SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
OPENWAVE SYSTEMS INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 94-3219054 (State or other jurisdiction of (I.R.S. Employer Identification Number) incorporation or organization) |
1400 Seaport Boulevard
Redwood City, California 94063
(650) 480-8000
(Address, including ZIP Code and Telephone Number,
Including Area Code, of Principal Executive Offices)
Openwave Systems Inc. 2001 Stock Compensation Plan
Openwave Systems Inc. 1995 Stock Plan
Openwave Systems Inc. 1996 Stock Plan
Openwave Systems Inc. 1999 Employee Stock Purchase Plan
(Full Titles of the Plans)
Donald J. Listwin
President and Chief Executive Officer
Openwave Systems Inc.
1400 Seaport Boulevard
Redwood City, California 94063
Copy to:
Stephen Fackler, Esq.
Simpson Thacher & Bartlett
3330 Hillview Avenue
Palo Alto, California 94304
(650) 251-5000
------------------------------------------------------------------------------------------------------------------------------------ Proposed Amount Maximum Proposed Maximum Amount of to be Registered (2) Offering Price Aggregate Offering Registration Title of Securities to be Registered (1) (3) Per Share (3) Price (3) Statement Fee (4) ------------------------------------------------------------------------------------------------------------------------------------ Openwave Systems Inc. 1996 Stock Plan, par value $0.001 per share 3,000,000 $24.315 $72,945,000 $18,236.25 ------------------------------------------------------------------------------------------------------------------------------------ Openwave Systems Inc. 1999 Employee Stock Purchase Plan, Common Stock, par value $0.001 per share 1,000,000 $20.67 $20,670,000 $5,167.50 |
(1) The securities to be registered include options and rights to acquire Common Stock.
(2) Pursuant to Rule 416(a), this registration statement also covers any additional securities that may be offered or issued in connection with any stock split, stock dividend or similar transaction.
(3) Estimated solely for the purposes of this offering under Rule 457. As to 4,545,162 shares being registered under the Openwave Systems Inc. 2001 Stock Compensation Plan, the price is based on the average of the high and low price per share of the registrant's common stock, as reported on the Nasdaq National Market on August 3, 2001. The remaining 1,682,973 shares being registered under the Openwave Systems Inc. 2001 Stock Compensation Plan represent shares previously registered by the registrant under the AtMobile.com, Inc. Amended and Restated 1997 Stock Option Plan, the bCandid Corporation 1999 Equity Incentive Plan, the Mobility.Net Corporation 1999 Stock Option Plan, and the Software.com, Inc. 2000 Nonstatutory Stock Option Plan on Form S-8 POS registration statement No. 333-44926; the bCandid Corporation 1999 Equity Incentive Plan and the Mobility.Net Corporation 1999 Stock Option Plan on Form S-8 registration statement No. 333-54726; the MyAble, Inc. 1999 Stock Plan on Form S-8 registration statement No. 333-40840; the Phone.com, Inc. 2000 Non-Executive Stock Option Plan on Form S-8 registration statement No. 333-36832; the Arabesque Communications, Inc. 1998 Stock Plan and the OneBox.com, Inc. 1999 Stock Plan on Form S-8 registration statement No. 333-35394; and the Phone.com, Inc. 1995 Stock Plan on Form S-8 registration statement No. 333-81215. The registrant has filed post-effective amendments to deregister such shares from the Form S-8 registration statements filed with respect to these predecessor plans. As to the shares being registered under the Openwave Systems Inc. 1995 Stock Plan and the Openwave Systems Inc. 1996 Stock Plan, the price is based on the average of the high and low price per share of the registrant's common stock, as reported on the Nasdaq National Market on August 3, 2001. The Openwave Systems Inc. 1999 Employee Stock Purchase Plan establishes a purchase price equal to 85% of the fair market value of the registrant's common stock, and, therefore, the price for the shares under this plan is based upon 85% of the average of the high and low price per share of the common stock on the Nasdaq National Market on August 6, 2001.
(4) An aggregate of 1,682,973 shares of the shares being registered under the Openwave Systems Inc. 2001 Stock Compensation Plan are shares which were previously registered under the AtMobile.com, Inc. Amended and Restated 1997 Stock Option Plan, the bCandid Corporation 1999 Equity Incentive Plan, the Mobility.Net Corporation 1999 Stock Option Plan, the Software.com, Inc. 2000 Nonstatutory Stock Option Plan, the MyAble, Inc. 1999 Stock Plan, the Phone.com, Inc 2000 Non-Executive Stock Option Plan, the Arabesque Communications, Inc. 1998 Stock Plan, the OneBox.com, Inc. 1999 Stock Plan, and the Phone.com, Inc. 1995 Stock Plan (collectively, the "Predecessor Plans") on Form S-8 registration statements. The registrant has filed post-effective amendments to deregister such shares from the Form S-8 registration statements filed with respect to these plans, and accordingly, the associated registration fee previously paid on these shares under the prior registration statements is hereby also carried forward to cover that portion of the registration fee under this Registration Statement that corresponds to the shares which were previously available for grant under the Predecessor Plans. Accordingly, the registration fee under this Registration Statement is being calculated with respect to 4,545,162 shares.
The registration statement will become effective upon filing in accordance with Rule 462(a) under the Securities Act.
PART I
INFORMATION REQUIRED IN THE SECTION 10(A) PROSPECTUS
The document(s) containing the information specified in Part I will be sent or given to employees as specified by Rule 428(b)(1) of the Securities Act of 1933, as amended (the "Securities Act"). Such documents are not being filed with the Securities and Exchange Commission (the "SEC") either as part of this Registration Statement or as prospectuses or prospectus supplements pursuant to Rule 424 of the Securities Act. Such documents and the documents incorporated by reference in this Registration Statement pursuant to Item 3 of Part II hereof, taken together, constitute a prospectus that meets the requirements of Section 10(a) of the Securities Act.
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference
The SEC requires us to "incorporate by reference" certain of our
publicly-filed documents into this prospectus, which means that information
included in those documents is considered part of the prospectus. Information
that we file with the SEC after the effective date of this prospectus will
automatically update and supersede this information. We incorporate by reference
the documents listed below and future filings made with the SEC under Sections
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended
until we terminate the effectiveness of this registration statement.
The following documents filed with the SEC are hereby incorporated by reference:
(a) Our latest annual report on Form 10-K405 filed pursuant to
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), containing audited financial
statements for our latest fiscal year ended June 30, 2000 filed
on August 31, 2000.
(b) Our Quarterly Report on Form 10-Q for the three and nine months ended March 31, 2001 filed on May 15, 2001; for the three and six months ended December 31, 2000 filed on February 14, 2001 and for the three months ended September 30, 2000 filed on November 14, 2000.
(c) Our Current Report on Form 8-K/A filed on January 31, 2001 and our Current Reports on Form 8-K filed on July 16, 2001; July 2, 2001; June 11, 2001; January 23, 2001, November 29, 2000; November 20, 2000 and November 3, 2000.
(d) The descriptions of our Common Stock contained in our Registration Statement on Form 8-A12G filed on April 1, 1999 (No. 333-75219) and our Registration Statement on Form 8-A12B filed on August 17, 2000 (No. 001-16073).
(e) Software.com Inc's ("Software.com") Current Report on Form 8-K filed on July 17, 2000; Quarterly reports on Form 10-Q of Software.com for the three and nine months ended September 30, 2000 filed on November 14, 2000 and for the three and six months ended June 30, 2000 filed on August 14, 2000.
Item 4. Description of the Securities
The class of securities to be offered is registered under Section 12 of the Exchange Act.
Item 5. Interests of Named Experts and Counsel
Not applicable.
Item 6. Indemnification of Directors and Officers
Our Amended and Restated Certificate of Incorporation reduces the liability of a director to the corporation or its stockholders for monetary damages for breaches of his or her fiduciary duty of care to the fullest extent permissible under Delaware law. Our Amended and Restated By-laws further provide for indemnification of corporate agents to the maximum extent permitted by the Delaware General Corporation Law. In addition, we have entered into indemnification agreements with our officers and directors.
Item 7. Exemption from Registration Claimed
Not applicable.
Item 8. Exhibits
See Exhibit Index.
Item 9. Undertakings
The undersigned Registrant hereby undertakes:
1. To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:
(i) To include any prospectus required by section 10(a)(3) of the Securities Act;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective Registration Statement.
(iii) To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement; provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the registration statement is on Form S-3, Form S-8 or Form F-3, and the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the
Commission by the registrant pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement.
2. That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new Registration Statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
3. To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
4. The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
5. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
SIGNATURE
Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Redwood City, State of California, on August 9, 2001.
By: /s/ Alan Black -------------- Alan Black Senior Vice President, Corporate Affairs and Chief Financial Officer |
SIGNATURES AND POWER OF ATTORNEY
The officers and directors of Openwave Systems Inc. whose signatures appear below, hereby constitute and appoint Alan Black and Linda Speer and each of them, their true and lawful attorneys and agents, with full power of substitution, each with power to act alone, to sign and execute on behalf of the undersigned any amendment or amendments to this registration statement on Form S-8, and each of the undersigned does hereby ratify and confirm all that each of said attorney and agent, or their, his or her substitutes, shall do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on August 9, 2001.
Signature Title --------- ----- /s/ Donald J. Listwin Chairman of the Board, President, Chief Executive -------------------------- Officer and Director (principal executive officer) Donald J. Listwin /s/ Alan Black Senior Vice President, Corporate Affairs and Chief -------------------------- Financial Officer Alan Black (principal financial and accounting officer) /s/ Roger Evans Director -------------------------- Roger Evans /s/ John MacFarlane Executive Vice President and Director -------------------------- John MacFarlane /s/ Andrew Verhalen Director -------------------------- Andrew Verhalen /s/ Bernard Puckett Director -------------------------- Bernard Puckett |
EXHIBIT INDEX
Exhibit Number Exhibit ------ ------- 5 Opinion re legality 23.1 Consent of Counsel (included in Exhibit 5) 23.2 Consent of KPMG LLP, independent auditors, with respect to Openwave Systems Inc. (formerly known as Phone.com, Inc.) 23.3 Consent of Ernst & Young, LLP, independent auditors, with respect to Software.com, Inc. 24 Power of Attorney (included in signature pages to this registration statement) 99.1 Openwave Systems Inc. 2001 Stock Compensation Plan |
Exhibit 5
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, NY 10017-3954
August 9, 2001
Openwave Systems Inc.
1400 Seaport Boulevard
Redwood City, California 94063
Ladies and Gentlemen:
We have acted as counsel to Openwave Systems Inc., a Delaware corporation (the "Company"), in connection with the Registration Statement on Form S-8 (the "Registration Statement") filed by the Company with the Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "Act"), relating to shares (the "Shares") of Common Stock, par value $0.001 per share (the "Common Stock"), of the Company to be issued by the Company pursuant to the Openwave Systems Inc. 2001 Stock Compensation Plan (the "Plan").
We have examined the Registration Statement, a form of the share certificate and the Plan. We also have examined the originals, or duplicates or certified or conformed copies, of such records, agreements, instruments and other documents and have made such other and further investigations as we have deemed relevant and necessary in connection with the opinions expressed herein. As to questions of fact material to this opinion, we have relied upon certificates of public officials and of officers and representatives of the Company.
In such examination, we have assumed the genuineness of all signatures, the legal capacity of natural persons, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as duplicates or certified or conformed copies, and the authenticity of the originals of such latter documents.
Openwave Systems Inc. August 9, 2001
Based upon the foregoing, and subject to the qualifications and limitations stated herein, we are of the opinion that (1) when the Board of Directors of the Company has taken all necessary corporate action to authorize and approve the issuance of the Shares and (2) upon the issuance of the Shares in accordance with the terms of the Plan and the payment of the consideration therefor pursuant to the terms of the Plan, such Shares will be validly issued, fully paid and nonassessable.
We are members of the Bar of the State of New York and we do not express any opinion herein concerning any law other than the Delaware General Corporation Law.
We hereby consent to the filing of this opinion letter as Exhibit 5 to the Registration Statement. Except as stated herein, this opinion letter may not be relied upon by you for any other purpose, or relied upon by, or furnished to, any other person, firm or corporation without our prior written consent.
Very truly yours,
/s/ Simpson Thacher & Bartlett SIMPSON THACHER & BARTLETT |
Exhibit 23.2
CONSENT OF KPMG LLP, INDEPENDENT AUDITORS
We consent to incorporation herein by reference of our report dated July 19, 2000, except as to Note 10, which is as of August 11, 2000, relating to the consolidated balance sheets of Phone.com, Inc. and subsidiaries as of June 30, 1999 and 2000, and the related consolidated statements of operations, stockholders' equity and comprehensive loss, and cash flows for each of the years in the three-year period ended June 30, 2000, which report appears in the June 30, 2000 Annual Report on Form 10-K405 of Openwave Systems Inc., formerly Phone.com, Inc.
/s/ KPMG LLP Mountain View, California August 9, 2001 |
Exhibit 23.3
Consent of Ernst & Young LLP, Independent Auditors
We consent to the incorporation by reference in the Openwave Systems Inc. Registration Statement (Form S-8) pertaining to Openwave Systems Inc. 2001 Stock Compensation Plan, Openwave Systems Inc. 1995 Stock Plan, Openwave Systems Inc. 1996 Stock Plan and Openwave Systems Inc. 1999 Employee Stock Purchase Plan of our report dated July 12, 2000, with respect to the supplemental consolidated financial statements of Software.com, Inc. included in its Current Report (Form 8-K), filed with the Securities and Exchange Commission on July 17, 2000.
/s/ Ernst & Young LLP Woodland Hills, California August 9, 2001 |
Exhibit 99.1
OPENWAVE SYSTEMS INC.
2001 STOCK COMPENSATION PLAN
(As amended and restated in its entirety effective June 14, 2001)
(a) The purposes of this Openwave Systems Inc. 2001 Stock Compensation Plan (the "Plan") are to attract and retain the best available personnel for the Company and its Affiliates, to provide additional incentive to personnel of the Company and its Affiliates and to promote the success of the Company's and its Affiliates' businesses. Options granted under the Plan shall be nonstatutory stock options.
(b) This Plan shall serve as the successor to the plans listed on Exhibit A attached hereto (the "Predecessor Plans"). No further option grants shall be made under the Predecessor Plans from and after June 14, 2001 (the "Amendment Date.) However, each outstanding option granted under a Predecessor Plan shall continue to be governed solely by the express terms and conditions of the instrument evidencing such grant and the terms and conditions of the Predecessor Plan under which it was granted, as modified, if at all, by the terms and conditions of the Agreement and Plan of Merger, dated as of August 8, 2000, by and among Phone.com, Inc., Silver Merger Sub Inc., a wholly owned subsidiary of Phone.com, Inc., and Software.com, Inc. (the "Merger Agreement"), and no provision of this Plan shall be deemed to affect or otherwise modify the rights or obligations of the holders of such options with respect to their acquisition of shares of the Company's Common Stock thereunder.
regulations and the applicable laws of any other country or jurisdiction where stock awards are granted, as such laws, rules, regulations and requirements shall be in place from time to time.
(ii) If the Common Stock is quoted on the Nasdaq System (but not on the National Market System thereof) or regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock on the day of determination or, if the stock exchange or national market system on which the Common Stock trades is not open on the day of determination, the last business day prior to the day of determination; or
(iii) 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 issuing the Stock Award.
If an Option (whether granted under the Plan or a Predecessor Plan) should expire or become unexercisable for any reason without having been exercised in full, the unpurchased Shares which were subject thereto shall become available for future grant under the Plan (unless the Plan shall have been terminated). Notwithstanding any other provision of the Plan, shares issued under the Plan and later repurchased by the Company shall not become available for future grant or sale under the Plan; provided, however, that any Shares subject to unvested stock bonuses which expire or terminate shall revert to and again become available for issuance under the Plan.
(i) to determine the Fair Market Value of the Common Stock, in accordance with Section 2(o) of the Plan;
(ii) to select the Service Providers to whom Stock Awards may from time to time be granted hereunder;
(iii) to determine whether and to what extent Stock Awards are granted hereunder;
(iv) to determine the number of shares of Common Stock to be covered by each Stock Award granted hereunder;
(v) to approve forms of agreement for use under the Plan;
(vi) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option granted hereunder, which terms and conditions include, but are not limited to, the exercise or purchase price, the time or times when Options 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 Option, Optioned Stock or other Stock Award, based in each case on such factors as the Administrator, in its sole discretion, shall determine;
(vii) to determine whether and under what circumstances an Option may be settled in cash under Section 9(f) instead of Common Stock;
(viii) to modify or amend each Stock Award;
(ix) to adopt rules, procedures, and sub-plans to the Plan relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures in foreign jurisdictions, but unless otherwise superseded by the terms of such rules, procedures or sub-plans, the provisions of this Plan shall govern the operation of such rules, procedures or sub-plans; and
(x) to make all other determinations deemed necessary or advisable for administering the Plan.
(i) 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.
(ii) Form S-8 generally is available to consultants and advisors only if (i) they are natural persons; (ii) they provide bona fide services to the issuer; and (iii) the services are not in connection with the offer or sale of securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the issuer's securities.
(a) The per Share exercise price for the Shares to be issued pursuant to exercise of an Option granted under the Plan shall be determined by the Administrator. Options may be granted with a per Share exercise price which is either above or below the Fair Market Value per Share on the date of grant, at the discretion of the Administrator.
(b) The consideration to be paid by the Optionee (or permitted transferee as provided for in Section 10) for the Shares to be issued upon exercise of an Option by the Optionee (or permitted transferee), including the method of payment, shall be determined by the Administrator and may consist entirely of (1) cash, (2) check, (3) promissory note, (4) other Shares which (x) in the case of Shares acquired upon exercise of an Option either have been owned by the Optionee for more than six months on the date of surrender or were not acquired, directly or indirectly, from the Company, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised, (5) authorization from the Company to retain from the total number of Shares as to which the Option is exercised that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number of Shares as to which the Option is exercised, (6) delivery of a properly executed exercise notice together with such other documentation as the Administrator and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or broker loan proceeds required to pay the exercise price, (7) by delivering an irrevocable subscription agreement for the Shares which irrevocably obligates the Optionee to take and pay for the Shares not more than twelve months after the date of delivery of the subscription agreement, (8) any combination of the foregoing methods of payment, (9) or such other consideration and method of payment for the issuance of Shares to the extent permitted under Applicable Laws. In making its determination as to the type of consideration to accept, the Administrator shall consider whether acceptance of such consideration may be reasonably expected to benefit the Company. At any time that the Company is incorporated in Delaware, if the Optionee (or permitted transferee as provided for in Section 10)is permitted by the Company to pay the exercise price for the issuance of the applicable Shares by deferred payment or promissory note, then the Optionee (or permitted transferee) must pay an amount at least equal to the Common Stock's "par value," as defined in the Delaware General Corporation Law in cash or cash equivalents rather than by deferred payment or promissory note.
In the case of any promissory note, such promissory note will be a full recourse promissory note, shall provide for interest to be compounded at least annually and to be
charged at the market rate of interest necessary to avoid a charge to earnings for financial accounting purposes, and shall be on such further terms as the Board shall determine. No promissory note shall be permitted if the exercise of an Option using a promissory note would be a violation of any Applicable Law.
An Option may not be exercised for a fraction of a Share.
An Option shall be deemed to be exercised when written
or electronic notice of such exercise has been given to the Company in
accordance with the terms of the Option by the person entitled to exercise the
Option and full payment for the Shares with respect to which the Option is
exercised has been received by the Company or its authorized agent. Full payment
may, as authorized by the Administrator, consist of any consideration and method
of payment allowable under Section 8(b) of the Plan and as set forth in the
written option agreement. Until the Company or its duly authorized agent has
issued the stock certificate evidencing such Shares (or transmitted such Shares
via electronic delivery to the Optionee's brokerage account), no right to vote
or receive dividends or any other rights as a stockholder shall exist with
respect to the Optioned Stock, notwithstanding the exercise of the Option. The
Company shall issue (or cause to be issued) such stock certificate or electronic
Share delivery promptly upon exercise of the Option. No adjustment will be made
for a dividend or other right for which the record date is prior to the date the
stock certificate is issued or the date the Shares are electronically delivered
to the Optionee's brokerage account, as applicable, except as provided in
Section 13 of the Plan.
Exercise of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be 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.
than the expiration date of the term of such Option as set forth in the option agreement), exercise his or her Option to the extent that Optionee was entitled to exercise it at the date of such termination; unless such Option is amended while it remains outstanding. To the extent that Optionee was not entitled to exercise the Option at the date of such termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate. With respect to Options granted under the Plan, the Board (or its delegee), in its sole discretion, shall determine whether a termination shall be deemed to occur and this Section 9(b) shall apply if (i) the Optionee is a Consultant or non-employee Director at the time of grant and subsequently becomes an Employee, (ii) the Optionee is an Employee at the time of grant and subsequently becomes a Consultant or non-employee Director or (iii) the Optionee transfers from one member of the Affiliated Group to another member of the Affiliated Group.
(a) As a condition of the exercise of an Option granted under the Plan, the Optionee (or in the case of the Optionee's death, the person exercising the Option) shall make such arrangements as the Administrator may require for the satisfaction of any applicable federal, state, local or foreign withholding tax obligations and/or social charges ("Tax-Related Items") that may arise in connection with the grant, vesting or exercise of the Option and the issuance of Shares ("Taxable Event"). The Company shall not be required to issue any Shares under the Plan until such obligations are satisfied.
(b) In the case of an Optionee who is an Employee and in the absence of any other arrangement, the Employee shall be deemed to have directed the Company to withhold or collect from his or her compensation an amount sufficient to satisfy such obligations regarding Tax-Related Items from the next payroll payment otherwise payable after the date of a Taxable Event.
(c) In the case of an Optionee other than an Employee (or in the case of an Employee where the next payroll payment is not sufficient to satisfy such obligations regarding Tax-Related Items, with respect to any remaining tax obligations), in the absence of any other arrangement and to the extent permitted under the Applicable Laws, the Optionee shall be deemed to have elected to have the Company withhold from the Shares to be issued upon exercise of the Option that number of Shares having a Fair Market Value determined as of the applicable Tax Date (as defined below) equal to the
minimum statutory withholding rates for U.S. federal, state and foreign tax purposes, including payroll taxes, applicable to the Taxable Event. For purposes of this Section 11, the Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined under the Applicable Laws (the "Tax Date").
(d) If permitted by the Administrator, in its discretion, an Optionee may satisfy his or her obligations regarding Tax-Related Items by surrendering to the Company Shares that have a Fair Market Value determined as of the applicable Tax Date equal to the minimum statutory withholding rates for U.S. federal, state and foreign tax purposes, including payroll taxes, applicable to the Taxable Event.
(e) Any election or deemed election by an Optionee to have Shares withheld to satisfy obligations regarding Tax-Related Items under Section 11(c) or (d) above shall be irrevocable as to the particular Shares as to which the election is made and shall be subject to the consent or disapproval of the Administrator. Any election by an Optionee under Section 11(d) above must be made on or prior to the applicable Tax Date.
(f) In the event an election to have Shares withheld is made by an Optionee and the Tax Date is deferred under Section 83 of the Code because no election is filed under Section 83(b) of the Code, the Company shall have the authority to establish an escrow to hold the shares until the latest applicable Tax Date.
(i) Consideration. A restricted stock bonus may be awarded in consideration for past services actually rendered to the Company or an Affiliate for its benefit.
(ii) Vesting. Shares awarded under the restricted stock bonus agreement may, but need not, be subject to a share reacquisition option in favor of the Company in accordance with a vesting schedule to be determined by the Board.
(iii) Termination of Participant's Service. In the event a Participant's service terminates, the Company may reacquire any or all of the Shares held by the Participant which have not vested as of the date of termination under the terms of the restricted stock bonus agreement.
(iv) Transferability. Rights to acquire Shares under the restricted stock bonus agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the restricted stock bonus agreement, as the Board shall determine in its discretion, so long as Shares awarded under the restricted stock bonus agreement remain subject to the terms of the restricted stock bonus agreement.
(i) Purchase Price. The purchase price under each restricted stock purchase agreement shall be such amount as the Board shall determine and designate in such restricted stock purchase agreement.
(ii) Consideration. The purchase price of Shares
acquired pursuant to the restricted stock purchase agreement
shall be paid either: (i) in cash at the time of purchase;
(ii) at the discretion of the Board, according to a deferred
payment or other similar arrangement with the Participant;
or (iii) in any other form of legal consideration that may
be acceptable to the Board in its discretion.
(iii) Vesting. Shares awarded under the restricted stock purchase agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board.
(iv) Termination of Participant's Service. In the event a Participant's service terminates, the Company may repurchase or otherwise reacquire any or all of the Shares held by the Participant which have not vested as of the date of termination under the terms of the restricted stock purchase agreement.
(v) Transferability. Rights to acquire Shares under the restricted stock purchase agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the restricted stock purchase agreement, as the Board shall determine in its discretion, so long as Shares awarded under the restricted stock bonus agreement remain subject to the terms of the restricted stock purchase agreement.
such Stock Award, or such other date as is determined by the Board. Notice of the determination shall be given to each Service Provider to whom a Stock Award is so granted within a reasonable time after the date of such grant.
As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned relevant provisions of law.
Exhibit A
Predecessor Plans
Openwave Systems Inc. 2000 Non-Executive Stock Option Plan (formerly, Phone.com, Inc. 2000 Non-Executive Stock Option Plan)
Phone.com, Inc. 1995 Stock Plan
Software.com, Inc. 2000 Nonstatutory Stock Option Plan
Arabesque Communications, Inc. 1998 Stock Plan
MyAble, Inc. 1999 Stock Plan
OneBox.com, Inc. 1999 Stock Plan
Paragon 1999 Stock Plan
AtMobile.com, Inc. Amended and Restated 1997 Stock Option Plan
bCandid Corporation 1999 Equity Incentive Plan
Mobility.Net Corporation 1999 Stock Option Plan