EXHIBIT 99.3
EMPLOYEE OPTION AGREEMENT
FORM OF
STOCK OPTION GRANT NOTICE
Firethorn Holdings, LLC (the Company), pursuant to the Firethorn Holdings, LLC 2006 Share
Incentive Plan (the Plan), hereby grants to (the Optionee) a nonqualified share
option to purchase the aggregate number of Class B Common Shares of the Company (Shares), subject
to all of the terms and conditions set forth below and in the attached Stock Option Agreement (the
Agreement). The Option is a nonqualified stock option and is not intended to qualify for the
federal income tax benefits available to an incentive stock option within the meaning of
Section 422 of the Internal Revenue Code of 1986, as amended (the Code). Except as specifically
provided in the Agreement, the term Company as used in this grant notice (Grant Notice) and in
the Agreement shall include any successor and any parent corporation under Section 424(e) of the
Code.
Optionee:
Option Type: Nonqualified
Shares Subject to Option:
Date of Grant: November 19, 2007. The Option grant is made contingent upon the occurrence of the
Effective Time (as defined in that certain Agreement and Plan of Merger, dated as of November 13,
2007 (the Merger Agreement), by and among the Company, QUALCOMM Incorporated, a Delaware
corporation (Parent), Zeppelin Acquisition Corporation, a Georgia corporation (Merger Sub) and
the Holders Agent defined therein).
Expiration Date: November 18, 2017
Exercise Price Per Share: $133.093427 per share
Vesting Schedule
These option shares vest on each monthly anniversary date after the Date of Grant as to
1/60th of the total shares granted and pursuant to the attached Agreement.
To the extent applicable, the vested portion of this Option may be exercised only until the
close of the Nasdaq Global Select Market on the Expiration Date or the termination date set
forth under Section 6 of the Agreement or, if such date is not a trading day on the Nasdaq
Global Select Market, the last trading day before such date. Any later attempt to exercise
this Option will not be honored. For example, if Optionee ceases to perform services for the
Company and the date thirty (30) days after the date of termination of service is Monday, July
4 (a holiday on which the Nasdaq Global Select Market is closed), Optionee must exercise the
exercisable portion of this Option by 4.00 p.m. U.S. Eastern Daylight Time on Friday, July 1.
Additional Terms/Acknowledgments: Capitalized terms used but not defined in this Grant Notice and
in the Agreement shall have the meanings given thereto in the Merger Agreement. The Optionee
acknowledges receipt of this Grant Notice, the Agreement and a copy of the Plan, and represents
that the Optionee has read, understands, accepts and agrees to the terms and conditions of this
Grant Notice, the Agreement and the Plan. Optionee hereby accepts the Option subject to all of its
terms and conditions and further acknowledges that as of the Date of Grant, this Grant Notice, the
Stock Option Agreement and the Plan set forth the entire understanding between Optionee and the
Company regarding the acquisition of Shares of the Company and supersede all prior oral and written
agreements pertaining to this particular option. The Optionee also understands that the Option
will not be exercisable until the Company has received an exercise agreement or similar notice
(Notice) in the form required by the Company from the Optionee.
Note: The Optionee is solely responsible for any election to exercise the Option, and the Company
shall have no obligation whatsoever to provide notice to the Optionee of any matter, including, but
not limited to, the date the Option terminates.
[Signatures on following page]
IN WITNESS WHEREOF, the parties hereto have executed this Grant Notice and the Agreement as of the
Date of Grant set forth above.
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Firethorn Holdings, LLC |
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Optionee |
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Attachment: Stock Option Agreement
FORM OF
FIRETHORN HOLDINGS, LLC
2006 SHARE INCENTIVE PLAN
Employee Nonqualified Stock Option Agreement
Pursuant to the Grant Notice (attached hereto) and this Stock Option Agreement (Agreement),
Firethorn Holdings, LLC, a Georgia limited liability company (the Company), has granted you an
Option to purchase the number of shares (Shares) of the Companys Class B Common Shares (Stock)
indicated in the Grant Notice at the exercise price indicated in the Grant Notice.
The details of this Option are as follows:
1. Exercise Period of Option. Notwithstanding any other provision of the Plan or this
Agreement to the contrary, you may exercise this Option using one of the permitted means of
exercise as provided in Section 4, but only according to the vesting schedule described in the
attached Grant Notice, prior to the Expiration Date set forth in the Grant Notice. Notwithstanding
any other provision of the Plan or this Agreement, the Company reserves the right, in its sole
discretion, to suspend vesting of this Option in the event of a leave of absence or your part-time
service.
2. Restrictions on Exercise. This Option shall be assumed by Parent pursuant to Section 5.
This Option may not be exercised, unless such exercise is in compliance with the Securities Act of
1933 and applicable state securities laws, as in effect on the date of exercise, and the
requirements of any stock exchange or national market system on which the Companys Shares may be
listed at the time of exercise. Pursuant to Section 2.6(e) of the Merger Agreement, Parent shall
file with the Securities and Exchange Commission (SEC), within twenty (20) business days of the
Closing Date, a registration statement on Form S-8 relating to the shares of Acquiror Common Stock
(defined below) issuable with respect to this Option and shall use commercially reasonable efforts
to maintain the effectiveness of such registration statement for a reasonable period of time to
allow exercise and sale of the shares of Acquiror Common Stock underlying the Option.
3. Termination of Service.
(a) Option Exercisability. Subject to earlier termination of the Option as otherwise provided
herein and unless otherwise provided in the Grant Notice, the Option shall be exercisable after
your termination of employment or other service with the Company or any Participating Company only
during the applicable time period determined in accordance with this Section 3 and thereafter shall
terminate.
(i) Disability. If your service with the Company or any Participating Company terminates
because of your Disability (as defined below), the Option shall continue to vest for the period of
such Disability under the terms and conditions of the Option Agreement and may be exercised by you
at any time during the period of Disability, but in any event, no later than the date of expiration
of the Option term as set forth in Section 6 (the Option Expiration Date).
(ii) Death. If your service with the Company terminates because of your death or because of
your Disability and such termination is subsequently followed by your death, the vesting of the
Option shall be accelerated effective upon your death, and the Option may be exercised by your
legal representative or other person who acquired the right to exercise the Option by reason of
your death at any time prior to the expiration of twelve (12) months after the date of your death,
but in any event no later than the Option Expiration Date.
(iii) Normal Retirement Age. If your service with the Company terminates on or after you have
attained age 60 and completed ten years of service, the Option, to the extent unexercised and
vested on the date on which your service terminates, may be exercised by you at any time prior to
the expiration of twelve (12) months after the date on which your service terminates, but, in any
event, no later than the Option Expiration Date. Options that have not vested as of the date on
which your service terminates will be forfeited as of your termination date.
(iv) Termination After Layoff. If your service with the Company terminates as a result of
Layoff (as defined below), then, subject to your execution of a general release of claims
satisfactory to the Company, (A) the vesting of the Option shall be accelerated effective as of the
date on which your service terminates by ten percent (10%) of the Shares which would otherwise be
unvested on such date, and (B) the Option, to the extent unexercised and vested on the date on
which your service terminated, may be exercised by you (or your guardian or legal representative)
at any time prior to the expiration of six (6) months after the date on which your service
terminated, but in any event no later than the Option Expiration Date. All other unvested Options
shall be forfeited as of your termination date. Notwithstanding the foregoing, if the Company
determines that the provisions or operation of this subsection (iv) would cause the Company to
incur a compensation expense other than that which is known by the Company as of the date of grant,
then this subsection (iv) shall be without force or effect, and the vesting and exercisability of
each outstanding Option and any Shares acquired upon the exercise thereof shall be determined under
any other applicable provision of the Grant Notice or this Agreement.
(v) Termination Upon Transfer to Non-Control Affiliate. If at the request of the Company, you
transfer service to a Non-control Affiliate of the Company and your service terminates as a result,
then, subject to your execution of a general release of claims form reasonably satisfactory to the
Company, the Option, to the extent unexercised and vested on the date on which your service
terminates, may be exercised by you (or your guardian or legal representative) at any time prior to
the expiration of twelve (12) months after the date on which your service terminated, but, in any
event, no later than the Option Expiration Date. Options that have not vested as of the date on
which your service terminates will be forfeited as of your termination date.
(vi) Termination After Change in Control. If your service with the Company terminates as a
result of Termination After Change in Control (as defined below), then the vesting of the entire
Option shall be accelerated in full effective as of the date on which your service terminates, and
the Option, to the extent unexercised, may be exercised by you (or your guardian or legal
representative) at any time prior to the expiration of six (6) months after the date on which your
service terminates, but in any event no later than the Option Expiration Date.
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(vii) Other Termination of Service. Except as otherwise provided in Section 3(a)(i) through
(vi), if your service with the Company terminates for any reason, then to the extent unexercised
and vested on the date on which your service terminates, the Option may be exercised by you at any
time prior to the expiration of thirty (30) days after the date on which your service terminates,
but in any event no later than the Option Expiration Date. Options that have not vested as of the
date on which your service terminates will be forfeited as of your termination date.
(b) Extension if Exercise Prevented by Law. Notwithstanding the foregoing, other than
termination for Cause, if the exercise of the Option within the applicable time periods set forth
in Section 3(a) is prevented by applicable law, the Option shall remain exercisable until three
(3) months after the date you are notified by the Company that the Option is exercisable, but in
any event no later than the Option Expiration Date.
(c) Extension if Subject to Section 16(b). Notwithstanding the foregoing, other than
termination for Cause, if a sale within the applicable time periods set forth in Section 3(a) of
Shares acquired upon the exercise of the Option would subject you to suit under Section 16(b) of
the Securities Exchange Act of 1934, as amended, the Option shall remain exercisable until the
earliest to occur of (i) the tenth (10th) day following the date on which a sale of such Shares by
you would no longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day after
your termination of service, or (iii) the Option Expiration Date.
(d) Certain Definitions.
(i) Cause shall mean any of the following: (1) your theft, dishonesty, or falsification of
documents or records; (2) your improper use or disclosure of confidential or proprietary
information of the Company and its affiliates; (3) any action by you which has a detrimental effect
on the Companys reputation or business; (4) your failure or inability to perform any reasonably
assigned duties after written notice from the Company of, and a reasonable opportunity to cure,
such failure or inability; (5) any material breach by you of any employment or service agreement
between you and the Company, which breach is not cured pursuant to the terms of such agreement;
(6) your conviction (including any plea of guilty or nolo contendere) of any criminal act which
impairs your ability to perform your duties with the Company; or (7) violation of a material
Company policy.
(ii) Disability shall mean you have been determined by the Companys long-term disability
insurer as eligible for disability benefits under the long-term disability plan of the Company or
you have been determined eligible for Supplemental Security Income benefits by the Social Security
Administration of the United States of America.
(iii) Good Reason shall mean any one or more of the following:
a) without your express written consent, the assignment to you of any duties, or any
limitation of your responsibilities, substantially inconsistent with your positions, duties,
responsibilities and status with the Company immediately prior to the date of the Change in
Control;
b) without your express written consent, the relocation of the principal place of your
employment or service to a location that is more than fifty (50) miles
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from your principal place of
employment or service immediately prior to the date of the Change in Control, or the imposition of
travel requirements substantially more demanding of you than such travel requirements existing
immediately prior to the date of the Change in Control;
c) any failure by the Company to pay, or any material reduction by the Company of, (A) your
base salary in effect immediately prior to the date of the Change in Control (unless reductions
comparable in amount and duration are concurrently made for all other employees of the Company with
responsibilities, organizational level and title comparable to yours), or (B) your bonus
compensation, if any, in effect immediately prior to the date of the Change in Control (subject to
applicable performance requirements with respect to the actual amount of bonus compensation earned
by you);
d) any failure by the Company to (A) continue to provide you with the opportunity to
participate, on terms no less favorable than those in effect for the benefit of any employee or
service provider group which customarily includes a person holding the employment or service
provider position or a comparable position with the Company then held by you, in any benefit or
compensation plans and programs, including, but not limited to, the Companys life, disability,
health, dental, medical, savings, profit sharing, stock purchase and retirement plans, if any, in
which you were participating immediately prior to the date of the Change in Control, or their
equivalent, or (B) provide you with all other fringe benefits (or their equivalent) from time to
time in effect for the benefit of any employee group which customarily includes a person holding
the employment or service provider position or a comparable position with the Company then held by
you;
e) any breach by the Company of any material agreement between you and the Company concerning
your employment; or
f) any failure by the Company to obtain the assumption of any material agreement between you
and the Company concerning your employment by a successor or assign of the Company.
(iv) Layoff shall mean the involuntary termination of your service with the Company for
reasons other than Cause, constructive termination, death, Disability, divestiture, termination
upon transfer to a Non-Control Affiliate, or Termination After Change in Control.
(v) Non-Control Affiliate means any entity in which the Company has an ownership interest
and which the Board or Committee shall designate as a Non-Control Affiliate.
(vii) Termination After Change in Control shall mean either of the following events
occurring within twenty-four (24) months after a Change in Control:
a) termination by the Company of your service with the Company for any reason other than for
Cause; or
b) your resignation for Good Reason from all capacities in which you are then rendering
service to the Company within a reasonable period of time following the event constituting Good
Reason.
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Notwithstanding any provision herein to the contrary, Termination After Change in Control
shall not include any termination of your service with the Company which (1) is for Cause; (2) is a
result of your death or Disability; (3) is a result of your voluntary termination of service other
than for Good Reason; or (4) occurs prior to the effectiveness of a Change in Control.
4. Manner of Exercise.
(a) Exercise Agreement. You may exercise this Option by delivering the applicable exercise
agreement or notice (the Notice), in such form as may be approved or adopted by the
Company, in its sole discretion, which shall set forth your election to exercise this Option with
respect to some or all of the Shares subject to this Option, the number of Shares subject to this
Option being purchased, and any restrictions imposed on the Shares subject to this Option, as
applicable.
(b) Exercise Price. The Notice shall be accompanied by full payment of the aggregate exercise
price for the Shares being purchased. Payment for the Shares may be made in U.S. dollars in cash
(by check), by delivery to the Company of a number of Shares equal to the amount to be tendered, or
a combination thereof, or by any other method permitted by the Company.
(c) Withholding Taxes. Prior to the issuance of Shares upon exercise of this Option, you must
pay, or make adequate provision for, any applicable federal or state withholding obligations. You
may, to the extent allowed by the Company, provide for payment of withholding taxes upon exercise
of the Option by requesting that the Company retain Shares with a fair market value equal to the
minimum amount of taxes required to be withheld. In such case, the Company shall issue to you the
net number of Shares by deducting the Shares retained from the Shares exercised.
(d) Issuance of Shares. Provided that the Notice and payment are in a form and substance
acceptable to the Company, the Company shall cause the Shares to be issued in your name or the name
of your legal representative. You shall not be considered a shareholder until such time as the
Shares have been issued as noted on the books of the Company.
5. Assumption of Option. At the Effective Time, (i) Parent will assume this Option and this
Option shall thereby be converted into an option to purchase the number of shares of common stock
of Parent (Parent Common Stock) in accordance with Section 2.6(e) of the Merger Agreement
which Section 2.6(e) is incorporated herein by this reference.
6. Termination of the Option. The term of this Option commences on the Date of Grant
(as specified in the Grant Notice) and expires and shall no longer be exercisable upon the earliest
of:
(a) the Expiration Date indicated in the Grant Notice;
(b) the tenth (10th) anniversary of the Date of Grant;
(c) the last day for exercising the Option following termination of your service as described
in Section 3; or
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(d) a Change of Control, to the extent provided in Section 7.
7. Change in Control. In the event of a Change in Control, the surviving,
continuing, successor, or purchasing corporation or other business entity or parent thereof, as the
case may be (the Acquiring Corporation), may, without your consent, either assume the Companys
rights and obligations under this Option or substitute for this Option a substantially equivalent
option for the Acquiring Corporations stock. In the event the Acquiring Corporation elects not to
assume or substitute this Option in connection with a Change in Control, the exercisability and
vesting of this Option and any Shares acquired upon the exercise thereof held by you, so long as
your service has not terminated prior to such date, shall be accelerated, effective as of the date
ten (10) days prior to the date of the Change in Control. The exercise or vesting of any Option
and any Shares acquired upon the exercise thereof that was permissible solely by reason of this
Section shall be conditioned upon the consummation of the Change in Control. If this Option is
neither assumed or substituted by the Acquiring Corporation in connection with the Change in
Control nor exercised as of the date of the Change in Control, it shall terminate and cease to be
outstanding effective as of the date of the Change in Control. Notwithstanding the foregoing,
Shares acquired upon exercise of this Option prior to the Change in Control and any consideration
received pursuant to the Change in Control with respect to such Shares shall continue to be subject
to all applicable provisions of this Option Agreement, except as otherwise provided in this Option
Agreement. Furthermore, notwithstanding the foregoing, if an entity the equity of which is subject
to this Option immediately prior to an Ownership Change Event constituting a Change in Control is
the surviving or continuing entity immediately after such Ownership Change Event and less than
fifty percent (50%) of the total combined voting power of its voting stock is held by another
corporation or by other corporations that are members of an affiliated group within the meaning of
Section 1504(a) of the Code without regard to the provisions of Section 1504(b) of the Code, this
Option shall not terminate unless the Board or Committee otherwise provides in its discretion.
8. Nontransferability of Options. This Option may not be transferred in any manner, other
than by will or the laws of descent and distribution, except to the extent expressly allowed by the
Plan, and may be exercised during your lifetime only by you. The terms of this Option shall be
binding upon your executors, administrators, successors and assigns. At no time will a transferee
who is considered an affiliate under Rule 144(a)(1) be able to sell any or all such Shares without
complying with Rule 144. The right of a transferee to exercise the transferred portion of this
Option shall terminate in accordance with your right of exercise under this Option and is further
subject to such representations, warranties and indemnifications from the transferee that the
Company requires the transferee to make to protect the Companys interests and ensure that this
Option has been transferred under the circumstances approved by the Company. Once a portion of an
Option is transferred, no further transfer may be made of that portion of the Option.
9. Option Not a Service Contract. This Option is not an employment or service
contract and nothing in this Agreement , the Grant Notice or the Plan shall be deemed to create in
any way whatsoever any obligation on your part to continue in the service of the Company, or
of the Company to continue your service with the Company. In addition, nothing in your Option
shall obligate the Company, its shareholders, board, officers or employees to continue your service
with the Company.
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10. Notices. Any notices provided for in this Stock Option Agreement, the Grant Notice or the
Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case
of notices delivered by the Company to you, five (5) days after deposit in the United States mail,
postage prepaid, addressed to you at the last address you provided to the Company.
11. Special Provisions for the Option. No restrictions on the shares that may be
purchased through exercise of this option shall be placed on such shares other than any such
restrictions set forth in the exercise notice, and no changes shall be made to the exercise notice
following the grant of this option, except as may be required pursuant to applicable law or
regulation. Without your prior written consent, no re-pricing of this Option shall occur pursuant
to Section 7.2(h) of the Plan. No action shall be taken by the board pursuant to section 11.1 of
the Plan which would cause this Option to be considered a Non-Qualified Deferred Compensation
Plan under Treas. Reg. §1.409A-1(A)(1) or to cease to be considered a short-term deferral of
compensation within the meaning of Treas. Reg. §1.409A-1(b)(4). The terms and provisions of this
Agreement shall govern and control the Option, and shall be deemed to supersede, override and
replace any conflicting provisions of the Plan. Neither Company, nor Parent, nor their successors
or assigns shall amend the Plan or this Option, attempt to exercise any discretion granted under
the Plan or to impose any additional restrictions or conditions with respect to this Option, or
otherwise take any action that would conflict with the terms of this Option or otherwise have the
effect of modifying any provision of this Agreement or the Option without the prior written consent
of Optionee.
12. Amendment. Subject to the provisions of Section 11 above, the Board may
amend your Option at any time, provided no such amendment may adversely affect the Option or any
unexercised portion of your Option without your consent, unless such amendment is necessary to
comply with any applicable law or government regulation. No amendment or addition to this
Agreement shall be effective unless in writing or, in such electronic form as may be designated by
the Company.
13. Tax Consequences. YOU UNDERSTAND THAT THE GRANT AND EXERCISE OF THIS OPTION, AND THE SALE
OF SHARES OBTAINED THROUGH THE EXERCISE OF THIS OPTION, MAY HAVE TAX IMPLICATIONS THAT COULD RESULT
IN ADVERSE TAX CONSEQUENCES. YOU REPRESENT THAT YOU HAVE CONSULTED WITH, OR WILL CONSULT WITH,
YOUR TAX ADVISOR; YOU FURTHER ACKNOWLEDGE THAT YOU ARE NOT RELYING ON THE COMPANY FOR ANY TAX,
FINANCIAL OR LEGAL ADVICE; AND YOU SPECIFICALLY UNDERSTAND THAT NO REPRESENTATIONS OR ASSURANCES
ARE MADE AS TO ANY PARTICULAR TAX TREATMENT WITH RESPECT TO THIS OPTION.
14. Interpretation. Any dispute regarding the interpretation of this Agreement shall be
submitted to the Board or the Committee administering the Plan, which shall review such dispute in
accordance with the Plan and this Agreement. The resolution of such a dispute by the Board or
Committee shall be final and binding on the parties.
15. Entire Agreement and Other Matters. The Plan (as amended or superseded herein) is
incorporated herein by reference. This Agreement, the Grant Notice and the Plan constitute the
entire agreement of the parties hereto, and supersede all prior understandings and agreements with
respect to the subject matter hereof. This Agreement and the Option are void
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ab initio unless you
have executed the Grant Notice and agreed to all terms and provisions hereof.
16. Description of Electronic Delivery. The Plan documents, which may include but do not
necessarily include: the Plan, the Grant Notice, this Agreement, and any reports of the Company
provided generally to the Companys shareholders, may be delivered to you electronically. In
addition, if permitted by the Company, you may deliver electronically the Grant Notice to the
Company or to such third party involved in administering the Plan as the Company may designate from
time to time. Such means of electronic delivery may include but do not necessarily include the
delivery of a link to a Company intranet or the internet site of a third party involved in
administering the Plan, the delivery of the document via electronic mail (e-mail) or such other
means of electronic delivery specified by the Company.
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