Attached files
file | filename |
---|---|
10-K - FORM 10-K - Financial Engines, Inc. | f58381e10vk.htm |
EX-32.2 - EX-32.2 - Financial Engines, Inc. | f58381exv32w2.htm |
EX-32.1 - EX-32.1 - Financial Engines, Inc. | f58381exv32w1.htm |
EX-31.2 - EX-31.2 - Financial Engines, Inc. | f58381exv31w2.htm |
EX-23.1 - EX-23.1 - Financial Engines, Inc. | f58381exv23w1.htm |
EX-31.1 - EX-31.1 - Financial Engines, Inc. | f58381exv31w1.htm |
EX-10.16 - EX-10.16 - Financial Engines, Inc. | f58381exv10w16.htm |
EX-10.17 - EX-10.17 - Financial Engines, Inc. | f58381exv10w17.htm |
Exhibit
10.2
FINANCIAL ENGINES, INC.
AMENDED AND RESTATED
2009 STOCK INCENTIVE PLAN
(Approved by Shareholders February 24, 2010)
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
Table of Contents
Page | ||||||
SECTION 1.
|
ESTABLISHMENT AND PURPOSE | 1 | ||||
SECTION 2.
|
DEFINITIONS | 1 | ||||
(a)
|
Affiliate | 1 | ||||
(b)
|
Award | 1 | ||||
(c)
|
Board of Directors | 1 | ||||
(d)
|
Change in Control | 1 | ||||
(e)
|
Code | 2 | ||||
(f)
|
Committee | 3 | ||||
(g)
|
Company | 3 | ||||
(h)
|
Consultant | 3 | ||||
(i)
|
Employee | 3 | ||||
(j)
|
Exchange Act | 3 | ||||
(k)
|
Exercise Price | 3 | ||||
(l)
|
Fair Market Value | 3 | ||||
(m)
|
ISO | 3 | ||||
(n)
|
Nonstatutory Option or NSO | 4 | ||||
(o)
|
Offeree | 4 | ||||
(p)
|
Option | 4 | ||||
(q)
|
Optionee | 4 | ||||
(r)
|
Outside Director | 4 | ||||
(s)
|
Parent | 4 | ||||
(t)
|
Participant | 4 | ||||
(u)
|
Plan | 4 | ||||
(v)
|
Purchase Price | 4 | ||||
(w)
|
Restricted Share | 4 | ||||
(x)
|
Restricted Share Agreement | 4 | ||||
(y)
|
SAR | 4 | ||||
(z)
|
SAR Agreement | 4 | ||||
(aa)
|
Service | 4 | ||||
(bb)
|
Share | 5 | ||||
(cc)
|
Stock | 5 | ||||
(dd)
|
Stock Option Agreement | 5 | ||||
(ee)
|
Stock Unit | 5 |
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
-i-
Amended and Restated 2009 Stock Incentive Plan
-i-
Page | ||||||
(ff)
|
Stock Unit Agreement | 5 | ||||
(gg)
|
Subsidiary | 5 | ||||
(hh)
|
Total and Permanent Disability | 5 | ||||
SECTION 3.
|
ADMINISTRATION | 5 | ||||
(a)
|
Committee Composition | 5 | ||||
(b)
|
Committee for Non-Officer Grants | 5 | ||||
(c)
|
Committee Procedures | 6 | ||||
(d)
|
Committee Responsibilities | 6 | ||||
SECTION 4.
|
ELIGIBILITY | 7 | ||||
(a)
|
General Rule | 7 | ||||
(b)
|
Automatic Grants to Outside Directors | 7 | ||||
(c)
|
Ten-Percent Stockholders | 8 | ||||
(d)
|
Attribution Rules | 9 | ||||
(e)
|
Outstanding Stock | 9 | ||||
SECTION 5.
|
STOCK SUBJECT TO PLAN | 9 | ||||
(a)
|
Basic Limitation | 9 | ||||
(b)
|
Section 162(m) Award Limitation | 9 | ||||
(c)
|
Additional Shares | 9 | ||||
SECTION 6.
|
RESTRICTED SHARES | 10 | ||||
(a)
|
Restricted Stock Agreement | 10 | ||||
(b)
|
Payment for Awards | 10 | ||||
(c)
|
Vesting | 10 | ||||
(d)
|
Voting and Dividend Rights | 10 | ||||
(e)
|
Restrictions on Transfer of Shares | 10 | ||||
SECTION 7.
|
TERMS AND CONDITIONS OF OPTIONS | 10 | ||||
(a)
|
Stock Option Agreement | 10 | ||||
(b)
|
Number of Shares | 11 | ||||
(c)
|
Exercise Price | 11 | ||||
(d)
|
Withholding Taxes | 11 | ||||
(e)
|
Exercisability and Term | 11 | ||||
(f)
|
Exercise of Options | 11 | ||||
(g)
|
Effect of Change in Control | 11 | ||||
(h)
|
No Rights as a Stockholder | 12 | ||||
(i)
|
Modification, Extension and Renewal of Options | 12 | ||||
(j)
|
Restrictions on Transfer of Shares | 12 | ||||
(k)
|
Buyout Provisions | 12 | ||||
SECTION 8.
|
PAYMENT FOR SHARES | 12 |
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
-ii-
Amended and Restated 2009 Stock Incentive Plan
-ii-
Page | ||||||
(a)
|
General Rule | 12 | ||||
(b)
|
Surrender of Stock | 12 | ||||
(c)
|
Services Rendered | 12 | ||||
(d)
|
Cashless Exercise | 12 | ||||
(e)
|
Exercise/Pledge | 13 | ||||
(f)
|
Promissory Note | 13 | ||||
(g)
|
Other Forms of Payment | 13 | ||||
(h)
|
Limitations under Applicable Law | 13 | ||||
SECTION 9.
|
STOCK APPRECIATION RIGHTS | 13 | ||||
(a)
|
SAR Agreement | 13 | ||||
(b)
|
Number of Shares | 13 | ||||
(c)
|
Exercise Price | 13 | ||||
(d)
|
Exercisability and Term | 13 | ||||
(e)
|
Effect of Change in Control | 14 | ||||
(f)
|
Exercise of SARs | 14 | ||||
(g)
|
Modification or Assumption of SARs | 14 | ||||
(h)
|
Buyout Provisions | 14 | ||||
SECTION 10.
|
STOCK UNITS | 14 | ||||
(a)
|
Stock Unit Agreement | 14 | ||||
(b)
|
Payment for Awards | 14 | ||||
(c)
|
Vesting Conditions | 14 | ||||
(d)
|
Voting and Dividend Rights | 14 | ||||
(e)
|
Form and Time of Settlement of Stock Units | 15 | ||||
(f)
|
Death of Recipient | 15 | ||||
(g)
|
Creditors Rights | 15 | ||||
SECTION 11.
|
ADJUSTMENT OF SHARES | 15 | ||||
(a)
|
Adjustments | 15 | ||||
(b)
|
Dissolution or Liquidation | 16 | ||||
(c)
|
Reorganizations | 16 | ||||
(d)
|
Reservation of Rights | 16 | ||||
SECTION 12.
|
DEFERRAL OF AWARDS | 17 | ||||
(a)
|
Committee Powers | 17 | ||||
(b)
|
General Rules | 17 | ||||
SECTION 13.
|
AWARDS UNDER OTHER PLANS | 17 | ||||
SECTION 14.
|
PAYMENT OF DIRECTORS FEES IN SECURITIES | 17 | ||||
(a)
|
Effective Date | 17 | ||||
(b)
|
Elections to Receive NSOs, Restricted Shares or Stock Units | 17 |
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
-iii-
Amended and Restated 2009 Stock Incentive Plan
-iii-
Page | ||||||
(c)
|
Number and Terms of NSOs, Restricted Shares or Stock Units | 18 | ||||
SECTION 15.
|
LEGAL AND REGULATORY REQUIREMENTS | 18 | ||||
SECTION 16.
|
WITHHOLDING TAXES | 18 | ||||
(a)
|
General | 18 | ||||
(b)
|
Share Withholding | 18 | ||||
SECTION 17.
|
OTHER PROVISIONS APPLICABLE TO AWARDS | 18 | ||||
(a)
|
Transferability | 18 | ||||
(b)
|
Substitution and Assumption of Awards | 19 | ||||
(c)
|
Qualifying Performance Criteria | 19 | ||||
SECTION 18.
|
NO EMPLOYMENT RIGHTS | 20 | ||||
SECTION 19.
|
DURATION AND AMENDMENTS | 20 | ||||
(a)
|
Term of the Plan | 20 | ||||
(b)
|
Right to Amend or Terminate the Plan | 20 | ||||
(c)
|
Effect of Termination | 20 | ||||
SECTION 20.
|
EXECUTION | 21 |
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
-iv-
FINANCIAL ENGINES, INC.
AMENDED AND RESTATED
2009 STOCK INCENTIVE PLAN
SECTION 1. ESTABLISHMENT AND PURPOSE.
The Plan was adopted by the Board of Directors on November 18, 2009, and became effective on
March 16, 2010, immediately prior to the closing of the initial offering of Stock to the public
pursuant to a registration statement filed by the Company with the Securities and Exchange
Commission (the Effective Date). The Plan was amended and restated effective December 31, 2010 to
amend the vesting provisions for grants to Outside Directors under Section 4(b). The purpose of the
Plan is to promote the long-term success of the Company and the creation of stockholder value by
(a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range
objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and
Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and
Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to
achieve this purpose by providing for Awards in the form of restricted shares, stock units, options
(which may constitute incentive stock options or nonstatutory stock options) or stock appreciation
rights.
SECTION 2. DEFINITIONS.
(a) Affiliate shall mean any entity other than a Subsidiary, if the Company and/or one or
more Subsidiaries own not less than 50% of such entity.
(b) Award shall mean any award of an Option, a SAR, a Restricted Share or a Stock Unit under
the Plan.
(c) Board of Directors shall mean the Board of Directors of the Company, as constituted from
time to time.
(d) Change in Control shall mean the occurrence of any of the following events:
(i) | A change in the composition of the Board of Directors occurs, as a result of which fewer than one-half of the incumbent directors are directors who either: |
(A) Had been directors of the Company on the look-back date (as defined
below) (the original directors); or
(B) Were elected, or nominated for election, to the Board of Directors with the
affirmative votes of at least a majority of the aggregate of the original directors
who were still in office at the time of the election or nomination and the directors
whose election or nomination was previously so approved (the continuing
directors); or
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
(ii) | Any person (as defined below) who by the acquisition or aggregation of securities, is or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Companys then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the Base Capital Stock); except that any change in the relative beneficial ownership of the Companys securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such persons ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such persons beneficial ownership of any securities of the Company; or | ||
(iii) | The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or | ||
(iv) | The sale, transfer or other disposition of all or substantially all of the Companys assets. |
For purposes of subsection (d)(i) above, the term look-back date shall mean the later of (1)
the Effective Date or (2) the date 24 months prior to the date of the event that may constitute a
Change in Control.
For purposes of subsection (d)(ii)) above, the term person shall have the same meaning as
when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other
fiduciary holding securities under an employee benefit plan maintained by the Company or
a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their ownership of the Stock.
Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a
Change in Control if its sole purpose is to change the state of the Companys incorporation or to
create a holding company that will be owned in substantially the same proportions by the persons
who held the Companys securities immediately before such transaction, and a Change in Control
shall not be deemed to occur if the Company files a registration statement with the United States
Securities and Exchange Commission for the initial offering of Stock to the public.
(e) Code shall mean the Internal Revenue Code of 1986, as amended.
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
(f) Committee shall mean the Compensation Committee as designated by the Board of Directors,
which is authorized to administer the Plan, as described in Section 3 hereof.
(g) Company shall mean Financial Engines, Inc., a Delaware corporation.
(h) Consultant shall mean a consultant or advisor who provides bona fide services to the
Company, a Parent, a Subsidiary or an Affiliate as an independent contractor (not including service
as a member of the Board of Directors) or a member of the board of directors of a Parent or a
Subsidiary, in each case who is not an Employee.
(i) Employee shall mean any individual who is a common-law employee of the Company, a
Parent, a Subsidiary or an Affiliate.
(j) Exchange Act shall mean the Securities Exchange Act of 1934, as amended.
(k) Exercise Price shall mean, in the case of an Option, the amount for which one Share may
be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement.
Exercise Price, in the case of a SAR, shall mean an amount, as specified in the applicable SAR
Agreement, which is subtracted from the Fair Market Value of one Share in determining the amount
payable upon exercise of such SAR.
(l) Fair Market Value
with respect to a Share, shall mean the market price of one Share, determined by the Committee
as follows:
(i) | If the Stock was traded over-the-counter on the date in question, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or, if not so quoted, shall be equal to the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on any such system, by the Pink Quote system; | ||
(ii) | If the Stock was traded on any established stock exchange (such as the New York Stock Exchange, The Nasdaq Global Market or The Nasdaq Global Select Market) or national market system on the date in question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable exchange or system; and | ||
(iii) | If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as it deems appropriate. |
In all cases, the determination of Fair Market Value by the Committee shall be conclusive and
binding on all persons.
(m) ISO shall mean an employee incentive stock option described in Section 422 of the Code.
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
(n) Nonstatutory Option or NSO shall mean an employee stock option that is not an ISO.
(o) Offeree shall mean an individual to whom the Committee has offered the right to acquire
Shares under the Plan (other than upon exercise of an Option).
(p) Option shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the
holder to purchase Shares.
(q) Optionee shall mean an individual or estate who holds an Option or SAR.
(r) Outside Director
shall mean a member of the Board of Directors who is not a common-law employee of, or paid
consultant to, the Company, a Parent or a Subsidiary.
(s) Parent shall mean any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the Company owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. A corporation that attains the status of a Parent on a date after
the adoption of the Plan shall be a Parent commencing as of such date.
(t) Participant shall mean an individual or estate who holds an Award.
(u) Plan shall mean this 2009 Stock Incentive Plan of Financial Engines, Inc., as amended
from time to time.
(v) Purchase Price shall mean the consideration for which one Share may be acquired under
the Plan (other than upon exercise of an Option), as specified by the Committee.
(w) Restricted Share shall mean a Share awarded under the Plan.
(x) Restricted Share Agreement shall mean the agreement between the Company and the
recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to
such Restricted Shares.
(y) SAR shall mean a stock appreciation right granted under the Plan.
(z) SAR Agreement shall mean the agreement between the Company and an Optionee which
contains the terms, conditions and restrictions pertaining to his or her SAR.
(aa) Service shall mean service as an Employee, Consultant or Outside Director, subject to
such further limitations as may be set forth in the Plan or the applicable Stock Option Agreement,
SAR Agreement, Restricted Share Agreement or Stock Unit Agreement. Service does not terminate when
an Employee goes on a bona fide leave of absence, that was approved by the
Company in writing, if the terms of the leave provide for continued Service crediting, or when
continued Service crediting is required by applicable law. However, for purposes of determining
whether an Option is entitled to ISO status, an Employees employment will be treated as
terminating 90 days after such Employee went on leave, unless such Employees right to return to
active work is guaranteed by law or by a contract. Service terminates in any event
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
when the
approved leave ends, unless such Employee immediately returns to active work. The Company
determines which leaves of absence count toward Service, and when Service terminates for all
purposes under the Plan.
(bb) Share shall mean one share of Stock, as adjusted in accordance with Section 11 (if
applicable).
(cc) Stock shall mean the Common Stock of the Company.
(dd) Stock Option Agreement shall mean the agreement between the Company and an Optionee
that contains the terms, conditions and restrictions pertaining to such Option.
(ee) Stock Unit shall mean a bookkeeping entry representing the Companys obligation to
deliver one Share (or distribute cash) on a future date in accordance with the provisions of a
Stock Unit Agreement.
(ff) Stock Unit Agreement shall mean the agreement between the Company and the recipient of
a Stock Unit which contains the terms, conditions and restrictions pertaining to such Stock Unit.
(gg) Subsidiary shall mean any corporation, if the Company and/or one or more other
Subsidiaries own not less than 50% of the total combined voting power of all classes of outstanding
stock of such corporation. A corporation that attains the status of a Subsidiary on a date after
the adoption of the Plan shall be considered a Subsidiary commencing as of such date.
(hh) Total and Permanent Disability shall mean any permanent and total disability as defined
by section 22(e)(3) of the Code.
SECTION 3. ADMINISTRATION.
(a) Committee Composition. The Plan shall be administered by the Board or a Committee appointed by the Board. The
Committee shall consist of two or more directors of the Company. In addition, to the extent
required by the Board, the composition of the Committee shall satisfy (i) such requirements as the
Securities and Exchange Commission may establish for administrators acting under plans intended to
qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and (ii) such
requirements as the Internal Revenue Service may establish for outside directors acting under plans
intended to qualify for exemption under Section 162(m)(4)(C) of the Code.
(b) Committee for Non-Officer Grants. The Board may also appoint one or more separate
committees of the Board, each composed of one or more directors of the Company who need not satisfy
the requirements of Section 3(a), who may administer the Plan with respect to Employees who are not
considered officers or directors of the Company under Section 16 of the Exchange Act, may grant
Awards under the Plan to such Employees and may determine all terms of such grants. Within the
limitations of the preceding sentence, any reference in the Plan to the Committee shall include
such committee or committees appointed pursuant to the preceding sentence. To the extent permitted
by applicable laws, the Board of Directors may also authorize one or more officers of the Company
to designate Employees, other than officers under Section
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
16 of the Exchange Act, to receive Awards
and/or to determine the number of such Awards to be received by such persons; provided, however,
that the Board of Directors shall specify the total number of Awards that such officers may so
award.
(c) Committee Procedures. The Board of Directors shall designate one of the members of the
Committee as chairman. The Committee may hold meetings at such times and places as it shall
determine. The acts of a majority of the Committee members present at meetings at which a quorum
exists, or acts reduced to or approved in writing (including via email) by all Committee members,
shall be valid acts of the Committee.
(d) Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall
have full authority and discretion to take the following actions:
(i) | To interpret the Plan and to apply its provisions; | ||
(ii) | To adopt, amend or rescind rules, procedures and forms relating to the Plan; | ||
(iii) | To adopt, amend or terminate sub-plans established for the purpose of satisfying applicable foreign laws including qualifying for preferred tax treatment under applicable foreign tax laws; | ||
(iv) | To authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan; | ||
(v) | To determine when Awards are to be granted under the Plan; | ||
(vi) | To select the Offerees and Optionees; | ||
(vii) | To determine the number of Shares to be made subject to each Award; | ||
(viii) | To prescribe the terms and conditions of each Award, including (without limitation) the Exercise Price and Purchase Price, and the vesting or duration of the Award (including accelerating the vesting of Awards, either at the time of the Award or thereafter, without the consent of the Participant), to determine whether an Option is to be classified as an ISO or as a Nonstatutory Option, and to specify the provisions of the agreement relating to such Award; | ||
(ix) | To amend any outstanding Award agreement, subject to applicable legal restrictions and to the consent of the Participant if the Participants rights or obligations would be materially impaired; | ||
(x) | To prescribe the consideration for the grant of each Award or other right under the Plan and to determine the sufficiency of such consideration; | ||
(xi) | To determine the disposition of each Award or other right under the Plan in the event of a Participants divorce or dissolution of marriage; |
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
(xii) | To determine whether Awards under the Plan will be granted in replacement of other grants under an incentive or other compensation plan of an acquired business; | ||
(xiii) | To correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award agreement; | ||
(xiv) | To establish or verify the extent of satisfaction of any performance goals or other conditions applicable to the grant, issuance, exercisability, vesting and/or ability to retain any Award; and | ||
(xv) | To take any other actions deemed necessary or advisable for the administration of the Plan. |
Subject to the requirements of applicable law, the Committee may designate persons other than
members of the Committee to carry out its responsibilities and may prescribe such conditions and
limitations as it may deem appropriate, except that the Committee may not delegate its authority
with regard to the selection for participation of or the granting of Options or other rights under
the Plan to persons subject to Section 16 of the Exchange Act. All decisions, interpretations and
other actions of the Committee shall be final and binding on all Offerees, all Optionees, and all
persons deriving their rights from an Offeree or Optionee. No member of the Committee shall be
liable for any action that he has taken or has failed to take in good faith with respect to the
Plan, any Option, or any right to acquire Shares under the Plan.
SECTION 4. ELIGIBILITY.
(a) General Rule. Only common-law employees of the Company, a Parent or a Subsidiary shall be
eligible for the grant of ISOs. Only Employees, Consultants and Outside Directors shall be eligible
for the grant of Restricted Shares, Stock Units, Nonstatutory Options or SARs.
(b) Automatic Grants to Outside Directors.
(i) | Each Outside Director who first joins the Board of Directors on or after the Effective Date, and who was not previously an Employee, shall receive a Nonstatutory Option, subject to approval of the Plan by the Companys stockholders, to purchase 50,000 Shares (subject to adjustment under Section 11) on the date of his or her election to the Board of Directors. The Shares subject to each Option granted under this Section 4(b)(i) shall vest and become exercisable on substantially the same terms and conditions as Options granted to employees at the time of grant under this Section 4(b)(i), subject to the Committees discretion. As of the time of the December 31, 2010 amendment of this Plan, that vesting is as follows: Twenty-five percent (25%) of the Shares subject to each Option granted under this Section 4(b)(i) shall vest and become exercisable on the first anniversary of the date of grant. The balance of the Shares subject to such Option (i.e. the remaining seventy-five percent (75%)) shall vest and become exercisable monthly over a 3-year period beginning on the day |
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
which is one month after the first anniversary of the date of grant, at a monthly rate of 2.0833% of the total number of Shares subject to such Option. Notwithstanding the foregoing, each such Option shall become vested if a Change in Control occurs with respect to the Company during the Optionees Service. | |||
(ii) | On the first business day following the conclusion of each regular annual meeting of the Companys stockholders, commencing with the annual meeting occurring after the Effective Date, each Outside Director who was not elected to the Board for the first time at such meeting and who will continue serving as a member of the Board of Directors thereafter shall receive an Option to purchase 10,000 Shares (subject to adjustment under Section 11), provided that such Outside Director has served on the Board of Directors for at least six months. The Shares subject to each Option granted under this Section 4(b)(ii) shall vest and become exercisable on substantially the same terms and conditions as Options granted to employees at the time of grant under this Section 4(b)(ii), subject to the Committees discretion. As of the time of the December 31, 2010 amendment of this Plan, that vesting is as follows: Twenty-five percent (25%) of the Shares subject to each Option granted under this Section 4(b)(ii) shall vest and become exercisable on the first anniversary of the date of grant. The balance of the Shares subject to such Option (i.e. the remaining seventy-five percent (75%)) shall vest and become exercisable monthly over a 3-year period beginning on the day which is one month after the first anniversary of the date of grant, at a monthly rate of 2.0833% of the total number of Shares subject to such Option. Notwithstanding the foregoing, each Option granted under this Section 4(b)(ii) shall become vested if a Change in Control occurs with respect to the Company during the Optionees Service. | ||
(iii) | The Exercise Price of all Nonstatutory Options granted to an Outside Director under this Section 4(b) shall be equal to 100% of the Fair Market Value of a Share on the date of grant, payable in one of the forms described in Section 8(a), (b) or (d). | ||
(iv) | All Nonstatutory Options granted to an Outside Director under this Section 4(b) shall terminate on the earlier of (A) the day before the tenth anniversary of the date of grant of such Options or (B) the date twelve months after the termination of such Outside Directors Service for any reason; provided, however, that any such Options that are not vested upon the termination of the Outside Directors Service as a member of the Board of Directors for any reason shall terminate immediately and may not be exercised. |
(c) Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting
power of all classes of outstanding stock of the Company, a Parent or
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
Subsidiary shall not be
eligible for the grant of an ISO unless such grant satisfies the requirements of Section 422(c)(5)
of the Code.
(d) Attribution Rules. For purposes of Section 4(c) above, in determining stock ownership, an
Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employees
brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly,
by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately
by or for its stockholders, partners or beneficiaries.
(e) Outstanding Stock. For purposes of Section 4(c) above, outstanding stock shall include
all stock actually issued and outstanding immediately after the grant. Outstanding stock shall
not include shares authorized for issuance under outstanding options held by the Employee or by any
other person.
SECTION 5. STOCK SUBJECT TO PLAN.
(a) Basic Limitation.
Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares.
The aggregate number of Shares authorized for issuance as Awards under the Plan shall not exceed
2,000,000 Shares, plus (x) any Shares subject to outstanding options under the Companys 1998 Stock
Plan (the Predecessor Plan) on the effective date of this Plan that are subsequently forfeited or
terminated for any reason before being exercised, such number of additional Shares not to exceed an
aggregate of 2,000,000 Shares, and (y) an annual increase on the first day of each fiscal year
beginning in 2010 and ending in 2019, in an amount equal to the lesser of (i) 2,000,000 Shares,
(ii) 4% of the outstanding Shares on the last day of the immediately preceding year or (iii) an
amount determined by the Board. The limitations of this Section 5(a) shall be subject to adjustment
pursuant to Section 11. The number of Shares that are subject to Options or other Awards
outstanding at any time under the Plan shall not exceed the number of Shares which then remain
available for issuance under the Plan. The Company, during the term of the Plan, shall at all times
reserve and keep available sufficient Shares to satisfy the requirements of the Plan.
(b) Section 162(m) Award Limitation. Notwithstanding any contrary provisions of the Plan, and
subject to the provisions of Section 11, no Participant may receive Options, SARs, Restricted
Shares or Stock Units under the Plan in any calendar year that relate to an aggregate of more than
500,000 Shares, and no more than two times this amount in the first year of employment, and the
maximum aggregate amount of cash that may be paid to any Participant during any calendar year with
respect to Awards payable in cash shall be $1,000,000.
(c) Additional Shares. If Restricted Shares or Shares issued upon the exercise of Options are
forfeited, then such Shares shall again become available for Awards under the Plan. If Stock Units,
Options or SARs are forfeited or terminate for any reason before being exercised or settled, or an
Award is settled in cash without the delivery of Shares to the holder, then any Shares subject to
the Award shall again become available for Awards under the Plan. Only the number of Shares (if
any) actually issued in settlement of Awards shall reduce the number available in Section 5(a) and
the balance shall again become available for Awards under the Plan. Any Shares tendered or
withheld to satisfy the grant or exercise price or tax withholding obligation pursuant to any Award
shall again become available for Awards under the Plan.
Financial Engines, Inc.
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Amended and Restated 2009 Stock Incentive Plan
Notwithstanding the foregoing and, subject
to adjustment as provided in Section 11, the maximum number of Shares that may be issued upon the
exercise of ISOs will equal the aggregate Share number stated in Section 5(a), plus, to the extent
allowable under Section 422 of the Code and the Treasury Regulations promulgated thereunder, any
Shares that become available for issuance under the Plan pursuant this Section 5(c).
SECTION 6. RESTRICTED SHARES.
(a) Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be
evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted
Shares shall be subject to all
applicable terms of the Plan and may be subject to any other terms that are not inconsistent
with the Plan. The provisions of the various Restricted Stock Agreements entered into under the
Plan need not be identical.
(b) Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such
consideration as the Committee may determine, including (without limitation) cash, cash
equivalents, full-recourse promissory notes, past services and future services.
(c) Vesting. Each Award of Restricted Shares may or may not be subject to vesting. Vesting
shall occur, in full or in installments, upon satisfaction of the conditions specified in the
Restricted Stock Agreement. A Restricted Stock Agreement may provide for accelerated vesting in the
event of the Participants death, disability or retirement or other events. The Committee may
determine, at the time of granting Restricted Shares of thereafter, that all or part of such
Restricted Shares shall become vested in the event that a Change in Control occurs with respect to
the Company.
(d) Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall
have the same voting, dividend and other rights as the Companys other stockholders. A Restricted
Stock Agreement, however, may require that the holders of Restricted Shares invest any cash
dividends received in additional Restricted Shares. Such additional Restricted Shares shall be
subject to the same conditions and restrictions as the Award with respect to which the dividends
were paid.
(e) Restrictions on Transfer of Shares. Restricted Shares shall be subject to such rights of
repurchase, rights of first refusal or other restrictions as the Committee may determine. Such
restrictions shall be set forth in the applicable Restricted Stock Agreement and shall apply in
addition to any general restrictions that may apply to all holders of Shares.
SECTION 7. TERMS AND CONDITIONS OF OPTIONS.
(a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a
Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all
applicable terms and conditions of the Plan and may be subject to any other terms and conditions
which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in
a Stock Option Agreement. The Stock Option Agreement shall specify whether the Option is an ISO or
an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not
be identical.
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Amended and Restated 2009 Stock Incentive Plan
(b)Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the
Option and shall provide for the adjustment of such number in accordance with Section 11.
(c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise
Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of
grant, except as otherwise provided in 4(c), and the Exercise Price of an NSO shall not be less
100% of the Fair Market Value of a Share on the date of grant. Notwithstanding the foregoing,
Options may be granted with an Exercise Price of less than 100% of the Fair Market Value per Share
on the date of grant pursuant to a transaction described in, and in a manner consistent with,
Section 424(a) of the Code. Subject to the foregoing in this Section 7(c), the Exercise Price
under any Option shall be determined by the Committee in its sole discretion. The Exercise Price
shall be payable in one of the forms described in Section 8.
(d) Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make
such arrangements as the Committee may require for the satisfaction of any federal, state, local or
foreign withholding tax obligations that may arise in connection with such exercise. The Optionee
shall also make such arrangements as the Committee may require for the satisfaction of any federal,
state, local or foreign withholding tax obligations that may arise in connection with the
disposition of Shares acquired by exercising an Option.
(e) Exercisability and Term. Each Stock Option Agreement shall specify the date when all or
any installment of the Option is to become exercisable. The Stock Option Agreement shall also
specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years
from the date of grant (five years for ISOs granted to Employees described in Section 4(c)). A
Stock Option Agreement may provide for accelerated exercisability in the event of the Optionees
death, disability, or retirement or other events and may provide for expiration prior to the end of
its term in the event of the termination of the Optionees Service. Options may be awarded in
combination with SARs, and such an Award may provide that the Options will not be exercisable
unless the related SARs are forfeited. Subject to the foregoing in this Section 7(e), the Committee
at its sole discretion shall determine when all or any installment of an Option is to become
exercisable and when an Option is to expire.
(f) Exercise of Options. Each Stock Option Agreement shall set forth the extent to which the
Optionee shall have the right to exercise the Option following termination of the Optionees
Service with the Company and its Subsidiaries, and the right to exercise the Option of any
executors or administrators of the Optionees estate or any person who has acquired such Option(s)
directly from the Optionee by bequest or inheritance. Such provisions shall be determined in the
sole discretion of the Committee, need not be uniform among all Options issued pursuant to the
Plan, and may reflect distinctions based on the reasons for termination of Service.
(g) Effect of Change in Control. The Committee may determine, at the time of granting an
Option or thereafter, that such Option shall become exercisable as to all or part of the Shares
subject to such Option in the event that a Change in Control occurs with respect to the Company.
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Amended and Restated 2009 Stock Incentive Plan
(h) No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no
rights as a stockholder with respect to any Shares covered by his Option until the date of the
issuance of a stock certificate for such Shares. No adjustments shall be made, except as provided
in Section 11.
(i) Modification, Extension and Renewal of Options. Within the limitations of the Plan, the
Committee may modify, extend or renew outstanding options or may accept the cancellation of
outstanding options (to the extent not previously exercised), whether or not granted hereunder, in
return for the grant of new Options for the same or a different number of Shares and at the same or
a different Exercise Price, or in return for the grant of the same or a different number of Shares.
The foregoing notwithstanding, no modification of an Option shall, without the consent of the
Optionee, materially impair his or her rights or obligations under such Option.
(j) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be
subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and
other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in
the applicable Stock Option Agreement and shall apply in addition to any general restrictions that
may apply to all holders of Shares.
(k) Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in
cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash
out an Option previously granted, in either case at such time and based upon such terms and
conditions as the Committee shall establish.
SECTION 8. PAYMENT FOR SHARES.
(a) General Rule. The entire Exercise Price or Purchase Price of Shares issued under the Plan
shall be payable in lawful money of the United States of America at the time when such Shares are
purchased, except as provided in Section 8(b) through Section 8(g) below.
(b) Surrender of Stock.
To the extent that a Stock Option Agreement so provides, payment may be made all or in part
by surrendering, or attesting to the ownership of, Shares which have already been owned by the
Optionee or his representative. Such Shares shall be valued at their Fair Market Value on the date
when the new Shares are purchased under the Plan. The Optionee shall not surrender, or attest to
the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to
recognize compensation expense (or additional compensation expense) with respect to the Option for
financial reporting purposes.
(c) Services Rendered. At the discretion of the Committee, Shares may be awarded under the
Plan in consideration of services rendered to the Company or a Subsidiary. If Shares are awarded
without the payment of a Purchase Price in cash, the Committee shall make a determination (at the
time of the Award) of the value of the services rendered by the Offeree and the sufficiency of the
consideration to meet the requirements of Section 6(b).
(d) Cashless Exercise. To the extent that a Stock Option Agreement so provides, payment may be
made all or in part by delivery (on a form prescribed by the Committee) of an
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Amended and Restated 2009 Stock Incentive Plan
irrevocable direction
to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the
Company in payment of the aggregate Exercise Price.
(e) Exercise/Pledge. To the extent that a Stock Option Agreement so provides, payment may be
made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction
to a securities broker or lender to pledge Shares, as security for a loan, and to deliver all or
part of the loan proceeds to the Company in payment of the aggregate Exercise Price.
(f) Promissory Note. To the extent that a Stock Option Agreement or Restricted Stock Agreement
so provides, payment may be made all or in part by delivering (on a form prescribed by the Company)
a full-recourse promissory note.
(g) Other Forms of Payment. To the extent that a Stock Option Agreement or Restricted Stock
Agreement so provides, payment may be made in any other form that is consistent with applicable
laws, regulations and rules.
(h) Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option
Agreement or Restricted Stock Agreement to the contrary, payment may not be made in any form that
is unlawful, as determined by the Committee in its sole discretion.
SECTION 9. STOCK APPRECIATION RIGHTS.
(a) SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement
between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan
and may be subject to any other terms that are not inconsistent with the Plan. The provisions of
the various SAR Agreements entered into under the Plan need not be identical.
(b) Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR
pertains and shall provide for the adjustment of such number in accordance with Section 11.
(c) Exercise Price. Each SAR Agreement shall specify the Exercise Price. The Exercise Price
of a SAR shall not be less than 100% of the Fair Market Value of a Share on the date of grant.
Notwithstanding the foregoing, SARs may be granted with an Exercise Price of less than 100% of the
Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a
manner consistent with, Section 424(a) of the Code. Subject to the foregoing in this Section 9(c),
the Exercise Price under any SAR shall be determined by the Committee in its sole discretion.
(d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any
installment of the SAR is to become exercisable. The SAR Agreement shall also specify the term of
the SAR. A SAR Agreement may provide for accelerated exercisability in the event of the Optionees
death, disability or retirement or other events and may provide for expiration prior to the end of
its term in the event of the termination of the Optionees service. SARs may be awarded in
combination with Options, and such an Award may provide that the SARs will not be exercisable
unless the related Options are forfeited. A SAR may be included in an ISO only at the time of grant
but may be included in an NSO at the time of grant or thereafter. A SAR
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Amended and Restated 2009 Stock Incentive Plan
granted under the Plan may
provide that it will be exercisable only in the event of a Change in Control.
(e) Effect of Change in Control. The Committee may determine, at the time of granting a SAR or
thereafter, that such SAR shall become fully exercisable as to all Common Shares subject to such
SAR in the event that a Change in Control occurs with respect to the Company.
(f) Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to
exercise the SAR after his or her death) shall receive from the Company (a) Shares, (b) cash or (c)
a combination of Shares and cash, as the Committee shall determine. The amount of cash and/or the
Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal
to the amount by which the Fair Market Value (on the date of surrender) of the Shares subject
to the SARs exceeds the Exercise Price.
(g) Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may
modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs
(whether granted by the Company or by another issuer) in return for the grant of new SARs for the
same or a different number of shares and at the same or a different exercise price. The foregoing
notwithstanding, no modification of a SAR shall, without the consent of the holder, materially
impair his or her rights or obligations under such SAR.
(h) Buyout Provisions. The Committee may at any time (a) offer to buy out for a
payment in cash or cash equivalents a SAR previously granted, or (b) authorize an Optionee to elect
to cash out a SAR previously granted, in either case at such time and based upon such terms and
conditions as the Committee shall establish.
SECTION 10. STOCK UNITS.
(a) Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a
Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to
all applicable terms of the Plan and may be subject to any other terms that are not inconsistent
with the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need
not be identical.
(b) Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no
cash consideration shall be required of the Award recipients.
(c) Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting.
Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in
the Stock Unit Agreement. A Stock Unit Agreement may provide for accelerated vesting in the event
of the Participants death, disability or retirement or other events. The Committee may determine,
at the time of granting Stock Units or thereafter, that all or part of such Stock Units shall
become vested in the event that a Change in Control occurs with respect to the Company.
(d) Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior
to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
Committees
discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be
credited with an amount equal to all
cash dividends paid on one Share while the Stock Unit is outstanding. Dividend equivalents may
be converted into additional Stock Units. Settlement of dividend equivalents may be made in the
form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any
dividend equivalents which are not paid shall be subject to the same conditions and restrictions
(including without limitation, any forfeiture conditions) as the Stock Units to which they attach.
(e) Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made
in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee.
The actual number of Stock Units eligible for settlement may be larger or smaller than the number
included in the original Award, based on predetermined performance factors. Methods of converting
Stock Units into cash may include (without limitation) a method based on the average Fair Market
Value of Shares over a series of trading days. A Stock Unit Agreement may provide that vested Stock
Units may be settled in a lump sum or in installments. A Stock Unit Agreement may provide that the
distribution may occur or commence when all vesting conditions applicable to the Stock Units have
been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred
distribution may be increased by an interest factor or by dividend equivalents. Until an Award of
Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to
Section 11.
(f) Death of Recipient. Any Stock Units Award that becomes payable after the recipients death
shall be distributed to the recipients beneficiary or beneficiaries. Each recipient of a Stock
Units Award under the Plan shall designate one or more beneficiaries for this purpose by filing the
prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed
form with the Company at any time before the Award recipients death. If no beneficiary was
designated or if no designated beneficiary survives the Award recipient, then any Stock Units Award
that becomes payable after the recipients death shall be distributed to the recipients estate.
(g) Creditors Rights. A holder of Stock Units shall have no rights other than those of a
general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the
Company, subject to the terms and conditions of the applicable Stock Unit Agreement.
SECTION 11. ADJUSTMENT OF SHARES.
(a) Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a
dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an
amount that has a material effect on the price of Shares, a combination or consolidation of the
outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a
recapitalization, a spin-off or a similar occurrence, the Committee shall make appropriate and
equitable adjustments in:
(i) | The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Section 5; | ||
(ii) | The limitations set forth in Sections 5(a) and (b); |
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Amended and Restated 2009 Stock Incentive Plan
(iii) | The number of NSOs to be granted to Outside Directors under Section 4(b); | ||
(iv) | The number of Shares covered by each outstanding Option and SAR; | ||
(v) | The Exercise Price under each outstanding Option and SAR; and | ||
(vi) | The number of Stock Units included in any prior Award which has not yet been settled. |
(b) Dissolution or Liquidation. To the extent not previously exercised or settled, Options,
SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the
Company.
(c) Reorganizations. In the event that the Company is a party to a merger or other
reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization.
Subject to compliance with Section 409A of the Code, such agreement shall provide for:
(i) | The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; | ||
(ii) | The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary; | ||
(iii) | The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; | ||
(iv) | Full exercisability or vesting and accelerated expiration of the outstanding Awards; or | ||
(v) | Settlement of the intrinsic value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards. |
(d) Reservation of Rights. Except as provided in this Section 11, a Participant shall have no
rights by reason of any subdivision or consolidation of shares of stock of any class, the payment
of any dividend or any other increase or decrease in the number of shares of stock of any class.
Any issue by the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or Exercise Price of Shares subject to an Award. The grant of an Award
pursuant to the
Plan shall not affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure, to merge or
consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.
In the event of any change affecting the Shares or the Exercise Price of Shares subject to an
Award, including a merger or other reorganization, for reasons of administrative convenience, the
Company in its sole discretion may refuse to permit the exercise of any Award during a period of up
to thirty (30) days prior to the occurrence of such event.
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Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
SECTION 12. DEFERRAL OF AWARDS.
(a) Committee Powers. Subject to compliance with Section 409A of the Code, the Committee (in
its sole discretion) may permit or require a Participant to:
(i) | Have cash that otherwise would be paid to such Participant as a result of the exercise of a SAR or the settlement of Stock Units credited to a deferred compensation account established for such Participant by the Committee as an entry on the Companys books; | ||
(ii) | Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of Stock Units; or | ||
(iii) | Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR or the settlement of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the Companys books. Such amounts shall be determined by reference to the Fair Market Value of such Shares as of the date when they otherwise would have been delivered to such Participant. |
(b) General Rules. A deferred compensation account established under this Section 12 may be
credited with interest or other forms of investment return, as determined by the Committee. A
Participant for whom such an account is established shall have no rights other than those of a
general creditor of the Company. Such an account shall represent an unfunded and unsecured
obligation of the Company and shall be subject to the terms and conditions of the applicable
agreement between such Participant and the Company. If the deferral or conversion of Awards is
permitted or required, the Committee (in its sole discretion) may establish rules, procedures and
forms pertaining to such Awards, including (without limitation) the settlement of deferred
compensation accounts established under this Section 12.
SECTION 13. AWARDS UNDER OTHER PLANS.
The Company may grant awards under other plans or programs. Such awards may be settled in the
form of Shares issued under this Plan. Such Shares shall be treated for all purposes
under the Plan like Shares issued in settlement of Stock Units and shall, when issued, reduce
the number of Shares available under Section 5.
SECTION 14. PAYMENT OF DIRECTORS FEES IN SECURITIES.
(a) Effective Date. No provision of this Section 14 shall be effective unless and until the
Board has determined to implement such provision.
(b) Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect
to receive his or her annual retainer payments and/or meeting fees from the Company in the form of
cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board.
Such NSOs, Restricted Shares and Stock Units shall be issued under
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Amended and Restated 2009 Stock Incentive Plan
the Plan. An election under this
Section 14 shall be filed with the Company on the prescribed form.
(c) Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted
Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting
fees that would otherwise be paid in cash shall be calculated in a manner determined by the Board.
The terms of such NSOs, Restricted Shares or Stock Units shall also be determined by the Board.
SECTION 15. LEGAL AND REGULATORY REQUIREMENTS.
Shares shall not be issued under the Plan unless the issuance and delivery of such Shares
complies with (or is exempt from) all applicable requirements of law, including (without
limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated
thereunder, state securities laws and regulations and the regulations of any stock exchange on
which the Companys securities may then be listed, and the Company has obtained the approval or
favorable ruling from any governmental agency which the Company determines is necessary or
advisable. The Company shall not be liable to a Participant or other persons as to: (a) the
non-issuance or sale of Shares as to which the Company has not obtained from any regulatory body
having jurisdiction the authority deemed by the Companys counsel to be necessary to the lawful
issuance and sale of any Shares under the Plan; and (b) any tax consequences expected, but not
realized, by any Participant or other person due to the receipt, exercise or settlement of any
Award granted under the Plan.
SECTION 16. WITHHOLDING TAXES.
(a) General. To the extent required by applicable federal, state, local or foreign law, a
Participant or his or her successor shall make arrangements satisfactory to the Company for the
satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company
shall not be
required to issue any Shares or make any cash payment under the Plan until such obligations
are satisfied.
(b) Share Withholding. The Committee may permit a Participant to satisfy all or part of his or
her withholding or income tax obligations by having the Company withhold all or a portion of any
Shares that otherwise would be issued to him or her or by surrendering all or a portion of any
Shares that he or she previously acquired. Such Shares shall be valued at their Fair Market Value
on the date when taxes otherwise would be withheld in cash. In no event may a Participant have
Shares withheld that would otherwise be issued to him or her in excess of the number necessary to
satisfy the minimum legally required tax withholding.
SECTION 17. OTHER PROVISIONS APPLICABLE TO AWARDS.
(a) Transferability. Unless the agreement evidencing an Award (or an amendment
thereto authorized by the Committee) expressly provides otherwise, no Award granted under this
Plan, nor any interest in such Award, may be sold, assigned, conveyed, gifted, pledged,
hypothecated or otherwise transferred in any manner (prior to the vesting and lapse of any and all
restrictions applicable to Shares issued under such Award), other than by will or the laws of
descent and distribution; provided, however, that an ISO may be transferred or assigned only to
Financial Engines, Inc.
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Amended and Restated 2009 Stock Incentive Plan
the
extent consistent with Section 422 of the Code. Any purported assignment, transfer or encumbrance
in violation of this Section 17(a) shall be void and unenforceable against the Company.
(b) Substitution and Assumption of Awards. The Committee may make Awards under the Plan by
assumption, substitution or replacement of stock options, stock appreciation rights, stock units or
similar awards granted by another entity (including a Parent or Subsidiary), if such assumption,
substitution or replacement is in connection with an asset acquisition, stock acquisition, merger,
consolidation or similar transaction involving the Company (and/or its Parent or Subsidiary) and
such other entity (and/or its affiliate). Notwithstanding any provision of the Plan (other than
the maximum number of Shares that may be issued under the Plan), the terms of such assumed,
substituted or replaced Awards shall be as the Committee, in its discretion, determines is
appropriate.
(c) Qualifying Performance Criteria. The number of Shares or other benefits granted, issued,
retainable and/or vested under an Award may be made subject to the attainment of performance goals.
The Committee may utilize any performance criteria selected by it in its sole discretion to
establish performance goals; provided, however, that where any Award is intended to qualify for
exemption from the deduction limitation of Section 162(m) of the Code as qualified
performance-based compensation, the following conditions shall apply:
(i) The amount potentially available under an Award shall be subject to the attainment
of pre-established, objective performance goals relating to a specified period
of service based on one or more of the following performance criteria: (a) cash flow,
(b) earnings per share, (c) earnings before interest, taxes and amortization, (d) return on
equity, (e) total stockholder return, (f) share price performance, (g) return on capital,
(h) return on assets or net assets, (i) revenue, (j) income or net income, (k) operating
income or net operating income, (l) operating profit or net operating profit, (m) operating
margin or profit margin, (n) return on operating revenue, (o) return on invested capital,
(p) market segment shares, (q) costs, (r) expenses, (s) regulatory body approval for
commercialization of a product, or (t) implementation or completion of critical projects
(Qualifying Performance Criteria), any of which may be measured either individually,
alternatively or in any combination, applied to either the Company as a whole or to a
business unit or Subsidiary, either individually, alternatively or in any combination, and
measured either annually or cumulatively over a period of years, on an absolute basis or
relative to a pre-established target, to previous years results or to a designated
comparison group or index, in each case as specified by the Committee in the Award;
(ii) The Committee may appropriately adjust any evaluation of performance under a
Qualifying Performance Criteria to 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 law, accounting principles or other such
laws or provisions affecting reported results, (iv) accruals for reorganization and
restructuring programs and (v) any extraordinary nonrecurring items as described in
Accounting Principles Board Opinion No. 30 and/or in managements discussion and analysis of
financial condition and results of operations appearing in the Companys
Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
annual report to
stockholders for the applicable year, in each case within the time prescribed by, and
otherwise in compliance with, Section 162(m) of the Code;
(iii) The Committee shall establish the applicable performance goals in writing and an
objective method for determining the Award earned by a Participant if the goals are
attained, while the outcome is substantially uncertain and not later than the
90th day of the performance period (but in no event after 25% of the period of
service with respect to which the performance goals relate has elapsed), and shall determine
and certify in writing, for each Participant, the extent to which the performance goals have
been met prior to payment or vesting of the Award; and
(iv) The Committee may not in any event increase the amount of compensation payable
under the Plan upon the attainment of the pre-established performance goals to a Participant
who is a covered employee within the meaning of Section 162(m) of the Code.
SECTION 18. NO EMPLOYMENT RIGHTS.
No provision of the Plan, nor any Award granted under the Plan, shall be construed to give any
person any right to become, to be treated as, or to remain an Employee or Consultant. The Company
and its Subsidiaries reserve the right to terminate any persons Service at any time and for any
reason, with or without notice.
SECTION 19. DURATION AND AMENDMENTS.
(a) Term of the Plan. The Plan, as set forth herein, shall terminate automatically on November
18, 2019 and may be terminated on any earlier date pursuant to Subsection (b) below.
(b) Right to Amend or Terminate the Plan. The Board of Directors may amend or terminate the
Plan at any time and from time to time. Rights and obligations under any Award granted before
amendment of the Plan shall not be materially impaired by such amendment, except with consent of
the Participant. An amendment of the Plan shall be subject to the approval of the Companys
stockholders only to the extent required by applicable laws, regulations or rules.
(c) Effect of Termination. No Awards shall be granted under the Plan after the termination
thereof. The termination of the Plan shall not affect Awards previously granted under the Plan.
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Financial Engines, Inc.
Amended and Restated 2009 Stock Incentive Plan
Amended and Restated 2009 Stock Incentive Plan
SECTION 20. EXECUTION.
To record the adoption of the Amended and Restated Plan by the Board of Directors, the Company
has caused its authorized officer to execute the same.
FINANCIAL ENGINES, INC. |
||||
By | /s/ Raymond J. Sims | |||
Name Raymond J. Sims | ||||
Title Chief Financial Officer | ||||
FINANCIAL ENGINES, INC.
2009 STOCK INCENTIVE PLAN
2009 STOCK INCENTIVE PLAN
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