EX-10.1



 





Exhibit 10.1








Computer Associates International, Inc.

Non-Qualified Stock Option Certificate




     





	 	 	 	 	 
	

Name of Option Holder

	 	

EMPLID
	 	 







	 	 	 
	Option Number

	 	Option
	 

	 	 
	Total Number of Shares Granted

	 	**Total Granted**
	Option Date

	 	Option Date
	Exercise Price Per Share

	 	Ex Price









	 	 	NON-QUALIFIED STOCK OPTION granted by Computer Associates International, Inc.,
a Delaware corporation, (the “Company”) to the above-named option holder (the
“Optionee”), an employee or consultant of the Company or one of its
subsidiaries, pursuant to the Computer Associates International, Inc. 2002
Incentive Plan (the ‘“Plan”), the terms of which are incorporated herein by
reference and which, in the event of any conflict, shall control over the
terms contained herein.
	 
	1.	 	Grant and Vesting Option 

Subject to the vesting schedule below, the Company hereby grants to the
Optionee an option to purchase on the terms herein provided a total of the
number of shares of common stock, $.10 par value, of the Company set forth
above, at an exercise price per share as set forth above.
	 
	 	 	This option may be exercised only with respect to the portion thereof that is
vested. The Optionee’s right to exercise this option shall become vested in
annual increments on the anniversary dates of the granting of this option
according to the following vesting schedule:





	 	 	 	 	 
	 	 	Percentage (%) of Option
Shares With Respect to Which
	Anniversary Date 
	 	Optionee Has a Vested
Option to Exercise

	1st

	 	 	34	%
	2nd

	 	 	33	%
	3rd

	 	 	33	%









	 	 	Vested rights shall be calculated only in terms of full years (for example,
from one anniversary date to the next) and no partial vesting credit shall be
given for partial years of employment.
	 
	 	 	This option shall expire and shall not be exercisable after the expiration of
ten (10) years from the date it is granted.
	 
	2.	 	Stock to be Delivered 

Stock to be delivered upon the exercise of this option may constitute an
original issue of authorized stock or may consist of treasury stock.
	 
	3.	 	Exercise of Option 

Each election to exercise this option shall be made, by delivering to the
Company or its agent a properly executed exercise notice, together with
irrevocable instructions to a broker to deliver promptly to the Company the
amount of sale or loan proceeds with respect to the portion of shares to be
acquired upon exercise. Exercise of this option will not be permitted if the
Company determines, in its sole and absolute discretion, that issuance of shares at
that time could violate any law or regulation.
	 
	 	 	In the event an option is exercised by the executor or administrator of a
deceased Optionee, or by the person or persons to whom the option has been
transferred by the Optionee’s will or the applicable laws of descent and
distribution, the Company shall be under no obligation to deliver stock there
under unless and until the Company is satisfied that the person or persons
exercising the option is or are the duly appointed executor(s) or
administrator(s) of the deceased Optionee or the person to whom the option has
been transferred by the Optionee’s will or by the applicable laws of descent
and distribution.





 









 













	4.	 	Payment for and Delivery of Stock

Payment in full by cash, certified check, bank draft, wire transfer or postal
or express money order shall be made for all shares for which this option is
exercised at the time of such exercise, and no shares shall be delivered until
such payment is made.
	 
	 	 	Alternatively, payment may be made by (i) delivering to the Company a properly
executed exercise notice, together with irrevocable instructions to a broker
to deliver promptly to the Company the amount of sale or loan proceeds with
respect to the portion of the shares to be acquired upon exercise having a
Fair Market Value on the date of exercise equal to the sum of the applicable
portion of the exercise price being so paid, (ii) tendering to the Company (by
physical delivery or by attestation) certificates representing shares of
outstanding common stock, par value $.10, of the Company that have been held
by the Optionee for at least six months prior to exercise, having a Fair
Market Value on the day prior to the date of exercise equal to the applicable
portion of the exercise price being so paid, together with stock powers duly
executed and with signature guaranteed; or (iii) any combination of the
foregoing. Notwithstanding the foregoing, a form of payment will not be
available if the Company determines, in its sole and absolute discretion, that
such form of payment could violate any law or regulation.
	 
	 	 	The Company shall not be obligated to deliver any stock unless and until (i)
satisfactory arrangements have been made with the Company for the payment of
any applicable tax withholding obligations, (ii) all applicable federal and
state laws and regulations have been complied with, (iii) in the event the
outstanding common stock is at the time listed upon any stock exchange, the shares to be delivered have been listed, or authorized to be listed upon
official notice of issuance upon the exchanges where it is listed, and (iv)
all legal matters in connection with the issuance and delivery of the shares
have been approved by counsel of the Company. The Optionee shall have no
rights of a stockholder until the stock is actually delivered to him.
	 
	5.	 	Recovery and Reimbursement of Option Gain

The Company shall have the right to recover, or receive reimbursement for, any
compensation or profit realized by the exercise of this option or by the
disposition of any option shares to the extent that the Company has such a
right of recovery or reimbursement under applicable securities laws.
	 
	6.	 	Transferability of Options

Except as provided below, this option may not be transferred by the Optionee
otherwise than by will or the laws of descent and distribution or pursuant to
a qualified domestic relations order as defined in Section 414(p) of the
Internal Revenue Code, and during the Optionee’s lifetime this option may be
exercised only by the Optionee. Notwithstanding the foregoing, this option
may be transferred by the Optionee to members of his or her immediate family
or to one or more trusts for the benefit of such family members or to one or
more partnerships in which such family members are the only partners provided
that (i) the optionee does not receive any consideration for such transfer,
(ii) written notice of any proposed transfer and the details thereof shall
have been furnished to the Compensation and Human Resource Committee at least
three (3) days in advance of such transfer, and (iii) the Compensation and
Human Resource Committee consents to the transfer in writing. Options
transferred pursuant to this provision will continue to be subject to the same
terms and conditions that were applicable to such options immediately prior to
transfer and the option may be exercised by the transferee only to the same
extent that the option could have been exercised by the Optionee had no
transfer been made. For this purpose, the Optionee’s “family members” shall
include the Optionee’s spouse, children, grandchildren, parents, grandparents
(whether natural step, adopted or in-laws) siblings, nieces, nephews and
grandnieces and grand nephews.
	 
	7.	 	Termination of Employment or Consultancy

Upon termination of employment or consultancy, other than termination of
employment or consultancy by reason of (i) Retirement, as defined in the Plan, (ii) disability, or (iii) death, any portion of this option that has not
become vested as of the date of termination shall immediately terminate and
any portion of this option that has already vested as of such date shall
terminate thirty (30) days after termination of employment or consultancy or
the expiration date of the option, whichever occurs first.
	 
	8.	 	Retirement

In the event of the Optionee’s Retirement, as defined in the Plan, from the
employ of Company or any subsidiary, any portion of this option that has not
become vested as of the date of Retirement shall immediately terminate and any
portion of this option that has already vested as of such date shall terminate
one (1) year after such Retirement or on the expiration date of the option,
whichever occurs first.
	 
	9.	 	Disability

In the event of termination of employment of the Optionee because of
disability, any unexercised portion of this option held by the Optionee at the
date of such termination (vested and unvested) will immediately become
exercisable in full and will remain exercisable by the Optionee for a period
of one (1) year or the remaining term of the option, whichever is shorter.
	 
	10.	 	Death

If an Optionee dies while employed by the Company, any unexercised portion of
this option held by the Optionee at his date of death (vested and unvested)
will immediately become exercisable in full and will remain exercisable by the
estate of the deceased Optionee or the person given authority to exercise his
options by his will or by operation of law for a period of one (1) year or the
remaining term of the option, whichever is shorter.
	 
	11.	 	Changes In Stock





 









 







	 	 	In the event of any stock split, reverse stock split, dividend or other
distribution (whether in the form of cash, shares, other securities or other
property), extraordinary cash dividend, recapitalization, merger,
consolidation, split-up, spin-off, reorganization, combination, repurchase or
exchange of shares or other securities, the issuance of warrants or other
rights to purchase shares or other securities, or other similar corporate
transaction or event, the number and kind of shares of stock of the Company
covered by this option, the option price and other relevant provisions may be
appropriately adjusted by the Compensation and Human Resource Committee, in
its discretion, to the extent necessary to prevent dilution or enlargement of
the benefits or potential benefits intended to be provided by this option.
Any such determinations and adjustments made by the Compensation and Human
Resource Committee shall be binding on all persons. In the event of (i) a
consolidation or merger in which the Company is not the surviving corporation,
(ii) a consolidation or merger in which the Company is the surviving
corporation but holders of shares receive securities or another corporation,
or (iii) a sale of substantially all of the Company’s assets (as an entirety)
or capital stock to another person, this option shall be deemed to apply to
the equivalent amount of securities, cash or other property that is received
by Company stockholders in exchange for their Company shares pursuant to such
transaction; provided, however, that the Compensation and Human Resource
Committee may, in its discretion, either (i) provide, upon written notice to
the Optionee, that this option shall terminate as of the date specified in
such notice (in which case the Compensation and Human Resource Committee may,
but does not have to, accelerate the vesting of any portion of this option
that has not already vested as of the date such notice is provided to the
Optionee), or (ii) cancel this option and in consideration of such
cancellation pay to the Optionee an amount in cash with respect to each share
then remaining under the option equal to the difference between the Fair
Market Value of such share on the date of cancellation (or, if greater, the
per share value of the consideration received by Company stockholders as a
result of the merger, consolidation, reorganization or sale) and the per share
exercise price of the option.
	 
	12.	 	Continuance of Employment 

This option shall not be deemed to obligate the Company or any subsidiary to
retain the Optionee in its employ for any period.
	 
	 	 	IN WITNESS WHEREOF, Computer Associates International, Inc. has caused this
certificate to be executed by the Chief Operating Officer. This option is
granted at the Company’s principal executive office, One Computer Associates
Plaza, Islandia, New York 11749, on the date stated above.
	 
	 	 	Computer Associates International, Inc.





     





	 	 	 	 	 
	By

	 	
	 	 
	

	 	
	 	 
	

	 	Jeff Clarke 	 	 
	

	 	Chief Operating Officer