Exhibit 10.13
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
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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
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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.
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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
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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
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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.
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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.
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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.
