Attached files
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EX-32 - EXHIBIT 32 - CEVA INC | c97643exv32.htm |
EX-21.1 - EXHIBIT 21.1 - CEVA INC | c97643exv21w1.htm |
EX-23.1 - EXHIBIT 23.1 - CEVA INC | c97643exv23w1.htm |
EX-31.2 - EXHIBIT 31.2 - CEVA INC | c97643exv31w2.htm |
EX-31.1 - EXHIBIT 31.1 - CEVA INC | c97643exv31w1.htm |
10-K - FORM 10-K - CEVA INC | c97643e10vk.htm |
Exhibit 10.10
CEVA, INC.
2002 EMPLOYEE STOCK PURCHASE PLAN
(Amended and Restated Effective August 2004)
(Amended and Restated Effective March 2006)
(Amended and Restated Effective March 2009)
The following constitute the provisions of the 2002 Employee Stock Purchase Plan of CEVA, Inc.
1. Purpose. The purpose of the Plan is to provide Employees of the Company and its Designated
Parents or Subsidiaries with an opportunity to purchase Common Stock of the Company through
accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an
Employee Stock Purchase Plan under Section 423 of the Code and the applicable regulations
thereunder. The provisions of the Plan, accordingly, shall be construed so as to extend and limit
participation in a manner consistent with the requirements of that section of the Code.
2. Definitions. As used herein, the following definitions shall apply:
(a) Administrator means either the Board or a committee of the Board that is responsible for
the administration of the Plan as is designated from time to time by resolution of the Board.
(b) Applicable Laws means the legal requirements relating to the administration of employee
stock purchase plans, if any, under applicable provisions of federal securities laws, state
corporate and securities laws, the Code and the applicable regulations thereunder, the rules of any
applicable stock exchange or national market system, and the rules of any foreign jurisdiction
applicable to participation in the Plan by residents therein.
(c) Board means the Board of Directors of the Company.
(d) Code means the Internal Revenue Code of 1986, as amended.
(e) Common Stock means the common stock of the Company.
(f) Company means CEVA, Inc., a Delaware corporation.
(g) Compensation means an Employees base salary from the Company or one or more Designated
Parents or Subsidiaries (as reported on the Employees Federal Income Tax Withholding Statement
(Form W-2) or equivalent thereof), including (A) such amounts of base salary as are deferred by the
Employee (i) under a qualified cash or deferred arrangement described in Section 401(k) of the
Code, or (ii) to a plan qualified under Sections 125 or 129 of the Code and
(B) sales commissions. Compensation does not include overtime, bonuses, annual awards, other
incentive payments, reimbursements or other expense allowances, fringe benefits (cash or noncash),
moving expenses, deferred compensation, third party sick or disability pay, income or gains
attributable to restricted stock, stock options, stock appreciation rights or other similar
equity-based compensation, imputed income or other non-cash items, such as life insurance premiums
and similar items, contributions (other than contributions described in the first sentence) made on
the Employees behalf by the Company or one or more Designated Parents or Subsidiaries under any
employee benefit or welfare plan now or hereafter established, and any other payments not
specifically referenced in the first sentence.
(h) Corporate Transaction means any of the following transactions:
(1) a merger or consolidation in which the Company is not the surviving entity, except for a
transaction the principal purpose of which is to change the state in which the Company is
incorporated;
(2) the sale, transfer or other disposition of all or substantially all of the assets of the
Company (including the capital stock of the Companys subsidiary corporations);
(3) the complete liquidation or dissolution of the Company;
(4) any reverse merger in which the Company is the surviving entity but in which securities
possessing more than fifty percent (50%) of the total combined voting power of the Companys
outstanding securities are transferred to a person or persons different from those who held such
securities immediately prior to such merger; or
(5) acquisition in a single or series of related transactions by any person or related group
of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial
ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Companys outstanding securities, but
excluding any such transaction or series of related transactions that the Administrator determines
shall not be a Corporate Transaction.
(i) Designated Parents or Subsidiaries means the Parents or Subsidiaries of the Company
which have been designated by the Administrator from time to time as eligible to participate in the
Plan.
(j) Effective Date means a date selected by the Board in its sole discretion. However,
should any Parent or Subsidiary of the Company become a Designated Parent or Subsidiary after such
date, then the Administrator, in its discretion, shall designate a separate Effective Date with
respect to the employee-participants of such Designated Parent or Subsidiary.
(k) Employee means any individual, including an officer or director, who is an employee of
the Company or a Designated Parent or Subsidiary for purposes of Section 423 of the Code. For
purposes of the Plan, the employment relationship shall be treated as continuing intact while the
individual is on sick leave or other leave of absence approved by the individuals employer. Where
the period of leave exceeds three (3) months and the individuals right to reemployment is not
guaranteed either by statute or by contract, the employment relationship will be deemed to
have terminated on the day three (3) months and one (1) day following the expiration of such three
(3) month period, for purposes of determining eligibility to participate in the Plan.
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(l) Enrollment Date means the first day of each Offer Period.
(m) Exchange Act means the Securities Exchange Act of 1934, as amended.
(n) Exercise Date means the last day of each Purchase Period.
(o) Fair Market Value means, as of any date, the value of Common Stock determined as
follows:
(1) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation The Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or
the closing bid, if no sales were reported) as quoted on such exchange or system on the date of
determination (or, if no closing sales price or closing bid was reported on that date, as
applicable, on the last trading date such closing sales price or closing bid was reported), as
reported in The Wall Street Journal or such other source as the Administrator deems reliable;
(2) If the Common Stock is regularly quoted on an automated quotation system (including the
OTC Bulletin Board) or by a recognized securities dealer, but selling prices are not reported, the
Fair Market Value of a share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the date of determination (or, if no such prices were reported on
that date, on the last date such prices were reported), as reported in The Wall Street Journal or
such other source as the Administrator deems reliable; or
(3) In the absence of an established market for the Common Stock of the type described in (1)
and (2), above, the Fair Market Value thereof shall be determined by the Administrator in good
faith.
(p) Offer Period means an Offer Period established pursuant to Section 4 hereof.
(q) Parent means a parent corporation, whether now or hereafter existing, as defined in
Section 424(e) of the Code.
(r) Participant means an Employee of the Company or Designated Parent or Subsidiary who has
completed a subscription agreement as set forth in Section 5(a) and is thereby enrolled in the
Plan.
(s) Plan means this Employee Stock Purchase Plan.
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(u) Purchase Period means a period of approximately six months, commencing on February 1 and
August 1 of each year and terminating on the next following July 31 or January 31, respectively;
provided, however, that the first Purchase Period shall commence on the Effective Date and shall
end on a date determined by the Administrator that shall be no later than twenty-seven (27) months
after the Effective Date. The duration and timing of Purchase Periods may be changed pursuant to
Section 19(b) of the Plan.
(v) Purchase Price shall mean an amount equal to 85% of the Fair Market Value of a share of
Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower.
(w) Reserves means, as of any date, the sum of (1) the number of shares of Common Stock
covered by each then outstanding option under the Plan which has not yet been exercised and (2) the
number of shares of Common Stock which have been authorized for issuance under the Plan but not
then subject to an outstanding option.
(y) Subsidiary means a subsidiary corporation, whether now or hereafter existing, as
defined in Section 424(f) of the Code.
3. Eligibility.
(a) General. Any individual who is an Employee on a given Enrollment Date shall be eligible
to participate in the Plan for the Offer Period commencing with such Enrollment Date. No
individual who is not an Employee shall be eligible to participate in the Plan.
(b) Limitations on Grant and Accrual. Any provisions of the Plan to the contrary
notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after
the grant, such Employee (taking into account stock owned by any other person whose stock would be
attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold
outstanding options to purchase stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of stock of the Company or of any Parent or Subsidiary of the
Company, or (ii) which permits the Employees rights to purchase stock under all employee stock
purchase plans of the Company and its Parents or Subsidiaries to accrue at a rate which exceeds
Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the Fair Market Value of the
shares at the time such option is granted) for each calendar year in which such option is
outstanding at any time. The determination of the accrual of the right to purchase stock shall be
made in accordance with Section 423(b)(8) of the Code and the regulations thereunder. In the event
that an Employee may not be granted an option under the Plan because of the foregoing restrictions,
the Employee shall be granted an option to purchase the maximum number of shares that would not
violate the foregoing restrictions.
(c) Other Limits on Eligibility. Notwithstanding Subsection (a), above, the following
Employees shall not be eligible to participate in the Plan for any relevant Offer Period:
(i) Employees whose customary employment is less than 20 hours per week; (ii) Employees whose
customary employment is for not more than 5 months in any calendar year; and (iii) Employees
who are subject to rules or laws of a foreign jurisdiction that prohibit or make impractical the
participation of such Employees in the Plan.
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4. Offer Periods.
(a) The Plan shall be implemented through overlapping or consecutive Offer Periods until such
time as (i) the maximum number of shares of Common Stock available for issuance under the Plan
shall have been purchased or (ii) the Plan shall have been sooner amended or terminated in
accordance with Section 19 hereof. The maximum duration of an Offer Period shall be twenty-seven
(27) months. Initially, the Plan shall be implemented through overlapping Offer Periods of
twenty-four (24) months duration commencing each February 1 and August 1 following the Effective
Date (except that the initial Offer Period shall commence on the Effective Date and shall end on a
date determined by the Administrator that shall be no later than twenty-seven (27) months after the
Effective Date).
(b) A Participant shall be granted a separate option for each Offer Period in which he or she
participates. The option shall be granted on the Enrollment Date and shall be automatically
exercised in successive installments on the Exercise Dates ending within the Offer Period.
(c) If on the first day of any Purchase Period in an Offer Period in which an Employee is a
Participant, the Fair Market Value of the Common Stock is less than the Fair Market Value of the
Common Stock on the Enrollment Date of the Offer Period (after taking into account any adjustment
during the Offer Period pursuant to Section 18(a)), the Offer Period shall be terminated
automatically and the Participant shall be enrolled automatically in the new Offer Period which has
its first Purchase Period commencing on that date, provided the Employee is eligible to participate
in the Plan on that date and has not elected to terminate participation in the Plan.
(d) Except as specifically provided herein, the acquisition of Common Stock through
participation in the Plan for any Offer Period shall neither limit nor require the acquisition of
Common Stock by a Participant in any subsequent Offer Period.
5. Participation.
(a) An eligible Employee may become a Participant in the Plan by completing a subscription
agreement authorizing payroll deductions in the form of Exhibit A to this Plan (or such other form
or method (including electronic forms) as the Administrator may designate from time to time) and
filing it with the designated payroll office of the Company at least five (5) business days prior
to the Enrollment Date for the Offer Period in which such participation will commence, unless a
later time for filing the subscription agreement is set by the Administrator for all eligible
Employees with respect to a given Offer Period.
(b) Payroll deductions for a Participant shall commence with the first partial or full payroll
period beginning on the Enrollment Date and shall end on the last complete payroll period during
the Offer Period, unless sooner terminated by the Participant as provided in Section 10.
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6. Payroll Deductions.
(a) At the time a Participant files a subscription agreement, the Participant shall elect to
have payroll deductions made during the Offer Period in amounts equal to or greater than one
percent (1%) but not exceeding ten percent (10%) of the Compensation which the Participant receives
during the Offer Period. Prior to April 1, 2006, a Participant could elect to have payroll
deductions made during the Offer Period in amounts up to twenty percent (20%) of the Compensation
which the Participant receives during the Offer Period. Such payroll deductions shall be in whole
percentages only.
(b) All payroll deductions made for a Participant shall be credited to the Participants
account under the Plan and will be withheld in whole percentages only. A Participant may not make
any additional payments into such account.
(c) A Participant may discontinue participation in the Plan as provided in Section 10, or may
increase or decrease the rate of payroll deductions during the Offer Period by completing and
filing with the Company a change of status notice in the form of Exhibit B to this Plan (or such
other form or method (including electronic forms) as the Administrator may designate from time to
time) authorizing an increase or decrease in the payroll deduction rate. Any increase or decrease
in the rate of a Participants payroll deductions shall be effective with the first full payroll
period commencing five (5) business days after the Companys receipt of the change of status notice
unless the Company elects to process a given change in participation more quickly. A Participants
subscription agreement (as modified by any change of status notice) shall remain in effect for
successive Offer Periods unless terminated as provided in Section 10. The Administrator shall be
authorized to limit the number of payroll deduction rate changes during any Offer Period.
(d) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of
the Code and Section 3(b) herein, a Participants payroll deductions shall be decreased to 0%.
Payroll deductions shall recommence at the rate provided in such Participants subscription
agreement, as amended, at the time when permitted under Section 423(b)(8) of the Code and
Section 3(b) herein, unless such participation is sooner terminated by the Participant as provided
in Section 10.
(e) At the time the option is exercised, in whole or in part, or at the time any of the
Companys Common Stock issued under the Plan is disposed of, the participant must make adequate
provision for the Companys federal, state, or other tax withholding obligations, if any, which
arise upon the exercise of the option or the disposition of the Common Stock. At any time, the
Company may, but shall not be obligated to, withhold from the participants compensation the amount
necessary for the Company to meet applicable withholding obligations, including any withholding
required to make available to the Company any tax deductions or benefits attributable to sale or
other disposition of Common Stock by the Employee.
7. Grant of Option. On the Enrollment Date of each Offer Period, each Participant shall be
granted an option to purchase (at the applicable Purchase Price) up to a whole number of shares of
Common Stock (the Option Shares) determined by dividing $50,000 by the Fair Market Value of a
share of Common Stock on the Enrollment Date (subject to any adjustment pursuant to
Section 18), and provided that such purchase shall be subject to the limitations set forth in
Sections 3(b), 6 and 12 hereof. The option shall be exercisable as to 25% of the Option Shares on
each Exercise Date during the Offer Period. Exercise of the option shall occur as provided in
Section 8, unless the Participant has withdrawn pursuant to Section 10, and the option, to the
extent not exercised, shall expire on the last day of the Offer Period with respect to which such
option was granted.
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8. Exercise of Option. Unless a Participant withdraws from the Plan as provided in
Section 10, below, the Participants option for the purchase of shares of Common Stock will be
exercised automatically on each Exercise Date, by applying the accumulated payroll deductions in
the Participants account to purchase the number of full shares subject to the option by dividing
such Participants payroll deductions accumulated prior to such Exercise Date and retained in the
Participants account as of the Exercise Date by the applicable Purchase Price. No fractional
shares will be purchased; any payroll deductions accumulated in a Participants account which are
not sufficient to purchase a full share shall be carried over to the next Purchase Period or Offer
Period, whichever applies, or returned to the Participant, if the Participant withdraws from the
Plan. Notwithstanding the foregoing, any amount remaining in a Participants account following the
purchase of shares on the Exercise Date due to the application of Section 423(b)(8) of the Code or
Section 7, above, shall be returned to the Participant and shall not be carried over to the next
Offer Period or Purchase Period. During a Participants lifetime, a Participants option to
purchase shares hereunder is exercisable only by the Participant.
9. Delivery. Upon receipt of a request from a Participant after each Exercise Date on which a
purchase of shares occurs, the Company shall arrange the delivery to such Participant, as promptly
as practicable, of a certificate representing the shares purchased upon exercise of the
Participants option. The Company may, in its sole discretion, and in compliance with applicable
laws, authorize the book entry registration of shares in lieu of issuing certificates.
10. Withdrawal; Termination of Employment.
(a) A Participant may either (i) withdraw all but not less than all the payroll deductions
credited to the Participants account and not yet used to exercise the Participants option under
the Plan or (ii) terminate future payroll deductions, but allow accumulated payroll deductions to
be used to exercise the Participants option under the Plan at any time by giving written notice to
the Company in the form of Exhibit B to this Plan (or such other form or method (including
electronic forms) as the Administrator may designate from time to time). If the Participant elects
withdrawal alternative (i) described above, all of the Participants payroll deductions credited to
the Participants account will be paid to such Participant as promptly as practicable after receipt
of notice of withdrawal, such Participants option for the Offer Period will be automatically
terminated, and no further payroll deductions for the purchase of shares will be made during the
Offer Period. If the Participant elects withdrawal alternative (ii) described above, no further
payroll deductions for the purchase of shares will be made during the Offer Period, all of the
Participants payroll deductions credited to the Participants account will be applied to the
exercise of the Participants option on the next Exercise Date (subject to Sections 3(b), 6, 7 and
12), and after such Exercise Date, such Participants option for the Offer Period will be
automatically terminated and all remaining accumulated payroll deduction amounts shall be returned
to the Participant. If a Participant
withdraws from an Offer Period, payroll deductions will not resume at the beginning of the
succeeding Offer Period unless the Participant delivers to the Company a new subscription
agreement. A Participants withdrawal from an Offer Period shall not have any effect upon his or
her eligibility to participate in any similar plan that may be hereafter adopted by the Company or
in succeeding Offer Periods.
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(b) With respect to the termination of employment of a Participant whose new Offer Period does
not begin until either August 1, 2007 or February 1, 2008, upon termination of such Participants
employment relationship (as described in Section 2(k)) at a time more than three (3) months from
July 31, 2007 or January 31, 2008, as the case may be, the payroll deductions credited to such
Participants account during the Offer Period ending on July 31, 2007 or January 31, 2008, as the
case may be, but not yet used to exercise the option will be returned to such Participant or, in
the case of his/her death, to the person or persons entitled thereto under Section 14, and such
Participants option will be automatically terminated without exercise of any portion of such
option. With respect to the termination of employment of a Participant whose new Offer Period does
not begin until either August 1, 2007 or February 1, 2008, upon termination of such Participants
employment relationship (as described in Section 2(k)) within three (3) months of July 31, 2007 or
January 31, 2008, as the case may be, the payroll deductions credited to such Participants account
during the Offer Period ending on July 31, 2007 or January 31, 2008, as the case may be, but not
yet used to exercise the option will be applied to the purchase of Common Stock on July 31, 2007 or
January 31, 2008, as the case may be, unless the Participant (or in the case of the Participants
death, the person or persons entitled to the Participants account balance under Section 14)
withdraws from the Plan by submitting a change of status notice in accordance with subsection (a)
of this Section 10. In such a case, no further payroll deductions will be credited to the
Participants account following the Participants termination of employment and the Participants
option under the Plan will be automatically terminated after the purchase of Common Stock on July
31, 2007 or January 31, 2008, as the case may be. If, prior to July 31, 2007 or January 31, 2008,
as the case may be, the Designated Parent or Subsidiary by which the Employee is employed shall
cease to be a Parent or Subsidiary of the Company, or if the Employee is transferred to a Parent or
Subsidiary of the Company that is not a Designated Parent or Subsidiary, the Employee shall be
deemed to have been terminated for purposes of the Plan.
(c) With respect to the termination of employment of a Participant whose new Offering Period
begins on or after August 1, 2006, upon termination of such Participants employment relationship
(as described in Section 2(k)), the payroll deductions credited to such Participants account
during the Offer Period but not yet used to exercise the option will be returned to such
Participant or, in the case of his/her death, to the person or persons entitled thereto under
Section 14, and such Participants option will be automatically terminated without exercise of any
portion of such option. If, prior to the last day of the Offer Period, the Designated Parent or
Subsidiary by which the Employee is employed shall cease to be a Parent or Subsidiary of the
Company, or if the Employee is transferred to a Parent or Subsidiary of the Company that is not a
Designated Parent or Subsidiary, the Employee shall be deemed to have been terminated for purposes
of the Plan.
11. Interest. No interest shall accrue on the payroll deductions credited to a Participants
account under the Plan.
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12. Stock.
(a) The maximum number of shares of Common Stock which shall be made available for sale under
the Plan shall be two million one hundred fifty thousand (2,150,000) shares (all share numbers in
this Plan reflect the adjustments from actions taken in connection with the spin-off of Ceva from
DSP Group, Inc.), subject to adjustment upon changes in capitalization of the Company as provided
in Section 18. With respect to any amendment to increase the total number of shares of Common
Stock under the Plan, the Administrator shall have discretion to disallow the purchase of any
increased shares of Common Stock for Offer Periods in existence prior to such increase. If the
Administrator determines that on a given Exercise Date the number of shares with respect to which
options are to be exercised may exceed (x) the number of shares then available for sale under the
Plan or (y) the number of shares available for sale under the Plan on the Enrollment Date(s) of one
or more of the Offer Periods in which such Exercise Date is to occur, the Administrator may make a
pro rata allocation of the shares remaining available for purchase on such Enrollment Dates or
Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall
determine to be equitable, and shall either continue all Offer Periods then in effect or terminate
any one or more Offer Periods then in effect pursuant to Section 19, below. Any amount remaining
in a Participants payroll account following such pro rata allocation shall be returned to the
Participant and shall not be carried over to any future Purchase Period or Offer Period, as
determined by the Administrator.
(b) A Participant will have no interest or voting right in shares covered by the Participants
option until such shares are actually purchased on the Participants behalf in accordance with the
applicable provisions of the Plan. No adjustment shall be made for dividends, distributions or
other rights for which the record date is prior to the date of such purchase.
(c) Shares to be delivered to a Participant under the Plan will be registered in the name of
the Participant or in the name of the Participant and his or her spouse as designated in the
Participants subscription agreement.
13. Administration. The Plan shall be administered by the Administrator which shall have full
and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to
determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding,
decision and determination made by the Administrator shall, to the full extent permitted by
Applicable Law, be final and binding upon all persons.
14. Designation of Beneficiary.
(a) Each Participant will file a written designation of a beneficiary who is to receive any
shares and cash, if any, from the Participants account under the Plan in the event of such
Participants death. If a Participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective.
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(b) Such designation of beneficiary may be changed by the Participant (and the Participants
spouse, if any) at any time by written notice. In the event of the death of a Participant and in
the absence of a beneficiary validly designated under the Plan who is living (or in existence)
at the time of such Participants death, the Company shall deliver such shares and/or cash to
the executor or administrator of the estate of the Participant, or if no such executor or
administrator has been appointed (to the knowledge of the Administrator), the Administrator shall
deliver such shares and/or cash to the spouse (or domestic partner, as determined by the
Administrator) of the Participant, or if no spouse (or domestic partner) is known to the
Administrator, then to the issue of the Participant, such distribution to be made per stirpes (by
right of representation), or if no issue are known to the Administrator, then to the heirs at law
of the Participant determined in accordance with Section 27.
15. Transferability. No payroll deductions credited to a Participants account, options
granted hereunder, or any rights with regard to the exercise of an option or to receive shares
under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other
than by will, the laws of descent and distribution, or as provided in Section 14 hereof) by the
Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be
without effect, except that the Administrator may, in its sole discretion, treat such act as an
election to withdraw funds from an Offer Period in accordance with Section 10.
16. Use of Funds. All payroll deductions received or held by the Company under the Plan may
be used by the Company for any corporate purpose, and the Company shall not be obligated to
segregate such payroll deductions or hold them exclusively for the benefit of Participants. All
payroll deductions received or held by the Company are subject to the claims of the Companys
general creditors, and no Participant shall have rights greater than those of any unsecured
creditor of the Company.
17. Reports. Individual accounts will be maintained for each Participant in the Plan.
Statements of account will be given to Participants at least annually, which statements will set
forth the amounts of payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.
18. Adjustments Upon Changes in Capitalization; Corporate Transactions.
(a) Adjustments Upon Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the Reserves, the Purchase Price, the maximum number of shares that
may be purchased in any Offer Period or Purchase Period, as well as any other terms that the
Administrator determines require adjustment shall be proportionately adjusted for (i) any increase
or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification of the Common Stock, (ii) any other
increase or decrease in the number of issued shares of Common Stock effected without receipt of
consideration by the Company, or (iii) as the Administrator may determine in its discretion, any
other transaction with respect to Common Stock to which Section 424(a) of the Code applies;
provided, however that conversion of any convertible securities of the Company shall not be deemed
to have been effected without receipt of consideration. Such adjustment shall be made by the
Administrator and its determination shall be final, binding and conclusive. Except as the
Administrator determines, no issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment by reason hereof
shall be made with respect to, the Reserves and the Purchase Price.
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(b) Corporate Transactions. In the event of a proposed Corporate Transaction, each option
under the Plan shall be assumed by such successor corporation or a parent or subsidiary of such
successor corporation, unless the Administrator, in the exercise of its sole discretion and in lieu
of such assumption, determines to shorten the Offer Period then in progress by setting a new
Exercise Date (the New Exercise Date). If the Administrator shortens the Offer Period then in
progress in lieu of assumption in the event of a Corporate Transaction, the Administrator shall
notify each Participant in writing at least ten (10) business days prior to the New Exercise Date,
that the Exercise Date for the Participants option has been changed to the New Exercise Date and
that either:
(1) the Participants option will be exercised automatically on the New Exercise Date, unless
prior to such date the Participant has withdrawn from the Offer Period as provided in Section 10;
or
(2) the Company shall pay to the Participant on the New Exercise Date an amount in cash, cash
equivalents, or property as determined by the Administrator that is equal to the difference in the
Fair Market Value of the shares subject to the option and the Purchase Price due had the
Participants option been exercised automatically under Subsection (b)(i) above.
For purposes of this Subsection, an option granted under the Plan shall be deemed to be
assumed if, in connection with the Corporate Transaction, the option is replaced with a comparable
option with respect to shares of capital stock of the successor corporation or Parent thereof. The
determination of option comparability shall be made by the Administrator prior to the Corporate
Transaction and its determination shall be final, binding and conclusive on all persons.
19. Amendment or Termination.
(a) The Administrator may at any time and for any reason terminate or amend the Plan. Except
as provided in Section 18, no such termination can affect options previously granted, provided that
the Plan or any one or more Offer Periods may be terminated by the Administrator on any Exercise
Date or by the Administrator establishing a new Exercise Date with respect to any Offer Period
and/or any Purchase Period then in progress if the Administrator determines that the termination of
the Plan or such one or more Offer Periods is in the best interests of the Company and its
stockholders. Except as provided in Section 18 and this Section 19, no amendment may make any
change in any option theretofore granted which adversely affects the rights of any Participant
without the consent of affected Participants. To the extent necessary to comply with Section 423
of the Code (or any successor rule or provision or any other Applicable Law), the Company shall
obtain stockholder approval in such a manner and to such a degree as required.
(b) Without stockholder consent and without regard to whether any Participant rights may be
considered to have been adversely affected, the Administrator shall be entitled to limit the
frequency and/or number of changes in the amount withheld during Offer Periods, change the length
of Purchase Periods within any Offer Period, determine the length of any future Offer Period,
determine whether future Offer Periods shall be consecutive or overlapping, establish the exchange
ratio applicable to amounts withheld in a currency other than U.S. dollars, establish additional
terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign
jurisdictions, permit payroll withholding in excess of the amount designated by a Participant
in order to adjust for delays or mistakes in the Companys processing of properly completed
withholding elections, establish reasonable waiting and adjustment periods and/or accounting and
crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each
Participant properly correspond with amounts withheld from the Participants Compensation, and
establish such other limitations or procedures as the Administrator determines in its sole
discretion advisable and which are consistent with the Plan.
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20. Notices. All notices or other communications by a Participant to the Company under or in
connection with the Plan shall be deemed to have been duly given when received in the form
specified by the Administrator at the location, or by the person, designated by the Administrator
for the receipt thereof.
21. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an option
unless the exercise of such option and the issuance and delivery of such shares pursuant thereto
shall comply with all Applicable Laws and shall be further subject to the approval of counsel for
the Company with respect to such compliance. As a condition to the exercise of an option, the
Company may require the Participant to represent and warrant at the time of any such exercise that
the shares are being purchased only for investment and without any present intention to sell or
distribute such shares if, in the opinion of counsel for the Company, such a representation is
required by any of the aforementioned Applicable Laws.
22. Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption
by the Board or its approval by the stockholders of the Company. It shall continue in effect for a
term of twenty (20) years unless sooner terminated under Section 19.
23. Stockholder Approval. The Plan is effective as of the date it is adopted by the Board.
The Plan shall be submitted to the stockholders of the Company within twelve (12) months before or
after the date the Plan is adopted for approval to obtain the benefits of Section 423 of the Code.
However, the Plan shall not be conditioned upon such approval.
24. No Employment Rights. The Plan does not, directly or indirectly, create any right for the
benefit of any employee or class of employees to purchase any shares under the Plan, or create in
any employee or class of employees any right with respect to continuation of employment by the
Company or a Designated Parent or Subsidiary, and it shall not be deemed to interfere in any way
with such employers right to terminate, or otherwise modify, an employees employment at any time.
25. No Effect on Retirement and Other Benefit Plans. Except as specifically provided in a
retirement or other benefit plan of the Company or a Designated Parent or Subsidiary, participation
in the Plan shall not be deemed compensation for purposes of computing benefits or contributions
under any retirement plan of the Company or a Designated Parent or Subsidiary, and shall not affect
any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted
under which the availability or amount of benefits is related to level of compensation. The Plan
is not a Retirement Plan or Welfare Plan under the Employee Retirement Income Security Act of
1974, as amended.
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26. Effect of Plan. The provisions of the Plan shall, in accordance with its terms, be
binding upon, and inure to the benefit of, all successors of each Participant, including, without
limitation, such Participants estate and the executors, administrators or trustees thereof, heirs
and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such
Participant.
27. Governmental Regulations. The Companys obligation to sell and deliver Common Stock under
this Plan is subject to listing on an established stock exchange or quotation on a national market
system or an over the counter market (to the extent the Common Stock is then so listed or quoted)
and the approval of all governmental authorities required in connection with the authorization,
issuance, or sale of such stock.
28. Source of Shares. Shares may be issued upon exercise of an option from authorized but
unissued Common Stock, from shares held in the treasury of the Company, or from any other proper
source.
29. Notification Upon Sale of Shares. Each employee agrees, by participating in the Plan, to
promptly give notice to the Company of any disposition of shares purchased under the Plan where
such disposition occurs within two years after the date of the grant of the option pursuant to
which such shares were purchased or within one year of the date of exercise of such option pursuant
to which such shares were purchased.
30. Governing Law. The Plan is to be construed in accordance with and governed by the
internal laws of the State of Delaware without giving effect to any choice of law rule that would
cause the application of the laws of any jurisdiction other than the internal laws of the State of
Delaware to the rights and duties of the parties, except to the extent the internal laws of the
State of Delaware are superseded by the laws of the United States. Should any provision of the
Plan be determined by a court of law to be illegal or unenforceable, the other provisions shall
nevertheless remain effective and shall remain enforceable.
31. Dispute Resolution. The provisions of this Section 31 (and as restated in the
Subscription Agreement) shall be the exclusive means of resolving disputes arising out of or
relating to the Plan. The Company and the Participant, or their respective successors (the
parties), shall attempt in good faith to resolve any disputes arising out of or relating to the
Plan by negotiation between individuals who have authority to settle the controversy. Negotiations
shall be commenced by either party by notice of a written statement of the partys position and the
name and title of the individual who will represent the party. Within thirty (30) days of the
written notification, the parties shall meet at a mutually acceptable time and place, and
thereafter as often as they reasonably deem necessary, to resolve the dispute. If the dispute has
not been resolved by negotiation, the parties agree that any suit, action, or proceeding arising
out of or relating to the Plan shall be brought in the United States District Court for the
Northern District of California (or should such court lack jurisdiction to hear such action, suit
or proceeding, in a California state court in the County of San Francisco) and that the parties
shall submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest
extent permitted by law, any objection the party may have to the laying of venue for any such suit,
action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE
OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions
of this Section 31 shall for any reason
be held invalid or unenforceable, it is the specific intent of the parties that such
provisions shall be modified to the minimum extent necessary to make it or its application valid
and enforceable.
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32. Plan Approval. The Plan was initially approved by the Board and the stockholders
of the Company in 2002. Effective August 1, 2004, the Board approved an amendment and restatement
of the Plan, which amendment and restatement was not subject to stockholder approval. On March 29,
2006, the Board approved an amendment and restatement of the Plan to increase the number of shares
reserved for issuance under the Plan from 1,000,000 to 1,500,000 Shares, which amendment was
subsequently approved by stockholders. Also on March 29, 2006, the Board approved the following
amendments: (a) for Offer Periods commencing on or after August 1, 2006, decrease the maximum
payroll withholding from 20% to 10% of Compensation, and (b) make certain other administrative
changes, which amendments were not subject to stockholder approval. In March 2009, the Board
approved an amendment and restatement of the Plan to increase the number of shares reserved for
issuance under the Plan from 1,500,000 to 2,150,000 Shares, which amendment was subsequently
approved by stockholders.
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Exhibit A
CEVA, Inc. 2002 Employee Stock Purchase Plan
SUBSCRIPTION AGREEMENT
SUBSCRIPTION AGREEMENT
Effective with the Offer Period beginning on:
o <February 1, 200_> or o <August 1, 200_>
o <February 1, 200_> or o <August 1, 200_>
1. | Personal Information. <modify data requested as appropriate> |
Legal Name (Please Print) | ||||||||
(Last) (First) (MI) | Location | Department | ||||||
Street Address | ||||||||
Daytime Telephone | ||||||||
City, State/Country, Zip | ||||||||
E-Mail Address |
Social Security No.
|
_ _ _ _ _ _ _ _ _ | Employee I.D. No. | ||||||||
Manager Mgr Location |
2. | Eligibility. Any Employee whose customary employment is 20 hours or more per week and more than 5 months per calendar year, and who does not hold (directly or indirectly) five percent (5%) or more of the combined voting power of the Company, a parent or a subsidiary, whether in stock or options to acquire stock is eligible to participate in the CEVA, Inc. 2002 Employee Stock Purchase Plan (the ESPP); provided, however, that Employees who are subject to the rules or laws of a foreign jurisdiction that prohibit or make impractical the participation of such Employees in the ESPP are not eligible to participate. |
3. | Definitions. Each capitalized term in this Subscription Agreement shall have the meaning set forth in the ESPP. |
4. | Subscription. I hereby elect to participate in the ESPP and subscribe to purchase shares of the Companys Common Stock in accordance with this Subscription Agreement and the ESPP. I have received a complete copy of the ESPP and a prospectus describing the ESPP and understand that my participation in the ESPP is in all respects subject to the terms of the ESPP. The effectiveness of this Subscription Agreement is dependent on my eligibility to participate in the ESPP. |
5. | Payroll Deduction Authorization. I hereby authorize payroll deductions from my Compensation during the Offer Period in the percentage specified below (payroll reductions may not exceed 10% of Compensation nor $21,250 per calendar year): | |
Percentage to be Deducted (circle one) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
6. | ESPP Accounts and Purchase Price. I understand that all payroll deductions will be credited to my account under the ESPP. No additional payments may be made to my account. No interest will be credited on funds held in the account at any time including any refund of the account caused by withdrawal from the ESPP. All payroll deductions shall be accumulated for the purchase of Company Common Stock at the applicable Purchase Price determined in accordance with the ESPP. |
7. | Withdrawal and Changes in Payroll Deduction. I understand that I may discontinue my participation in the ESPP at any time prior to an Exercise Date as provided in Section 10 of the ESPP, but if I do not withdraw from the ESPP, any accumulated payroll deductions will be applied automatically to purchase Company Common Stock. I may increase or decrease the rate of my payroll deductions in whole percentage increments to not less than one percent (1%) on one occasion during any Purchase Period by completing and timely filing a Change of Status Notice. Any increase or decrease will be effective for the full payroll period occurring after five (5) business days from the Companys receipt of the Change of Status Notice. |
A-1
8. | Perpetual Subscription. I understand that this Subscription Agreement shall remain in effect for successive Offer Periods until I withdraw from participation in the ESPP, or termination of the ESPP. |
9. | Taxes. I have reviewed the ESPP prospectus discussion of the federal tax consequences of participation in the ESPP and consulted with tax consultants as I deemed advisable prior to my participation in the ESPP. I hereby agree to notify the Company in writing within thirty (30) days of any disposition (transfer or sale) of any shares purchased under the ESPP if such disposition occurs within two (2) years of the Enrollment Date (the first day of the Offer Period during which the shares were purchased) or within one (1) year of the Exercise Date (the date I purchased such shares), and I will make adequate provision to the Company for foreign, federal, state or other tax withholding obligations, if any, which arise upon the disposition of the shares. In addition, the Company may withhold from my Compensation any amount necessary to meet applicable tax withholding obligations incident to my participation in the ESPP, including any withholding necessary to make available to the Company any tax deductions or benefits contingent on such withholding. |
10. | Dispute Resolution. The provisions of this Section 10 and Section 31 of the ESPP shall be the exclusive means of resolving disputes arising out of or relating to the Plan. The Company and I, or our respective successors (the parties), shall attempt in good faith to resolve any disputes arising out of or relating to the Plan by negotiation between individuals who have authority to settle the controversy. Negotiations shall be commenced by either party by notice of a written statement of the partys position and the name and title of the individual who will represent the party. Within thirty (30) days of the written notification, the parties shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to resolve the dispute. If the dispute has not been resolved by negotiation, the Company and I agree that any suit, action, or proceeding arising out of or relating to the Plan shall be brought in the United States District Court for the Northern District of California (or should such court lack jurisdiction to hear such action, suit or proceeding, in a California state court in the County of San Francisco) and that we shall submit to the jurisdiction of such court. The Company and I irrevocably waive, to the fullest extent permitted by law, any objection we may have to the laying of venue for any such suit, action or proceeding brought in such court. THE COMPANY AND I ALSO EXPRESSLY WAIVE ANY RIGHT WE HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions of this Section 10 or Section 28 of the ESPP shall for any reason be held invalid or unenforceable, it is the specific intent of the Company and I that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable. |
11. | Designation of Beneficiary. In the event of my death, I hereby designate the following person or trust as my beneficiary to receive all payments and shares due to me under the ESPP: o I am single o I am married |
Beneficiary (please print) | Relationship to Beneficiary(if any) | |||||
(Last) (First) (MI) | ||||||
Street Address | ||||||
City, State/Country, Zip | ||||||
12. | Termination of ESPP. I understand that the Company has the right, exercisable in its sole discretion, to amend or terminate the ESPP at any time, and a termination may be effective as early as an Exercise Date, including the establishment of an alternative date for an Exercise Date within each outstanding Offer Period. |
Date:
Employee Signature:
spouses signature (if beneficiary is other than spouse)
A-2
Exhibit B
CEVA, Inc. 2002 Employee Stock Purchase Plan
CHANGE OF STATUS NOTICE
CHANGE OF STATUS NOTICE
Withdrawal From ESPP
I hereby withdraw from the CEVA, Inc. 2002 Employee Stock Purchase Plan (the ESPP) and
agree that my option under the applicable Offer Period will be automatically terminated and
all accumulated payroll deductions credited to my account will be refunded to me or applied
to the purchase of Common Stock depending on the alternative indicated below. No further
payroll deductions will be made for the purchase of shares in the applicable Offer Period
and I shall be eligible to participate in a future Offer Period only by timely delivery to
the Company of a new Subscription Agreement.
o | Withdrawal and Purchase of Common Stock |
Payroll deductions will terminate, but your account balance will be applied to purchase
Common Stock on the next Exercise Date. Any remaining balance will be refunded.
o | Withdrawal Without Purchase of Common Stock |
Entire account balance will be refunded to me and no Common Stock will be purchased on the
next Exercise Date provided this notice is submitted to the Company ten (10) business days
prior to the next Exercise Date.
o | Change in Payroll Deduction |
I hereby elect to change my rate of payroll deduction under the ESPP as follows (select
one):
Percentage to be Deducted (circle one) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
An increase or a decrease in payroll deduction will be effective for the first full payroll
period commencing no fewer than five (5) business days following the Companys receipt of
this notice, unless this change is processed more quickly.
B-1
o | Change of Beneficiary o I am married o I am single |
This change of beneficiary shall terminate my previous beneficiary designation under the
ESPP. In the event of my death, I hereby designate the following person or trust as my
beneficiary to receive all payments and shares due to me under the ESPP:
Beneficiary (please print)
|
Relationship to Beneficiary(if any) | |||
(Last) (First) (MI) | ||||
Street Address |
||||
City, State/Country, Zip |
||||
Date: Employee Signature:
spouses signature (if new beneficiary is other than spouse)
B-3