OPEN PLAN SYSTEMS, INC.
1996 STOCK INCENTIVE PLAN
(as amended November 1, 1996 and May 12, 2000)
Article I
DEFINITIONS
1.01 Affiliate means any "subsidiary" or "parent corporation" (within the
meaning of Section 424 of the Code) of the Company.
1.02 Agreement means a written agreement (including any amendment or
supplement thereto) between the Company and a Participant specifying the terms
and conditions of a Grant or an Award issued to such Participant.
1.03 Award means an award of Common Stock, Restricted Stock and/or Phantom
Stock.
1.04 Board means the Board of Directors of the Company.
1.05 Change of Control means and shall be deemed to have taken place if:
(i) any individual, entity or group (within the meaning of Sections 13(d)(3) or
14(d)(2) of the Exchange Act) becomes the beneficial owner of shares of the
Company having 20 percent or more of the total number of votes that may be cast
for the election of directors of the Company, other than (x) as a result of any
acquisition directly from the Company or (y) as a result of any acquisition by
the Company or any employee benefit plans (or related trusts) sponsored or
maintained by the Company or its Subsidiaries; or (ii) a change in the
composition of the Board such that the individuals who, as of the date hereof,
constitute the Board (the Board as of the date hereof shall be hereinafter
referred to as the "Incumbent Board") cease for any reason to constitute at
least a majority of the Board; provided, however, for purposes of this Section,
that any individual who becomes a member of the Board subsequent to the date
hereof whose election, or nomination for election by the Company's shareholders,
was approved by a vote of at least a majority of those individuals who are
members of the Board and who were also members of the Incumbent Board (or deemed
to be such pursuant to this proviso) shall be considered as though such
individual were a member of the Incumbent Board; but, provided further, that any
such individual whose initial assumption of office occurs as a result of either
an actual or threatened election contest (as such terms are used in Rule 14a-11
of Regulation 14A promulgated under the Exchange Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a person other
than the Board shall not be so considered as a member of the Incumbent Board.
1.06 Change of Control Date is the date on which an event described in (i)
or (ii) of Section 1.05 occurs.
1.07 Code means the Internal Revenue Code of 1986, and any amendments
thereto.
1.08 Commission means the Securities and Exchange Commission or any
successor agency.
1.09 Committee means the Compensation Committee of the Board.
1.10 Common Stock means the Common Stock of the Company.
1.11 Company means Open Plan Systems, Inc.
1.12 Exchange Act means the Securities Exchange Act of 1934, as amended
from time to time, and any successor thereto.
1.13 Fair Market Value means, on any given date, the mean between the
highest and lowest reported sales prices of Common Stock as reported on the
Nasdaq National Market System. If there is no regular public trading market for
the Common Stock, the Fair Market Value shall be determined by the Committee in
good faith.
1.14 Grant means a grant of an Option and/or an SAR.
1.15 Incentive Stock Option means an Option that is intended to qualify as
an "incentive stock option" under Section 422 of the Code.
1.16 Initial Value means, with respect to an SAR, the Fair Market Value of
one share of Common Stock on the date of its grant, as set forth in the
Agreement.
1.17 Non-Qualified Stock Option means an option other than an Incentive
Stock Option.
1.18 Option means a stock option that entitles the holder to purchase from
the Company a stated number of shares of Common Stock at the price set forth in
an Agreement.
1.19 Option Price means the price per share for Common Stock purchased on
the exercise of an Option as provided in Article VI.
1.20 Participant means an officer, director or key employee of the Company
or of a Subsidiary who satisfies the requirements of Article IV and is selected
by the Committee to receive a Grant or an Award.
1.21 Phantom Stock means a bookkeeping entry on behalf of a Participant by
which his account is credited (but not funded) as though Common Stock had been
transferred to such account.
1.22 Plan means the Open Plan Systems, Inc. 1996 Stock Incentive Plan.
1.23 Restricted Stock means shares of Common Stock awarded to a Participant
under Article IX. Shares of Common Stock shall cease to be Restricted Stock
when, in accordance with the terms of the applicable Agreement, they become
transferable and free of substantial risks of forfeiture.
1.24 Rule 16b-3 means Rule 16b-3, as promulgated by the Commission under
Section 16(b) of the Exchange Act, as amended from time to time.
1.25 SAR means a stock appreciation right granted pursuant to the Plan that
entitles the holder to receive, with respect to each share of Common Stock
encompassed by the exercise of such SAR, the lesser of (a) the excess of the
Fair Market Value at the time of exercise over the Initial Value of the SAR or
(b) the Initial Value of the SAR; provided that any limited stock appreciation
right granted by the Committee and exercisable upon a Change of Control shall
entitle the holder to receive, with respect to each share of Common Stock
encompassed by the exercise of such SAR, the higher of (x) the highest sales
price of a share of Common Stock on the Nasdaq National Market System during the
60-day period prior to and including the Change of Control Date or (y) the
highest price per share paid in a Change of Control transaction, except that in
the case of SARs related to Incentive Stock Options, such price shall be based
only on the Fair Market Value on the date that the Incentive Stock Option is
exercised.
1.26 Securities Broker means the registered securities broker acceptable to
the Company who agrees to effect the cashless exercise of an Option pursuant to
Section 8.05 hereof.
1.27 Subsidiary means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations in the chain (other than the last corporation) owns stock
possessing at least 50 percent of the total combined voting power of all classes
of stock in one of the other corporations in such chain.
Article II
PURPOSES
The Plan is intended to assist the Company in recruiting and retaining
officers, directors and key employees with ability and initiative by enabling
such persons who contribute significantly to the Company or an Affiliate to
participate in its future success and to associate their interests with those of
the Company and its shareholders. The Plan is intended to permit the award of
Common Stock, Restricted Stock, and Phantom Stock, and the issuance of Options
qualifying as Incentive Stock Options or Non-Qualified Stock Options, as
designated by the Committee at the time of their grant, and SARs. No Option that
is intended to be an Incentive Stock Option, however, shall be invalid for
failure to qualify as an Incentive Stock Option under Section 422 of the Code
but shall be treated as a Non-Qualified Stock Option.
Article III
ADMINISTRATION
The Plan shall be administered by the Committee, which shall be composed of
two or more directors. The Committee shall have authority to issue Grants and
Awards upon such terms (not inconsistent with the provisions of the Plan) as the
Committee may consider appropriate. The terms of such Grants and Awards may
include conditions (in addition to those contained in the Plan) on (i) the
exercisability of all or part of an Option or SAR and (ii) the transferability
or forfeitability of Restricted Stock or Phantom Stock. In addition, the
Committee shall have complete authority to interpret all provisions of the Plan;
to prescribe the form of Agreements; to adopt, amend, and rescind rules and
regulations pertaining to the administration of the Plan; and to make all other
determinations necessary or advisable for the administration of the Plan. To
fulfill the purposes of the Plan without amending the Plan, the Committee may
also modify any Grants or Awards issued to Participants who are nonresident
aliens or employed outside of the United States to recognize differences in
local law, tax policy or custom.
The express grant in the Plan of any specific power to the Committee shall
not be construed as limiting any power or authority of the Committee. Any
decision made, or action taken, by the Committee or in connection with the
administration of the Plan shall be final and conclusive. All expenses of
administering the Plan shall be borne by the Company.
Article IV
ELIGIBILITY
4.01 General. Any officer, director or employee of the Company or a
Subsidiary (including any corporation that becomes a Subsidiary after the
adoption of the Plan) who, in the judgment of the Committee, has contributed
significantly or can be expected to contribute significantly to the profits or
growth of the Company or a Subsidiary may receive one or more Grants and/or
Awards, or any combination or type thereof. Employee and non-employee directors
of the Company are eligible to participate in the Plan.
4.02 Grants and Awards. The Committee will designate individuals to whom
Grants and/or Awards are to be issued and will specify the number of shares of
Common Stock subject to each such Grant or Award. An Option may be granted alone
or in addition to other Grants and/or Awards under the Plan. The Committee shall
have the authority to grant any Participant Incentive Stock Options,
Non-Qualified Stock Options or both types of Options (in each case with or
without a related SAR); provided, however, that Incentive Stock Options may be
granted only to employees of the Company and its Subsidiaries. An SAR may be
granted with or without a related Option. All Grants and Awards issued under the
Plan shall be evidenced by Agreements that shall be subject to applicable
provisions of the Plan and to such other provisions as the Committee may
determine. No Participant may be granted Options that are Incentive Stock
Options, or related SARs (under all Incentive Stock Option Plans of the Company
and its Affiliates), that are first exercisable in any calendar year for stock
having an aggregate Fair Market Value (determined as of the date that an Option
is granted) exceeding $100,000.
4.03 Designation of Option as an Incentive Stock Option or Non-Qualified
Stock Option. The Committee will designate at the time that an Option is granted
whether the Option is to be treated as an Incentive Stock Option or a
Non-Qualified Stock Option. In the absence, however, of any such designation,
such Option shall be treated as an Incentive Stock Option.
4.04 Qualification of Incentive Stock Option under Section 422 of the Code.
Anything in the Plan to the contrary notwithstanding, no term of the Plan
relating to Incentive Stock Options shall be interpreted, amended or altered nor
shall any discretion or authority granted under the Plan be exercised so as to
disqualify the Plan under Section 422 of the Code or, without the consent of the
optionee affected, to disqualify any Incentive Stock Option under such Section
422.
Article V
STOCK SUBJECT TO PLAN
5.01 Maximum Number of Shares to be Awarded. Upon the exercise of any
Option (or tandem SAR), the award of Common Stock or Restricted Stock, or the
payment of an award of Phantom Stock, the Company may deliver to the Participant
authorized but previously unissued shares of Common Stock or previously issued
shares of Common Stock reacquired by the Company. The maximum aggregate number
of shares of Common Stock that may be issued pursuant to the Plan is 400,000.
The maximum aggregate number of shares of Common Stock that may be issued
pursuant to the exercise of Options (or tandem SARs) and the award of Common
Stock or Restricted Stock or the payment of an award of Phantom Stock under the
Plan is subject to adjustment as provided in Article XI. If an Option is
terminated, in whole or in part, for any reason other than its exercise, the
number of shares of Common Stock allocated to the Option or a portion thereof
may be reallocated to other Grants or Awards to be made under the Plan. Any
shares of Restricted Stock that are forfeited may be reallocated to other Grants
or Awards to be made under the Plan.
5.02 Independent SARs. Upon the exercise of an SAR granted independently of
an Option, the Company may deliver to the Participant authorized but previously
unissued Common Stock, cash, or a combination thereof as provided in Section
8.03. The maximum aggregate number of shares of Common Stock that may be issued
pursuant to SARs that are granted independently of Options is subject to the
provisions of Section 5.01 hereof.
Article VI
OPTION PRICE
The price per share for Common Stock purchased on the exercise of an Option
shall be fixed by the Committee on the date of its grant; provided, however,
that, in the case of an Option that is an Incentive Stock Option, the price per
share shall not be less than the Fair Market Value on such date.
Article VII
EXERCISE OF OPTIONS
7.01 Maximum Option or SAR Period. The period in which an Option or SAR may
be exercised shall be determined by the Committee on the date of its grant;
provided, however, that an Incentive Stock Option or related SAR shall not be
exercisable after the expiration of ten years from the date that the Incentive
Stock Option is granted.
7.02 Nontransferability. Any Option or SAR granted under the Plan shall be
nontransferable except by will or by the laws of descent and distribution. In
the event of any such transfer, the Option and any related SAR must be
transferred to the same person or persons, trust or estate. During the lifetime
of the Participant to whom an Incentive Stock Option or related SAR is granted,
such Option or SAR may be exercised only by the Participant. No right or
interest of a Participant in any Option or SAR shall be liable for, or subject
to, any lien, obligation or liability of such Participant.
7.03 Employee Status. For purposes of determining the applicability of
Section 422 of the Code (relating to Incentive Stock Options), or in the event
that the terms of any Grant provide that it may be exercised only during
employment or within a specified period of time after termination of employment,
the Committee may decide to what extent leaves of absence for governmental or
military service, illness, temporary disability, or other reasons shall not be
deemed interruptions of continuous employment.
Article VIII
METHOD OF EXERCISE
8.01 Exercise. Subject to the provisions of Articles VII and XII, an Option
or SAR may be exercised in whole at any time or in part from time to time at
such times and in compliance with such requirements as the Committee shall
determine; provided, however, that an SAR that is related to an Option may be
exercised only to the extent that the related Option is exercisable and when the
Fair Market Value exceeds the Option Price of the related Option. An Option or
SAR granted under the Plan may be exercised with respect to any number of whole
shares less than the full number for which the Option or SAR could be exercised.
Such partial exercise of an Option or SAR shall not affect the right to exercise
the Option or SAR from time to time in accordance with the Plan with respect to
remaining shares subject to the Option or related SAR. The exercise of an Option
shall result in the termination of the SAR to the extent of the number of shares
with respect to which the Option is exercised.
8.02 Payment. Unless otherwise provided by the Agreement, payment of the
Option Price shall be made in cash. If the Agreement provides, payment of all or
part of the Option Price (and any applicable withholding taxes) may be made by
the Participant's surrendering shares of Common Stock to the Company or by the
Company's withholding shares of Common Stock from the Participant upon exercise,
provided that the shares surrendered or withheld have a Fair Market Value
(determined as of the day preceding the date of exercise) that is not less than
such price or part thereof and any such withholding taxes. In addition, the
Committee may establish such payment or other terms as it may deem to be
appropriate and consistent with these purposes.
8.03 Determination of Payment of Cash and/or Common Stock upon Exercise of
SAR. At the Committee's discretion, the amount payable as a result of the
exercise of an SAR may be settled in cash, Common Stock, or a combination
thereof. No fractional shares shall be delivered upon the exercise of an SAR,
and a cash payment will be made in lieu thereof.
8.04 Shareholder Rights. No participant shall have any rights as a
shareholder with respect to shares subject to his Option or SAR until the date
that he exercises such Option or SAR.
8.05 Cashless Exercise. To the extent permitted under the applicable laws
and regulations, at the request of the Participant and with the consent of the
Committee, the Company agrees to cooperate in a "cashless exercise" of the
Option. The cashless exercise shall be effected by the Participant delivering to
the Securities Broker instructions to exercise all or part of the Option,
including instructions to sell a sufficient number of shares of Common Stock to
cover the costs and expenses associated therewith. The Committee may permit a
Participant to elect to pay any applicable withholding taxes by requesting that
the Company withhold the number of shares of Common Stock equivalent at current
market value to the withholding taxes due.
8.06 Cashing Out of Option. The Committee may elect to cash out all or part
of the portion of any Option to be exercised by paying the optionee an amount,
in cash or Common Stock, equal to, on the effective date of such cash out, the
excess of the Fair Market Value of the Common Stock that is the subject of the
portion of the Option to be exercised over the Option Price times the number of
shares of Common Stock subject to the portion of the Option to be exercised.
Article IX
COMMON STOCK AND RESTRICTED STOCK
9.01 Award. In accordance with the provisions of Article IV, the Committee
may designate persons to whom an award of Common Stock and/or Restricted Stock
is to be made and will specify the number of shares of Common Stock covered by
such award or awards.
9.02 Vesting. In the case of Restricted Stock, on the date of the award,
the Committee may prescribe that the Participant's rights in the Restricted
Stock shall be forfeitable or otherwise restricted for a period of time set
forth in the Agreement and/or until certain financial performance objectives are
satisfied as determined by the Committee in its sole discretion. Subject to the
provisions of Article XII hereof, the Committee may award Common Stock to a
Participant that is not forfeitable and is free of any restrictions on
transferability.
9.03 Shareholder Rights. Prior to forfeiture in accordance with the terms
of the Agreement and while the shares are Restricted Stock, a Participant will
have all rights of a shareholder with respect to Restricted Stock, including the
rights to receive dividends, warrants and rights and to vote the shares;
provided, however, that (i) a Participant may not sell, transfer, pledge,
exchange, hypothecate, or otherwise dispose of Restricted Stock, (ii) the
Company shall retain custody of the certificates evidencing shares of Restricted
Stock, and (iii) the Participant will deliver to the Company a stock power,
endorsed in blank, with respect to each award of Restricted Stock.
Article X
PHANTOM STOCK
10.01 Award. Pursuant to the Plan or any Agreement establishing additional
terms and conditions, the Committee may designate employees to whom awards of
Phantom Stock may be made and will specify the number of shares of Common Stock
covered by such award.
10.02 Vesting. The Committee may prescribe such terms and conditions under
which a Participant's right to receive payment for Phantom Stock shall become
vested.
10.03 Shareholder Rights. A Participant for whom Phantom Stock has been
credited generally shall have none of the rights of a shareholder with respect
to such Phantom Stock. However, a plan or agreement for the use of Phantom Stock
may provide for the crediting of a Participant's Phantom Stock account with cash
or stock dividends declared with respect to Common Stock represented by such
Phantom Stock.
10.04 Payment. At the Committee's discretion, the amount payable to a
Participant for Phantom Stock credited to his account shall be made in cash,
Common Stock or a combination thereof.
10.05 Nontransferability. Any Phantom Stock awarded under the Plan shall be
nontransferable except by will or by the laws of descent and distribution.
Article XI
ADJUSTMENT UPON CHANGE IN COMMON STOCK
Should the Company effect one or more (x) stock dividends, stock split-ups,
subdivisions or consolidations of shares or other similar changes in
capitalization; (y) spin-offs, spin-outs, split-ups, split-offs, or other such
distribution of assets to shareholders; or (z) direct or indirect assumptions
and/or conversions of outstanding Options due to an acquisition of the Company,
then the maximum number of shares as to which Grants and Awards may be issued
under the Plan shall be proportionately adjusted, and their terms shall be
adjusted as the Committee shall determine to be equitably required. Any
determination made under this Article XI by the Committee shall be final and
conclusive.
The issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash or property or for labor
or services, either upon direct sale or upon the exercise of rights or warrants
to subscribe therefor, or upon conversion of shares or obligations of the
Company convertible into such shares or other securities, shall not affect, and
no adjustment by reason thereof shall be made with respect to, any Grant or
Award.
Article XII
COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES
No Grant shall be exercisable, no Common Stock shall be issued, no
certificates for shares of Common Stock shall be delivered, and no payment shall
be made under the Plan except in compliance with all applicable Federal and
state laws and regulations (including, without limitation, withholding tax
requirements) and the rules of all domestic stock exchanges on which the
Company's shares may be listed or the Nasdaq Stock Market. The Company may rely
on an opinion of its counsel as to such compliance. Any share certificate issued
to evidence Common Stock for which a Grant is exercised or an Award is issued
may bear such legends and statements as the Committee may deem advisable to
assure compliance with Federal and state laws and regulations. No Grant shall be
exercisable, no Common Stock shall be issued, no certificates for shares shall
be delivered, and no payment shall be made under the Plan until the Company has
obtained such consent or approval as the Committee may deem advisable from
regulatory bodies having jurisdiction over such matters.
Article XIII
GENERAL PROVISIONS
13.01 Effect on Employment. Neither the adoption of the Plan, or its
operation, nor any documents describing or referring to the Plan (or any part
thereof) shall confer upon any employee any right to continue in the employ of
the Company or a Subsidiary or in any way affect any right and power of the
Company or a Subsidiary to terminate the employment of any employee at any time
with or without assigning a reason therefor.
13.02 Unfunded Plan. The Plan, insofar as it provides for a Grant or for an
award of Phantom Stock, is not required to be funded, and the Company shall not
be required to segregate any assets that may be represented at any time by a
Grant or by an award of Phantom Stock under the Plan.
13.03 Change of Control. Notwithstanding any other provision of the Plan to
the contrary, in the event of a Change of Control:
(a) Any outstanding Option, SAR (including any limited SAR) or Phantom
Stock that is not presently exercisable and vested as of a Change of Control
Date shall become fully exercisable and vested to the full extent of the
original Grant upon such Change of Control Date.
(b) The restrictions applicable to any outstanding Restricted Stock shall
lapse, and such Restricted Stock shall become free of all restrictions and
become fully vested, nonforfeitable and transferable to the full extent of the
original Grant. The Committee may also provide in an Agreement that a
Participant may elect, by written notice to the Company within 60 days after a
Change of Control Date, to receive, in exchange for shares that were Restricted
Stock immediately before the Change of Control Date, a cash payment equal to the
Fair Market Value of the shares surrendered on the last business day that the
Common Stock is traded on the Nasdaq National Market System prior to receipt by
the Company of such written notice.
13.04 Rules of Construction. Headings are given to the articles and
sections of the Plan for ease of reference. The reference to any statute,
regulation, or other provision of law shall be construed to refer to any
amendment to or successor of such provision of law.
13.05 Amendment. The Board may amend or terminate the Plan from time to
time; provided, however, that no amendment may become effective until
shareholder approval is obtained if the amendment (i) materially increases the
aggregate number of shares that may be issued pursuant to Options and Common
Stock and Restricted Stock awards, (ii) materially increases the benefits to
Participants under the Plan, or (iii) materially changes the requirements as to
eligibility for participation in the Plan. Except for an amendment made to cause
the Plan or a Grant or Award to qualify for the Rule 16b-3 exemption, no
amendment, without a Participant's consent, shall adversely affect any rights of
such Participant under any Grant or Award outstanding at the time that such
amendment is made.
13.06 Duration of Plan. No Grant or Award may be issued under the Plan
before March 27, 1996, or after March 26, 2006. Grants and Awards issued on or
after March 27, 1996, but on or before March 26, 2006, shall remain valid in
accordance with their terms.
13.07 Effective Date. The Plan has been approved by the Board and the
shareholders of the Company and shall be effective as of March 27, 1996.
Amendments to the Plan effective as of November 1, 1996 and May 12, 2000 were
approved by the Board.