Exhibit 99.4
BROADVISION, INC.
2000 NON-OFFICER EQUITY INCENTIVE PLAN
ADOPTED ON FEBRUARY 8, 2000
STOCKHOLDER APPROVAL NOT REQUIRED
1. PURPOSES.
(b) The purpose of the Plan is to provide a means by which selected
Employees of and Consultants to the Company and its Affiliates who are not
Officers or Directors may be given an opportunity to benefit from increases in
value of the stock of the Company through the granting of (i) Nonstatutory Stock
Options, (ii) stock bonuses and (iii) rights to purchase restricted stock, all
as described below. The Plan is also intended to provide a means by which the
Company may grant options to persons not previously employed by the Company as
an inducement essential to those persons entering employment contracts with the
Company. Such "inducement grants" may be made to any Employee, including persons
who ultimately are employed by the Company as Officers.
(c) The Company, by means of the Plan, seeks to retain the services of
persons who are now Employees or Consultants, to secure and retain the services
of new Employees and Consultants, and to provide incentives for such persons to
exert maximum efforts for the success of the Company and its Affiliates.
(d) The Company intends that the Stock Awards issued under the Plan shall
be, in the discretion of the Board or any Committee to which responsibility for
administration of the Plan has been delegated pursuant to subsection 3(c),
either (i) Nonstatutory Stock Options granted pursuant to Section 6 hereof or
(ii) stock bonuses or rights to purchase restricted stock granted pursuant to
Section 7 hereof.
2. DEFINITIONS.
"Affiliate" means any parent corporation or subsidiary corporation,
whether now or hereafter existing, as those terms are defined in Sections 424(e)
and (f) respectively, of the Code.
"Board" means the Board of Directors of the Company.
"Code" means the Internal Revenue Code of 1986, as amended.
"Committee" means a Committee appointed by the Board in accordance with
subsection 3(c) of the Plan.
"Company" means BroadVision, Inc., a Delaware corporation.
18
"Consultant" means any person, including an advisor, engaged by the
Company or an Affiliate to render consulting services and who is compensated for
such services; provided that the term "Consultant" shall not include Directors.
"Continuous Service" (formerly "Continuous Status as an Employee,
Director or Consultant") means that the Participant's service with the Company
or an Affiliate, whether as an Employee, Officer, Director or Consultant, is not
interrupted or terminated. The Participant's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Participant renders service to the Company or an Affiliate as an Employee,
Officer, 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 Continuous Service. For example, a change in
status from an Employee of the Company to a Consultant of an Affiliate or a
Director of the Company will 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.
"Director" means a member of the Board.
"Employee" means any person employed by the Company or any Affiliate of
the Company; provided that except as provided below, Officers and Directors of
the Company shall not be considered Employees for purposes of the Plan.
Notwithstanding the foregoing, an Officer shall be considered an Employee for
purposes of the grant under this Plan of a Stock Award to that Officer as an
inducement essential to such Officer's entering into an employment contract with
the Company if such Officer was not an Employee of the Company immediately prior
to the date on which such Stock Award is granted.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Fair Market Value" means, as of any date, the value of the Common
Stock of the Company determined as follows:
(i) If the Common Stock is listed on any established stock exchange or
a national market system, including without limitation the National Market of
The Nasdaq Stock 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 system or exchange (or the exchange with the
greatest volume of trading in Common Stock) on the last market trading day prior
to the day of determination, as reported in the Wall Street Journal or such
other source as the Board deems reliable.
(ii) If the Common Stock is quoted on The Nasdaq Stock Market (but not
on the National Market thereof) or is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a share of Common Stock shall be the mean between the bid and asked prices for
the Common Stock on the last market trading day prior to the day of
determination, as reported in the Wall Street Journal or such other source as
the Board deems reliable.
19
(iii) In the absence of an established market for the Common Stock, the
Fair Market Value shall be determined in good faith by the Board.
(e) "Non-Employee Director" means a Director of the Company who either (i)
is not a current Employee or an officer (within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder) 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.
(f) "Nonstatutory Stock Option" means an Option not intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.
(g) "Officer" means a person who is an officer of the Company, including
any corporate officer with a title of Vice President or above or any other
Employee of the Company whom the Board or the Committee classifies as an
"Officer."
(h) "Option" means a stock option granted pursuant to the Plan.
(i) "Option Agreement" means a written agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Option grant. Each
Option Agreement shall be subject to the terms and conditions of the Plan.
(j) "Optionee" means a person to whom an Option is granted pursuant to the
Plan or, if applicable, such other person who holds an outstanding Option.
(a) "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.
(k) "Plan" means this BroadVision, Inc. 2000 Non-Officer Equity Incentive
Plan.
(l) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect when discretion is being exercised with respect to the
Plan.
(m) "Securities Act" means the Securities Act of 1933, as amended.
(n) "Stock Award" means any right granted under the Plan, including any
Option, any stock bonus and any right to purchase restricted stock.
(o) "Stock Award Agreement" means a written 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.
20
3. ADMINISTRATION.
(p) The Board shall administer the Plan unless and until the Board
delegates administration to a Committee, as provided in subsection 3(c).
(q) The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:
(i) 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; whether a Stock Award will be an Option, a stock bonus, a right to
purchase restricted stock or the provisions of each Stock Award granted (which
need not be identical), including the time or times when a person shall be
permitted to receive stock pursuant to a Stock Award; and the number of shares
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
which are not in conflict with the provisions of the Plan.
(a) 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. In the
discretion of the Board, a Committee may consist solely of two or more
Non-Employee Directors, in accordance with Rule 16b-3. Within the
scope of such authority, the Board or the Committee may delegate to a
committee of one or more members of the Board who are not Non-Employee
Directors the authority to grant Stock Awards to eligible persons who
are not then subject to Section 16 of the Exchange Act.
21
4. SHARES SUBJECT TO THE PLAN.
(a) Subject to the provisions of Section 11 relating to adjustments upon
changes in stock, the stock that may be issued pursuant to Stock
Awards shall not exceed in the aggregate six million (6,000,000)
shares of the Company's Common Stock. If any Stock Award shall for any
reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the stock not acquired under such Stock
Award shall revert to and again become available for issuance under
the Plan.
(b) The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.
5. ELIGIBILITY.
(a) Stock Awards may be granted only to Employees or Consultants.
(b) A Consultant shall not be eligible for the grant of a Stock Award if,
at the time of grant, a Form S-8 Registration Statement under the
Securities Act ("Form S-8") is not available to register either the
offer or the sale of the Company's securities to such Consultant
because of the nature of the services that the Consultant is providing
to the Company, or because the Consultant is not a natural person, or
as otherwise provided by the rules governing the use of Form S-8,
unless the Company determines both (i) that such grant (A) shall be
registered in another manner under the Securities Act (e.g., on a Form
S-3 Registration Statement) or (B) does not require registration under
the Securities Act in order to comply with the requirements of the
Securities Act, if applicable, and (ii) that such grant complies with
the securities laws of all other relevant jurisdictions.
6. OPTION PROVISIONS.
Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. 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. No Option shall be exercisable after the expiration of ten (10)
years from the date it was granted.
(b) Price. The exercise price of each Option shall be not less than
eighty-five percent (85%) of the Fair Market Value of the stock
subject to the Option on the date the Option is granted.
(c) Consideration. The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes
and regulations, either (i) in cash at the time the Option is
exercised or (ii) at the discretion of the Board or the Committee, at
the time of the grant of the Option, (A) by delivery to the Company of
other Common Stock of the Company, (B) according to a deferred payment
or
22
other arrangement (which may include, without limiting the generality
of the foregoing, the use of other Common Stock of the Company) with
the person to whom the Option is granted or to whom the Option is
transferred pursuant to subsection 6(d) or (C) in any other form of
legal consideration that may be acceptable to the Board; provided,
however, that at any time that the Company is incorporated in
Delaware, payment of the Common Stock's "par value," as defined in the
Delaware General Corporation Law, shall not be made by deferred
payment.
In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as interest, under any applicable
provisions of the Code, of any amounts other than amounts stated to be interest
under the deferred payment arrangement.
(r) Transferability. 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 will or by the laws of descent
and distribution and shall be exercisable during the lifetime of the
Optionholder only by the Optionholder. Notwithstanding the foregoing, the person
to whom the Option is granted may, by delivering written notice to the Company,
in a form satisfactory to the Company, designate a third party who, in the event
of the death of the Optionee, shall thereafter be entitled to exercise the
Option.
(d) Vesting. The total number of shares of stock subject to an Option may,
but need not, be allotted in periodic installments (which may, but
need not, be equal). The Option Agreement may provide that from time
to time during each of such installment periods, the Option may become
exercisable ("vest") with respect to some or all of the shares
allotted to that period, and may be exercised with respect to some or
all of the shares allotted to such period and/or any prior period as
to which the Option became vested but was not fully exercised. 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 provisions
of this subsection 6(e) are subject to any Option provisions governing
the minimum number of shares as to which an Option may be exercised.
(e) Termination of Continuous Service. In the event an Optionee's
Continuous Service terminates (other than upon the Optionee's death or
disability), the Optionee may exercise his or her Option (to the
extent that the Optionee was entitled to exercise it at the date of
termination) but only within such period of time ending on the earlier
of (i) the date three (3) months after the termination of the
Optionee'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 Optionee does not exercise his or her Option within
the time specified in the Option Agreement, the Option shall
terminate, and the shares covered by such Option shall revert to and
again become available for issuance under the Plan.
23
An Optionee's Option Agreement may also provide that if the exercise of
the Option following the termination of the Optionee's Continuous Service (other
than upon the Optionee's death or disability) would result in liability under
Section 16(b) of the Exchange 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 tenth (10th) day after the last date on which such
exercise would result in such liability under Section 16(b) of the Exchange Act.
Finally, an Optionee's Option Agreement may also provide that if the
exercise of the Option following the termination of the Optionee's Continuous
Service (other than upon the Optionee's death or disability) would be prohibited
at any time solely because the issuance of shares 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 first
paragraph of this subsection 6(f) or (ii) the expiration of a period of three
(3) months after the termination of the Optionee's Continuous Service during
which the exercise of the Option would not be in violation of such registration
requirements.
(f) Disability of Optionee. In the event an Optionee's Continuous Service
terminates as a result of the Optionee's disability, the Optionee may
exercise his or her Option (to the extent that the Optionee was
entitled to exercise it at the date of termination), but only within
such period of time ending on the earlier of (i) the date twelve (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, at the date of
termination, the Optionee is not entitled to exercise his or her
entire Option, the shares covered by the unexercisable portion of the
Option shall revert to and again become available for issuance under
the Plan. 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 and
again become available for issuance under the Plan.
(g) Death of Optionee. In the event of the death of an Optionee during, or
within a period specified in the Option after the termination of, the
Optionee's Continuous Service, the Option may be exercised (to the
extent the Optionee was entitled to exercise the Option at the date of
death) by the Optionee'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 Optionee's death pursuant
to subsection 6(d), but only within the period ending on the earlier
of (i) the date eighteen (18) months following the date of death (or
such longer or shorter period specified in the Option Agreement) or
(ii) the expiration of the term of such Option as set forth in the
Option Agreement. If, at the time of death, the Optionee was not
entitled to exercise his or her entire Option, the shares covered by
the unexercisable portion of the Option shall revert to and again
become available for issuance under the Plan. If, after death, the
Option is not exercised within the time specified herein, the Option
shall terminate, and the shares covered by such Option shall revert to
and again become available for issuance under the Plan.
24
(h) Early Exercise. The Option may, but need not, include a provision
whereby the Optionee may elect at any time while an Employee, Officer,
Director or Consultant to exercise the Option as to any part or all of
the shares subject to the Option prior to the full vesting of the
Option. Any unvested shares so purchased may be subject to a
repurchase right in favor of the Company or to any other restriction
the Board determines to be appropriate.
(i) Re-Load Options. Without in any way limiting the authority of the
Board or Committee to make or not to make grants of Options hereunder,
the Board or Committee shall have the authority (but not an
obligation) to include as part of any Option Agreement a provision
entitling the Optionee to a further Option (a "Re-Load Option") in the
event the Optionee exercises the Option evidenced by the Option
agreement, in whole or in part, by surrendering other shares of Common
Stock in accordance with this Plan and the terms and conditions of the
Option Agreement. Any such Re-Load Option (i) shall be for a number of
shares equal to the number of shares surrendered as part or all of the
exercise price of such Option, (ii) shall have an expiration date that
is the same as the expiration date of the Option the exercise of which
gave rise to such Re-Load Option, and (iii) shall have an exercise
price that is at least eighty-five percent (85%) of the Fair Market
Value of the Common Stock subject to the Re-Load Option on the date of
exercise of the original Option.
There shall be no Re-Load Options on a Re-Load Option. Any such Re-Load
Option shall be subject to the availability of sufficient shares under
subsection 4(a) and shall be subject to such other terms and conditions as the
Board or Committee may determine which are not inconsistent with the express
provisions of the Plan regarding the terms of Options.
7. TERMS OF STOCK BONUSES AND PURCHASES OF RESTRICTED STOCK.
Each stock bonus or restricted stock purchase agreement shall be in
such form and shall contain such terms and conditions as the Board or the
Committee shall deem appropriate. The terms and conditions of stock bonus or
restricted stock purchase agreements may change from time to time, and the terms
and conditions of separate agreements need not be identical, but each stock
bonus or restricted stock purchase agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise)
the substance of each of the following provisions as appropriate:
(a) Purchase Price. The purchase price under each restricted stock
purchase agreement shall be such amount as the Board or Committee
shall determine and designate in such agreement but in no event shall
the purchase price be less than eighty-five percent (85%) of the
stock's Fair Market Value on the date such award is made.
Notwithstanding the foregoing, the Board or the Committee may
determine that eligible participants in the Plan may be awarded stock
pursuant to a stock bonus agreement in consideration for past services
actually rendered to the Company for its benefit.
25
(b) Transferability. Rights to acquire shares under the stock bonus or
restricted stock purchase agreement shall be transferable only upon
such terms and conditions as are set forth in the agreement, as the
Board shall determine in its discretion, so long as stock awarded
under the agreement remains subject to the terms of the agreement.
(c) Consideration. The purchase price of stock acquired pursuant to a
stock purchase agreement shall be paid either: (i) in cash at the time
of purchase, (ii) at the discretion of the Board or the Committee,
according to a deferred payment or other arrangement with the person
to whom the stock is sold or (iii) in any other form of legal
consideration that may be acceptable to the Board or the Committee in
its discretion; provided, however, that at any time that the Company
is incorporated in Delaware, payment of the Common Stock's "par
value," as defined in the Delaware General Corporation Law, shall not
be made by deferred payment. Notwithstanding the foregoing, the Board
or the Committee to which administration of the Plan has been
delegated may award stock pursuant to a stock bonus agreement in
consideration for past services actually rendered to the Company or
for its benefit.
(d) Vesting. Shares of stock sold or awarded under the Plan may, but need
not, be subject to a repurchase option in favor of the Company in
accordance with a vesting schedule to be determined by the Board or
the Committee.
(e) Termination of Continuous Service. In the event a Participant's
Continuous Service terminates, the Company may repurchase or otherwise
reacquire any or all of the shares of stock held by that person which
have not vested as of the date of termination under the terms of the
stock bonus or restricted stock purchase agreement between the Company
and such person.
8. COVENANTS OF THE COMPANY.
(s) During the terms of the Stock Awards, the Company shall keep available at
all times the number of shares of stock required to satisfy such Stock Awards.
(a) The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be
required to issue and sell shares of stock upon exercise of the Stock
Award; provided, however, that this undertaking shall not require the
Company to register under the Securities Act either the Plan, any
Stock Award or any 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 stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell stock upon exercise of such
Stock Awards unless and until such authority is obtained.
26
9. USE OF PROCEEDS FROM STOCK.
Proceeds from the sale of stock pursuant to Stock Awards shall
constitute general funds of the Company.
10. MISCELLANEOUS.
(a) 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 pursuant to subsection 6(e) or 7(d)
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) Neither an Employee, an Officer nor a Consultant nor any person to
whom a Stock Award is transferred in accordance with the Plan shall be
deemed to be the holder of, or to have any of the rights of a holder
with respect to, any shares subject to such Stock Award unless and
until such person has exercised the Stock Award pursuant to its terms.
(c) Nothing in the Plan or any instrument executed or Stock Award granted
pursuant thereto shall confer upon any Employee, Officer, Consultant
or other holder of Stock Awards any right to continue in the employ of
the Company or any Affiliate or to continue acting as a Consultant or
shall affect the right of the Company or any Affiliate to terminate
the employment of any Employee or Officer with or without notice and
with or without cause, or the right to terminate the relationship of
any Consultant pursuant to the terms of such Consultant's agreement
with the Company or Affiliate.
(d) The Company may require any person to whom a Stock Award is granted,
or any person to whom a Stock Award is transferred in accordance with
the Plan, as a condition of exercising or acquiring stock under any
Stock Award, (i) to give written assurances satisfactory to the
Company as to such person'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 such person is acquiring the stock subject to the Stock Award for
such person's own account and not with any present intention of
selling or otherwise distributing the stock. The foregoing
requirements, and any assurances given pursuant to such requirements,
shall be inoperative if (A) the issuance of the shares upon the
exercise or acquisition of stock under the Stock Award has been
registered under a then currently effective registration statement
under the Securities Act, or (B) 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
27
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 stock.
(e) To the extent provided by the terms of a Stock Award Agreement, the
person to whom a Stock Award is granted may satisfy any federal, state
or local tax withholding obligation relating to the exercise or
acquisition of stock under a Stock Award by any of the following means
or by a combination of such means: (1) tendering a cash payment, (2)
authorizing the Company to withhold shares from the shares of the
Common Stock otherwise issuable to the participant as a result of the
exercise or acquisition of stock under the Stock Award or (3)
delivering to the Company owned and unencumbered shares of the Common
Stock of the Company. Notwithstanding the foregoing, the Company shall
not be authorized to withhold shares of Common Stock at rates in
excess of the minimum statutory withholding rates for federal and
state tax purposes, including payroll taxes, if such excess
withholding would result in a charge to the Company's earnings for
accounting purposes.
11. ADJUSTMENTS UPON CHANGES IN STOCK.
(a) If any change is made in the 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), the Plan will
be appropriately adjusted in the class(es) and maximum number of
shares subject to the Plan pursuant to subsection 4(a) and the
outstanding Stock Awards will be appropriately adjusted in the
class(es) and number of shares and price per share of stock subject to
such outstanding Stock Awards. Such adjustments shall be made by the
Board or the Committee, the determination of which shall be final,
binding and conclusive. (The conversion of any convertible securities
of the Company shall not be treated as a "transaction not involving
the receipt of consideration by the Company.")
(b) In the event of: (1) a dissolution, liquidation or sale of
substantially all of the assets of the Company, (2) a merger or
consolidation in which the Company is not the surviving corporation or
(3) a reverse merger in which the Company is the surviving corporation
but the shares of the Company's 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, then
to the extent permitted by applicable law, any surviving corporation
or an Affiliate of such surviving corporation shall assume any Stock
Awards outstanding under the Plan or shall substitute similar Stock
Awards for those outstanding under the Plan. In the event any
surviving corporation and its Affiliates refuse to assume or continue
such Stock Awards, or to substitute similar options for those
outstanding under the Plan, then, with respect to Stock Awards
28
held by persons then performing services as Employees, Directors or
Consultants, the time during which such Stock Awards may be exercised
shall be accelerated and the Stock Awards terminated if not exercised
prior to such event. With respect to any other Stock Awards
outstanding under the Plan, such Stock Awards shall terminate if not
exercised prior to such event.
12. AMENDMENT OF THE PLAN AND STOCK AWARDS.
(a) The Board at any time, and from time to time, may amend the Plan.
However, except as provided in Section 11 relating to adjustments upon
changes in stock, no amendment shall be effective unless approved by
the stockholders if such modification requires stockholder approval in
order for the Plan to satisfy the requirements of Section 422 of the
Code or any Nasdaq or securities exchange listing requirements, or to
comply with the requirements of Rule 16b-3. The Board may in its sole
discretion submit any other amendment to the Plan for stockholder
approval.
(b) Rights and obligations 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 person to whom the Stock
Award was granted and (ii) such person consents in writing.
(c) The Board at any time, and from time to time, may amend the terms of
any one or more Stock Award; provided, however, that the rights and
obligations under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the person to
whom the Stock Award was granted and (ii) such person consents in
writing.
13. TERMINATION OR SUSPENSION OF THE PLAN.
(a) 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) Rights and obligations under any Stock Award granted while the Plan is
in effect shall not be impaired by suspension or termination of the
Plan, except with the consent of the person to whom the Stock Award
was granted.
14. EFFECTIVE DATE OF PLAN.
The Plan shall become effective on the date on which it is adopted by
the Board.
29