EXHIBIT 10.2

 

MICROSTRATEGY INCORPORATED

 

Second Amended and Restated 1999 Stock Option Plan

 

STOCK OPTION AGREEMENT

FOR NON-EMPLOYEE DIRECTORS

 

Unless otherwise defined herein, the terms defined in the MicroStrategy
Incorporated Second Amended and Restated 1999 Stock Option Plan, as may be
amended (the “Plan”), shall have the same defined meanings in this Option
Agreement.

 

1. Grant of Option.

 

Participant:

  

David B. Blundin

Address:

  

c/o Vestmark, Inc.

    

500 Edgewater Drive, Suite 564

    

Wakefield, MA 01880

 

You have been granted an option to purchase shares of Class A Common Stock of
MicroStrategy Incorporated, subject to the terms and conditions of the Plan and
this Option Agreement, as follows:

 

Grant Number:

 

015463

Date of Grant:

 

February 8, 2003

Fair Market Value, Date of Grant (per share):

 

$20.69

Exercise Price per Share:

 

$20.69

Total Number of Shares subject to Option:

 

17,000

Total Exercise Price:

 

$351,730.00

Type of Option:

 

Non-Qualified Stock Option

Expiration Date:

 

February 8, 2013

 

Except as otherwise indicated by the context, the term “you”, as used in this
option, shall be deemed to include any person who acquires the right to exercise
this option validly under its terms.

 

2. Vesting Schedule.

 

As used herein, the term “vested” shall mean that portion of this option that is
exercisable. This option shall vest in accordance with the following schedule:
(i) no portion of this option shall be vested prior to the first anniversary of
the Date of Grant; (ii) twenty percent (20%) of this option shall be vested on
the first anniversary of the Date of Grant; (iii) thereafter, an additional
twenty percent (20%) of this option shall be vested on each subsequent
anniversary of the Date of Grant (such that this option shall be vested in full
on the fifth anniversary of the Date of Grant). The right of exercise shall be
cumulative so that if you do not exercise this option to the maximum extent
permissible in any period, it shall continue to be exercisable, in whole or in
part, with respect to all vested shares until the earlier of the Expiration Date
or the termination of this option under Section 3 below or under the Plan.

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3. Exercise of Option.

 

(a) Form of Exercise. To exercise this option, you must sign an Exercise Notice
in the form attached hereto as Exhibit A and deliver the Exercise Notice to the
Company at its principal office, accompanied by a copy of this Option Agreement
and payment in full for the shares in the manner provided in the Plan. You may
purchase less than the number of shares covered under this Option Agreement, but
may not partially exercise this option for any fractional share or for fewer
than ten whole shares. This option shall be deemed to be exercised when the
Company receives your fully-executed Exercise Notice, a copy of this Stock
Option Agreement, and payment in full for the shares in the manner provided in
the Plan. Notwithstanding the foregoing, if authorized by the Company you may
exercise this option under a Company approved broker-assisted exercise program.
In such case you shall be required to properly complete a notice of exercise
provided by the Company under the broker-assisted exercise program, which may be
in electronic form, in lieu of the Exercise Notice attached as Exhibit A and to
comply with the exercise procedures established by the Company for the
broker-assisted exercise program, which procedures may vary from those set forth
in this subsection 3(a).

 

(b) Continuous Relationship with the Company Required. Except as otherwise
provided in this Section 3, this option may not be exercised unless you, at the
time you exercise this option, have been at all times since the Date of Grant,
an employee or member of the Board of Directors of, or consultant or advisor to,
the Company (an “Eligible Participant”).

 

(c) Termination of Relationship with the Company. If you cease to be an Eligible
Participant for any reason, then except as provided in paragraphs (d), (e), and
(f) below, your right to exercise this option shall terminate two (2) years from
the date of such cessation, but in no event after the Expiration Date; provided
that you may only exercise this option to the extent that you were entitled to
do so on the date of such cessation.

 

(d) Exercise Period upon Death or Disability. If you die or become disabled
(within the meaning of Section 22(e)(3) of the Code) prior to the Expiration
Date while you are an Eligible Participant and the Company has not terminated
your relationship for “cause” as defined in paragraph (f) below, then you or
your estate (as applicable) shall be entitled to exercise this option within two
(2) years following the date of your death or disability. At the end of this
two-year period, this option shall terminate. Notwithstanding the above, you or
your estate may only exercise this option to the extent that you were entitled
to do so on the date of your death or disability, and in no event shall this
option be exercisable after the Expiration Date.

 

(e) Compliance with Agreements Required. If you violate the terms of any
employment agreement, non-competition agreement, non-solicitation agreement,
confidentiality agreement, non-disclosure agreement, intellectual property
agreement, or any other agreement or contract between you and the Company, your
right to exercise this option shall terminate immediately upon such violation.

 

(f) Discharge for Cause. If you are discharged by the Company for “cause” as
defined below prior to the Expiration Date, your right to exercise this option
shall terminate immediately on the effective date of such discharge. “Cause”
shall mean willful misconduct by you or your willful failure to perform
responsibilities to the Company, including your breach of any employment,
consulting, advisory, non-disclosure, non-competition, or similar agreement
between you and the Company, as determined by

 

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the Company, which determination shall be final and conclusive. You shall be
considered to have been discharged for “cause” if the Company determines, within
thirty (30) days after your resignation, that discharge for cause was warranted.

 

4. Withholding.

 

No shares will be issued to you upon exercise of this option unless and until
you pay to the Company, or make provision satisfactory to the Company for
payment of, any federal, state, or local withholding taxes required by law to be
withheld with respect to this option.

 

5. Non-Transferability of Options.

 

You shall not sell, pledge, assign or transfer this option in any manner other
than by a qualified domestic relations order as defined by the Code or Title I
of the Employee Retirement Income Security Act of 1974, as amended, or the rules
thereunder (“QDRO”) or by will or the laws of descent and distribution unless
and until this option has been exercised, or the shares underlying this option
have been issued, and all restrictions applicable to such shares have lapsed;
provided, however, you may transfer this option to a Permitted Transferee (as
defined below) to the extent permitted by any applicable law or regulations and
subject to the following terms and conditions:

 

(a) If you transfer this option to a Permitted Transferee, (i) the Permitted
Transferee shall not assign or transfer the option other than by a QDRO or by
will or the laws of descent and distribution and (ii) the option shall continue
to be subject to all the terms and conditions of the option as applicable to you
(other than the ability to further transfer the option).

 

(b) You and the Permitted Transferee shall execute any and all documents
reasonably requested by the Company’s Board of Directors, including without
limitation documents to (i) confirm the status of the transferee as a Permitted
Transferee, (ii) satisfy any requirements for an exemption for the transfer
under applicable federal and state securities laws and (iii) evidence the
transfer.

 

(c) Shares of Class A Common Stock acquired by a Permitted Transferee through
exercise of this option may not be transferred, nor will any assignee or
transferee thereof be recognized as an owner of such shares of Class A Common
Stock for any purpose, unless a registration statement under the Securities Act
of 1933, as amended, and any applicable state securities act with respect to
such shares shall then be in effect or unless the availability of an exemption
from registration with respect to any proposed transfer or disposition of such
shares shall be established to the satisfaction of counsel for the Company.

 

As used in this Section 5, “Permitted Transferee” shall mean (i) one or more of
the following members of your family: spouse, former spouse, child (whether
natural or adopted), stepchild, or any other lineal descendant of yours; (ii) a
trust, partnership or other entity established and existing for the sole benefit
of, or under the sole control of, you and/or one or more of the above-referenced
members of your family; or (iii) any other transferee specifically approved by
the Company’s Board of Directors after taking into account any state or federal
tax or securities laws applicable to transferable options.

 

No interest or right in this option shall be liable for the debts, contracts or
engagements of the holder thereof or his successors in interest or shall be
subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be voluntary
or involuntary or by operation of law by judgment, levy, attachment, garnishment
or any other legal or equitable proceedings (including bankruptcy), and any
attempted disposition of an interest or right in this

 

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option shall be null and void and of no effect, except to the extent that such
disposition is permitted by the preceding provisions of this Section 5. Except
as specifically provided in Section 3(d) or in this Section 5, this option shall
be exercised only by you.

 

6. Provisions of the Plan.

 

This option is subject to the provisions of the Plan. In the event of a conflict
between the provisions of the Plan and this Option Agreement, the Plan shall
govern.

 

7. Data Privacy.

 

In order to administer the Plan, the Company may process personal data about
you. Such data includes but is not limited to the information provided in this
Option Agreement and any changes thereto, other appropriate personal and
financial data about you such as home address and business addresses and other
contact information, payroll information and any other information that might be
deemed appropriate by the Company to facilitate the administration of the Plan.
By accepting this option, you give explicit consent to the Company to process
any such personal data. You also give explicit consent to the Company to
transfer any such personal data outside or within the country in which you work
or are employed, including, with respect to non-U.S. resident Participant, to
the United States, to transferees who shall include the Company, a broker
retained by you or the Company for the purpose of assisting with an exercise of
options and other persons who are designated by the Company to administer or
assist with the implementation, administration or management of the Plan. You
may object to the collection, use, processing or transfer of such data by
notifying the General Counsel of the Company in writing. You understand that
such objection may impair your ability to participate in the Plan.

 

8. Entire Agreement; Governing Law.

 

The Plan, this Option Agreement, and the attached Exercise Notice constitute the
entire agreement of the parties and supersede in their entirety all prior
undertakings and agreements of the Company and you with respect to the subject
matter hereof. The entire agreement shall be governed by Virginia law except for
that body of law pertaining to conflict of laws.

 

IN WITNESS HEREOF, the Company has caused this option to be executed by its duly
authorized officer. This option shall take effect as a sealed instrument.

 

MICROSTRATEGY INCORPORATED

By:

 

/s/ Michael J. Saylor

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Michael J. Saylor

Title:

 

Chairman & CEO

 

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PARTICIPANT’S ACCEPTANCE

 

The undersigned hereby accepts the foregoing Option Agreement and agrees to the
terms and conditions thereof. The undersigned hereby acknowledges receiving a
copy of the Plan. The undersigned has reviewed the Plan and this Option
Agreement in their entirety, has had an opportunity to obtain the advice of
counsel before executing this Option Agreement and fully understands all
provisions of the Plan and this Option Agreement. The undersigned hereby agrees
to accept as binding, conclusive and final all decisions or interpretations of
the Company upon any questions relating to the Plan and Option Agreement.

 

PARTICIPANT:

/s/ David Blundin

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Signature

David Blundin

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Print Name

 

CONSENT OF SPOUSE

 

The undersigned spouse of the Participant has read and hereby approves the terms
and conditions of the Plan and this Option Agreement. In consideration of the
Company’s granting his or her spouse the right to purchase shares as set forth
in the Plan and this Option Agreement, the undersigned hereby agrees to be
irrevocably bound by the terms and conditions of the Plan and this Option
Agreement and further agrees that any community property interest shall be
similarly bound. The undersigned hereby appoints the undersigned’s spouse as
attorney-in-fact for the undersigned with respect to any amendment or exercise
of rights under the Plan or this Option Agreement.

 

SPOUSE OF PARTICIPANT:

/s/ Maura Blundin

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Signature

Maura Blundin

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Print Name

 

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EXHIBIT A TO THE STOCK OPTION AGREEMENT

 

MICROSTRATEGY INCORPORATED

 

Second Amended and Restated 1999 Stock Option Plan

 

EXERCISE NOTICE

 

MicroStrategy Incorporated

1861 International Drive

McLean, VA 22102

Attention: Stock Option Administrator

 

1. Exercise of Option. Effective as of today,                     , 20    , I,
                                         (“Purchaser”), hereby elect to purchase
                     shares (the “Shares”) of the Class A Common Stock of
MicroStrategy Incorporated (the “Company”) under and pursuant to the
MicroStrategy Incorporated Second Amended and Restated 1999 Stock Option Plan,
as may be amended (the “Plan”), and the Stock Option Agreement applicable to the
stock option grant referenced below (the “Option Agreement”):

 

Grant Number

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   Date of Grant

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   Number of Shares
Being Exercised

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Exercise

Price Per Share

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   Aggregate
Exercise Price

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               $      $  

 

2. Delivery of Payment. Purchaser herewith delivers to the Company the full
purchase price for the Shares.

 

3. Representations of Purchaser. Purchaser acknowledges that Purchaser has
received, read and understood the Plan and the Option Agreement and agrees to
abide by and be bound by their terms and conditions.

 

4. Rights as Stockholder. Subject to the terms and conditions of the Plan, the
Option Agreement, and this Exercise Notice, Purchaser shall have all of the
rights of a stockholder of the Company with respect to the Shares from and after
the date the stock certificate evidencing such Shares is issued, as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company.

 

5. Tax Consultation. Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser’s purchase or disposition of the Shares.
Purchaser represents that Purchaser has consulted with any tax consultants
Purchaser deems advisable in connection with the purchase or disposition of the
Shares and that Purchaser is not relying on the Company for any tax advice.

 

6. Interpretation. Any dispute regarding the interpretation of the Plan, the
Option Agreement, or this Exercise Notice shall be submitted by Purchaser or by
the Company forthwith to the

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Company’s Board of Directors or the committee thereof that administers the Plan,
which shall review such dispute at its next regular meeting. The resolution of
such a dispute by the Board or committee shall be final and binding on the
Company and on Purchaser.

 

7. Entire Agreement; Governing Law. The Plan, the Option Agreement, and this
Exercise Notice constitute the entire agreement of the parties and supersede in
their entirety all prior undertakings and agreements of the Company and
Purchaser with respect to the subject matter hereof. The entire agreement shall
be governed by Virginia law except for that body of law pertaining to conflict
of laws.

 

Submitted by:

 

Accepted by:

PURCHASER:

 

MicroStrategy Incorporated

 

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By:

 

 

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Signature

     

Michael J. Saylor

 

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Title:

 

Chairman & CEO

Print Name

       

 

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Address:

Tax I.D. Number

           

1861 International Drive

 

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McLean, VA 22102

Address

       

 

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City, State, Zip              Country

       

Brokerage Account Information (voluntary)*

       

 

 

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*  This section will also need to be completed if you would like your shares to
be wired directly to your brokerage account, which generally takes a few
business days. If you do not supply brokerage account information, your stock
certificate will be mailed to you. Please note that it can take several weeks
before you receive shares by mail.

Broker Name

 

 

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Broker DTC Number

 

 

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Account Number

 

 

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MICROSTRATEGY INCORPORATED

 

Second Amended and Restated 1999 Stock Option Plan

 

Amendment to Stock Option Agreement for Non-Employee Director

 

This Amendment (“Amendment”) to the Stock Option Agreement for Non-Employee
Director relating to that certain stock option granted by MicroStrategy
Incorporated (the “Company”) to David B. Blundin (the “Participant”) on February
8, 2003 (the “Option Agreement”), is made by the Company as of October 25, 2004
pursuant to Section 7(h) of the MicroStrategy Incorporated Second Amended and
Restated 1999 Stock Option Plan, as may be amended (the “Plan”). Unless
otherwise defined herein, capitalized terms used in this Amendment shall have
the meanings given them in the Plan. The Option Agreement is hereby amended as
follows:

 

1. Section 2 of the Option Agreement shall be deleted in its entirety and the
following shall be inserted in lieu thereof:

 

  “2. Vesting Schedule.

 

As used herein, the term “vested” shall mean that portion of this option that is
exercisable. This option shall vest in accordance with the following schedule:
(i) no portion of this option shall be vested prior to the first anniversary of
the Date of Grant; (ii) twenty percent (20%) of this option shall be vested on
the first anniversary of the Date of Grant; (iii) an additional twenty percent
(20%) of this option shall be vested on October 25, 2004; (iv) an additional
twenty percent (20%) of this option shall be vested on the third anniversary of
the Date of Grant; and (v) thereafter, an additional twenty percent (20%) of
this option shall be vested on each subsequent anniversary of the Date of Grant
(such that this option shall be vested in full on the fifth anniversary of the
Date of Grant). The right of exercise shall be cumulative so that if you do not
exercise this option to the maximum extent permissible in any period, it shall
continue to be exercisable, in whole or in part, with respect to all vested
shares until the earlier of the Expiration Date or the termination of this
option under Section 3 below or under the Plan.”

 

2. Except as specifically amended hereby, the Option Agreement shall continue in
full force and effect in accordance with its terms.

 

3. This Amendment shall be governed by Virginia law except for that body of law
pertaining to conflict of laws.

 

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IN WITNESS HEREOF, the Company has caused this Amendment to be executed by its
duly authorized officer.

 

MICROSTRATEGY INCORPORATED

By:

 

/s/ Jonathan F. Klein

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Name:

 

Jonathan F. Klein

Title:

 

Vice President, Law & General Counsel

 

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