Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (“Agreement”), executed effective this 1st day of July 2005  is between GlobalSCAPE Texas, LP a Texas
limited partnership (the “Employer”), and
Charles R. Poole (“Employee”).

 

R E C I T
A L S:

 

A.                                   The
Employer considers the maintenance of a sound management team, including
Employee, essential to protecting and enhancing its best interests and those of
its stockholders.

 

B.                                     Employee
will be a member of Employer’s management team.

 

NOW, THEREFORE, in consideration of Employee’s
future employment with Employer and other good and valuable consideration, the
parties agree as follows:

 

Section 1.                                          Employment.  The
Employer hereby employs Employee, and Employee hereby accepts employment, upon
the terms and subject to the conditions stated in this Agreement.

 

Section 2.                                          Duties.  Employee
shall be employed as President and Chief Operating Officer of the
Employer.  Employee shall perform such
duties customary to his position, including the planning, direction and
inspection of all aspects of the business, and in particular ensuring that
Employer’s goals are achieved according to Employer’s business plan.  Employer may require Employee from time to
time to provide assistance or services to, or act as an officer or director of
Employer’s affiliates.  Employee shall
perform such services and, if elected as a director or officer of any such
company, shall hold such office (and discharge its duties) without additional
compensation other than the compensation set forth in this Agreement.  Employee agrees to devote his full work time
and best efforts to the performance of the duties as an Employee of Employer.

 

Section 3.                                          Term.  The initial
term of employment of Employee hereunder shall be from July 1, 2005 to December 31,
2008.  This Agreement may be terminated
prior to the end of the term by either party with or without cause.

 

Section 4.                                          Compensation and Benefits. 
In consideration for the services of Employee hereunder, the Employer
shall compensate Employee as follows:

 

(a)  Weekly Base Salary.  Effective July 1, 2005 and until the
termination of Employee’s employment hereunder, Employer shall pay Employee a
base salary at a bi-weekly rate of at least $5,769.69 (“Bi-weekly
Base Salary”), payable in accordance with the regular payroll
practices of the Employer for executives, less such deductions or amounts as
are required to be deducted

 

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or withheld by applicable laws or regulations and less such other
deductions or amounts, if any, as are authorized by Employee, and less Nine
Hundred and Sixty Two Dollars ($962.00), which shall be deposited by Employer
in an investment account held in the name of GlobalSCAPE Texas, LP (the “Deferred Pay Account”). 
The Bi-weekly Base Salary may not be decreased at any time during the
term of Employee’s employment hereunder, and shall be increased on each
anniversary of July 1 by Nine Hundred Sixty Two Dollars ($962.00);
provided, however, that this increase in Bi-weekly Base Salary shall not be
remitted to Employee but shall be deposited by Employer in the Deferred Pay
Account.  Amounts deposited in the
Deferred Pay Account shall be retained in the Deferred Pay Account until such
time as Employee has completed the term of this Agreement, or as provided in Section 7
below.

 

(b)                                 Bonus. 
Employer shall pay Employee 2% of the “Net Income” (as defined below) of
GlobalSCAPE, Inc., on a quarterly basis. 
“Net Income” shall mean the amount of net income reflecting on the
operating statements of GlobalSCAPE Inc. on the basis of which GlobalSCAPE, Inc.
calculates its federal income tax liability. 
The Bonus shall be paid quarterly no later than the the first payroll
following completion of the quarterly review or annual audit, as applicable, of
GlobalSCAPE, Inc. by its independent public accountants.   The bonus shall accrue on a quarterly basis,
and in the event Employee’s employment hereunder terminates for any reason
prior to the end of a quarter no partial bonus shall be paid in respect of that
quarter.

 

(c) 
Stock Option Plan.  Employer shall cause GlobalSCAPE, Inc.
to issue the Stock Option Grant attached to this Agreement as Exhibit A.

 

(d)  Paid Time Off.  Employee shall be entitled to vacation and
other paid time off in accordance with the Employer’s policies, as they may be
modified from time to time during Employee’s employment hereunder, provided
that Employee will have no less than fifteen (15) days of paid vacation during
each year of this Agreement, with the vacation days for each one year term
fully accruing on the first day of each year.

 

(e)  Group Insurance Benefits.  Employee shall be entitled to participate in
the Employer’s group health, life and disability programs as are made available
to the Employer’s other executives and officers
and the Employee’s participation in such programs shall be at the same rates
which are available to the Employer’s other executives and officers.

 

(f)  Savings Plans.  Employee shall be entitled to
participate in Employer’s 401(k) plan, or other retirement or savings plans as
are made available to the Employer’s other executives and officers on the same
terms which are available to the Employer’s other executives and officers.

 

Section 5.                                          Expenses.  Employer
will reimburse Employee for expenses related to the performance of his duties
in accordance with its reimbursement policies in effect from time to time.

 

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Section 6.                                          Termination of Employment. 
Employee’s employment hereunder shall terminate prior to the end of the
term of this Agreement upon the occurrence of any of the following:

 

(i)                                     Death.  Upon the death
of Employee.

 

(ii)                                  Disability.  At the option of Employer, in the event of
Employee’s Disability, upon 30 days’ notice to Employee.  “Disability”
with respect to an Employee shall be deemed to exist if the Employee meets the
definition of either “disabled” or “disability” or like term under the terms of
the Employer’s long-term disability benefit program (including the definitions
for total or partial disability). Any refusal by Employee to submit to a
reasonable medical examination to determine whether Employee is so disabled
shall be deemed to constitute conclusive evidence of Employee’s disability.

 

(iii)                               Immediately
upon notice by Employer to Employee or by Employee to Employer.

 

Section 7.                                          Separation Payment Upon Termination of Employment.  If Employee’s employment is terminated prior
to the expiration of the term of this Agreement, then:

 

(i)                                     Employer
shall pay and provide to Employee such separation payments and benefits as are
then customary for Employer to grant to other employees whose employment is
terminated under similar circumstances, if any; 
and

 

(ii)                                  in
the event Employer’s employment is terminated due to death, Disability, or
terminated by Employer in connection with a “Change in Control,” as such term
is defined in the 2000 Employee Stock Option Plan, then Employer shall also pay
to Employee all amounts in the Deferred Pay Account (including any interest or
other investment income) as of the date of termination; and

 

(iii)                               in
the event Employee’s employment is terminated by Employer in connection with a
Change in Control, then Employer shall also pay Employee an additional amount
equal to the amount of deposits that Employee would have made to the Deferred
Pay Account for the remaining term of this Agreement had Employee completed the
term of this Agreement, with no present value deduction. The payment shall be
paid in a lump sum within ten (10) business days of the Employee’s execution
of a separation and release agreement with Employer.

 

The payments
described in this Section 7 shall be Employee’s sole remedy in
connection with his employment or termination of his employment.  If Employer’s Employment is terminated other
than due to death, Disability, or a Change in Control, then all amounts in the
Deferred Pay Account shall be retained by Employer.

 

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Section 8.                                          Inventions; Assignment.

 

(a)                                  Inventions
Defined.  All rights to
discoveries, inventions, improvements, designs and innovations (including all
data and records pertaining thereto) that relate to the business of Employer,
including its affiliates, whether or not able to be patented, copyrighted or
reduced to writing, that Employee may discover, invent or originate during the
term of his employment hereunder, and for a period of six months thereafter,
either alone or with others and whether or not during working hours or by the
use of the facilities of Employer (“Inventions”),
shall be the exclusive property of Employer. 
Employee shall promptly disclose all Inventions to Employer, shall
execute at the request of Employer any assignments or other documents Employer
may deem necessary to protect or perfect its rights therein, and shall assist
Employer, at Employer’s expense, in obtaining, defending and enforcing Employer’s
rights therein.  Employee hereby appoints
Employer as his attorney-in-fact to execute on his behalf any assignments or
other documents deemed necessary by Employer to protect or perfect its rights
to any Inventions.

 

(b)                                 Covenant to
Assign and Cooperate.  Without
limiting the generality of the foregoing, Employee shall assign and transfer to
Employer the worldwide right, title and interest of Employee in the Inventions.  Employee agrees that Employer may apply for
and receive patent rights (including Letters Patent in the United States) for
the Inventions in Employer’s name in such countries as may be determined solely
by Employer.  Employee shall communicate
to Employer all facts known to Employee relating to the Inventions and shall
cooperate with Employer’s reasonable requests in connection with vesting title
to the Inventions and related patents exclusively in Employer and in connection
with obtaining, maintaining and protecting Employer’s exclusive patent rights
in the Inventions.

 

(c)                                  Successors
and Assigns.  Employee’s
obligations under this Section 8 shall inure to the benefit of
Employer, its affiliates and their respective successors and assigns and shall
survive the expiration of the term of this Agreement for such time as may be
necessary to protect the proprietary rights of Employer and its affiliates in
the Inventions.

 

Section 9.                                          Confidential Information.

 

(a)                                  Acknowledgment
of Proprietary Interest. 
Employee acknowledges the proprietary interest of Employer and its
affiliates in all Confidential Information (as defined below).  Employee agrees that all Confidential
Information learned by Employee during his employment with Employer or
otherwise, whether developed by Employee alone or in conjunction with others or
otherwise, is and shall remain the exclusive property of Employer.  Employee further acknowledges and agrees that
his disclosure of any Confidential Information will result in irreparable
injury and damage to Employer.

 

(b)                                 Confidential
Information Defined.  “Confidential
Information” means all trade secrets, copyrightable works, confidential or
proprietary information of Employer or its affiliates, including without
limitation, (i) information derived from reports, investigations,
experiments, research and work in progress, (ii) methods of operation, (iii) market
data, (iv) proprietary

 

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computer programs and codes, (v) drawings, designs, plans and proposals,
(vi) marketing and sales programs, (vii) the identities of clients or
customers, (viii) historical financial information and financial
projections, (ix) pricing formulae and policies, (x) all other concepts,
ideas, materials and information prepared or performed for or by Employer and
(xi) all information related to the business, services, products, purchases or
sales of Employer or any of its suppliers and customers, other than information
that is publicly available.

 

(c)                                  Covenant Not
To Divulge Confidential Information. 
Employer is entitled to prevent the disclosure of Confidential
Information.  As a portion of the
consideration for the employment of Employee and for the compensation being paid
to Employee by Employer, Employee agrees at all times during the term of his
employment hereunder and thereafter to hold in strict confidence and not to
disclose or allow to be disclosed to any person, firm or corporation, other
than to persons engaged by Employer to further the business of Employer, and not
to use except in the pursuit of the business of Employer, the Confidential
Information, without the prior written consent of Employer.

 

(d)                                 Return of
Materials at Termination.  In
the event of any termination or cessation of his employment with Employer for
any reason, Employee shall promptly deliver to Employer all documents, data and
other information derived from or otherwise pertaining to Confidential
Information.  Employee shall not take or
retain any documents or other information, or any reproduction or excerpt
thereof, containing or pertaining to any Confidential Information.

 

Section 10.                                   Non-Solicitation.

 

(a)                                  Solicitation
of Employees.  During Employee’s
employment with Employer and for a period of twelve (12) months after
termination of such employment at any time and for any reason, and regardless
of whether any payments are made to Employee under this Agreement as a result
of such termination, Employee shall not solicit, participate in or promote the
solicitation of any person who was employed by Employer or any of its
affiliates at the time of Employee’s termination of employment with Employer to
leave the employ of Employer or any of its affiliates, or, on behalf of himself
or any other person, hire, employ or engage any such person.  Employee further agrees that, during such
time, if an employee of Employer or any of its affiliates contacts Employee
about prospective employment, Employee will inform such employee that he cannot
discuss the matter further without the consent of Employer (and the applicable
affiliate).

 

(b)                                 Solicitation
of Clients, Customers, Etc. 
During Employee’s employment with Employer and for a period of twelve
(12) months after termination of Employee’s employment at any time and for any
reason, and regardless of whether any payments are made to Employee under this
Agreement as a result of such termination, Employee shall not, directly or
indirectly, solicit any person who, at the time of termination of Employee’s
employment with Employer, was a client, customer, vendor, consultant or agent
of Employer or its affiliates to discontinue business, in whole or in part,
with Employer or its affiliates. 
Employee further agrees that, during such time, if such a client,
customer, vendor, or consultant or agent contacts Employee

 

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about discontinuing business with Employer or moving that business
elsewhere, Employee will inform such client, customer, vendor, consultant or
agent that he cannot discuss the matter further without the consent of Employer
(and the applicable affiliate).

 

Section 11.                                   No-Compete.

 

(a)                                  Competition During Employment.  Employee agrees that during the term of his
employment with Employer, neither he nor any of his affiliates, will directly
or indirectly compete with Employer or its affiliates in any way, and that he
will not act as an officer, director, employee, consultant, shareholder,
lender, or agent of any entity which is engaged in any business of the same
nature as, or in competition with, the businesses in which Employer and its
affiliates are now engaged or in which Employer or its affiliates become
engaged during the term of employment; provided, however, that this Section 11(a) shall
not prohibit Employee or any of his affiliates from: (i) purchasing or
holding an aggregate equity interest of up to 1%, so long as Employee and his
affiliates combined do not purchase or hold an aggregate equity interest of
more than 5%, in any business in competition with Employer and its affiliates.    Furthermore, Employee agrees that during
the term of employment, he will undertake no planning for the organization of
any business activity competitive with the work he performs as an employee of
Employer and Employee will not combine or conspire with any other employees of
Employer and its affiliates for the purpose of the organization of any such
competitive business activity.

 

(b)                                 Competition Following Employment.  In order to protect Employer against the
unauthorized use or the disclosure of any Confidential Information of Employer
and its affiliates presently known or hereinafter obtained by Employee during
his employment under this Agreement, Employee agrees that for a period of
twelve (12) months after the termination or cessation of his employment with
Employer at any time and for any reason, and regardless of whether any payments
are made to Employee under this Agreement as a result of such termination,
neither Employee nor any of his affiliates, shall, directly or indirectly, for
itself or herself or on behalf of any other corporation, person, firm,
partnership, association, or any other entity (whether as an individual, agent,
servant, employee, employer, officer, director, shareholder, investor,
principal, consultant or in any other capacity):

 

(i)                                     engage
or participate in any business which engages in competition with such
businesses being conducted by Employer or any of its affiliates during the term
of employment anywhere in any state in the United States or in any foreign
country where the Employer or any of its affiliates distributes software or
performs services related to the distribution of software, or any other
business in which the Employer or any of its affiliates has been actively
engaged during the term Employee performed services for the Employer; provided,
however, that this provision shall not prohibit Employee or any of his
affiliates from purchasing or holding an aggregate equity interest of up to 1%,
so long as Employee and his

 

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affiliates combined do not purchase or hold
an aggregate equity interest of more than 5%, in any business in competition
with Employer;

 

(ii)                                        assist
or finance any person or entity in any manner or in any way inconsistent with
the intents and purposes of this Agreement.

 

Section 12.                                   General.

 

(a)                                  Notices.  All
notices and other communications hereunder shall be in writing or by written
telecommunication, and shall be deemed to have been duly given if delivered
personally or if mailed by certified mail, return receipt requested or by
written telecommunication, to the relevant address set forth below, or to such
other address as the recipient of such notice or communication shall have
specified to the other party in accordance with this Section 12(a):

 

If to Employer, to:

 

GlobalSCAPE Texas, LP

6000 Northwest Parkway, Suite 100

San Antonio, Texas 78249

(210) 690-8824 facsimile

 

(or the subsequent headquarters of Employer
as known to Employee)

 

If to Employee, to the Employee’s last known
address appearing on Employer’s records

 

(b)                                 Withholding.  All
payments required to be made to Employee by Employer under this Agreement shall
be subject to the withholding of such amounts, if any, relating to federal,
state and local taxes as may be required by law, except those earnings
deposited in the Deferred Pay Account, to the extent permitted by law.

 

(c)                                  Equitable
Remedies.  Each of the parties
hereto acknowledges and agrees that upon any breach by Employee of his
obligations under any of Sections 8, 9, 10, and 11 Employer shall suffer immediate,
substantial and irreparable injury and shall have no adequate remedy at
law.   Accordingly, in event of such
breach, Employer shall be entitled, in addition other remedies and without
showing actual damages, to specific performance and other appropriate
injunctive and equitable relief.

 

(d)                                 Severability.  If
any provision of this Agreement is held to be illegal, invalid or
unenforceable, such provision shall be fully severable, and this Agreement
shall be construed and enforced as if such illegal, invalid or unenforceable
provision never comprised a part hereof, and the remaining provisions hereof
shall remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance.  Furthermore, in lieu of such illegal, invalid
or unenforceable provision, there shall be added automatically as part of this

 

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Agreement a provision as similar in its terms to such illegal, invalid
or unenforceable provision as may be possible and be legal, valid and
enforceable.

 

(e)                                  Waivers.  No
delay or omission by either party in exercising any right, power or privilege
hereunder shall impair such right, power or privilege, nor shall any single or
partial exercise of any such right, power or privilege preclude any further
exercise thereof or the exercise of any other right, power or privilege.

 

(f)                                    Counterparts.  This Agreement may be executed in
multiple counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

 

(g)                                 Captions.  The
captions in this Agreement are for convenience of reference only and shall not
limit or otherwise affect any of the terms or provisions hereof.

 

(h)                                 Interpretation
of Agreement.  This Agreement shall be construed according
to its fair meaning and not for or against either party.  Use of the words “herein,” “hereof,” “hereto,”
“hereunder” and the like in this Agreement refer to this Agreement only as a
whole and not to any particular section or subsection of this
Agreement, unless otherwise noted.  The
masculine gender shall be deemed to denote the feminine or neuter genders, the
singular to denote the plural, and the plural to denote the singular, where the
context so permits.

 

(i)                                     Binding Agreement; Assignment.  This
Agreement shall be binding upon and inure to the benefit of the parties and
shall be enforceable by the personal representatives and heirs of Employee and
the successors and assigns of Employer. 
The affiliates of Employer shall be considered third party beneficiaries
of this Agreement with respect to any services provided by Employee to them and
in connection with Employee’s covenants in Sections 8, 9,10, and 11
hereof.  The Employer may assign this
Agreement; provided that in the event of any such assignment, the Employer
shall remain liable for all of its obligations hereunder and shall be liable
for all obligations of all such assignees hereunder.  If Employee dies while any amounts would
still be payable to him hereunder, such amounts shall be paid to Employee’s
estate.  This Agreement is not otherwise
assignable by Employee.

 

(j)                                     Entire Agreement.  This Agreement contains the
entire understanding of the parties, supersedes all prior agreements and
understandings relating to the subject matter hereof and may not be amended
except by a written instrument hereafter signed by each of the parties hereto.

 

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(k)                                  Governing
Law.  This Agreement and the performance hereof shall be
construed and governed in accordance with the laws of the State of Texas,
without regard to its choice of law principles.

 

(l)                                     Arbitration.  Without
limiting Employer’s right to seek equitable remedies under Section 12(c) above,
Employer and Employee agree that any dispute or controversy arising under or in
connection with this Agreement shall be settled by arbitration.  Arbitration under this Agreement shall be
governed by the Federal Arbitration Act and proceed in San Antonio, Texas in
accordance with the rules of the American Arbitration Association (“AAA”).  Arbitration will be conducted before a panel
of three neutral arbitrators selected from a AAA list of proposed arbitrators
with business law experience.  Either
party may take any legal action needed to protect any right pending completion
of the arbitration.  The arbitrator will
determine whether an issue is arbitrable and will give effect to applicable
statutes of limitation.  The arbitrator
has the discretion to decide, upon documents only or with a hearing, any motion
to dismiss for failure to state a claim or any motion for summary
judgment.  Discovery shall be governed by
the Federal Rules of Civil Procedure and the Federal Rules of
Evidence.  All information developed by
the arbitration or litigation shall be held in confidence subject to such
protective orders, as the arbitrator deems useful to ensure complete
confidentiality. The decision of the arbitrator shall be final and binding on
all parties to this Agreement, and judgment thereon may be entered in any court
having jurisdiction over the parties. 
All costs of the arbitration proceeding or litigation to enforce the
arbitration award shall be paid by the party against whom the arbitrator
decides.

 

(m)                               Employee
Representations.   Employee
represents and certifies to Employer that he: 
(i) has received a copy of this Agreement for review and study and
has had ample time to review it before signing; (ii) has read this
Agreement carefully; (iii) has been given a fair opportunity to discuss and
negotiate the terms of this Agreement; (iv) understands its provisions; (v) has
had the opportunity to consult his attorney; (vi) has determined that it
is in his best interest to enter into this Agreement; (vii) has not been
influenced to sign this Agreement by any statement or representation by
Employer or its counsel not contained in this Agreement; and (viii) enters
into this Agreement knowingly and voluntarily.

 

EXECUTED as of the date and year first above
written.

 

	
   

  	
  GLOBALSCAPE TEXAS, LP

  
	
   

  	
   

  
	
   

  	
  by: GS General, LLC, its general partner

  
	
   

  	
   

  
	
   

  	
  by:

  	
   

  	
   

  
	
   

  	
   

  	
  Thomas W. Brown

  
	
   

  	
   

  	
  Chairman of the Board of Directors of

  GlobalSCAPE, Inc., sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Charles R. PooleExhibit 10.2

 

EXHIBIT
A

GLOBALSCAPE,
INC.

INCENTIVE
STOCK OPTION AGREEMENT

 

This Incentive Stock Option Agreement (the “Agreement”)
is entered into between GLOBALSCAPE, Inc., a Delaware corporation (the “Company”),
and Charles R. Poole (the “Optionee”) as of the 15th day of June, 2005 (the “Date
of Grant”).  In consideration of the
mutual promises and covenants made herein, the parties hereby agree as follows:

 

1.                                      Grant
of Option.  Under the terms and
conditions of the Company’s 2000 Stock Option Plan (the “Plan”), which is
incorporated herein by reference, the Company grants to the Optionee an option
(the “Option”) to purchase from the Company all or any part of a total of Three
Hundred Thousand (300,000) shares of the Company’s Common Stock, par value $0.001
per share, at a price of thirty-one cents ($0.31) per share.

 

2.                                      Character
of Option.  The Option is an “incentive
stock option” within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended; provided, however, that to the extent the Option does
not qualify as an incentive option by virtue of exceeding the $100,000
limitation in Section 422(d) of such Code, the Option shall be
treated as an option other than an incentive stock option.

 

3.                                      Term.  The Option will expire on the day prior to
the tenth anniversary of the Date of Grant or, in the event of the Optionee’s
termination of service as an employee, director, or advisor of the Company, on
such earlier date as may be provided in the Plan.

 

4.                                      Vesting;
Exercisability.  Subject to any
provisions of the Plan concerning exercisability and vesting of options, the
Option shall vest according to the following schedule:

 

	
  Percentage

  Vested

  	
   

  	
  Period

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  33%

  	
   

  	
  First anniversary of the Date of Grant

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  33%

  	
   

  	
  Second anniversary of the Date of Grant

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  34%

  	
   

  	
  Third anniversary of the Date of Grant

  	
   

  

 

The unexercised portion of the Option from one period may be carried
over to a subsequent period or periods, and the right of the Optionee to
exercise the option as to such unexercised portion shall continue for the
entire term.

 

Notwithstanding anything else to the contrary
herein, upon the occurrence of a “Change of Control,” this Option shall become
fully exercisable.  The term “Change of
Control” shall mean the occurrence of any of the following events: (i) 
any “person” as that term is used in Section 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (other
than the Company, the Brown and Mann Joint Venture, a Texas General

 

 

Partnership (“Brown and Mann Joint Venture”) any trustee or other
fiduciary holding securities under an employee benefit plan of the Company, or
any company owned, directly or indirectly, by the Brown and Mann Joint Venture
or Thomas W. Brown) is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company
representing more than fifty percent (50%) of the combined voting power of the
Company’s then outstanding voting securities; (ii)  during any period of
twenty-four (24) consecutive months, individuals who at the beginning of such
period constitute the Board and any new director (other than a director
designated by a person who has entered into any agreement with the Company to
effect a transaction described in subsection (i), (iii) or (iv) of
this paragraph) whose election by the Board or nomination by the Board for
election by the stockholders was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the
beginning of the period or whose election or nomination was previously so
approved, cease for any reason to constitute a majority of the Board; (iii) 
the stockholders of the Company approve a merger, consolidation or
reorganization of the Company with any other corporation (other than a merger,
consolidation, or reorganization with any company owned directly or indirectly
by the Brown and Mann Joint Venture or Thomas W. Brown or a merger,
consolidation or reorganization which would result in the stockholders of the
Company immediately before such merger, consolidation or reorganization,
owning, directly or indirectly immediately following such merger, consolidation
or reorganization, at least fifty-one percent (51%) of the combined voting
power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger, consolidation or reorganization in
substantially the same proportion as their ownership of the voting securities
immediately before such merger, consolidation, or reorganization; or (iv) the
stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets. 
Notwithstanding anything to the contrary herein, a Change of Control
shall not be deemed to occur as a result of an acquisition of Company
securities or assets by the Brown and Mann Joint Venture, Thomas W. Brown, or
any consolidation, merger or exchange of securities.

 

5.                                      Procedure
for Exercise.  Exercise of the Option
or a portion thereof shall be effected by the giving of written notice to the
Company by the Optionee in accordance with the Plan and payment of the purchase
price prescribed in Section 1 above for the shares to be acquired pursuant
to the exercise.

 

6.                                      Payment
of Purchase Price.  Payment of the
purchase price for any shares purchased pursuant to the Option shall be in
accordance with the provisions of the Plan.

 

7.                                      Transfer
of Options.  The Option may not be
transferred except (i) by will or the laws of descent and distribution or (ii) pursuant
to the terms of a qualified domestic relations order, as defined by the Code or
Title I of the Employee Retirement Income Security Act of 1974, as amended,
and, during the lifetime of the Optionee, may be exercised only by the Optionee
or by the Optionee’s legally authorized representative.

 

8.                                      Acceptance
of the Plan.  The Option is granted
subject to all of the applicable terms and provisions of the Plan, and such
terms and provisions are incorporated by reference herein.  The Optionee hereby accepts and agrees to be
bound by all the terms and conditions of the Plan.

 

 

9.                                      Amendment.  This Agreement may be amended by an
instrument in writing signed by both the Company and the Optionee.

 

10.                               Miscellaneous.  This Agreement will be construed and enforced
in accordance with the laws of the State of Texas and will be binding upon and
inure to the benefit of any successor or assign of the Company and any
executor, administrator, trustee, guarantor or other legal representative of
the Optionee.

 

Executed to be effective as of the date set forth above.

 

	
   

  	
  GLOBALSCAPE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Thomas W. Brown

  
	
   

  	
   

  	
  Chairman of the Board of Directors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Charles R. Poole

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]