UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
February 16, 2018
Date of Report
(Date of earliest event reported)
 
BLUCORA, INC.
(Exact name of registrant as specified in its charter)
 
DELAWARE
000-25131
91-1718107
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
6333 North State Highway 161, 6th Floor
Irving, Texas 75038
(Address of principal executive offices)
(972) 870-6000
Registrant’s telephone number, including area code
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. ☐
 






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Item 5.02.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Annual Incentive Plan

On February 16, 2018, the Compensation Committee (the “Committee”) of the Board of Directors of Blucora, Inc. (the “Company”) approved the Blucora, Inc. Annual Incentive Plan (the “AIP”). The AIP provides for annual cash bonuses that are tied to the achievement of pre-established performance goals to certain eligible employees identified by the Committee, which may include the Company’s named executive officers. Capitalized terms used herein that are not otherwise defined shall have their respective meanings set forth in the AIP that is attached hereto as Exhibit 10.1.

Performance Goals and Awards

The Committee is responsible for administering the AIP and establishing the performance goals and achievement levels under the AIP. Pursuant to the AIP, for each fiscal year of the Company (each, a “Performance Period”), the Committee will establish, as applicable, (i) the Business Unit Performance Goals for the Performance Period, if applicable, (ii) the Company Performance Goals for the Performance Period, if applicble, (iii) the Threshold Achievement, Target Achievement, and Maximum Achievement levels for the Performance Goals for the Performance Period, (iv) with respect to each Participant, Incentive Compensation for achievement of Threshold Achievement, Target Achievement, and Maximum Achievement levels and the relative weighting of each Performance Goal in determining the Participant’s Incentive Compensation, and (v) a schedule setting forth the payout opportunity for Threshold Achievement, Target Achievement, and Maximum Achievement levels.

Performance Goals for a Business Unit or the Company may be related to the achievement of financial and operating objectives of the Business Unit or the Company, as applicable, and may consist of one or more of any of the following criteria: cash flows (including, but not limited to, operating cash flow, free cash flow or cash flow return on capital); working capital; earnings (and any variations thereon, including, without limitation, earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; earnings before interest, taxes, depreciation, amortization, and stock-based compensation or other similar expenses); earnings per share; book value per share; operating income (including or excluding depreciation, amortization, extraordinary items, restructuring charges or other expenses); revenues (and any variations thereon, including, without limitation, gross revenues; net revenues; revenues from products); assets under management; fees based on assets under management; monetized units or products; sales (and any variations thereon); operating margins; return on assets; return on equity; debt; debt plus equity; market or economic value added; stock price appreciation; total stockholder return; cost control; strategic initiatives; market share; net income; return on invested capital; improvements in capital structure; operational improvements; or customer satisfaction, employee satisfaction, services performance, subscriber, cash management or asset management metrics (together, the “Performance Criteria”). Any Performance Criteria may be measured in absolute terms, relative to a peer group or index, relative to past performance, or as otherwise determined by the Committee, and is subject to adjustments made by the Committee.

As soon as practicable following the end of an applicable Performance Period, the Committee will determine (i) the achievement of the Performance Goals, (ii) the calculation of an individual’s Incentive Compensation and (iii) the amount of Incentive Compensation, if any, to be paid to each Participant for the applicable Performance Period.

Recoupment and Other Provisions

The AIP allows the Committee to recoup all or any portion of Incentive Compensation paid to a Participant under the Plan in the event that (i) such Incentive Compensation is paid prior to public disclosure of the Company’s financial statements, and the amount payable based on such financial statements would be materially lower than the amount actually paid to such Participant, or (ii) there is a restatement of the Company’s financial statements to the





extent that the amount of the Incentive Compensation would have been lower if the Company’s financial statements had been as restated, in each case, as determined by the Committee.

The AIP also contains customary terms governing the treatment of awards in the event of a Participant’s termination of employment, death or disability.

The foregoing description of the AIP does not purport to be complete and is qualified in its entirety by the full text of the AIP, a copy of which is filed as Exhibit 10.1 hereto and is incorporated by reference herein.

2018 Executive Bonus Program

On February 1, 2018, the Committee approved the 2018 Executive Bonus Program under the AIP (the “2018 Program”). The 2018 Program provides for performance-based cash bonuses to the Company’s executive officers, including its named executive officers. The target bonus as a percentage of annual base salary for the Company's executive officers who were considered named executive officers in the Company’s 2017 Proxy Statement were as follows: John S. Clendening, Chief Executive Officer: 200%; and Mathieu Stevenson, Chief Marketing Officer: 100%. The target bonus amount for the Company’s other individual executive officers varies between 80% and 125% of each executive’s annual base salary.
    
The potential bonus for each executive is based on the achievement of the following financial and strategic performance metrics:

 
Target Metrics
Performance Criteria
CEO
CFO
CLO
CMO
President - TaxAct
CEO - HD Vest
Blucora Revenue
X
X
X
X
 
 
Adjusted EBITDA
X
X
X
X
X
X
TaxAct Segment Revenue
 
 
 
 
X
 
HD Vest Segment Net Revenue
 
 
 
 
 
X
Monetized Units
 
 
 
X
X
 
Net Assets Under Management Inflows
 
 
 
 
 
X
Certain HR Foundation Metrics
X
X
X
X
X
X
Balanced Scorecard Metrics
X
X
X
X
X
X

The specific weighting of the financial or strategic performance metrics vary by executive based on responsibilities that are specific to the business unit for which the individual executive is responsible. The payout percentage for each performance metric will be determined based on the actual performance versus the performance targets established by the Committee. For each of Blucora revenue; Adjusted EBITDA, TaxAct Segment Revenue; HD Vest Segment Net Revenue; Monetized Units; Net AUM Inflows, the payout percentage for each performance metric will range from 0% and 100% and between 100% and 200%, based on a sliding scale between Threshold Achievement and Target Achievement and between Target Achievement and Maximum Achievement, respectively. The payout percentage for HR Foundation and Balanced Scorecard Customer Baseline is 100% upon Target Achievement.

The ultimate payout of each Participant’s award will be based upon the (i) the target bonus amount for such individual, multiplied by (ii) the aggregate of the product of (a) the weighting of the applicable performance criteria for the Participant and (b) the payout percentage for each performance criteria applicable to the Participant. All payments of Incentive Compensation payable pursuant to the 2018 Program will be submitted to the Committee for final approval in early 2019 and are subject to adjustment by the Committee, regardless of the actual achievement of





the Performance Goals. The Incentive Compensation payable under the 2018 Program, if any, will be paid to each Participant, less applicable tax withholdings and other deductions, on or before March 15, 2019.

2018 Annual Equity Awards

2018 Grants

On February 16, 2018, the Committee approved equity grants to be made under the Blucora, Inc. 2015 Incentive Plan, as amended and restated (the “2015 Plan”), to each of the Company's executive officers, effective February 20, 2018 (the “Date of Grant”), which are comprised of the following:
25% stock options (“Stock Options”);
50% time-based restricted stock units (“Time RSUs”); and
25% performance-based restricted stock units (“Performance RSUs”).
The grants that were made to the Company's executive officers who were considered named executive officers in the Company’s 2017 Proxy Statement are set forth below:
 
Type of Award
Name
Stock Options (#)(1)(2)
Time RSUs (#)(1)
Target Performance RSUs (#)(3)
John Clendening (4)
147,000
87,500
43,750
Mathieu Stevenson (4)
26,666
16,666
8,333
(1) Each of the Stock Options and Time RSUs vest over a three-year period with 33.33% vesting on each anniversary of the date of grant. The Performance RSUs are eligible to vest following a three-year performance period that ends on December 31, 2020 and are based on performance goals set by the Committee.
(2) The Stock Options have an exercise price equal $24.00, which was the closing price of the Company's stock on the Date of Grant, and a maximum term of seven years.
(3) In order for the Performance RSUs to vest, the Company must achieve a certain level of performance over the three-year period ending December 31, 2020. Based on the Company’s performance during that period, 0% to 200% of the target Performance RSUs will be eligible to vest on January 1, 2021, subject to the Committee certifying the achievement of the applicable performance results.
(3) The aggregate dollar amount of the grants received by Messrs. Clendening and Stevenson were $2,100,000 and $400,000, respectively.

Award Agreements

In connection with such equity grants, the Committee approved (i) a form of nonqualified stock option agreement (the “NQSO Agreement”) under the 2015 Plan, (ii) a form of time-based restricted stock unit agreement under the 2015 Plan (the “Time-Based RSU Agreement”), and (iii) a form of performance-based restricted stock unit agreement under the 2015 Plan (the “Performance-Based RSU Agreement,” and together with the Time-Based RSU Agreement, the “RSU Agreements”).

NQSO Agreement

Pursuant to the NQSO Agreement, each Stock Option represents the right to purchase the number of shares of the Company’s common stock at an exercise price set forth in a recipient’s notice of grant (each, a “Notice of Grant”), and such exercise price shall not be less than the fair market value of the Company’s common stock on the applicable date of grant.

Subject to the 2015 Plan, the Committee will have the discretion to determine the vesting schedule with respect to each award of Stock Options, as well as the applicable expiration date of the Stock Options. If provided by the Committee, vesting of stock options may accelerate upon the occurrence of a Termination of Service (as defined in the 2015 Plan) due to death, disability or retirement (as defined in the Notice of Grant, and on or after the first anniversary of the applicable date of grant). The maximum term of a Stock Option is seven years from the applicable date of grant.






The unvested portion of any Stock Option will terminate automatically and without further notice immediately upon a holder’s Termination of Service. In such event, the vested portion of the Stock Option will terminate automatically and without further notice on the date set forth in the applicable Notice of Grant and NQSO Agreement.

The foregoing description of the NQSO Agreement does not purport to be complete and is qualified in its entirety by the full text of the NQSO Agreement, a copy of which is filed as Exhibit 10.2 hereto and is incorporated by reference herein.

RSU Agreements

Pursuant to the RSU Agreements, each Time RSU and Performance RSU represents the right to receive a share of the Company’s common stock on (or within 60 days) upon a payment event, as set forth in the RSU Agreement.

Time RSUs and Performance RSUs will vest and be paid according to the terms specified in an applicable recipient’s Notice of Grant. Subject to the 2015 Plan, the Committee will have the discretion to determine the vesting schedule with respect to each award of Time RSUs. Performance RSUs will vest based on the achievement of performance goals determined by the Committee, which such performance goals shall be based on the attainment of specified levels of one or any combination of the performance criteria specified in the 2015 Plan, and be paid on a payment date following the performance period.

Except as otherwise provided in a Notice of Grant, if a holder of Time RSUs or Performance RSUs has a Termination of Service for any or no reason prior to vesting, the unvested RSUs or Performance RSUs held by such person will be automatically forfeited. However, if provided by the Committee, Time RSUs or Performance RSUs may still vest or be payable upon or following the occurrence of a Termination of Service due to death, disability or retirement (as defined in the Notice of Grant, and on or after the first anniversary of the applicable date of grant), as set forth in the applicable Notice of Grant and RSU Agreement.

The foregoing description of the RSU Agreements does not purport to be complete and is qualified in its entirety by the full text of the Time-Based RSU Agreement and the Performance-Based RSU Agreement, copies of which are filed as Exhibits 10.3 and 10.4, respectively, and are incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.
Exhibit
No.
 
Description of Exhibit
 
 
  
Blucora Inc. Annual Incentive Plan.
 
Form of Nonqualified Stock Option Agreement under the Blucora, Inc. 2015 Incentive Plan, as amended and restated.
 
Form of Time-Based Restricted Stock Unit Agreement under the Blucora, Inc. 2015 Incentive Plan, as amended and restated.
 
Form of Performance-Based Restricted Stock Unit Agreement under the Blucora, Inc. 2015 Incentive Plan, as amended and restated.







SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
BLUCORA, INC.
 
 
 
Date: February 23, 2018
By:
/s/ Ann J. Bruder
 
 
Ann J. Bruder
 
 
Chief Legal Officer and Secretary
 
 
 
 
 
 




Exhibit 10.1

BLUCORA, INC.
ANNUAL INCENTIVE PLAN

Article I
Purpose

The purpose of the Blucora, Inc. Annual Incentive Plan, as it may be amended from time to time (the “ Plan ”) is to advance the interests of Blucora, Inc., a Delaware corporation (the “ Company ”), and its stockholders by (a) providing certain Employees (as hereinafter defined) of the Company and its Related Companies (as hereinafter defined) with incentive compensation that is tied to the achievement of pre-established performance goals, (b) identifying and rewarding superior performance and providing competitive compensation to attract, motivate, and retain Employees who have outstanding skills and abilities and who achieve superior performance, and (c) fostering accountability and teamwork throughout the Company.
    
Article II
Definitions

For the purposes of this Plan, unless the context requires otherwise, the following terms shall have the meanings indicated:

Affiliate ” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

Authorized Officer ” has the meaning set forth in Section 3.3 .

Award ” means a grant of Incentive Compensation that may be paid to a Participant upon the satisfaction of specified Performance Goal(s) for a particular Performance Period; such Performance Period may be for a period of less than a Fiscal Year (a “ Short-Term Award ”), a period equal to a Fiscal Year (an “ Annual Award ”), or a period in excess of a Fiscal Year (a “ Long-Term Award ”).

Board ” means the Board of Directors of the Company.

Business Unit ” means any segment or operating or administrative unit, including geographical unit, of the Company identified by the Committee as a separate business unit, or a Related Company identified by the Committee as a separate business unit.

Business Unit Performance Goals ” means the performance goals established for each Business Unit in accordance with Sections 5.1 and 5.2 below for any Performance Period.

Code ” means the Internal Revenue Code of 1986, as amended.

Committee ” means the Compensation Committee of the Board or any other committee as determined by the Board.

Company ” has the meaning set forth in Article I .

Company Performance Goals ” means the performance goals established for the Company in accordance with Sections 5.1 and 5.3 below for any Performance Period.

    




    
Claims ” has the meaning set forth in Section 7.5 .

Disability ” unless otherwise defined by the Committee for purposes of the Plan in the instrument evidencing an Award or in a written employment, services or other agreement between the Participant and the Company or a Related Company, means a mental or physical impairment of the Participant that is expected to result in death or that has lasted or is expected to last for a continuous period of twelve (12) months or more and that causes the Participant to be unable to perform his or her material duties for the Company or a Related Company and to be engaged in any substantial gainful activity, in each case as determined by the Company’s Chief Counsel or, in the case of directors and executive officers, the Committee, whose determination shall be conclusive and binding. Notwithstanding the foregoing sentence, in the event an Award issued under the Plan is subject to Code Section 409A, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements of Code Section 409A, the definition of “Disability” for purposes of such Award shall be the definition of “disability” provided for under Code Section 409A and the regulations or other guidance issued thereunder.

Eligible Employee ” shall mean any Employee of the Company or any Related Company.

Employee ” means a common law employee (as defined in accordance with the treasury regulations and revenue rulings applicable under Code Section 3401(c)) of the Company or any Related Company.

Exchange Act ” shall mean the Securities Exchange Act of 1934, as amended from time to time.

Fiscal Year ” means the fiscal year of the Company, which is the twelve-month (12-month) period ending on December 31 of each calendar year.

Incentive Compensation ” means the compensation approved by the Committee to be paid to a Participant for any Performance Period under the Plan.

Individual Performance Goals ” means the performance goals established for an individual Participant in accordance with Section 5.6 below for any Performance Period.

Maximum Achievement ” means, for a Participant for any Performance Period, the maximum level of achievement of a set of Performance Goals required for Incentive Compensation to be paid at the maximum bonus level, which shall be established by the Committee in accordance with Section 5.1 below.

Participant ” means an Eligible Employee who satisfies the eligibility requirements of Article IV of the Plan and who is selected by the Committee (or an Authorized Officer, duly appointed in accordance with Article III ) to participate in the Plan for any Performance Period.

Payment Date ” has the meaning set forth in Section 6.1 .
    
Performance Criteria ” shall have the meaning set forth in Section 5.2 below.

Performance Goals ” means the Individual Performance Goals, Business Unit Performance Goals, and Company Performance Goals established by the Committee for a Participant, the Company and/or each Business Unit for any Performance Period, as provided in Article V below.


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Performance Period ” means the period selected by the Committee for the payment of Incentive Compensation, which period shall be scheduled in good faith at the time the Performance Goals for such period are established. Unless the Committee, in its discretion, specifies other Performance Periods for the payment of Incentive Compensation hereunder, the Performance Period shall be a Fiscal Year.

Person ” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (1) the Company or any of its subsidiaries, (2) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (3) an underwriter temporarily holding securities pursuant to an offering of such securities or (4) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.
    
Plan ” has the meaning set forth in Article I .

Related Company ” means any entity that is directly or indirectly controlled by, in control of or under common control with the Company.

Target Achievement ” means, for a Participant for any Performance Period, the level of achievement of a set of Performance Goals required for Incentive Compensation to be paid at the target bonus level, which shall be established by the Committee in accordance with Section 5.1 below.

Threshold Achievement ” means, for a Participant for any Performance Period, the minimum level of achievement of a set of Performance Goals required for any Incentive Compensation to be paid at the threshold bonus level, which shall be established by the Committee in accordance with Section 5.1 below.

Article III
Administration

3.1     Committee’s Authority . Subject to the terms of this Article III , the Plan shall be administered by the Committee. For each Performance Period, the Committee shall have full authority to (i) designate the Eligible Employees who shall participate in the Plan; (ii) establish the Performance Goals and achievement levels for each Participant pursuant to Article V hereof; and (iii) determine the achievement of the Performance Goals.

3.2     Committee’s Powers . The Committee shall have the power, in its discretion, to take such actions as may be necessary to carry out the provisions and purposes of the Plan and shall have the authority to control and manage the operation and administration of the Plan. In order to effectuate the purposes of the Plan, the Committee shall have the discretionary power and authority to construe and interpret the Plan, to supply any omissions therein, to reconcile and correct any errors or inconsistencies, to decide any questions in the administration and application of the Plan, and to make equitable adjustments for any mistakes or errors made in the administration of the Plan. All such actions or determinations made by the Committee, and the application of rules and regulations to a particular case or issue by the Committee, in good faith, shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons ever interested hereunder.

To the extent permitted by applicable law, the Committee also may, in its discretion and by a resolution adopted by the Committee, authorize one or more officers of the Company (each an “ Authorized Officer ”), solely with respect to Employees who are not named executive officers of the Company or Authorized Officers, as determined by the Committee: (i) determine the amount of Incentive Compensation payable to

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such Employees in accordance with the terms of the Plan; (ii) establish Performance Goals for such Employees, and certify whether, and to what extent, such Performance Goals were achieved for the applicable Performance Period; and (iii) authorize payment to such Employees in accordance with Article VI.

In construing the Plan and in exercising its power under provisions requiring the Committee’s approval, the Committee shall attempt to ascertain the purpose of the provisions in question, and when the purpose is known or reasonably ascertainable, the purpose shall be given effect to the extent feasible. Likewise, the Committee is authorized to determine all questions with respect to the individual rights of all Participants under this Plan, including, but not limited to, all issues with respect to eligibility. The Committee shall have all powers necessary or appropriate to accomplish its duties under this Plan including, but not limited to, the power to:

(a) designate the Eligible Employees who shall participate in the Plan;

(b) maintain complete and accurate records of all Plan transactions and other data in the manner necessary for proper administration of the Plan;

(c) adopt rules of procedure and regulations necessary for the proper and efficient administration of the Plan, provided the rules and regulations are not inconsistent with the terms of the Plan as set out herein. All rules and decisions of the Committee shall be uniformly and consistently applied to all Participants in similar circumstances;

(d) enforce the terms of the Plan and the rules and regulations it adopts;

(e) review claims and render decisions on claims for benefits under the Plan;

(f) furnish the Company or the Participants, upon request, with information that the Company or the Participants may require for tax or other purposes;

(g) employ agents, attorneys, accountants or other persons (who also may be employed by or represent the Company) for such purposes as the Committee considers necessary or desirable in connection with its duties hereunder; and

(h) perform any and all other acts necessary or appropriate for the proper management and administration of the Plan.

Article IV
Eligibility

For each Performance Period, the Committee shall select the particular Eligible Employees to whom Incentive Compensation may be awarded for such Performance Period. To the extent permitted by the Committee, Employees who participate in the Plan may also participate in other incentive or benefit plans of the Company or any Related Company. Notwithstanding any provision in this Plan to the contrary, the Committee may grant one or more Awards to an Eligible Employee at any time, and from time to time, and the Committee shall have the discretion to determine whether any such Award shall be a Short-Term Award, an Annual Award or a Long-Term Award.


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Article V
Determination of Goals and Incentive Compensation

5.1     Establishment of Business Unit and Company Performance Goals . For each Performance Period, the Committee shall approve, as applicable, the following: (i)  the Business Unit Performance Goals for the Performance Period, (ii) the Company Performance Goals for the Performance Period, (iii) the Threshold Achievement, Target Achievement, and Maximum Achievement levels for the Business Unit Performance Goals and Company Performance Goals for the Performance Period, (iv) with respect to each Participant, Incentive Compensation for achievement of Threshold Achievement, Target Achievement, and Maximum Achievement levels and the relative weighting of each Performance Goal in determining the Participant’s Incentive Compensation, and (v) a schedule setting forth the payout opportunity for Threshold Achievement, Target Achievement, and Maximum Achievement levels.

5.2     Categories of Business Unit Performance Goals . The Business Unit Performance Goals, if any, established by the Committee for any Performance Period may differ among Participants and Business Units. For each Business Unit, any Business Unit Performance Goals shall be based on the performance of the Business Unit. Performance criteria for a Business Unit may be related to the achievement of financial and operating objectives of the Business Unit, and may consist of one or more of any of the following criteria: cash flows (including, but not limited to, operating cash flow, free cash flow or cash flow return on capital); working capital; earnings (and any variations thereon, including, without limitation, earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; earnings before interest, taxes, depreciation, amortization, and stock-based compensation or other similar expenses); earnings per share; book value per share; operating income (including or excluding depreciation, amortization, extraordinary items, restructuring charges or other expenses); revenues (and any variations thereon, including, without limitation, gross revenues; net revenues; revenues from products); assets under management; fees based on assets under management; monetized units or products; sales (and any variations thereon); operating margins; return on assets; return on equity; debt; debt plus equity; market or economic value added; stock price appreciation; total stockholder return; cost control; strategic initiatives; market share; net income; return on invested capital; improvements in capital structure; operational improvements; or customer satisfaction, employee satisfaction, services performance, subscriber, cash management or asset management metrics (together, the “ Performance Criteria ”). The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occurs during a performance period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (iv) any reorganization and restructuring programs, (v) extraordinary, unusual and/or non-recurring items of gain or loss, that in all of the foregoing the Company identifies in its audited financial statements, including notes to the financial statements, or the Management’s Discussion and Analysis section of the Company’s periodic reports, (vi) acquisitions or divestitures, (vii) foreign exchange gains and losses, (viii) gains and losses on asset sales, and (ix) impairments. Any Performance Criteria may be measured in absolute terms, relative to a peer group or index, relative to past performance, or as otherwise determined by the Committee.

5.3     Company Performance Goals . The Company Performance Goals, if any, established by the Committee for any Performance Period shall relate to the achievement of predetermined financial and operating objectives for the Company and its Related Companies on a consolidated basis, which consist of one or more of any combination of the factors set forth in Section 5.2 above, as applied to the Company and its Related Companies on a consolidated basis. The Company Performance Goals may be established either on an absolute or on a per share basis reflecting dilution of shares as the Committee deems appropriate and, if the Committee so determines, net of or including cash dividends. The Company Performance Goals may also be established on a relative basis as compared to the performance of a published or special index deemed

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applicable by the Committee including, but not limited to, a group of companies deemed by the Committee to be comparable to the Company.

5.4     Determination of Achievement of Performance Goals . As soon as practicable following the end of the applicable Performance Period, the Committee shall determine: (i) the extent to which each Business Unit achieved its Business Unit Performance Goals, if any, for the Performance Period, (ii) the extent to which the Company achieved its Company Performance Goals, if any, for the Performance Period, (iii) the calculation of the Participants’ Incentive Compensation, and (iv) the determination by the Committee of the amount of Incentive Compensation, if any, to be paid to each Participant for the Performance Period. In determining whether Performance Goals have been achieved and Incentive Compensation is payable for a given Performance Period, generally accepted accounting principles to the extent applicable to the Performance Goal shall be applied on a basis consistent with prior periods, and such determinations shall be based on the calculations made by the Company and binding on each Participant. If Threshold Achievement is attained with respect to a Performance Goal, then the Incentive Compensation that may be paid to such Participant with respect to such Performance Goal shall be based on the Committee’s predetermined schedule (which may allow for interpolation between achievement levels). Notwithstanding anything herein to the contrary, the Committee shall retain the discretion to increase or decrease the amount of a Participant’s Incentive Compensation, regardless of the actual achievement of the Performance Goals.

Article VI
Payment of Incentive Compensation

6.1     Form and Time of Payment . Subject to the provisions of this Article VI and except as otherwise provided herein, a Participant’s Incentive Compensation for a Performance Period shall be paid in the calendar year immediately following the close of the year in which such Performance Period ends, but no later than March 15 of such year (the “ Payment Date ”), provided that such Participant is employed by or otherwise providing services to the Company or a Related Company on such Payment Date. The payment shall be in the form of a cash lump sum payment.

6.2     Termination of Employment by Reason Other Than Death or Disability . Except as set forth in any written employment agreement in effect between the Company or Related Company and a Participant (as it may be amended, supplemented or restated from time to time), which agreement is in effect and applies to an Award, or unless the Committee determines otherwise, if a Participant’s employment with the Company and all of its Related Companies is terminated prior to the Payment Date for a Performance Period either by the Participant or the Company or Related Company for any reason other than death or Disability, then such Participant will immediately forfeit any right to receive any Incentive Compensation hereunder for such Performance Period.

6.3     Payment for Death or Disability . Unless the Committee determines otherwise, if prior to the completion of a Performance Period, a Participant’s employment is terminated by reason of the Participant’s death or Disability, then such Participant shall be eligible to receive the Incentive Compensation that would have been payable to such Participant for such Award, based on Target Achievement. If prior to the Payment Date of a Performance Period but after completion of such Performance Period, a Participant’s employment is terminated by reason of the Participant’s death or Disability, then such Participant shall be eligible to receive the Incentive Compensation that would have been payable to such Participant for such Award, based on the actual achievement of the Performance Goals in accordance with Article 5 hereof. Such Incentive Compensation shall be paid at the time and in the manner set forth in Section 6.1 hereof.


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6.4     New Hires; Promotions . Unless the Committee determines otherwise, any individual who is newly-hired or becomes an Eligible Employee during a Performance Period and who is selected by the Committee to participate in the Plan shall be eligible to receive a pro-rata portion of the Incentive Compensation to which he or she could have been entitled if he or she had been employed for the full Performance Period, based on the number of days worked during the Performance Period and based on the achievement of the Performance Goals in accordance with Article 5 hereof. Such Incentive Compensation shall be paid at the time and in the manner set forth in Section 6.1 hereof.

6.5     Recoupment for Restatements . Notwithstanding any other language in this Plan, the Committee may recoup all or any portion of any Incentive Compensation paid to a Participant, in the event (i) such Incentive Compensation is paid prior to public disclosure of the Company’s financial statements, and the amount payable based on such financial statements would be materially lower than the amount actually paid to such Participant, or (ii) a restatement of the Company’s financial statements to the extent that the amount of the Incentive Compensation would have been lower if the Company’s financial statements had been as restated, in each case, as determined by the Committee.

Article VII
Miscellaneous Provisions

7.1     Non‑Assignability . A Participant may not alienate, assign, pledge, encumber, transfer, sell or otherwise dispose of any rights or benefits awarded hereunder prior to the actual receipt thereof; and any attempt to alienate, assign, pledge, sell, transfer or assign prior to such receipt, or any levy, attachment, execution or similar process upon any such rights or benefits shall be null and void ab initio .

7.2     No Right To Continue In Employment . Nothing in the Plan confers upon any Employee the right to continue in the employ of the Company or any Related Company, or interferes with or restricts in any way the right of the Company and its Related Companies to discharge any Employee at any time (subject to any contract rights of such Employee), including, without limitation, before or after the date such Participant is entitled to payment with respect to an Award.

7.3     Indemnification of Committee; No Duties; Waiver of Claims . No member of the Committee, nor any officer or Employee of the Company acting with or on behalf of the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all of the members of the Committee and each and any officer or Employee of the Company acting with or on their behalf shall be indemnified and protected by the Company in respect of any such action, determination, or interpretation to the fullest extent provided by law. Except to the extent required by any unwaiveable requirement under applicable law, no member of the Committee (and no officer, Employee, Related Company or Affiliate of the Company) shall have any duties or liabilities, including without limitation any fiduciary duties, to any Participant (or any Person claiming by and through any Participant) as a result of this Plan, any Award or any Claim arising hereunder and, to the fullest extent permitted under applicable law, each Participant (as consideration for receiving and accepting an Award) irrevocably waives and releases any right or opportunity such Participant might have to assert (or participate or cooperate in) any Claim against any member of the Committee and any officer, Employee, Related Company or Affiliate of the Company arising out of this Plan.

7.4     No Trust or Plan Funding . The Company (and not any of its Related Companies or Affiliates) will be solely responsible for the payment of all amounts hereunder. The Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Company for payment of any amounts hereunder. Neither the Plan nor any Award shall create or be construed to create

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a trust or separate fund of any kind or a fiduciary relationship between the Company and any Participant. No Participant, beneficiary, or other person shall have any interest in any particular assets of the Company (or any of its Related Companies or Affiliates) by reason of the right to receive any Incentive Compensation under the Plan. To the extent that any Participant acquires a right to receive any payment from the Company pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company.

7.5     Governing Law . This Plan shall be construed in accordance with the laws of the State of Delaware, without giving effect to principles of conflict of laws, and the rights and obligations created hereby shall be governed by the laws of the State of Delaware. The Participant’s sole remedy for any claim, liability or obligation of any nature, arising out of or relating to this Plan or an alleged breach of this Plan, or an Award (collectively, “ Claims ”) shall be against the Company, and no Participant shall have any claim or right of any nature against any Related Company, Affiliate of the Company or any owner or existing or former director, officer or Employee of the Company, any Related Company or any Affiliate of the Company. The individuals and entities described above in this Section 7.5 (other than the Company) shall be third-party beneficiaries of this Plan for purposes of enforcing the terms of this Section 7.5 .

7.6     Binding Effect . This Plan shall be binding upon and inure to the benefit of the Company, its successors and assigns, and the Participants, and their heirs, assigns, and personal representatives.

7.7     Construction of Plan . The captions used in this Plan are for convenience only and shall not be construed in interpreting the Plan. Whenever the context so requires, the masculine shall include the feminine and neuter, and the singular shall also include the plural, and conversely.

7.8     Independent Agreements . If any provision of the Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining provisions hereof; instead, each provision shall be fully severable and the Plan shall be construed and enforced as if said illegal or invalid provision had never been included herein.

7.9     Integrated Plan . With respect to each Participant, this Plan and the Award Letter to such Participant constitute the final and complete expression of agreement with respect to the subject matter.

7.10     Tax Requirements . The Company (and, where applicable, its Related Companies) shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy applicable taxes required by law to be withheld with respect to any payment of any Incentive Compensation to a Participant.

7.11     Accounting of Compensation . Unless otherwise specifically provided in such benefit plan, any amounts paid to a Participant hereunder shall not be treated as compensation paid to such Participant for the purposes of any other benefit plan.

7.12     Corporate Transactions . The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the Company to consummate or authorize any merger or consolidation of the Company, the liquidation or dissolution of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

7.13     Adjustments . In the event of (a) any merger, reorganization, consolidation, recapitalization, liquidation, reclassification, stock dividend, stock split, combination of shares, rights, offering, extraordinary dividend (including a spin-off), or other similar change affecting the Company’s common stock; (b) any

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purchase, acquisition, sale, or disposition of a significant amount of assets other than in the ordinary course of business, or of a significant business; (c) any change resulting from the accounting effects of discontinued operations, extraordinary income or loss, changes in accounting as determined under generally accepted accounting principles, or restatement of earnings; or (d) any charge or credit resulting from an item which is classified as unusual or infrequently occurring, or non-recurring item on the Company’s audited financial statements which, in the case of (a) – (d), results in a change in the components of the calculations of any of the criteria upon which the Performance Goals are based, as established by the Committee, in each case with respect to the Company or any other entity whose performance is relevant to the achievement of any Performance Goal included in an Award, the Committee shall, without the consent of any affected Participant, amend or modify the terms of any outstanding Award that includes any Performance Goal based in whole or in part on the financial performance of the Company (or any Related Company or division thereof) or such other entity so as equitably to reflect such event or events, such that the criteria for evaluating such financial performance of the Company or such other entity (and the achievement of the corresponding Performance Goal) will be substantially the same (as determined by the Committee or the committee of the board of directors of the surviving corporation) following such event as prior to such event.

7.14     Notices . Any notices required or permitted under this Plan or an Award Letter shall be given in writing and shall be deemed to have been effectively made or given if personally delivered, or if sent via U.S. mail or recognized overnight delivery service or sent via confirmed e-mail or facsimile to the Company at its principal corporate office in Irving, Texas, or if to a Participant, to such Participant’s last known address on file with the Company. Any effective notice hereunder shall be deemed given on the date personally delivered, three business days after mailed via U.S. mail or one business day after it is sent via overnight delivery service or via confirmed e-mail or facsimile, as the case may be.

7.15     Section 409A . It is the Company’s intention that the Plan meets the requirements of Section 409A by its terms and in operation so that Incentive Compensation under the Plan is either exempt from or compliant with Section 409A such that no amounts shall be included in income under Section 409A. Any ambiguities in the Plan shall be construed to reflect this intent. If any term or provision of the Plan is found to be in violation of Section 409A, then such term or provision shall be deemed to be restricted and/or modified in the manner and to the extent necessary to render such term or provision in conformity with Section 409A, or shall be deemed removed from the Plan, and the Plan shall be construed and enforced to the maximum extent permitted by Section 409A as if such term or provision had been originally incorporated in the Plan as so restricted and/or modified, or as if such term or provision had not been originally incorporated in the Plan, as the case may be. To the extent (i) any payment to which a Participant becomes entitled under this Plan in connection with the Participant’s termination of service with the Company (for reasons other than death) constitutes a payment of deferred compensation subject to Code Section 409A, and (ii) the Participant is deemed at the time of such termination to be a “specified employee” under Code Section 409A to whom the following provisions must apply, then such payment shall not be made or commence until the earliest of (A) the expiration of the six (6) month period measured from the date of Participant’s termination of service with the Company; or (B) the date of the Participant’s death following such termination of service. Upon the expiration of the applicable deferral period, any payment which would have otherwise been made during that period in the absence of this Section 7.15 shall be made to the Participant or the Participant’s beneficiary.

Article VIII
Amendment or Discontinuance

Notwithstanding anything herein to the contrary, the Committee or the Board may terminate at any time, or from time to time amend, modify, or suspend the Plan. The Committee or the Board may make any

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amendment to any outstanding Award that it believes is necessary or helpful to comply with any applicable law including, without limitation, Section 409A. However, without the prior consent of affected Participant, no such action may adversely affect any rights or obligations with respect to any Award earned, regardless of whether the amounts have been calculated or paid.

Article IX
Effect of the Plan

Neither the adoption of this Plan nor any action of the Board or the Committee shall be deemed to give any Participant any right to be granted Incentive Compensation or any other rights. In addition, nothing contained in this Plan and no action taken pursuant to its provisions shall be construed to (a) give any Participant any right to any compensation, except as expressly provided herein; (b) be evidence of any agreement, contract or understanding, express or implied, that the Company or any Related Company will employ a Participant in any particular position; (c) give any Participant any right, title, or interest whatsoever in or to any investments which the Company may make to aid it in meeting its obligations hereunder; or (d) create a trust of any kind or a fiduciary relationship between the Company and a Participant or any other person.

Article X
Term

The effective date of this Plan shall be as of January 1, 2018. This Plan shall remain in effect until it is terminated by the Committee or the Board.


* * * * * * * *


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IN WITNESS WHEREOF, the Company has caused this instrument to be executed as of February 16, 2018, by its Chief Executive Officer pursuant to prior action taken by the Board.
BLUCORA, INC.
By:     /s/ John S. Clendening   
Name:     John S. Clendening    
Title: Chief Executive Officer    





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Exhibit 10.2
BLUCORA, INC.
2015 INCENTIVE PLAN
FORM OF NONQUALIFIED STOCK OPTION GRANT NOTICE FOR EXECUTIVE OFFICERS

TO:                  (the “ Participant ” or “ you ”)

FROM:     Blucora, Inc., a Delaware corporation (the “ Company ”)

The Company is pleased to inform you that you have been selected to receive and are hereby granted by the Company a stock option (the “ Option ”) to purchase shares of the Company’s Common Stock (“ Shares ”) under the Blucora, Inc. 2015 Incentive Plan, as amended and restated (the “ 2015 Plan ”).

The Option is subject to all the terms and conditions set forth in this Nonqualified Stock Option Grant Notice (the “ Notice of Grant ”) and in the Stock Option Agreement attached hereto as Exhibit A (the “ Agreement ”) and the 2015 Plan, each of which are incorporated into this Notice of Grant by reference. Capitalized terms that are not defined in the Notice of Grant shall have the meanings given to them in the Agreement, and if not defined in the Agreement, the meanings given to them in the 2015 Plan.




Grant Date:
 
 
 
Option Number:
 
 
 
Number of Shares:
 
 
 
Exercise Price per Share:
 
 
 
Option Expiration Date:
 
 
 
Vesting Commencement Date:
 
 
 
Type of Option:
Nonqualified Stock Option


Vesting and Exercisability Schedule: Except as specifically provided in the Agreement and subject to the restrictions and conditions set forth in the 2015 Plan, the Option shall vest and become exercisable as follows:

(i)
[Vesting provisions to be inserted].

Vesting will cease upon your Termination of Service and the unvested portion of the Option will immediately terminate. Notwithstanding the foregoing, upon the occurrence of a Termination of Service due to (i) your death or Disability, to the extent not already vested, the Option shall become fully vested and exercisable as of the date of such Termination of Service; or (ii) your Retirement on or after the first anniversary of the Grant Date, to the extent not already vested, the Option shall become fully vested and exercisable as of the date of such Termination of Service. For purposes of this Option, the term “ Retirement ” shall mean your voluntary Termination of Service on or after your attainment of (i) age sixty (60) and five (5) years of service with the Company or any Related Company, (ii) age fifty-five (55) and ten (10) years of service with the Company or any Related Company, or (iii) any age with twenty (20) years of service with the Company or any Related Company; provided, however , that if at any time the Committee determines that your Termination of Service should be a Termination of Service for Cause, then your Termination of Service will no longer be due to your Retirement and the Option shall immediately be forfeited.

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Additional Terms/Acknowledgment: You acknowledge and agree that the Notice of Grant and the vesting and exercisability schedule set forth herein do not constitute an express or implied promise of your continued engagement as an employee, officer, director or other service provider for the vesting period, for any period, or at all, and shall not interfere with your right or the Company’s right to terminate your employment or service relationship with the Company or its Related Companies at any time, with or without Cause.

Employment Agreement: If there is a written employment agreement in effect between you and the Company (the “ Employment Agreement ”), then the Option shall be subject to the terms of such Employment Agreement, so long as such Employment Agreement remains in effect (as it may be amended, supplemented or restated from time to time) and the terms set forth in the Employment Agreement are applicable to the Option.

Committee Decisions/Interpretations: You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the 2015 Plan and the Option.

* * * * * * *
[ Remainder of Page Intentionally Left Blank
Signature Page Follows .]

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By your signature below, you agree that the Notice of Grant, the Agreement, the 2015 Plan, and the Employment Agreement (if applicable), constitute your entire agreement with respect to the Option, and except as set forth therein, may not be modified except by means of a writing signed by the Company and you.

BLUCORA, INC.
 
PARTICIPANT
 
 
 
By:                                                                          
 
 
 
 
Signature
Its:                                                                          
 
 
 
 
Date:                                                               
Attachments:
1. Stock Option Agreement
2. 2015 Incentive Plan
 
 



Signature Page to Notice of Grant



EXHIBIT A
BLUCORA, INC.
2015 INCENTIVE PLAN
STOCK OPTION AGREEMENT

1. Grant. The Company hereby grants to the Participant listed on the Notice of Grant (the “ Participant ”) an Option to purchase the number of Shares and at the exercise price as set forth in the Notice of Grant and subject to the terms and conditions in this Stock Option Agreement (this “ Agreement ”) and the 2015 Plan. Unless otherwise defined herein, the capitalized terms used herein shall have the meanings given to them in the Notice of Grant, and if not defined in the Notice of Grant, the meanings given to them in the 2015 Plan.
2.      Company’s Obligation. Unless and until the Option vests and is exercised, the Participant will have no right to receive Shares under the Option. Prior to actual distribution of Shares pursuant to any vested and exercised Option, such Option will represent an unsecured obligation of the Company.
3.      Vesting and Exercisability. Subject to the limitations contained herein, the Option will vest and become exercisable as provided in the Notice of Grant. Any portion of the Option that is vested may be exercised at any time during the period prior to the date the Option terminates. No partial exercise of the Option may be for less than five percent (5%) of the total number of Shares then available under the Option. In no event shall the Company be required to issue fractional Shares.
4.      Termination of Option . The unvested portion of the Option will terminate automatically and without further notice immediately upon the Participant’s Termination of Service (voluntary or involuntary). The vested portion of the Option will terminate automatically and without further notice on the earliest of the dates set forth below:
a.      three (3) months after the Participant’s Termination of Service for any reason other than Retirement, Disability or death;
b.      one (1) year after the Participant’s Termination of Service by reason of Retirement, Disability or death;
c.      immediately upon notification to the Participant of the Participant’s Termination of Service for Cause, unless the Committee determines otherwise. If the Participant’s employment or service relationship is suspended pending an investigation of whether he or she will be terminated for Cause, all of the Participant’s rights under the Option likewise will be suspended during the period of investigation. If any facts that would constitute termination for Cause are discovered after the Participant’s Termination of Service, any Option the Participant then holds may be immediately terminated by the Committee; or

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d.      the Option Expiration Date.
IT IS THE PARTICIPANT’S RESPONSIBILITY TO BE AWARE OF THE DATE ON WHICH THE OPTION TERMINATES.
5.      Leave of Absence. The effect of a Company-approved leave of absence on the terms and conditions of the Option will be determined by the Committee, subject to applicable laws.
6.      Method of Exercise. The Participant may exercise the Option by giving written notice to the Company, in form and substance satisfactory to the Company, which will state the election to exercise the Option and the number of Shares for which the Participant is exercising the Option. The written notice must be accompanied by full payment of the exercise price for the number of Shares that are being purchased.
7.      Form of Payment. The Participant may pay the Option exercise price, in whole or in part, (a) in cash; (b) by wire transfer or check acceptable to the Company; (c) if permitted by the Committee, having the Company withhold Shares that would otherwise be issued on exercise of the Option that have an aggregate Fair Market Value equal to the aggregate exercise price of the Shares being purchased under the Option; (d) if permitted by the Committee, tendering (either actually or, so long as the Shares are registered under Section 12(b) or 12(g) of the Exchange Act, by attestation) Shares owned by the Participant that have an aggregate Fair Market Value equal to the aggregate exercise price of the Shares being purchased under the Option; (e) unless the Committee determines otherwise and so long as the Shares are registered under Section 12(b) or 12(g) of the Exchange Act, and to the extent permitted by law, by delivery of a properly executed exercise agreement or notice, together with irrevocable instructions to a brokerage firm designated or approved by the Company to promptly deliver to the Company the aggregate amount of proceeds to pay the Option exercise price; or (e) such other consideration as the Committee may permit.
8.      Withholding Taxes. As a condition to the exercise of any portion of the Option, the Participant must make such arrangements as the Company may require for the satisfaction of any federal, state or local withholding tax obligations that may arise in connection with such exercise. The Company may permit or require the Participant to satisfy all or part of the Participant’s tax withholding obligations by (a) paying cash to the Company or a Related Company, as applicable; (b) having the Company or a Related Company, as applicable, withhold an amount from any cash amounts otherwise due or to become due from the Company or a Related Company, as applicable, to the Participant; (c) having the Company withhold a number of Shares that would otherwise be issued to the Participant having a Fair Market Value equal to the tax withholding obligations; or (d) surrendering a number of Shares the Participant already owns having a Fair Market Value equal to the tax withholding obligations. The value of the Shares so withheld or tendered may not exceed the employer’s minimum required tax withholding rate.
9.      Limited Transferability; Who May Exercise. The Option may not be sold, assigned, pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose) or transferred by the Participant or made subject to attachment or similar

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proceedings otherwise than by will or by the applicable laws of descent and distribution, except to the extent the Participant designates one or more beneficiaries on a Company-approved form who may exercise the Option after the Participant’s death. Notwithstanding the foregoing, the Committee, in its sole discretion, may permit the Participant to assign or transfer the Option, subject to such terms and conditions as specified by the Committee. During the Participant’s lifetime only the Participant may exercise the Option. The Option may be exercised by the personal representative of the Participant’s estate or the beneficiary thereof following the Participant’s death.
10.      Regulatory Restrictions on Issuance of Shares Notwithstanding the other provisions of this Agreement, if at any time the Company determines, in its sole discretion, that the listing, registration or qualification of Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company. The Company shall be under no obligation to the Participant to register for offering or resale or to qualify for exemption under the Securities Act, or to register or qualify under the laws of any state or foreign jurisdiction, any Shares, security or interest in a security paid or issued under, or created by, the 2015 Plan, or to continue in effect any such registrations or qualifications if made.
11.      Participant’s Representations . Notwithstanding any of the provisions hereof, the Participant hereby agrees that the Participant will not exercise the Option, and that the Company will not be obligated to issue any Shares to the Participant, if the exercise thereof or the issuance of such Shares shall constitute a violation by the Participant or the Company of any provision of any law or regulation of any governmental authority. Any determination in this connection by the Committee shall be final, binding, and conclusive. The obligations of the Company and the rights of the Participant are subject to all applicable laws, rules, and regulations.
12.      Investment Representation . Unless the Shares are issued to the Participant in a transaction registered under applicable federal and state securities laws, the Participant represents and warrants to the Company that all Shares which may be purchased hereunder will be acquired by the Participant for investment purposes for his or her own account and not with any intent for resale or distribution in violation of federal or state securities laws. Unless the Shares are issued to the Participant in a transaction registered under the applicable federal and state securities laws, at the option of the Company, a stop-transfer order against the Shares may be placed on the official stock books and records of the Company, and a legend indicating that such Shares may not be pledged, sold or otherwise transferred, unless an opinion of counsel is provided (concurred in by counsel for the Company) stating that such transfer is not in violation of any applicable law or regulation, may be stamped on stock certificates to ensure exemption from registration. The Company may require such other action or agreement by the Participant as may from time to time be necessary to comply with the federal, state and foreign securities laws.

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13.      Binding Agreement. Subject to the limitation on the transferability of the Option contained herein, this Agreement will be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors and assigns.
14.      No Stockholder Rights. Neither the Participant nor any person entitled to exercise the Participant’s rights in the event of the Participant’s death shall have any of the rights of a stockholder with respect to the Shares subject to the Option unless and until the date of issuance under the 2015 Plan of any such Shares upon the exercise of the Option. Except as otherwise provided in Paragraph 15 hereof, no adjustment shall be made for dividends or other rights for which the record date is prior to the issuance of any Shares subject to the Option. The Participant agrees to execute any documents requested by the Company in connection with the issuance of any Shares .
15.      Adjustments. The number of Shares covered by the Option, and the exercise price thereof, shall be subject to adjustment in accordance with Section 15 of the 2015 Plan.
16.      Notices. Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by interoffice mail, by fax, by electronic mail or other electronic means, or via a postal service, postage prepaid, to such electronic mail or postal address and directed to such person as the Company may notify the Participant from time to time; and to the Participant at the Participant’s electronic mail or postal address as shown on the records of the Company from time to time, or at such other electronic mail or postal address as the Participant, by notice to the Company, may designate in writing from time to time.
17.      Committee Authority; Decisions Conclusive and Binding. The Participant acknowledges that a copy of the 2015 Plan has been made available for his or her review by the Company, and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all the terms and provisions thereof. The Committee will have the power to interpret this Agreement, the Notice of Grant and the 2015 Plan, and to adopt such rules for the administration, interpretation and application of the 2015 Plan as are consistent therewith and to interpret or revoke any such rules. The Participant hereby agrees to accept as binding, conclusive, and final all decisions of the Committee upon any questions arising under the 2015 Plan, this Agreement or the Notice of Grant. No member of the Committee will be personally liable for any action, determination or interpretation made in good faith with respect to the 2015 Plan, this Agreement or the Notice of Grant.
18.      No Effect on Employment or Service Relationship. Nothing in the 2015 Plan or any Award granted under the 2015 Plan will be deemed to constitute an employment contract or confer or be deemed to confer any right for the Participant to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit in any way the right of the Company or any Related Company to terminate the Participant’s employment or other service relationship at any time, with or without Cause.

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19.      No Right to Damages. The Participant will have no right to bring a claim or to receive damages if the Participant is required to exercise the vested portion of the Option within three (3) months (or one (1) year in the case of Disability or death) of the Participant’s Termination of Service or if any portion of the Option is cancelled or expires unexercised. The loss of existing or potential profit in the Option will not constitute an element of damages in the event of the Participant’s Termination of Service for any reason even if the termination is in violation of an obligation of the Company or a Related Company to the Participant.
20.      Claims. The Participant’s sole remedy for any Claim (as defined below) shall be against the Company, and the Participant shall not have any claim or right of any nature against any Related Company (including, without limitation, any parent, subsidiary or affiliate of the Company) or any stockholder or existing or former director, officer or employee of the Company or any Related Company. The foregoing individuals and entities (other than the Company) shall be third-party beneficiaries of this Agreement for purposes of enforcing the terms of this Paragraph 20. The term “ Claim ” means any claim, liability or obligation of any nature, arising out of or relating to this Agreement, the Notice of Grant or the 2015 Plan or an alleged breach of this Agreement, the Notice of Grant or the 2015 Plan.
21.      Covenants and Agreements as Independent Agreements . Each of the covenants and agreements that is set forth in this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or cause of action of the Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement.
22.      Section 409A. The Option is intended to be exempt from the requirements of Section 409A or to satisfy those requirements, and shall be construed accordingly.
23.      Governing Law; Venue. The validity, interpretation, construction and performance of this Agreement shall be governed by the internal substantive laws of the State of Delaware, without reference to any choice-of-law rules. The Participant irrevocably consents to the nonexclusive jurisdiction and venue of the state and federal courts located in the State of Delaware.
24.      Recovery of Compensation. In accordance with Section 18.12 of the 2015 Plan, the Option is subject to the requirements of (a) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder, (b) similar rules under the laws of any other jurisdiction, (c) any compensation recovery or clawback policies adopted by the Company to implement any such requirements, and (d) any other compensation recovery policies as may be adopted from time to time by the Company, all to the extent determined by the Committee in its discretion to be applicable to the Participant.
25.      Conflicting Terms; 2015 Plan Governs. This Agreement and the Notice of Grant are subject to all terms and provisions of the 2015 Plan. In the event of a conflict between one or

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more provisions of this Agreement or the Notice of Grant and one or more provisions of the 2015 Plan, the provisions of the 2015 Plan will govern.
26.      Entire Agreement; Employment Agreement . This Agreement together with the Notice of Grant and the 2015 Plan supersede any and all other prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior negotiations and agreements between the parties with respect to the subject matter hereof are merged into this Agreement and the Notice of Grant. Each party to this Agreement and the Notice of Grant acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement, the Notice of Grant or the 2015 Plan and that any agreement, statement, or promise that is not contained in this Agreement, the Notice of Grant or the 2015 Plan shall not be valid or binding or of any force or effect. Notwithstanding anything to the contrary contained in the Notice of Grant, this Agreement or in the 2015 Plan, in the event of any conflict between the terms and conditions of the Option as set forth in the Notice of Grant, this Agreement and in the 2015 Plan, as the case may be, and the terms and conditions of the Employment Agreement, the terms and conditions of the Employment Agreement shall govern unless the conflicting provision in the Notice of Grant, this Agreement or in the 2015 Plan, as the case may be, is more favorable to the Participant; in which case, the provision more favorable to the Participant shall govern; provided, however, that notwithstanding the foregoing, in no event shall any extended exercise period set forth in the Employment Agreement modify or extend the Option Expiration Date as set forth in the Notice of Grant.
27.      Modification . No change or modification of this Agreement or the Notice of Grant shall be valid or binding upon the parties unless the change or modification is in writing and signed by the parties; provided, however, that the Company may change or modify this Agreement or the Notice of Grant without the Participant’s consent or signature if the Company determines, in its sole discretion, that such change or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder. Notwithstanding the preceding sentence, the Company may amend the 2015 Plan to the extent permitted by the 2015 Plan.

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Exhibit 10.3


BLUCORA, INC.
2015 INCENTIVE PLAN
FORM OF RESTRICTED STOCK UNIT GRANT NOTICE
FOR TIME-BASED RESTRICTED STOCK UNITS TO EXECUTIVE OFFICERS

TO:                  (the “ Participant ” or “ you ”)

FROM:     Blucora, Inc., a Delaware corporation (the “ Company ”)

The Company is pleased to inform you that you have been selected to receive and are hereby granted by the Company a Restricted Stock Unit Award (the “ Award ”) under the Blucora, Inc. 2015 Incentive Plan, as amended and restated (the “ 2015 Plan ”). Each restricted stock unit (an “ RSU ”) subject to the Award has a notional value equivalent to one share of the Company’s Common Stock for purposes of determining the number of shares of Common Stock (the “ Shares ”) subject to the Award.

The Award is subject to all the terms and conditions set forth in this Restricted Stock Unit Grant Notice (the " Notice of Grant ") and in the Restricted Stock Unit Agreement attached hereto as Exhibit A (the “ Agreement ”) and the 2015 Plan, each of which are incorporated by reference into this Notice of Grant. Capitalized terms that are not defined in the Notice of Grant shall have the meanings given to them in the Agreement, and if not defined in the Agreement, the meanings given to them in the 2015 Plan.

Grant Date:
 
 
 
Option Number:
 
 
 
Number of RSUs
Subject to the Award:
 
 
 
Vesting Commencement Date:
 
 
 


Vesting Schedule: Except as specifically provided in the Agreement and subject to the restrictions and conditions set forth in the 2015 Plan, the RSUs shall vest as follows:





(i)
[Vesting provisions to be inserted].

Vesting will cease upon your Termination of Service and the unvested portion of the Award will immediately terminate. Notwithstanding the foregoing, upon the occurrence of a Termination of Service due to (i) your death or Disability, to the extent not already vested, the RSUs shall become fully vested as of the date of such Termination of Service; or (ii) your Retirement on or after the first anniversary of the Grant Date, to the extent not already vested, the RSUs shall become fully vested as of the date of such Termination of Service. For purposes of this Award, the term “ Retirement ” shall mean your voluntary Termination of Service on or after your attainment of (i) age sixty (60) and five (5) years of service with the Company or any Related Company, (ii) age fifty-five (55) and ten (10) years of service with the Company or any Related Company, or (iii) any age with twenty (20) years of service with the Company or any Related Company; provided, however , that if at any time the Committee determines that your Termination of Service should be a Termination of Service for Cause, then your Termination of Service will no longer be due to your Retirement and all RSUs shall immediately be forfeited.

Additional Terms/Acknowledgment: You acknowledge and agree that the Notice of Grant and the vesting schedule set forth herein do not constitute an express or implied promise of your continued engagement as an employee, officer, director or other service provider for the vesting period, for any period, or at all, and shall not interfere with your right or the Company’s right to terminate your employment or service relationship with the Company or its Related Companies at any time, with or without Cause.

Employment Agreement: If there is a written employment agreement in effect between you and the Company (the “ Employment Agreement ”), then the Award shall be subject to the terms of such Employment Agreement, so long as such Employment Agreement remains in effect (as it may be amended, supplemented or restated from time to time) and the terms set forth in the Employment Agreement are applicable to the Award.

Committee Decisions/Interpretations: You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the 2015 Plan and the Award.

* * * * * * *
[ Remainder of Page Intentionally Left Blank
Signature Page Follows .]

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By your signature below, you agree that the Notice of Grant, the Agreement, the 2015 Plan, and the Employment Agreement (if applicable), constitute your entire agreement with respect to the Award, and except as set forth therein, may not be modified except by means of a writing signed by the Company and you.


BLUCORA, INC.
 
PARTICIPANT
 
 
 
By:                                                                          
 
 
 
 
Signature
Its:                                                                          
 
 
 
 
Date:                                                               
Attachments:
1. Restricted Stock Unit Agreement
2. 2015 Incentive Plan
 
 




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EXHIBIT A
BLUCORA, INC.
2015 INCENTIVE PLAN
RESTRICTED STOCK UNIT AGREEMENT

1. Grant. The Company hereby grants to the Participant listed on the Notice of Grant (the “ Participant ”) an Award of RSUs, as set forth in the Notice of Grant and subject to the terms and conditions in this Restricted Stock Unit Agreement (this “ Agreement ”) and the 2015 Plan. Unless otherwise defined herein, the capitalized terms used herein shall have the meanings given to them in the Notice of Grant, and if not defined in the Notice of Grant, the meanings given to them in the 2015 Plan.
2.      Company’s Obligation. Each RSU represents the right to receive a Share on the vesting date. Unless and until the RSUs vest, the Participant will have no right to receive Shares under such RSUs. Prior to actual distribution of Shares pursuant to any vested RSUs, such RSUs will represent an unsecured obligation of the Company.
3.      Vesting Schedule. Subject to Paragraph 4 hereof, to Section 10.2 of the 2015 Plan and to any other relevant 2015 Plan provisions, the RSUs awarded by this Agreement will vest according to the vesting schedule specified in the Notice of Grant. The effect of a Company approved unpaid leave of absence on the terms and conditions of the RSUs will be determined by the Committee, subject to applicable laws.
4.      Forfeiture upon Termination of Service. Except as provided in the Notice of Grant, if the Participant has a Termination of Service for any or no reason prior to vesting, the unvested RSUs awarded by this Agreement will thereupon be forfeited at no cost to the Company.
5.      Payment After Vesting. Subject to Paragraph 21 hereof, any RSUs that vest in accordance with Paragraph 3 will be paid to the Participant (or in the event of the Participant’s death, to his or her estate) in Shares on, or as soon as practicable after, the applicable vesting date (but in any event, within sixty (60) days of the date on which the RSUs vest).
6.      Withholding Taxes. As a condition to the payment of any vested RSUs, the Participant must make such arrangements as the Company may require for the satisfaction of any federal, state or local withholding tax obligations that may arise in connection with such payment. The Company may permit or require the Participant to satisfy all or part of the Participant’s tax withholding obligations by (a) paying cash to the Company or a Related Company, as applicable; (b) having the Company or a Related Company, as applicable, withhold an amount from any cash amounts otherwise due or to become due from the Company or a Related Company, as applicable, to the Participant; (c) having the Company withhold a number of Shares that would otherwise be issued to the Participant having a Fair Market Value equal to the tax withholding obligations; or (d) surrendering a number of Shares the Participant already owns having a Fair Market Value equal

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to the tax withholding obligations. The value of the Shares so withheld or tendered may not exceed the employer’s minimum required tax withholding rate.
7.      Payments After Death. Any distribution or delivery to be made to the Participant under this Agreement will, if the Participant is then deceased, be made to the administrator or executor of the Participant’s estate. Any such administrator or executor must furnish the Company with (a) written notice of his or her status as transferee and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.
8.      Rights as Stockholder. Neither the Participant nor any person claiming under or through the Participant will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until the date of issuance of any such Shares under the 2015 Plan. Except as otherwise provided in Paragraph 9, no adjustment shall be made for dividends or other rights for which the record date is prior to the issuance of any Shares subject to the Award. The Participant agrees to execute any documents requested by the Company in connection with the issuance of any Shares .
9.      Adjustments. The number of Shares covered by the Award shall be subject to adjustment in accordance with Section 15 of the 2015 Plan.
10.      No Effect on Employment or Service Relationship. Nothing in the 2015 Plan or any Award granted under the 2015 Plan will be deemed to constitute an employment contract or confer or be deemed to confer any right for the Participant to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit in any way the right of the Company or any Related Company to terminate the Participant’s employment or other service relationship at any time, with or without Cause.
11.      Notices. Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by interoffice mail, by fax, by electronic mail or other electronic means, or via a postal service, postage prepaid, to such electronic mail or postal address and directed to such person as the Company may notify the Participant from time to time; and to the Participant at the Participant’s electronic mail or postal address as shown on the records of the Company from time to time, or at such other electronic mail or postal address as the Participant, by notice to the Company, may designate in writing from time to time.
12.      Award Is Not Transferable. Except to the limited extent provided in Paragraph 7, the Award and the rights and privileges conferred hereby may not be transferred, assigned, pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose) or hypothecated in any way (whether by operation of law or otherwise) and may not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the Award, or any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar process, the Award and the rights and privileges conferred hereby immediately will become null and void.

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13.      Binding Agreement. Subject to the limitation on the transferability of the Award contained herein, this Agreement will be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors and assigns.
14.      Regulatory Restrictions on Issuance of Shares. Notwithstanding the other provisions of this Agreement, if at any time the Company determines, in its sole discretion, that the listing, registration or qualification of Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company. The Company shall be under no obligation to the Participant to register for offering or resale or to qualify for exemption under the Securities Act, or to register or qualify under the laws of any state or foreign jurisdiction, any Shares, security or interest in a security paid or issued under, or created by, the 2015 Plan, or to continue in effect any such registrations or qualifications if made.
15.      Participant’s Representations . Notwithstanding any of the provisions hereof, the Participant hereby agrees that the Company will not be obligated to issue any Shares to the Participant if the issuance of such Shares shall constitute a violation by the Participant or the Company of any provision of any law or regulation of any governmental authority. Any determination in this connection by the Committee shall be final, binding, and conclusive. The obligations of the Company and the rights of the Participant are subject to all applicable laws, rules, and regulations.
16.      Investment Representation . Unless the Shares are issued to the Participant in a transaction registered under applicable federal and state securities laws, the Participant represents and warrants to the Company that all Shares which may be issued hereunder will be acquired by the Participant for investment purposes for his or her own account and not with any intent for resale or distribution in violation of federal or state securities laws. Unless the Shares are issued to the Participant in a transaction registered under the applicable federal and state securities laws, at the option of the Company, a stop-transfer order against the Shares may be placed on the official stock books and records of the Company, and a legend indicating that such Shares may not be pledged, sold or otherwise transferred, unless an opinion of counsel is provided (concurred in by counsel for the Company) stating that such transfer is not in violation of any applicable law or regulation, may be stamped on stock certificates to ensure exemption from registration. The Company may require such other action or agreement by the Participant as may from time to time be necessary to comply with the federal, state and foreign securities laws.
17.      Conflicting Terms; 2015 Plan Governs. This Agreement and the Notice of Grant are subject to all terms and provisions of the 2015 Plan. In the event of a conflict between one or more provisions of this Agreement or the Notice of Grant and one or more provisions of the 2015 Plan, the provisions of the 2015 Plan will govern.
18.      Committee Authority; Decisions Conclusive and Binding. The Participant acknowledges that a copy of the 2015 Plan has been made available for his or her review by the

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Company, and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all the terms and provisions thereof. The Committee will have the power to interpret this Agreement, the Notice of Grant and the 2015 Plan, and to adopt such rules for the administration, interpretation and application of the 2015 Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any RSUs have vested). The Participant hereby agrees to accept as binding, conclusive, and final all decisions of the Committee upon any questions arising under the 2015 Plan, this Agreement or the Notice of Grant. No member of the Committee will be personally liable for any action, determination or interpretation made in good faith with respect to the 2015 Plan, this Agreement or the Notice of Grant.
19.      Claims. The Participant’s sole remedy for any Claim (as defined below) shall be against the Company, and the Participant shall not have any claim or right of any nature against any Related Company (including, without limitation, any parent, subsidiary or affiliate of the Company) or any stockholder or existing or former director, officer or employee of the Company or any Related Company. The foregoing individuals and entities (other than the Company) shall be third-party beneficiaries of this Agreement for purposes of enforcing the terms of this Paragraph 19. The term “ Claim ” means any claim, liability or obligation of any nature, arising out of or relating to this Agreement, the Notice of Grant or the 2015 Plan or an alleged breach of this Agreement, the Notice of Grant or the 2015 Plan.
20.      Covenants and Agreements as Independent Agreements . Each of the covenants and agreements that is set forth in this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or cause of action of the Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement.
21.      Section 409A. The Award is intended to comply with the requirements of Section 409A, and shall be construed accordingly. Notwithstanding any other provision of this Agreement, the Notice of Grant, the 2015 Plan or the Employment Agreement to the contrary, with respect to any payments and benefits to which Section 409A applies, if the Participant is a “specified employee,” within the meaning of Section 409A, then to the extent necessary to avoid subjecting the Participant to the imposition of any additional tax under Section 409A, amounts that would otherwise be payable during the six-month period immediately following the Participant’s “separation from service,” within the meaning of Section 409A(a)(2)(A)(i), shall not be paid to the Participant during such period, but shall instead be accumulated and paid to the Participant (or, in the event of the Participant’s death, the Participant’s estate) in a lump sum on the first business day after the earlier of the date that is six months following the Participant’s separation from service or the Participant’s death.
22.      Governing Law; Venue. The validity, interpretation, construction and performance of this Agreement shall be governed by the internal substantive laws of the State of Delaware,

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without reference to any choice-of-law rules. The Participant irrevocably consents to the nonexclusive jurisdiction and venue of the state and federal courts located in the State of Delaware.
23.      Recovery of Compensation. In accordance with Section 18.12 of the 2015 Plan, the Award is subject to the requirements of (a) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder, (b) similar rules under the laws of any other jurisdiction, (c) any compensation recovery or clawback policies adopted by the Company to implement any such requirements, and (d) any other compensation recovery policies as may be adopted from time to time by the Company, all to the extent determined by the Committee in its discretion to be applicable to the Participant.
24.      Entire Agreement; Employment Agreement . This Agreement together with the Notice of Grant and the 2015 Plan supersede any and all other prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior negotiations and agreements between the parties with respect to the subject matter hereof are merged into this Agreement and the Notice of Grant. Each party to this Agreement and the Notice of Grant acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement, the Notice of Grant or the 2015 Plan and that any agreement, statement, or promise that is not contained in this Agreement, the Notice of Grant or the 2015 Plan shall not be valid or binding or of any force or effect. Notwithstanding anything to the contrary contained in the Notice of Grant, this Agreement or in the 2015 Plan, in the event of any conflict between the terms and conditions of the Award as set forth in the Notice of Grant, this Agreement and in the 2015 Plan, as the case may be, and the terms and conditions of the Employment Agreement, the terms and conditions of the Employment Agreement shall govern unless the conflicting provision in the Notice of Grant, this Agreement or in the 2015 Plan, as the case may be, is more favorable to the Participant; in which case, the provision more favorable to the Participant shall govern.
25.      Modification . No change or modification of this Agreement or the Notice of Grant shall be valid or binding upon the parties unless the change or modification is in writing and signed by the parties; provided, however, that the Company may change or modify this Agreement or the Notice of Grant without the Participant’s consent or signature if the Company determines, in its sole discretion, that such change or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder. Notwithstanding the preceding sentence, the Company may amend the 2015 Plan to the extent permitted by the 2015 Plan.


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Exhibit 10.4

BLUCORA, INC.
2015 INCENTIVE PLAN
FORM OF RESTRICTED STOCK UNIT GRANT NOTICE
FOR PERFORMANCE-BASED RESTRICTED STOCK UNITS

TO:                  (the “ Participant ” or “ you ”)

FROM:     Blucora, Inc., a Delaware corporation (the “ Company ”)

The Company is pleased to inform you that you have been selected to receive and are hereby granted by the Company a Restricted Stock Unit Award (the “ Award ”) under the Blucora, Inc. 2015 Incentive Plan, as amended and restated (the “ 2015 Plan ”). Each restricted stock unit (an “ RSU ”) subject to the Award has a notional value equivalent to one share of the Company’s Common Stock for purposes of determining the number of shares of Common Stock (the “ Shares ”) subject to the Award.

The Award is subject to all the terms and conditions set forth in this Restricted Stock Unit Grant Notice (the " Notice of Grant ") and in the Restricted Stock Unit Agreement attached hereto as Exhibit A (the “ Agreement ”) and the 2015 Plan, each of which are incorporated by reference into this Notice of Grant. Capitalized terms that are not defined in the Notice of Grant shall have the meanings given to them in the Agreement, and if not defined in the Agreement, the meanings given to them in the 2015 Plan.


Grant Date:
 
 
 
 
 
Award Number:
 
 
 
 
 
Target Number of RSUs
Subject to the Award:
                                     
 
 
 
(the " Target RSUs "); provided that the actual number RSUs that are granted and may be earned is up to 200% of the Target RSUs (or__________RSUs)

Vesting Schedule: Except as specifically provided in the Agreement and subject to the restrictions and conditions set forth in the 2015 Plan, the RSUs shall vest on the Vesting Date (as defined on Schedule 1 to this Notice of Grant, attached hereto, which is incorporated by reference into this Notice of Grant), based upon the achievement of the performance goals set forth on Schedule 1 (the “ Performance Vesting Conditions ”).





Additional Terms/Acknowledgment: You acknowledge and agree that the Notice of Grant and the vesting schedule set forth herein do not constitute an express or implied promise of your continued engagement as an employee, officer, director or other service provider for the vesting period, for any period, or at all, and shall not interfere with your right or the Company’s right to terminate your employment or service relationship with the Company or its Related Companies at any time, with or without Cause.

Employment Agreement: If there is a written employment agreement in effect between you and the Company (the “ Employment Agreement ”), then the Award shall be subject to the terms of such Employment Agreement, so long as such Employment Agreement remains in effect (as it may be amended, supplemented or restated from time to time) and the terms set forth in the Employment Agreement are applicable to the Award.

Committee Decisions/Interpretations: You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the 2015 Plan and the Award.

* * * * * * *
[ Remainder of Page Intentionally Left Blank
Signature Page Follows .]

-2-




By your signature below, you agree that the Notice of Grant, the Agreement, the 2015 Plan, and the Employment Agreement (if applicable), constitute your entire agreement with respect to the Award, and except as set forth therein, may not be modified except by means of a writing signed by the Company and you.


BLUCORA, INC.
 
PARTICIPANT
 
 
 
By:                                                                          
 
 
 
 
Signature
Its:                                                                          
 
 
 
 
Date:                                                               
Attachments:
1. Performance Vesting Conditions
2. Restricted Stock Unit Agreement
3. 2015 Incentive Plan
 
 





Signature Page to Notice of Grant



SCHEDULE 1
BLUCORA, INC.
2015 INCENTIVE PLAN
PERFORMANCE VESTING CONDITIONS




Schedule 1-1




EXHIBIT A
BLUCORA, INC.
2015 INCENTIVE PLAN
RESTRICTED STOCK UNIT AGREEMENT

1. Grant. The Company hereby grants to the Participant listed on the Notice of Grant (the “ Participant ”) an Award of RSUs, as set forth in the Notice of Grant and subject to the terms and conditions in this Restricted Stock Unit Agreement (this “ Agreement ”) and the 2015 Plan. Unless otherwise defined herein, the capitalized terms used herein shall have the meanings given to them in the Notice of Grant, and if not defined in the Notice of Grant, the meanings given to them in the 2015 Plan.
2.      Company’s Obligation. Each RSU represents the right to receive a Share on the vesting date. Unless and until the RSUs vest, the Participant will have no right to receive Shares under such RSUs. Prior to actual distribution of Shares pursuant to any vested RSUs, such RSUs will represent an unsecured obligation of the Company.
3.      Vesting Schedule. Subject to Paragraph 4 hereof, to Section 10.2 of the 2015 Plan and to any other relevant 2015 Plan provisions, the RSUs awarded by this Agreement will vest according to the vesting schedule specified in the Notice of Grant. The effect of a Company approved unpaid leave of absence on the terms and conditions of the RSUs will be determined by the Committee, subject to applicable laws.
4.      Forfeiture upon Termination of Service. Except as provided in the Notice of Grant, if the Participant has a Termination of Service for any or no reason prior to vesting, the unvested RSUs awarded by this Agreement will thereupon be forfeited at no cost to the Company.
5.      Payment After Vesting. Subject to Paragraph 21 hereof, any RSUs that vest in accordance with Paragraph 3 will be paid to the Participant (or in the event of the Participant’s death, to his or her estate) in Shares on, or as soon as practicable after, the applicable vesting date (but in any event, within sixty (60) days of the date on which the RSUs vest).
6.      Withholding Taxes. As a condition to the payment of any vested RSUs, the Participant must make such arrangements as the Company may require for the satisfaction of any federal, state or local withholding tax obligations that may arise in connection with such payment. The Company may permit or require the Participant to satisfy all or part of the Participant’s tax withholding obligations by (a) paying cash to the Company or a Related Company, as applicable; (b) having the Company or a Related Company, as applicable, withhold an amount from any cash amounts otherwise due or to become due from the Company or a Related Company, as applicable, to the Participant; (c) having the Company withhold a number of Shares that would otherwise be issued to the Participant having a Fair Market Value equal to the tax withholding obligations; or (d) surrendering a number of Shares the Participant already owns having a Fair Market Value equal

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to the tax withholding obligations. The value of the Shares so withheld or tendered may not exceed the employer’s minimum required tax withholding rate.
7.      Payments After Death. Any distribution or delivery to be made to the Participant under this Agreement will, if the Participant is then deceased, be made to the administrator or executor of the Participant’s estate. Any such administrator or executor must furnish the Company with (a) written notice of his or her status as transferee and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.
8.      Rights as Stockholder. Neither the Participant nor any person claiming under or through the Participant will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until the date of issuance of any such Shares under the 2015 Plan. Except as otherwise provided in Paragraph 9, no adjustment shall be made for dividends or other rights for which the record date is prior to the issuance of any Shares subject to the Award. The Participant agrees to execute any documents requested by the Company in connection with the issuance of any Shares .
9.      Adjustments. The number of Shares covered by the Award shall be subject to adjustment in accordance with Section 15 of the 2015 Plan.
10.      No Effect on Employment or Service Relationship. Nothing in the 2015 Plan or any Award granted under the 2015 Plan will be deemed to constitute an employment contract or confer or be deemed to confer any right for the Participant to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit in any way the right of the Company or any Related Company to terminate the Participant’s employment or other service relationship at any time, with or without Cause.
11.      Notices. Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by interoffice mail, by fax, by electronic mail or other electronic means, or via a postal service, postage prepaid, to such electronic mail or postal address and directed to such person as the Company may notify the Participant from time to time; and to the Participant at the Participant’s electronic mail or postal address as shown on the records of the Company from time to time, or at such other electronic mail or postal address as the Participant, by notice to the Company, may designate in writing from time to time.
12.      Award Is Not Transferable. Except to the limited extent provided in Paragraph 7, the Award and the rights and privileges conferred hereby may not be transferred, assigned, pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose) or hypothecated in any way (whether by operation of law or otherwise) and may not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the Award, or any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar process, the Award and the rights and privileges conferred hereby immediately will become null and void.

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13.      Binding Agreement. Subject to the limitation on the transferability of the Award contained herein, this Agreement will be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors and assigns.
14.      Regulatory Restrictions on Issuance of Shares. Notwithstanding the other provisions of this Agreement, if at any time the Company determines, in its sole discretion, that the listing, registration or qualification of Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company. The Company shall be under no obligation to the Participant to register for offering or resale or to qualify for exemption under the Securities Act, or to register or qualify under the laws of any state or foreign jurisdiction, any Shares, security or interest in a security paid or issued under, or created by, the 2015 Plan, or to continue in effect any such registrations or qualifications if made.
15.      Participant’s Representations . Notwithstanding any of the provisions hereof, the Participant hereby agrees that the Company will not be obligated to issue any Shares to the Participant if the issuance of such Shares shall constitute a violation by the Participant or the Company of any provision of any law or regulation of any governmental authority. Any determination in this connection by the Committee shall be final, binding, and conclusive. The obligations of the Company and the rights of the Participant are subject to all applicable laws, rules, and regulations.
16.      Investment Representation . Unless the Shares are issued to the Participant in a transaction registered under applicable federal and state securities laws, the Participant represents and warrants to the Company that all Shares which may be issued hereunder will be acquired by the Participant for investment purposes for his or her own account and not with any intent for resale or distribution in violation of federal or state securities laws. Unless the Shares are issued to the Participant in a transaction registered under the applicable federal and state securities laws, at the option of the Company, a stop-transfer order against the Shares may be placed on the official stock books and records of the Company, and a legend indicating that such Shares may not be pledged, sold or otherwise transferred, unless an opinion of counsel is provided (concurred in by counsel for the Company) stating that such transfer is not in violation of any applicable law or regulation, may be stamped on stock certificates to ensure exemption from registration. The Company may require such other action or agreement by the Participant as may from time to time be necessary to comply with the federal, state and foreign securities laws.
17.      Conflicting Terms; 2015 Plan Governs. This Agreement and the Notice of Grant are subject to all terms and provisions of the 2015 Plan. In the event of a conflict between one or more provisions of this Agreement or the Notice of Grant and one or more provisions of the 2015 Plan, the provisions of the 2015 Plan will govern.
18.      Committee Authority; Decisions Conclusive and Binding. The Participant acknowledges that a copy of the 2015 Plan has been made available for his or her review by the

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Company, and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all the terms and provisions thereof. The Committee will have the power to interpret this Agreement, the Notice of Grant and the 2015 Plan, and to adopt such rules for the administration, interpretation and application of the 2015 Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any RSUs have vested). The Participant hereby agrees to accept as binding, conclusive, and final all decisions of the Committee upon any questions arising under the 2015 Plan, this Agreement or the Notice of Grant. No member of the Committee will be personally liable for any action, determination or interpretation made in good faith with respect to the 2015 Plan, this Agreement or the Notice of Grant.
19.      Claims. The Participant’s sole remedy for any Claim (as defined below) shall be against the Company, and the Participant shall not have any claim or right of any nature against any Related Company (including, without limitation, any parent, subsidiary or affiliate of the Company) or any stockholder or existing or former director, officer or employee of the Company or any Related Company. The foregoing individuals and entities (other than the Company) shall be third-party beneficiaries of this Agreement for purposes of enforcing the terms of this Paragraph 19. The term “ Claim ” means any claim, liability or obligation of any nature, arising out of or relating to this Agreement, the Notice of Grant or the 2015 Plan or an alleged breach of this Agreement, the Notice of Grant or the 2015 Plan.
20.      Covenants and Agreements as Independent Agreements . Each of the covenants and agreements that is set forth in this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or cause of action of the Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement.
21.      Section 409A. The Award is intended to comply with the requirements of Section 409A, and shall be construed accordingly. Notwithstanding any other provision of this Agreement, the Notice of Grant, the 2015 Plan or the Employment Agreement to the contrary, with respect to any payments and benefits to which Section 409A applies, if the Participant is a “specified employee,” within the meaning of Section 409A, then to the extent necessary to avoid subjecting the Participant to the imposition of any additional tax under Section 409A, amounts that would otherwise be payable during the six-month period immediately following the Participant’s “separation from service,” within the meaning of Section 409A(a)(2)(A)(i), shall not be paid to the Participant during such period, but shall instead be accumulated and paid to the Participant (or, in the event of the Participant’s death, the Participant’s estate) in a lump sum on the first business day after the earlier of the date that is six months following the Participant’s separation from service or the Participant’s death.
22.      Governing Law; Venue. The validity, interpretation, construction and performance of this Agreement shall be governed by the internal substantive laws of the State of Delaware,

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without reference to any choice-of-law rules. The Participant irrevocably consents to the nonexclusive jurisdiction and venue of the state and federal courts located in the State of Delaware.
23.      Recovery of Compensation. In accordance with Section 18.12 of the 2015 Plan, the Award is subject to the requirements of (a) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder, (b) similar rules under the laws of any other jurisdiction, (c) any compensation recovery or clawback policies adopted by the Company to implement any such requirements, and (d) any other compensation recovery policies as may be adopted from time to time by the Company, all to the extent determined by the Committee in its discretion to be applicable to the Participant.
24.      Entire Agreement; Employment Agreement . This Agreement together with the Notice of Grant and the 2015 Plan supersede any and all other prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior negotiations and agreements between the parties with respect to the subject matter hereof are merged into this Agreement and the Notice of Grant. Each party to this Agreement and the Notice of Grant acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement, the Notice of Grant or the 2015 Plan and that any agreement, statement, or promise that is not contained in this Agreement, the Notice of Grant or the 2015 Plan shall not be valid or binding or of any force or effect. Notwithstanding anything to the contrary contained in the Notice of Grant, this Agreement or in the 2015 Plan, in the event of any conflict between the terms and conditions of the Award as set forth in the Notice of Grant, this Agreement and in the 2015 Plan, as the case may be, and the terms and conditions of the Employment Agreement, the terms and conditions of the Employment Agreement shall govern unless the conflicting provision in the Notice of Grant, this Agreement or in the 2015 Plan, as the case may be, is more favorable to the Participant; in which case, the provision more favorable to the Participant shall govern.
25.      Modification . No change or modification of this Agreement or the Notice of Grant shall be valid or binding upon the parties unless the change or modification is in writing and signed by the parties; provided, however, that the Company may change or modify this Agreement or the Notice of Grant without the Participant’s consent or signature if the Company determines, in its sole discretion, that such change or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder. Notwithstanding the preceding sentence, the Company may amend the 2015 Plan to the extent permitted by the 2015 Plan.


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