Document:

exv10w01

 

EXHIBIT 10.01

INTERWOVEN, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

As Adopted July 22, 1999

Amended September 20, 1999, and September 15, 2005 and adjusted January 1, 2000,

July 13, 2000, December 29, 2000, January 1, 2001, January 1, 2002, January 1, 2003,

November 13, 2003, January 1, 2004 and January 1, 2005

     1. Establishment of Plan. Interwoven, Inc. (the “Company”) proposes to grant options for purchase
of the Company’s Common Stock to eligible employees of the Company and its Participating
Subsidiaries (as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this “Plan”).
For purposes of this Plan, “Parent Corporation” and “Subsidiary” shall have the same meanings as
“parent corporation” and “subsidiary corporation” in Sections 424(e) and 424(f), respectively, of
the Internal Revenue Code of 1986, as amended (the “Code”). “Participating Subsidiaries” are
Parent Corporations or Subsidiaries that the Board of Directors of the Company (the “Board”)
designates from time to time as corporations that shall participate in this Plan. The Company
intends this Plan to qualify as an “employee stock purchase plan” under Section 423 of the Code
(including any amendments to or replacements of such Section), and this Plan shall be so construed.
Any term not expressly defined in this Plan but defined for purposes of Section 423 of the Code
shall have the same definition herein. A total of 6,018,216 1 shares of the Company’s
Common Stock is reserved for issuance under this Plan. In addition, on each January 1, the
aggregate number of shares of the Company’s Common Stock reserved for issuance under the Plan shall
be increased automatically by a number of shares equal to 1% of the total number of outstanding
shares of the Company Common Stock on the immediately preceding December 31; provided that
the aggregate number of shares issued over the term of this Plan shall not exceed
3,000,000 2 shares. Such number shall be subject to adjustments effected in accordance
with Section 14 of this Plan.

     2. Purpose. The purpose of this Plan is to provide eligible employees of the Company and
Participating Subsidiaries with a convenient means of acquiring an equity interest in the Company
through payroll deductions, to enhance such employees’ sense of participation in the affairs of the
Company and Participating Subsidiaries, and to provide an incentive for continued employment.

 

			
	1	 	Adjusted to reflect (1) the automatic authorization
of 228,864 additional shares of Common Stock for issuance under this Plan
pursuant to Section 1 of this Plan in January 2000 (based upon 22,886,494
shares of Common Stock issued and outstanding as of December 31, 1999); (2) the
2-for-1 split of the Company’s Common Stock, paid in the form of a dividend,
effected in July 2000 with respect to stockholders of record on June 22, 2000;
(3) the 2-for-1 split of the Company’s Common Stock, paid in the form of a
dividend, effected in December 2000 with respect to stockholders of record on
December 13, 2000; (4) the automatic authorization of 1,021,711 additional
shares of Common Stock for issuance under this Plan pursuant to Section 1 of
this Plan in January 2001 (based upon 102,171,132 shares of Common Stock issued
and outstanding as of December 31, 2000); (5) the automatic authorization of
1,044,744 additional shares of Common Stock for issuance under this Plan
pursuant to Section 1 of this Plan in January 2002 (based upon 104,474,483
shares of Common Stock issued and outstanding as of December 31, 2001); (6) the
automatic authorization of 1,025,362 additional shares of Common Stock for
issuance under this Plan pursuant to Section 1 of this Plan in January 2003
(based upon 102,536,200 shares of Common Stock issued and outstanding as of
December 31, 2002); (7) the automatic authorization of 400,076 additional
shares of Common Stock for issuance under this Plan pursuant to Section 1 of
this Plan in January 2004 (based upon 40,007,621 shares of Common Stock issued
and outstanding as of December 31, 2003); and (8) the automatic authorization
of 410,867 additional shares of Common Stock for issuance under this Plan
pursuant to Section 1 of this Plan in January 2005 (based upon 41,087,000
shares of Common Stock issued and outstanding as of December 31, 2004).
	 
	2	 	Adjusted to account for (1) the 2-for-1 split
of the Company’s Common Stock, paid in the form of a dividend, effected in July
2000 with respect to stockholders of record on June 22, 2000; (2) the 2-for-1
split of the Company’s Common Stock, paid in the form of a dividend, effected
in December 2000 with respect to stockholders of record on December 13, 2000;
and (3) the 1-for-4 reverse stock split of the Company’s Common Stock effected
in November 2003 with respect to stockholders of record on November 18, 2003.

 

 

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1999 Employee Stock Purchase Plan

     3. Administration. This Plan shall be administered by the Compensation Committee of the Board
(the “Committee”). Subject to the provisions of this Plan and the limitations of Section 423 of
the Code or any successor provision in the Code, all questions of interpretation or application of
this Plan shall be determined by the Committee and its decisions shall be final and binding upon
all participants. Members of the Committee shall receive no compensation for their services in
connection with the administration of this Plan, other than standard fees as established from time
to time by the Board for services rendered by Board members serving on Board committees. All
expenses incurred in connection with the administration of this Plan shall be paid by the Company.

     4. Eligibility. Any employee of the Company or the Participating Subsidiaries is eligible to
participate in an Offering Period (as hereinafter defined) under this Plan except the following:

     (a) employees who are not employed by the Company or a Participating Subsidiary (10) days
before the beginning of such Offering Period, except that employees who are employed on the
Effective Date of the Registration Statement filed by the Company with the Securities and Exchange
Commission (“SEC”) under the Securities Act of 1933, as amended (the “Securities Act”) registering
the initial public offering of the Company’s Common Stock shall be eligible to participate in the
first Offering Period under the Plan;

     (b) employees who are customarily employed for twenty (20) hours or less per week;

     (c) employees who are customarily employed for five (5) months or less in a calendar year;

     (d) employees who, together with any other person whose stock would be attributed to such
employee pursuant to Section 424(d) of the Code, own stock or hold options to purchase stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of
stock of the Company or any of its Participating Subsidiaries or who, as a result of being granted
an option under this Plan with respect to such Offering Period, would own stock or hold options to
purchase stock possessing five percent (5%) or more of the total combined voting power or value of
all classes of stock of the Company or any of its Participating Subsidiaries; and

     (e) individuals who provide services to the Company or any of its Participating Subsidiaries
as independent contractors who are reclassified as common law employees for any reason
except for federal income and employment tax purposes.

     5. Offering Dates. The offering periods of this Plan (each, an “Offering Period”) shall be of six
(6) months duration commencing on May 1 and November 1 of each year and ending on April 30 and
October 31 of each year. Each Offering Period shall consist of one (1) six month purchase period
(a “Purchase Period”) during which payroll deductions of the participants are accumulated under
this Plan. Any Offering Period that began prior to October 31, 2005 shall end on October 31, 2005.
The first business day of each Offering Period is referred to as the “Offering Date”. The last
business day of each Purchase Period is referred to as the “Purchase Date”. The Committee shall
have the power to change the duration of Offering Periods with respect to offerings without
stockholder approval if such change is announced at least fifteen (15) days prior to the scheduled
beginning of the first Offering Period to be affected.

     6. Participation in this Plan. Eligible employees may become participants in an Offering Period
under this Plan on the first Offering Date after satisfying the eligibility requirements by
delivering a subscription agreement to the Company’s treasury department (the “Treasury
Department”) not later than five (5) days before such Offering Date. Notwithstanding the
foregoing, the Committee may set a later time for filing the subscription agreement authorizing
payroll deductions for all eligible employees with respect to a given Offering Period. An eligible
employee who does not deliver a subscription agreement to the Treasury Department by such date
after becoming eligible to participate in such Offering Period shall not participate in that
Offering Period or any subsequent Offering Period unless such employee enrolls in this Plan by
filing a subscription agreement with the Treasury Department not later than five (5) days preceding
a subsequent Offering Date. Once an employee becomes a participant in an Offering Period, such
employee will automatically participate in the Offering Period commencing immediately following the
last day of the prior Offering Period unless the employee withdraws or is deemed to withdraw from
this

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1999 Employee Stock Purchase Plan

Plan or terminates further participation in the Offering Period as set forth in Section 11
below. Such participant is not required to file any additional subscription agreement in order to
continue participation in this Plan.

     7. Grant of Option on Enrollment. Enrollment by an eligible employee in this Plan with respect to
an Offering Period will constitute the grant (as of the Offering Date) by the Company to such
employee of an option to purchase on the Purchase Date up to that number of shares of Common Stock
of the Company determined by dividing (a) the amount accumulated in such employee’s payroll
deduction account during such Purchase Period by (b) the lower of (i) eighty-five percent (85%) of
the fair market value of a share of the Company’s Common Stock on the Offering Date (but in no
event less than the par value of a share of the Company’s Common Stock), or (ii) eighty-five
percent (85%) of the fair market value of a share of the Company’s Common Stock on the Purchase
Date (but in no event less than the par value of a share of the
Company’s Common Stock), provided,
however, that the number of shares of the Company’s Common Stock subject to any option granted
pursuant to this Plan shall not exceed the lesser of (x) the maximum number of shares set by the
Committee pursuant to Section 10(c) below with respect to the applicable Purchase Date, or (y) the
maximum number of shares which may be purchased pursuant to Section 10(b) below with respect to the
applicable Purchase Date. The fair market value of a share of the Company’s Common Stock shall be
determined as provided in Section 8 below.

     8. Purchase Price. The purchase price per share at which a share of Common Stock will be sold in
any Offering Period shall be eighty-five percent (85%) of the lesser of:

     (a) The fair market value on the Offering Date; or

     (b) The fair market value on the Purchase Date.

     For purposes of this Plan, the term “Fair Market Value” means, as of any Purchase Date, the
value of a share of the Company’s Common Stock determined as follows:

	 	(a)	 	if such Common Stock is then quoted on the Nasdaq National Market,
its closing price on the Nasdaq National Market on the Purchase Date as reported
in The Wall Street Journal;
	 
	 	(b)	 	if such Common Stock is publicly traded and is then listed on a
national securities exchange, its closing price on the Purchase Date on the
principal national securities exchange on which the Common Stock is listed or
admitted to trading as reported in The Wall Street Journal; or
	 
	 	(c)	 	if such Common Stock is publicly traded but is not quoted on the
Nasdaq National Market nor listed or admitted to trading on a national securities
exchange, the average of the closing bid and asked prices on the Purchase Date as
reported in The Wall Street Journal.

     For purposes of this Plan, the term “Fair Market Value” means, as of any Offering Date, the
value of a share of the Company’s Common Stock determined as follows:

	 	(a)	 	if such Common Stock is then quoted on the Nasdaq National Market,
its closing price on the Nasdaq National Market on the business day immediately
prior to the Offering Date as reported in The Wall Street Journal;
	 
	 	(b)	 	if such Common Stock is publicly traded and is then listed on a
national securities exchange, its closing price on the business day immediately
prior to the Offering Date on the principal national securities exchange on which
the Common Stock is listed or admitted to trading as reported in The Wall
Street Journal;
	 
	 	(c)	 	if such Common Stock is publicly traded but is not quoted on the
Nasdaq National Market nor listed or admitted to trading on a national securities
exchange, the average of the

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1999 Employee Stock Purchase Plan

	 	 	 	closing bid and asked prices on the business day
immediately prior to the Offering Date as reported in The Wall Street
Journal; or
	 
	 	(d)	 	if none of the foregoing is applicable, by the Board in good faith,
which in the case of the First Offering Date will be the price per share at
which shares of the Company’s Common Stock are initially offered for sale to the
public by the Company’s underwriters in the initial public offering of the
Company’s Common Stock pursuant to a registration statement filed with the SEC
under the Securities Act.

     9. Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares.

     (a) The purchase price of the shares is accumulated by regular payroll deductions made during
each Offering Period. The deductions are made as a percentage of the participant’s compensation in
one percent (1%) increments not less than two percent (2%), nor greater than fifteen percent (15%)
or such lower limit set by the Committee. Compensation shall mean all W-2 cash compensation,
including, but not limited to, base salary, wages, commissions, overtime, shift premiums and
bonuses, plus draws against commissions, provided, however, that for purposes of
determining a participant’s compensation, any election by such participant to reduce his or her
regular cash remuneration under Sections 125 or 401(k) of the Code shall be treated as if the
participant did not make such election. Payroll deductions shall commence on the first payday of
the Offering Period and shall continue to the end of the Offering Period unless sooner altered or
terminated as provided in this Plan.

     (b) A participant may decrease the rate of payroll deductions during an Offering Period by
filing with the Treasury Department a new authorization for payroll deductions, in which case the
new rate shall become effective for the next payroll period commencing more than fifteen (15) days
after the Treasury Department’s receipt of the authorization and shall continue for the remainder
of the Offering Period unless changed as described below. Such change in the rate of payroll
deductions may be made at any time during an Offering Period, but not more than one (1) change may
be made effective during any Purchase Period. A participant may increase or decrease the rate of
payroll deductions for any subsequent Offering Period by filing with the Treasury Department a new
authorization for payroll deductions not later than fifteen (15) days before the beginning of such
Offering Period.

     (c) A participant may reduce his or her payroll deduction percentage to zero during an
Offering Period by filing with the Treasury Department a request for cessation of payroll
deductions. Such reduction shall be effective beginning with the next payroll period commencing
more than fifteen (15) days after the Treasury Department’s receipt of the request and no further
payroll deductions will be made for the duration of the Offering Period. Payroll deductions
credited to the participant’s account prior to the effective date of the request shall be used to
purchase shares of Common Stock of the Company in accordance with Section (e) below. A participant
may not resume making payroll deductions during the Offering Period in which he or she reduced his
or her payroll deductions to zero.

     (d) All payroll deductions made for a participant are credited to his or her account under
this Plan and are deposited with the general funds of the Company. No interest accrues on the
payroll deductions. All payroll deductions received or held by the Company may be used by the
Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll
deductions.

     (e) On each Purchase Date, so long as this Plan remains in effect and provided that the
participant has not submitted a signed and completed withdrawal form before that date which
notifies the Company that the participant wishes to withdraw from that Offering Period under this
Plan and have all payroll deductions accumulated in the account maintained on behalf of the
participant as of that date returned to the participant, the Company shall apply the funds then in
the participant’s account to the purchase of whole shares of Common Stock reserved under the option
granted to such participant with respect to the Offering Period to the extent that such option is
exercisable on the Purchase Date. The purchase price per share shall be as specified in Section 8
of this Plan. Any cash remaining in a participant’s account after such purchase of shares shall be
refunded to such participant in cash, without interest; provided, however that any amount remaining
in such participant’s account on a Purchase Date which is less than the amount necessary to
purchase a full share of Common Stock of the Company shall be carried forward, without interest,
into the next Purchase Period. In the event that this Plan has been oversubscribed, all funds not
used to purchase

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shares on the Purchase Date shall be returned to the participant, without
interest. No Common Stock shall be purchased on a Purchase Date on behalf of any employee whose
participation in this Plan has terminated prior to such Purchase Date.

     (f) As promptly as practicable after the Purchase Date, the Company shall issue shares for
the participant’s benefit representing the shares purchased upon exercise of his or her option.

     (g) During a participant’s lifetime, his or her option to purchase shares hereunder is
exercisable only by him or her. The participant will have no interest or voting right in shares
covered by his or her option until such option has been exercised.

     10. Limitations on Shares to be Purchased.

     (a) No participant shall be entitled to purchase stock under this Plan at a rate which, when
aggregated with his or her rights to purchase stock under all other employee stock purchase plans
of the Company or any Subsidiary, exceeds $25,000 in fair market value, determined as of the
Offering Date (or such other limit as may be imposed by the Code) for each calendar year in which
the employee participates in this Plan. The Company shall automatically suspend the payroll
deductions of any participant as necessary to enforce such limit provided that when the Company
automatically resumes such payroll deductions, the Company must apply the rate in effect
immediately prior to such suspension.

     (b) On any single Purchase Date, no participant shall be entitled to purchase more than twice
the number of shares which could have been purchased if the purchase price were eighty-five percent
(85%) of the fair market value of a share of the Company’s Common Stock on the Offering Date.

     (c) No participant shall be entitled to purchase more than the Maximum Share Amount (as
defined below) on any single Purchase Date. Not less than thirty (30) days prior to the
commencement of any Offering Period, the Committee may, in its sole discretion, set a maximum
number of shares which may be purchased by any employee at any single Purchase Date (hereinafter
the “Maximum Share Amount"). Until otherwise determined by the Committee, there shall be no
Maximum Share Amount. In no event shall the Maximum Share Amount exceed the amounts permitted
under Section 10(b) above. If a new Maximum Share Amount is set, then all participants must be
notified of such Maximum Share Amount prior to the commencement of the next Offering Period. The
Maximum Share Amount shall continue to apply with respect to all succeeding Purchase Dates and
Offering Periods unless revised by the Committee as set forth above.

     (d) If the number of shares to be purchased on a Purchase Date by all employees participating
in this Plan exceeds the number of shares then available for issuance under this Plan, then the
Company will make a pro rata allocation of the remaining shares in as uniform a manner as shall be
reasonably practicable and as the Committee shall determine to be equitable. In such event, the
Company shall give written notice of such reduction of the number of shares to be purchased under a
participant’s option to each participant affected.

     (e) Any payroll deductions accumulated in a participant’s account which are not used to
purchase stock due to the limitations in this Section 10 shall be returned to the participant as
soon as practicable after the end of the applicable Purchase Period, without interest.

     11. Withdrawal.

     (a) Each participant may withdraw from an Offering Period under this Plan by signing and
delivering to the Treasury Department a written notice to that effect on a form provided for such
purpose. Such withdrawal may be elected at any time at least fifteen (15) days prior to the end of
an Offering Period.

     (b) Upon withdrawal from this Plan, the accumulated payroll deductions shall be returned to
the withdrawn participant, without interest, and his or her interest in this Plan shall terminate.
In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume
his or her participation in this Plan during the same Offering Period, but he or she may
participate in any Offering Period under this Plan which commences on a

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1999 Employee Stock Purchase Plan

date subsequent to such
withdrawal by filing a new authorization for payroll deductions in the same manner as set forth in
Section 6 above for initial participation in this Plan.

     12. Termination of Employment. Termination of a participant’s employment for any reason,
including retirement, death or the failure of a participant to remain an eligible employee of the
Company or of a Participating Subsidiary, immediately terminates his or her participation in this
Plan. In such event, the payroll deductions credited to the participant’s account will be returned
to him or her or, in the case of his or her death, to his or her legal representative, without
interest. For purposes of this Section 12, an employee will not be deemed to have terminated
employment or failed to remain in the continuous employ of the Company or of a Participating
Subsidiary in the case of sick leave, military leave, or any other leave of absence approved by the
Board; provided that such leave is for a period of not more than ninety (90) days or
reemployment upon the expiration of such leave is guaranteed by contract or statute.

     13. Return of Payroll Deductions. In the event a participant’s interest in this Plan is
terminated by withdrawal, termination of employment or otherwise, or in the event this Plan is
terminated by the Board, the Company shall deliver to the participant all payroll deductions
credited to such participant’s account. No interest shall accrue on the payroll deductions of a
participant in this Plan.

     14. Capital Changes. Subject to any required action by the stockholders of the Company, the
number of shares of Common Stock covered by each option under this Plan which has not yet been
exercised and the number of shares of Common Stock which have been authorized for issuance under
this Plan but have not yet been placed under option (collectively, the “Reserves”), as well as the
price per share of Common Stock covered by each option under this Plan which has not yet been
exercised, shall be proportionately adjusted for any increase or decrease in the number of issued
and outstanding shares of Common Stock of the Company resulting from a stock split or the payment
of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number
of issued and outstanding shares of Common Stock effected without receipt of any consideration by
the Company; provided, however, that conversion of any convertible securities of the Company shall
not be deemed to have been “effected without receipt of consideration”. Such adjustment shall be
made by the Committee, whose determination shall be final, binding and conclusive. Except as
expressly provided herein, no issue 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 of Common Stock subject to an option.

     In the event of the proposed dissolution or liquidation of the Company, the Offering Period
will terminate immediately prior to the consummation of such proposed action, unless otherwise
provided by the Committee. The Committee may, in the exercise of its sole discretion in such
instances, declare that this Plan shall terminate as of a date fixed by the Committee and give each
participant the right to purchase shares under this Plan prior to such termination. In the event
of (i) a merger or consolidation in which the Company is not the surviving corporation (other than
a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Company in a
different jurisdiction, or other transaction in which there is no substantial change in the
stockholders of the Company or their relative stock holdings and the options under this Plan are
assumed, converted or replaced by the successor corporation, which assumption will be binding on
all participants), (ii) a merger in which the Company is the surviving corporation but after which
the stockholders of the Company immediately prior to such merger (other than any stockholder that
merges, or which owns or controls another corporation that merges, with the Company in such merger)
cease to own their shares or other equity interest in the Company, (iii) the sale of all or
substantially all of the assets of the Company or (iv) the acquisition, sale, or transfer of more
than 50% of the outstanding shares of the Company by tender offer or similar transaction, the Plan
will continue with regard to Offering Periods that commenced prior to the closing of the proposed
transaction and shares will be purchased based on the Fair Market Value of the surviving
corporation’s stock on each Purchase Date, unless otherwise provided by the Committee consistent
with pooling of interests accounting treatment.

     The Committee may, if it so determines in the exercise of its sole discretion, also make
provision for adjusting the Reserves, as well as the price per share of Common Stock covered by
each outstanding option, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of shares of its outstanding
Common Stock, or in the event of the Company being consolidated with or merged into any other
corporation.

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     15. Nonassignability. Neither payroll deductions credited to a participant’s account nor any
rights with regard to the exercise of an option or to receive shares under this Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as
provided in Section 22 below) by the participant. Any such attempt at assignment, transfer, pledge
or other disposition shall be void and without effect.

     16. Reports. Individual accounts will be maintained for each participant in this Plan. Each
participant shall receive promptly after the end of each Purchase Period a report of his or her
account setting forth the total payroll deductions accumulated, the number of shares purchased, the
per share price thereof and the remaining cash balance, if any, carried forward to the next
Purchase Period or Offering Period, as the case may be.

     17. Notice of Disposition. Each participant shall notify the Company in writing if the
participant disposes of any of the shares purchased in any Offering Period pursuant to this Plan if
such disposition occurs within two (2) years from the Offering Date or within one (1) year from the
Purchase Date on which such shares were purchased (the “Notice Period”). The Company may, at any
time during the Notice Period, place a legend or legends on any certificate representing shares
acquired pursuant to this Plan requesting the Company’s transfer agent to notify the Company of any
transfer of the shares. The obligation of the participant to provide such notice shall continue
notwithstanding the placement of any such legend on the certificates.

     18. No Rights to Continued Employment. Neither this Plan nor the grant of any option hereunder
shall confer any right on any employee to remain in the employ of the Company or any Participating
Subsidiary, or restrict the right of the Company or any Participating Subsidiary to terminate such
employee’s employment.

     19. Equal Rights And Privileges. All eligible employees shall have equal rights and privileges
with respect to this Plan so that this Plan qualifies as an “employee stock purchase plan” within
the meaning of Section 423 or any successor provision of the Code and the related regulations. Any
provision of this Plan which is inconsistent with Section 423 or any successor provision of the
Code shall, without further act or amendment by the Company, the Committee or the Board, be
reformed to comply with the requirements of Section 423. This Section 19 shall take precedence
over all other provisions in this Plan.

     20. Notices. All notices or other communications by a participant to the Company under or in
connection with this Plan shall be deemed to have been duly given when received in the form
specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

     21. Term; Stockholder Approval. After this Plan is adopted by the Board, this Plan will become
effective on the First Offering Date (as defined above). This Plan shall be approved by the
stockholders of the Company, in any manner permitted by applicable corporate law, within twelve
(12) months before or after the date this Plan is adopted by the Board. No purchase of shares
pursuant to this Plan shall occur prior to such stockholder approval. This Plan shall continue
until the earlier to occur of (a) termination of this Plan by the Board (which termination may be
effected by the Board at any time), (b) issuance of all of the shares of Common Stock reserved for
issuance under this Plan, or (c) ten (10) years from the adoption of this Plan by the Board.

     22. Designation of Beneficiary.

     (a) A participant may file a written designation of a beneficiary who is to receive any
shares and cash, if any, from the participant’s account under this Plan in the event of such
participant’s death subsequent to the end of a Purchase Period but prior to delivery to him of such
shares and cash. In addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant’s account under this Plan in the event of such
participant’s death prior to a Purchase Date.

     (b) Such designation of beneficiary may be changed by the participant at any time by written
notice. In the event of the death of a participant and in the absence of a beneficiary validly
designated under this Plan who is living at the time of such participant’s death, the Company shall
deliver such shares or cash to the executor or administrator of the estate of the participant, or
if no such executor or administrator has been appointed (to the knowledge

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of the Company), the
Company, in its discretion, may deliver such shares or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

     23. Conditions Upon Issuance of Shares; Limitation on Sale of Shares. Shares shall not be issued
with respect to an option unless the exercise of such option and the issuance and delivery of such
shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign,
including, without limitation, the Securities Act, the Securities Exchange Act of 1934, as amended,
the rules and regulations promulgated thereunder, and the requirements of any stock exchange or
automated quotation system upon which the shares may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such compliance.

     24. Applicable Law. The Plan shall be governed by the substantive laws (excluding the conflict of
laws rules) of the State of California.

     25. Amendment or Termination of this Plan. The Board may at any time amend, terminate or extend
the term of this Plan, except that any such termination cannot affect options previously granted
under this Plan, nor may any amendment make any change in an option previously granted which would
adversely affect the right of any participant, nor may any amendment be made without approval of
the stockholders of the Company obtained in accordance with Section 21 above within twelve (12)
months of the adoption of such amendment (or earlier if required by Section 21) if such amendment
would:

     (a) increase the number of shares that may be issued under this Plan; or

     (b) change the designation of the employees (or class of employees) eligible for participation
in this Plan.

     Notwithstanding the foregoing, the Board may make such amendments to the Plan as the Board
determines to be advisable, if the continuation of the Plan or any Offering Period would result in
financial accounting treatment for the Plan that is different from the financial accounting
treatment in effect on the date this Plan is adopted by the Board.

8exv10w03

 

EXHIBIT 10.03

Peninsula Regional

Commercial Banking

P.O. Box 150

Palo Alto, CA 94302

650 855-7662

650 328-0814 Fax

July 25, 2005

Interwoven, Inc.

803 11th Street

Sunnyvale, CA 94089

Dear Mr. Calonico:

     This letter amendment (this “Amendment”) is to confirm the changes agreed upon between WELLS
FARGO BANK, NATIONAL ASSOCIATION (“Bank”) and INTERWOVEN, INC. (“Borrower”) to the terms and
conditions of that certain letter agreement between Bank and Borrower dated as of June 1, 2004, as
amended from time to time (the “Agreement”). For valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Bank and Borrower hereby agree that the Agreement
shall be amended as follows to reflect said changes.

     1. The Agreement is hereby amended (a) by deleting “July 31, 2005” as the last day on which
Bank will issue Letters of Credit under the Letter of Credit Line, and by substituting for said
date “July 31, 2006.”

     2. In consideration of the changes set forth herein and as a condition to the effectiveness
hereof, immediately upon signing this Amendment Borrower shall pay to Bank a non-refundable fee of
$3,200.00.

     3. Except as specifically provided herein, all terms and conditions of the Agreement remain in
full force and effect, without waiver or modification. All terms defined in the Agreement shall
have the same meaning when used herein. This Amendment and the Agreement shall be read together, as
one document.

     4. Borrower hereby remakes all representations and warranties contained in the Agreement and
reaffirms all covenants set forth therein. Borrower further certifies that as of the date of
Borrower’s acknowledgment set forth below there exists no default or defined event of default under
the Agreement or any promissory note or other contract, instrument or document executed in
connection therewith, nor any condition, act or event which with the giving of notice or the
passage of time or both would constitute such a default or defined event of default.

 

 

July 25, 2005

Page 2

     Your acknowledgment of this Amendment shall constitute acceptance of the foregoing terms and
conditions.

WELLS FARGO BANK,

NATIONAL ASSOICATION

	 	 	 
	By:

	 	/s/ Manao Keegan
	

	 	 
	

	 	Manao Keegan

Vice President

Acknowledged and accepted as of 8/8/2005:

	 	 	 	 	 
	Interwoven, Inc.
	 
	By:	 	/s/ John Calonico	 	 
	 	 	John Calonico
	 	 
	 	 	Senior Vice President	 	 

 

 

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Statement of Purpose for an Extension of Credit Secured By Margin Stock

(Federal Reserve Form U-l)

Wells Fargo Bank, National Association

Name of Bank

This report is required by law (15 U.S.C. 78g and 78w, 12 CFR 221).

Public reporting burden for this collection of information is estimated to average 4.2 minutes
(0.07 hours) per response, including the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding this burden estimate, including suggestions for reducing this
burden, to Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, N. W.,
Washington, D. C. 20551; and to the Office of Management and Budget, Paperwork Reduction Project
(7100-0115), Washington, D. C. 20503.

INSTRUCTIONS

	1.	 	This form must be completed when a bank extends credit in excess of $100,000.00 secured
directly or indirectly, in whole or in part, by any margin stock.
	 
	2.	 	The term “margin stock” is defined in Regulation U (12 CFR 221) and includes, principally:
(1) stocks that are registered on a national securities exchange or that are on the Federal
Reserve Board’s List of Marginable OTC Stocks; (2) debit securities (bonds) that are
convertible into margin stocks; (3) any over-the-counter security designated as qualified for
trading in the National Market System under a designation plan approved by the Securities and
Exchange Commission (NMS security); and (4) shares of mutual funds, unless 95 per cent of the
assets of the fund are continuously invested in U.S. government, agency, state, or municipal
obligations
	 
	3.	 	Please print or type (if space is inadequate, attach separate sheet.)

PART 1. To be completed by borrower(s).

	1.	 	What is the amount of the credit being extended? $16,000,000.00
	 
	2.	 	Will any part of this credit be used to purchase or carry margin stock? o Yes þ No

If the answer is “no”, describe the specific purpose of the credit To issue Standby Letter of
Credit

I (we) have read this form and certify that to the best of my (our) knowledge and belief the
information given is true, accurate, and compete, and that the margin stock and any other
securities collateralizing this credit are authentic, genuine, unaltered, and not stolen, forged,
or counterfeit.

	 	 	 	 	 	 	 
	BORROWER: INTERWOVEN, INC.	 	 	 	 
	By:

	 	/s/ John Calonico
	 	By:
	 	John E. Calonico, JR.
	

	 	 
	 	 	 	 
	

	 	John Calonico	 	 	 	 
	Title:

	 	 	 	Title:
	 	Chief Financial Officer
	

	 	 
	 	 	 	 
	

	 	Senior Vice President	 	 	 	 

This form should not be signed blank.

     A borrower who falsely certifies the purpose of a credit on this form or otherwise willfully or
intentionally evades the provisions of Regulation U will also violate Federal Reserve Regulation X,
“Borrowers of Obtain Securities Credit.”

 

 

	 	 	 
	

	 	SECURITY AGREEMENT
	WELLS FARGO

	 	SECURITIES ACCOUNT
	 

1. GRANT OF SECURITY INTEREST. For valuable consideration, the undersigned Interwoven, Inc., or any
of them (“Debtor), hereby grants and transfers to WELLS FARGO BANK. NATIONAL ASSOCIATION (“Bank”) a
security interest in (a) Debtor’s account no. 10427400 (whether held in Debtor’s name or as a Bank
collateral account for the benefit of Debtor), any sub-account thereunder or consolidated
therewith, and all replacements or substitutions therefor, including any account resulting from a
renumbering or other administrative re-identification thereof (collectively, the “Securities
Account”) maintained with Wells Capital Management Incorporated (“Intermediary”), (b) all financial
assets credited to the Securities Account, (c) all security entitlements with respect to the
financial assets credited to the Securities Account, and (d) any and all other investment property
or assets maintained or recorded in the Securities Account (with all the foregoing defined as
“Collateral”), together with whatever is receivable or received when any of the Collateral or
proceeds thereof are sold, collected, exchanged or otherwise disposed of, whether such disposition
is voluntary or involuntary, including without limitation, (i) all rights to payment, including
returned premiums, with respect to any insurance relating to any of the foregoing, (ii) all rights
to payment with respect to any claim or cause of action affecting or relating to any of the
foregoing, and (iii) all stock rights, rights to subscribe, stock splits, liquidating dividends,
cash dividends, dividends paid in stock, new securities or other property of any kind which Debtor
is or may hereafter be entitled to receive on account of any securities pledged hereunder,
including without limitation, stock received by Debtor due to stock splits or dividends paid in
stock or sums paid upon or in respect of any securities pledged hereunder upon the liquidation or
dissolution of the issuer thereof (hereinafter called “Proceeds”). Except as otherwise expressly
permitted herein, in the event Debtor receives any such Proceeds, Debtor will hold the same in
trust on behalf of and for the benefit of Bank and will immediately deliver all such Proceeds to
Bank in the exact form received, with the endorsement of Debtor if necessary and/or appropriate
undated stock powers duly executed in blank, to be held by Bank as part of the Collateral, subject
to all terms hereof. As used herein, the terms “security entitlement,” “financial asset” and
“investment property” shall have the respective meanings set forth in the California Uniform
Commerical Code.

2. OBLIGATIONS SECURED. The obligations secured hereby are the payment and performance of: (a) all
present and future Indebtedness of Debtor to Bank; (b) all obligations of Debtor and rights of Bank
under this Agreement; and (c) all present and future obligations of Debtor to Bank of other kinds.
The word “Indebtedness” is used herein in its most comprehensive sense and includes any and all
advances, debts, obligations and liabilities of Debtor, or any of them, heretofore, now or
hereafter made, incurred or created, whether voluntary or involuntary and however arising, whether
due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and
whether Debtor may be liable individually or jointly, or whether recovery upon such indebtedness
may be or hereafter becomes unenforceable.

3. TERMINATION. This Agreement will terminate upon the performance of all obligations of Debtor to
Bank, including without limitation, the payment of all Indebtedness of Debtor to Bank, and the
termination of all commitments of Bank to extend credit to Debtor, existing at the time Bank
receives written notice from Debtor of the termination of this Agreement.

4. OBLIGATIONS OF BANK. Bank has no obligation to make any loans hereunder. Any money received by
Bank in respect of the Collateral may be deposited, at Bank’s option, into a non-interest bearing
account over which Debtor shall have no control, and the same shall, for all purposes, be deemed
Collateral hereunder. Bank shall have no duty to take any steps necessary to preserve the rights of
Debtor against prior parties, or to initiate any action to protect against the possibility of a
decline in the market value of the Collateral or Proceeds. Bank shall not be obligated to take any
action with respect to the Collateral or Proceeds requested by Debtor unless such request is made
in writing and Bank determines, in its sole discretion, that the requested action would not
unreasonably jeopardize the value of the Collateral and Proceeds as security for the Indebtedness.

5. REPRESENTATIONS AND WARRANTIES. Debtor represents and warrants to Bank that: (a) Debtor’s legal
name is exactly as set forth on the first page of this Agreement, and all of Debtor’s
organizational documents or agreements delivered to Bank are complete and accurate in every
respect; (b) Debtor is the owner of the Collateral and Proceeds; (c) Debtor has the exclusive right
to grant a security interest in the Collateral and Proceeds; (d) all Collateral and Proceeds are
genuine, free from liens, adverse claims, setoffs, default, prepayment, defenses

 

 

and conditions precedent of any kind or character, except the lien created hereby or as otherwise
agreed to by Bank, or heretofore disclosed by Debtor to Bank, in writing; (e) all statements
contained herein and, where applicable, in the Collateral, are true and complete in all material
respects; (f) no financing statement or control agreement covering any of the Collateral or
Proceeds, and naming any secured party other than Bank, exists or is on file in any public office
or remains in effect; (g) no person or entity, other than Debtor, Bank and Intermediary, has any
interest in or control over the Collateral; and (h) specifically with respect to Collateral and
Proceeds consisting of investment securities, instruments, chattel paper, documents, contracts,
insurance policies or any like property, (i) all persons appearing to be obligated thereon have
authority and capacity to contract and are bound as they appear to be, and (ii) the same comply
with applicable laws concerning form, content and manner of preparation and execution.

6. COVENANTS OF DEBTOR.

6.1 Debtor Agrees in general: (a) to pay Indebtedness secured hereby when due: (b) to indemnify
Bank against all losses, claims, demands, liabilities and expenses of every kind caused by property
subject hereto; (c) to pay all costs and expenses, including reasonable attorneys’ fees, incurred
by Bank in the perfection and preservation of the Collateral or Bank’s interest therein and/or the
realization, enforcement and exercise of Bank’s rights, powers and remedies hereunder; (d) to
permit Bank to exercise its powers; (e) to execute and deliver such documents as Bank deems
necessary to create, perfect and continue the security interests contemplated hereby; (f) not to
change its name, and as applicable, its chief executive office, its principal residence or the
jurisdiction in which it is organized and/or registered without giving Bank prior written notice
thereof; (g) not to change the places where Debtor keeps any Collateral or Debtor’s records
concerning the Collateral and Proceeds without giving Bank prior written notice of the address to
which Debtor is moving same; and (h) to cooperate with Bank in perfecting all security interests
granted herein and in obtaining such agreements from third parties as Bank deems necessary, proper
or convenient in connection with the preservation, perfection or enforcement of any of its rights
hereunder.

6.2 Debtor agrees with regard to the Collateral and Proceeds, unless Bank agrees otherwise in
writing: (a) that Bank is authorized to file financing statements in the name of Debtor to perfect
Bank’s security interest in Collateral and Proceeds; (b) not to permit any security interest in or
lien on the Collateral or Proceeds, except in favor of Bank and except liens in favor of
Intermediary to the extent expressly permitted by Bank in writing; (c) not to hypothecate or permit
the transfer by operation of law of any of the Collateral or Proceeds or any interest therein; (d)
to keep, in accordance with generally accepted accounting principles, complete and accurate records
regarding all Collateral and Proceeds, and to permit Bank to inspect the same and make copies
thereof at any reasonable time; (e) if requested by Bank, to receive and use reasonable diligence
to collect Proceeds, in trust and as the property of Bank, and to immediately endorse as
appropriate and deliver such Proceeds to Bank daily in the exact form in which they are received
together with a collection report in form satisfactory to Bank; (f) in the event Bank elects to
receive payments of Proceeds hereunder, to pay all expenses incurred by Bank in connection
therewith, including expenses of accounting, correspondence, collection efforts, filing, recording,
record keeping and expenses incidental thereto; (g) to provide any service and do any other acts
which may be necessary to keep all Collateral and Proceeds free and clear of all defenses, rights
of offset and counterclaims; and (h) if the Collateral or Proceeds consists of securities and so
long as no Event of Default exists, to vote said securities and to give consents, waivers and
ratifications with respect thereto, provided that no vote shall be cast or consent, waiver or
ratification given or action taken which would impair Bank’s interests in the Collateral and
Proceeds or be inconsistent with or violate any provisions of this Agreement. Debtor further agrees
that any party now or at any time hereafter authorized by Debtor to advise or otherwise act with
respect to the Securities Account shall be subject to all terms and conditions contained herein and
in any control, custodial or other similar agreement at any time in effect among Bank, Debtor and
Intermediary relating to the Collateral.

7. POWERS OF BANK. Debtor appoints Bank its true attorney-in-fact to perform any of the following
powers, which are coupled with an interest, are irrevocable until termination of this Agreement and
may be exercised from time to time by Bank’s officers and employees, or any of them, whether or not
Debtor is in default: (a) to perform any obligation of Debtor hereunder in Debtor’s name or
otherwise; (b) to notify any person obligated on any security, instrument or other document subject
to this Agreement of Bank’s rights hereunder; (c) to collect by legal proceedings or otherwise all
dividends, interest, principal or other sums now or hereafter payable upon or on account of the
Collateral or Proceeds; (d) to enter into any extension, modification, reorganization, deposit,
merger or consolidation agreement, or any other agreement relating to or affecting the Collateral
or Proceeds, and in connection therewith to deposit or surrender control of the Collateral and
Proceeds, to accept other property in

 

 

exchange for the Collateral and Proceeds, and to do and perform such acts and things as Bank may
deem proper, with any money or property received in exchange for the Collateral or Proceeds, at
Bank’s option, to be applied to the Indebtedness or held by Bank under this Agreement; (e) to make
any compromise or settlement Bank deems desirable or proper in respect of the Collateral and
Proceeds; (f) to insure, process and preserve the Collateral and Proceeds; (g) to exercise rights,
powers and remedies which Debtor would have, but for this Agreement, with respect to all Collateral
and Proceeds subject hereto; and (h) to do all acts and things and execute all documents in the
name of Debtor or otherwise, deemed by Bank as necessary, proper and convenient in connection with
the preservation, perfection or enforcement of its rights hereunder. To effect the purposes of this
Agreement or otherwise upon instructions of Debtor, or any of them, Bank may cause any Collateral
and/or Proceeds to be transferred to Bank’s name or the name of Bank’s nominee. If an Event of
Default has occurred and is continuing, any or all Collateral and/or Proceeds consisting of
securities may be registered, without notice, in the name of Bank or its nominee, and thereafter
Bank or its nominee may exercise, without notice, all voting and corporate rights at any meeting of
the shareholders of the issuer thereof, any and all rights of conversion, exchange or subscription,
or any other rights, privileges or options pertaining to such Collateral and/or Proceeds, all as if
it were the absolute owner thereof. The foregoing shall include, without limitation, the right of
Bank or its nominee to exchange, at its discretion, any and all Collateral and/or Proceeds upon the
merger, consolidation, reorganization, recapitalization or other readjustment of the issuer
thereof, or upon the exercise by the issuer thereof or Bank of any right, privilege or option
pertaining to any shares of the Collateral and/or Proceeds, and in connection therewith, the right
to deposit and deliver any and all of the Collateral and/or Proceeds with any committee,
depository, transfer agent, registrar or other designated agency upon such terms and conditions as
Bank may determine. All of the foregoing rights, privileges or options may be exercised without
liability on the park of Bank or its nominee except to account for property actually received by
Bank. Bank shall have no duty to exercise any of the foregoing, or any other rights, privileges or
options with respect to the Collateral or Proceeds and shall not be responsible for any failure to
do so or delay in so doing.

8. PAYMENT OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Debtor agrees to pay, prior to
delinquency, all insurance premiums, taxes, charges, liens and assessments against the Collateral
and Proceeds, and upon the failure of Debtor to do so, Bank at its option may pay any of them and
shall be the sole judge of the legality or validity thereof and the amount necessary to discharge
the name. Any such payments made by Bank shall be obligations of Debtor to Bank, due and payable
immediately upon demand, together with interest at a rate determined in accordance with the
provisions of this Agreement, and shall be secured by the Collateral and Proceeds, subject to all
terms and conditions of this Agreement.

9. EVENTS OF DEFAULT. The occurrence of any of the following shall constitute an “Event of Default”
under this Agreement: (a) any default in the payment or performance of any obligation, or any
defined event of default, under (i) any contract or instrument evidencing any Indebtedness, (ii)
any other agreement between Debtor and Bank, including without limitation any loan agreement,
relating to or executed in connection with any Indebtedness, or (iii) any control, custodial or
other similar agreement in effect among Bank. Debtor and Intermediary relating to the Collateral;
(b) any representation or warranty made by Debtor herein shall prove to be incorrect, false or
misleading in any material respect when made, (c) Debtor shall fail to observe or perform any
obligation or agreement contained herein; (d) any impairment of the rights of Bank in any
Collateral or Proceeds or any attachment or like levy on any property of Debtor; and (e) Bank, in
good faith, believes any or all of the Collateral and/or Proceeds to be in danger of misuse,
dissipation, commingling, loss, theft, damage or destruction, or otherwise in jeopardy or
unsatisfactory in character or value.

10. REMEDIES. Upon the occurrence of any Event of Default, Bank shall have the right to declare
immediately due and payable all or any Indebtedness secured hereby and to terminate any commitments
to make loans or otherwise extend credit to Debtor. Bank shall have all other rights, powers,
privileges and remedies granted to a secured party upon default under the California Uniform
Commerical Code or otherwise provided by law, including without limitation, the right (a) to
contact all persons obligated to Debtor on any Collateral or Proceeds and to instruct such persons
to deliver all Collateral and/or Proceeds directly to Bank, and (b) to sell, lease, license or
otherwise dispose of any or all Collateral All rights, powers, privileges and remedies of Bank
shall be cumulative. No delay, failure or discontinuance of Bank in exercising any right, power,
privilege or remedy hereunder shall affect or operate as a waiver of such right, power, privilege
or remedy; nor shall any single or partial exercise of any such right, power, privilege or remedy
preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any
other right, power, privilege or remedy. Any waiver, permit, consent or approval of any kind by

 

 

Bank of any default hereunder, or any such waiver of any provisions or conditions hereof, must be
in writing and shall be effective only to the extent set forth in writing. It is agreed that public
or private sales or other dispositions, for cash or on credit, to a wholesaler or retailer or
investor, or user of property of the types subject to this Agreement, or public auctions, are all
commercially reasonable since differences in the prices generally realized in the different kinds
of dispositions are ordinarily offset by the differences in the costs and credit risks of such
dispositions.

While an Event of Default exists: (a) Debtor will not dispose of any Collateral or Proceeds except
on terms approved by Bank; (b) Bank may appropriate the Collateral and apply all Proceeds toward
repayment of the Indebtedness in such order of application as Bank may from time to time elect; (c)
Bank may take any action with respect to the Collateral contemplated by any control, custodial or
other similar agreement then in effect among Bank, Debtor and Intermediary; and (d) at Bank’s
request, Debtor will assemble and deliver all books and records pertaining to the Collateral or
Proceeds to Bank at a reasonably convenient place designated by Bank. For any Collateral or
Proceeds consisting of securities, Bank shall have no obligation to delay a disposition of any
portion thereof for the period of time necessary to permit the issuer thereof to register such
securities for public sale under any applicable state or Federal law, even if the issuer thereof
would agree to do so. Debtor further agrees that Bank shall have no obligation to process or
prepare any Collateral for sale or other disposition.

11. DISPOSITION OF COLLATERAL AND PROCEEDS; TRANSFER OF INDEBTEDNESS. In disposing Collateral
hereunder, Bank may disclaim all warranties of title, possession, quiet enjoyment and the like. Any
proceeds of any disposition of any Collateral or Proceeds, or any part thereof, may be applied by
Bank to the payment of expenses incurred by Bank in connection with the foregoing, including
reasonable attorneys’ fees, and the balance of such proceeds may be applied by Bank toward the
payment of the Indebtedness in such order of application as Bank may from time to time elect. Upon
the transfer of all or any part of the Indebtedness, Bank may transfer all or any part of the
Collateral or Proceeds and shall be fully discharged thereafter from all liability and
responsibility with respect to any of the foregoing so transferred, and the transferee shall be
vested with all rights and powers of Bank hereunder with respect to any of the foregoing so
transferred; but with respect to any Collateral or Proceeds not so transferred Bank shall retain
all rights, powers, privileges and remedies herein given.

12. STATUTE OF LIMITATIONS. Until all Indebtedness shall have been paid in full and all commitments
by Bank to extend credit to Debtor have been terminated, the power of sale or other disposition and
all other rights, powers, privileges and remedies granted to Bank hereunder shall continue to exist
and may be exercised by Bank at any time and from time to time irrespective of the fact that the
Indebtedness or any part thereof may have become barred by any statute of limitations, or that the
personal liability of Debtor may have ceased, unless such liability shall have ceased due to the
payment in full of all Indebtedness secured hereunder.

13. MISCELLANEOUS. When there is more than one Debtor named herein: (a) the word “Debtor” shall
mean all or any one or more of them as the context requires; (b) the obligations of each Debtor
hereunder are joint and several; and (c) until all Indebtedness shall have been paid in full, no
Debtor shall have any right of subrogation or contribution, and each Debtor hereby waives any
benefit of or right to participate in any of the Collateral or Proceeds or any other security now
or hereafter held by Bank. Debtor hereby waives any right to require Bank to (i) proceed against
Debtor or any other person, (ii) proceed against or exhaust any security from Debtor or any other
person, (iii) perform any obligation of Debtor with respect to any Collateral or Proceeds, and (d)
make any presentment or demand, or give any notice of nonpayment or nonperformance, protest, notice
of protest or notice of dishonor hereunder or in connection with any Collateral or Proceeds. Debtor
further waives any right to direct the application of payments or security for any Indebtedness of
Debtor or indebtedness of customers of Debtor.

14. NOTICES. All notices, requests and demands required under this Agreement must be in writing,
addressed to Bank at the address specified in any other loan documents entered into between Debtor
and Bank and to Debtor at the address of its chief executive office (or principal residence, if
applicable) specified below or to such other address as any party may designate by written notice
to each other party, and shall be deemed to have been given or made as follows: (a) if personally
delivered, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or 3 days
after deposit in the U. S. mail, first class and postage prepaid; and (c) if sent by telecopy, upon
receipt.

15. COSTS, EXPENSES AND ATTORNEYS’ FEES. Debtor shall pay to Bank immediately upon demand the full
amount of all payments, advances, charges, costs and expenses, including reasonable attorneys’ fees
(to include

 

 

outside counsel fees and all allocated costs of Bank’s in-house counsel), expended or incurred by
Bank in exercising any right, power, privilege or remedy conferred by this Agreement or in the
enforcement thereof, whether incurred at the trial or appellate level, in an arbitration proceeding
or otherwise, and including any of the foregoing incurred in connection with any bankruptcy
proceeding (including without limitations, any adversary proceeding, contested matter or motion
brought by Bank or any other person) relating to Debtor or in any way affecting any of the
Collateral or Bank’s ability to exercise any of its rights or remedies with respect thereto. All of
the foregoing shall be paid by Debtor with interest from the date of demand until paid in full at a
rate per annum equal to the greater of ten percent (10%) or Bank’s Prime Rate in effect from time
to time.

16. SUCCESSORS; ASSIGNS; AMENDMENT. This Agreement shall be binding upon and inure to the benefit
of the heirs, executors, administrators, legal representatives, successors and assigns of the
parties, and may be amended or modified only in writing signed by Bank and Debtor.

17. OBLIGATIONS OF MARRIED PERSONS. Any married person who signs this Agreement as Debtor hereby
expressly agrees that recourse may be had against his or her separate property for all his or her
Indebtedness to Bank secured by the Collateral and Proceeds under this Agreement.

18. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be held to be prohibited
by or invalid under applicable law, such provision stall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or any remaining
provisions of this Agreement.

19. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of
the State of California.

20. ADDENDUM. Additional terms and conditions relating to the Securities Account are set forth in
an Addendum attached hereto and incorporated herein by this reference.

Debtor warrants that its chief executive office (or principal residence, if applicable) is located
at the following address: 803 11th Street, Sunnyvale, CA 94089-4731

IN WITNESS WHEREOF, this Agreement has been duly executed as of July 25, 2005.

Interwoven, Inc.

	 	 	 	 	 
	By:

	 	/s/ John Calonico
	 	 
	

	 	 	 	 
	

	 	John Calonico, Senior Vice President	 	 

 

 

ADDENDUM TO SECURITY AGREEMENT: SECURITIES ACCOUNT

     THIS ADDENDUM is attached to and made a part of that certain Security Agreement: Securities
Account executed by INTERWOVEN, INC. (“Debtor”) in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION
(“Bank”), dated as of July 25, 2005 (the “Agreement”).

     The following provisions are hereby incorporated into the Agreement:

     1. Securities Account Activity. So long as no Event of Default exists, Debtor, or any
party authorized by Debtor to act with respect to the Securities Account, may (a) receive payments
of interest and/or cash dividends earned on financial assets maintained in the Securities Account,
and (b) trade financial assets maintained in the Securities Account. Without Bank’s prior written
consent, except as permitted by the preceding sentence, neither Debtor nor any party other than
Bank may withdraw or receive any distribution of any Collateral from the Securities Account, The
Collateral Value of the Securities Account shall at all times be equal to or greater than one
hundred percent (100%) of the Letter of Credit Line amount, including the amount of all issued and
outstanding letters of credit if any, secured hereby. In the event that the Collateral Value, for
any reason and at any time, is less than the required amount, Debtor shall promptly make a
principal reduction on the Indebtedness or deposit additional assets of a nature satisfactory to
Bank into the Securities Account, in either case in amounts or with values sufficient to achieve
the required Collateral Value.

     2. “Collateral Value” means the percentage set forth below of the lower of the face or
market value, or the lower of the face or redemption value, as appropriate, for each type of
investment property held in the Securities Account at the time of computation, with such value and
the classification of any particular investment property in all instances determined by Bank in its
sole discretion, and excluding from such computation (a) all WF Securities and Collective
Investment Funds, (b) any stock with a market value of $10.00 or less, and (c) all investment
property from an issuer if Bank determines such issuer to be ineligible.

	 	 	 
	Type of Investment Property	 	Percentage
	 
	 	 
	Cash
	 	100%
	 
	 	 
	Cash Equivalents
	 	95%
	 
	 	 
	U.S. Government Bills, Notes and U.S. Government Sponsored Agency Securities:
	 	 
	 
	 	 
	(a) with maturities less than or equal to 5 years
	 	90%
	 
	 	 
	Corporate and Municipal Bonds and Notes:
	 	 
	 
	 	 
	(a) rated AAA/Aaa, AA/Aa or SP-1 by a nationally recognized
rating agency with maturities less than or equal to 5 years
	 	85%
	 
	 	 
	Commercial Paper:
	 	 
	 
	 	 
	(a) rated A1 or P1 by a nationally recognized rating agency
	 	80%

     3. Exclusion from Collateral. Notwithstanding anything herein to the contrary, the
terms “Collateral” and “Proceeds” do not include, and Bank disclaims a security interest in all WF
Securities and Collective Investment Funds now or hereafter maintained in the Securities Account.

     4. “Collective Investment Funds” means collective investment funds as described in 12
CFR 9.18 and includes, without limitation, common trust funds maintained by Bank for the exclusive
use of its fiduciary clients.

 

 

     5. “WF Securities” means stock, securities or obligations of Wells Fargo & Company or
of any affiliate thereof (as the term affiliate is defined in Section 23A of the Federal Reserve
Act (12 USC 371(c), as amended from time to time).

     IN WITNESS WHEREOF, this Addendum has been executed as of the same date as the Agreement.

	 	 	 	 	 	 	 
	Interwoven, Inc.	 	WELLS FARGO BANK,
	 	 	 	 	 NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	By:

	 	/s/ John Calonico
	 	By:
	 	/s/ Manao Keegan
	

	 	 
	 	 	 	 
	

	 	John Calonico
	 	 	 	Manao Keegan
	

	 	Senior Vice President
	 	 	 	Vice President

 

 

	 	 	 
	

	 	SECURITIES ACCOUNT CONTROL AGREEMENT
	WELLS FARGO

	 	(Wells Fargo Affiliate Intermediary)
	 

THIS SECURITIES ACCOUNT CONTROL AGREEMENT (this “Agreement”) is entered into as of July 25, 2005,
by and among Interwoven, Inc. (“Customer”), Wells Capital Management Incorporated (“Intermediary”),
and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Secured Party”).

RECITALS

A. Customer maintains that certain account no. 10427400 , and may now or hereafter maintain
sub-accounts thereunder or consolidated therewith (collectively, the “Securities Account”) with
Intermediacy pursuant to an agreement between Intermediary and Customer dated as of June 1, 2004
(the “Account Agreement”), and Customer has granted to Secured Party a security interest in the
Securities Account and all financial assets and other property now or at any time hereafter held in
the Securities Account.

B. Secured Party, Customer and Intermediary have agreed to enter into this Agreement to perfect
Secured Party’s security interests in the Collateral, as defined below.

NOW, THEREFORE, in consideration of their mutual covenants and promises, the parties agree as
follows:

1. DEFINITIONS. As used herein:

1.1 the term “Collateral” shall mean: (a) the Securities Account; (b) all financial assets credited
to the Securities Account; (c) all security entitlements with respect to the financial assets
credited to the Securities Account; (d) any and all other investment property or assets maintained
or recorded in the Securities Account; and (e) all replacements or substitutions for, and proceeds
of the sale or other disposition of, any of the foregoing, including without limitation, cash
proceeds; and

1.2 the terms “investment property,” “entitlement order,” “financial asset” and “security
entitlement” shall have the respective meanings set forth in the California Uniform Commercial
Code. The parties hereby expressly agree that all property, including without limitation, cash,
certificates of deposit and mutual funds, at any time held in the Securities Account is to be
treated as a “financial asset.”

2. AGREEMENT FOR CONTROL. Intermediary is authorized by Customer and agrees to comply with all
entitlement orders originated by Secured Party with respect to the Securities Account, and all
other requests or instructions from Secured Party regarding disposition and/or delivery of the
Collateral, without further consent or direction from Customer or any other party

3. CUSTOMER’S RIGHTS WITH RESPECT TO THE COLLATERAL.

3.1 Until Intermediary is notified otherwise by Secured Party: (a) Customer, or any party
authorized by Customer to act with respect to the Securities Account, may give trading instructions
to Intermediary with respect to Collateral in the Securities Account; and (b) Intermediary may
distribute to Customer or any other party in accordance with Customer’s directions only that
portion of the Collateral which consists of interest and/or cash dividends earned on financial
assets maintained in the Securities Account.

3.2 Without Secured Party’s prior written consent, except to the extent permitted by the preceding
paragraph: (a) neither Customer nor any party other than Secured Party may withdraw any Collateral
from the Securities Account; and (b) intermediary will not comply with any entitlement order or
request to withdraw any Collateral from the Securities Account given by any party other than
Secured Party.

3.3 Upon receipt of either written or oral notice from Secured Party: (a) intermediary shall
promptly cease complying with entitlement orders and other instructions concerning the Collateral,
including the Securities Account, from all parties other than Secured Party; and (b) Intermediary
shall not make any further distributions of any Collateral to any party other than Secured Party,
nor permit any further voluntary changes in the financial assets.

 

 

4. INTERMEDIARY’S REPRESENTATIONS AND WARRANTIES. Intermediary represents and warrants to Secured
Party that:

4.1 The Securities Account is maintained with Intermediary solely in Customer’s name.

4.2 Intermediary has no knowledge of any claim to, security interest in or lien upon any of the
Collateral, except: (a) the security interests in favor of Secured Party; and (b) Intermediary’s
liens securing fees and charges, or payment for open trade commitments, as described in the last
paragraph of this Section.

4.3 Any claim to, security interest in or lien upon any of the Collateral which Intermediary now
has or at any time hereafter acquires shall be junior and subordinate to the security interests of
Secured Party in the Collateral, except for Intermediary’s liens securing: (a) fees and charges
owed by Customer with respect to the operation of the Securities Account; and (b) payment owed to
Intermediary for open trade commitments for purchases in and for the Securities Account.

5. AGREEMENTS OF INTERMEDIARY AND CUSTOMER. Intermediary and Customer agree that:

5.1 Intermediary shall flag its books, records and systems to reflect Secured Party’s security
interests in the Collateral, and shall provide notice thereof to any party making inquiry as to
Customer’s accounts with Intermediary to whom or which Intermediary is legally required or
permitted to provide information.

5.2 Intermediary shall send copies of all statements relating to the Securities Account
simultaneously to Customer and Secured Party,

5.3 Intermediary shall promptly notify Secured Party if any other party asserts any claim to,
security interest in or lien upon any of the Collateral, and intermediary shall not enter into any
control, custodial or other similar agreement with any other party that would create or acknowledge
the existence of any such other claim, security interest or lien.

5.4 Without Secured Party’s prior written consent, Intermediary and Customer shall not amend or
modify the Account Agreement, other than: (a) amendments to reflect ordinary and reasonable changes
in intermediary’s fees and charges for handling the Securities Account; and (b) operational changes
initiated by Intermediary as long as they do not alter any of Secured Party’s rights hereunder.

5.5 Neither Intermediary nor Customer shall terminate the Account Agreement without giving 30 days’
prior written notice to Secured Party.

6. MISCELLANEOUS.

6.1 This Agreement shall not create any obligation or duty of Intermediary except as expressly set
forth herein.

6.2 As to the matters specifically the subject of this Agreement, in the event of any conflict
between this Agreement and the Account Agreement or any other agreement between Intermediary and
Customer, the terms of this Agreement shall control.

6.3 All notices, requests and demands which any party is required or may desire to give to any
other party under any provision of this Agreement must be in writing (unless otherwise specifically
provided) and delivered to each party at the address or facsimile number set forth below its
signature, or to such other address or facsimile number as any party may designate by written
notice to all other parties. Each such notice, request and demand shall be deemed given or made as
follows: (a) if sent by hand delivery, upon delivery; (b) if sent by facsimile, upon receipt; and
(c) if sent by mail, upon the earlier of the date of receipt or 3 days after deposit in the U.S.
mail, first class and postage prepaid.

6.4 This Agreement shall be binding upon and inure to the benefit of the heirs, executors,
administrators, legal representatives, successors and assigns of the parties; provided however,
that Intermediary may not assign its

 

 

obligations hereunder without Secured Party’s prior written consent. This Agreement may be amended
or modified only in writing signed by all parties hereto.

6.5 This Agreement shall terminate upon: (a) Intermediary’s receipt of written notice from Secured
Party expressly stating that Secured Party no longer claims any security interest in the
Collateral; or (b) termination of the Account Agreement pursuant to the terms hereof, and
Intermediary’s delivery of all Collateral to Secured Party or its designee in accordance with
Secured Party’s written instructions.

6.6 This Agreement shall be governed by and construed in accordance with the laws of the State of
California.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

	 	 	 	 	 	 	 
	Wells Capital Management Incorporated	 	WELLS FARGO BANK
	 	 	 	 	NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:
	 	/s/ Manao Keegan
	

	 	 
	 	 	 	 
	

	 	 	 	 	 	Manao Keegan, Relationship Manger
	Title:
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	 	 	Address:
	 	400 Hamilton Avenue
	

	 	 	 	 	 	 
	

	 	San Francisco, CA 94105
	 	 	 	Palo Alto, CA 94301
	 
	 	 	 	 	 	 
	FAX No.:

	 	(_____)_______________-_______________
	 	FAX No.:
	 	(650) 328-0814
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Interwoven, Inc.	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ John Calonico	 	 	 	 
	

	 	 	 	 	 	 
	

	 	John Calonico, Senior Vice President	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	803 11th Street	 	 	 	 
	

	 	Sunnyvale, CA 94089-4731	 	 	 	 
	 
	 	 	 	 	 	 
	FAX No.:

	 	(408) 616- 0083

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