Document:

exv10w04

 

Exhibit 10.04

Notice of Grant of Stock

Options and Option Agreement

Interwoven, Inc.

ID: 94-3221352

803 — 11th Avenue

Sunnyvale, CA 94089

Employee Name

Option Number:

Plan:

ID:

Effective     
               
 , you have been granted a(n)         
            
[Incentive/Nonqualified] Stock Option to buy          
           
shares of
Interwoven, Inc. (the Company) stock at $       
             
per share.

The total option price of the shares granted is $                    .

Shares in each period will become fully vested on the date shown.

[Vesting may occur based on achievement, at the end of a period of time, of a specified goal
or specified goals based on such factors as: annual revenue, cash position, earnings per share,
operating cash flow, market share, new product releases, net income, operating income, return on
assets, return on equity, return on investment, software license bookings, EBITDA or other
financial measure, or any other performance-related goal as approved from time to time.]

By your signature and the Company’s signature below, you and the Company agree that these options
are granted under and governed by the terms and conditions of the Company’s Stock Option Plan as
amended and the Option Agreement, all of which are attached and made a part of this document.

	 	 	 
	Interwoven, Inc.

	 	Date
	 
	 	 
	Optionee Name

	 	Date

 

 

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

          1. Grant of Option. The Interwoven, Inc. (the “Company”) hereby grants to Optionee an
option (this “Option”) to purchase up to the total number of shares of Common Stock of the Company
set forth in the Notice of Grant (collectively, the “Shares”) at the exercise price set forth in
the Notice of Grant (the “Exercise Price”), subject to all of the terms and conditions of the
Notice of Grant, this Stock Option Agreement (the “Agreement”) and the 2000 Stock Incentive Plan
(the “Plan”). Capitalized terms not defined herein shall have the meaning ascribed to them in the
Plan.

          2. Vesting; Exercise Period.

               2.1 Vesting of Shares. The Option shall be exercisable as it vests, unless otherwise
indicated in the Notice of Grant. Subject to the terms and conditions of the Plan and the
Agreement, the Option shall vest and become exercisable as to portions of the Shares pursuant to
the vesting schedule specified in the Notice of Grant, provided that Optionee has continuously
provided services to the Company, or any Parent or Subsidiary of the Company, at all times during
the relevant month.

               2.2 Vesting of Options. Shares that are vested pursuant to the vesting schedule set
forth in the Notice of Grant are “Vested Shares.” Shares that are not vested pursuant to the
schedule set forth in the Notice of Grant are “Unvested Shares.”

               2.3 Expiration. The Option shall expire on the expiration date set forth in the
Notice of Grant, and must be exercised, if at all, on or before the earlier of the expiration date
of the Option or the date on which the Option is earlier terminated in accordance with the
provisions of Section 3 hereof.

          3. Termination.

               3.1 Termination for Any Reason Except Death, Disability or Cause. If Optionee is
Terminated for any reason except Optionee’s death, Disability or Cause, then the Option, to the
extent (and only to the extent) that it is vested in accordance with the schedule set forth in the
Notice of Grant on the Termination Date, may be exercised by Optionee no later than three (3)
months after the Termination Date, but in any event no later than the expiration date.

               3.2 Termination Because of Death or Disability. If Optionee is Terminated because of
death or Disability of Optionee (or the Optionee dies within three (3) months after Termination
other than for Cause or because of Disability), then the Option, to the extent that it is vested in
accordance with the schedule in the Notice of Grant on the Termination Date, may be exercised by
Optionee (or Optionee’s legal representative or authorized assignee)

2

 

Interwoven, Inc.

Stock Option Agreement

2000 Stock Incentive Plan

no later than twelve (12)months after the Termination Date, but in any event no later than the expiration date.

               3.3 Termination for Cause. If Optionee is Terminated for Cause, the Option will
expire on the Optionee’s date of Termination.

               3.4 No Obligation to Employ. Nothing in the Plan or this Agreement shall confer on
Optionee any right to continue in the employ of, or other relationship with, the Company or any
Parent or Subsidiary of the Company, or limit in any way the right of the Company or any Parent or
Subsidiary of the Company to terminate Optionee’s employment or other relationship at any time,
with or without Cause.

          4. Manner of Exercise.

               4.1 Stock Option Exercise Agreement. To exercise the Option, Optionee (or in the case
of exercise after Optionee’s death, Optionee’s executor, administrator, heir or legatee, as the
case may be) must deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by the Company from
time to time (the “Exercise Agreement”), which shall set forth, inter alia,
Optionee’s election to exercise the Option, the number of shares being purchased, any restrictions
imposed on the Shares and any representations, warranties and agreements regarding Optionee’s
investment intent and access to information as may be required by the Company to comply with
applicable securities laws. If someone other than Optionee exercises the Option, then such person
must submit documentation reasonably acceptable to the Company that such person has the right to
exercise the Option.

               4.2 Limitations on Exercise. The Option may not be exercised unless such exercise is
in compliance with all applicable federal and state securities laws, as they are in effect on the
date of exercise.

               4.3 Payment. The Exercise Agreement shall be accompanied by full payment of the
Exercise Price for the Shares being purchased in cash (by check), or where permitted by law:

	 	(a)	 	by cancellation of indebtedness of the Company to the Optionee;
	 
	 	(b)	 	by surrender of shares of the Company’s Common Stock that either: (1) have been
owned by Optionee for more than six (6) months and have been paid for within the meaning
of SEC Rule 144 (and, if such shares were purchased from the Company by use of a
promissory note, such note has been fully paid with respect to such shares); or (2) were
obtained by Optionee in the open public market; and (3) are clear of all liens,
claims, encumbrances or security interests;
	 
	 	(c)	 	by waiver of compensation due or accrued to Optionee for services rendered;
	 
	 	(d)	 	provided that a public market for the Company’s stock exists: (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member of the

3

 

Interwoven, Inc.

Stock Option Agreement

2000 Stock Incentive Plan

	 	 	 	National Association of Securities Dealers (an “NASD Dealer”) whereby Optionee
irrevocably elects to exercise this Option and to sell a portion of the Shares so
purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits
upon receipt of such Shares to forward the exercise price directly to the Company;
or (2) through a “margin” commitment from Optionee and an NASD Dealer whereby
Optionee irrevocably elects to exercise this Option and to pledge the Shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD
Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably
commits upon receipt of such Shares to forward the Exercise Price directly to the
Company; or
	 
	 	(e)	 	by any combination of the foregoing.

               4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of the Option,
Optionee must pay or provide for any applicable federal or state withholding obligations of the
Company. If the Committee permits, Optionee may provide for payment of withholding taxes upon
exercise of the Option by requesting that the Company retain Shares with a Fair Market Value equal
to the minimum amount of taxes required to be withheld. In such case, the Company shall issue the
net number of Shares to the Optionee by deducting the Shares retained from the Shares issuable upon
exercise.

               4.5 Issuance of Shares. Provided that the Exercise Agreement and payment are in form
and substance satisfactory to counsel for the Company, the Company shall issue the Shares
registered in the name of Optionee, Optionee’s authorized assignee, or Optionee’s legal
representative, and shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

          5. [INTENTIONALLY LEFT BLANK]

          6. Compliance with Laws and Regulations. The exercise of the Option and the issuance
and transfer of Shares shall be subject to compliance by the Company and Optionee with all
applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company’s Common Stock may be listed at the time of such
issuance or transfer. Optionee understands that the Company is under no obligation to register or
qualify the Shares with the SEC, any state securities commission or any stock exchange to effect
such compliance.

          7. Nontransferability of Option. Except as otherwise set forth in Section 11 of the
Plan, the Option may not be transferred in any manner other than by will or by the laws of descent
and distribution and may be exercised during the lifetime of Optionee only by Optionee. The terms
of the Option shall be binding upon the executors, administrators, successors and assigns of
Optionee.

          8. Tax Consequences. Set forth below is a brief summary as of the date the Board
adopted the Plan of some of the federal tax consequences of exercise of the Option and disposition
of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE
SUBJECT TO CHANGE. OPTIONEE SHOULD

4

 

Interwoven, Inc.

Stock Option Agreement

2000 Stock Incentive Plan

CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING
OF THE SHARES.

               8.1 Exercise of Nonqualified Stock Option. There may be a regular federal income tax
liability upon the exercise of the Option. 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. The Company may 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.

               8.2 Disposition of Shares. The following tax consequences may apply upon disposition
of the Shares.

                    a. Nonqualified Stock Options. If the Shares are held for more than twelve (12)
months after the date of the transfer of the Shares pursuant to the exercise of an nonqualified
stock option, any gain realized on disposition of the Shares will be treated as long-term capital
gain.

                    b. Withholding. The Company may be required to withhold from Participant’s
compensation or collect from the Participant and pay to the applicable taxing authorities an amount
equal to a percentage of the compensation income.

          9. Privileges of Stock Ownership. Optionee shall not have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to Optionee.

          10. Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by Optionee or the Company to the Committee for review. The resolution of such a
dispute by the Committee shall be final and binding on the Company and Optionee.

          11. Entire Agreement. The Plan is incorporated herein by reference. This Agreement,
the Notice of Grant, the Plan and the Exercise Agreement constitute the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof and supersede all
prior understandings and agreements with respect to such subject matter.

          12. Notices. Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company
at its principal corporate offices. Any notice required to be given or delivered to Optionee shall
be in writing and addressed to Optionee at the address indicated above or to such other address as
such party may designate in writing from time to time to the Company. All notices shall be deemed
to have been given or delivered upon: personal delivery; three (3) days after deposit in the
United States mail by certified or registered mail (return receipt requested);
one (1) business day after deposit with any return receipt express courier (prepaid); or one (1)
business day after transmission by facsimile.

          13. Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the successors

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Interwoven, Inc.

Stock Option Agreement

2000 Stock Incentive Plan

and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns.

          14. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to
choice of law or conflict of law.

6

 

EXHIBIT A

STOCK OPTION EXERCISE AGREEMENT

 

 

Exhibit A

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN (the “Plan”)

STOCK OPTION EXERCISE AGREEMENT

     I hereby elect to purchase the number of shares of Common Stock of Interwoven, Inc. (the
“Company”) as set forth below:

	 	 	 	 	 	 	 	 	 
	Optionee
	 	 	 	 	 	 	 	 
	 	 	 
	Social Security Number:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Type of Option:	 	[ ] Incentive Stock Option
	 	 	 	 	 	 	[ ] Nonqualified Stock Option

	 	 	 	 	 	 	 	 	 
	Number of Shares Purchased:	 	 	 	 	 	 
	 	 	 	 	 
	Purchase Price per Share:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Aggregate Purchase Price:
	 	 	 	 	 	 	 	 
	 	 	 
	Date of Option Agreement:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Exact Name of Title to Shares:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

1. Delivery of Purchase Price. Optionee hereby delivers to the Company the Aggregate
Purchase Price, to the extent permitted in the Stock Option Agreement (the “Option
Agreement”) and Notice of Grant as follows (check as applicable and complete):

	 	 	 
	[ ]

	 	in cash (by check) in the amount of $                                        , receipt
of which is acknowledged by the Company;
	 
	[ ]

	 	by cancellation of indebtedness of the Company to Optionee in the
amount of $                                        ;
	 
	[ ]

	 	by delivery of
                                         fully-paid,
nonassessable and vested shares of the Common Stock of the Company
owned by Optionee for at least six (6) months prior to the date
hereof (and which have been paid for within the meaning of SEC Rule
144), or obtained by Optionee in the open public market, and owned
free and clear of all liens, claims, encumbrances or security
interests, valued at the current Fair Market Value of
$                                        
per share;
	 
	[ ]

	 	by the waiver hereby of compensation due or accrued to Optionee for
services rendered in the amount of
$                                        ;
	 
	[ ]

	 	through a “same-day-sale” commitment, delivered herewith, from
Optionee and the NASD Dealer named therein, in the amount of
$                                        ; or
	 
	[ ]

	 	through a “margin” commitment, delivered herewith from Optionee and
the NASD Dealer named therein, in the amount of
$                                        .

2. Tax Consequences. 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 CONSULTANT(S) 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.

3. Entire Agreement. The Plan, Notice of Grant and Option Agreement are incorporated herein
by reference. This Exercise Agreement, the Plan, Notice of Grant and the Option Agreement
constitute the entire agreement and understanding of the parties and supersede in their
entirety all prior understandings and agreements of the Company and Optionee with respect to
the subject matter hereof, and are governed by California law except for that body of law
pertaining to choice of law or conflict of law.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature of Optionee

 

 

Spousal Consent

     I acknowledge that I have read the foregoing Stock Option Exercise Agreement (the “Agreement”)
and that I know its contents. I hereby consent to and approve all of the provisions of the
Agreement, and agree that the shares of the Common Stock of Interwoven, Inc. purchased thereunder
(the “Shares”) and any interest I may have in such Shares are subject to all the provisions of the
Agreement. I will take no action at any time to hinder operation of the Agreement on these Shares
or any interest I may have in or to them.

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	Date:
	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	Signature of Optionee’s Spouse	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	Spouse’s Name — Typed or Printed	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	Optionee’s Name — Typed or Printed	 	 	 	 	 	 

 

 

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN

REVISED STOCK OPTION AGREEMENT

(Non-Standard for Executives)

     For use only with Option number                      granted on                     

          1. Grant of Option. Interwoven, Inc. (the “Company”) hereby grants to Optionee an
option (this “Option”) to purchase up to the total number of shares of Common Stock of the Company
set forth in the Notice of Grant (collectively, the “Shares”) at the exercise price set forth in
the Notice of Grant (the “Exercise Price”), subject to all of the terms and conditions of the
Notice of Grant, this Stock Option Agreement (the “Agreement”) and the 2000 Stock Incentive Plan
(the “Plan”). If designated as an Incentive Stock Option in the Notice of Grant, the Option is
intended to qualify as an “incentive stock option” (“ISO”) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), to the extent permitted under Code Section
422. Capitalized terms not defined herein shall have the meaning ascribed to them in the Plan.

          2. Vesting; Exercise Period.

               2.1 Vesting of Shares. The Option shall be exercisable as it vests, unless otherwise
indicated in the Notice of Grant. Subject to the terms and conditions of the Plan and the
Agreement, the Option shall vest and become exercisable as to portions of the Shares pursuant to
the vesting schedule specified in the Notice of Grant, provided that Optionee has continuously
provided services to the Company, or any Parent or Subsidiary of the Company, at all times during
the relevant month. Notwithstanding the provisions of the preceding sentence, however, if there is
a Sale of the Company and Participant’s employment is terminated by the Company or its
successor without Cause in connection with the Sale of the Company, then upon such termination the
Option will become vested as to an additional number of Unvested Shares equal to fifty percent
(50%) of the Shares that were Unvested Shares at the closing of the Sale of the Company.

     For purposes of this vesting acceleration provisions, “Cause” means (i) willfully engaging in
gross misconduct that is materially and demonstrably injurious to the Company; (ii) willful act or
acts of dishonesty undertaken by Participant and intended to result in substantial gain or
personal enrichment for Participant at the expense of the Company; or (iii) willful and continued
failure to substantially perform Participant’s duties with the Company or its successor (other
than incapacity due to physical or mental illness); provided that the action or conduct described
in clause (iii) above will constitute “Cause” only if such failure continues after the Board of
Directors has provided Participant with a written demand for substantial performance setting forth
in detail the specify respects in which it believes Participant has willfully and not
substantially performed his duties thereof and a reasonable
opportunity (to be not less than 30 days) to cure the same. For such purpose, a termination by the Company without Cause includes a
termination of employment by Participant within 30 days following any of the following

 

 

events:
(x) the assignment of any duties to Participant inconsistent with, or reflecting a materially
adverse change in, Participant’s position, duties or responsibilities with the Company (or any
successor) without Participant’s concurrence; or (y) the relocation of the Company’s principal
executive offices, or relocating Participant’s principal place of business, in excess of fifty
(50) miles from the Company’s current executive offices located in Sunnyvale, California. For
purposes of the vesting acceleration provisions of paragraph (b), the term “Sale of the Company”
means (i) the sale or other disposition of all or substantially all of the assets of the Company,
or (ii) the acquisition of the Company by another entity by means of consolidation, corporate
reorganization or merger, or other transaction or series of related transactions in which more
than fifty percent (50%) of the outstanding voting power of the Company is transferred.

               2.2 Vesting of Options. Shares that are vested pursuant to the vesting schedule set
forth in the Notice of Grant are “Vested Shares.” Shares that are not vested pursuant to the
schedule set forth in the Notice of Grant are “Unvested Shares.”

               2.3 Expiration. The Option shall expire on the expiration date set forth in the
Notice of Grant, and must be exercised, if at all, on or before the earlier of the expiration date
of the Option or the date on which the Option is earlier terminated in accordance with the
provisions of Section 3 hereof.

          3. Termination.

               3.1 Termination for Any Reason Except Death, Disability or Cause. If Optionee is
Terminated for any reason except Optionee’s death, Disability or Cause, then the Option, to the
extent (and only to the extent) that it is vested in accordance with the schedule set forth in the
Notice of Grant on the Termination Date, may be exercised by Optionee no later than three (3)
months after the Termination Date, but in any event no later than the expiration date.

               3.2 Termination Because of Death or Disability. If Optionee is Terminated because of
death or Disability of Optionee (or the Optionee dies within three (3) months after Termination
other than for Cause or because of Disability), then the Option, to the extent that it is vested in
accordance with the schedule in the Notice of Grant on the Termination Date, may be exercised by
Optionee (or Optionee’s legal representative or authorized assignee) no later than twelve (12)
months after the Termination Date, but in any event no later than the expiration date. Any
exercise after three months after the Termination Date when the Termination is for any reason other
than Optionee’s death or disability, within the meaning of Code Section 22(e)(3), shall be deemed
to be the exercise of a nonqualified stock option.

               3.3 Termination for Cause. If Optionee is Terminated for Cause, the Option will
expire on the Optionee’s date of Termination.

               3.4 No Obligation to Employ. Nothing in the Plan or this Agreement shall confer on
Optionee any right to continue in the employ of, or other relationship with, the Company or any
Parent or Subsidiary of the Company, or limit in any way the right of the Company or any Parent or
Subsidiary of the Company to terminate Optionee’s employment or other relationship at any time,
with or without Cause.

 

 

          4. Manner of Exercise.

               4.1 Stock Option Exercise Agreement. To exercise the Option, Optionee (or in the case
of exercise after Optionee’s death, Optionee’s executor, administrator, heir or legatee, as the
case may be) must deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by the Company from
time to time (the “Exercise Agreement”), which shall set forth, inter alia,
Optionee’s election to exercise the Option, the number of shares being purchased, any restrictions
imposed on the Shares and any representations, warranties and agreements regarding Optionee’s
investment intent and access to information as may be required by the Company to comply with
applicable securities laws. If someone other than Optionee exercises the Option, then such person
must submit documentation reasonably acceptable to the Company that such person has the right to
exercise the Option.

               4.2 Limitations on Exercise. The Option may not be exercised unless such exercise is
in compliance with all applicable federal and state securities laws, as they are in effect on the
date of exercise.

               4.3 Payment. The Exercise Agreement shall be accompanied by full payment of the
Exercise Price for the Shares being purchased in cash (by check), or where permitted by law:

	 	(a)	 	by cancellation of indebtedness of the Company to the Optionee;
	 
	 	(b)	 	by surrender of shares of the Company’s Common Stock that either: (1) have been
owned by Optionee for more than six (6) months and have been paid for within the meaning
of SEC Rule 144 (and, if such shares were purchased from the Company by use of a
promissory note, such note has been fully paid with respect to such shares); or (2) were
obtained by Optionee in the open public market; and (3) are clear of all liens,
claims, encumbrances or security interests;
	 
	 	(c)	 	by waiver of compensation due or accrued to Optionee for services rendered;
	 
	 	(d)	 	provided that a public market for the Company’s stock exists: (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an “NASD Dealer”) whereby Optionee
irrevocably elects to exercise this Option and to sell a portion of the Shares so
purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits
upon receipt of such Shares to forward the exercise price directly to the Company;
or (2) through a “margin” commitment from Optionee and an NASD Dealer whereby
Optionee irrevocably elects to exercise this Option and to pledge the Shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD
Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably
commits upon receipt of such Shares to forward the Exercise Price directly to the
Company; or
	 
	 	(e)	 	by any combination of the foregoing.

 

 

               4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of the Option,
Optionee must pay or provide for any applicable federal or state withholding obligations of the
Company. If the Committee permits, Optionee may provide for payment of withholding taxes upon
exercise of the Option by requesting that the Company retain Shares with a Fair Market Value equal
to the minimum amount of taxes required to be withheld. In such case, the Company shall issue the
net number of Shares to the Optionee by deducting the Shares retained from the Shares issuable upon
exercise.

               4.5 Issuance of Shares. Provided that the Exercise Agreement and payment are in form
and substance satisfactory to counsel for the Company, the Company shall issue the Shares
registered in the name of Optionee, Optionee’s authorized assignee, or Optionee’s legal
representative, and shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

          5. Notice of Disqualifying Disposition of ISO Shares. To the extent the Option is an
ISO, if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on
or before the later of (a) the date two (2) years after the date of grant, and (b) the date one (1)
year after transfer of such Shares to Optionee upon exercise of the Option, then Optionee shall
immediately notify the Company in writing of such disposition.

          6. Compliance with Laws and Regulations. The exercise of the Option and the issuance
and transfer of Shares shall be subject to compliance by the Company and Optionee with all
applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company’s Common Stock may be listed at the time of such
issuance or transfer. Optionee understands that the Company is under no obligation to register or
qualify the Shares with the SEC, any state securities commission or any stock exchange to effect
such compliance.

          7. Nontransferability of Option. Except as otherwise set forth in Section 11 of the
Plan, the Option may not be transferred in any manner other than by will or by the laws of descent
and distribution and may be exercised during the lifetime of Optionee only by Optionee. The terms
of the Option shall be binding upon the executors, administrators, successors and assigns of
Optionee.

          8. Tax Consequences. Set forth below is a brief summary as of the date the Board
adopted the Plan of some of the federal tax consequences of exercise of the 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 ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING
OF THE SHARES.

               8.1 Exercise of Incentive Stock Option. To the extent the Option qualifies as an ISO,
there will be no regular federal 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 a tax preference item for federal income tax purposes and may subject the
Optionee to the alternative minimum tax in the year of exercise.

               8.2 Exercise of Nonqualified Stock Option. To the extent the Option does not qualify
as an ISO, there may be a regular federal income tax liability upon the exercise

 

 

of the Option.
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. The Company may 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.

               8.3 Disposition of Shares. The following tax consequences may apply upon disposition
of the Shares.

                    a. Incentive Stock Options. If the Shares are held for more than twelve (12) months
after the date of the transfer of the Shares pursuant to the exercise of an ISO and are disposed of
more than two (2) years after the date of grant, any gain realized on disposition of the Shares
will be treated as capital gain for federal income tax purposes. If Shares purchased under an ISO
are disposed of within the applicable one (1) year or two (2) year period, any gain realized on
such disposition will be treated as compensation income (taxable at ordinary income rates) to the
extent of the excess, if any, of the fair market value of the Shares on the date of exercise over
the Exercise Price.

                    b. Nonqualified Stock Options. If the Shares are held for more than twelve (12)
months after the date of the transfer of the Shares pursuant to the exercise of an NQSO, any gain
realized on disposition of the Shares will be treated as long-term capital gain.

                    c. Withholding. The Company may be required to withhold from Participant’s
compensation or collect from the Participant and pay to the applicable taxing authorities an amount
equal to a percentage of the compensation income.

          9. Privileges of Stock Ownership. Optionee shall not have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to Optionee.

          10. Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by Optionee or the Company to the Committee for review. The resolution of such a
dispute by the Committee shall be final and binding on the Company and Optionee.

          11. Entire Agreement. The Plan is incorporated herein by reference. This Agreement,
the Notice of Grant, the Plan and the Exercise Agreement constitute the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof and supersede all
prior understandings and agreements with respect to such subject matter.

          12. Notices. Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company
at its principal corporate offices. Any notice required to be given or delivered to Optionee shall
be in writing and addressed to Optionee at the address indicated above or to such other address as
such party may designate in writing from time to time to the Company. All notices shall be deemed
to have been given or delivered upon: personal delivery; three (3) days after deposit in the
United States mail by certified or registered mail (return receipt requested);
one (1) business day after deposit with any return receipt express courier (prepaid); or one (1)
business day after transmission by facsimile.

 

 

          13. Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns.

          14. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to
choice of law or conflict of law.

	 	 	 	 	 	 	 	 	 	 	 
	OPTIONEE:	 	 	 	INTERWOVEN, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

 

 

EXHIBIT A

STOCK OPTION EXERCISE AGREEMENT

 

 

Exhibit A

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN (the “Plan”)

STOCK OPTION EXERCISE AGREEMENT

     I hereby elect to purchase the number of shares of Common Stock of Interwoven, Inc. (the
“Company”) as set forth below:

	 	 	 	 	 	 	 	 	 	 	 
	Optionee

	 	 	 	 	 	 	 	Number of Shares Purchased:	 	 
	 	 	 	 	 	 	 	 	 
	Social Security Number:	 	 	 	 	 	Purchase
Price per Share:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	Address:

	 	 	 	 	 	 	 	Aggregate Purchase Price:	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Date of Option Agreement:	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Type of Option:	 	[  ]  Incentive Stock Option	 	 	 	Exact Name of Title to Shares:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	[  ]  Nonqualified Stock Option	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

1. Delivery of Purchase Price. Optionee hereby delivers to the Company the Aggregate
Purchase Price, to the extent permitted in the Stock Option Agreement (the “Option
Agreement”) and Notice of Grant as follows (check as applicable and complete):

			
	[  ]	 	in cash (by check) in the amount of $                    , receipt
of which is acknowledged by the Company;

			
	[  ]	 	by cancellation of indebtedness of the Company to Optionee in the
amount of $                                        ;

			
	[  ]	 	by delivery of                      fully-paid, nonassessable and
vested shares of the Common Stock of the Company owned by Optionee
for at least six (6) months prior to the date hereof (and which have
been paid for within the meaning of SEC Rule 144), or obtained by
Optionee in the open public market, and owned free and clear of all
liens, claims, encumbrances or security interests, valued at the
current Fair Market Value of $                     per share;

			
	[  ]	 	by the waiver hereby of compensation due or accrued to Optionee for
services rendered in the amount of $                                        ;

			
	[  ]	 	through a “same-day-sale” commitment, delivered herewith, from
Optionee and the NASD Dealer named therein, in the amount of
$                                        ; or

			
	[  ]	 	through a “margin” commitment, delivered herewith from Optionee and
the NASD Dealer named therein, in the amount of
$                                        .

2. Tax Consequences. 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 CONSULTANT(S) 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.

3. Entire Agreement. The Plan, Notice of Grant and Option Agreement are incorporated herein
by reference. This Exercise Agreement, the Plan, Notice of Grant and the Option Agreement
constitute the entire agreement and understanding of the parties and supersede in their
entirety all prior understandings and agreements of the Company and Optionee with respect to
the subject matter hereof, and are governed by California law except for that body of law
pertaining to choice of law or conflict of law.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature of Optionee

 

 

Spousal Consent

     I acknowledge that I have read the foregoing Stock Option Exercise Agreement (the “Agreement”)
and that I know its contents. I hereby consent to and approve all of the provisions of the
Agreement, and agree that the shares of the Common Stock of Interwoven, Inc. purchased thereunder
(the “Shares”) and any interest I may have in such Shares are subject to all the provisions of the
Agreement. I will take no action at any time to hinder operation of the Agreement on these Shares
or any interest I may have in or to them.

	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	Date:	 	 
	 	 	 	 	 	 	 
	 	 

	 	Signature of Optionee’s Spouse	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 
	 	 

	 	Spouse’s Name — Typed or Printed	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 
	 	 

	 	Optionee’s Name — Typed or Printed	 	 	 	 	 	 

 

 

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN

NOTICE OF RESTRICTED STOCK UNIT AWARD

     The terms defined in the Interwoven, Inc. 2000 Stock Incentive Plan (the “Plan”) shall have
the same meanings in this Notice of Restricted Stock Unit Award (“Notice of Grant”).

	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	You (“Participant”) have been granted an award of Restricted Stock Units (“RSUs”), subject to the
terms and conditions of the Plan and the attached Award Agreement (Restricted Stock Units)
(hereinafter “RSU Agreement”) to the Plan (available in hard copy by request), as follows:
	 
	 	 	 	 	 	 
	 

	 	Number of RSUs:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Date of Grant:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	First Vesting Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Expiration Date:	 	The date on which settlement of all RSUs granted hereunder occurs, with
earlier expiration upon the Termination Date
	 
	 	 	 	 	 	 
	 

	 	[Vesting Schedule:]	 	 	 	 

Participant understands that his/her employment or consulting relationship with the Company is for
an unspecified duration, can be terminated at any time with or without cause (i.e., is “at-will”),
and that nothing in this Notice of Grant, the Attached Award Agreement or the Plan changes the
at-will nature of that relationship. Participant acknowledges that the vesting of the RSUs
pursuant to this Notice of Grant is earned only by continuing service as an employee or consultant
of the Company. Participant also understands that this Notice of Grant is subject to the terms and
conditions of both the RSU Agreement and the Plan, both of which are incorporated herein by
reference. Participant has read both the RSU Agreement and the Plan.

	 	 	 	 	 	 	 
	PARTICIPANT

	 	 	 	INTERWOVEN, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name:

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

INTERWOVEN, INC.

AWARD AGREEMENT (RESTRICTED STOCK UNITS) TO THE

INTERWOVEN, INC. 2000 STOCK INCENTIVE PLAN

Unless otherwise defined herein, the terms defined in Interwoven, Inc.’s 2000 Stock Incentive Plan
(the “Plan”) shall have the same defined meanings in this Award Agreement (Restricted Stock Units)
(the “Agreement”).

You have been granted Restricted Stock Units (“RSUs”) subject to the terms, restrictions and
conditions of the Plan, the Notice of Restricted Stock Unit Grant (“Notice of Grant”) and this
Agreement.

1. Settlement. Unless otherwise deferred by Participant as permitted by the Committee,
settlement of RSUs shall be made within 30 days following the applicable date of vesting under the
vesting schedule set forth in the Notice of Grant. Settlement of RSUs shall be in Shares or cash
as determined by the Committee.

2. No Stockholder Rights. Unless and until such time as Shares are issued in settlement of
vested RSUs, Participant shall have no ownership of the Shares allocated to the RSUs and shall have
no right dividends or to vote such Shares.

3. Dividend Equivalents. Dividends, if any (whether in cash or Shares), shall not be
credited to Participant.

4. [Cessation of Vesting Due to Employee Schedule Change. Notwithstanding the vesting
provided for in the Notice of Grant in the event a Participant who is an employee of the Company or
a Subsidiary, who is regularly scheduled to work twenty (20) hours or more per week, voluntarily
chooses (i.e., other than for reasons protected by law) to reduce his or her work schedule with the
Company or a subsidiary to fewer than twenty (20) hours per week, the RSUs subject to the award
shall cease to vest during the period of time in which such employee regularly maintains such a
schedule.][Vesting schedule may or may not be subject to the foregoing provision.]

5. No Transfer. The RSUs and any interest therein shall not be sold, assigned,
transferred, pledged, hypothecated, or otherwise disposed of.

6. Termination. If Participant’s continuous employment with the Company or any of its
subsidiaries shall terminate for any reason, all unvested RSUs shall be forfeited to the Company
forthwith, and all rights of Participant to such RSUs shall immediately terminate. In case of any
dispute as to whether Termination has occurred, the Committee shall have sole discretion to
determine whether such Termination has occurred and the effective date of such Termination.

7. Acknowledgement. The Company and Participant agree that the RSUs are granted under and
governed by this Agreement, the provisions of the Plan and the Notice of Grant (incorporated herein
by reference). Participant: (i) acknowledges receipt of a copy of the Plan and the Plan
prospectus, (ii) represents that Participant has carefully read and is familiar with their
provisions, and (iii) hereby accepts the RSUs subject to all of the terms and conditions set forth
herein and those set forth in the Plan and the Notice of Grant.

8. Tax Consequences. Participant acknowledges that there will be tax consequences upon
settlement of the RSUs or disposition of the Shares, if any, received in connection therewith, and

 

 

Participant should consult a tax adviser regarding Participant’s tax obligations prior to such
settlement or disposition. Upon vesting of the RSU, Participant will include in income the fair
market value of the Shares subject to the RSU. The included amount will be treated as ordinary
income by Participant and will be subject to withholding by the Company. The Company will satisfy
any withholding obligations by reducing the number of Shares deliverable upon settlement by such an
amount to satisfy such withholding requirements. Information on possible arrangements can be
obtained from the Company. Upon disposition of the Shares, any subsequent increase or decrease in
value will be treated as short-term or long-term capital gain or loss, depending on whether the
Shares are held for more than one year from the date of settlement. In the event you are not a US
taxpayer, the tax consequences described above could be different, you should consult your tax or
financial advisor.

9. Compliance with Laws and Regulations. The issuance of Shares will be subject to and
conditioned upon compliance by the Company and Participant with all applicable state and federal
laws and regulations and with all applicable requirements of any stock exchange or automated
quotation system on which the Company’s Common Stock may be listed or quoted at the time of such
issuance or transfer.

10. Successors and Assigns. The Company may assign any of its rights under this Agreement.
This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the
Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding
upon Participant and Participant’s heirs, executors, administrators, legal representatives,
successors and assigns.

11. Severability. The Plan and Notice of Grant are incorporated herein by reference. The
Plan, the Notice of Grant and this Agreement constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Participant with respect to the subject matter hereof. If any
provision of this Agreement is determined by a court of law to be illegal or unenforceable, then
such provision will be enforced to the maximum extent possible and the other provisions will remain
fully effective and enforceable.

12. NO GUARANTEE OF EMPLOYMENT. PARTICIPANT UNDERSTANDS AND AGREES THAT HIS OR HER
EMPLOYMENT WITH THE COMPANY OR ITS SUBSIDIARIES IS FOR AN UNSPECIFIED DURATION AND CONSTITUTES
“AT-WILL” EMPLOYMENT. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF RSU’S PURSUANT TO
THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING SERVICE AS AN EMPLOYEE OR CONSULTANT AT
THE WILL OF THE COMPANY OR ITS SUBSIDIARY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED
RSU’S OR BEING ISSUED SHARES HEREUNDER). PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER, AND THE VESTING SCHEDULE SET FORTH HEREIN DO
NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE FOR THE VESTING
PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH PARTICIPANT’S RIGHT OR THE
COMPANY’S AND/OR SUBSIDIARY’S RIGHT TO TERMINATE PARTICIPANT’S EMPLOYMENT AT ANY TIME, WITH OR
WITHOUT CAUSE.

     By Participant’s signature and the signature of the Company’s representative on the Notice of
Grant, Participant and the Company agree that this RSU is granted under and governed by the terms
and conditions of the Plan, the Notice of Grant and this Agreement. Participant has reviewed the
Plan, the Notice of Grant and this Agreement in their entirety, has had an opportunity to obtain
the advice of

 

 

counsel prior to executing this Agreement, and fully understands all provisions of the Plan, the
Notice of Grant and this Agreement. Participant hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Committee upon any questions relating to the Plan,
the Notice of Grant and this Agreement. Participant further agrees to notify the Company upon any
change in Participant’s residence address.

 

 

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN

NOTICE OF RESTRICTED STOCK UNIT AWARD

     The terms defined in the Interwoven, Inc. 2000 Stock Incentive Plan (the “Plan”) shall have
the same meanings in this Notice of Restricted Stock Unit Award (“Notice of Grant”).

	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	You (“Participant”) have been granted an award of Restricted Stock Units (“RSUs”), subject to the
terms and conditions of the Plan and the attached Award Agreement (Restricted Stock Units)
(hereinafter “RSU Agreement”) to the Plan (available in hard copy by request), as follows:
	 
	 	 	 	 	 	 
	 

	 	Number of RSUs:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Date of Grant:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	First Vesting Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Expiration Date:	 	The date on which settlement of all RSUs granted hereunder occurs, with
earlier expiration upon the Termination Date
	 
	 	 	 	 	 	 
	 	 	Vesting Schedule:	 	Provided Participant continues to provide services to the Company or any
Subsidiary or Parent of the Company, the RSUs will become vested as to portions of the
Number of RSUs as follows: (i) the RSUs shall not vest with respect to any of the
underlying Shares until the First Vesting Date; (ii) on the First Vesting Date the RSUs
will become vested as to twenty-five percent (25%) of the Number of RSUs; and (iii)
thereafter each year on the anniversary of the First Vesting Date the RSUs shall vest
as to an additional twenty-five percent (25%) of the Number of RSUs until this award is
vested with respect to one hundred percent (100%) of the RSUs. RSUs that are vested
pursuant to the schedule set forth in this paragraph (or pursuant to the following
paragraph) are “Vested RSUs.” RSUs that are not vested pursuant to the schedule set
forth in this paragraph (or pursuant to the following paragraph) are “Unvested RSUs.”
Settlement of RSUs will be solely in Shares, on a one Share-for-one RSU basis, as the
Unvested RSUs vest in accordance with Section 1 of the RSU Agreement.
	 
	 	 	 	 	 	 
	 	 	 	 	Notwithstanding the provisions of the preceding paragraph,
however, if there is a Sale of the Company and Participant’s

 

 

	 	 	 	 	 	 	 
	 	 	 	 	employment is terminated by the Company or its successor
without Cause in connection with the Sale of the Company, then
upon such termination the Unvested RSUs subject to this award
will become vested as to an additional number of Unvested RSUs
equal to fifty percent (50%) of the RSUs that were Unvested
RSUs at the closing of the Sale of the Company (or such lesser
number as will result in a greater after-tax benefit if
Participant would be subject to the excise tax imposed by
Section 4999 of the Code).
	 
	 	 	 	 	 	 
	 	 	 	 	For purposes of this vesting acceleration provision, “Cause”
means (i) willfully engaging in gross misconduct that is
materially and demonstrably injurious to the Company; (ii)
willful act or acts of dishonesty undertaken by Participant and
intended to result in substantial gain or personal enrichment
for Participant at the expense of the Company; or (iii) willful
and continued failure to substantially perform Participant’s
duties with the Company or its successor (other than incapacity
due to physical or mental illness); provided that the action or
conduct described in clause (iii) above will constitute “Cause”
only if such failure continues after the Board of Directors has
provided Participant with a written demand for substantial
performance setting forth in detail the specify respects in
which it believes Participant has willfully and not
substantially performed his duties thereof and a reasonable
opportunity (to be not less than 30 days) to cure the same. For
such purpose, a termination by the Company without Cause
includes a termination of employment by Participant within 30
days following any of the following events: (x) the assignment
of any duties to Participant inconsistent with, or reflecting a
materially adverse change in, Participant’s position, duties or
responsibilities with the Company (or any successor) without
Participant’s concurrence; or (y) the relocation of the
Company’s principal executive offices (or relocating
Participant’s principal place of business) in excess of fifty
(50) miles from the Company’s current executive offices located
in Sunnyvale, California. For purposes of the vesting
acceleration provisions of paragraph (b), the term “Sale of the
Company” means (i) the sale or other disposition of all or
substantially all of the assets of the Company, or (ii) the
acquisition of the Company by another entity by means of
consolidation, corporate reorganization or merger, or other
transaction or series of related transactions in which more
than fifty percent (50%) of the outstanding voting power of the
Company is transferred.

Participant understands that his/her employment or consulting relationship with the Company is for
an unspecified duration, can be terminated at any time with or without cause (i.e., is “at-will”),
and that nothing in this Notice of Grant, the Attached Award Agreement or the Plan changes the
at-will nature of that relationship. Participant acknowledges that the vesting of the RSUs
pursuant to this Notice of Grant is earned only by continuing service as an employee or consultant
of the Company. Participant

 

 

also understands that this Notice of Grant is subject to the terms and conditions of both the RSU
Agreement and the Plan, both of which are incorporated herein by reference. Participant has read
both the RSU Agreement and the Plan.

	 	 	 	 	 	 	 
	PARTICIPANT

	 	 	 	INTERWOVEN, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name:

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

INTERWOVEN, INC.

AWARD AGREEMENT (RESTRICTED STOCK UNITS) TO THE

INTERWOVEN, INC. 2000 STOCK INCENTIVE PLAN

Unless otherwise defined herein, the terms defined in Interwoven, Inc.’s 2000 Stock Incentive Plan
(the “Plan”) shall have the same defined meanings in this Award Agreement (Restricted Stock Units)
(the “Agreement”).

You have been granted Restricted Stock Units (“RSUs”) subject to the terms, restrictions and
conditions of the Plan, the Notice of Restricted Stock Unit Grant (“Notice of Grant”) and this
Agreement.

1. Settlement. Unless otherwise deferred by Participant as permitted by the Committee,
settlement of RSUs shall be made within 30 days following the applicable date of vesting under the
vesting schedule set forth in the Notice of Grant. Settlement of RSUs shall be in Shares or cash
as determined by the Committee.

2. No Stockholder Rights. Unless and until such time as Shares are issued in settlement
of vested RSUs, Participant shall have no ownership of the Shares allocated to the RSUs and shall
have no right dividends or to vote such Shares.

3. Dividend Equivalents. Dividends, if any (whether in cash or Shares), shall not be
credited to Participant.

4. [Cessation of Vesting Due to Employee Schedule Change. Notwithstanding the vesting
provided for in the Notice of Grant in the event a Participant who is an employee of the Company or
a Subsidiary, who is regularly scheduled to work twenty (20) hours or more per week, voluntarily
chooses (i.e., other than for reasons protected by law) to reduce his or her work schedule with the
Company or a subsidiary to fewer than twenty (20) hours per week, the RSUs subject to the award
shall cease to vest during the period of time in which such employee regularly maintains such a
schedule.][Vesting schedule may or may not be subject to the foregoing provision.]

5. No Transfer. The RSUs and any interest therein shall not be sold, assigned,
transferred, pledged, hypothecated, or otherwise disposed of.

6. Termination. If Participant’s continuous employment with the Company or any of its
subsidiaries shall terminate for any reason, all unvested RSUs shall be forfeited to the Company
forthwith, and all rights of Participant to such RSUs shall immediately terminate. In case of any
dispute as to whether Termination has occurred, the Committee shall have sole discretion to
determine whether such Termination has occurred and the effective date of such Termination.

7. Acknowledgement. The Company and Participant agree that the RSUs are granted under and
governed by this Agreement, the provisions of the Plan and the Notice of Grant (incorporated herein
by reference). Participant: (i) acknowledges receipt of a copy of the Plan and the Plan
prospectus, (ii) represents that Participant has carefully read and is familiar with their
provisions, and (iii) hereby accepts the RSUs subject to all of the terms and conditions set forth
herein and those set forth in the Plan and the Notice of Grant.

8. Tax Consequences. Participant acknowledges that there will be tax consequences upon
settlement of the RSUs or disposition of the Shares, if any, received in connection therewith, and

 

 

Participant should consult a tax adviser regarding Participant’s tax obligations prior to such
settlement or disposition. Upon vesting of the RSU, Participant will include in income the fair
market value of the Shares subject to the RSU. The included amount will be treated as ordinary
income by Participant and will be subject to withholding by the Company. The Company will satisfy
any withholding obligations by reducing the number of Shares deliverable upon settlement by such an
amount to satisfy such withholding requirements. Information on possible arrangements can be
obtained from the Company. Upon disposition of the Shares, any subsequent increase or decrease in
value will be treated as short-term or long-term capital gain or loss, depending on whether the
Shares are held for more than one year from the date of settlement. In the event you are not a US
taxpayer, the tax consequences described above could be different, you should consult your tax or
financial advisor.

9. Compliance with Laws and Regulations. The issuance of Shares will be subject to and
conditioned upon compliance by the Company and Participant with all applicable state and federal
laws and regulations and with all applicable requirements of any stock exchange or automated
quotation system on which the Company’s Common Stock may be listed or quoted at the time of such
issuance or transfer.

10. Successors and Assigns. The Company may assign any of its rights under this Agreement.
This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the
Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding
upon Participant and Participant’s heirs, executors, administrators, legal representatives,
successors and assigns.

11. Severability. The Plan and Notice of Grant are incorporated herein by reference. The
Plan, the Notice of Grant and this Agreement constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Participant with respect to the subject matter hereof. If any
provision of this Agreement is determined by a court of law to be illegal or unenforceable, then
such provision will be enforced to the maximum extent possible and the other provisions will remain
fully effective and enforceable.

12. NO GUARANTEE OF EMPLOYMENT. PARTICIPANT UNDERSTANDS AND AGREES THAT HIS OR HER
EMPLOYMENT WITH THE COMPANY OR ITS SUBSIDIARIES IS FOR AN UNSPECIFIED DURATION AND CONSTITUTES
“AT-WILL” EMPLOYMENT. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF RSU’S PURSUANT TO
THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING SERVICE AS AN EMPLOYEE OR CONSULTANT AT
THE WILL OF THE COMPANY OR ITS SUBSIDIARY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED
RSU’S OR BEING ISSUED SHARES HEREUNDER). PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER, AND THE VESTING SCHEDULE SET FORTH HEREIN DO
NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE FOR THE VESTING
PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH PARTICIPANT’S RIGHT OR THE
COMPANY’S AND/OR SUBSIDIARY’S RIGHT TO TERMINATE PARTICIPANT’S EMPLOYMENT AT ANY TIME, WITH OR
WITHOUT CAUSE.

     By Participant’s signature and the signature of the Company’s representative on the Notice of
Grant, Participant and the Company agree that this RSU is granted under and governed by the terms
and conditions of the Plan, the Notice of Grant and this Agreement. Participant has reviewed the
Plan, the Notice of Grant and this Agreement in their entirety, has had an opportunity to obtain
the advice of

 

 

counsel prior to executing this Agreement, and fully understands all provisions of the Plan, the
Notice of Grant and this Agreement. Participant hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Committee upon any questions relating to the Plan,
the Notice of Grant and this Agreement. Participant further agrees to notify the Company upon any
change in Participant’s residence address.exv10w05

 

Exhibit 10.05

	 	 	 
	CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED FOR CERTAIN PORTIONS OF
THIS
DOCUMENT

	 	***Confidential treatment has been
requested with respect to the
information contained within the
"[***]” markings. Such marked portions
have been omitted from this filing and
have been filed separately with the
Securities and Exchange Commission

2006 Compensation Plan

	 	 	 
	To:

	 	Scipio M. Carnecchia,
	 

	 	Senior Vice President of Worldwide Sales
	 
	 	 
	Effective dates:

	 	January 1, 2006 to December 31, 2006

This document outlines your individual compensation package (“Compensation Plan”) for
calendar year 2006 including the at-risk components (“Incentive Pay”) determined under
the Sales Compensation Plan. All other terms and conditions of your employment are
governed by your offer letter.

In your role, you are responsible for the Interwoven’s worldwide sales organization.
Interwoven reserves the right to change your responsibilities from time to time and
modify your Compensation Plan to take into account its business needs.

COMPENSATION PACKAGE

Your Compensation Plan is comprised of a Base Salary and Incentive Pay, which is
an at-risk component of your overall compensation package. The 2006 Sales
Compensation Plan outlines the guidelines under which you will be paid your Incentive
Pay component.

Your on-target earnings for calendar year 2006 are $475,000.00. Your on-target
earnings are composed of the following:

	 	•	 	Annual Base Salary of $200,000.00.
	 
	 	•	 	On-target Incentive Pay of $275,000.00:

	 	•	 	$250,000.00 related to Software License bookings.
	 
	 	•	 	$25,000.00 related to Professional Services revenue.
	 
	 	•	 	A Direct Margin Percentage factor will be applied in computing your
commissions earned for Software License bookings and Professional
Services revenue.

From your actual earnings, we will subtract payroll deductions, all required
withholdings and other voluntary deductions you authorize Interwoven to make on your
behalf.

BASE SALARY

Your annual base salary will be paid to you ratably over the year in accordance with
Interwoven’s standard payroll practices.

INCENTIVE PAY

Your Incentive Pay will be calculated under the following process. Please be aware,
this Incentive Pay
process does not guarantee you a level of income.

 

 

Commissions on Software License Bookings and Professional Services
Revenue

Of your on-target Incentive Pay, $250,000.00 will be related to commissions for
Software License bookings and $25,000.00 will be related to commissions for
Professional Services revenue. Commissions on Software License bookings relate
to achieving the Company’s business plan objectives for Software License
bookings. Customer support and maintenance is not included in the measurement
of Software License bookings. Commissions on Professional Services relate to
assisting the Professional Services Organization in achieving the Company’s
business plan objectives for revenue from consulting and education services
(collectively “Professional Services”).

Commissions will be earned upon recognition of bookings for Software License and
revenue for Professional Services by Interwoven in accordance with the following
rates:

	 	 	 	 	 
	Quarterly	 	License Bookings	 	Professional Services
	Quota Attainment	 	Commission Rates	 	Commission Rates
	0% to 100%

	 	[***]%
	 	[***]%
	101% to 102%

	 	[***]%
	 	[***]%
	103% to 104%

	 	[***]%
	 	[***]%
	105% to 106%

	 	[***]%
	 	[***]%
	Greater than 107%

	 	[***]%
	 	[***]%

All Quarterly Quota Attainment percentages will be rounded to the next whole
number (ie: greater than or equal to 0.5 will be rounded up and less than 0.5
will be rounded down).

Additionally, the commission earned above will be multiplied by the following
adjustment factor based on the Direct Margin Percentage achieved by the Sales
organization on Software License bookings and Professional Services revenue for
each quarter:

	 	 	 
	Direct	 	Adjustment
	Margin Percentage	 	Factor
	>3% below target

	 	[***]%
	2% below target

	 	[***]%
	At target

	 	[***]%
	2% above target

	 	[***]%
	3% above target

	 	[***]%
	4% above target

	 	[***]%
	>4% above target

	 	[***]%

Direct Margin Percentage is defined as Software License bookings and
Professional
Services revenue less the cost of license revenues and the direct expenses
incurred by the worldwide sales organization to acquire that revenue.

Your quota for the period January 1, 2006 to December 31, 2006 is $[***] for
Software License booking and $[***] for Professional Services revenue as
follows:

 

			
	***	 	Confidential treatment has been requested with respect to the information contained within the “[***]” markings.
Such marked portions have been omitted from this filing and have been filed separately with the Securities and
Exchange Commission.

 

 

	 	 	 
	Software	 	Professional
	License Bookings	 	Services Revenues
	$[***] for Q1 2006
	 	$[***] for Q1 2006
	$[***] for Q2 2006
	 	$[***] for Q2 2006
	$[***] for Q3 2006
	 	$[***] for Q3 2006
	$[***] for Q4 2006
	 	$[***] for Q4 2006

As outlined in the 2006 Sales Compensation Plan, Software License bookings and
Professional Services revenue are computed in accordance with generally accepted
accounting principles (as determined by the Company’s Finance Department and the
Audit Committee of the Board of Directors). For Software License bookings,
credit will be received for the amount of revenue that can be recognized in
accordance with Interwoven’s revenue recognition policy. If the recognition of
revenue extends beyond the end of the then current quarter, bookings credit will
be received in the quarter when the revenue is recognized. Such amounts are
subject to reduction for carve-outs, any returns, or uncollectible accounts as
outlined in the Interwoven 2006 Sales Compensation Plan.

Your Direct Margin Percentage targets for the period January 1, 2006 to December
31, 2006 are as follows:

	 	o	 	[***]% for first quarter of 2006
	 
	 	o	 	[***]% for the second quarter of 2006
	 
	 	o	 	[***]% for the third quarter of 2006
	 
	 	o	 	[***]% for the fourth quarter of 2006

By way of example, if Software License bookings for the first quarter of 2006
was $[***] and Professional Services revenue for the first quarter was $[***]
(achievement of 101% of quota for both Software License and Professional
Services revenue) and the direct gross margin was [***]%, your commission due
would be computed as follows:

Software License bookings – ((($[***] times [***]%) + ($[***] times [***]%))
times [***]%) equals $[***].

Professional Services revenues – ((($[***] times [***]%) + ($[***] times
[***]%)) times [***]%) equals $[***].

Total earned equals $[***].

Please acknowledge your acceptance with this Compensation Plan by signing below. Have a
great 2006!

	 	 	 	 	 	 
	Read and accepted:

	 	 	 	Signed:
	 
	 	 	 	 
	  /s/ Scipio M. Carnecchia	 	 	 	  /s/ John E. Calonico, Jr.
	Scipio M. Carnecchia

	 	 	 	John E. Calonico, Jr.
	Senior Vice President of Worldwide Sales

	 	 	 	Chief Financial Officer
	Interwoven, Inc.

	 	 	 	Interwoven, Inc.

 

			
	***	 	Confidential treatment has been requested with respect to the information contained within the “[***]” markings.
Such marked portions have been omitted from this filing and have been filed separately with the Securities and
Exchange Commission.

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