Document:

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                                                                    EXHIBIT 4.13

                              OFFICER'S CERTIFICATE

                                  JUNE __, 2006

         Pursuant to Section 2.03 of the Junior Subordinated Indenture, dated as
of June __, 2006 (the "BASE INDENTURE") between the Great Wolf Resorts, Inc.
(the "COMPANY") and Wilmington Trust Company, as Indenture Trustee (the
"INDENTURE TRUSTEE"), the undersigned [Chief Executive Officer][Chief Financial
Officer], pursuant to authority granted by the Company's Board of Directors in
resolutions duly adopted on May 23, 2006 and pursuant to the resolutions duly
adopted on June __, 2006 by the Pricing Committee of the Board of Directors,
hereby certifies and establishes the terms of the __% Junior Subordinated
Debentures due 2036 (the "DEBENTURES") of the Company and attaches as Exhibit A
the form of the Debentures to be issued and authenticated in accordance with the
terms of the Base Indenture and sold and delivered to GW Capital Trust II (the
"TRUST") pursuant to the Junior Subordinated Debenture Subscription Agreement
(as defined in the Trust Agreement), in each case, as of the date hereof:

<TABLE>
<S>                                          <C>
Title:                                       __% Junior Subordinated Debentures due 2036

Aggregate Principal Amount:                  $__

Maturity Date:                               June   , 2036

Annual Rate of Interest:                     __%, subject to increase as provided in the form of Debentures

Interest Payment Dates:                      Interest on the Debentures will accrue from and including the most
                                             recent Interest Payment Date (as defined below) to which interest
                                             has been paid or duly provided for, or, if no interest has been
                                             paid or duly provided for, from and including _______, 2006 to but
                                             excluding the date the principal hereof has been paid or duly made
                                             available for payment, subject to the right of the Company to defer
                                             interest payments for up to six consecutive quarters as set forth
                                             in the form of Debentures. Interest is payable quarterly in arrears
                                             on March __, June __, September __ and December __ of each year,
                                             commencing September __, 2006 (each, an "INTEREST PAYMENT DATE").

Record Dates:                                Interest will be payable, subject to certain exceptions specified in
                                             the form of Debentures, to the Person (as defined in the Base
                                             Indenture) in whose name the Debentures are registered at the close of
                                             business on the 15th calendar day (whether or not a Business Day (as
                                             defined in the Base Indenture)) next preceding such Interest Payment
                                             Date.

Redemption Provisions:                       The Debentures will be redeemable prior to maturity at the option of
                                             the Company:
</TABLE>

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<TABLE>
<S>                                          <C>
                                             (i)   on or after June __, 2011, in whole or in part on one or more
                                                   occasions, at any time;

                                             (ii)  prior to June __, 2011, in whole (but not in part) at any time
                                                   within 90 calendar days following the occurrence and
                                                   continuation of a Tax Event or an Investment Company Event (each
                                                   as defined in the form of Debentures); and

                                             (iii) on and after the 30th calendar day after the occurrence of a
                                                   Special Event (as defined in the form of Debentures) but prior
                                                   to a Special Event Termination (as defined in the form of
                                                   Debentures),

                                             in each case, at a redemption price equal to 100% of the principal
                                             amount of Debentures to be redeemed plus any accumulated and unpaid
                                             interest, including any Compounded Interest (as defined in the form of
                                             Debentures), and any Additional Sums (as defined in the form of
                                             Debentures), to but excluding the redemption date.

Form and Denomination:                       One certificate in fully registered form in the aggregate principal
                                             amount of $_____________.

Definitive Notes:                            May be issued only upon satisfaction of the conditions set forth in
                                             the Base Indenture.

Trust                                        For purposes of this Officer's Certificate and the Debentures,
                                             "TRUST" and "ISSUER TRUST" shall mean GW Capital Trust II, a
                                             Delaware statutory trust, or any permitted successor thereto.

Property Trustee and Depositary:             The Company hereby appoints Wilmington Trust Company, the property
                                             trustee, as depositary for the Debentures; provided that, in the
                                             event of a distribution of Debentures to the holders of trust preferred
                                             securities of GW Capital Trust II, The  Depository Trust Company
                                             will be appointed as depositary for the Debentures.

Other:                                       All other terms and other provisions of the Debentures required to be
                                             set forth in an Officer's Certificate pursuant to Section 2.03 of the
                                             Base Indenture are as specified in the Base Indenture or as set forth
                                             in the form of Debentures which is attached hereto as Exhibit A. To
                                             the extent there is any conflict or inconsistency regarding a term or
                                             other provision of the Debentures between the Base Indenture and this
                                             Officer's Certificate (including the form of Debentures attached
                                             hereto), then this Officer's Certificate and such form shall govern.
</TABLE>

                                       2
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                  IN WITNESS WHEREOF, the undersigned has executed this
Officer's Certificate as of the date first written above.

                                          By:
                                             -----------------------------------
                                             Name:
                                             Title:

                                       3EX-10.20 2004 Stock Plan

 

Exhibit 10.20

BLACKBAUD, INC.

2004 STOCK PLAN

(as amended June 14, 2006)

     1. Purpose. This 2004 Stock Plan (the “Plan”) is intended to provide incentives:

          (a) to employees of Blackbaud, Inc. (the “Company”), or its parent (if any) or any of its
present or future subsidiaries (collectively, “Related Corporations”), by providing them with
opportunities to purchase Common Stock (as defined below) of the Company pursuant to options
granted hereunder that qualify as “incentive stock options” (“ISOs”) under Section 422 of the
Internal Revenue Code of 1986, as amended, or any successor statute (the “Code”);

          (b) to directors, employees and consultants of the Company and Related Corporations by
providing them with opportunities to purchase Common Stock (as defined below) of the Company
pursuant to options granted hereunder that do not qualify as ISOs (Nonstatutory Stock Options, or
“NSOs”);

          (c) to employees and consultants of the Company and Related Corporations by providing them
with bonus awards of Common Stock (as defined below) of the Company (“Stock Bonuses”); and

          (d) to employees and consultants of the Company and Related Corporations by providing them
with opportunities to make direct purchases of Common Stock (as defined below) of the Company
(“Purchase Rights”).

     Both ISOs and NSOs are referred to hereafter individually as “Options”, and Options, Stock
Bonuses and Purchase Rights are referred to hereafter collectively as “Stock Rights”. As used
herein, the terms “parent” and “subsidiary” mean “parent corporation” and “subsidiary corporation”,
respectively, as those terms are defined in Section 424 of the Code.

     2. Administration of the Plan.

          (a) The Plan shall be administered by (i) the Board of Directors of the Company (the “Board”)
or (ii) a committee consisting of directors or other persons appointed by the Board (the
“Committee”). The appointment of the members of, and the delegation of powers to, the Committee by
the Board shall be consistent with applicable laws and regulations (including, without limitation,
the Code, Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), or any successor rule thereto (“Rule 16b-3”), and any applicable state law
(collectively, the “Applicable Laws”). Once appointed, such Committee shall continue to serve in
its designated capacity until otherwise directed by the Board. From time to time, the Board may
increase the size of the Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution

 

 

therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter
directly administer the Plan, all to the extent permitted by the Applicable Laws.

          (b) Subject to ratification of the grant or authorization of each Stock Right by the Board (if
so required by an Applicable Law), and subject to the terms of the Plan, the Committee, if so
appointed, shall have the authority, in its discretion, to:

               (i) determine the employees of the Company and Related Corporations (from among the class of
employees eligible under Section 3 to receive ISOs) to whom ISOs may be granted, and to determine
(from among the classes of individuals and entities eligible under Section 3 to receive NSOs, Stock
Bonuses and Purchase Rights) to whom NSOs, Stock Bonuses and Purchase Rights may be granted;

               (ii) determine the time or times at which Options, Stock Bonuses or Purchase Rights may be
granted (which may be based on performance criteria);

               (iii) determine the number of shares of Common Stock subject to any Stock Right granted by the
Committee;

               (iv) determine the option price of shares subject to each Option, which price shall not be
less than the minimum price specified in Section 6 hereof, as appropriate, and the purchase price
of shares subject to each Purchase Right and to determine the form of consideration to be paid to
the Company for exercise of such Option or purchase of shares with respect to a Purchase Right;

               (v) determine whether each Option granted shall be an ISO or NSO;

               (vi) determine (subject to Section 7) the time or times when each Option shall become
exercisable and the duration of the exercise period;

               (vii) determine whether restrictions such as repurchase options are to be imposed on shares
subject to Options, Stock Bonuses and Purchase Rights and the nature of such restrictions, if any;

               (viii) approve forms of agreement for use under the Plan;

               (ix) determine the fair market value of a Stock Right or the Common Stock underlying a Stock
Right;

               (x) accelerate vesting on any Stock Right or to waive any forfeiture restrictions, or to waive
any other limitation or restriction with respect to a Stock Right;

               (xi) reduce the exercise price of any Stock Right if the fair market value of the Common Stock
covered by such Stock Right shall have declined since the date the Stock Right was granted;
provided, however, that any reduction of the exercise price pursuant to this

 

 

paragraph shall be subject to stockholder approval (and stockholder approval shall be required for
any amendment to this Plan to eliminate the requirement of stockholder approval for such
repricings);

               (xii) institute a program whereby outstanding Options can be surrendered in exchange for
Options with a lower exercise price; provided, however, that any exchange of
Options pursuant to this paragraph shall be subject to stockholder approval (and stockholder
approval shall be required for any amendment to this Plan to eliminate the requirement of
stockholder approval for such exchanges);

               (xiii) modify or amend each Stock Right (subject to Section 8(d) of the Plan) including the
discretionary authority to extend the post-termination exercisability period of Stock Rights longer
than is otherwise provided for by terms of the Plan or the Stock Right;

               (xv) construe and interpret the Plan and Stock Rights granted hereunder and prescribe and
rescind rules and regulations relating to the Plan; and

               (xvi) make all other determinations necessary or advisable for the administration of the Plan.

          If the Committee determines to issue a NSO, it shall take whatever actions it deems necessary,
under Section 422 of the Code and the regulations promulgated thereunder, to ensure that such
Option is not treated as an ISO. The interpretation and construction by the Committee of any
provisions of the Plan or of any Stock Right granted under it shall be final unless otherwise
determined by the Board. The Committee may from time to time adopt such rules and regulations for
carrying out the Plan as it may deem best. No member of the Board or the Committee shall be liable
for any action or determination made in good faith with respect to the Plan or any Stock Right
granted under it.

          (c) The Committee may select one of its members as its chairman, and shall hold meetings at
such times and places as it may determine. Acts by a majority of the Committee, approved in person
at a meeting or in writing, shall be the valid acts of the Committee. All references in this Plan
to the Committee shall mean the Board if no Committee has been appointed. From time to time the
Board may increase the size of the Committee and appoint additional members thereof, remove members
(with or without cause) and appoint new members in substitution therefor, fill vacancies however
caused, or remove all members thereof and thereafter directly administer the Plan.

          (d) Those provisions of the Plan that make express reference to Rule 16b-3 shall apply to the
Company only at such time as the Company’s Common Stock is registered under the Exchange Act, and
then only to such persons as are required to file reports under Section 16(a) of the Exchange Act
(a “Reporting Person”).

          (e) To the extent that Stock Rights are to be qualified as “performance-based” compensation
within the meaning of Section 162(m) of the Code, the Plan shall be administered

 

 

by a committee consisting of two or more “outside directors” as determined under Section 162(m) of
the Code.

     3. Eligible Employees and Others.

          (a) ISOs may be granted to any employee of the Company or any Related Corporation. Those
officers of the Company who are not employees may not be granted ISOs under the Plan. NSOs, Stock
Bonuses and Purchase Rights may be granted to any director, employee or consultant of the Company
or any Related Corporation. Granting of any Stock Right to any individual or entity shall neither
entitle that individual or entity to, nor disqualify him or her from, participation in any other
grant of Stock Rights.

          (b) Special Rule for Grant of Stock Rights to Reporting Persons. The selection of a
director or an officer who is a Reporting Person (as the terms “director” and “officer” are defined
for purposes of Rule 16b-3) as a recipient of a Stock Right, the timing of the Stock Right grant,
the exercise price, if any, of the Stock Right and the number of shares subject to the Stock Right
shall be determined either (i) by the Board, or (ii) by a committee of the Board that is composed
solely of two or more Non-Employee Directors having full authority to act in the matter. For the
purposes of the Plan, a director shall be deemed to be a “Non-Employee Director” only if such
person is defined as such under Rule 16b-3(b)(3), as interpreted from time to time.

     4. Stock. The stock subject to Stock Rights shall be authorized but unissued shares
of Common Stock of the Company, par value $0.001 per share, or such shares of the Company’s capital
stock into which such class of shares may be converted pursuant to any reorganization,
recapitalization, merger, consolidation or the like (the “Common Stock”), or shares of Common Stock
reacquired by the Company in any manner. The aggregate number of shares that may be issued
pursuant to the Plan is Three Million Nine Hundred and Six Thousand Two Hundred and Fifty
(3,906,250) shares of Common Stock, subject to adjustment as provided herein. Any such shares may
be issued as ISOs, NSOs or Stock Bonuses, or to persons or entities making purchases pursuant to
Purchase Rights, so long as the number of shares so issued does not exceed such aggregate number,
as adjusted. If any Option granted under the Plan shall expire or terminate for any reason without
having been exercised in full or shall cease for any reason to be exercisable in whole or in part,
or if the Company shall reacquire any shares issued pursuant to Stock Rights, the unpurchased
shares subject to such Options and any shares so reacquired by the Company shall again be available
for grants of Stock Rights under the Plan.

     5. Granting of Stock Rights. Stock Rights may be granted under the Plan at any time
after the Effective Date, as set forth in Section 16, and prior to 10 years thereafter. The date
of grant of a Stock Right under the Plan will be the date specified by the Board or Committee at
the time it grants the Stock Right; provided, however, that such date shall not be prior to the
date on which the Board or Committee acts. The Board or Committee shall have the right, with the
consent of the optionee, to convert an ISO granted under the Plan to an NSO pursuant to Section 17
hereof.

 

 

     6. Minimum Price; ISO Limitations.

          (a) The price per share specified in the agreement relating to each NSO, Stock Bonus or
Purchase Right granted under the Plan shall be established by the Board or Committee, taking into
account any noncash consideration to be received by the Company from the recipient of Stock Rights;
provided that such price per share shall not be less than the fair market value of the Common
Stock on the date of grant.

          (b) The price per share specified in the agreement relating to each ISO granted under the Plan
shall not be less than the fair market value per share of Common Stock on the date of such grant.
In the case of an ISO to be granted to an employee owning stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company or any Related Corporation, the
price per share specified in the agreement relating to such ISO shall not be less than 110% of the
fair market value per share of Common Stock on the date of the grant.

          (c) To the extent that the aggregate fair market value (determined at the time an ISO is
granted) of Common Stock for which ISOs granted to any employee are exercisable for the first time
by such employee during any calendar year (under all stock option plans of the Company and any
Related Corporation) exceeds $100,000; or such higher value as permitted under Code Section 422 at
the time of determination, such Options will be treated as NSOs, provided that this Section shall
have no force or effect to the extent that its inclusion in the Plan is not necessary for Options
issued as ISOs to qualify as ISOs pursuant to Section 422 of the Code. The rule of this Section
6(c) shall be applied by taking Options in the order in which they were granted.

          (d) If, at the time a Stock Right is granted under the Plan, the Company’s Common Stock is
publicly traded, “fair market value” shall be determined as of the last business day for which the
prices or quotes discussed in this sentence are available prior to the time such a Stock Right is
granted and shall mean:

               (i) if the Common Stock is then traded on a national securities exchange; or on the Nasdaq
National Market (the “NASDAQ/NMS”) or the Nasdaq SmallCap Market, the closing sale price for such
stock (or the closing bid, if no sales were reported as quoted on such exchange or market); or

               (ii) the closing bid price or average of bid prices last quoted on that date by an established
quotation service, if the Common Stock is not reported on National Securities Exchange, the
NASDAQ/NMS or the Nasdaq SmallCap Market.

          However, if the Common Stock is not publicly traded at the time a Stock Right is granted under
the Plan, “fair market value” shall be deemed to be the fair value of the Common Stock as
determined by the Board or Committee after taking into consideration all factors that it deems
appropriate.

 

 

     7. Option Duration. Subject to earlier termination as provided in Sections 9, 10 and
13, each Option shall expire on the date specified by the Board or Committee, but not more than:

          (a) 10 years from the date of grant in the case of NSOs;

          (b) 10 years from the date of grant in the case of ISOs generally; and

          (c) 5 years from the date of grant in the case of ISOs granted to an employee owning stock
possessing more than 10% of the total combined voting power of all classes of stock of the Company
or any Related Corporation.

          Subject to earlier termination as provided in Sections 9, 10 and 13, the term of each ISO
shall be the term set forth in the original instrument granting such ISO, except with respect to
any part of such ISO that is converted into an NSO pursuant to Section 17.

     8. Exercise of Options. Subject to the provisions of Section 9 through Section 12 of
the Plan, each Option granted under the Plan shall be exercisable as follows:

          (a) the Option shall either be fully exercisable on the date of grant or shall become
exercisable thereafter in such installments as the Board or Committee may specify;

          (b) once an installment becomes exercisable it shall remain exercisable until expiration or
termination of the Option, unless otherwise specified by the Board or Committee;

          (c) each Option or installment may be exercised at any time or from time to time, in whole or
in part, for up to the total number of shares with respect to which it is then exercisable; and

          (d) the Board or Committee shall have the right to accelerate the date of exercise of any
installment of any Option, provided that the Board or Committee shall not accelerate the exercise
date of any installment of any ISO granted to any employee (and not previously converted into an
NSO pursuant to Section 17) without the prior consent of such employee if such acceleration would
violate the annual vesting limitation contained in Section 422 of the Code, as described in Section
6(c).

     9. Termination of Employment. If a grantee ceases to be employed by the Company and
all Related Corporations, other than by reason of death or disability as defined in Section 10 or
by reason of a termination “For Cause” as defined in this Section 9, unless otherwise specified in
the instrument granting such Stock Right, the grantee shall have the continued right to exercise
any Stock Right held by him or her, to the extent of the number of shares with respect to which he
or she could have exercised it on the date of termination until the Stock Right’s specified
expiration date; provided, however, in the event the grantee exercises any ISO after the date that
is three months following the date of termination of employment, such ISO will automatically be
converted into an NSO subject to the terms of the Plan. Employment shall be considered as
continuing uninterrupted during any bona fide leave of absence (such as those attributable to

 

 

illness, military obligations or governmental service) provided that the period of such leave does
not exceed 90 days or, if longer, any period during which such grantee’s right to reemployment with
the Company is guaranteed by statute or by contract. A bona fide leave of absence with the written
approval of the Company shall not be considered an interruption of employment under the Plan,
provided that such written approval contractually obligates the Company or any Related Corporation
to continue the employment of the grantee after the approved period of absence; provided that the
foregoing approval requirement shall not apply to a leave of absence guaranteed by statute or
contract. ISOs granted under the Plan shall not be affected by any change of employment within or
among the Company and Related Corporations, so long as the optionee continues to be an employee of
the Company or any Related Corporation.

For purposes of this Plan, a change in status from employee to a consultant, or from a consultant
to employee, will not constitute a termination of employment, provided that a change in status from
an employee to consultant may cause an ISO to become an NSO under the Code.

     In the event of a termination “For Cause,” the right of a grantee to exercise a Stock Right
shall terminate as of the date of termination. For purposes of this Plan, “For Cause” shall mean
(i) “Cause” as defined in any employment or other agreement to which the applicable grantee is a
party, or (ii) if there is no such agreement or if it does not define Cause: (A) conviction of the
grantee for committing a felony under federal law or the law of the state in which such action
occurred, (B) dishonesty in the course of fulfilling the grantee’s employment duties, (C) willful
and deliberate failure on the part of the grantee to perform his or her employment duties in any
material respect, or (D) such other events as shall be determined by the Committee. The Committee
shall, unless otherwise provided in an employment or other agreement to which the applicable
grantee is a party, have the sole discretion to determine whether “Cause” exists, and its
determination shall be final.

     NOTHING IN THE PLAN SHALL BE DEEMED TO GIVE ANY GRANTEE OF ANY STOCK RIGHT THE RIGHT TO BE
RETAINED IN EMPLOYMENT OR OTHER SERVICE BY THE COMPANY OR ANY RELATED CORPORATION FOR ANY PERIOD OF
TIME OR TO AFFECT THE AT-WILL NATURE OF ANY EMPLOYEE’S EMPLOYMENT.

     10. Death; Disability.

          (a) If a grantee ceases to be employed by the Company and all Related Corporations by reason
of death, or if a grantee dies within three months of the date his or her employment or other
affiliation with the Company has been terminated, any Stock Right held by him or her may be
exercised to the extent of the number of shares with respect to which he or she could have
exercised said Stock Right on the date of death, by his or her estate, personal representative or
beneficiary who has acquired the Stock Right by will or by the laws of descent and distribution
(the “Successor Grantee”), unless otherwise specified in the instrument granting such Stock Right,
prior to the earlier of (i) one year after the date of termination or (ii) the Stock Right’s
specified expiration date; provided, however, that a Successor Grantee shall be entitled to ISO
treatment under Section 421 of the Code only if the deceased optionee would have been entitled to
like treatment had he or she exercised such Option on the date of his or her death; provided
further in the event the Successor Grantee exercises an ISO after the date that is one

 

 

year following the date of termination by reason of death, such ISO will automatically be converted
into a NSO subject to the terms of the Plan.

          (b) If a grantee ceases to be employed by the Company and all Related Corporations by reason
of disability, he or she shall continue to have the right to exercise any Stock Right held by him
or her on the date of termination until, unless otherwise specified in the instrument granting such
Stock Right, the earlier of (i) one year after the date of termination or (ii) the Stock Right’s
specified expiration date; provided, however, in the event the grantee exercises an ISO after the
date that is one year following the date of termination by reason of disability, such ISO will
automatically be converted into a NSO subject to the terms of the Plan. For the purposes of the
Plan, the term “disability” shall mean “permanent and total disability” as defined in Section
22(e)(3) of the Code.

          (c) The provisions of subsections (a) and (b) of this Section 10 regarding the exercise period
of a Stock Right may be waived, extended or further limited, in the discretion of the Board or
Committee, in an instrument granting a Stock Right that is not an ISO.

     11. Transferability and Assignability of Stock Rights. No Stock Right granted under
this Plan shall be assignable or otherwise transferable by the grantee except by will or by the
laws of descent and distribution. An ISO may be exercised during the lifetime of the optionee only
by the optionee.

     12. Terms and Conditions of Stock Rights. Stock Rights shall be evidenced by
instruments (which need not be identical) in such forms as the Board or Committee may from time to
time approve. Such instruments shall conform to the terms and conditions set forth in Sections 6
through 11 hereof and may contain such other provisions as the Board or Committee deems advisable
that are not inconsistent with the Plan, including restrictions (or other conditions deemed by the
Board or Committee to be in the best interests of the Company) applicable to the exercise of
Options or to shares of Common Stock issuable upon exercise of Options. In granting any NSO, the
Board or Committee may specify that such NSO shall be subject to the restrictions set forth herein
with respect to ISOs, or to such other termination and cancellation provisions as the Board or
Committee may determine. The Board or Committee may from time to time confer authority and
responsibility on one or more of its own members and/or one or more officers of the Company to
execute and deliver such instruments. The proper officers of the Company are authorized and
directed to take any and all action necessary or advisable from time to time to carry out the terms
of such instruments.

     13. Adjustments. Upon the occurrence of any of the following events, the rights of a
recipient of a Stock Right granted hereunder shall be adjusted as hereinafter provided, unless
otherwise provided in the written agreement between the recipient and the Company relating to such
Stock Right.

          (a) In the event of any change in corporate capitalization (including, but not limited to, a
change in the number of shares of Common Stock outstanding), such as a stock dividend, stock split,
reverse stock split, share combination, recapitalization, merger,

 

 

consolidation, acquisition of property or shares, separation, spinoff, reorganization, stock rights
offering, liquidation, disaffiliation of a Related Corporation, or similar event of or by the
Company, the Committee or Board may in its discretion make such substitution or adjustments as it
deems appropriate and equitable under the Plan. Adjustments pursuant to this Section 13(a) may
include, without limitation, (i) adjustments to (A) the aggregate number and kind of shares
reserved for issuance and delivery under the Plan; (B) the various maximum limitations upon certain
types of Stock Rights and upon the grants to individuals of certain types of Stock Rights; (C) the
number and kind of shares subject to outstanding Stock Rights; and (D) the exercise price of
outstanding Stock Rights; (ii) the cancellation of outstanding Stock Rights in exchange for
payments of cash, property or a combination thereof having an aggregate value equal to the value of
such Stock Rights, (iii) the substitution of other property (including, without limitation, other
securities of the Company and securities of entities other than the Company) for the shares of
capital stock subject to outstanding Stock Rights, and (iv) in connection with any disaffiliation
of a Related Corporation, arranging for the assumption, or replacement with new awards based on
other property (including, without limitation, other securities of the Company and securities of
entities other than the Company) for the shares of capital stock covered by outstanding Stock
Rights based on other securities or other property or cash, by the affected Related Corporation or
division by the entity that controls such Related Corporation or division following such
disaffiliation (as well as any corresponding adjustments to Stock Rights that remain based upon
Company securities).

          (b) Except as expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares subject to Stock
Right. No adjustments shall be made for dividends paid in cash or in property other than Common
Stock of the Company.

          (c) No fractional shares shall be issued under the Plan and any optionee who would otherwise
be entitled to receive a fraction of a share upon exercise of a Stock Right shall receive from the
Company cash in lieu of such fractional shares in an amount equal to the fair market value of such
fractional shares, as determined in the sole discretion of the Board or Committee.

          (d) Upon the happening of any of the foregoing events described in subsection (a) above, the
class and aggregate number of shares set forth in Section 4 hereof that are subject to Stock Rights
that previously have been or subsequently may be granted under the Plan shall also be appropriately
adjusted to reflect the events described. The Board or Committee or the Successor Board shall
determine the specific adjustments to be made under this Section 13 and, subject to Section 2, its
determination shall be conclusive.

     14. Means of Exercising Stock Rights. Except as otherwise provided in this Plan or
the instrument evidencing the Stock Right, a Stock Right (or any part or installment thereof) shall
be exercised by giving written notice to the Company at its principal office address to the
attention of its President. Such notice shall identify the Stock Right being exercised and specify
the number of shares as to which such Stock Right is being exercised, accompanied by full

 

 

payment of the exercise price therefor, if any, payable as follows (a) in United States dollars in
cash or by check, (b) at the discretion of the Board or Committee, through the delivery of
already-owned shares of Common Stock having a fair market value equal as of the date of the
exercise to the cash exercise price of the Stock Right and, in the case of such already-owned
shares of Common Stock, having been owned by the participant for more than six months from the date
of surrender, or (c) at the discretion of the Board or Committee, by delivery of the grantee’s
personal recourse note bearing interest payable not less than annually at a market rate that is no
less than 100% of the lowest applicable Federal rate, as defined in Section 1274(d) of the Code,
(d) at the discretion of the Board or Committee, through the surrender of shares of Common Stock
then issuable upon exercise of the Stock Right having a fair market value on the date of exercise
equal to the aggregate exercise price of the Stock Right, (e) at the discretion of the Board or
Committee, delivery of a notice that the grantee has placed a market sell order with a broker with
respect to shares of Common Stock then issuable upon exercise of the Stock Right and that the
broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company
in satisfaction of the Stock Right Exercise Price, provided that payment of such proceeds is then
made to the Company upon settlement of the sale or (f) at the discretion of the Board or Committee,
by any combination of (a), (b), (c), (d), and (e) or such other consideration and method of payment
for the issuance of shares to the extent permitted by applicable law or the Plan. If the Board or
Committee exercises its discretion to permit payment of the exercise price of an ISO by means of
the methods set forth in clauses (b), (c) or (d) of the preceding sentence, such discretion shall
be exercised in writing at the time of the grant of the ISO in question and such exercise shall
also be governed by any terms set forth in the written agreement evidencing the grant of the Stock
Right. The holder of a Stock Right shall not have the rights of a stockholder with respect to the
shares covered by the Stock Right until the date of issuance of a stock certificate for such
shares. Except as expressly provided above in Section 13 with respect to changes in capitalization
and stock dividends, no adjustment shall be made for dividends or similar rights for which the
record date is before the date such stock certificate is issued.

     15. Surrender of Stock Rights for Cash or Stock. The Board or Committee may, in its
sole and absolute discretion and subject to such terms and conditions as it deems appropriate,
accept the surrender by an optionee or grantee of a Stock Right granted to him under the Plan and
authorize payment in consideration therefor of an amount equal to the difference between the
purchase price payable for the shares of Common Stock under the instrument granting the Option and
the fair market value of the shares subject to the Stock Right (determined as of the date of such
surrender of the Stock Right). Such payment shall be made in shares of Common Stock valued at fair
market value on the date of such surrender, or in cash, or partly in such shares of Common Stock
and partly in cash as the Board or Committee shall determine. The surrender shall be permitted
only if the Board or Committee determines that such surrender is consistent with the purpose set
forth in Section 1, and only to the extent that the Stock Right is exercisable under Section 8 on
the date of surrender. In no event shall an optionee or grantee surrender his Stock Right under
this Section if the fair market value of the shares on the date of such surrender is less than the
purchase price payable for the shares of Common Stock subject to the Stock Right. Any ISO
surrendered pursuant to the provisions of this Section 15 shall be deemed to have been converted
into a NSO immediately prior to such surrender.

 

 

16. Term and Amendment of Plan. This Plan was adopted by the Board on
March 23, 2004 (the “Effective Date”), subject (with respect to the validation of ISOs granted
under the Plan) to approval of the Plan by the stockholders of the Company. The Plan will be
approved by the stockholders of the Company within one year of the Effective Date. The Plan shall
expire 10 years after the Effective Date (except as to Stock Rights outstanding on that date).
Subject to the provisions of Section 5 above, Stock Rights may be granted under the Plan prior to
the date of stockholder approval of the Plan. The Board may terminate or amend the Plan in any
respect at any time, except that without the approval of the stockholders obtained within 12 months
before or after the Board adopts a resolution authorizing any of the following actions:

          (a) the total number of shares that may be issued under the Plan may not be increased (except
by adjustment pursuant to Section 13);

          (b) the provisions of Section 3 regarding eligibility for grants of ISOs may not be modified;

          (c) the provisions of Section 6(b) regarding the exercise price at which shares may be offered
pursuant to ISOs may not be modified (except by adjustment pursuant to Section 13); and

          (d) the expiration date of the Plan may not be extended.

     Except as provided in Section 13(a) and the fifth sentence of this Section 16, in no event may
action of the Board or stockholders adversely alter or impair the rights of a grantee, without his
or her consent, under any Stock Right previously granted.

     17. Conversion of ISOs into NSOs; Termination of ISOs. The Board or Committee, with
the consent of any optionee, may in its discretion take such actions as may be necessary to convert
an optionee’s ISOs (or any installments or portions of installments thereof) that have not been
exercised on the date of conversion into NSOs at any time prior to the expiration of such ISOs.
These actions may include, but not be limited to, accelerating the exercisability, extending the
exercise period or reducing the exercise price of the appropriate installments of optionee’s
Options. At the time of such conversion, the Board or Committee (with the consent of the optionee)
may impose these conditions on the exercise of the resulting NSOs as the Board or Committee in its
discretion may determine, provided that the conditions shall not be inconsistent with the Plan.
Nothing in the Plan shall be deemed to give any optionee the right to have such optionee’s ISOs
converted into NSOs, and no conversion shall occur until and unless the Board or Committee takes
appropriate action. The Board or Committee, with the consent of the optionee, may also terminate
any portion of any ISO that has not been exercised at the time of termination.

     18. Governmental Regulation. The Company’s obligation to sell and deliver shares of
the Common Stock under the Plan is subject to the approval of any governmental authority required
in connection with the authorization, issuance or sale of such shares.

 

 

     19. Withholding of Additional Income Taxes.

          (a) Upon the exercise of an NSO, or the grant of a Stock Bonus or Purchase Right for less than
the fair market value of the Common Stock, the making of a Disqualifying Disposition (as defined in
Section 20), the vesting of restricted Common Stock acquired on the exercise of a Stock Right
hereunder or the surrender of an Option pursuant to Section 15, the Company, in accordance with
Section 3402(a) of the Code and any applicable state statute or regulation, may require the
optionee, Stock Bonus recipient or purchaser to pay to the Company additional withholding taxes in
respect of the amount that is considered compensation includable in such person’s gross income.
With respect to (a) the exercise of an Option, (b) the grant of a Stock Bonus, (c) the grant of a
Purchase Right of Common Stock for less than its fair market value, (d) the vesting of restricted
Common Stock acquired by exercising a Stock Right, or (e) the acceptance of a surrender of an
Option, the Committee in its discretion may condition such event on the payment by the optionee,
Stock Bonus recipient or purchaser of any such additional withholding taxes.

          (b) At the sole and absolute discretion of the Committee, the holder of Stock Rights may pay
all or any part of the total estimated federal and state income tax liability arising out of the
exercise or receipt of such Stock Rights, the making of a Disqualifying Disposition, or the vesting
of restricted Common Stock acquired on the exercise of a Stock Right hereunder (each of the
foregoing, a “Tax Event”) by tendering already-owned shares of Common Stock or (except in the case
of a Disqualifying Disposition) by directing the Company to withhold shares of Common Stock
otherwise to be transferred to the holder of such Stock Rights as a result of the exercise or
receipt thereof in an amount equal to the estimated federal and state income tax liability arising
out of such event, provided that no more shares may be withheld than are necessary to satisfy the
holder’s actual minimum withholding obligation with respect to the exercise of Stock Rights. In
such event, the holder of Stock Rights must, however, notify the Committee of his or her desire to
pay all or any part of the total estimated federal and state income tax liability arising out of a
Tax Event by tendering already-owned shares of Common Stock or having shares of Common Stock
withheld prior to the date that the amount of federal or state income tax to be withheld is to be
determined. For purposes of this Section 19(b), shares of Common Stock shall be valued at their
fair market value on the date that the amount of the tax withholdings is to be determined.

     20. Notice to Company of Disqualifying Disposition. Each employee who receives an ISO
must agree to notify the Company in writing immediately after the employee makes a Disqualifying
Disposition (as defined below) of any Common Stock acquired pursuant to the exercise of an ISO. A
“Disqualifying Disposition” is any disposition (including any sale) of such Common Stock before
either (a) two years after the date the employee was granted the ISO, or (b) one year after the
date the employee acquired Common Stock by exercising the ISO. If the employee has died before
such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition
can occur thereafter.

     21. Governing Law; Construction. The validity and construction of the Plan and the
instruments evidencing Stock Rights shall be governed by the laws of the State of Delaware. In

 

 

construing this Plan, the singular shall include the plural and the masculine gender shall include
the feminine and neuter, unless the context otherwise requires.

     22. Lock-up Agreement. Each recipient of securities hereunder agrees, if requested by
the Board or Committee, in connection with the registration with the United States Securities and
Exchange Commission under the Securities Act of 1933, as amended, of the public sale of the
Company’s Common Stock, not to sell, make any short sale of, loan, grant any option for the
purchase of or otherwise dispose of any securities of the Company (other than those included in the
registration) without the prior written consent of the Company or such underwriters, as the case
may be, for such period of time (not to exceed 180 days) from the effective date of such
registration as the Company or the underwriters, as the case may be, shall specify. Each such
recipient agrees that the Company may instruct its transfer agent to place stop-transfer notations
in its records to enforce this Section 22. Each such recipient agrees to execute a form of
agreement reflecting the foregoing restrictions as requested by the underwriters managing such
offering.

 

 

BLACKBAUD, INC.

2004 STOCK PLAN

NOTICE OF STOCK OPTION GRANT

____________________________

(Optionee and address)

____________________________

____________________________

 

 

____________________________

Grant Number

     You have been granted an option to purchase Common Stock of Blackbaud, Inc. (the
“Company”), as follows:

	 	 	 
	Date of Grant
	 	__________________

	 
	 	 

	Vesting Commencement Date
	 	__________________

	 
	 	 

	Exercise Price per Share
	 	__________________

	 
	 	 

	Total Number of Shares Granted
	 	__________________

	 
	 	 

	Total Exercise Price
	 	__________________

	 
	 	 

	Type of Option:
	 	o Incentive Stock Option

o Nonstatutory Stock Option

	 
	 	 

	Term/Expiration Date:
	 	10 Years/___________

	 
	 	 

	Vesting Schedule:
	 	Subject to accelerated vesting as set forth in
the Plan or in the Stock Option Agreement, this
Option may be exercised, in whole or in part, in
accordance with the following schedule: one
fourth of the shares subject to the Option shall
vest on the first, second, third and fourth
anniversary of the Vesting Commencement Date;
provided that such optionee remains an employee
of, or consultant to, the Company as of each such
vesting date.

	 
	 	 

	Termination Period:
	 	Option may be exercised for up to 90 days after
termination of employment or consulting
relationship except as set out in Sections 7 and
8 of the Stock Option Agreement (but in no event
later than the Expiration Date); provided that
terminations “For Cause” are governed by Section
9 of the Plan, which provides for immediate
termination of the Option upon such termination
“For Cause.”

 

 

     By your signature and the signature of the Company’s representative below, you and the
Company agree that this option is granted under and governed by the terms and conditions of the
Blackbaud, Inc. 2004 Stock Plan (the “Plan”) and the Stock Option Agreement, all of which are
attached and made a part of this document.

Dated: _____________

	 	 	 
	OPTIONEE:

	 	BLACKBAUD, INC.
	 
	 

	 	By:
	 

	 	 
	 
	 	 
	 

	 	Name:
	 

	 	 
	Print Name
	 	 
	 

	 	Title:
	 

	 	 

 

 

BLACKBAUD, INC.

STOCK OPTION AGREEMENT

     1. Grant of Option. Blackbaud, Inc., a Delaware corporation (the “Company”), hereby
grants to the Optionee named in the Notice of Grant (the “Optionee”), an option (the “Option”) to
purchase a total number of shares of Common Stock (the “Shares”) set forth in the Notice of Grant,
at the exercise price per share set forth in the Notice of Grant (the “Exercise Price”) subject to
the terms, definitions and provisions of the Blackbaud, Inc. 2004 Stock Plan (the “Plan”) adopted
by the Company, which is incorporated herein by reference. Unless otherwise defined herein, the
terms defined in the Plan shall have the same defined meanings in this Option.

          If designated an Incentive Stock Option, this Option is intended to qualify as an Incentive
Stock Option as defined in Section 422 of the Code, or any successor provision.

     2. Exercise of Option. This Option shall be exercisable during its term in accordance
with the Vesting Schedule set out in the Notice of Grant and with the provisions of Section 8 of
the Plan as follows:

          (a) Right to Exercise.

               (i) This Option may not be exercised for a fraction of a share.

               (ii) In the event of Optionee’s death, disability or other termination of employment, the
exercisability of the Option is governed by Sections 6, 7 and 8 below, subject to the limitation
contained in subsection 2(a)(iii).

               (iii) In no event may this Option be exercised after the date of expiration of the term of
this Option as set forth in the Notice of Grant.

          (b) Method of Exercise. This Option shall be exercisable by written notice (in the
form attached hereto as Exhibit A) which shall state the election to exercise the Option, the
number of Shares in respect of which the Option is being exercised, and such other representations
and agreements as to the holder’s investment intent with respect to such shares of Common Stock as
may be required by the Company pursuant to the provisions of the Plan. Such written notice shall
be signed by the Optionee and shall be delivered in person or by certified mail to the Secretary of
the Company. The written notice shall be accompanied by payment of the Exercise Price. This
Option shall be deemed to be exercised upon receipt by the Company of such written notice
accompanied by the Exercise Price.

          No Shares will be issued pursuant to the exercise of an Option unless such issuance and such
exercise shall comply with all relevant provisions of law and the requirements of any stock
exchange upon which the Shares may then be listed. Assuming such compliance,

 

 

for income tax purposes the Shares shall be considered transferred to the Optionee on the date on
which the Option is exercised with respect to such Shares.

     3. Optionee’s Representations. In the event the Shares purchasable pursuant to the
exercise of this Option have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), at the time this Option is exercised, Optionee shall, if required by the
Company, concurrently with the exercise of all or any portion of this Option, deliver to the
Company an Investment Representation Statement in the form attached hereto as Exhibit B.

     4. Method of Payment. Payment of the Exercise Price shall be by any of the following,
or a combination thereof, at the election of the Optionee:

          a. cash;

          b. check; or

          c. at the discretion of the Board or Committee, any other method permitted by the
Plan.

     5. Restrictions on Exercise. This Option may not be exercised until such time as the
Plan and the Shares covered by this Option have been approved by the stockholders of the Company,
or if the issuance of such Shares upon such exercise or the method of payment of consideration for
such shares would constitute a violation of any applicable federal or state securities or other law
or regulation, including any rule under Part 207 of Title 12 of the Code of Federal Regulations
(“Regulation G”) as promulgated by the Federal Reserve Board. As a condition to the exercise of
this Option, the Company may require Optionee to make any representation and warranty to the
Company as may be required by any applicable law or regulation.

     6. Termination of Relationship. In the event of termination of Optionee’s employment
or consulting relationship with the Company, Optionee may, to the extent otherwise so entitled at
the date of such termination (the “Termination Date”), exercise this Option during the Termination
Period set out in the Notice of Grant. To the extent that Optionee was not entitled to exercise
this Option at the date of such termination, or if Optionee does not exercise this Option within
the time specified herein, the Option shall terminate.

     7. Disability of Optionee. Notwithstanding the provisions of Section 6 above, in the
event of termination of Optionee’s consulting or employment relationship or as a result of his
total and permanent disability (as defined in Section 22(e)(3) of the Code or any successor
provision), Optionee may, but only within twelve (12) months from the date of termination of
employment or consulting relationship (but in no event later than the date of expiration of the
term of this Option as set forth in Section 10 below), exercise this Option to the extent Optionee
was entitled to exercise it at the date of such termination. To the extent that Optionee was not
entitled to exercise the Option at the date of termination, or if Optionee does not exercise such

 

 

Option (which Optionee was entitled to exercise) within the time specified herein, the Option shall
terminate.

     8. Death of Optionee. In the event of the death of Optionee during the term of this
Option and, with respect to a Consultant, during such Consultant’s continuing consulting
relationship with the Company or within 90 days of termination of Consultant’s relationship with
the Company and, with respect to an employee, during such employee’s employment relationship with
the Company or within 90 days of termination of such employee’s relationship with the Company, the
Option may be exercised, at any time within twelve (12) months following the date of termination
(but in no event later than the date of expiration of the term of this Option as set forth in
Section 10 below), by Optionee’s estate or by a person who acquired the right to exercise the
Option by bequest or inheritance, but only to the extent of the right to exercise that Optionee was
entitled to at the date of death.

     9. Nontransferability of Option. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by Optionee. The terms of this Option shall be binding upon the
executors, administrators, heirs, successors and assigns of the Optionee.

     10. Term of Option. This Option may be exercised only within the term set out in the
Notice of Grant and the Plan, and may be exercised during such term only in accordance with the
Plan and the terms of this Option. The limitations set out in Section 7 of the Plan regarding
Options designated as Incentive Stock Options and Options granted to more than ten percent (10%)
stockholders shall apply to this Option.

     11. Taxation Upon Exercise of Option. Optionee understands that, upon exercising a
Nonstatutory Stock Option, he or she will recognize income for tax purposes in an amount equal to
the excess of the then fair market value of the Shares over the exercise price. If the Optionee is
an employee, the Company will be required to withhold from Optionee’s compensation, or collect from
Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this
compensation income. Additionally, the Optionee may at some point be required to satisfy tax
withholding obligations with respect to the disqualifying disposition of an Incentive Stock Option.
The Optionee shall satisfy his or her tax withholding obligation arising upon the exercise of this
Option by one or some combination of the following methods: (i) by cash payment, or (ii) out of
Optionee’s current compensation, or (iii) if permitted by the Committee, in its discretion, by
surrendering to the Company Shares that (a) in the case of Shares previously acquired from the
Company, have been owned by the Optionee for more than six months on the date of surrender, and (b)
have a fair market value on the date of surrender equal to or greater than Optionee’s marginal tax
rate times the ordinary income recognized, or (iv) if permitted by the Committee, in its
discretion, and if the Option is designated as a Nonstatutory Stock Option by electing to have the
Company withhold from the Shares to be issued upon exercise of the Option that number of Shares
having a fair market value equal to the amount required to be withheld. For this purpose, the fair
market value of the Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined (the “Tax Date”).

 

 

     If the Optionee is subject to Section 16 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) (an “Insider”), any surrender of previously owned Shares to satisfy tax
withholding obligations arising upon exercise of this Option must comply with the applicable
provisions of Rule 16b-3 promulgated under the Exchange Act (“Rule 16b-3”) and shall be subject to
such additional conditions or restrictions as may be required thereunder to qualify for the maximum
exemption from Section 16 of the Exchange Act with respect to Plan transactions.

     All elections by an Optionee to have Shares withheld to satisfy tax-withholding obligations
shall be made in writing in a form acceptable to the Committee and shall be subject to the
following restrictions:

	 	(1)	 	the election must be made on or prior to the applicable Tax Date;
	 
	 	(2)	 	once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the election is made;
	 
	 	(3)	 	all elections shall be subject to the consent or disapproval of
the Committee;
	 
	 	(4)	 	if the Optionee is an Insider, the election must comply with
the applicable provisions of Rule 16b-3 and shall be subject to such additional
conditions or restrictions as may be required thereunder to qualify for the
maximum exemption from Section 16 of the Exchange Act with respect to Plan
transactions.

     12. Tax Consequences. Set forth below is a brief summary as of the date of this
Option of some of the federal tax consequences of exercise of this Option and disposition of the
Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE
SHARES.

          (a) Exercise of ISO. If this Option qualifies as an ISO, there will be no regular
federal income tax liability or state income tax liability upon the exercise of the Option,
although the excess, if any, of the fair market value of the Shares on the date of exercise over
the Exercise Price will be treated as an item of adjustment to the alternative minimum tax for
federal tax purposes in the year of exercise and may subject the Optionee to the alternative
minimum tax.

          (b) Exercise of Nonstatutory Stock Option. If this Option does not qualify as an ISO,
there may be a regular federal income tax liability and state income tax liability upon the
exercise of the Option. The Optionee will be treated as having received compensation income
(taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the
Shares on the date of exercise over the Exercise Price and the Company will qualify for a deduction
in the same amount, subject to the requirement that the compensation be reasonable. If

 

 

Optionee is an employee, the Company will be required to withhold from Optionee’s compensation or
collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage
of this compensation income at the time of exercise.

          (c) Disposition of Shares. In the case of an NSO, if Shares are held for at least one
year, any gain realized on disposition of the Shares will be treated as long-term capital gain for
federal and state income tax purposes. In the case of an ISO, if Shares transferred pursuant to
the Option are held for at least one year after exercise and are disposed of at least two years
after the Date of Grant, any gain realized on disposition of the Shares will also be treated as
long-term capital gain for federal and state income tax purposes. If Shares purchased under an ISO
are disposed of within one-year after exercise or within two years after the Date of Grant, any
gain realized on such disposition will be treated as compensation income (taxable at ordinary
income rates) in an amount equal to the excess of the lesser of (1) the fair market value of the
Shares on the date of exercise, or (2) the sale price of the Shares over the Exercise Price paid
for those shares. The Company will also be allowed a deduction equal to any such amount
recognized, subject to the requirement that the compensation be reasonable.

          (d) Notice of Disqualifying Disposition of ISO Shares. If the Option granted to
Optionee herein is an ISO, and if Optionee sells or otherwise disposes of any of the Shares
acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of
Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify
the Company in writing of such disposition. Optionee agrees that Optionee may be subject to income
tax withholding by the Company on the compensation income recognized by the Optionee from the early
disposition by payment in cash or out of the current earnings paid to the Optionee.

     13. Restrictive Legends and Stop-Transfer Orders.

          (a) Legends. Optionee understands and agrees that the Company shall cause the legends
set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s)
evidencing ownership of the Shares together with any other legends that may be required by state or
federal securities laws:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE
ACT OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER AS SET

 

 

FORTH IN THE ISSUER’S STOCK PLAN AND THE STOCK OPTION AGREEMENT RELATING TO
THESE SHARES, COPIES OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE
ISSUER. SUCH TRANSFER RESTRICTIONS ARE BINDING ON TRANSFEREES OF THESE
SHARES.

          (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with
the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions
to its transfer agent, if any, and that, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

          (c) Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay
dividends to any Optionee or other transferee to whom such Shares shall have been so transferred.

     14. Successors and Assigns. The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer herein set forth,
this Agreement shall be binding upon Optionee and his or her heirs, executors, administrators,
successors and assigns.

     15. Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by Optionee or by the Company forthwith to the Company’s Board of Directors or the
Committee 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 Optionee.

     16. Governing Law; Severability. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware excluding that body of law pertaining to
conflicts of law. Should any provision of this Agreement be determined by a court of law to be
illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain
enforceable.

     17. Notices. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery or upon deposit in the United States mail
by certified mail, with postage and fees prepaid, addressed to the other party at its address as
shown below beneath its signature, or to such other address as such party may designate in writing
from time to time to the other party.

     18. Further Instruments. The parties agree to execute such further instruments and to
take such further action as may be reasonably necessary to carry out the purposes and intent of
this Agreement.

 

 

     19. 2004 Stock Plan. Optionee acknowledges receipt of a copy of the Plan and
represents that optionee is familiar with the terms and provisions thereof, and hereby accepts this
Option subject to all of the terms and provisions thereof. Optionee has reviewed the Plan and this
Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing
this Option and fully understands all provisions of the Option. Optionee hereby agrees to accept
as binding, conclusive and final all decisions or interpretations of the Board or Committee upon
any questions arising under the Plan or this Option.

 

 

EXHIBIT A

BLACKBAUD, INC.

EXERCISE NOTICE

Blackbaud, Inc.

________________________

________________________

Attention: General Counsel

     1. Exercise
of Option. Effective as of today, __________________, ____________, the
undersigned (“Optionee”) hereby elects to exercise Optionee’s option to purchase __________________
shares of the Common Stock (the “Shares”) of Blackbaud, Inc. (the “Company”) under and pursuant to
the Company’s 2004 Stock Plan, as amended (the “Plan”) and the
o Incentive o Nonstatutory Stock Option Agreement dated __________________, ____________
 (the “Option
Agreement”). The purchase price for the Shares shall be $__________________ as required by the Option
Agreement. Optionee herewith delivers to the Company the full Exercise Price for the Shares.

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

     3. Rights as Stockholder. Until 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), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the optioned Shares, notwithstanding the exercise of the
Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the
Option is exercised. No adjustment will be made for a dividend or other right for which the record
date is prior to the date the stock certificate is issued, except as provided in Section 13 of the
Plan.

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

     5. Entire Agreement. The Plan and Notice of Grant/Option Agreement are incorporated
herein by reference. This Exercise Notice, the Plan and the Notice of Grant/Option Agreement and
any Investment Representation statement executed and delivered to Company by Optionee shall
constitute the entire agreement of the parties and supersede in their entirety all prior
undertakings and agreements of the Company and Optionee with respect to the subject matter hereof,
and is governed by Delaware law except for that body of law pertaining to conflict of laws.

 

 

	 	 	 
	Submitted by:

	 	Accepted by:
	 
	 	 
	OPTIONEE:

	 	BLACKBAUD, INC.
	 
	 

	 	By:
	 

	 	 
	 

	 	Name:
	 

	 	 
	 

	 	Title:
	 

	 	 
	 
	 	 
	Address:

	 	Address:
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

 

EXHIBIT B

[Form can be omitted if securities underlying option are registered under Securities Act]

INVESTMENT REPRESENTATION STATEMENT

	 	 	 	 	 
	OPTIONEE
	 	:
	 	 

	 	 	 	 	___________________

	 
	 	 	 	 

	COMPANY
	 	:
	 	Blackbaud, Inc.

	 
	 	 	 	 

	SECURITY
	 	:
	 	Common Stock

	 
	 	 	 	 

	AMOUNT
	 	:
	 	___________________ Shares

In connection with the purchase of the above-listed Securities, I, the Optionee, represent to the
Company the following.

     1. Optionee is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and knowledgeable decision
to acquire the securities. Optionee is purchasing the securities for investment for Optionee’s own
account only and not with a view to, or for resale in connection with, any “distribution” thereof
within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

     2. Optionee understands that the securities have not been registered under the Securities Act
in reliance upon a specific exemption therefrom, which exemption depends upon, among other things,
the bona fide nature of Optionee’s investment intent as expressed herein.

     3. Optionee further understands that the securities must be held indefinitely unless
subsequently registered under the Securities Act or unless an exemption from registration is
available. Moreover, Optionee understands that the Company is under no obligation to register the
securities. In addition, Optionee understands that the certificate evidencing the securities will
be imprinted with a legend that prohibits the transfer of the securities unless they are registered
or such registration is not required in the opinion of counsel for the Company.

     4. Optionee is familiar with the provisions of Rules 144, 144(k) and 701, promulgated under
the Securities Act, that permit limited public resale of “restricted securities” acquired, directly
or indirectly, from the issuer thereof (or from an affiliate of such issuer) in a nonpublic
offering, subject to the satisfaction of certain conditions.

     In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the securities exempt
under Rule 701 may be resold by the Optionee 90 days thereafter, subject to the satisfaction of
certain of the conditions specified by Rule 144, including: (a) the sale being made

 

 

through a broker in an unsolicited “broker’s transaction” or in transactions directly with a
market maker (as that term is defined under the Exchange Act); and (b) in the case of an affiliate,
the availability of certain public information about the Company, and the amount of securities
being sold during any three-month period not exceeding the limitations specified in Rule 144(e), if
applicable.

     If the purchase of the securities does not qualify under Rule 701 at the time of purchase,
then the securities may be resold by the Optionee in certain limited circumstances subject to the
provisions of Rule 144, which require: (a) the availability of certain public information about
the Company; (b) the resale occurring not less than one year after the party has purchased, and
made full payment (within the meaning of Rule 144) for, the securities to be sold; and (3) in the
case of an affiliate, or of a nonaffiliate who has held the securities less than two years, the
sale being made through a broker in an unsolicited “broker’s transaction” or in transactions
directly with a market maker (as that term is defined under the Exchange Act) and the amount of
securities being sold during any three-month period not exceeding the specified limitations.

     If all of the requirements of Rule 144 are not satisfied, Optionee may be able to sell the
securities without registration pursuant to the exemption contained in Rule 144(k), provided that
the resale occurs not less than two years after the party has purchased, and made full payment
(within the meaning of Rule 144) for, the securities.

     5. Optionee further understands that at the time Optionee wishes to sell the securities there
may be no public market upon which to make such a sale, and that, even if such a public market then
exists, the Company may not be satisfying the current public information requirements of Rules 144
or 701, and that, in such event, Optionee would be precluded from selling the securities under
Rules 144 or 701 even if the one-year minimum holding period had been satisfied; however, Optionee
may be able to sell the securities pursuant to the exemptions contained in Rule 144(k) if the
two-year holding period has been satisfied.

     6. Optionee further understands that in the event all of the applicable requirements of Rules
144, 144(k) or 701 are not satisfied, registration under the Securities Act or some registration
exemption will be required; and that, notwithstanding the fact that Rules 144, 144(k) and 701 are
not exclusive, the Staff of the SEC has expressed its opinion that persons proposing to sell
private placement securities other than in a registered offering and otherwise than pursuant to
Rules 144, 144(k) or 701 will have a substantial burden of proof in establishing that an exemption
from registration is available for such offers or sales, and that such persons and their brokers
who participate in such transactions do so at their own risk.

	 	 	 
	Date

	 	Signature of Optionee:
	 
	 	 
	______________________________

	 	__________________________

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