHIP
	  	6
	 (a) Five Percent Limit
	  	6

  

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	 (b) Dollar Limit
	  	6
		
	 SECTION 10. RIGHTS NOT TRANSFERABLE
	  	7
		
	 SECTION 11. NO RIGHTS AS AN EMPLOYEE
	  	7
		
	 SECTION 12. NO RIGHTS AS A STOCKHOLDER
	  	7
		
	 SECTION 13. SECURITIES LAW REQUIREMENTS
	  	7
		
	 SECTION 14. AMENDMENT OR DISCONTINUANCE
	  	7
	 (a) General Rule
	  	7
	 (b) Impact on Purchase Price
	  	8
		
	 SECTION 15. DEFINITIONS
	  	8
	 (a) Accumulation Period
	  	8
	 (b) Board
	  	8
	 (c) Code
	  	8
	 (d) Committee
	  	8
	 (e) Company
	  	8
	 (f) Compensation
	  	8
	 (g) Corporate Reorganization
	  	9
	 (h) Eligible Employee
	  	9
	 (i) Exchange Act
	  	9
	 (j) Fair Market Value
	  	9
	 (k) Offering Period
	  	10
	 (l) Participant
	  	10
	 (m) Participating Company
	  	10
	 (n) Plan
	  	10
	 (o) Plan Account
	  	10
	 (p) Purchase Price
	  	10
	 (q) Stock
	  	10
	 (r) Subsidiary
	  	10
		
	 SECTION 16. EXECUTION
	  	10

  

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 CAPTIVA SOFTWARE CORPORATION 
 (FKA ACTIONPOINT, INC.) 
  
 1998 EMPLOYEE STOCK PURCHASE PLAN 
  
 SECTION 1. PURPOSE OF THE PLAN. 
  
 The Board adopted the Plan effective on March 25, 1998, effective as of July
1, 1998. The Board most recently amended and restated the Plan effective as of July 1, 2002. The purpose of the Plan is to provide Eligible Employees with an opportunity to increase their proprietary interest in the success of the Company by
purchasing Stock from the Company on favorable terms and to pay for such purchases through payroll deductions. The Plan is intended to qualify for favorable tax treatment under section 423 of the Code. 
  
 SECTION 2. ADMINISTRATION OF THE PLAN. 
  
 (a) Committee Composition. The Committee shall administer the Plan.
The Committee shall consist exclusively of one or more directors of the Company, who shall be appointed by the Board. 
  
 (b) Committee Responsibilities. The Committee shall interpret the Plan and make all other policy decisions relating to the operation of the Plan.
The Committee may adopt such rules, guidelines and forms as it deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall be final and binding on all persons. 
  
 SECTION 3. STOCK OFFERED UNDER THE PLAN. 
  
 (a) Authorized Shares. The number of shares of Stock available to all
Participants for purchase under the Plan with respect to any Accumulation Period shall be 150,000 (subject to adjustment pursuant to Subsection (b) below). If fewer than 150,000 shares of Stock are purchased during an Accumulation Period, the unused
shares shall not be available during any subsequent Accumulation Period. On July 1, 2002, the aggregate number of shares of Stock available for purchase during the life of the Plan shall automatically be increased by the number of shares necessary
to cause the number of shares then available for purchase to be restored to 150,000 (subject to adjustment pursuant to Subsection (b) below). On January 1 of each year, commencing with January 1, 2003, the aggregate number of shares of Stock
available for purchase during the life of the Plan shall automatically be increased by the number of shares necessary to cause the number of shares then available for purchase to be restored to 300,000 (subject to adjustment pursuant to Subsection
(b) below). 
  
 (b) Anti-Dilution Adjustments. The number
of shares of Stock available for purchase under the Plan with respect to any Accumulation Period, the aggregate number of shares of Stock available for purchase during the life of the Plan, the 1,000-share limitation described in Section 8(c) and
the price of shares that any Participant has elected to purchase shall be adjusted proportionately for any increase or decrease in the number of outstanding shares of Stock resulting from a subdivision or consolidation of shares or the payment of a
stock dividend, any other increase or decrease in such shares effected without receipt or 

  

 
payment of consideration by the Company, the distribution of the shares of a Subsidiary to the Company’s stockholders, or a similar event. 

 
 (c) Reorganizations. Any other provision of the Plan
notwithstanding, immediately prior to the effective time of a Corporate Reorganization, the Offering Period and Accumulation Period then in progress shall terminate and shares shall be purchased pursuant to Section 8, unless the Plan is continued or
assumed by the surviving corporation or its parent corporation. The Plan shall in no event be construed to restrict in any way the Company’s right to undertake a dissolution, liquidation, merger, consolidation or other reorganization.

  
 SECTION 4. ENROLLMENT AND PARTICIPATION. 
  
 (a) Offering Periods. While the Plan is in effect, two overlapping
Offering Periods shall commence in each calendar year. The Offering Periods shall consist of the 24-month periods commencing on each January 1 and July 1. However, the Committee may determine that the first Offering Period applicable to the Eligible
Employees of a new Participating Company shall commence on any date specified by the Committee, provided that an Offering Period shall in no event be longer than 27 months. 
  
 (b) Accumulation Periods. While the Plan is in effect, two Accumulation Periods shall commence in each calendar year.
The Accumulation Periods shall consist of the six-month periods commencing on each January 1 and July 1. However, the Committee may determine that the first Accumulation Period applicable to the Eligible Employees of a new Participating Company
shall commence on any date specified by the Committee. 
  
 (c)
Enrollment. Any individual who qualifies as an Eligible Employee on the first day of an Offering Period may elect to become a Participant on such day by filing the prescribed enrollment form with the Company. The enrollment form shall be
filed at the prescribed location not later than 10 days prior to such day. 
  
 (d) Duration of Participation. Once enrolled in the Plan, a Participant shall continue to participate in the Plan until he or she: 
  
 (i) Reaches the end of the Accumulation Period in which his or her employee contributions were discontinued
under Section 5(d) or 9(b); 
  
 (ii) Is deemed to
withdraw from the Plan under Section 3(c) above; 
  
 (iii) Withdraws from the Plan under Section 6(a); or 
  
 (iv) Ceases to be an Eligible Employee. 
  
 A
Participant whose employee contributions were discontinued automatically under Section 9(b) shall automatically resume participation at the beginning of the earliest Accumulation Period ending in the next calendar year, if he or she then is an
Eligible Employee. In all other cases, a former Participant may again become a Participant, if he or she then is an Eligible Employee, by following the procedure described in Subsection (c) above. 
  

 2 

 (e) Applicable Offering Period. For purposes of calculating the Purchase Price under Section 8(b),
the applicable Offering Period shall be determined as follows: 
  
 (i) Once a Participant is enrolled in the Plan for an Offering Period, such Offering Period shall continue to apply to him or her until the earliest of (A) the end of such Offering Period, (B) the end of his or her
participation under Subsection (d) above or (C) re-enrollment for a subsequent Offering Period under Paragraph (ii), (iii) or (iv) below. 
  
 (ii) In the event that the Fair Market Value of Stock on the last trading day before the commencement of the Offering Period for which the
Participant is enrolled is higher than on the last trading day before the commencement of any subsequent Offering Period, the Participant shall automatically be re-enrolled for such subsequent Offering Period. 
  
 (iii) If Section 14(b) applies, the Participant shall
automatically be re-enrolled for a new Offering Period. 
  
 (iv) Any other provision of the Plan notwithstanding, the Company (at its sole discretion) may determine prior to the commencement of any new Offering Period that all Participants shall be re-enrolled for such new
Offering Period. 
  
 (v) When a Participant
reaches the end of an Offering Period but his or her participation is to continue, then such Participant shall automatically be re-enrolled for the Offering Period that commences immediately after the end of the prior Offering Period. 
  
 SECTION 5. EMPLOYEE CONTRIBUTIONS. 
  
 (a) Commencement of Payroll Deductions. A Participant may purchase
shares of Stock under the Plan solely by means of payroll deductions. Payroll deductions shall commence as soon as reasonably practicable after the Company has received the prescribed enrollment form. 
  
 (b) Amount of Payroll Deductions. An Eligible Employee shall designate
on the enrollment form the portion of his or her Compensation that he or she elects to have withheld for the purchase of Stock. Such portion shall be a whole percentage of the Eligible Employee’s Compensation, but not less than 1% nor more than
15%.1 
  
 (c) Changing Withholding Rate. If a Participant wishes to change the rate of payroll withholding, he or she may do so by filing a new enrollment
form with the Company at the prescribed location at any time. The new withholding rate shall be effective as soon as reasonably practicable after the Company has received such form. The new withholding rate 
  

	1	The increase from 10% to 15% shall be effective only for participants commencing a new
offering period after October 23, 2003. Participants in a current offering period as of such date shall continue to be subject to the 10% cap until such offering period terminates. 

  

 3 

	 	 
shall be a whole percentage of the Eligible Employee’s Compensation, but not less than 1% nor more than 15%1. 

  
 (d) Discontinuing Payroll Deductions. If a Participant wishes to discontinue employee contributions entirely, he or she may do so by filing a new
enrollment form with the Company at the prescribed location at any time. Payroll withholding shall cease as soon as reasonably practicable after the Company has received such form. (In addition, employee contributions may be discontinued
automatically pursuant to Section 9(b).) A Participant who has discontinued employee contributions may resume such contributions by filing a new enrollment form with the Company at the prescribed location. Payroll withholding shall resume as soon as
reasonably practicable after the Company has received such form. 
  
 (e) Limit on Number of Elections. No Participant shall make more than two elections under Subsection (c) or (d) above during any Accumulation Period. 
  
 SECTION 6. WITHDRAWAL FROM THE PLAN. 
  
 (a) Withdrawal. A Participant may elect to withdraw from the Plan by filing the prescribed form with the Company at the prescribed location at any
time before the last day of an Accumulation Period. As soon as reasonably practicable thereafter, payroll deductions shall cease and the entire amount credited to the Participant’s Plan Account shall be refunded to him or her in cash, without
interest. No partial withdrawals shall be permitted. 
  
 (b)
Re-Enrollment After Withdrawal. A former Participant who has withdrawn from the Plan shall not be a Participant until he or she re-enrolls in the Plan under Section 4(c). Re-enrollment may be effective only at the commencement of an Offering
Period. 
  
 SECTION 7. CHANGE IN EMPLOYMENT STATUS. 
  
 (a) Termination of Employment. Termination of employment as an
Eligible Employee for any reason, including death, shall be treated as an automatic withdrawal from the Plan under Section 6(a). (A transfer from one Participating Company to another shall not be treated as a termination of employment.) 

 
 (b) Leave of Absence. For purposes of the Plan, employment shall
not be deemed to terminate when the Participant goes on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved by the Company in writing. Employment, however, shall be deemed to terminate 90 days after
the Participant goes on a leave, unless a contract or statute guarantees his or her right to return to work. Employment shall be deemed to terminate in any event when the approved leave ends, unless the Participant immediately returns to work.

  
 (c) Death. In the event of the Participant’s
death, the amount credited to his or her Plan Account shall be paid to a beneficiary designated by him or her for this purpose on the prescribed form or, if none, to the Participant’s estate. Such form shall be valid only if it was filed with
the Company at the prescribed location before the Participant’s death. 
  

 4 

 SECTION 8. PLAN ACCOUNTS AND PURCHASE OF SHARES. 
  
 (a) Plan Accounts. The Company shall maintain a Plan Account on its books in the name of each Participant. Whenever
an amount is deducted from the Participant’s Compensation under the Plan, such amount shall be credited to the Participant’s Plan Account. Amounts credited to Plan Accounts shall not be trust funds and may be commingled with the
Company’s general assets and applied to general corporate purposes. No interest shall be credited to Plan Accounts. 
  
 (b) Purchase Price. The Purchase Price for each share of Stock purchased at the close of an Accumulation Period shall be the lower of: 

 
 (i) 85% of the Fair Market Value of such share on the
last trading day before the commencement of the applicable Offering Period (as determined under Section 4(e)); or 
  
 (ii) 85% of the Fair Market Value of such share on the last trading day in such Accumulation Period. 
  
 (c) Number of Shares Purchased. As of the last day of each
Accumulation Period, each Participant shall be deemed to have elected to purchase the number of shares of Stock calculated in accordance with this Subsection (c), unless the Participant has previously elected to withdraw from the Plan in accordance
with Section 6(a). The amount then in the Participant’s Plan Account shall be divided by the Purchase Price, and the number of shares that results shall be purchased from the Company with the funds in the Participant’s Plan Account. The
foregoing notwithstanding, no Participant shall purchase more than 1,000 shares of Stock with respect to any Accumulation Period nor more than the amounts of Stock set forth in Sections 3(a) and 9(b). The Committee may determine with respect to all
Participants that any fractional share, as calculated under this Subsection (c), shall be (i) rounded down to the next lower whole share or (ii) credited as a fractional share. 
  
 (d) Available Shares Insufficient. In the event that the aggregate number of shares that all Participants elect to
purchase during an Accumulation Period exceeds the maximum number of shares remaining available for issuance under Section 3, then the number of shares to which each Participant is entitled shall be determined by multiplying the number of shares
available for issuance by a fraction. The numerator of such fraction is the number of shares that such Participant has elected to purchase, and the denominator of such fraction is the number of shares that all Participants have elected to purchase.

  
 (e) Issuance of Stock. Certificates representing the
shares of Stock purchased by a Participant under the Plan shall be issued to him or her as soon as reasonably practicable after the close of the applicable Accumulation Period, except that the Committee may determine that such shares shall be held
for each Participant’s benefit by a broker designated by the Committee (unless the Participant has elected that certificates be issued to him or her). Shares may be registered in the name of the Participant or jointly in the name of the
Participant and his or her spouse as joint tenants with right of survivorship or as community property. 
  
 (f) Tax Withholding. To the extent required by applicable federal, state, local or foreign law, a Participant shall make arrangements satisfactory
to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The 

  

 5 

 
Company shall not be required to issue any shares of Stock under the Plan until such obligations are satisfied. 
  
 (g) Unused Cash Balances. An amount remaining in the
Participant’s Plan Account that represents the Purchase Price for any fractional share shall be carried over in the Participant’s Plan Account to the next Accumulation Period. Any amount remaining in the Participant’s Plan Account
that represents the Purchase Price for whole shares that could not be purchased by reason of Subsection (c) above, Section 3 or Section 9(b) shall be refunded to the Participant in cash, without interest. 
  
 SECTION 9. LIMITATIONS ON STOCK OWNERSHIP. 
  
 (a) Five Percent Limit. Any other provision of the Plan
notwithstanding, no Participant shall be granted a right to purchase Stock under the Plan if such Participant, immediately after his or her election to purchase such Stock, would own stock possessing more than 5% of the total combined voting power
or value of all classes of stock of the Company or any parent or Subsidiary of the Company. For purposes of this Subsection (a), the following rules shall apply: 
  
 (i) Ownership of stock shall be determined after applying the attribution rules of section 424(d) of the
Code; 
  
 (ii) Each Participant shall be deemed
to own any stock that he or she has a right or option to purchase under this or any other plan; and 
  
 (iii) Each Participant shall be deemed to have the right to purchase 1,000 shares of Stock under this Plan with respect to each
Accumulation Period. 
  
 (b) Dollar Limit. Any other
provision of the Plan notwithstanding, no Participant shall purchase Stock with a Fair Market Value in excess of the following limit: 
  
 (i) In the case of Stock purchased during an Offering Period that commenced in the current calendar year, the limit shall be equal to (A)
$25,000 minus (B) the Fair Market Value of the Stock that the Participant previously purchased in the current calendar year (under this Plan and all other employee stock purchase plans of the Company or any parent or Subsidiary of the Company).

  
 (ii) In the case of Stock purchased during an
Offering Period that commenced in the immediately preceding calendar year, the limit shall be equal to (A) $50,000 minus (B) the Fair Market Value of the Stock that the Participant previously purchased (under this Plan and all other employee stock
purchase plans of the Company or any parent or Subsidiary of the Company) in the current calendar year and in the immediately preceding calendar year. 
  
 (iii) In the case of Stock purchased during an Offering Period that commenced in the second preceding calendar year, the limit shall be
equal to (A) $75,000 minus (B) the Fair Market Value of the Stock that the Participant previously purchased (under this Plan and all other employee stock purchase 

  

 6 

 
plans of the Company or any parent or Subsidiary of the Company) in the current calendar year and in the two preceding calendar years. 
  
 For purposes of this Subsection (b), the Fair Market Value of Stock shall be determined in
each case as of the beginning of the Offering Period in which such Stock is purchased. Employee stock purchase plans not described in section 423 of the Code shall be disregarded. If a Participant is precluded by this Subsection (b) from purchasing
additional Stock under the Plan, then his or her employee contributions shall automatically be discontinued and shall automatically resume at the beginning of the earliest Accumulation Period ending in the next calendar year (if he or she then is an
Eligible Employee). 
  
 SECTION 10. RIGHTS NOT TRANSFERABLE. 
  
 The rights of any Participant under the Plan, or any Participant’s
interest in any Stock or moneys to which he or she may be entitled under the Plan, shall not be transferable by voluntary or involuntary assignment or by operation of law, or in any other manner other than by beneficiary designation or the laws of
descent and distribution. If a Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights or interest under the Plan, other than by beneficiary designation or the laws of descent and distribution, then such act
shall be treated as an election by the Participant to withdraw from the Plan under Section 6(a). 
  
 SECTION 11. NO RIGHTS AS AN EMPLOYEE. 
  
 Nothing in the Plan or in any right granted under the Plan shall confer upon the Participant any right to continue in the employ of a Participating Company for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Participating Companies or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her employment at any time and for any reason, with or without cause. 

 
 SECTION 12. NO RIGHTS AS A STOCKHOLDER. 
  
 A Participant shall have no rights as a stockholder with respect to any
shares of Stock that he or she may have a right to purchase under the Plan until such shares have been purchased on the last day of the applicable Accumulation Period. 
  
 SECTION 13. SECURITIES LAW REQUIREMENTS. 
  
 Shares of Stock shall not be issued under the Plan unless the issuance and delivery of such shares comply with (or are exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market
on which the Company’s securities may then be traded. 
  
 SECTION 14.
AMENDMENT OR DISCONTINUANCE. 
  
 (a) General Rule. The
Board shall have the right to amend, suspend or terminate the Plan at any time and without notice. Except as provided in Section 3, any increase in the aggregate number of shares of Stock that may be issued under the Plan shall 

  

 7 

 
be subject to the approval of the Company’s stockholders. In addition, any other amendment of the Plan shall be subject to the approval of the
Company’s stockholders to the extent required by any applicable law or regulation. The Plan shall terminate automatically on December 31, 2021, unless (a) the Plan is extended by the Board and (b) the extension is approved within 12 months by a
vote of the stockholders of the Company. 
  
 (b) Impact on
Purchase Price. This Subsection (b) shall apply in the event that (i) the Company’s stockholders during an Accumulation Period approve an increase in the number of shares of Stock that may be issued under Section 3 and (ii) the aggregate
number of shares to be purchased at the close of such Accumulation Period exceeds the number of shares that remained available under Section 3 before such increase. In such event, the Purchase Price for each share of Stock purchased at the close of
such Accumulation Period shall be the lower of: 
  
 (i) The higher of (A) 85% of the Fair Market Value of such share on the last trading day before the commencement of the applicable Offering Period or (B) 85% of the Fair Market Value of such share on the last trading day before the date
when the Company’s stockholders approve such increase; or 
  
 (ii) 85% of the Fair Market Value of such share on the last trading day in such Accumulation Period. 
  
 Immediately after the close of such Accumulation Period, a new Offering Period shall commence for all Participants. 
  
 SECTION 15. DEFINITIONS. 
  
 (a) “Accumulation Period” means a period during which
contributions may be made toward the purchase of Stock under the Plan, as determined pursuant to Section 4(b). 
  
 (b) “Board” means the Board of Directors of the Company, as constituted from time to time. 
  
 (c) “Code” means the Internal Revenue Code of 1986, as
amended. 
  
 (d) “Committee” means a committee of
the Board, as described in Section 2. 
  
 (e)
“Company” means Captiva Software Corporation (formerly known as ActionPoint, Inc.), a Delaware corporation. 
  
 (f) “Compensation” means (i) the base salary or wage paid in cash to a Participant by a Participating Company plus (ii) any pre-tax
contributions made by the Participant under section 401(k) or 125 of the Code. “Compensation” shall exclude bonuses, incentive compensation, commissions, overtime pay, shift premiums, all non-cash items, moving or relocation allowances,
cost-of-living equalization payments, car allowances, tuition reimbursements, imputed income attributable to cars or life insurance, severance pay, fringe benefits, contributions or benefits received under employee benefit plans, income attributable
to 

  

 8 

 
the exercise of stock options, and similar items. The Committee shall determine whether a particular item is included in Compensation. 
  
 (g) “Corporate Reorganization” means: 
  
 (i) The consummation of a merger or consolidation of the
Company with or into another entity or any other corporate reorganization; or 
  
 (ii) The sale, transfer or other disposition of all or substantially all of the Company’s assets or the complete liquidation or dissolution of the Company. 
  
 (h) “Eligible Employee” means any employee of a
Participating Company who meets both of the following requirements: 
  
 (i) His or her customary employment is for more than five months per calendar year and for more than 20 hours per week; and 
  
 (ii) He or she has been an employee of a Participating Company for not less than 30 consecutive days, or such other period as the
Committee may determine before the beginning of the applicable Offering Period. 
  
 The foregoing notwithstanding, an individual shall not be considered an Eligible Employee if his or her participation in the Plan is prohibited by the law of any country that has jurisdiction over him or her or if he or she is subject to a
collective bargaining agreement that does not provide for participation in the Plan. 
  
 (i) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (j) “Fair Market Value” means the market price of Stock, determined by the Committee as follows: 
  
 (i) If the Stock was traded on The Nasdaq National Market or
The Nasdaq SmallCap Market on the date in question, then the Fair Market Value shall be equal to the last-transaction price quoted for such date by such Market; 
  
 (ii) If the Stock was traded on a stock exchange on the date in question, then the Fair Market Value shall
be equal to the closing price reported by the applicable composite transactions report for such date; or 
  
 (iii) If none of the foregoing provisions is applicable, then the Committee shall determine the Fair Market Value in good faith on such
basis as it deems appropriate. 
  
 Whenever possible, the determination of Fair
Market Value by the Committee shall be based on the prices reported in The Wall Street Journal or as reported directly to the Company by Nasdaq or a stock exchange. Such determination shall be conclusive and binding on all persons.

  

 9 

 (k) “Offering Period” means a period with respect to which the right to purchase Stock
may be granted under the Plan, as determined pursuant to Section 4(a). 
  
 (l) “Participant” means an Eligible Employee who participates in the Plan, as provided in Section 4. 
  
 (m) “Participating Company” means (i) the Company and (ii) each present or future Subsidiary designated by the Committee as a
Participating Company. 
  
 (n) “Plan” means this
Captiva Software Corporation (fka ActionPoint, Inc.) 1998 Employee Stock Purchase Plan, as amended from time to time. 
  
 (o) “Plan Account” means the account established for each Participant pursuant to Section 8(a). 
  
 (p) “Purchase Price” means the price at which Participants
may purchase Stock under the Plan, as determined pursuant to Section 8(b). 
  
 (q) “Stock” means the Common Stock of the Company. 
  
 (r) “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each
of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 SECTION 16. EXECUTION. 
  
 To record the amendment and restatement of the Plan by the Board effective October 23, 2003, the Company has caused its duly
authorized officer to execute this document in the name of the Company. 
  

			
	 CAPTIVA SOFTWARE CORPORATION
 (FKA ACTIONPOINT, INC.) 

		
	By:	 	/s/    Bradford Weller
	 	 	

	 	 	 Bradford Weller, Secretary

  

 102003 New Executive Recuitment Stock Option Plan

 Exhibit 10.5 
  
 CAPTIVA SOFTWARE CORPORATION 
  
 2003 NEW EXECUTIVE RECRUITMENT STOCK OPTION PLAN

  
 ADOPTED: OCTOBER 23, 2003

  
 1. PURPOSES. 
  
 (a) General Purpose. The Company, by means of the Plan, seeks
to retain the services of persons not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to the individual’s entering into employment with the Company within
the meaning of Rule 4350(i)(1)(A) of the NASD Marketplace Rules, and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 
  
 (b) Eligible Stock Award Recipients. The persons eligible to receive Stock Awards are the Employees of the
Company and its Affiliates hired as managers of the Company (director level or higher). 
  
 (c) Available Stock Awards. The purpose of the Plan is to provide a means by which eligible recipients of Stock Awards may be given an opportunity to benefit from increases in value of the Common Stock
through the granting of the following Stock Awards: (i) Options, (ii) Restricted Stock Awards, (iii) Stock Appreciation Rights (iv) Phantom Stock Awards and (v) Other Stock Awards. 
  
 2. DEFINITIONS. 
  
 (a) “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing,
as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 
  
 (b) “Board” means the Board of Directors of the Company. 
  
 (c) “Capitalization Adjustment” has the meaning ascribed to that term in Section 11(a). 
  
 (d) “Cause” means, with respect to a
particular Participant (i) a felony conviction of such Participant; (ii) the commission by such Participant of an act of fraud or embezzlement against the Company or an Affiliate; (iii) such Participant’s willful misconduct or gross negligence
materially detrimental to the Company or an Affiliate; (iv) such Participant’s continued failure to implement reasonable requests or directions received in the course of his service as an Employee; (v) such Participant’s wrongful
dissemination or use of confidential or proprietary information; or (vi) the intentional and habitual neglect by such Participant of his or her duties to the Company or an Affiliate. 
  
 (e) “Change in Control” means or occurs upon
(i) a sale or other disposition of all or substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving entity and in which the stockholders of the Company immediately prior to such
consolidation or merger Own less than 50% of the surviving entity’s voting power immediately after the transaction; (iii) a reverse merger in which the Company is the surviving entity but the shares of Common Stock outstanding immediately
preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise, and in which the stockholders of the Company immediately prior to such reverse 

  

 
merger Own less than 50% of the Company’s voting power immediately after the transaction; and (iv) any Exchange Act Person becoming the Owner, directly
or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. 

 
 (f) “Code” means the Internal Revenue Code
of 1986, as amended. 
  
 (g)
“Committee” means a committee of one or more members of the Board appointed by the Board in accordance with Section 3(c). 
  
 (h) “Common Stock” means the common stock of the Company, or any security of the Company issued in substitution, exchange
or lieu thereof. 
  
 (i) “Company”
means Captiva Software Corporation, a Delaware corporation, or any successor corporation. 
  
 (j) “Consultant” means any person, including an advisor, (i) engaged by the Company or an Affiliate to render consulting or advisory services and who is compensated for such services or
(ii) serving as a member of the Board of Directors of an Affiliate and who is compensated for such services. However, the term “Consultant” shall not include Directors who are not compensated by the Company for their services as Directors,
and the payment of a director’s fee by the Company for services as a Director shall not cause a Director to be considered a “Consultant” for purposes of the Plan. 
  
 (k) “Continuous Service” means that the Participant’s service with the Company or an
Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the
entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service. For
example, a change in status from an Employee of the Company to a Consultant of an Affiliate or a Director shall not constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party’s sole
discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. Notwithstanding the foregoing, an
approved leave of absence shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of absence policy or in the written terms of the Participant’s leave of
absence. 
  
 (l) “Corporate
Transaction” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events: 
  
 (i) a sale or other disposition of all or substantially all, as determined by the Board in its discretion, of the consolidated
assets of the Company and its Subsidiaries; 
  
 (ii) a sale or other disposition of at least ninety percent (90%) of the outstanding securities of the Company; 
  
 (iii) a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or 

 

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 (iv) a merger, consolidation or similar transaction following which the Company is
the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property,
whether in the form of securities, cash or otherwise. 
  
 (m)
“Director” means a member of the Board of Directors of the Company. 
  
 (n) “Disability” means, with respect to a Participant, such Participant’s permanent and total disability within the
meaning of the Company’s long-term disability plan, as it may be amended from time to time, or, if there is no such plan, as determined by the Committee. 
  

(o) “Employee” means any person employed by the Company or an Affiliate. Service as a Director or payment of a
director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate. Subject to the exclusions set forth below, the term “Employee” shall include only an individual
who was hired (and advised that he or she was being hired) directly by the Company or an Affiliate as a regular employee and who performs regular employment services directly for the Company or an Affiliate. Exclusions: The term “Employee”
as used in the Plan shall not include an individual who works, or who was hired to work, or who was advised that he or she works: (1) as an independent contractor or an employee of an independent contractor; or (2) as a temporary employee,
regardless of the length of time that he or she works at the Company or an Affiliate; or (3) through a temporary employment agency, job placement agency, or other third party; or (4) as part of an employee leasing arrangement between the Company or
an Affiliate and any third party. For the purposes of the Plan, the exclusions described above shall remain in effect even if the described individual could otherwise be construed as an employee under any applicable common law or is subsequently
determined under applicable laws to be an employee. 
  
 (p)
“Entity” means a corporation, partnership or other entity. 
  
 (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (r) “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or
14(d) of the Exchange Act), except that “Exchange Act Person” shall not include (A) the Company or any Subsidiary of the Company, (B) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, or (D) an Entity Owned, directly or
indirectly, by the shareowners of the Company in substantially the same proportions as their Ownership of stock of the Company. 
  
 (s) “Fair Market Value” means, as of any date, the value of the Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established
stock exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the relevant date or, if no shares are traded on such date, then on the last market trading day prior to the relevant date. 
  

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 (ii) In the absence of such markets for the Common Stock, the Fair Market Value
shall be determined in good faith by the Board. 
  
 (t)
“Non-Employee Director”means a Director who either (i) is not a current Employee or Officer of the Company or its parent or a subsidiary, does not receive compensation (directly or indirectly) from the Company or
its parent or a subsidiary for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the
Securities Act (“Regulation S-K”)), does not possess an interest in any other transaction as to which disclosure would be required under Item 404(a) of Regulation S-K and is not engaged in a business relationship as to which disclosure
would be required under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3. 
  
 (u) “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. 
  
 (v)
“Option” means a nonstatutory stock option granted pursuant to the Plan that is not intended to qualify as an incentive stock option under Section 422 of the Code and the regulations promulgated thereunder. 
  
 (w) “Option Agreement” means an agreement
between the Company and an Optionholder evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 
  
 (x) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option. 
  
 (y) “Other Stock Award” means an award based in whole or in part by reference to the Common Stock which is granted pursuant to the terms and conditions of Section 7(d). 
  
 (z) “Other Stock Award Agreement” means an
agreement between the Company and a holder of an Other Stock Award evidencing the terms and conditions of an individual Other Stock Award grant. Each Other Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

 
 (aa) “Own,” “Owned,” “Owner,”
“Ownership” A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or
indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities. 
  
 (bb) “Participant” means a person to whom a
Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award. 
  
 (cc) “Phantom Stock Award” means a right to receive shares of Common Stock which is granted pursuant to the terms and
conditions of Section 7(b). 
  
 (dd) “Phantom
Stock Award Agreement” means an agreement between the Company and a holder of a Phantom Stock Award evidencing the terms and conditions of an individual Phantom Stock Award grant. Each Phantom Stock Award Agreement shall be subject to
the terms and conditions of the Plan. 
  

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 (ee) “Restricted Stock Award” means an award of shares of Common Stock
which is granted pursuant to the terms and conditions of Section 7(a). 
  
 (ff) “Restricted Stock Award Agreement” means an agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of an individual Restricted Stock Award grant. Each
Restricted Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
  
 (gg) “Plan” means this Captiva Software Corporation 2003 New Executive Recruitment Stock Option Plan. 
  
 (hh) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to
Rule 16b-3, as in effect from time to time. 
  
 (ii)
“Securities Act” means the Securities Act of 1933, as amended. 
  
 (jj) “Stock Appreciation Right” means a right to receive the appreciation of Common Stock which is granted pursuant to the terms and conditions of Section 7(c). 
  
 (kk) “Stock Appreciation Right Agreement”
means an agreement between the Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of an individual Stock Appreciation Right grant. Each Stock Appreciation Right Agreement shall be subject to the terms and
conditions of the Plan. 
  
 (ll) “Stock
Award” means any right granted under the Plan, including an Option, a Restricted Stock Award, Phantom Stock, a Stock Appreciation Right and an Other Stock Award. 
  
 (mm) “Stock Award Agreement” means an agreement between the Company and a holder of a Stock
Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
  
 (nn) “Subsidiary” means, with respect to the Company, (i) any corporation of which more than
fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall
have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership in which the Company has a direct or indirect interest (whether in the form of
voting or participation in profits or capital contribution) of more than fifty percent (50%). 
  
 3. ADMINISTRATION. 
  
 (a) Administration by Board. The Board shall administer the Plan unless and until the Board delegates administration to a committee, as provided in Section 3(c). 
  
 (b) Powers of Board. The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan: 
  
 (i) Subject to Section 5 herein, to determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and how each Stock Award shall be granted; what type or
combination of types of Stock Award shall be granted; the 

  

 - 5 - 

 
provisions of each Stock Award granted (which need not be identical), including the time or times when a person shall be permitted to receive Common Stock
pursuant to a Stock Award; and the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person. 
  
 (ii) To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations
for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective. 
  
 (iii) To amend the
Plan or a Stock Award as provided in Section 12. 
  
 (iv) To terminate or suspend the Plan as provided in Section 13. 
  
 (v) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best
interests of the Company and that are not in conflict with the provisions of the Plan. 
  
 (vi) To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by employees who
are foreign nationals or employed outside the United States. 
  
 (c) DELEGATION TO COMMITTEE. 
  
 (i) General. The Board may delegate administration of the Plan to a Committee or Committees of one or more members of the Board,
and the term “Committee” shall apply to any person or persons to whom such authority has been delegated. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the
Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the
Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the
administration of the Plan. 
  
 (ii) Rule
16b-3 Compliance. In the discretion of the Board, the Committee may consist solely of two or more Non-Employee Directors, in accordance with Rule 16b-3. 
  
 (d) Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith shall not be subject to
review by any person and shall be final, binding and conclusive on all persons. 
  
 4. SHARES SUBJECT TO THE PLAN. 
  
 (a) Share Reserve. Subject to the provisions of Section 11(a) relating to Capitalization Adjustments, the shares of Common Stock that may be issued
pursuant to Stock Awards shall not exceed in the aggregate five hundred thousand (500,000) shares of Common Stock. 
  
 (b) Reversion of Shares to the Share Reserve. If any Stock Award shall for any reason expire or otherwise terminate, in whole or in part,
without having been exercised in full, or if any shares of Common Stock issued to a Participant pursuant to a Stock Award are 

  

 - 6 - 

 
forfeited back to or repurchased by the Company, including, but not limited to, any repurchase or forfeiture caused by the failure to meet a contingency or
condition required for the vesting of such shares, then the shares of Common Stock not acquired under such Stock Award, or forfeited back to or repurchased by the Company, shall revert to and again become available for issuance under the Plan. If
any shares subject to a Stock Award are not delivered to a Participant because such shares are withheld for taxes or the Stock Award is exercised through a reduction of shares subject to the Stock Award (i.e., “net exercised”), then the
shares that are not delivered to the Participant as a result thereof shall revert to and again become available for issuance under the Plan. If the exercise price of any Stock Award is satisfied by tendering shares of Common Stock held by the
Participant (either by actual delivery or attestation), then the number of shares so tendered shall revert to and again become available for issuance under the Plan. 
  
 (c) Source of Shares. The shares of Common Stock subject to the Plan may be unissued shares or reacquired shares,
bought on the market or otherwise. 
  
 5. ELIGIBILITY.

  
 Persons eligible for Stock Awards shall consist of
Employees whose potential contribution, in the judgment of the Committee, will benefit the future success of the Company and/or an Affiliate. Stock Awards may be granted only to persons not previously an Employee or Director of the Company, or
following a bona fide period of non-employment, as an inducement material to the individual’s entering into employment with the Company within the meaning of Rule 4350(i)(1)(A) of the NASD Marketplace Rules. In addition, notwithstanding
any other provision of the Plan to the contrary, all Stock Awards must be granted either by a majority of the Company’s independent directors or a committee comprised of a majority of independent directors. 
  
 6. OPTION PROVISIONS. 
  
 Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. All Options shall be designated as nonstatutory stock options at the time of grant. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of
provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 
  
 (a) Term. The Board shall determine the term of an Option. 
  

(b) Exercise Price of an Option. The Board, in its discretion, shall determine the exercise price of each Option. 
  
 (c) Consideration. The purchase price of Common Stock acquired
pursuant to an Option shall be paid, to the extent permitted by applicable law, either (i) in cash at the time the Option is exercised or (ii) at the discretion of the Board (1) by delivery to the Company of other Common Stock, (2) by a “net
exercise” of the Option (as further described below) or (3) in any other form of legal consideration that may be acceptable to the Board. Unless otherwise specifically provided in the Option, the purchase price of Common Stock acquired pursuant
to an Option that is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the Company that have been held for more than six (6) months (or such
longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). 
  

 - 7 - 

 In the case of a “net exercise” of an Option, the Company will not require a payment of the
exercise price of the Option from the Participant but will reduce the number of shares of Common Stock issued upon the exercise by the largest number of whole shares that has a Fair Market Value that does not exceed the aggregate exercise price.
With respect to any remaining balance of the aggregate exercise price, the Company shall accept a cash payment from the Participant. The shares of Common Stock so used to pay the exercise price of an Option under a “net exercise” will be
considered to have resulted from the exercise of the Option, and accordingly, the Option will not again be exercisable with respect to such shares, the shares actually delivered to the Participant, and any shares withheld for purposes of tax
withholding. 
  
 (d) Transferability of an Option. An
Option shall be transferable to the extent provided in the Option Agreement. If the Option does not provide for transferability, then the Option shall not be transferable except by (a) will, (b) the laws of descent and distribution, or (c) upon
dissolution of the Optionholder’s marriage pursuant to a domestic relations order. Also, during the Optionholder’s lifetime, only the Optionholder is entitled to exercise his or her Option. Notwithstanding the foregoing, by delivering
written notice to the Company, in a form satisfactory to the Company, an Optionholder may designate a third party who, in the event of such Optionholder’s death, shall thereafter be entitled to exercise the Option. 
  
 (e) Vesting Generally. The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised
(which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this Section 6(d) are subject to any Option provisions governing the minimum number of
shares of Common Stock as to which an Option may be exercised. 
  
 (f) Termination of Continuous Service. In the event that an Optionholder’s Continuous Service terminates (other than for Cause or upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option
(to the extent that the Optionholder was entitled to exercise such Option as of the date of termination) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder’s
Continuous Service (or such longer or shorter period specified in the Option Agreement) or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her
Option within the time specified in the Option Agreement, the Option shall terminate. 
  
 (g) Extension of Termination Date. An Optionholder’s Option Agreement may also provide that if the exercise of the Option following the termination of the Optionholder’s Continuous Service (other than
for Cause or upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall
terminate on the earlier of (i) the expiration of the term of the Option set forth in the Option Agreement or (ii) the expiration of a period of three (3) months after the termination of the Optionholder’s Continuous Service during which the
exercise of the Option would not be in violation of such registration requirements. 
  
 (h) Disability of Optionholder. In the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the
extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of (i) the date twelve 

  

 - 8 - 

 
(12) months following such termination (or such longer or shorter period specified in the Option Agreement) or (ii) the expiration of the term of the Option
as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate. 
  
 (i) Death of Optionholder. In the event that (i) an Optionholder’s Continuous Service terminates as a result of
the Optionholder’s death or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be
exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated
to exercise the option upon the Optionholder’s death pursuant to Section 6(c), but only within the period ending on the earlier of (1) the date thirty-six (36) months following the date of death (or such longer or shorter period specified in
the Option Agreement) or (2) the expiration of the term of such Option as set forth in the Option Agreement. If, after death, the Option is not exercised within the time specified herein, the Option shall terminate. 
  
 (j) Termination for Cause. In the event an Optionholder’s
Continuous Service is terminated for Cause, the Option shall terminate upon the termination date of such Optionholder’s Continuous Service and the Optionholder is prohibited from exercising his or her Option from and after the time of such
termination. 
  
 (k) Early Exercise. The Option may, but
need not, include a provision whereby the Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the
full vesting of the Option. Any unvested shares of Common Stock so purchased may be subject to a repurchase option in favor of the Company or to any other restriction the Board determines to be appropriate. The Company will not exercise its
repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes) have elapsed following exercise of the Option unless the Board otherwise specifically
provides in the Option. 
  
 7. PROVISIONS OF
STOCK AWARDS OTHER THAN OPTIONS. 
  
 (a) Restricted Stock Awards. Each Restricted Stock Award agreement shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. At the Board’s election, shares of Common Stock may be (i) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse; or (ii) evidenced by a
certificate, which certificate shall be held in such form and manner as determined by the Board. The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock
Award Agreements need not be identical, provided, however, that each Restricted Stock Award Agreement shall include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the
following provisions: 
  
 (i) Purchase
Price. At the time of the grant of a Restricted Stock Award, the Board will determine the price to be paid by the Participant for each share subject to the Restricted Stock Award. To the extent required by applicable law, the price to be paid by
the Participant for each share of the Restricted Stock Award will not be less than the par value of a share of Common Stock. A Restricted Stock Award may be awarded as a stock bonus (i.e., with no cash purchase price to be paid) to the extent
permissible under applicable law. 
  

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 (ii) Consideration. At the time of the grant of a Restricted Stock Award, the
Board will determine the consideration permissible for the payment of the purchase price of the Restricted Stock Award. The purchase price of Common Stock acquired pursuant to the Restricted Stock Award shall be paid either: (i) in cash at the time
of purchase; (ii) by services rendered or to be rendered to the Company; or (iii) in any other form of legal consideration that may be acceptable to the Board in its discretion. 
  
 (iii) Vesting. Shares of Common Stock acquired under a Restricted Stock Award may, but need not, be
subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 
  
 (iv) Termination of Participant’s Continuous Service. In the event that a Participant’s Continuous Service terminates,
the Company shall have the right, but not the obligation, to repurchase or otherwise reacquire for no consideration any or all of the shares of Common Stock held by the Participant that have not vested as of the date of termination under the terms
of the Restricted Stock Award Agreement. At the Board’s election, the repurchase right may be at the lower of: (i) the Fair Market Value on the relevant date; or (ii) the Participant’s original cost. The Company will not exercise its
repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes) have elapsed following the purchase of the restricted stock unless otherwise
determined by the Board or provided in the Restricted Stock Award Agreement. 
  
 (v) Transferability. Rights to purchase or receive shares of Common Stock granted under a Restricted Stock Award shall be transferable by the Participant only upon such terms and conditions as are set forth in
the Restricted Stock Award Agreement, as the Board shall determine in its discretion, and so long as Common Stock awarded under the Restricted Stock Award remains subject to the terms of the Restricted Stock Award Agreement. 
  
 (b) Phantom Stock. Each Phantom Stock Award Agreement shall be in such
form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of the Phantom Stock agreements may change from time to time, and the terms and conditions of separate Phantom Stock agreements need not
be identical, provided, however, that each Phantom Stock agreement shall include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

 
 (i) Consideration. At the time of grant of a
Phantom Stock Award, the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Phantom Stock Award. To the extent required by applicable law, the consideration to be
paid by the Participant for each share of Common Stock subject to a Phantom Stock Award will not be less than the par value of a share of Common Stock. The consideration may be paid in any form permitted under applicable law. 
  
 (ii) Vesting. At the time of the grant of a Phantom
Stock Award, the Board may impose such restrictions or conditions to the vesting of the Phantom Stock Award as it, in its absolute discretion, deems appropriate. 
  
 (iii) Additional Restrictions. At the time of the grant of Phantom Stock, the Board may impose such
restrictions or conditions that delay the delivery of the consideration after its vesting as the Board, in its absolute discretion, deems appropriate, with such terms to be contained in the Phantom Stock agreement. 
  

 - 10 - 

 (iv) Payment. Phantom Stock Awards may be settled in Common Stock or in
cash or any combination of the two, or in any other form of consideration as determined by the Board and contained in the Phantom Stock Award Agreement. 
  
 (v) Dividend Equivalents. Dividend equivalents may be credited in respect of shares covered by a Phantom Stock Award, as determined
by the Board and contained in the Phantom Stock Award Agreement. At the discretion of the Board, such dividend equivalents may be converted into additional shares covered by the Phantom Stock Award in such manner as determined by the Board. Any
additional shares covered by the Phantom Stock Award credited by reason of such dividend equivalents will be subject to all the terms and conditions of the underlying Phantom Stock Award Agreement to which they relate. 
  
 (vi) Termination of Participant’s Continuous
Service. Except as otherwise provided in the applicable Phantom Stock Award Agreement, such portion of the Phantom Stock Award that has not vested will be forfeited upon the Participant’s termination of service for any reason. 

 
 (c) Stock Appreciation Rights. Each Stock Appreciation Right
Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of Stock Appreciation Right Agreements may change from time to time, and the terms and conditions of separate
Stock Appreciation Right Agreements need not be identical, but each Stock Appreciation Right Agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following
provisions:  
  
 (i) Strike Price and
Calculation of Appreciation. Each Stock Appreciation Right will be denominated in share of Common Stock equivalents. The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than an amount equal to
the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right) of a number of shares of Common Stock equal to the number of share of Common Stock equivalents in which the Participant is vested under
such Stock Appreciation Right and with respect to which the Participant is exercising the Stock Appreciation Right on such date, over (B) an amount that will be determined by the Committee at the time of grant of the Stock Appreciation Right.

  
 (ii) Vesting. At the time of the grant
of a Stock Appreciation Right, the Board may impose such restrictions or conditions to the vesting of such Stock Appreciate Right as it, in its absolute discretion, deems appropriate. 
  
 (iii) Exercise. To exercise any outstanding Stock Appreciation Right, the Participant must provide
notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 
  
 (iv) Payment. A Stock Appreciation Right may be paid in Common Stock or in cash or any combination of the two, or in any other form
of consideration as determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 
  
 (v) Termination of Continuous Service. In the event that a Participant’s Continuous Service terminates, the Participant may
exercise his or her Stock Appreciation Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination) but only within such period of time ending on the earlier of (i) the 

  

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date three (3) months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the Stock
Appreciation Right Agreement) or (ii) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement. If, after termination, the Participant does not exercise his or her Stock Appreciation Right
within the time specified in the Stock Appreciation Right Agreement, the Stock Appreciation Right shall terminate. 
  
 (d) Other Stock Awards. Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Common Stock may be
granted either alone or in addition to Stock Awards provided for under Section 6 and the preceding provisions of this Section 7. Subject to the provisions of the Plan, the Board shall have sole and complete authority to determine the persons to whom
and the time or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Awards and all other terms and conditions of such Awards. 
  
 8. SECURITIES LAW COMPLIANCE. 

 
 The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the
Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or
agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such
Stock Awards unless and until such authority is obtained. 
  
 9.
USE OF PROCEEDS FROM STOCK. 
  
 Proceeds from the sale of Common Stock pursuant to Stock Awards shall constitute general funds of the Company. 
  
 10. MISCELLANEOUS. 
  
 (a) Acceleration of Exercisability and Vesting. The Board shall have
the power to accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at
which it may first be exercised or the time during which it will vest. 
  
 (b) Shareowner Rights. No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award unless and until such Participant has
satisfied all requirements for exercise of the Stock Award pursuant to its terms. 
  
 (c) No Employment or other Service Rights. Nothing in the Plan or any instrument executed or Stock Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or
an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service
of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an 

  

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Affiliate or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the
state in which the Company or the Affiliate is incorporated, as the case may be. 
  
 (d) Investment Assurances. The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to
the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he
or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring
Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and any assurances given pursuant to such
requirements, shall be inoperative if (1) the issuance of the shares of Common Stock upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the
Securities Act or (2) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel
to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the
Common Stock. 
  
 (e) Withholding Obligations. To the
extent provided by the terms of a Stock Award Agreement, the Participant may, with the approval of the Committee, satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under a Stock
Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to
withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Stock Award; provided, however, that no shares of Common Stock are
withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lesser amount as may be necessary to avoid variable award accounting); or (iii) delivering to the Company owned and unencumbered shares of Common
Stock. 
  
 11. ADJUSTMENTS UPON
CHANGES IN STOCK. 
  
 (a) Capitalization Adjustments. If any change is made in, or other event occurs with respect to, the Common Stock subject to the Plan or subject to any Stock Award without the receipt of consideration by the Company (through merger,
consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction
not involving the receipt of consideration by the Company (each a “Capitalization Adjustment”), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject to the Plan pursuant to Sections 4(a) and
4(b) and the maximum number of securities subject to award to any person pursuant to Section 5(c), and the outstanding Stock Awards will be appropriately adjusted in the class(es) and number of securities and price per share of Common Stock subject
to such outstanding Stock Awards. The Board shall make such adjustments, and its determination shall be final, binding and 

  

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conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction “without receipt of consideration”
by the Company.) 
  
 (b) Dissolution or Liquidation.
In the event of a dissolution or liquidation of the Company, then all outstanding Stock Awards shall terminate immediately prior to the completion of such dissolution or liquidation. 
  
 (c) Corporate Transaction. In the event of a Corporate Transaction, any surviving corporation or acquiring
corporation may assume or continue any or all Stock Awards outstanding under the Plan or may substitute similar stock awards for Stock Awards outstanding under the Plan (it being understood that similar stock awards include, but are not limited to,
awards to acquire the same consideration paid to the shareowners or the Company, as the case may be, pursuant to the Corporate Transaction), and any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to
Stock Awards may be assigned by the Company to the successor of the Company (or the successor’s parent company), if any, in connection with such Corporate Transaction. In the event that any surviving corporation or acquiring corporation does
not assume or continue all such outstanding Stock Awards or substitute similar stock awards for all such outstanding Stock Awards, then with respect to Stock Awards that have been not assumed, continued or substituted and that are held by
Participants whose Continuous Service has not terminated prior to the effective time of the Corporate Transaction, the vesting of such Stock Awards (and, if applicable, the time at which such Stock Awards may be exercised) shall (contingent upon the
effectiveness of the Corporate Transaction) be accelerated in full to a date prior to the effective time of such Corporate Transaction as the Board shall determine (or, if the Board shall not determine such a date, to the date that is five (5) days
prior to the effective time of the Corporate Transaction), such Stock Awards shall terminate if not exercised (if applicable) at or prior to such effective time, and any reacquisition or repurchase rights held by the Company with respect to such
Stock Awards shall (contingent upon the effectiveness of the Corporate Transaction) lapse. With respect to any other Stock Awards outstanding under the Plan that have not been assumed, continued or substituted, the vesting of such Stock Awards (and,
if applicable, the time at which such Stock Award may be exercised) shall not be accelerated, unless otherwise provided in a written agreement between the Company or any Affiliate and the holder of such Stock Award, and such Stock Awards shall
terminate if not exercised (if applicable) prior to the effective time of the Corporate Transaction. 
  
 (d) Change in Control. A Stock Award held by any Participant whose Continuous Service has not terminated prior to the effective time of a Change in
Control may be subject to additional acceleration of vesting and exercisability upon or after such event as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or
any Affiliate and the Participant, but in the absence of such provision, no such acceleration shall occur. 
  
 12. AMENDMENT OF THE PLAN AND STOCK AWARDS. 
  
 (a) Amendment of Plan. The Board at any time, and from time to time,
may amend the Plan. However, except as provided in Section 11(a) relating to Capitalization Adjustments, no amendment shall be effective unless approved by the shareowners of the Company to the extent shareowner approval is necessary to satisfy
applicable law. 
  
 (b) No Impairment of Rights. Rights
under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. 
  

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 (c) Amendment of Stock Awards. The Board at any time, and from time to time, may amend the
terms of any one or more Stock Awards to provide terms more favorable than previously provided in the Stock Award Agreement, subject to any specified limits in the Plan that are not subject to Board discretion; provided, however, that the
rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. 
  
 13. TERMINATION OR SUSPENSION OF THE PLAN.

  
 (a) Plan Term. The Board may suspend or terminate
the Plan at any time. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 
  
 (b) No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted
while the Plan is in effect except with the consent of the Participant. 
  
 14.
EFFECTIVE DATE OF PLAN. 
  
 The Plan shall become effective as determined by the Board. 
  
 15. CHOICE OF LAW. 
  
 The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such
state’s conflict of laws rules. 
  

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