Attached files
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10-Q - FORM 10-Q - CALLIDUS SOFTWARE INC | f56517e10vq.htm |
EX-31.1 - EX-31.1 - CALLIDUS SOFTWARE INC | f56517exv31w1.htm |
EX-32.1 - EX-32.1 - CALLIDUS SOFTWARE INC | f56517exv32w1.htm |
EX-10.26 - EX-10.26 - CALLIDUS SOFTWARE INC | f56517exv10w26.htm |
EX-10.27 - EX-10.27 - CALLIDUS SOFTWARE INC | f56517exv10w27.htm |
EX-10.8.1 - EX-10.8.1 - CALLIDUS SOFTWARE INC | f56517exv10w8w1.htm |
Exhibit 10.3.1
CALLIDUS SOFTWARE INC.
2003 STOCK INCENTIVE PLAN
(Amended and Restated as of June 1, 2010)
2003 STOCK INCENTIVE PLAN
(Amended and Restated as of June 1, 2010)
1. Purposes of the Plan. The purposes of this Plan are to attract and retain the best
available personnel for positions of substantial responsibility, to provide additional incentive to
Employees, Directors and Consultants and to promote the success of the Companys business.
2. Definitions. As used herein, the following definitions shall apply:
(a) Administrator means the Board or any of its Committees as shall be administering
the Plan in accordance with Section 4 hereof.
(b) Applicable Laws means the requirements relating to the administration of stock
plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any
stock exchange or quotation system on which the Common Stock is listed or quoted and the
applicable laws of any other country or jurisdiction where Awards are granted under the
Plan.
(c) Award means any Option or other stock-based award granted under this Plan.
(d) Board means the Board of Directors of the Company.
(e) Code means the U.S. Internal Revenue Code of 1986, as amended.
(f) Committee means a committee of Directors appointed by the Board in accordance
with Section 4 hereof.
(g) Common Stock means the common stock, par value $0.001 per share, of the Company.
(h) Company means Callidus Software Inc., a Delaware corporation.
(i) Consultant means any person who is engaged by the Company or any Parent or
Subsidiary to render consulting or advisory services to such entity.
(j) Director means a member of the Board of Directors of the Company.
(k) Employee means any person employed by the Company or any Parent or Subsidiary of
the Company. A Service Provider shall not cease to be an Employee in the case of (i) any
leave of absence approved by the Company or protected as a matter of local law or (ii)
transfers between locations of the Company or between the Company, its Parent, any
Subsidiary, or any successor. Neither service as a Director nor payment of a directors fee
by the Company shall be sufficient to constitute employment by the Company.
(l) Exchange Act means the U.S. Securities Exchange Act of 1934, as amended.
(m) Fair Market Value means, as of any date, the value of 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, its Fair Market Value
shall be the closing sales price for such stock (or the closing bid, if no sales
were reported) as quoted on such exchange or system on the date of determination
(or if such date is not a trading date, on the previous trading date), as reported
in The Wall Street Journal or such other source as the Administrator deems
reliable;
(ii) In the absence of an established market for the Common Stock, the Fair
Market Value thereof shall be determined in good faith by the Administrator.
(n) Incentive Stock Option means an Option intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code.
(o) Nonstatutory Stock Option means an Option not intended to qualify as an Incentive
Stock Option.
(p) Option means a stock option granted pursuant to the Plan.
(q) Option Agreement means an agreement evidencing the terms and conditions of an
individual Option grant. Any Option Agreement is subject to the terms and conditions of the
Plan.
(r) Optionee means the holder of an outstanding Option granted under the Plan.
(s) Outside Director means a Director who is not an Employee.
(t) Participant means the holder of an outstanding Award granted under the Plan.
(u) Parent means a parent corporation, whether now or hereafter existing, as
defined in Section 424(e) of the Code.
(v) Plan means this 2003 Stock Incentive Plan.
(w) Rule 16b-3 means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3.
(x) Service Provider means an Employee, Director or Consultant.
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(y) Share means a share of the Common Stock, as adjusted in accordance with Section
13 below.
(z) Subsidiary means a subsidiary corporation, whether now or hereafter existing,
as defined in Section 424(f) of the Code.
3. Stock Subject to the Plan.
(a) Subject to the provisions of Section 13 of the Plan, the maximum aggregate number
of Shares which may be issued under the Plan is 2,000,000 shares, plus (x) any Shares
remaining available for grant of awards under the Companys 1997 Stock Option Plan on the
effective date of the Plan and (y) an annual increase on July 1 of each year during the term
of the Plan beginning July 1, 2004, in each case in an amount equal to the lesser of (i)
2,800,000 shares, (ii) 5.0% of the outstanding shares on the immediately preceding date or
(iii) an amount determined by the Board. The Shares may be authorized but unissued, or
reacquired, shares or treasury shares.
(b) No Participant may receive Options and stock appreciation rights under the Plan in
any calendar year that relate to more than 1,500,000 Shares.
(c) If any Shares covered by an Award, or to which such an Award relates, are
forfeited, or if an Award otherwise terminates in whole or in part without the delivery of
the full number of Shares related thereto, then the Shares covered by such Award, or to
which such Award relates, to the extent of any such forfeiture or termination, shall again
be, or shall become, available for issuance under the Plan. Shares that have been issued
but are repurchased by, or surrendered or forfeited to, the Company shall become available
for future grant under the Plan. For purposes of this paragraph, awards and options granted
under the Companys 1997 Stock Option Plan shall be treated as Awards.
4. Administration of the Plan.
(a) The Plan shall be administered by the Board or a Committee appointed by the Board,
which Committee shall be constituted to comply with Applicable Laws.
(i) To the extent that the Administrator determines it to be desirable to
qualify Awards granted hereunder as performance-based compensation within the
meaning of Section 162(m) of the Code, the Plan shall be administered by a
Committee of two or more non-employee directors within the meaning of Section
162(m) of the Code.
(ii) To the extent desirable to qualify transactions hereunder as exempt under
Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy
the requirements for exemption under Rule 16b-3.
(b) Subject to the provisions of the Plan and, in the case of a Committee, the specific
duties delegated by the Board to such Committee, and subject to the approval of any relevant
authorities, the Administrator shall have the authority in its discretion:
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(i) to determine the Fair Market Value;
(ii) to select the Service Providers to whom Awards may from time to time be
granted hereunder;
(iii) to determine the number of Shares to be covered by each such award
granted hereunder;
(iv) to approve forms of agreement for use under the Plan;
(v) to determine the terms and conditions, of any Award granted hereunder.
Such terms and conditions include, but are not limited to, the exercise price, the
time or times when Awards may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and any
restriction or limitation regarding any Award or the Common Stock relating thereto,
based in each case on such factors as the Administrator, in its sole discretion,
shall determine;
(vi) to amend the terms of any Award; provided that (A) no such amendment
shall directly or indirectly reduce the exercise price of any Award without the
approval of the Companys stockholders and (B) no such amendment shall impair the
rights of any Participant without the consent of the Participant;
(vii) to grant Awards with such terms as the Administrator deems necessary or
appropriate in order to comply with or take advantage of the laws of any
jurisdiction in which a Participant resides or is employed or to establish a
sub-plan under this Plan for such purposes;
(viii) to prescribe, amend and rescind rules and regulations relating to the
Plan, including rules and regulations relating to sub-plans established by the
Administrator for the purpose of qualifying for preferred tax treatment under
foreign tax laws or complying with foreign securities or other legal requirements;
(ix) to allow Participants to satisfy withholding tax obligations by electing
to have the Company withhold from the Shares to be issued upon exercise of an Award
that number of Shares having a Fair Market Value equal to the amount required to be
withheld; and
(x) to construe and interpret the terms of the Plan and awards granted
pursuant to the Plan.
(c) All decisions, determinations and interpretations of the Administrator shall be
final and binding on all Participants.
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5. Eligibility.
(a) Awards may be granted to Service Providers as determined by the Administrator in
its sole discretion, except that Incentive Stock Options may be granted only to Employees.
(b) Neither the Plan nor any Award shall confer upon any Participant any right with
respect to continuing the Participants relationship as a Service Provider with the Company
or its Subsidiary, nor shall it interfere in any way with his or her right or the right of
the Company or its Subsidiary, as appropriate, to terminate such relationship at any time,
with or without cause.
6. Term of Plan. The Plan shall become effective as determined by the Board. It shall
continue in effect for a term of ten years unless sooner terminated under Section 14 of the Plan.
7. Terms of Options.
(a) The term of each Option shall be stated in the Option Agreement; provided that the
term shall be no more than ten (10) years from the date of grant thereof. In the case of an
Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns
stock representing more than ten percent (10%) of the voting power of all classes of stock
of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years
from the date of grant or such shorter term as may be provided in the Option Agreement.
(b) Each Option shall be designated in the Option Agreement as either an Incentive
Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to
the extent that the aggregate Fair Market Value of the Shares with respect to which
Incentive Stock Options are exercisable for the first time by the Optionee during any
calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds
$100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 7(b), Incentive Stock Options shall be taken into account in the order in which they
were granted. The Fair Market Value of the Shares shall be determined as of the time the
Option with respect to such Shares is granted.
(c) The per share exercise price for the Shares to be issued upon exercise of an Option
shall be such price as is determined by the Administrator, but in the case of any Incentive
Stock Option shall be subject to the following:
(A) the exercise price of any Incentive Stock Option granted to an
Employee who, at the time of grant of such Option, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of
the Company or any Parent or Subsidiary shall be no less than 110% of the
Fair Market Value per Share on the date of grant; and
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(B) the exercise price of any Incentive Stock Option granted to any
other Employee shall be no less than 100% of the Fair Market Value per
Share on the date of grant.
(d) The consideration to be paid for the Shares to be issued upon exercise of an
Option, including the method of payment, shall be determined by the Administrator (and, in
the case of an Incentive Stock Option, shall be determined at the time of grant). Such
consideration may consist of (1) cash, (2) check, (3) promissory note, (4) other Shares
which (x) in the case of Shares acquired upon exercise of an Option, have been owned by the
Optionee for more than six months on the date of surrender, and (y) have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as to which
such Option shall be exercised, (5) consideration received by the Company under a cashless
exercise program implemented by the Company in connection with the Plan, or (6) any
combination of the foregoing methods of payment. In making its determination as to the type
of consideration to accept, the Administrator shall consider if acceptance of such
consideration may be reasonably expected to benefit the Company.
8. Exercise of Option.
(a) Any Option granted hereunder shall be exercisable according to the terms hereof at
such times and under such conditions as determined by the Administrator and set forth in the
Option Agreement. Unless the Administrator provides otherwise or unless required by local
law, vesting of Options granted hereunder shall be tolled during any unpaid leave of
absence. An Option may not be exercised for a fraction of a Share.
(b) An Option shall be deemed exercised when the Company receives: (i) written or
electronic notice of exercise (in accordance with the Option Agreement) from the person
entitled to exercise the Option, and (ii) full payment for the Shares with respect to which
the Option is exercised. Full payment may consist of any consideration and method of
payment authorized by the Administrator and permitted by the Option Agreement and the Plan.
Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse. Until the
Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company), no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Shares, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such Shares
promptly after the Option is exercised. No adjustment will be made for a dividend or other
right for which the record date is prior to the date the Shares are issued, except as
provided in Section 13 of the Plan.
(c) Exercise of an Option in any manner shall result in a decrease in the number of
Shares thereafter available, both for purposes of the Plan and for sale under the Option, by
the number of Shares as to which the Option is exercised.
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9. Termination of Relationship as a Service Provider.
(a) Termination. If an Optionee ceases to be a Service Provider, such Optionee may
exercise his or her Option within such period of time as is specified in the Option
Agreement (of at least 30 days) to the extent that the Option is vested on the date of
termination (but in no event later than the expiration of the term of the Option as set
forth in the Option Agreement). In the absence of a specified time in the Option Agreement,
the vested portion of the Option shall remain exercisable for 90 days following the
Optionees termination. If, after termination, the Optionee does not exercise his or her
Option within the time specified herein or in the Option Agreement, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.
(b) Disability of Optionee. If an Optionee ceases to be a Service Provider as a result
of the Optionees disability, the Optionee may exercise an Option to the extent the Option
is vested as of the date of termination, but only within 12 months from the date of such
termination (and in no event later than the expiration date of the term of such Option as
set forth in the Option Agreement). If such disability is not a disability as such term
is defined in Section 22(e)(3) of the Code, in the case of an Incentive Stock Option such
Incentive Stock Option shall automatically cease to be treated as an Incentive Stock Option
and shall be treated for tax purposes as a Nonstatutory Stock Option on the day three months
and one day following such termination. If, after termination, the Optionee does not
exercise his or her Option within the time specified herein, the Option shall terminate, and
the Shares covered by such Option shall revert to the Plan.
(c) Death of Employee Participant. If an Employee Participant dies while a Service
Provider, all shares subject to all outstanding Awards that are held by such Employee
Participant at the time of death will have the vesting of such shares automatically
accelerated 12 months on the date of death. If the Award(s) is an Option(s), it may be
exercised at any time within 12 months following the date of death (but in no event later
than the expiration of the term of such Option(s) as set forth in the Option Agreement(s))
to the extent vested as of the date of death (after giving effect to the 12 month vesting
acceleration set forth in the preceding sentence).
(d) Death of Consultant or Outside Director Service Provider. If a Participant who is
a Consultant or Outside Director dies while a Service Provider, all outstanding Options may
be exercised at any time within 12 months following the date of death (but in no event later
than the expiration of the term of such Option(s) as set forth in the Option Agreement(s))
to the extent vested as of the date of death. Unless otherwise specifically approved by the
Administrator in writing, no Consultant or Outside Director shall be entitled to accelerated
vesting of any kind upon death.
(e) The Option(s) referenced in subsections (c) and (d) above may be exercised by the
executor or administrator of the Optionees estate or, if none, by the person(s) entitled to
exercise the Option(s) under the Optionees will or the laws of descent or distribution. If
the Option(s) is not so exercised within the time specified
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herein, the Option(s) shall terminate, and the Shares covered by such Option(s) shall
revert to the Plan.
(f) Buyout Provisions. The Administrator may at any time offer to buy out, for a
payment in cash or Shares, an Award previously granted, based on such terms and conditions
as the Administrator shall establish and communicate to the Participant at the time that
such offer is made.
10. Formula Grants to Outside Directors. Awards may be granted to Outside Directors in
accordance with the policies established from time to time by the Board specifying the number of
shares (if any) to be subject to each such award and the time(s) at which such awards shall be
granted. The current policy with respect to Awards granted to Outside Directors under this Section
effective as of the date set forth under the title of this Plan and continuing until modified or
revoked by the Board from time to time, is as follows:
(a) Initial Grants. As of the date on which any Outside Director first becomes a
member of the Board, whether by election by the stockholders or appointment by the Board,
such individual shall be:
(i) Granted automatically a Nonstatutory Stock Option to purchase 25,000
Shares (an Initial Option); and
(ii) Awarded automatically a restricted stock unit to purchase 7,500 Shares
(an Initial RSU Award).
(b) Annual Grants and Awards. Immediately after the Companys regularly scheduled
annual meeting of stockholders each year, the following grant and award shall be made (each,
an Annual Option or Annual RSU Award, as applicable):
(i) Each Outside Director shall be granted automatically a Nonstatutory Stock
Option to purchase 15,000 Shares; provided that if such Outside Director has served
on the Board for less than one year, the number of Shares subject to such Annual
Option shall be reduced pro rata based on the portion of the year that such Outside
Director has served on the Board.
(ii) Each Outside Director (other than the chair of the Board and Lead
Independent Director of the Board) shall be awarded automatically a restricted
stock unit to purchase 5,000 Shares; provided that if such Outside Director has
served on the Board for less than one year, the number of Shares subject to such
Annual RSU Award shall be reduced pro rata based on the portion of the year that
such Outside Director has served on the Board.
(iii) The chair of the Board (so long as the chair is an Outside Director) and
the Lead Independent Director of the Board each shall be awarded automatically a
restricted stock unit to purchase 15,000 and 10,000 Shares, respectively; provided
that if such chair of the Board or Lead Independent Director has served on the
Board for less than one year, the number of Shares
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subject to such Annual RSU Award shall be reduced pro rata based on the
portion of the year that such for such individual has served on the Board..
(c) Terms of Options. Options granted to Outside Directors pursuant to this Section 10
shall be on the following terms, unless otherwise determined by the Board:
(i) The exercise price per Share shall be 100% of the Fair Market Value per
Share on the date of grant of the Option.
(ii) Each Initial Option shall vest and become exercisable over four years,
with the first 25% vesting on the first anniversary of the grant date and the
remainder vesting monthly thereafter.
(iii) Each Annual Option shall be fully vested and exercisable immediately.
(iv) The term of each such Option shall be five years unless otherwise
specified in the Option Agreement, provided that the term may not exceed ten (10)
years.
(d) Terms of RSU Awards. RSUs awarded to Outside Directors pursuant to this Section 10
shall be on the following terms, unless otherwise determined by the Board:
(i) Each Initial RSU Award and Annual RSU Award shall be fully vested
immediately; provided, however, no Shares shall be issued pursuant to an
Initial RSU Award or Annual RSU Award until the earlier of date of the applicable
Outside Directors departure from the Board (whether by resignation, death or
failure to be reelected) or upon a change in control, at which time all of the
Shares subject to the applicable Outside Directors RSU Awards shall be released.
11. Non-Transferability of Awards. Except as otherwise determined by the Administrator,
Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Participant, only by the Participant.
12. Other Stock Awards. The Administrator is hereby authorized to grant to Participants such
other Awards (including, without limitation, grants of restricted stock, restricted stock units,
stock bonus awards, and stock appreciation rights) that are denominated or payable in, valued in
whole or in part by reference to, or otherwise based on or related to, Shares (including, without
limitation, securities convertible into Shares) as are deemed by the Administrator to be consistent
with the purposes of the Plan. Subject to the terms of the Plan, the Administrator shall determine
the terms and conditions of such Awards, which shall be set forth in an Award Agreement.
13. Adjustments Upon Changes in Capitalization, Merger or Asset Sale.
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(a) Changes in Capitalization. Subject to any required action by the stockholders of
the Company, the number of shares of Common Stock covered by each outstanding Award, and the
number of shares of Common Stock which have been authorized for issuance under the Plan but
as to which no Awards have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Award, as well as the price per share of Common Stock
covered by each such outstanding Award, shall be proportionately adjusted for any increase
or decrease in the number of issued shares of Common Stock resulting from a stock split,
reverse stock split, stock dividend, combination or reclassification of the Common Stock, or
any other increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company. The conversion of any convertible
securities of the Company shall not be deemed to have been effected without receipt of
consideration. Such adjustment shall be made by the Board, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be
made with respect to, the number or price of shares of Common Stock subject to an Award.
(b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Participant as soon as
practicable prior to the effective date of such proposed transaction. The Administrator in
its discretion may provide for a Participant to have the right to exercise his or her Award
prior to such transaction, including Shares as to which the Award would not otherwise be
exercisable. In addition, the Administrator may provide that any Company repurchase option
applicable to any Shares purchased upon exercise of an Award shall lapse as to all such
Shares, provided the proposed dissolution or liquidation takes place at the time and in the
manner contemplated. To the extent it has not been previously exercised, an Award will
terminate immediately prior to the consummation of such proposed action.
(c) Merger or Asset Sale. In the event of a merger of the Company with or into another
corporation, or the sale of all or substantially all of the assets of the Company, each
outstanding Award shall be continued or assumed or an equivalent award substituted by the
Company or the successor corporation or a Parent or Subsidiary of the successor corporation.
In the event that any Award is not so continued, assumed or substituted, such Award shall
become fully vested and exercisable. If an Award becomes fully vested and exercisable in
lieu of continuation, assumption or substitution, the Administrator shall notify the
Participant in writing or electronically that the Award shall be fully exercisable for a
period of no less than 15 days from the date of such notice, and the Award shall terminate
upon the expiration of such period. For the purposes of this paragraph, the Award shall be
considered assumed if, following the merger or sale of assets, the option or right confers
the right to purchase or receive, for each Share subject to the Award 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 that if such consideration received is not solely common stock
of the successor corporation or its
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Parent, the Administrator may provide for the consideration to be received upon the
exercise of the Award, for each Share subject to the Award, 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.
14. Amendment and Termination of the Plan.
(a) Amendment and Termination. The Board may at any time amend, alter, suspend or
terminate the Plan.
(b) Stockholder Approval. The Board shall obtain stockholder approval of any Plan
amendment to the extent necessary and desirable to comply with Applicable Laws.
(c) Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan by the Board shall impair the rights of any Participant with the
consent of the Participant. Termination of the Plan shall not affect the Administrators
ability to exercise the powers granted to it hereunder with respect to Awards granted under
the Plan prior to the date of such termination.
15. Conditions Upon Issuance of Shares.
(a) Legal Compliance. Shares shall not be issued pursuant to any Award granted
hereunder unless the issuance and delivery of such Shares shall comply with Applicable Laws.
(b) Tax Withholding. The Administrator shall require payment of any amount the Company
may determine to be necessary to withhold for any income, employment or social insurance
taxes or contributions, as applicable, as a result of the exercise of an award.
16. Inability to Obtain Authority. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Companys counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.
17. Stockholder Approval. The Plan shall be subject to approval by the stockholders of the
Company within twelve (12) months after the date the Plan is adopted. Such stockholder approval
shall be obtained in the degree and manner required under Applicable Laws.
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