exv10w36



 






Exhibit 10.36




VITRIA TECHNOLOGY, INC.

1999 EQUITY INCENTIVE PLAN




RESTRICTED STOCK AWARD AGREEMENT




     Pursuant to the Restricted Stock Award Grant Notice (“Grant Notice”) and this Restricted
Stock Award Agreement (collectively, the “Award”) and in consideration of the Purchase Price (as
defined below), Vitria Technology, Inc. (the “Company”) has awarded you a restricted stock award
under its 1999 Equity Incentive Plan (the “Plan”) for the number of shares of the Company’s Common
Stock subject to the Award as indicated in the Grant Notice. Defined terms not explicitly defined
in this Restricted Stock Award Agreement but defined in the Plan shall have the same definitions as
in the Plan.



     The details of your Award are as follows:



     1. CONSIDERATION. The purchase price of Common Stock acquired pursuant to the Award shall be
paid either: (i) in cash at the time of purchase; (ii) at the discretion of the Board, according to
a deferred payment or other similar arrangement with you; (iii) at the discretion of the Board, by
services rendered or to be rendered to the Company; or (iv) in any other form of legal
consideration that may be acceptable to the Board in its discretion (the “Purchase Price”);
provided, however, that payment of the Common Stock’s “par value,” as defined in the Delaware
General Corporation Law, shall not be made by deferred payment and must be made in a form of
consideration legal under Delaware General Corporation Law.



     2. VESTING. Subject to the limitations contained herein, your Award will vest as provided in
the Grant Notice, provided that vesting will cease upon the termination of your Continuous Service.



     3. NUMBER OF SHARES. The number of shares subject to your Award may be adjusted from time to
time for Capitalization Adjustments, as provided in the Plan.



     4. TRANSFER RESTRICTIONS. The shares issued under your Award are not transferable until
vested and while non-vested shall not be sold, assigned, hypothecated, pledged or otherwise
transferred by you. The Company shall not be required: (a) to transfer on its books any shares
issued under your Award that are sold, assigned, hypothecated, pledged, or otherwise transferred in
violation of any of the provisions set forth in this Agreement, or (b) to treat as owner of such
shares issued under your Award or to accord the right to vote as such owner or to pay dividends to
any purported transferee of such shares issued under your Award.



     5. RIGHT OF REACQUISITION.




          (a) The Company shall have the right to reacquire all or any part of the shares (the
“Reacquisition Right”) you received pursuant to your Award that have not as yet vested in
accordance with the Vesting Schedule on the Grant Notice (“Unvested Shares”) on the following terms
and conditions:



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               (i) The Company shall simultaneously with termination of your Continuous Service automatically
reacquire all of the Unvested Shares for the consideration that you paid or for no consideration if
the shares were granted to you, unless the Company agrees to waive its Reacquisition Right as to
some or all of the Unvested Shares. Any such waiver shall be exercised by the Company by written
notice to you or your representative (with a copy to the Escrow Holder as defined below) within
ninety (90) days after the termination of your Continuous Service, and the Escrow Holder may then
release to you the number of Unvested Shares not being reacquired by the Company. If the Company
does not waive its Reacquisition Right as to all of the Unvested Shares, then upon such termination
of your Continuous Service, the Escrow Holder shall transfer to the Company the number of shares
the Company is reacquiring.



               (ii) The shares issued under your Award shall be held in escrow pursuant to the terms of the
Joint Escrow Instructions attached to the Grant Notice as Attachment IV. You agree to execute
three (3) Assignment Separate From Certificate forms (with date and number of shares blank)
substantially in the form attached to the Grant Notice as Attachment III and deliver the same,
along with the certificate or certificates evidencing the shares, for use by the escrow agent
pursuant to the terms of the Joint Escrow Instructions.



               (iii) Subject to the provisions of your Award, you shall, during the term of your Award,
exercise all rights and privileges of a shareholder of the Company with respect to the shares
deposited in escrow. You shall be deemed to be the holder of the shares for purposes of receiving
any dividends which may be paid with respect to such shares and for purposes of exercising any
voting rights relating to such shares, even if some or all of such shares have not yet vested and
been released from the Company’s Reacquisition Right.



               (iv) If, from time to time, there is any stock dividend, stock split or other change in the
character or amount of any of the outstanding stock of the corporation, the stock of which is
subject to the provisions of your Award, then in such event any and all new, substituted or
additional securities to which you are entitled by reason of your ownership of the shares acquired
under your Award shall be immediately subject to the Reacquisition Right with the same force and
effect as the shares subject to this Reacquisition Right immediately before such event.



     6. RESTRICTIVE LEGENDS. All certificates representing the Common Stock shall have endorsed
thereon legends in substantially the following forms (in addition to any other legend which may be
required by other agreements between the parties hereto):




“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN OPTION SET FORTH IN AN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR SUCH HOLDER’S
PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS
COMPANY. ANY TRANSFER OR ATTEMPTED TRANSFER OF ANY SHARES SUBJECT TO SUCH OPTION IS
VOID WITHOUT THE PRIOR EXPRESS WRITTEN CONSENT OF THE COMPANY.”



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     7. AWARD NOT A SERVICE CONTRACT. Your Award is not an employment or service contract, and
nothing in your Award shall be deemed to create in any way whatsoever any obligation on your part
to continue in the employ of the Company or an Affiliate, or on the part of the Company or an
Affiliate to continue your employment. In addition, nothing in your Award shall obligate the
Company or an Affiliate, their respective shareholders, boards of directors, Officers or Employees
to continue any relationship that you might have as a Director or Consultant for the Company or an
Affiliate.



     8. WITHHOLDING OBLIGATIONS.




          (a) At the time your Award is made, or at any time thereafter as requested by the Company, you
hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree
to make adequate provision for any sums required to satisfy the federal, state, local and foreign
tax withholding obligations of the Company or an Affiliate, if any, which arise in connection with
your Award.



          (b) Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied,
the Company shall have no obligation to issue a certificate for such shares or release such shares
from any escrow provided for herein.



     9. TAX CONSEQUENCES. The acquisition and vesting of the shares may have adverse tax
consequences to you. You may mitigate or exacerbate such tax consequences by filing an election
under Section 83(b) of the Internal Revenue Code, as amended (the “Code”). Such election must be
filed within thirty (30) days after the date of your Award. YOU ACKNOWLEDGE THAT IT IS YOUR OWN
RESPONSIBILITY, AND NOT THE COMPANY’S, TO DETERMINE WHETHER A SECTION 83(b) ELECTION IS APPROPRIATE
FOR YOUR SITUATION. If YOU DECIDE TO FILE A SECTION 83(b) ELECTION, IT IS YOUR RESPONSIBILITY AND
NOT THE COMPANY’S TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(B), EVEN IF YOU REQUEST THE
COMPANY TO MAKE THE FILING ON YOUR BEHALF.



     10. NOTICES. Any notices provided for in your Award 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. MISCELLANEOUS.




          (a) The rights and obligations of the Company under your Award shall be transferable to any
one or more persons or entities, and all covenants and agreements hereunder shall inure to the
benefit of, and be enforceable by the Company’s successors and assigns. Your rights and obligations
under your Award may only be assigned with the prior written consent of the Company.



          (b) You agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or intent of your
Award.



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          (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully
understand all provisions of your Award.



     12. GOVERNING PLAN DOCUMENT. Your Award is subject to all the provisions of the Plan, the
provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award
and those of the Plan, the provisions of the Plan shall control.



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ASSIGNMENT SEPARATE FROM CERTIFICATE




     FOR VALUE RECEIVED and pursuant to that certain Restricted Stock Award Grant Notice and
Restricted Stock Award Agreement (the “Award”), _________ hereby sells, assigns and
transfers unto Vitria Technology, Inc., a Delaware corporation (“Assignee”)
_____________________ (____________) shares of the common stock of the Assignee, standing in the
undersigned’s name on the books of said corporation represented by Certificate No. ______ herewith
and do hereby irrevocably constitute and appoint ____________ as attorney-in-fact to
transfer the said stock on the books of the within named Company with full power of substitution in
the premises. This Assignment may be used only in accordance with and subject to the terms and
conditions of the Award, in connection with the reacquisition of shares of Common Stock of the
Assignee issued to the undersigned pursuant to the Award, and only to the extent that such shares
remain subject to the Assignee’s Reacquisition Right under the Award.


Dated: ___________________________________




Signature: _____________________________________




_________________________, Recipient





[INSTRUCTION: Please do not fill in any blanks other than the signature line. The purpose of this
Assignment is to enable the Company to exercise its Reacquisition Right set forth in the Award
without requiring additional signatures on your part.]



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JOINT ESCROW INSTRUCTIONS




[Date]




Corporate Secretary

Vitria Technology, Inc.

945 Stewart Street

Sunnyvale, CA 94086



Dear Sir/Madam:




     As Escrow Agent for both Vitria Technology, Inc., a Delaware corporation (the “Company”), and
the undersigned recipient of stock of the Company (“Recipient”), you are hereby authorized and
directed to hold the documents delivered to you pursuant to the terms of that certain Restricted
Stock Award Grant Notice (the “Grant Notice”), dated ___to which a copy of these Joint
Escrow Instructions is attached as Attachment IV, and pursuant to the terms of that certain
Restricted Stock Award Agreement (“Agreement”), which is Attachment I to the Grant Notice, in
accordance with the following instructions:



     1. In the event the Company or an assignee shall elect to exercise the Repurchase Option set
forth in the Agreement, the Company or its assignee will give to Recipient and you a written notice
specifying the number of shares of stock to be purchased and the time and place for a closing
thereunder. Recipient and the Company hereby irrevocably authorize and direct you to close the
transaction contemplated by such notice in accordance with the terms of said notice.



     2. At the closing, you are directed (a) to date the stock assignments necessary for the
transfer in question, (b) to fill in the number of shares being transferred, and (c) to deliver the
same, together with the certificate evidencing the shares of stock to be transferred, to the
Company against the simultaneous delivery to you of the purchase price (which may include suitable
acknowledgment of cancellation of indebtedness) for the number of shares of stock being purchased
pursuant to the exercise of the Repurchase Option.



     3. Recipient irrevocably authorizes the Company to deposit with you any certificates
evidencing shares of stock to be held by you hereunder and any additions and substitutions to said
shares as specified in the Agreement. Recipient does hereby irrevocably constitute and appoint you
as his attorney-in-fact and agent for the term of this escrow to execute with respect to such
securities and other property all documents necessary or appropriate to make such securities
negotiable and complete any transaction herein contemplated, including but not limited to any
appropriate filing with state or government officials or bank officials.



     4. This escrow shall terminate upon the exercise in full or expiration of the Repurchase
Option, whichever occurs first.



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     5. If at the time of termination of this escrow you should have in your possession any
documents, securities, or other property belonging to Recipient, you shall deliver all of the same
to Recipient and shall be discharged of all further obligations hereunder; provided, however, that
if at the time of termination of this escrow you are advised by the Company that any property
subject to this escrow is the subject of a pledge or other security agreement, you shall deliver
all such property to the pledgeholder or other person designated by the Company.



     6. Except as otherwise provided in these Joint Escrow Instructions, your duties hereunder may
be altered, amended, modified or revoked only by a writing signed by all of the parties hereto.



     7. You shall be obligated only for the performance of such duties as are specifically set
forth herein and may rely and shall be protected in relying or refraining from acting on any
instrument reasonably believed by you to be genuine and to have been signed or presented by the
proper party or parties. You shall not be personally liable for any act you may do or omit to do
hereunder as Escrow Agent or as attorney-in-fact for Recipient while acting in good faith, and any
act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive
evidence of such good faith.



     8. You are hereby expressly authorized to disregard any and all warnings given by any of the
parties hereto or by any other person or corporation, excepting only orders or process of courts of
law, and are hereby expressly authorized to comply with and obey orders, judgments or decrees of
any court. In case you obey or comply with any such order, judgment or decree of any court, you
shall not be liable to any of the parties hereto or to any other person, firm or corporation by
reason of such compliance, notwithstanding any such order, judgment or decree being subsequently
reversed, modified, annulled, set aside, vacated or found to have been entered without
jurisdiction.



     9. You shall not be liable in any respect on account of the identity, authorities or rights of
the parties executing or delivering or purporting to execute or deliver these Joint Escrow
Instructions or documents or papers deposited or called for hereunder.



     10. You shall not be liable for the outlawing of any rights under any statute of limitations
with respect to these Joint Escrow Instructions or any documents deposited with you.



     11. Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be
Secretary of the Company or if you shall resign by written notice to each party. In the event of
any such termination, the Secretary of the Company shall automatically become the successor Escrow
Agent unless the Company shall appoint another officer or assistant officer of the Company as
successor Escrow Agent, and Recipient hereby confirms the appointment of such successor as his
attorney-in-fact and agent to the full extent of your appointment.



     12. If you reasonably require other or further instruments in connection with these Joint
Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in
furnishing such instruments.



     13. It is understood and agreed that should any dispute arise with respect to the delivery
and/or ownership or right of possession of the securities held by you hereunder, you are



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authorized and directed to retain in your possession without liability to anyone all or any
part of said securities until such dispute shall have been settled either by mutual written
agreement of the parties concerned or by a final order, decree or judgment of a court of competent
jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall
be under no duty whatsoever to institute or defend any such proceedings.



     14. All notices required or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by
confirmed telex or facsimile if sent during normal business hours of the recipient, and if not
during normal business hours of the recipient, then on the next business day, (c) five (5) calendar
days after having been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be
sent to the other parties hereto at such party’s address set forth below, or at such other address
as such party may designate by ten (10) days advance written notice to the other parties hereto.



	 	 	 
	Company:

	 	Vitria Technology, Inc.
	

	 	945 Stewart Street
	

	 	Sunnyvale, CA 94086
	

Recipient:



Escrow Agent:

	 	Attn: General Counsel / Chief Financial Officer Vitria
Technology, Inc.
	

	 	945 Stewart Street
	

	 	Sunnyvale, CA 94086
	

	 	Attn: Corporate Secretary






     15. By signing these Joint Escrow Instructions, you become a party hereto only for the purpose
of said Joint Escrow Instructions; you do not become a party to the Grant Notice.



     16. You shall be entitled to employ such legal counsel and other experts (including, without
limitation, the firm of Cooley Godward LLP) as you may deem necessary properly to advise you in
connection with your obligations hereunder. You may rely upon the advice of such counsel, and you
may pay such counsel reasonable compensation therefor. The Company shall be responsible for all
fees generated by such legal counsel in connection with your obligations hereunder.



     17. This instrument shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns. It is understood and agreed that references to
“you” and “your” herein refer to the original Escrow Agent and to any and all successor Escrow
Agents. It is understood and agreed that the Company may at any time or from time to time assign
its rights under the Grant Notice and these Joint Escrow Instructions in whole or in part.



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     18. These Joint Escrow Instructions shall be governed by and interpreted and determined in
accordance with the laws of the State of California, as such laws are applied by California courts
to contracts made and to be performed entirely in California by residents of that state.


	 	 	 	 	 
	 	Very truly yours,





VITRIA TECHNOLOGY, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	Title:  	 	 
	 
	 	Name:  	 	 



	 	 	 	 	 
	 	RECIPIENT



	 
	 	  	 	 
	 
	 	Name:  	 	 





ESCROW AGENT:




_______________________________________




Name: _________________________________





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