Tripwire, Inc. 2000 Stock Option/Stock Issuance Plan



 EXHIBIT 10.4 

TRIPWIRE, INC. 

2000 STOCK OPTION/STOCK ISSUANCE PLAN 

(as amended through May 7, 2010) 

ARTICLE ONE 

GENERAL PROVISIONS 
  

	I.	PURPOSE OF THE PLAN 


This 2000 Stock Option/Stock Issuance Plan is intended to promote the interests of Tripwire, Inc., a Delaware corporation, by providing
eligible persons in the Corporation’s employ or service with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an incentive for them to continue in such employ or service.

 Capitalized terms herein shall have the meanings assigned to such terms in the attached Appendix. 

 

	II.	STRUCTURE OF THE PLAN 


A.    The Plan shall be divided into two (2) separate equity programs: 

(i)    the Option Grant Program under which eligible persons may, at the discretion of the Plan
Administrator, be granted options to purchase shares of Common Stock, and 
 (ii)    the
Stock Issuance Program under which eligible persons may, at the discretion of the Plan Administrator, be issued shares of Common Stock directly, either through the immediate purchase of such shares or as a bonus for services rendered the Corporation
(or any Parent or Subsidiary). 
 B.    The provisions of Articles One and Four shall apply to both equity
programs under the Plan and shall accordingly govern the interests of all persons under the Plan. 
  

	III.	ADMINISTRATION OF THE PLAN 


A.    The Plan shall be administered by the Board. However, any or all administrative functions otherwise exercisable
by the Board may be delegated to the 
  

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Committee. Members of the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time
terminate the functions of the Committee and reassume all powers and authority previously delegated to the Committee. 

B.    The Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to establish
such rules and regulations as it may deem appropriate for proper administration of the Plan and to make such determinations under, and issue such interpretations of, the Plan and any outstanding options or stock issuances thereunder as it may deem
necessary or advisable. Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or any option grant or stock issuance thereunder. 

 

	IV.	ELIGIBILITY 


A.    The persons eligible to participate in the Plan are as follows: 

(i)    Employees, 

(ii)    non-employee members of the Board or the non-employee members of the board of directors of
any Parent or Subsidiary, and 
 (iii)    consultants and other independent advisors who
provide services to the Corporation (or any Parent or Subsidiary); provided, however, that consultants and advisors who are residents of the State of New Jersey will not be eligible to participate in the Plan. 

B.    The Plan Administrator shall have full authority to determine, (i) with respect to the grants made under
the Option Grant Program, which eligible persons are to receive such grants, the time or times when those grants are to be made, the number of shares to be covered by each such grant, the status of the granted option as either an Incentive Option or
a Non-Statutory Option, the time or times when each option is to become exercisable, the vesting schedule (if any) applicable to the option shares and the maximum term for which the option is to remain outstanding, and (ii) with respect to
stock issuances made under the Stock Issuance Program, which eligible persons are to receive such issuances, the time or times when those issuances are to be made, the number of shares to be issued to each Participant, the vesting schedule (if any)
applicable to the issued shares and the consideration to be paid by the Participant for such shares. The Plan Administrator shall have full authority to grant Options pursuant to the Option Grant Program and issue shares of stock pursuant to the
Stock Issuance Program in compensatory circumstances, however, no options will be 
  

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granted pursuant to the Option Grant Program and no shares will be issued pursuant to the Stock Issuance Program with a capital-raising purpose. 

C.    The Plan Administrator shall have the absolute discretion either to grant options in accordance with the Option
Grant Program or to effect stock issuances in accordance with the Stock Issuance Program. 
  

	V.	STOCK SUBJECT TO THE PLAN 


A.    The maximum number of shares of Common Stock which may be issued over the term of the Plan shall not exceed
Eighteen Million, Three Hundred Forty-One Thousand, Nine Hundred Fifteen (18,341,915). 
 B.    Shares of
Common Stock subject to outstanding options shall be available for subsequent issuance under the Plan to the extent (i) the options expire or terminate for any reason prior to exercise in full or (ii) the options are cancelled in
accordance with the cancellation-regrant provisions of Article Two. Unvested shares issued under the Plan and subsequently repurchased by the Corporation, at the option exercise or direct issue price paid per share, pursuant to the
Corporation’s repurchase rights under the Plan shall be added back to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for reissuance through one or more subsequent option grants or
direct stock issuances under the Plan. 
 C.    Should any change be made to the Common Stock by reason of
any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, appropriate adjustments shall be
made to (i) the maximum number and/or class of securities issuable under the Plan and (ii) the number and/or class of securities and the exercise price per share in effect under each outstanding option in order to prevent the dilution or
enlargement of benefits thereunder. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. In no event shall any such adjustments be made in connection with the conversion of one or more outstanding shares of
the Corporation’s preferred stock into shares of Common Stock. 
 ARTICLE TWO 

OPTION GRANT PROGRAM 
  

	I.	OPTION TERMS 

 Each
option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided, however, that each such document 

 

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shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable to such options. 

 

	 	A.	Exercise Price. 


1. The exercise price per share shall be fixed by the Plan Administrator but shall not be less than eighty-five percent (85%) of the
Fair Market Value per share of Common Stock on the option grant date. 
 2. The exercise price shall become immediately due upon
exercise of the option and shall, subject to the provisions of Section I of Article Four and the documents evidencing the option, be payable in cash or check made payable to the Corporation. Should the Common Stock be registered under
Section 12 of the 1934 Act at the time the option is exercised, then the exercise price may also be paid as follows: 

(i) in shares of Common Stock held for the requisite period necessary to avoid a charge to the Corporation’s
earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date, or 
 (ii) to
the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable instructions (A) to a Corporation-designated brokerage firm to effect
the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable Federal,
state and local income and employment taxes required to be withheld by the Corporation by reason of such exercise and (B) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order to
complete the sale. 
 Except to the extent such sale and remittance procedure is utilized, payment of the
exercise price for the purchased shares must be made on the Exercise Date. 
  

	 	B.	Exercise and Term of Options. 


Each option shall be exercisable at such time or times, during such period and for such number of shares as shall be determined by the
Plan Administrator and set forth in the documents evidencing the option grant. However, no option shall have a term in excess of ten (10) years measured from the option grant date. 

 

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	 	C.	Effect of Termination of Service. 


1.    The following provisions shall govern the exercise of any options held by the Optionee at the time of cessation
of Service or death: 
 (i)    Should the Optionee cease to remain in Service for any reason
other than death, Disability or Misconduct, then the Optionee shall have a period of three (3) months following the date of such cessation of Service during which to exercise each outstanding option held by such Optionee. 

(ii)    Should Optionee’s Service terminate by reason of Disability, then the Optionee shall
have a period of twelve (12) months following the date of such cessation of Service during which to exercise each outstanding option held by such Optionee. 

(iii)    If the Optionee dies while holding an outstanding option, then the personal representative
of his or her estate or the person or persons to whom the option is transferred pursuant to the Optionee’s will or the laws of inheritance or the Optionee’s designated beneficiary or beneficiaries of that option shall have a twelve
(12)-month period following the date of the Optionee’s death to exercise such option. 

(iv)    Under no circumstances, however, shall any such option be exercisable after the specified
expiration of the option term. 
 (v)    During the applicable post-Service exercise period,
the option may not be exercised in the aggregate for more than the number of vested shares for which the option is exercisable on the date of the Optionee’s cessation of Service. Upon the expiration of the applicable exercise period or (if
earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Optionee’s cessation of
Service, terminate and cease to be outstanding with respect to any and all option shares for which the option is not otherwise at the time exercisable or in which the Optionee is not otherwise at that time vested. 

(vi)    Should Optionee’s Service be terminated for Misconduct or should Optionee otherwise
engage in Misconduct while holding one or more outstanding options under the Plan, then all those options shall terminate immediately and cease to remain outstanding. 

2.    The Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any
time while the option remains outstanding, to: 
  

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 (i)    extend the period of time for which the option is
to remain exercisable following Optionee’s cessation of Service or death from the limited period otherwise in effect for that option to such greater period of time as the Plan Administrator shall deem appropriate, but in no event beyond the
expiration of the option term, and/or 
 (ii)    permit the option to be exercised, during
the applicable post-Service exercise period, not only with respect to the number of vested shares of Common Stock for which such option is exercisable at the time of the Optionee’s cessation of Service but also with respect to one or more
additional installments in which the Optionee would have vested under the option had the Optionee continued in Service. 
  

	 	D.	Stockholder Rights. 


The holder of an option shall have no stockholder rights with respect to the shares subject to the option until such person shall have
exercised the option, paid the exercise price and become the recordholder of the purchased shares. 
  

	 	E.	Unvested Shares. 


The Plan Administrator shall have the discretion to grant options which are exercisable for unvested shares of Common Stock. Should the
Optionee cease Service while holding such unvested shares, the Corporation shall have the right to repurchase, at the exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase right shall be exercisable
(including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right. 

 

	 	F.	First Refusal Rights. 


Until such time as the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation shall have the right of
first refusal with respect to any proposed disposition by the Optionee (or any successor in interest) of any shares of Common Stock issued under the Plan. Such right of first refusal shall be exercisable in accordance with the terms established by
the Plan Administrator and set forth in the document evidencing such right. 
  

	 	G.	Limited Transferability of Options. 


An Incentive Stock Option shall be exercisable only by the Optionee during his or her lifetime and shall not be assignable or
transferable other than by will or by the 
  

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laws of inheritance following the Optionee’s death. A Non-Statutory Option may be assigned in whole or in part during the Optionee’s lifetime to one or more members of the
Optionee’s family or to a trust established exclusively for one or more such family members or to Optionee’s former spouse, to the extent such assignment is in connection with the Optionee’s estate plan or pursuant to a domestic
relations order. The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the Non-Statutory Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those
in effect for the option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem appropriate. Notwithstanding the foregoing, the Optionee may also designate one or more
persons as the beneficiary or beneficiaries of his or her outstanding options under the Plan, and those options shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s
death while holding those options. Such beneficiary or beneficiaries shall take the transferred options subject to all the terms and conditions of the applicable agreement evidencing each such transferred option, including (without limitation) the
limited time period during which the option may be exercised following the Optionee’s death. 
  

	II.	INCENTIVE OPTIONS 

 The
terms specified below shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of Articles One, Two and Four shall be applicable to Incentive Options. Options which are specifically
designated as Non-Statutory Options shall not be subject to the terms of this Section II. 
  

	 	A.	Eligibility. 


Incentive Options may only be granted to Employees. 
  

	 	B.	Exercise Price. 


The exercise price per share shall not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on
the option grant date. 
  

	 	C.	Dollar Limitation. 


The aggregate Fair Market Value of the shares of Common Stock (determined as of the respective date or dates of grant) for which one or
more options granted to any Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary) may for the first time become exercisable as Incentive Options during any one (1) calendar year shall not exceed the
sum of One Hundred Thousand 
  

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Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation on the
exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted. 
  

	 	D.	10% Stockholder. 


If any Employee to whom an Incentive Option is granted is a 10% Stockholder, then the exercise price per share shall not be less than one
hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date, and the option term shall not exceed five (5) years measured from such grant date. 

 

	III.	CORPORATE TRANSACTION 


A.    The shares subject to each option outstanding under the Plan at the time of a Corporate Transaction shall
automatically vest in full so that each such option shall, immediately prior to the effective date of the Corporate Transaction, become exercisable for all of the shares of Common Stock at the time subject to that option and may be exercised for any
or all of those shares as fully-vested shares of Common Stock. However, the shares subject to an outstanding option shall not vest on such an accelerated basis if and to the extent: (i) such option is assumed by the successor corporation
(or parent thereof) in the Corporate Transaction and any repurchase rights of the Corporation with respect to the unvested option shares are concurrently assigned to such successor corporation (or parent thereof) or (ii) such option is to be
replaced with a cash incentive program of the successor corporation which preserves the spread existing on the unvested option shares at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same vesting
schedule applicable to those unvested option shares or (iii) the acceleration of such option is subject to other limitations imposed by the Plan Administrator at the time of the option grant. 

B.    All outstanding repurchase rights shall also terminate automatically, and the shares of Common Stock subject to
those terminated rights shall immediately vest in full, in the event of any Corporate Transaction, except to the extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) in connection with such Corporate
Transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 

C.    Immediately following the consummation of the Corporate Transaction, all outstanding options shall terminate
and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof). 
  

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 D.    Each option which is assumed in connection with a Corporate
Transaction shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the number and class of securities which would have been issuable to the Optionee in consummation of such Corporate Transaction, had the option
been exercised immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made to (i) the number and class of securities available for issuance under the Plan following the consummation of such Corporate Transaction
and (ii) the exercise price payable per share under each outstanding option, provided the aggregate exercise price payable for such securities shall remain the same. To the extent the actual holders of the Corporation’s outstanding
Common Stock receive cash consideration for their Common Stock in consummation of the Corporate Transaction, the successor corporation may, in connection with the assumption of the outstanding options under this Plan, substitute one or more shares
of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Corporate Transaction. 

E.    The Plan Administrator shall have the discretion, exercisable either at the time the option is granted or at
any time while the option remains outstanding, to structure one or more options so that those options shall automatically accelerate and vest in full (and any repurchase rights of the Corporation with respect to the unvested shares subject to those
options shall immediately terminate) upon the occurrence of a Corporate Transaction, whether or not those options are to be assumed in the Corporate Transaction. 

F.    The Plan Administrator shall also have full power and authority, exercisable either at the time the option is
granted or at any time while the option remains outstanding, to structure such option so that the shares subject to that option will automatically vest on an accelerated basis should the Optionee’s Service terminate by reason of an Involuntary
Termination within a designated period (not to exceed eighteen (18) months) following the effective date of any Corporate Transaction in which the option is assumed and the repurchase rights applicable to those shares do not otherwise
terminate. Any option so accelerated shall remain exercisable for the fully-vested option shares until the expiration or sooner termination of the option term. In addition, the Plan Administrator may provide that one or more of the
Corporation’s outstanding repurchase rights with respect to shares held by the Optionee at the time of such Involuntary Termination shall immediately terminate on an accelerated basis, and the shares subject to those terminated rights shall
accordingly vest at that time. 
 G.    The portion of any Incentive Option accelerated in connection with a
Corporate Transaction shall remain exercisable as an Incentive Option only to the extent the applicable One Hundred Thousand Dollar limitation is not exceeded. To 

 

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the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory Option under the Federal tax laws. 

H.    The grant of options under the Plan shall in no way affect the right of the Corporation to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

 

	IV.	CANCELLATION AND REGRANT OF OPTIONS 


The Plan Administrator shall have the authority to effect, at any time and from time to time, the cancellation of any or all outstanding
options under the Plan and to grant in substitution therefor new options covering the same or different number of shares of Common Stock but with an exercise price per share based on the Fair Market Value per share of Common Stock on the new option
grant date. 
 ARTICLE THREE 

STOCK ISSUANCE PROGRAM 
  

	I.	STOCK ISSUANCE TERMS 


Shares of Common Stock may be issued under the Stock Issuance Program through direct and immediate issuances without any intervening
option grants. Each such stock issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. 
  

	 	A.	Purchase Price. 


1. The purchase price per share shall be fixed by the Plan Administrator but shall not be less than eighty-five percent (85%) of the
Fair Market Value per share of Common Stock on the issue date. 
 2. Subject to the provisions of Section I of Article Four,
shares of Common Stock may be issued under the Stock Issuance Program for any of the following items of consideration which the Plan Administrator may deem appropriate in each individual instance: 

(i) cash or check made payable to the Corporation, or 

(ii) past services rendered to the Corporation (or any Parent or Subsidiary). 

 

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	 	B.	Vesting Provisions. 


1. Shares of Common Stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, be fully and
immediately vested upon issuance or may vest in one or more installments over the Participant’s period of Service or upon attainment of specified performance objectives. 

2. Any new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) which the
Participant may have the right to receive with respect to the Participant’s unvested shares of Common Stock by reason of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation’s receipt of consideration shall be issued subject to (i) the same vesting requirements applicable to the Participant’s unvested shares of Common Stock and (ii) such
escrow arrangements as the Plan Administrator shall deem appropriate. 
 3. The Participant shall have full stockholder rights
with respect to any shares of Common Stock issued to the Participant under the Stock Issuance Program, whether or not the Participant’s interest in those shares is vested. Accordingly, the Participant shall have the right to vote such shares
and to receive any regular cash dividends paid on such shares. 
 4. Should the Participant cease to remain in Service while
holding one or more unvested shares of Common Stock issued under the Stock Issuance Program or should the performance objectives not be attained with respect to one or more such unvested shares of Common Stock, then those shares shall be immediately
surrendered to the Corporation for cancellation, and the Participant shall have no further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash
or cash equivalent (including the Participant’s purchase-money indebtedness), the Corporation shall repay to the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance of any outstanding
purchase-money note of the Participant attributable to such surrendered shares. 
 5. The Plan Administrator may in its
discretion waive the surrender and cancellation of one or more unvested shares of Common Stock (or other assets attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule applicable to those shares. Such waiver
shall result in the immediate vesting of the Participant’s interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the 

 

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Participant’s cessation of Service or the attainment or non-attainment of the applicable performance objectives. 

 

	 	C.	First Refusal Rights. 


Until such time as the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation shall have the right of
first refusal with respect to any proposed disposition by the Participant (or any successor in interest) of any shares of Common Stock issued under the Stock Issuance Program. Such right of first refusal shall be exercisable in accordance with the
terms established by the Plan Administrator and set forth in the document evidencing such right. 
  

	II.	CORPORATE TRANSACTION 


A.    Upon the occurrence of a Corporate Transaction, all outstanding repurchase rights under the Stock Issuance
Program shall terminate automatically, and the shares of Common Stock subject to those terminated rights shall immediately vest in full, except to the extent: (i) those repurchase rights are assigned to the successor corporation (or parent
thereof) in connection with such Corporate Transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 

B.    The Plan Administrator shall have the discretionary authority, exercisable either at the time the unvested
shares are issued or any time while the Corporation’s repurchase rights with respect to those shares remain outstanding, to provide that those rights shall automatically terminate on an accelerated basis, and the shares of Common Stock subject
to those terminated rights shall immediately vest, in the event the Participant’s Service should subsequently terminate by reason of an Involuntary Termination within a designated period (not to exceed eighteen (18) months) following the
effective date of any Corporate Transaction in which those repurchase rights are assigned to the successor corporation (or parent thereof). 
  

	III.	SHARE ESCROW/LEGENDS 


Unvested shares may, in the Plan Administrator’s discretion, be held in escrow by the Corporation until the Participant’s
interest in such shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested shares. 
  

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 ARTICLE FOUR 

MISCELLANEOUS 
  

	I.	FINANCING 

 The Plan
Administrator may permit any Optionee or Participant to pay the option exercise price under the Option Grant Program or the purchase price for shares issued under the Stock Issuance Program by delivering a full-recourse, interest bearing promissory
note payable in one or more installments and secured by property other than the purchased shares. In no event, however, may the maximum credit available to the Optionee or Participant exceed the sum of (i) the aggregate option exercise price or
purchase price payable for the purchased shares (less the par value of those shares) plus (ii) any Federal, state and local income and employment tax liability incurred by the Optionee or the Participant in connection with the option exercise
or share purchase. 
  

	II.	EFFECTIVE DATE AND TERM OF PLAN 


A.    The Plan shall become effective when adopted by the Board, but no option granted under the Plan may be
exercised, and no shares shall be issued under the Plan, until the Plan is approved by the Corporation’s stockholders. If such stockholder approval is not obtained within twelve (12) months after the date of the Board’s adoption of
the Plan, then all options previously granted under the Plan shall terminate and cease to be outstanding, and no further options shall be granted and no shares shall be issued under the Plan. Subject to such limitation, the Plan Administrator may
grant options and issue shares under the Plan at any time after the effective date of the Plan and before the date fixed herein for termination of the Plan. 

B.    The Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period
measured from the date the Plan is adopted by the Board, (ii) the date on which all shares available for issuance under the Plan shall have been issued as vested shares or (iii) the termination of all outstanding options in connection with
a Corporate Transaction. All options and unvested stock issuances outstanding at the time of a clause (i) termination event shall continue to have full force and effect in accordance with the provisions of the documents evidencing those options
or issuances. 
  

	III.	AMENDMENTS 


A.    The Board shall have complete and exclusive power and authority to amend or modify the Plan and outstanding
options and stock issuances granted under the Plan in any or all respects. However, no such amendment or modification shall 
  


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materially adversely affect the rights of the Optionee or the Participant with respect to options or unvested stock issuances at the time outstanding under the Plan unless the Optionee or the
Participant consents to such amendment or modification. In addition, certain amendments may require stockholder approval pursuant to applicable laws and regulations. 

B.    Options may be granted under the Option Grant Program and shares may be issued under the Stock Issuance Program
which are in each instance in excess of the number of shares of Common Stock then available for issuance under the Plan, provided that, to the extent stockholder approval is required under applicable law or regulation, any excess shares actually
issued under those programs shall be held in escrow until there is obtained stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such stockholder approval is not
obtained within twelve (12) months after the date the first such excess grants or issuances are made, then, to the extent required under applicable law or regulation, (i) any unexercised options granted on the basis of such excess shares
shall terminate and cease to be outstanding and (ii) the Corporation shall promptly refund to the Optionees and the Participants the exercise or purchase price paid for any excess shares issued under the Plan and held in escrow, together with
interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically cancelled and cease to be outstanding. 

 

	IV.	USE OF PROCEEDS 

 Any
cash proceeds received by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 
  

	V.	WITHHOLDING 

 The
Corporation’s obligation to deliver shares of Common Stock upon the exercise of any options granted under the Plan or upon the issuance or vesting of any shares issued under the Plan shall be subject to the satisfaction of all applicable
Federal, state and local income and employment tax withholding requirements. 
  

	VI.	REGULATORY APPROVALS 


The implementation of the Plan, the granting of any options under the Plan and the issuance of any shares of Common Stock (i) upon
the exercise of any option or (ii) under the Stock Issuance Program shall be subject to the Corporation’s procurement of all approvals and permits required by regulatory authorities having

  

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jurisdiction over the Plan, the options granted under it and the shares of Common Stock issued pursuant to it. 
  

	VII.	NO EMPLOYMENT OR SERVICE RIGHTS 


Nothing in the Plan shall confer upon the Optionee or the Participant any right to continue in Service for any period of specific
duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or of the Optionee or the Participant, which rights are hereby expressly reserved by each, to
terminate such person’s Service at any time for any reason, with or without cause. 
  

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 APPENDIX 

The following definitions shall be in effect under the Plan: 

A.    Board shall mean the Corporation’s Board of Directors. 

B.    Code shall mean the Internal Revenue Code of 1986, as amended. 

C.    Committee shall mean a committee of one (1) or more Board members appointed by the Board to
exercise one or more administrative functions under the Plan. 
 D.    Common Stock shall mean
the Corporation’s common stock. 
 E.    Corporate Transaction shall mean either of the
following stockholder-approved transactions to which the Corporation is a party: 
 (i)    a
merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities are transferred to a person or persons different from the persons holding
those securities immediately prior to such transaction, or 
 (ii)    the sale, transfer or
other disposition of all or substantially all of the Corporation’s assets in complete liquidation or dissolution of the Corporation. 

F.    Corporation shall mean Tripwire, Inc., a Delaware corporation, and any successor corporation to
all or substantially all of the assets or voting stock of Tripwire, Inc. which shall by appropriate action adopt the Plan. 

G.    Disability shall mean the inability of the Optionee or the Participant to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which is expected to result in death or has lasted or can be expected to last for a continuous period of twelve (12) months or more. 

H.    Employee shall mean an individual who is in the employ of the Corporation (or any Parent or
Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
  

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 I.    Exercise Date shall mean the date on which the
Corporation shall have received written notice of the option exercise. 
 J.    Fair Market Value
per share of Common Stock on any relevant date shall be determined in accordance with the following provisions: 

(i)    If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market
Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market and published in The Wall Street Journal. If
there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

(ii)    If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value
shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape
of transactions on such exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding
date for which such quotation exists. 
 (iii)    If the Common Stock is at the time neither
listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 

K.    Incentive Option shall mean an option which satisfies the requirements of Code Section 422.

 L.    Involuntary Termination shall mean the termination of the Service of any individual
which occurs by reason of: 
 (i)    such individual’s involuntary dismissal or
discharge by the Corporation for reasons other than Misconduct, or 
 (ii)    such
individual’s voluntary resignation following (A) a change in his or her position with the Corporation which materially reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a
reduction in his or her level of compensation (including base 
  

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salary, fringe benefits and target bonus under any corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such
individual’s place of employment by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected without the individual’s consent. 

M.    Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the
Optionee or Participant, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by such person adversely affecting the
business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right of the Corporation (or any Parent or Subsidiary) to discharge or dismiss any
Optionee, Participant or other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan, to constitute grounds for
termination for Misconduct. 
 N.    1934 Act shall mean the Securities Exchange Act of 1934,
as amended. 
 O.    Non-Statutory Option shall mean an option not intended to satisfy the
requirements of Code Section 422. 
 P.    Option Grant Program shall mean the option
grant program in effect under the Plan. 
 Q.    Optionee shall mean any person to whom an
option is granted under the Plan. 
 R.    Parent shall mean any corporation (other than the
Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of
the total combined voting power of all classes of stock in one of the other corporations in such chain. 

S.    Participant shall mean any person who is issued shares of Common Stock under the Stock Issuance
Program. 
 T.    Plan shall mean the Corporation’s 2000 Stock Option/Stock Issuance
Plan, as set forth in this document. 
 U.    Plan Administrator shall mean either the Board
or the Committee acting in its capacity as administrator of the Plan. 
  

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 V.    Service shall mean the provision of services to the
Corporation (or any Parent or Subsidiary) by a person in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in the documents
evidencing the option grant. 
 W.    Stock Exchange shall mean either the American Stock
Exchange or the New York Stock Exchange. 
 X.    Stock Issuance Agreement shall mean the
agreement entered into by the Corporation and the Participant at the time of issuance of shares of Common Stock under the Stock Issuance Program. 

Y.    Stock Issuance Program shall mean the stock issuance program in effect under the Plan.

 Z.    Subsidiary shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 
 AA.    10%
Stockholder shall mean the owner of stock (as determined under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary).

  

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