Document:

Investment Advisor Agreement

 Exhibit 10.23 
  
 [Letterhead of Pacific Investment Management Company LLC] 
  
 March 1, 2004 
  
 Ms. Beth Halberstadt 
 State Street Bank and Trust Company 
 Batterymarch Park III 
 Three Pine Hill Drive 
 Quincy, MA 02169 
  

	 	Re:	 	Investment Advisor Agreement 

  
 Dear Ms. Halberstadt: 
  
 In connection with the Investment Advisor Agreement dated July 1, 2002 (the “Agreement”), by and between State Street Bank and Trust Company
(“State Street”) for the Intermediate Bond Equity Fund (the “Fund”) established under the American Bar Association Members/State Street Collective Trust (the “Collective Trust”), and Pacific Investment Management
Company LLC (“Manager”), State Street and Manager agree to and acknowledge the following: 
  
 1. State Street has stated to Manager its intention to increase the funding of the Subaccount by an amount currently estimated to
be approximately $155 million (One Hundred Fifty Five Million and 00/100 Dollars) in cash on July 1, 2004 due to investment in the Subaccount of the fixed-income investments held by the Balanced Fund established under the Collective Trust (the
“Balanced Fund”). The Manager’s appointment as investment advisor to State Street to assist State Street in its management of such assets of the Fund as are held in the Subaccount shall be deemed to include such assets of the Balanced
Fund as are held in the Subaccount for all purposes of the Agreement. 
  
 2. There shall not be any restrictions on withdrawal from and transfer to the Fund by the Balanced Fund. State Street, on behalf of the Balanced Fund, may request withdrawal of any number of Units of the Fund
on any Business Day. 
  
 3. In providing
its investment advice and other related services with respect to the Subaccount, Manager shall act in accordance with (i) the investment objectives and policies for the Fund as set forth in the Fund Declaration pursuant to which the Fund is
established and maintained, as the same may be amended from time to time by State Street, (ii) any additional investment objectives and policies that have been established by State Street for the Subaccount as set forth in Appendix C to the
Agreement, as the same may be amended from time to time by State Street, (iii) the investment objectives and policies for the Balanced Fund as set forth in the Fund Declaration pursuant to which the 

 
Balanced Fund is established and maintained, as set forth in Appendix A hereto, as the same may be amended from time to time by State Street, (iv) any
additional investment objectives and policies that have been set forth in the Registration Statement on Form S-1 filed with the Securities and Exchange Commission relating to the Fund or the Balanced Fund, as the same may be amended from time to
time by State Street. 
  
 All capitalized terms not otherwise
defined herein shall have the meaning set forth in the Agreement. 
  
 As acknowledgement to the foregoing, kindly sign below and return one fully executed version to us using the mailer provided. A duplicate original is enclosed for your files. 
  
 Thank you. 
  
 Sincerely, 
  

	
	 /S/    BRENT L. HOLDEN

	Brent L. Holden
	Managing Director

  

			
	 Acknowledged:

	
	 State Street Bank and Trust Company

		
	 By:
	 	 /S/    SUSAN C.
DANIELS        

		
	 Name:
	 	 Susan C. Daniels

		
	 Title:
	 	 Vice President

		
	 Date:
	 	 March 9, 2004

  

 2 

 Appendix A 
  
 American Bar Association Members/State Street 
 Collective Trust 
  
 Eighth Amended
and Restated Fund Declaration 
 Balanced Fund 
  
 [Attached] 
  

 3Letter Agreement

 Exhibit 10.24 
  
 [Letterhead of Pacific Investment Management Company LLC] 
  
 March 1, 2004 
  
 Ms. Beth Halberstadt 
 State Street Bank and Trust Company 
 Batterymarch Park III 
 Three Pine Hill Drive 
 Quincy, MA 02169 
  

	 	Re:	 	Side Letter to Investment Advisor Agreement 

  
 Dear Ms. Halberstadt: 
  
 In connection with the Investment Advisor Agreement dated effective as of June 1, 2004 (the “Agreement”), by and between State Street Bank and
Trust Company (“State Street”) for the Balanced Fund (the “Fund”), established under the American Bar Association Members/State Street Collective Trust, and Pacific Investment Management Company LLC (“Manager”), and in
addition to those terms and conditions stated therein, State Street and Manager further agree to the following: 
  
 1. Aggregation of Orders. Provided the investment objectives of the Fund are adhered to, the Trustee agrees that the Advisor may aggregate sales
and purchase orders of securities, commodities and other investments held in the Subaccount with similar orders being made simultaneously for other accounts managed by the Advisor or with accounts of the affiliates of the Advisor, if in the
Advisor’s reasonable judgment such aggregation shall result in an overall economic benefit to the Subaccount, taking into consideration the advantageous selling or purchase price, brokerage commission and other expenses. The Trustee
acknowledges that the determination of such economic benefit to the Subaccount by the Advisor is subjective and represents the Advisor’s evaluation that the Subaccount is benefited by relatively better purchase or sales prices, lower commission
expenses and beneficial timing of transactions or a combination of these and other factors. 
  
 The Advisor has delivered to the Trustee a copy of its Disclosure Document, as amended, dated January 31, 2004, on file with the Commodity Futures Trading Commission. The Trustee hereby acknowledges receipt of such
copy. 
  
 All capitalized terms not otherwise defined herein shall
have the meaning set forth in the Agreement. 

 As acknowledgement to the foregoing, kindly sign below and return one fully executed version to us using
the mailer provided, a duplicate original is enclosed for your files. Thank you. 
  
 Sincerely, 
  

	
	
	 /S/    BRENT L.
HOLDEN        

	

	 Brent L. Holden
 Managing
Director

  

			
	 Acknowledged:
  
 State Street Bank and Trust Company

		
	 By:
	 	 /S/    SUSAN C. DANIELS

			
		
	 Name:
	 	 Susan C. Daniels

			
		
	 Title:
	 	 Vice President

			
		
	 Date:
	 	 March 9, 2004

  

 21999 Omnibus Equity Incentive Plan, as amended to date

 EXHIBIT 10.2 
  
 MARIMBA, INC. 
  
 1999 OMNIBUS EQUITY INCENTIVE PLAN 
  
 (AS AMENDED THROUGH
NOVEMBER 13, 2003) 
  

 TABLE OF CONTENTS 
  

					
	 	  	Page

	 ARTICLE 1. INTRODUCTION
	  	1
		
	 ARTICLE 2. ADMINISTRATION
	  	1
	 2.1
	  	 Committee Composition
	  	1
	 2.2
	  	 Committee Responsibilities
	  	1
	 2.3
	  	 Committee for Non-Officer Grants
	  	2
		
	 ARTICLE 3. SHARES AVAILABLE FOR GRANTS
	  	2
	 3.1
	  	 Basic Limitation
	  	2
	 3.2
	  	 Annual Increase in Shares
	  	2
	 3.2
	  	 Additional Shares
	  	2
	 3.3
	  	 Dividend Equivalents
	  	2
		
	 ARTICLE 4. ELIGIBILITY
	  	2
	 4.1
	  	 Incentive Stock Options
	  	2
	 4.2
	  	 Other Grants
	  	3
		
	 ARTICLE 5. OPTIONS
	  	3
	 5.1
	  	 Stock Option Agreement
	  	3
	 5.2
	  	 Number of Shares
	  	3
	 5.3
	  	 Exercise Price
	  	3
	 5.4
	  	 Exercisability and Term
	  	3
	 5.5
	  	 Modification or Assumption of Options
	  	3
	 5.6
	  	 Buyout Provisions
	  	4
		
	 ARTICLE 6. PAYMENT FOR OPTION SHARES
	  	4
	 6.1
	  	 General Rule
	  	4
	 6.2
	  	 Surrender of Stock
	  	4
	 6.3
	  	 Exercise/Sale
	  	4
	 6.4
	  	 Exercise/Pledge
	  	4
	 6.5
	  	 Promissory Note
	  	4
	 6.6
	  	 Other Forms of Payment
	  	5
		
	 ARTICLE 7. STOCK APPRECIATION RIGHTS
	  	5
	 7.1
	  	 SAR Agreement
	  	5
	 7.2
	  	 Number of Shares
	  	5
	 7.3
	  	 Exercise Price
	  	5
	 7.4
	  	 Exercisability and Term
	  	5
	 7.5
	  	 Exercise of SARs
	  	5
	 7.6
	  	 Modification or Assumption of SARs
	  	6

  

 i 

					
		
	 ARTICLE 8. RESTRICTED SHARES
	  	6
	 8.1
	  	 Restricted Stock Agreement
	  	6
	 8.2
	  	 Payment for Awards
	  	6
	 8.3
	  	 Vesting Conditions
	  	6
	 8.4
	  	 Voting and Dividend Rights
	  	6
		
	 ARTICLE 9. STOCK UNITS
	  	6
	 9.1
	  	 Stock Unit Agreement
	  	6
	 9.2
	  	 Payment for Awards
	  	6
	 9.3
	  	 Vesting Conditions
	  	7
	 9.4
	  	 Voting and Dividend Rights
	  	7
	 9.5
	  	 Form and Time of Settlement of Stock Units
	  	7
	 9.6
	  	 Death of Recipient
	  	7
	 9.7
	  	 Creditors’ Rights
	  	7
		
	 ARTICLE 10. CHANGE IN CONTROL
	  	7
		
	 ARTICLE 11. PROTECTION AGAINST DILUTION
	  	8
	 11.1
	  	 Adjustments
	  	8
	 11.2
	  	 Dissolution or Liquidation
	  	8
	 11.3
	  	 Reorganizations
	  	8
		
	 ARTICLE 12. DEFERRAL OF AWARDS
	  	9
		
	 ARTICLE 13. AWARDS UNDER OTHER PLANS
	  	9
		
	 ARTICLE 14. PAYMENT OF DIRECTOR’S FEES IN SECURITIES
	  	9
	 14.1
	  	 Effective Date
	  	9
	 14.2
	  	 Elections to Receive NSOs, Restricted Shares or Stock Units
	  	10
	 14.3
	  	 Number and Terms of NSOs, Restricted Shares or Stock Units
	  	10
		
	 ARTICLE 15. LIMITATION ON RIGHTS
	  	10
	 15.1
	  	 Retention Rights
	  	10
	 15.2
	  	 Stockholders’ Rights
	  	10
	 15.3
	  	 Regulatory Requirements
	  	10
		
	 ARTICLE 16. WITHHOLDING TAXES
	  	10
	 16.1
	  	 General
	  	10
	 16.2
	  	 Share Withholding
	  	10
		
	 ARTICLE 17. FUTURE OF THE PLAN
	  	11
	 17.1
	  	 Term of the Plan
	  	11
	 17.2
	  	 Amendment or Termination
	  	11
		
	 ARTICLE 18. LIMITATION ON PAYMENTS
	  	11
	 18.1
	  	 Scope of Limitation
	  	11
	 18.2
	  	 Basic Rule
	  	12
	 18.3
	  	 Reduction of Payments
	  	12

  

 ii 

					
	 18.4
	  	 Overpayments and Underpayments
	  	13
	 18.5
	  	 Related Corporations
	  	13
		
	 ARTICLE 19. DEFINITIONS
	  	13

  

 iii 

 MARIMBA, INC. 
  
 1999 OMNIBUS EQUITY INCENTIVE
PLAN 
  
 ARTICLE 1. INTRODUCTION.

  
 The Plan was adopted by the Board on February 2, 1999 to
be effective as of the date of the IPO. The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range
objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased
stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of Restricted Shares, Stock Units, Options (which may constitute incentive stock options or nonstatutory stock options) or stock appreciation rights.

  
 The Plan shall be governed by, and construed in accordance
with, the laws of the State of Delaware (except their choice-of-law provisions). 
  
 ARTICLE 2. ADMINISTRATION. 
  
 2.1 Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist exclusively of two or more directors of the Company, who shall be appointed by the Board. In addition, the composition of
the Committee shall satisfy: 
  
 (a) Such
requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and 
  
 (b) Such requirements as the Internal Revenue Service may
establish for outside directors acting under plans intended to qualify for exemption under section 162(m)(4)(C) of the Code. 
  
 2.2 Committee Responsibilities. The Committee shall (a) select the Employees, Outside Directors and Consultants who are to receive Awards
under the Plan, (b) determine the type, number, vesting requirements and other features and conditions of such Awards, (c) interpret the Plan and (d) make all other decisions relating to the operation of the Plan. The Committee may adopt such rules
or guidelines as it deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall be final and binding on all persons. 
  
 2.3 Committee for Non-Officer Grants. The Board may also appoint a secondary committee of the Board, which shall be composed of one or more
directors of the Company who need not satisfy the requirements of Section 2.1. Such secondary committee may administer the Plan with respect to Employees and Consultants who are not considered officers or directors of 

  

 
the Company under section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and Consultants and may determine all features and
conditions of such Awards. Within the limitations of this Section 2.3, any reference in the Plan to the Committee shall include such secondary committee. 
  
 ARTICLE 3. SHARES AVAILABLE FOR GRANTS. 
  
 3.1 Basic Limitation. Common Shares issued pursuant to the Plan may be authorized but unissued shares or treasury shares. The aggregate
number of Options, SARs, Stock Units and Restricted Shares awarded under the Plan shall not exceed: (a) 1,250,000, plus the number of shares under the Predecessor Plan (up to a maximum of 2,399,653 shares) that (i) are available for issuance as of
the 2001 Annual Meeting, (ii) are subject to outstanding options or other awards that are canceled or expire after the 2001 Annual Meeting and/or (iii) are issued but are subject to forfeiture or a right of repurchase by the Company and that are
forfeited or repurchased by the Company after the date of the 2001 Annual Meeting (collectively “shares remaining available for issuance”); plus (b) the additional Common Shares described in Section 3.2 and 3.3. The limitations of this
Section 3.1 and 3.2 shall be subject to adjustment pursuant to Article 11. 
  
 3.2 Annual Increase in Shares. As of January 1 of each year, commencing with the year 2000, the aggregate number of Options, SARs, Stock Units and Restricted Shares that may be awarded under the Plan
shall automatically increase by a number equal to the lesser of (a) 4% of the total number of Common Shares then outstanding or (b) 1,250,000. 
  
 3.3 Additional Shares. If Restricted Shares or Common Shares issued upon the exercise of Options are forfeited (including any shares
exercised under options granted under the Predecessor Plan), then such Common Shares shall again become available for Awards under the Plan. If Stock Units, Options or SARs (including any options incorporated from the Predecessor Plan) are forfeited
or terminate for any other reason before being exercised, then the corresponding Common Shares shall again become available for Awards under the Plan. If Stock Units are settled, then only the number of Common Shares (if any) actually issued in
settlement of such Stock Units shall reduce the number available under Section 3.1 and the balance shall again become available for Awards under the Plan. If SARs are exercised, then only the number of Common Shares (if any) actually issued in
settlement of such SARs shall reduce the number available under Section 3.1 and the balance shall again become available for Awards under the Plan. The foregoing notwithstanding, the aggregate number of Common Shares that may be issued under the
Plan upon the exercise of ISOs shall not be increased when Restricted Shares or other Common Shares are forfeited. 
  
 3.4 Dividend Equivalents. Any dividend equivalents paid or credited under the Plan shall not be applied against the number of Restricted
Shares, Stock Units, Options or SARs available for Awards, whether or not such dividend equivalents are converted into Stock Units. 
  
 ARTICLE 4. ELIGIBILITY. 
  
 4.1 Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the
grant of ISOs. In addition, an 

  

 2 

 
Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company or any of its Parents or Subsidiaries
shall not be eligible for the grant of an ISO unless the requirements set forth in section 422(c)(6) of the Code are satisfied. 
  
 4.2 Other Grants. Only Employees, Outside Directors and Consultants shall be eligible for the grant of Restricted Shares, Stock Units, NSOs
or SARs. 
  
 ARTICLE 5. OPTIONS. 
  
 5.1 Stock Option Agreement. Each grant of an Option under the
Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Stock
Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in the
Optionee’s other compensation. A Stock Option Agreement may provide that a new Option will be granted automatically to the Optionee when he or she exercises a prior Option and pays the Exercise Price in the form described in Section 6.2.

  
 5.2 Number of Shares. Each Stock Option
Agreement shall specify the number of Common Shares subject to the Option and shall provide for the adjustment of such number in accordance with Article 11. Options granted to any Optionee in a single fiscal year of the Company shall not cover more
than 1,000,000 Common Shares, except that Options granted to a new Employee in the fiscal year of the Company in which his or her service as an Employee first commences shall not cover more than 1,500,000 Common Shares. The limitations set forth in
the preceding sentence shall be subject to adjustment in accordance with Article 11. 
  
 5.3 Exercise Price. Each Stock Option Agreement shall specify the Exercise Price; provided that the Exercise Price under an ISO shall in no event be less than 100% of the Fair Market Value of a Common
Share on the date of grant and the Exercise Price under an NSO shall in no event be less than 85% of the Fair Market Value of a Common Share on the date of grant. In the case of an NSO, a Stock Option Agreement may specify an Exercise Price that
varies in accordance with a predetermined formula while the NSO is outstanding. 
  
 5.4 Exercisability and Term. Each Stock Option Agreement shall specify the date or event when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify
the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the date of grant. A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or
retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s service. Options may be awarded in combination with SARs, and such an Award may provide that the Options
will not be exercisable unless the related SARs are forfeited. 
  
 5.5 Modification or Assumption of Options. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding options or may accept the cancellation of 

  

 3 

 
outstanding options (whether granted by the Company or by another issuer) in return for the grant of new options for the same or a different number of shares
and at the same or a different exercise price. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, alter or impair his or her rights or obligations under such Option. 
  
 5.6 Buyout Provisions. The Committee may at any time (a) offer
to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Committee
shall establish. 
  
 ARTICLE 6. PAYMENT FOR OPTION SHARES.

  
 6.1 General Rule. The entire Exercise Price
of Common Shares issued upon exercise of Options shall be payable in cash or cash equivalents at the time when such Common Shares are purchased, except as follows: 
  
 (a) In the case of an ISO granted under the Plan, payment shall be made only pursuant to the express
provisions of the applicable Stock Option Agreement. The Stock Option Agreement may specify that payment may be made in any form(s) described in this Article 6. 
  
 (b) In the case of an NSO, the Committee may at any time accept payment in any form(s) described in this
Article 6. 
  
 6.2 Surrender of Stock. To the extent
that this Section 6.2 is applicable, all or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, Common Shares that are already owned by the Optionee. Such Common Shares shall be valued at their Fair Market
Value on the date when the new Common Shares are purchased under the Plan. The Optionee shall not surrender, or attest to the ownership of, Common Shares in payment of the Exercise Price if such action would cause the Company to recognize
compensation expense (or additional compensation expense) with respect to the Option for financial reporting purposes. 
  
 6.3 Exercise/Sale. To the extent that this Section 6.3 is applicable, all or any part of the Exercise Price and any withholding taxes may be
paid by delivering (on a form prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or part of the Common Shares being purchased under the Plan and to deliver all or part of the sales proceeds
to the Company. 
  
 6.4 Exercise/Pledge. To the
extent that this Section 6.4 is applicable, all or any part of the Exercise Price and any withholding taxes may be paid by delivering (on a form prescribed by the Company) an irrevocable direction to pledge all or part of the Common Shares being
purchased under the Plan to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company. 
  
 6.5 Promissory Note. To the extent that this Section 6.5 is applicable, all or any part of the Exercise Price
and any withholding taxes may be paid by delivering (on a form prescribed by the Company) a full-recourse promissory note. However, the par value of the Common Shares being purchased under the Plan, if newly issued, shall be paid in cash or cash
equivalents. 
  

 4 

 6.6 Other Forms of Payment. To the extent that this Section 6.6 is applicable, all or any
part of the Exercise Price and any withholding taxes may be paid in any other form that is consistent with applicable laws, regulations and rules. 
  
 ARTICLE 7. STOCK APPRECIATION RIGHTS. 
  
 7.1 SAR Agreement. Each grant of an SAR under the Plan shall be evidenced by an SAR Agreement between the Optionee and the Company. Such SAR
shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted
in consideration of a reduction in the Optionee’s other compensation. 
  
 7.2 Number of Shares. Each SAR Agreement shall specify the number of Common Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Article 11. SARs
granted to any Optionee in a single fiscal year of the Company shall in no event pertain to more than 1,000,000 Common Shares, except that SARs granted to a new Employee in the fiscal year of the Company in which his or her service as an Employee
first commences shall not pertain to more than 1,500,000 Common Shares. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with Article 11. 
  
 7.3 Exercise Price. Each SAR Agreement shall specify the Exercise Price. An SAR Agreement may specify an
Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. 
  
 7.4 Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The
SAR Agreement shall also specify the term of the SAR. An SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of
its term in the event of the termination of the Optionee’s service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. An SAR may be
included in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. An SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
  
 7.5 Exercise of SARs. Upon exercise of an SAR, the Optionee (or
any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Common Shares, (b) cash or (c) a combination of Common Shares and cash, as the Committee shall determine. The amount of cash and/or the Fair
Market Value of Common Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the Common Shares subject to the SARs exceeds the Exercise Price. If, on the
date when an SAR expires, the Exercise Price under such SAR is less than the Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR shall automatically be deemed to be exercised as of such
date with respect to such portion. 
  

 5 

 7.6 Modification or Assumption of SARs. Within the limitations of the Plan, the Committee
may modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same
or a different exercise price. The foregoing notwithstanding, no modification of an SAR shall, without the consent of the Optionee, alter or impair his or her rights or obligations under such SAR. 
  
 ARTICLE 8. RESTRICTED SHARES. 
  
 8.1 Restricted Stock Agreement. Each grant of Restricted
Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not
inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. 
  
 8.2 Payment for Awards. Subject to the following sentence, Restricted Shares may be sold or awarded under the Plan for such consideration as
the Committee may determine, including (without limitation) cash, cash equivalents, full-recourse promissory notes and past services. To the extent that an Award consists of newly issued Restricted Shares, the Award recipient shall furnish
consideration with a value not less than the par value of such Restricted Shares in the form of cash, cash equivalents or past services rendered to the Company (or a Parent or Subsidiary), as the Committee may determine. 
  
 8.3 Vesting Conditions. Each Award of Restricted Shares may or
may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. A Restricted Stock Agreement may provide for accelerated vesting in the event of the
Participant’s death, disability or retirement or other events. 
  
 8.4 Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock Agreement, however, may
require that the holders of Restricted Shares invest any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the
dividends were paid. 
  
 ARTICLE 9. STOCK UNITS.

  
 9.1 Stock Unit Agreement. Each grant of
Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with
the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction in the recipient’s other compensation. 
  
 9.2 Payment for Awards. To the extent that an Award is granted
in the form of Stock Units, no cash consideration shall be required of the Award recipients. 
  

 6 

 9.3 Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting.
Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. A Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or
retirement or other events. 
  
 9.4 Voting and Dividend
Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles
the holder to be credited with an amount equal to all cash dividends paid on one Common Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in
the form of cash, in the form of Common Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions as the Stock Units to which they attach.

  
 9.5 Form and Time of Settlement of Stock Units.
Settlement of vested Stock Units may be made in the form of (a) cash, (b) Common Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the number
included in the original Award, based on predetermined performance factors. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Common Shares over a series of trading days.
Vested Stock Units may be settled in a lump sum or in installments. The distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The
amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Article 11. 
  
 9.6 Death of Recipient. Any Stock Units Award that becomes
payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award under the Plan shall designate one or more beneficiaries for this purpose by filing the
prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives
the Award recipient, then any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s estate. 
  
 9.7 Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units
represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 
  
 ARTICLE 10. CHANGE IN CONTROL. 
  
 Unless the applicable agreement evidencing the Award provides otherwise, in the event of any Change in Control, the vesting of each outstanding Award
shall automatically accelerate so that each such Award shall, immediately prior to the effective date of the Change in 

  

 7 

 
Control, become fully exercisable for all of the Common Shares at the time subject to such Award and may be exercised for any or all of those shares as
fully-vested Common Shares. However, an outstanding Award shall not so accelerate if and to the extent such Award, in connection with the Change in Control, remains outstanding, or is assumed by the surviving corporation (or parent thereof)
or substituted with an award with substantially the same terms by the surviving corporation (or parent thereof). The determination of whether a substituted award has substantially the same terms as an Award shall be made by the Committee, and its
determination shall be final, binding and conclusive. 
  
 ARTICLE 11. PROTECTION AGAINST DILUTION. 
  
 11.1 Adjustments. In the event of a subdivision of the outstanding Common Shares, a declaration of a dividend payable in Common Shares, a declaration of a dividend payable in a form other than Common Shares in an amount that
has a material effect on the price of Common Shares, a combination or consolidation of the outstanding Common Shares (by reclassification or otherwise) into a lesser number of Common Shares, a recapitalization, a spin-off or a similar occurrence,
the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of: 
  
 (a) The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Article 3; 
  
 (b) The limitations set forth in Sections 5.2 and 7.2;

  
 (c) The number of Common Shares covered by
each outstanding Option and SAR; 
  
 (d) The
Exercise Price under each outstanding Option and SAR; or 
  
 (e) The number of Stock Units included in any prior Award which has not yet been settled. 
  
 Except as provided in this Article 11, a Participant shall have no rights by reason of any issue by the Company of stock of any class or securities convertible into stock
of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class. 
  
 11.2 Dissolution or Liquidation. To the extent not previously
exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
  
 11.3 Reorganizations. In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to
the agreement of merger or reorganization. Such agreement shall provide for (a) the continuation of the outstanding Awards by the Company, if the Company is a surviving corporation, (b) the assumption of the outstanding Awards by the surviving
corporation or its parent or subsidiary, (c) the substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding 

  

 8 

 
Awards, (d) full exercisability or vesting and accelerated expiration of the outstanding Awards or (e) settlement of the full value of the outstanding Awards
in cash or cash equivalents followed by cancellation of such Awards. 
  
 ARTICLE 12. DEFERRAL OF AWARDS. 
  
 The Committee (in its sole discretion) may permit or require a Participant to: 
  
 (a) Have cash that otherwise would be paid to such Participant as a result of the exercise of an SAR or the settlement of Stock Units
credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books; 
  
 (b) Have Common Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted
into an equal number of Stock Units; or 
  
 (c)
Have Common Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR or the settlement of Stock Units converted into amounts credited to a deferred compensation account established for such
Participant by the Committee as an entry on the Company’s books. Such amounts shall be determined by reference to the Fair Market Value of such Common Shares as of the date when they otherwise would have been delivered to such Participant.

  
 A deferred compensation account established under this Article 12 may be
credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of a general creditor of the Company. Such an account shall
represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such Participant and the Company. If the deferral or conversion of Awards is permitted or required,
the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts established under this Article 12. 
  
 ARTICLE 13. AWARDS UNDER OTHER PLANS. 
  
 The Company may grant awards under other plans or programs. Such awards may
be settled in the form of Common Shares issued under this Plan. Such Common Shares shall be treated for all purposes under the Plan like Common Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Common Shares
available under Article 3. 
  
 ARTICLE 14. PAYMENT OF
DIRECTOR’S FEES IN SECURITIES. 
  
 14.1
Effective Date. No provision of this Article 14 shall be effective unless and until the Board has determined to implement such provision. 
  

 9 

 14.2 Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may
elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units
shall be issued under the Plan. An election under this Article 14 shall be filed with the Company on the prescribed form. 
  
 14.3 Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted Shares or Stock Units to be granted to
Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner determined by the Board. The terms of such NSOs, Restricted Shares or Stock Units shall also be determined by the
Board. 
  
 ARTICLE 15. LIMITATION ON RIGHTS. 
  
 15.1 Retention Rights. Neither the Plan nor any Award granted
under the Plan shall be deemed to give any individual a right to remain an Employee, Outside Director or Consultant. The Company and its Parents, Subsidiaries and Affiliates reserve the right to terminate the service of any Employee, Outside
Director or Consultant at any time, with or without cause, subject to applicable laws, the Company’s certificate of incorporation and by-laws and a written employment agreement (if any). 
  
 15.2 Stockholders’ Rights. A Participant shall have no
dividend rights, voting rights or other rights as a stockholder with respect to any Common Shares covered by his or her Award prior to the time when a stock certificate for such Common Shares is issued or, if applicable, the time when he or she
becomes entitled to receive such Common Shares by filing any required notice of exercise and paying any required Exercise Price. No adjustment shall be made for cash dividends or other rights for which the record date is prior to such time, except
as expressly provided in the Plan. 
  
 15.3 Regulatory
Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue Common Shares under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be
required. The Company reserves the right to restrict, in whole or in part, the delivery of Common Shares pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Common Shares, to their registration,
qualification or listing or to an exemption from registration, qualification or listing. 
  
 ARTICLE 16. WITHHOLDING TAXES. 
  
 16.1 General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax
obligations that arise in connection with the Plan. The Company shall not be required to issue any Common Shares or make any cash payment under the Plan until such obligations are satisfied. 
  
 16.2 Share Withholding. The Committee may permit a Participant
to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a 

  

 10 

 
portion of any Common Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Common Shares that he or she previously
acquired. Such Common Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. 
  
 ARTICLE 17. FUTURE OF THE PLAN. 
  
 17.1 Term of the Plan. The Plan, as set forth herein, shall become effective as of the date of the IPO. The Plan shall remain in effect until the
earlier to occur of: (a) September 5, 2011 or (b) the date it is terminated under Section 17.2. 
  
 17.2 Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the Plan. An amendment of the Plan shall be
subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules. No Awards shall be granted under the Plan after the termination thereof. The termination of the Plan, or any amendment
thereof, shall not affect any Award previously granted under the Plan. The Board amended the Plan on November 13, 2003 to limit the term to the earlier to occur of September 5, 2011 or the date the Plan is terminated under this Section 17.2. The
Board earlier amended the Plan on July 20, 2001, and approved by the Company’s stockholders on September 6, 2001, to (i) increase the number of shares available under the Plan by the number of shares remaining available for issuance under the
Predecessor Plan on or after the 2001 Annual Meeting (up to a maximum of 2,399,653 shares), and (ii) increase the limit on the number of shares subject to individual option or SAR grants under Articles 5.2 and 7.2 from 300,000 to 1,500,000 for
grants given in the Company’s fiscal year during which the person commences his or her service with the Company, and from 100,000 to 1,000,000 for grants in any other fiscal year of the Company. 
  
 ARTICLE 18. LIMITATION ON PAYMENTS. 
  
 18.1 Scope of Limitation. This Article 18 shall apply to an
Award only if: 
  
 (a) The independent auditors
most recently selected by the Board (the “Auditors”) determine that the after-tax value of such Award to the Participant, taking into account the effect of all federal, state and local income taxes, employment taxes and excise taxes
applicable to the Participant (including the excise tax under section 4999 of the Code), will be greater after the application of this Article 18 than it was before the application of this Article 18; or 
  
 (b) The Committee, at the time of making an Award under the
Plan or at any time thereafter, specifies in writing that such Award shall be subject to this Article 18 (regardless of the after-tax value of such Award to the Participant). 
  
 If this Article 18 applies to an Award, it shall supersede any contrary provision of the Plan or of any Award granted under the Plan.

  

 11 

 18.2 Basic Rule. In the event that the Auditors determine that any payment or transfer by
the Company under the Plan to or for the benefit of a Participant (a “Payment”) would be nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute payments” in section
280G of the Code, then the aggregate present value of all Payments shall be reduced (but not below zero) to the Reduced Amount. For purposes of this Article 18, the “Reduced Amount” shall be the amount, expressed as a present value, which
maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by the Company because of section 280G of the Code. 
  
 18.3 Reduction of Payments. If the Auditors determine that any Payment would be nondeductible by the Company because of section 280G of the
Code, then the Company shall promptly give the Participant notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the Participant may then elect, in his or her sole discretion, which and how much of the
Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in writing of his or her election within 10 days of receipt of notice. If no
such election is made by the Participant within such 10-day period, then the Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the
Reduced Amount) and shall notify the Participant promptly of such election. For purposes of this Article 18, present value shall be determined in accordance with section 280G(d)(4) of the Code. All determinations made by the Auditors under this
Article 18 shall be binding upon the Company and the Participant and shall be made within 60 days of the date when a Payment becomes payable or transferable. As promptly as practicable following such determination and the elections hereunder, the
Company shall pay or transfer to or for the benefit of the Participant such amounts as are then due to him or her under the Plan and shall promptly pay or transfer to or for the benefit of the Participant in the future such amounts as become due to
him or her under the Plan. 
  
 18.4 Overpayments and
Underpayments. As a result of uncertainty in the application of section 280G of the Code at the time of an initial determination by the Auditors hereunder, it is possible that Payments will have been made by the Company which should not have
been made (an “Overpayment”) or that additional Payments which will not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation of the Reduced Amount hereunder. In the
event that the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against the Company or the Participant which the Auditors believe has a high probability of success, determine that an Overpayment has been made, such
Overpayment shall be treated for all purposes as a loan to the Participant which he or she shall repay to the Company, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code; provided, however, that no
amount shall be payable by the Participant to the Company if and to the extent that such payment would not reduce the amount which is subject to taxation under section 4999 of the Code. In the event that the Auditors determine that an Underpayment
has occurred, such Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the Participant, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. 
  

 12 

 18.5 Related Corporations. For purposes of this Article 18, the term “Company”
shall include affiliated corporations to the extent determined by the Auditors in accordance with section 280G(d)(5) of the Code. 
  
 ARTICLE 19. DEFINITIONS. 
  
 19.1 “Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than 50% of
such entity. 
  
 19.2 “Award” means any
award of an Option, an SAR, a Restricted Share or a Stock Unit under the Plan. 
  
 19.3 “Board” means the Company’s Board of Directors, as constituted from time to time. 
  
 19.4 “Change in Control” shall mean: 
  
 (a) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if
more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who were not stockholders of the Company
immediately prior to such merger, consolidation or other reorganization; 
  
 (b) The sale, transfer or other disposition of all or substantially all of the Company’s assets; 
  
 (c) A change in the composition of the Board, as a result of which fewer than 50% of the incumbent directors are directors who either (i)
had been directors of the Company on the date 24 months prior to the date of the event that may constitute a Change in Control (the “original directors”) or (ii) were elected, or nominated for election, to the Board with the affirmative
votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved; or 
  
 (d) Any transaction as a result of which any person is the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least 50% of the total voting power represented by the Company’s then outstanding voting
securities. For purposes of this Paragraph (d), the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or of a Parent or Subsidiary and (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Common Shares of the Company.

  

 13 

 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s
incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
  
 19.5 “Code” means the Internal Revenue Code of 1986,
as amended. 
  
 19.6 “Committee” means a
committee of the Board, as described in Article 2. 
  
 19.7
“Common Share” means one share of the common stock of the Company. 
  
 19.8 “Company” means Marimba, Inc., a Delaware corporation. 
  
 19.9 “Consultant” means a consultant or adviser who provides bona fide services to the Company, a Parent, a Subsidiary or an
Affiliate as an independent contractor. Service as a Consultant shall be considered employment for all purposes of the Plan, except as provided in Section 4.1. 
  

19.10 “Employee” means a common-law employee of the Company, a Parent, a Subsidiary or an Affiliate. 
  
 19.11 “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
  
 19.12 “Exercise
Price,” in the case of an Option, means the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of an SAR, means an
amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable upon exercise of such SAR. 
  
 19.13 “Fair Market Value” means the market price of Common Shares, determined by the Committee in
good faith on such basis as it deems appropriate. Whenever possible, the determination of Fair Market Value by the Committee shall be based on the prices reported in The Wall Street Journal. Such determination shall be conclusive and binding
on all persons. 
  
 19.14 “IPO” means the
initial offering of Common Shares to the public pursuant to a registration statement filed by the Company with the Securities and Exchange Commission. 
  
 19.15 “ISO” means an incentive stock option described in section 422(b) of the Code. 
  
 19.16 “NSO” means a stock option not described in
sections 422 or 423 of the Code. 
  
 19.17
“Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase Common Shares. 
  
 19.18 “Optionee” means a person or estate who holds an Option or SAR. 
  

 14 

 19.19 “Outside Director” shall mean a member of the Board who is not an Employee.
Service as an Outside Director shall be considered employment for all purposes of the Plan, except as provided in Section 4.1. 
  
 19.20 “Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if
each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date
after the adoption of the Plan shall be considered a Parent commencing as of such date. 
  
 19.21 “Participant” means a person or estate who holds an Award. 
  
 19.22 “Predecessor Plan” means the Company’s 1996 Stock Plan. 
  
 19.23 “Plan” means this Marimba, Inc. 1999 Omnibus Equity Incentive Plan, as amended from time to
time. 
  
 19.24 “Restricted Share” means a
Common Share awarded under the Plan. 
  
 19.25
“Restricted Stock Agreement” means the agreement between the Company and the recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to such Restricted Share. 
  
 19.26 “SAR” means a stock appreciation right granted
under the Plan. 
  
 19.27 “SAR Agreement”
means the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to his or her SAR. 
  
 19.28 “Stock Option Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and
restrictions pertaining to his or her Option. 
  
 19.29
“Stock Unit” means a bookkeeping entry representing the equivalent of one Common Share, as awarded under the Plan. 
  
 19.30 “Stock Unit Agreement” means the agreement between the Company and the recipient of a Stock Unit which contains the terms,
conditions and restrictions pertaining to such Stock Unit. 
  
 19.31 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain
owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date. 
  

 15

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