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Exhibit 10.31    
  

INDEMNIFICATION AGREEMENT  

        This Indemnification Agreement ("Agreement") is made as of November 22, 2002, by and between STORAGE TECHNOLOGY CORPORATION, a Delaware corporation (the
"Company"), and [NAME OF DIRECTOR] ("Director"). 

RECITALS  

        WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as
directors or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out
of their service to and activities on behalf of the corporation. 

        WHEREAS, the Board of Directors of the Company (the "Board") has determined that, in order to attract and retain qualified individuals as
members of the Board, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain
liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States based corporations and other business enterprises, the Company believes that,
given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors are being increasingly
subjected to expensive and time-consuming litigation relating to the business and affairs of corporations. The Company recognizes that the cost of defending and otherwise participating in
such litigation is far greater than the financial benefits of serving as a Director. The Certificate of Incorporation, the Bylaws and the Delaware General Corporation Law ("DGCL")
expressly provide that the indemnification provisions set forth therein are not exclusive and contemplate that contracts may be entered into between the Company and members of the Board with respect
to indemnification; 

        WHEREAS, the uncertainties relating to insurance have increased the difficulty of attracting and retaining directors; 

        WHEREAS, the Board has determined that the increased difficulty in attracting and retaining directors is detrimental to the best interests
of the Company's stockholders; 

        WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to pay expenses on
behalf of directors to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 

        WHEREAS, this Agreement is in furtherance of the Certificate of Incorporation of the Company, its Bylaws and any resolutions adopted
pursuant thereto, and the DGCL, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Director thereunder; 

        WHEREAS, the Company has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Director to serve
as a director or officer of the Company, and the Company acknowledges that Director is relying upon this Agreement in serving as a director or officer of the Company; 

        WHEREAS, Director is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the
condition that he be so indemnified; 

        NOW, THEREFORE, in consideration of the promises and the covenants contained herein, the Company and Director do hereby covenant and agree
as follows: 

        Section 1.    Services to the Company.    Director will serve or continue to serve, at the will of the Company
and its stockholders for so long as Director is duly elected or appointed or until Director tenders his or her resignation.

 

        Section 2.    Definitions.    As used in this Agreement: 

        (a)  "Beneficial
Owner" shall have the meaning given to such term in Rule 13d-3 under the Securities Exchange Act of 1934. 

        (b)  A
"Change in Control" shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events: 

          (i)  Acquisition of Stock by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company's then outstanding securities; 

        (ii)  Change in Board of Directors. During any period of two (2) consecutive years (not including any period prior to
the execution of this Agreement), individuals who at the beginning of such period constitute the Board cease for any reason to constitute at least a majority of the members of the Board; 

        (iii)  Corporate Transactions. The effective date of a merger or consolidation of the Company with any other entity, other
than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity, including the parent corporation of such surviving entity) at least 50% of the total voting power of the voting
securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such
surviving entity; 

        (iv)  Liquidation. The approval by the stockholders of the Company of a 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; and 

        (v)  Other Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is
then subject to such reporting requirement. 

        (c)  "Company"
shall include, in addition to Storage Technology Corporation, any corporation which results from or survives a consolidation or merger with Storage Technology
Corporation as well as any corporation absorbed in a consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, employees or agents, so that if Director is or was a director, officer, employee or agent of such constituent corporation, or is or
was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, Director shall stand
in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Director would have with respect to such constituent corporation if its separate
existence had continued. 

        (d)  "Disinterested
Director" means a director of the Company who is not and was not a party to the Proceeding as defined herein in respect of which indemnification is sought
by Director. 

        (e)  "Enterprise"
shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise of which Director is or was
serving at the request of the Company as a director, officer, employee, agent or fiduciary. 

        (f)    "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended.

 

        (g)  "Expenses"
shall include all reasonable attorneys' and accountants' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise being involved with, a Proceeding as defined in this Agreement. Expenses
also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond,
supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Director or the amount of judgments or fines against Director. 

        (h)  "Independent
Counsel" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years
has been, retained to represent: (i) the Company or Director in any matter material to either such party or (ii) any other party to the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Director in an action to determine Director's rights under this Agreement. 

        (i)    "Person"
shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company or a
person that directly or indirectly
controls, is controlled by, or is under common control with, the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and
(iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company. 

        (j)    The
term "Proceeding" shall include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation (including but
not limited to any internal corporate investigation), inquiry, administrative hearing or any other actual, threatened or completed proceeding, including any and all appeals, whether brought in the
right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, in which Director was, is, or will be a party to, a witness in or otherwise participates in
by reason of the fact that Director is or was a director or officer of the Company, by reason of any action taken by him or of any action on his part while acting as director or officer of the
Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, employee or agent of another Enterprise, in each case whether or not serving in such
capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or payment of expenses can be provided under this Agreement; except one initiated by a Director to
enforce his rights under this Agreement. Any Director serving, in any capacity, (i) another corporation of which a majority of the shares entitled to vote in the election of its directors is
held by the Company, or (ii) any employee benefit plan of the Company or of any corporation referred to in clause (i), shall be deemed to be doing so at the request of the Company. 

        (k)  References
to "fines" shall include, but are not limited to, any excise tax assessed with respect to any employee benefit plan; references to "serving at the request of
the Company" shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect
to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and
beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the Company" as referred to in this Agreement. 

 

        Section 3.    Indemnity in Third-Party Proceedings.    A Third-Party Proceeding is a Proceeding other than a
Proceeding by or in the right of the Company to procure a judgment in its favor. The Company shall indemnify Director in accordance with the provisions of this Section 3 if Director is, or is
threatened to be made, a party to, a witness in or otherwise participates in any Third-Party Proceeding. Pursuant to this Section 3, Director shall be indemnified against all Expenses,
judgments, fines and amounts paid in settlement actually and reasonably incurred by Director or on his behalf in connection with such Third-Party Proceeding or any claim, issue or matter therein, if
Director acted in good faith and in a manner Director reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal proceeding had no reasonable cause
to believe that such conduct was unlawful. 

        Section 4.    Indemnity in Proceedings by or in the Right of the Company.    The Company shall indemnify
Director in accordance with the provisions of this Section 4 if Director is, or is threatened to be made, a party to, a witness in or otherwise participates in any Proceeding by or in the right
of the Company to procure a judgment in its favor. Pursuant to this Section 4, Director shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in
connection with such Proceeding or any claim, issue or matter therein and to the extent permitted by law, amounts paid in settlement, if Director acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company. No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which
Director shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware Court of Chancery or any court in which the Proceeding was brought
shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Director is fairly and reasonably entitled to indemnification. 

        Section 5.    Indemnification for Expenses of a Party Who is Wholly or Partly Successful.    

        (a)  In
any Proceeding referred to in Section 4, if Director is not wholly successful in such Proceeding, but has been adjudged to be liable to the Company as to one
or more but less than all claims, issues or matters in such Proceeding, no indemnification shall be made in respect of any claim, issue or matter as to which Director shall have been adjudged to be
liable to the Company, unless and only to the extent that the Delaware Court of Chancery or any court in which the Proceeding was brought shall determine upon application that, despite the
adjudication of liability to the Company, in view of all the circumstances of the case, Director is fairly and reasonably entitled to such indemnification. However, in any Proceeding referred to in
Section 4, the Company shall indemnify Director against all Expenses actually and reasonably incurred by him or on his behalf and, to the extent permitted by law, amounts paid in settlement, in
connection with each claim, issue or matter as to which Director is successful on the merits or has reached a settlement. 

        (b)  To
the extent that Director has been successful on the merits or otherwise in defense of any Proceeding (including any Proceeding referred to in Section 4), or in
defense of any claim, issue or matter therein, Director shall be indemnified and held harmless by the Company to the fullest extent authorized by the DGCL, as the same exists or may hereafter be
amended, against all Expenses actually and reasonably incurred or suffered by Director or on Director's behalf in connection therewith. Indemnification pursuant to this Section 5(b) shall not
require a determination pursuant to Section 10 of this Agreement. 

        (c)  For
purposes of this Section 5 and without limitation, the termination of any claim, issue or matter in a Proceeding in which Director is a defendant by
dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

        Section 6.    Additional Indemnification    

        (a)  Notwithstanding
any limitation in Sections 3, 4, or 5, the Company shall indemnify Director to the extent permitted by law if Director is a party to or threatened to be
made a party to, a witness in or otherwise participates in any Proceeding against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Director in
connection with the Proceeding unless Director's conduct constitutes a breach of Director's duty of loyalty to the Company or its stockholders. 

        (b)  For
purposes of Section 6(a), the meaning of the phrase "to the extent permitted by law" shall include, but not be limited to: 

            i.  the
fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any
amendment to or replacement of the DGCL; and 

          ii.  the
fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a
corporation may indemnify its officers and directors. 

        Section 7.    Exclusions.    Notwithstanding any provision in this Agreement, the Company shall not be
obligated under this Agreement to make any payment for indemnity including Expenses, judgments, fines and amounts paid in settlement to the extent that the amount for which Director seeks
indemnification, or a portion thereof: 

        (a)  has
actually been made to or on behalf of Director under any insurance policy, contract, agreement or otherwise; or 

        (b)  is
based upon an accounting of profits made from the purchase and sale (or sale and purchase) by Director of securities of the Company in violation of
Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law; or 

        (c)  in
connection with any Proceeding (or any part of any Proceeding) initiated or brought voluntarily by Director, including any Proceeding (or any part of any Proceeding)
initiated by Director against the Company or its directors, officers or employees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or
(ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law. 

        Section 8.    Notification of Indemnifiable Claim.    Director shall, as a condition precedent to his right to
be indemnified under this Agreement, give the Company notice in writing as soon as practicable of any claim made against Director for which indemnification will or could be sought under this
Agreement. Director agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any
Proceeding or matter which will or could be subject to indemnification or payment of Expenses covered hereunder. The Secretary of the Company shall, promptly upon receipt of such notice, advise the
Board in writing of such notice. The failure of Director to timely notify the Company shall not relieve the Company of any obligation which it may have to the Director under this Agreement or
otherwise, unless such failure to provide timely notice materially prejudices the Company. The omission to notify the Company will not relieve the Company from any liability for indemnification which
it may have to Director otherwise than under this Agreement. 

        Section 9.    Payment of Expenses.    Without regard to Director's ultimate entitlement to indemnification
under other provisions of this Agreement, the Company shall pay the Expenses as incurred by Director or reimburse Director for his payment of such Expenses in connection with any Proceeding within ten
(10) days after the receipt by the Company of a written request for payment of

  
expenses. If the DGCL so requires, payment of Expenses by the Company under this Section 9 shall be made only upon delivery to the Company of an undertaking ("Undertaking"). The Undertaking
shall constitute the Director's agreement that: (i) he shall repay the Expenses paid by the Company to the extent that it is ultimately determined by final judicial decision from which there is
no further right to appeal that the Director is not entitled to be indemnified by the Company; and (ii) that in consideration for the payment of such expenses, the Company may, at its sole
discretion, select counsel for Director, assume the defense or otherwise participate in the defense of such Proceeding. Payment of Expenses pursuant to this Section shall be unsecured and interest
free. Payment of Expenses shall be made without regard to Director's ability to repay the expenses and without regard to Director's ultimate entitlement to indemnification under the other provisions
of this Agreement. Such payment shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of payment of Expenses, including Expenses incurred preparing and
forwarding statements to the Company to support the payment claimed. This Section 9 shall not apply to any claim for Expenses made by Director for which indemnity is excluded pursuant to
Section 7. Notwithstanding anything else contained in this Section 9, to the extent that the Company is prohibited by applicable law from making payment of Expenses to the Director prior
to the Company's determination that the Director is entitled to indemnification, the Company shall not pay Expenses to the Director pursuant to this Section. Nothing herein shall be construed to limit
the Company's right to seek damages from the Director, including but not limited to the full amount of the Expenses paid by the Company hereunder. The selection by the Company of defense counsel for
the Director in connection with any Proceeding, shall be made only with the approval of the Director, which approval shall not be unreasonably withheld, upon the delivery to Director of written notice
of the Company's election to do so. After delivery of such notice, approval of such counsel by Director and the retention of such counsel by the Company, the Company will not be liable to Director
under this Agreement for any fees of counsel subsequently incurred by Director with respect to the same Proceeding, provided that (i) Director shall have the right to employ his counsel in any
such Proceeding at Director's expense; and (ii) if (A) the employment of counsel by Director has been previously authorized by the Company, (B) Director shall have reasonably
concluded that there may be a conflict of interest between the Company and Director in the conduct of any such defense, or (C) the Company shall not, in fact, have employed counsel to assume
the defense of such Proceeding, then the fees and expenses of Director's counsel shall be at the expense of the Company. 

        Section 10.    Procedure Upon Application for Indemnification.    

        (a)  Upon
final disposition of a Proceeding for which indemnification is sought pursuant to Section 3 or Section 4, Director shall submit promptly (and in any
event, no later than the applicable statute of limitations) to the Board a written request for indemnification averring that he has met the applicable standard of conduct set forth herein. Any
indemnification made under this Agreement pursuant to Section 3 or Section 4 shall be made by the Company only as authorized in the specific case upon a determination that
indemnification of the Director is proper in the circumstances because Director has met the applicable standard of conduct. Such determination shall be made in the following manner: (i) if a
Change in Control shall have occurred and the Director is not a director at the time of such determination, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered
to Director; and (ii) in any other circumstance: (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of
Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such
Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Director or (D) if so directed by the Board, by the
stockholders of the Company, and, if it is so determined that Director is entitled to indemnification, payment to Director shall be made within ten (10) days after such determination. Director
shall cooperate with the person, persons or entity

  
making such determination with respect to Director's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and which is reasonably available to Director and reasonably necessary to such determination. Any costs or expenses
(including attorneys' fees and disbursements) incurred by Director in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the
determination as to Director's entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Director harmless therefrom. 

        (b)  In
the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(a) hereof, the Independent Counsel
shall be selected as provided in this Section 10(b). If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board within ten (10) days of
submission of a written request by Director for indemnification pursuant to Section 10(a), and the Company shall give written notice to Director advising him of the identity of the Independent
Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Director within ten (10) days of submission of a written request by Director for
indemnification pursuant to Section 10(a), (unless Director shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Director shall give
written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Director or the Company, as the case may be, may, within ten (10) days after
such written notice of selection shall have been given, deliver to the Company or to Director, as the case may be, a written objection to such selection; provided, however,  that such objection may be
asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in
Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. The objection must also include a proposed substitute Independent Counsel.
If objection including a proposed substituted
Independent Counsel is timely made, such substituted Independent Counsel shall serve as Independent Counsel unless objected to within ten (10) days. An objection to the substituted Independent
Counsel may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in Section 2 of this Agreement, and the
objection shall set forth with particularity the factual basis of such assertion. If written objection is made, the Independent Counsel or substituted Independent Counsel proposed may not serve as
Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within thirty (30) days after submission by Director of a
written request for indemnification pursuant to Section 10(a) hereof, the parties have not agreed upon the selection of the Independent Counsel, either the Company or Director may petition a
court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Director to the other's selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person selected by the Court or by such other person as the Court shall designate, and the person with respect to whom all objections are so resolved or the person so
appointed shall act as Independent Counsel under Section 10(a) hereof. 

        (c)  In
the event of a Change in Control, the Company shall, upon written request by Director, create a trust for the benefit of Director (the "Trust") and from time to time
upon written request of Director shall fund the Trust in an amount equal to all Expenses, judgments, fines and amounts paid in settlement reasonably anticipated at the time to be incurred in
connection with any Proceeding or any claim, issue or matter therein. The amount to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by the party required to
make the determination that indemnification of Director is proper pursuant to Section 10(a) hereof (the "Reviewing Party"). The terms of the Trust shall provide that (i) the Trust shall
not be revoked or the principal thereof invaded without the written consent of Director, (ii) the trustee of

  
the Trust shall advance, within ten (10) business days of a request by Director, any and all Expenses to Director (and Director hereby agrees to reimburse the Trust under the circumstances in
which Director would be required to reimburse the Company for any Expenses advanced under this Agreement), (iii) the Trust shall continue to be funded by the Company in accordance with the
funding obligation set forth above, (iv) the trustee of the Trust shall promptly pay to Director all amounts for which Director shall be entitled to indemnification pursuant to this Agreement
or otherwise and (v) all unexpended funds in that Trust shall revert to the Company upon a final determination by the Reviewing Party or a court of competent jurisdiction, as the case may be,
that Director has received amounts, if any, which fully satisfy the Company's obligation to indemnify Director under the terms of this Agreement. The trustee of the Trust shall be chosen by Director.
Nothing in this Section 10(c) shall relieve the Company of any of its obligations under this Agreement. 

        Section 11.    Presumptions and Effect of Certain Proceedings.    

        (a)  The
submission of the Application for Indemnification to the Board shall create a rebuttable presumption that the Director is entitled to indemnification under this
Agreement, and the Board, Independent Counsel, or stockholders, as the case may be, shall within sixty (60) days after submission of the Application for Indemnification specifically determine
that the Director is so entitled, unless it or they possess sufficient evidence to rebut the presumption that Director has met the applicable standard of conduct. If a determination shall have been
made pursuant to this Agreement that Director
is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to Section 12, absent (i) a misstatement by Director of a
material fact, or an omission of a material fact necessary to make Director's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of
such indemnification under applicable law. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action
pursuant to this Agreement that indemnification is proper in the circumstances because Director has met the applicable standard of conduct, nor an actual determination by the Company (including by its
directors or Independent Counsel) that Director has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Director has not met the applicable
standard of conduct. Moreover, the fact that the Company has paid the Director's Expenses pursuant to Section 9 herein shall not create a presumption that Director has met the applicable
standard of conduct for indemnification. 

        (b)  If
the person, persons or entity empowered or selected under Section 10 of this Agreement to determine whether Director is entitled to indemnification shall not
have made a determination within sixty (60) days after receipt by the Company of the request therefore, the requisite determination of entitlement to indemnification shall be deemed to have
been made and Director shall be entitled to such indemnification, absent (i) a misstatement by Director of a material fact, or an omission of a material fact necessary to make Director's
statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such
60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to
entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, that the
foregoing provisions of this Section 11(b) shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to this Agreement and if
(A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their
consideration at an annual meeting thereof to be held within seventy five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of

  
stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after
having been so called and such determination is made thereat. 

        (c)  The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Director to indemnification or create
a presumption that Director did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal
Proceeding, that Director had reasonable cause to believe that his conduct was unlawful. 

        (d)  For
purposes of any determination of good faith, Director shall be deemed to have acted in good faith if Director's action is based on the advice of legal counsel for
the Company or on information or records given or reports made to the Company by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the
Company. The provisions of this
Section 11(d) shall not be deemed exclusive or to limit in any way the other circumstances in which the Director may be deemed to have met the applicable standard of conduct set forth in this
Agreement. 

        (e)  To
the extent legally permissible, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to
Director for purposes of determining the right to indemnification under this Agreement. 

        Section 12.    Remedies of Director.    

        (a)  In
the event that (i) a determination is made pursuant to Section 10 of this Agreement that Director is not entitled to indemnification under this
Agreement, (ii) payment of Expenses is not timely made pursuant to Section 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made
pursuant to Section 10 of this Agreement within sixty (60) days after receipt by the Company of the request for indemnification, or (iv) payment of indemnification pursuant to
Section 3, 4, 5(a) or 6 of this Agreement is not made within ten (10) days after a determination has been made that Director is entitled to indemnification, Director shall be entitled to
an adjudication by a court of his entitlement to such indemnification or payment of Expenses. 

        (b)  In
the event that Director successfully sues the Company for indemnification or payment of Expenses, and is successful in whole or in part, Director shall be entitled to
be paid by the Company for the Expense of prosecuting such suit. If the Company sues Director to recover Expenses paid prior to final disposition under Section 2 and Director is successful in
defending such suit, in whole or in part, Director shall be entitled to be paid the Expense of defending such suit. 

        (c)  In
the event that a determination shall have been made under this Agreement that Director is not entitled to indemnification, any judicial proceeding commenced pursuant
to this Section shall be conducted in all respects as a de novo trial on the merits and Director shall not be prejudiced by reason of that adverse determination. In any judicial proceeding pursuant to
this Section, the Company shall have the burden of proving Director is not entitled to indemnification or payment of Expenses, as the case may be. 

        (d)  The
Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section that the procedures and presumptions of this Agreement are
not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement. The Company shall indemnify Director against any and all
Expenses and, if requested by Director, shall (within ten (10) days after receipt by the Company of a written

  
request therefore) pay such Expenses to Director, which are incurred by Director in connection with any action brought by Director for indemnification or payment of Expenses from the Company under
this Agreement or under any directors' and officers' liability insurance policies maintained by the
Company, regardless of whether Director ultimately is determined to be entitled to such indemnification, payment of Expenses or insurance recovery, as the case may be. 

        Section 13.    Non-exclusivity; Survival of Rights; Insurance; Subrogation.    

        (a)  The
rights of indemnification and to receive payment of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Director may at
any time be entitled under applicable law, the Company's Certificate of Incorporation, the Company's Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No
amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Director under this Agreement in respect of any action taken or omitted by such
Director prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or payment of Expenses
than would be afforded currently under the Company's Certificate of Incorporation, Bylaws and this Agreement, it is the intent of the parties hereto that Director shall enjoy by this Agreement the
greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other right or remedy. 

        (b)  The
Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of
insurance with reputable insurance companies providing the directors, officers, employees, or agents of the Company with coverage for losses from wrongful acts, or to ensure the Company's performance
of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such
coverage. To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors of the Company or of any other corporation, partnership, joint venture,
trust, employee benefits plan or other enterprise which the Director serves at the request of the Company, Director shall be covered by such policy or policies in such manner as to provide the
Director the same rights and benefits as are accorded to the most favorably insured of the Company's directors. The Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of the Director, all amounts payable as a result of such proceeding in accordance with the terms of such policies. 

        (c)  In
the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Director, who shall
execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

        Section 14.    Duration of Agreement.    This Agreement shall continue until and terminate upon the later of:
(a) 10 years after the date that Director shall have ceased to serve as a director or officer of the Company or as a director, officer, employee or agent of any other corporation,
partnership, joint
venture, trust, employee benefit plan or other enterprise which Director served at the request of the Company ("Ten Year Anniversary Date"); or (b) 1 year after the final termination of
each and every Proceeding, commenced prior to the Ten Year Anniversary Date. 

        Section
15.    Successors and Assigns.    This Agreement shall be binding upon the Company and its successors and
assigns and shall inure to the benefit of Director and his heirs, executors and administrators.

 

        Section 16.    Severability.    If any provision or provisions of this Agreement shall be held to be invalid,
illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of
any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or
impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable
law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of
any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect
to the intent manifested thereby. 

        Section 17.    Entire Agreement.    Except as otherwise specified herein, this Agreement constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with
respect to the subject matter hereof. 

        Section 18.    Effectiveness of Agreement.    This Agreement shall be effective as of the date set forth on the
first page and may apply to acts or omissions of Director which occurred prior to such date if Director was an officer, director, employee or other agent of the Company, or was serving at the request
of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, at the time such act or omission occurred, and shall continue to
exist after the rescission or restrictive modification of this Agreement with respect to events occurring prior to such rescission or restrictive modification. 

        Section 19.    Modification and Waiver.    No supplement, modification or amendment of this Agreement shall be
binding unless executed in writing by the parties thereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement
nor shall any waiver constitute a continuing waiver. 

        Section 20.    Notices.    All notices, requests, demands and other communications under this Agreement shall
be in writing and shall be deemed to have been duly given (a) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or
(b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed: 

        If
to Director, at the address indicated on the signature page of this Agreement, or such other address as Director shall provide to the Company 

        If
to the Company, to 

Storage
Technology Corporation

Attention: General Counsel

One StorageTek Drive

Mail Stop 4309

Louisville, Colorado 80028-4309 

or
to any other address as may have been furnished to Director by the Company. 

        Section 21.    Contribution.    To the fullest extent permissible under applicable law, if the indemnification
provided for in this Agreement is unavailable to Director for any reason whatsoever, the Company, in lieu of indemnifying Director, shall contribute to the amount incurred by Director, whether for
judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such
proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding

  
in order to reflect (i) the relative benefits received by the Company and Director as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the
relative fault of the Company (and its directors, officers, employees and agents) and Director in connection with such event(s) and/or transaction(s). 

        Section 22.    Applicable Law and Consent to Jurisdiction.    This Agreement and the legal relations among the
parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. The Company and Director hereby
irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware
(the "Delaware Court"), and not in any other state or federal court in the United States of America or any court in
any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement,
(iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action
or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. 

        Section 23.    Identical Counterparts.    This Agreement may be executed in one or more counterparts, each of
which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this Agreement. 

        Section 24.    Miscellaneous.    Use of the masculine pronoun shall be deemed to include usage of the feminine
pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction
thereof. 

        IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written. 

	STORAGE TECHNOLOGY CORPORATION	 
	

By:	

	

 
	

[NAME OF DIRECTOR]
	

 
	

ADDRESS OF DIRECTOR:

	

 

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Exhibit 10.32    
  

STORAGE TECHNOLOGY CORPORATION

1993 NONSTATUTORY STOCK OPTION PLAN  

        1.    Purposes of the Plan.    The purposes of this Stock Option Plan are: 

	•
	to
attract and retain the best available personnel for positions of substantial responsibility,

	•
	to
provide additional incentive to Employees and Consultants, and

	•
	to
promote the success of the Company's business. 

        All
options granted under the Plan shall be Nonstatutory Stock Options. 

        2.    Definitions.    As used herein, the following definitions shall apply: 

        (a)  "Administrator" means the Board or any of its Committees as shall be administering the Plan, in accordance with
Section 4 of the Plan. 

        (b)  "Board" means the Board of Directors of the Company. 

        (c)  "Code" means the Internal Revenue Code of 1986, as amended. 

        (d)  "Committee" means a Committee appointed by the Board in accordance with Section 4 of the Plan. 

        (e)  "Common Stock" means the Common Stock of the Company. 

        (f)    "Company" means Storage Technology Corporation, a Delaware corporation. 

        (g)  "Consultant" means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services
and who is compensated for such services, provided that the term "Consultant" shall not include Directors. 

        (h)  "Continuous Status as an Employee or Consultant" means that the employment or consulting relationship is not interrupted
or terminated by the Company, any Parent or Subsidiary. Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of: (i) any leave of absence approved by
the Board, including sick leave, military leave, or any other personal leave; or (ii) transfers between locations of the Company or between the Company, its Parent, its Subsidiaries or its
successor. 

        (i)    "Director" means a member of the Board. 

        (j)    "Disability" means total and permanent disability as defined in Section 22(e)(3) of the Code. 

        (k)  "Employee" means any person (except Officers and Directors) employed by the Company or any Parent or Subsidiary of the
Company. Neither service as a Director nor payment of a director's fee by the Company shall be sufficient to constitute "employment" by the Company. 

        (l)    "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        (m)  "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: 

          (i)  If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the National Market System of the National
Association of Securities Dealers, Inc. Automated Quotation ("NASDAQ") System, the Fair Market Value of a Share of Common Stock shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such system or exchange (or the exchange with the greatest volume of trading in Common Stock) on the last market trading

  
day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

        (ii)  If
the Common Stock is quoted on the NASDAQ System (but not on the National Market System thereof) or is regularly quoted by a recognized securities dealer but selling
prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the last market trading day prior to the
day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

        (iii)  In
the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Administrator. 

        (n)  "Nonstatutory Stock Option" means an Option not intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and the regulations promulgated thereunder. 

        (o)  "Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and
the rules and regulations promulgated thereunder. 

        (p)  "Option" means a stock option granted pursuant to the Plan. 

        (q)  "Option Agreement" means a written agreement between the Company and an Optionee evidencing the terms and conditions of
an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 

        (r)  "Optioned Stock" means the Common Stock subject to an Option. 

        (s)  "Optionee" means an Employee or Consultant who holds an outstanding Option. 

        (t)    "Parent" means a "parent corporation", whether now or hereafter existing, as defined in Section 424(e) of the
Code. 

        (u)  "Plan" means this 1993 Nonstatutory Stock Option Plan. 

        (v)  "Share" means a share of the Common Stock, as adjusted in accordance with Section 12 of the Plan. 

        (w)  "Subsidiary" means a "subsidiary corporation", whether now or hereafter existing, as defined in Section 424(f) of
the Code. 

        3.    Stock Subject to the Plan.    Subject to the provisions of Section 12 of the Plan, the maximum aggregate
number of Shares which may be optioned and sold under the Plan is four hundred and fifty thousand (450,000) Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. 

        If
an Option expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased Shares that were subject
thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). 

        4.    Administration of the Plan.    

        (a)    Procedure.    The Plan shall be administered by (A) the Board or (B) a committee consisting of
Directors as may be designated by the Board. Once appointed, such Committee shall serve in its designated capacity until otherwise directed by the Board. The Board may increase the size of the
Committee and appoint additional members, remove members (with or without cause) and substitute new members, fill vacancies (however caused), and remove all members of the Committee and thereafter
directly administer the Plan.

 

        (b)    Powers of the Administrator.    Subject to the provisions of the Plan, and in the case of a Committee, subject
to the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion: 

          (i)  to
determine the Fair Market Value of the Common Stock, in accordance with Section 2(n) of the Plan; 

        (ii)  to
select the Consultants and Employees to whom Options may be granted hereunder; 

        (iii)  to
determine whether and to what extent Options or any combination thereof, are granted hereunder; 

        (iv)  to
determine the number of shares of Common Stock to be covered by each Option granted hereunder; 

        (v)  to
approve the form(s) of agreement for use under the Plan; 

        (vi)  to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any
restriction or limitation regarding any Option or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 

      (vii)  to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan; 

      (viii)  to
prescribe, amend and rescind rules and regulations relating to the Plan; 

        (ix)  to
modify or amend each Option (subject to Section 14(b) of the Plan); 

        (x)  to
authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option previously granted by the Administrator; 

        (xi)  to
determine the terms and restrictions applicable to Options; and 

      (xii)  to
make all other determinations deemed necessary or advisable for administering the Plan. 

        (c)    Effect of Administrator's Decision.    The Administrator's decisions, determinations and interpretations shall
be final and binding on all Optionees and any other holders of Options. 

        5.    Eligibility.    Nonstatutory Stock Options may be granted under this Plan only to Employees and Consultants. If
otherwise eligible, an Employee or Consultant who has been granted an Option may be granted additional Options. 

        6.    No Right of Employment.    Neither the Plan nor any Option shall confer upon an Optionee any right with respect
to continuing the Optionee's employment or consulting relationship with the Company, nor shall they interfere in any way with the Optionee's right or the Company's right to terminate such employment
at any time, with or without cause. 

        7.    Term of Plan.    The Plan shall become effective upon its adoption by the Board. It shall continue in effect for
a term of ten (10) years unless terminated earlier under Section 14 of the Plan.

 

        8.    Term of Option.    The term of each Option shall be stated in the Option Agreement. 

        9.    Option Exercise Price and Consideration.    

        (a)    Exercise Price.    The per share exercise price for the Shares to be issued pursuant to exercise of an Option
shall be determined by the Administrator. 

        (b)    Waiting Period and Exercise Dates.    At the time an Option is granted, the Administrator shall fix the period
within which the Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised. In so doing, the Administrator may specify that an Option may
not be exercised until the completion of a service period. 

        (c)    Form of Consideration.    The Administrator shall determine the acceptable form of consideration for exercising
an Option, including the method of payment. Such consideration may consist entirely of: 

          (i)  cash;

        (ii)  check;

        (iii)  other
Shares which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six months on the date of
surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 

        (iv)  delivery
of a properly executed notice of exercise, together with such other documentation as the Administrator and the broker, if applicable, shall require to effect
an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price; 

        (v)  any
combination of the foregoing methods of payment; or 

        (vi)  such
other consideration and method of payment for the issuance of Shares to the extent permitted by applicable laws. 

        10.    Exercise of Option.    

        (a)    Procedure for Exercise; Rights as a Stockholder.    Any Option granted hereunder shall be exercisable according
to the terms of the Plan and at such times and under such conditions as are determined by the Administrator and set forth in the Option Agreement. An Option shall be deemed exercised when the Company
receives: (i) an executed written notice of exercise from the person entitled to exercise the Option, (ii) full payment for the Shares with respect to which the Option is being
exercised, and (iii) full payment for any federal, state and local tax withholding obligations and fees arising from the exercise of the Option. Full payment may consist of any consideration
and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan, except that federal, state and local tax withholding obligations and fees must be paid by cash
or check. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the stock
certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive
dividends or any other rights as a stockholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised and full
payment is made. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 12 of the
Plan.

 

        (b)    Effect of Exercise on Shares Available.    Exercising an Option in any manner shall decrease the number of
Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 

        (c)    No Fractional Shares.    An Option may not be exercised for a fraction of a Share. 

        (d)    Exercise Following Termination.    

        (i)    Termination of Employment or Consulting Relationship.    In the event that an Optionee's Continuous Status as
an Employee or Consultant terminates (but not in the event of a change of status from Employee to Consultant or from Consultant to Employee), other than upon the Optionee's death or Disability, the
Optionee may exercise his or her Option, but only within three months from the date of termination (or within such lesser period as may be specified in the Option Agreement), and only to the extent
that the Optionee was entitled to exercise it at the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). If, at the date of
termination, the Optionee is not entitled to exercise his or her entire Option, the Shares covered by the unexercisable portion of the Option shall immediately revert to the Plan. If, after
termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the
Plan. 

        (ii)    Disability of Optionee.    In the event that an Optionee's Continuous Status as an Employee or Consultant
terminates as a result of the Optionee's Disability, the Optionee may exercise his or her Option at any time within six (6) months from the date of such termination (or within such lesser
period as may be specified in the Option Agreement), but only to the extent that the Optionee was entitled to exercise it at the date of such termination (but in no event later than the expiration of
the term of such Option as set forth in the Option Agreement). If, at the date of termination, the Optionee is not entitled to exercise his or her entire Option, the Shares covered by the
unexercisable portion of the Option shall immediately revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan. 

        (iii)    Death of Optionee.    In the event of the death of an Optionee, the Option may be exercised at any time
within twelve (12) months (or within such lesser period as may be specified in the Option
Agreement) following the date of death (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement), by the Optionee's estate or by a person who acquired
the right to exercise the Option by bequest or inheritance, but only to the extent that the Optionee was entitled to exercise the Option at the date of death. If, at the time of death, the Optionee
was not entitled to exercise his or her entire Option, the Shares covered by the unexercisable portion of the Option shall immediately revert to the Plan. If, after death, the Optionee's estate or a
person who acquired the right to exercise the Option by bequest or inheritance does not exercise the Option within the time specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan. 

        11.    Non-Transferability of Options.    An Option may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. 

        12.    Adjustments Upon Changes in Capitalization, Dissolution, Merger, Asset Sale or Change of Control.    

 

        (a)    Changes in Capitalization.    The number of shares of Common Stock covered by each outstanding Option, and the
number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of 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 Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an Option. 

        (b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, to the
extent that an Option has not been previously exercised, it will terminate immediately prior to the consummation of such proposed action. The Board may, in the exercise of its sole discretion in such
instances, declare that any Option shall terminate as of a date fixed by the Board and give each Optionee the right to exercise his or her Option as to all or any part of the Optioned Stock, including
Shares as to which the Option would not otherwise be exercisable. 

        (c)    Merger or Asset Sale.    Subject to the provisions of paragraph (d) hereof, in the event of a merger of
the Company with or into another corporation, or the sale of substantially all of the assets of the Company (i) each outstanding Option may be assumed or an equivalent option or right may be
substituted by the successor corporation or a Parent or Subsidiary of the successor corporation; or, (ii) in lieu of such assumption or substitution, the Administrator shall provide that
(a) the Optionee shall have the right to exercise the Option as to all or a portion of the Optioned Stock, including Shares as to which it would not otherwise be exercisable, or (b) all
Options that have not been previously exercised will terminate immediately prior to the consummation of the merger or sale of assets. If the Administrator makes an Option exercisable in lieu of
assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee that the Option shall be fully exercisable for a specified period from the date of
such notice, and the Option will terminate upon the expiration of such period. If the Option is to terminate, the Administrator shall notify the Optionee, which notice shall be given at least
15 days prior to the date the merger or sale of assets is consummated. For the purposes of this paragraph, the Option shall be considered assumed if, following the merger or sale of assets, the
option or right confers the right to purchase, for each Share of Optioned Stock subject to the Option immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or
other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets was not
solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of
the Option, for each Share of Optioned Stock subject to the Option, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration
received by holders of Common Stock in the merger or sale of assets.

 

        (d)    Change in Control.    In the event of a "Change in Control" of the Company, as defined in paragraph (e)
below, then the following acceleration and valuation provisions shall apply: 

          (i)  Except
as otherwise determined by the Board, in its discretion, prior to the occurrence of a Change in Control, any Options outstanding on the date such Change in
Control is determined to have occurred that are not yet exercisable and vested on such date shall become fully exercisable and vested; 

        (ii)  Except
as otherwise determined by the Board, in its discretion, prior to the occurrence of a Change in Control, all outstanding Options, to the extent they are
exercisable and vested (including Options that shall become exercisable and vested pursuant to subparagraph (i) above), shall be terminated in exchange for a cash payment equal to the Change in
Control Price, (reduced by the exercise price applicable to such Options). These cash proceeds shall be paid to the Optionee or, in the event of death of an Optionee prior to payment, to the estate of
the Optionee or to a person who acquired the right to exercise the Option by bequest or inheritance. 

        (e)    Definition of "Change in Control".    For purposes of this Section 12, a "Change in Control" means the
happening of any of the following: 

          (i)  When
any "person," as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, a Subsidiary or a Company employee benefit plan,
including any trustee of such plan acting as trustee) 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 twenty-five percent (25%) of the combined voting power of the Company's then outstanding securities entitled to vote generally in the election of
directors; or 

        (ii)  A
merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least seventy-five
percent (75%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of
the Company approve an agreement for the sale or disposition by the Company of all or substantially all the Company's assets; or 

        (iii)  A
change in the composition of the Board of Directors of the Company occurring within a two-year period, as a result of which fewer than a majority of the
directors are Incumbent Directors. "Incumbent Directors" shall mean directors who either (A) are directors of the Company as of the date the Plan is approved by the stockholders, or
(B) are elected, or nominated for election, to the Board of Directors of the Company with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or
nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company). 

        (f)    Change in Control Price.    For purposes of this Section 12, "Change in Control Price" shall be, as
determined by the Board, (i) the highest Fair Market Value of a Share within the 60 day period immediately preceding the date of determination of the Change in Control Price by the Board
(the "60-Day Period"), or (ii) the highest price paid or offered per Share, as determined by the Board, in any bona fide transaction or bona fide offer related to the Change in
Control of the Company, at any time within the 60-Day Period, or (iii) some lower price as the Board, in its discretion, determines to be a reasonable estimate of the fair market
value of a Share.

 

        13.    Date of Grant.    The date of grant of an Option shall be, for all purposes, the date on which the
Administrator makes the determination granting such Option, or such other later date as is determined by the Administrator. Notice of the determination shall be provided to each Optionee within a
reasonable time after the date of such grant. 

        14.    Amendment and Termination of the Plan.    

        (a)    Amendment and Termination.    The Board may at any time amend, alter, suspend or terminate the Plan. 

        (b)    Effect of Amendment or Termination.    No amendment, alteration, suspension or termination of the Plan shall
impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. 

        15.    Conditions Upon Issuance of Shares.    

        (a)    Legal Compliance.    Shares shall not be issued pursuant to the exercise of an Option unless the exercise of
such Option and the issuance and delivery of such Shares shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the
rules and regulations promulgated thereunder, and the requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted, and shall be further subject to the
approval of counsel for the Company with respect to such compliance. 

        (b)    Investment Representations.    As a condition to the exercise of an Option, the Company may require the person
exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is required. 

        16.    Liability of Company.    

        (a)    Inability to Obtain Authority.    The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

        (b)    Grants Exceeding Allotted Shares.    If the Optioned Stock covered by an Option exceeds, as of the date of
grant, the number of Shares which may be issued under the Plan without additional stockholder approval, such Option shall be void with respect to such excess Optioned Stock. 

        17.    Reservation of Shares.    The Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 

QuickLinks

Exhibit 10.32

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