Document:

Exhibit 4.2

 

EXECUTION

 

REGISTRATION AGREEMENT

 

THIS REGISTRATION AGREEMENT (this “Agreement”) is made as of July 2, 2010 by and among Atlassian Corporation Pty Limited ACN 122 325 777, an Australian corporation (including its successor resulting directly or indirectly from its conversion or exchange from an Australian corporation to a Delaware corporation, the “Company”), the Persons listed on the Schedule of Investors attached hereto (each, an “Investor” and collectively, the “Investors” and the Persons listed on the Schedule of Other Shareholders attached hereto (each, an “Other Shareholder” and collectively, the “Other Shareholders”‘).

 

The parties to this Agreement are parties to a Share Sale Agreement of even date herewith (the “Share Sale Agreement”). In order to induce the Investors to enter into the Share Sale Agreement, the Company has agreed to provide the registration rights set forth in this Agreement. The execution and delivery of this Agreement is a condition to the Closing under the Share Sale Agreement. Unless otherwise provided in this Agreement, capitalized terms used herein shall have the meanings set forth in 9 hereof.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows:

 

1.             Demand Registrations.

 

(a)           Requests for Registration. Subject to the terms and conditions of this Agreement, at any time after six months following the date on which the Company has completed a public offering of its capital stock other than a registration of stock options, stock purchase or similar plans or a transaction pursuant to SEC Rule 145 under the Securities Act (an “IPO”), the holders of a majority of the Investor Registrable Securities may submit a written request for registration under the Securities Act of all or any portion of their Registrable Securities on Form S-1 or any similar long-form registration (“Long-Form Registrations”), and the holders of a majority of the Investor Registrable Securities may request registration under the Securities Act of all or any portion of their Registrable Securities on Form S-3 (including pursuant to Rule 415 under the Securities Act) or any similar short-form registration (“Short-Form Registrations”) if available. All registrations requested pursuant to this paragraph 1(a) are referred to herein as “Demand Registrations”. Each request for a Demand Registration shall specify the approximate number of Registrable Securities requested to be registered, the anticipated per share price range for such offering and the intended method of distribution. Within ten days after receipt of any such request, provided that the anticipated aggregate offering price of the Registrable Securities requested to be registered, net of underwriting discounts and commissions, is at least $5,000,000, the Company shall give written notice of such requested registration to all other holders of Investor Registrable Securities and, subject to the terms of paragraph 1(d) hereof, the Company shall use its best efforts to file such registration statement as soon as practicable, and shall include in such registration (and in all related registrations and qualifications under state blue sky laws or in compliance with other registration requirements and in any related underwriting) all Investor Registrable Securities with respect to which the Company has received written requests for inclusion therein within 15 days after the receipt of the Company’s notice, subject to the limitations set forth herein.

 

(b)           Long-Form Registrations. The holders of a majority of the Investor Registrable Securities shall be entitled to request two (2) Long-Form Registrations (“Company-paid Long-Form Registrations”). A registration shall not count as one of the permitted Long-Form Registrations until it has become effective, and neither the last or any subsequent Company-paid Long-Form Registration shall count as one of the permitted Long-Form Registrations unless the holders of Investor Registrable Securities are able to register and sell at least 90% of Investor Registrable Securities requested to be included in such registration; provided that in any event the

 

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Company shall pay all Registration Expenses in connection with any registration initiated as a Company-paid Long-Form Registration pursuant to Section 5 hereof.

 

(c)           Short-Form Registrations. In addition to the Long-Form Registrations provided pursuant to paragraph 1(b), the holders of Investor Registrable Securities shall be entitled to request an unlimited number of Short-Form Registrations. Demand Registrations shall be Short-Form Registrations whenever the Company is permitted to use any applicable short form and if the managing underwriters (if any) agree to the use of a Short-Form Registration. After the Company has become subject to the reporting requirements of the Exchange Act, the Company shall use its reasonable best efforts to make Short-Form Registrations on Form S-3 available for the sale of Registrable Securities. If the Company is qualified to and, pursuant to the request of the holders of a majority of the Investor Registrable Securities, has filed with the Securities and Exchange Commission a registration statement under the Securities Act on Form S-3 pursuant to Rule 415 (the “Shelf Registration”), then the Company shall use its reasonable best efforts to cause the Shelf Registration to be declared effective under the Securities Act as soon as practicable after filing, and once effective, the Company shall cause such Shelf Registration to remain effective for a period ending on the earlier of (i) the date on which all Registrable Securities included in such registration have been sold pursuant to the Shelf Registration or (ii) the date as of which all of the Registrable Securities included in such registration are able to be sold within a 90-day period in compliance with Rule 144 under the Securities Act.

 

(d)           Priority on Demand Registrations. The Company shall not include in any Demand Registration any securities which are not Investor Registrable Securities without the prior written consent of the holders of a majority of the Investor Registrable Securities included in such registration. If a Demand Registration is an underwritten offering and the managing underwriters advise the Company in writing that in their reasonable opinion the number of Registrable Securities and, if permitted hereunder, other securities requested to be included in such offering exceeds the number of Registrable Securities and other securities, if any, which can be sold therein without adversely affecting the marketability of the offering, in an orderly manner in such offering within a price range acceptable to the holders of a majority of the Investor Registrable Securities initially requesting registration, the Company shall include in such registration prior to the inclusion of any securities which are not Registrable Securities the number of Investor Registrable Securities requested to be included which, in the opinion of such underwriters can be sold, without adversely affecting the marketability of the offering in an orderly manner within the price range of such offering, pro rata among the respective holders thereof on the basis of the amount of Registrable Securities owned by each such holder. Any Persons other than holders of Registrable Securities who participate in Demand Registrations which are not at the Company’s expense must pay their share of the Registration Expenses as provided in Section 5 hereof.

 

(e)           Restrictions on Demand Registrations. The Company shall not be obligated to effect any Demand Registration within 180 days after the effective date of a previous Long-Form Registration that is a Demand Registration. The Company may postpone for up to 180 days the filing or the effectiveness of a registration statement for a Demand Registration if the Company determines that such Demand Registration would reasonably be expected to have a material adverse effect on any proposal or plan by the Company or any of its Subsidiaries to engage in any financing, sale, acquisition of assets or stock (other than in the ordinary course of business) or any merger, consolidation, tender offer, recapitalization, reorganization or similar transaction or require the Company to disclose any material nonpublic information which would reasonably be likely to be detrimental to the Company and its Subsidiaries; provided that in such event, the holders of Investor Registrable Securities initially requesting such Demand Registration shall be entitled to withdraw such request and, if such request is withdrawn, such Demand Registration shall not count as one of the permitted Demand Registrations hereunder. The Company may delay a Demand Registration hereunder only once in any twelve-month period.

 

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(f)            Selection of Underwriters. The holders of a majority of the Investor Registrable Securities initially requesting registration hereunder shall have the right to select the investment banker(s) and manager(s) to administer the offering, subject to the Company’s approval which shall not be unreasonably withheld or delayed so long as such investment banker(s) and manager(s) are of recognized national standing.

 

(g)           Other Registration Rights. The Company represents and warrants that it is not a party to, or otherwise subject to, any other agreement granting registration rights to any other Person with respect to any securities of the Company. Except as provided in this Agreement, the Company shall not grant to any Persons the right to request the Company to register any equity securities of the Company, or any securities, options or rights convertible or exchangeable into or exercisable for such securities, without the prior written consent of the holders of a majority of the Investor Registrable Securities.

 

2.             Piggyback Registrations.

 

(a)           Right to Piggyback. Whenever the Company proposes to register any of its securities under the Securities Act (other than (i) pursuant to a Demand Registration, (ii) in connection with registrations on Form S-4 or S-8 promulgated by the Securities and Exchange Commission or any successor forms, (iii) a registration relating solely to employment benefit plans) and the registration form to be used may be used for the registration of Registrable Securities, (iv) a registration in which the only stock being registered is Common Stock issuable upon conversion of debt securities which are also being registered, or (v) any registration on any form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Investor Registrable Securities) (a “Piggyback Registration”), the Company shall give prompt written notice to all holders of Registrable Securities of its intention to effect such a registration and, subject to the terms of paragraph 2(b) and paragraph 2(c) hereof, shall include in such registration (and in all related registrations or qualifications under blue sky laws or in compliance with other registration requirements and in any related underwriting) all Registrable Securities with respect to which the Company has received written requests for inclusion therein within 20 days after the receipt of the Company’s notice, subject to the limitations set forth herein.

 

(b)           Priority on Primary Offerings. If a Piggyback Registration is an underwritten primary offering on behalf of the Company, and the managing underwriters advise the Company in writing that in their reasonable opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company shall include in such registration (i) first, the securities the Company proposes to sell, (ii) second, any Investor Registrable Securities requested to be included in such registration, pro rata among the holders of such Investor Registrable Securities on the basis of the number of Registrable Securities owned by each such holder, and (iii) third, other securities requested to be included in such registration (including any Other Registrable Securities); provided that in any event the holders of Investor Registrable Securities shall be entitled to register at least 25% of the securities to be included in any such registration.

 

(c)           Priority on Secondary Offerings. If a Piggyback Registration is an underwritten secondary offering on behalf of holders of the Company’s securities, and the managing underwriters advise the Company in writing that in their reasonable opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company shall include in such registration (i) first, the securities requested to be included therein by the holders requesting such registration and the Investor Registrable Securities requested to be included in such registration, pro rata among the holders of such securities on the basis of the number of securities so requested to be included therein owned by each such holder, and (ii) second, other securities requested to be included in such registration.

 

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(d)           Other Registrations. If the Company has previously filed a registration statement with respect to Registrable Securities pursuant to paragraph 1 or pursuant to this paragraph 2, and if such previous registration has not been withdrawn or abandoned, the Company shall not file or cause to be effected any other registration of any of its equity securities or securities convertible or exchangeable into or exercisable for its equity securities under the Securities Act (except on Form S-8 or any successor form), whether on its own behalf or at the request of any holder or holders of such securities, until a period of at least 90 days has elapsed from the effective date of such previous registration.

 

(e)           Obligations of Seller. During such time as any holder of Registrable Securities may be engaged in a distribution of securities pursuant to an underwritten Piggyback Registration, such holder shall distribute such securities only under the registration statement and solely in the manner described in the registration statement.

 

3.             Holdback Agreements.

 

(a)           No holder of Investor Registrable Securities or Other Registrable Securities shall effect any public sale or distribution (including sales pursuant to Rule 144) of equity securities of the Company, or any securities convertible into or exchangeable or exercisable for such securities, from the date on which the Company gives notice to the holders of Registrable Securities that a preliminary prospectus has been filed in respect of an IPO to the date that is 180 days following the date of the final prospectus for such IPO (the “IPO Holdback Period”), except as part of such IPO. Notwithstanding the foregoing, this paragraph 3(a) shall not be applicable to or otherwise be binding on the holders of Investor Registrable Securities unless the Company complies with its obligations under paragraph 3(b) in connection with any such offering. The IPO Holdback Period shall also be extended for the minimum period of time which is necessary for a managing or co-managing underwriter of a registered offering to comply with NASD Rule 2711(f)(4). The extension in the immediately preceding sentence is referred to herein as the “Holdback Extension.” The Company may impose stop-transfer instructions with respect to the shares of its Ordinary Shares (or other securities) subject to the foregoing restriction during any IPO Holdback Period or any period of Holdback Extension.

 

(b)           The Company (i) shall not effect any public sale or distribution of its equity securities, or any securities convertible into or exchangeable or exercisable for such securities, during the IPO Holdback Period (including during any period of Holdback Extension) (except as part of such underwritten offering or pursuant to registrations on Form S-8 or any successor form), unless the underwriters managing the registered public offering otherwise agree in writing, and (ii) shall cause each officer, director and holder (other than the Investors) of at least 1% (on a fully-diluted basis) of its Ordinary Shares, or any securities convertible into or exchangeable or exercisable for Ordinary Shares, purchased from the Company at any time after the date of this Agreement (other than in a registered public offering), to agree not to effect any public sale or distribution (including sales pursuant to Rule 144 under the Securities Act) of any such securities during such periods (except as part of such underwritten registration, if otherwise permitted), unless the underwriters managing the registered public offering otherwise agree in writing.

 

4.             Registration Procedures. Whenever the holders of Registrable Securities have requested that any Registrable Securities be registered pursuant to this Agreement, the Company shall use its reasonable best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company shall as expeditiously as possible:

 

(a)           in accordance with the Securities Act and all applicable rules and regulations promulgated thereunder, prepare and file with the Securities and Exchange Commission a registration statement, and all amendments and supplements thereto and related prospectuses, with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement

 

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to become effective (provided that before filing a registration statement or prospectus or any amendments or supplements thereto, the Company shall furnish to the counsel selected by the holders of a majority of the Investor Registrable Securities, on the one hand, and the holders of a majority of the Other Registrable Securities, on the other hand, covered by such registration statement copies of all such documents proposed to be filed, which documents shall be subject to the review and comment of each such counsel), and include in any Short-Form Registration such additional information reasonably requested by a majority of the Registrable Securities registered under the applicable registration statement, or the underwriters, if any, for marketing purposes, whether or not required by applicable securities laws;

 

(b)           notify in writing each holder of Registrable Securities to be sold thereunder of the effectiveness of each registration statement filed hereunder and prepare and file with the Securities and Exchange Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for a period of not less than 180 days and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement;

 

(c)           furnish to each seller of Registrable Securities thereunder such number of copies of such registration statement, each amendment and supplement thereto, the prospectus included in such registration statement (including each preliminary prospectus), each Free Writing Prospectus and such other documents as such seller may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller;

 

(d)           use its reasonable best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any seller reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller (provided that the Company shall not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this subparagraph or (ii) consent to general service of process in any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction);

 

(e)           notify in writing each seller of such Registrable Securities, (i) promptly after it receives notice thereof, of the date and time when such registration statement and each post-effective amendment thereto has become effective or a prospectus or supplement to any prospectus relating to a registration statement has been filed and when any registration or qualification has become effective under a state securities or blue sky law or any exemption thereunder has been obtained, (ii) promptly after receipt thereof, of any request by the Securities and Exchange Commission for the amendment or supplementing of such registration statement or prospectus or for additional information, and (iii) at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading, and, at the request of any such seller, the Company shall prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading;

 

(f)            prepare and file promptly with the Securities and Exchange Commission, and notify such holders of Registrable Securities prior to the filing of, such amendments or supplements to such registration statement or prospectus as may be necessary to correct any statements or omissions if, at the time when a prospectus relating to such securities is required to be delivered under the Securities Act, when any event has occurred as the result of which any such prospectus or any other prospectus as then in effect would include an untrue statement of a material fact or omit to state any

 

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material fact required to be stated therein or necessary to make the statements therein not misleading, and, in case an of such holders of Registrable Securities or any underwriter for any such holders is required to deliver a prospectus at a time when the prospectus then in circulation is not in compliance with the Securities Act or the rules and regulations promulgated thereunder, the Company shall use its commercially reasonable efforts to prepare promptly upon request of any such holder or underwriter such amendments or supplements to such registration statement and prospectus as may be necessary in order for such prospectus to comply with the requirements of the Securities Act and such rules and regulations;

 

(g)           cause all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed;

 

(h)           provide a transfer agent and registrar for all such Registrable Securities not later than the effective date of such registration statement;

 

(i)            enter into and perform such customary agreements (including underwriting agreements in customary form) and take all such other actions as the holders of a majority of the Investor Registrable Securities being sold or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Registrable Securities (including, without limitation, participation in “road shows,” investor presentations and marketing events and effecting a stock split or a combination of shares);

 

(j)            make available for inspection by any seller of Registrable Securities, any underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other agent retained by any such seller or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the Company’s officers, directors, employees and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such registration statement;

 

(k)           take all reasonable actions to ensure that any Free-Writing Prospectus utilized in connection with any Demand Registration or Piggyback Registration hereunder complies in all material respects with the Securities Act, is filed in accordance with the Securities Act to the extent required thereby, is retained in accordance with the Securities Act to the extent required thereby and, when taken together with the related prospectus, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;

 

(1)           otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Securities and Exchange Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months beginning with the first day of the Company’s first full calendar quarter after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

 

(m)          permit any holder of Registrable Securities which holder, in its sole and exclusive judgment, might be deemed to be an underwriter or a controlling person of the Company, to participate in the preparation of such registration or comparable statement and to require the insertion therein of material, furnished to the Company in writing, which in the reasonable judgment of such holder and its counsel should be included;

 

(n)           use its reasonable best efforts to prevent the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any equity securities included in such registration statement for sale in any jurisdiction, and in the event of the issuance of any such stop

 

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order or other such order the Company shall advise such holders of Registrable Securities of such stop order or other such order promptly after it shall receive notice or obtain knowledge thereof and shall use its commercially reasonable efforts promptly to obtain the withdrawal of such order;

 

(o)           use its reasonable best efforts to cause such Registrable Securities covered by such registration statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the sellers thereof to consummate the disposition of such Registrable Securities;

 

(p)           obtain a cold comfort letter from the Company’s independent public accountants in customary form and covering such matters of the type customarily covered by cold comfort letters as the holders of a majority of the Investor Registrable Securities being sold reasonably request (provided that such Investor Registrable Securities constitute at least 10% of the securities covered by such registration statement); and

 

(q)           provide a legal opinion of the Company’s outside counsel, dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, dated the date of the closing under the underwriting agreement), with respect to the registration statement, each amendment and supplement thereto, the prospectus included therein (including the preliminary prospectus) and such other documents relating thereto in customary form and covering such matters of the type customarily covered by legal opinions of such nature.

 

5.             Registration Expenses.

 

(a)           All expenses incurred in connection with a Long-Form Registration, a Short-Form Registration and a Piggyback Registration, including without limitation all registration, qualification and filing fees, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses, fees and disbursements of custodians, and fees and disbursements of counsel for the Company and all independent certified public accountants, underwriters (excluding underwriting discounts and commissions) and other Persons retained by the Company (all such expenses being herein called “Registration Expenses”), shall be borne by the Company as provided in this Agreement, provided, however, that the Company shall not be required to pay for any expenses of any Long-Form Registration proceeding begun if the registration request is subsequently withdrawn at the request of the holders of a majority of Investor Registrable Securities (in which case all participating holders shall bear such expenses), and except that the Company shall, in any event, pay its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing the securities to be registered on each securities exchange on which similar securities issued by the Company are then listed. Each Person that sells securities pursuant to a Demand Registration or Piggyback Registration hereunder shall bear and pay all underwriting discounts and commissions applicable to the securities sold for such Person’s account.

 

(b)           In connection with each Demand Registration and each Piggyback Registration, the Company shall reimburse the holders of Investor Registrable Securities included in such registration for the reasonable fees and disbursements of one counsel chosen by the holders of a majority of the Investor Registrable Securities included in such registration.

 

6.             Indemnification.

 

(a)           The Company agrees to indemnify, to the extent permitted by law, each holder of Registrable Securities, its officers, directors, members, partners, agents, affiliates and employees and each Person who controls such holder (within the meaning of the Securities Act) against all losses, claims, actions, damages, liabilities and expenses caused by any of the following statements, omissions or violations by the Company: (i) any untrue or alleged untrue statement of

 

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material fact contained in any registration statement, prospectus, preliminary prospectus or Free-Writing Prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, or (ii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance, and to pay to each holder of Registrable Securities, its officers and directors and each Person who controls such holder (within the meaning of the Securities Act), as incurred, any legal and any other expenses reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such holder expressly for use therein. In connection with an underwritten offering, the Company shall indemnify such underwriters, their officers and directors and each Person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided above with respect to the indemnification of the holders of Registrable Securities.

 

(b)           In connection with any registration statement in which a holder of Registrable Securities is participating, each such holder shall furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, shall indemnify the Company, its directors and officers and each Person who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses resulting from any untrue or alleged untrue statement of material fact contained in the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any information or affidavit so furnished in writing by such holder expressly for use therein; provided, however, that the indemnity agreement contained in this subsection 6(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of such holder; provided further that in no event shall any indemnity under this subsection 6(b) exceed the net proceeds from the offering received by such holder, except in the case of willful fraud by such holder.

 

(c)           Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any Person’s right to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party) and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld, conditioned or delayed). An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. In such instance, the conflicting indemnified parties shall have a right to retain one separate counsel, chosen by the holders of a majority of the Registrable Securities included in the registration, at the expense of the indemnifying party. No indemnifying party, in the defense of such claim or litigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

 

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(d)           If the indemnification provided for in this paragraph 6 is held by a court of competent jurisdiction to be unavailable to an indemnified party or is otherwise unenforceable with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other hand in connection with the statements or omissions which resulted in such loss, claim, damage, liability or action as well as any other relevant equitable considerations; provided that the maximum amount of liability in respect of such contribution shall be limited, in the case of each seller of Registrable Securities, to an amount equal to the net proceeds actually received by such seller from the sale of Registrable Securities effected pursuant to such registration, except in the case of willful fraud by such holder. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just or equitable if the contribution pursuant to this paragraph 6(d) were to be determined by pro rata allocation or by any other method of allocation that does not take into account such equitable considerations. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or expenses referred to herein shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending against any action or claim which is the subject hereof. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation.

 

(e)           The indemnification and contribution provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and shall survive the transfer of securities.

 

(f)            No indemnifying party shall, except with the consent of the indemnified party, consent to the entry of any judgment or enter into any settlement that does not include as an unconditional term thereof giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

 

7.             Participation in Underwritten Offerings. No Person may participate in any offering hereunder which is underwritten unless such Person (i) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve such arrangements (including pursuant to any over-allotment or “green shoe” option requested by the underwriters, provided that no holder of Registrable Securities shall be required to sell more than the number of Registrable Securities such holder has requested to include) and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements; provided that no holder of Registrable Securities included in any underwritten offering shall be required to make any representations or warranties to the Company or the underwriters (other than representations and warranties regarding such holder and such holder’s intended method of distribution) or to undertake any indemnification obligations to the Company or the underwriters with respect thereto, except as otherwise specifically provided in paragraph 6 hereof or to agree to any lockup or holdback restrictions, except as specifically provided in paragraph 3(a) hereof. Each holder of Registrable Securities agrees to execute and deliver such other agreements as may be reasonably requested by the Company and the lead managing underwriter(s) that are consistent with such holder’s obligations under paragraph 3 or that are necessary to give further effect thereto.

 

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8.             Additional Parties: Joinder. The Company may permit any executive employee who acquires Ordinary Shares or rights to acquire Ordinary Shares after the date hereof (the “Acquired Common”) to become a party to this Agreement and to succeed to all of the rights and obligations of a “holder of Registrable Securities” under this Agreement by obtaining an executed joinder to this Agreement from such Person in the form of Exhibit A attached hereto, and upon the execution and delivery of the joinder by such Person, such Person shall for all purposes be a “holder of Registrable Securities” under this Agreement with respect to the Acquired Common.

 

9.             Definitions.

 

(a)           “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(b)           “Free Writing Prospectus” means a free-writing prospectus, as defined in Rule 405 of the Securities Act.

 

(c)           “Investor Registrable Securities” means (i) any Ordinary Shares issued or issuable upon the conversion of any Series A Preference Share or Series B Preference Share issued pursuant to the Share Sale Agreement, (ii) any Ordinary Shares issued or issuable with respect to the securities referred to in clause (i) above by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization, and (iii) any other shares of Ordinary Shares held by Persons holding securities described in clauses (i) and (ii) above. As to any particular Investor Registrable Securities, such securities shall cease to be Investor Registrable Securities when they have been distributed to the public pursuant to an offering registered under the Securities Act or sold to the public through a broker, dealer or market maker in compliance with Rule 144 under the Securities Act (or any similar rule then in force) or repurchased by the Company or any Subsidiary. For purposes of this Agreement, a Person shall be deemed to be a holder of Investor Registrable Securities, and the Investor Registrable Securities shall be deemed to be in existence, whenever such Person has the right to acquire directly or indirectly such Investor Registrable Securities (upon conversion or exercise in connection with a transfer of securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such right), whether or not such acquisition has actually been effected, and such Person shall be entitled to exercise the rights of a holder of Investor Registrable Securities hereunder.

 

(d)           “Other Registrable Securities” means (i) any Ordinary Shares held by any Other Shareholder, and (ii) any Ordinary Shares issued or issuable with respect to the securities referred to in clause (i) above by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. As to any particular Other Registrable Securities, such securities shall cease to be Other Registrable Securities when they have been distributed to the public pursuant to an offering registered under the Securities Act or sold to the public through a broker, dealer or market maker in compliance with Rule 144 under the Securities Act (or any similar rule then in force) or repurchased by the Company or any Subsidiary. As to any particular Other Registrable Securities held by the Other Shareholders, such securities shall cease to be Other Registrable Securities when they have been distributed by any Other Shareholder to any of its direct or indirect partners, members, beneficiaries (in the case of a trust) or other owners. As to any particular holder of Other Registrable Securities, during any period when both (x) the Company has completed its Initial Public Offering, and (y) all Registrable Securities held by Other Shareholders (and all other Persons whose securities must be aggregated with those of such holder under Rule 144) may be sold without volume limitations pursuant to Rule 144 in a three-month period, the securities held by such Other Shareholder shall cease to be Registrable Securities during such period and thereafter.

 

(e)           “Registrable Securities” means, collectively, Investor Registrable Securities and Other Registrable Securities.

 

10

 

(f)                                   Unless otherwise stated, other capitalized terms contained herein have the meanings set forth in the Share Sale Agreement.

 

10.                               Miscellaneous.

 

(a)                                 No Inconsistent Agreements. The Company shall not hereafter enter into any agreement with respect to its securities which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement.

 

(b)                                 Adjustments Affecting Registrable Securities. The Company shall not take any action, or permit any change to occur, with respect to its securities which would adversely affect the ability of the holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant to this Agreement or which would adversely affect the marketability of such Registrable Securities in any such registration (including, without limitation, effecting a stock split or a combination of shares).

 

(c)                                  Remedies. Any Person having rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages caused by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. The parties hereto agree and acknowledge that money damages would not be an adequate remedy for any breach of the provisions of this Agreement and that, in addition to any other rights and remedies existing in its favor, any party shall be entitled to specific performance and/or other injunctive relief from any court of law or equity of competent jurisdiction (without posting any bond or other security) in order to enforce or prevent violation of the provisions of this Agreement.

 

(d)                                 Amendments and Waivers. Except as otherwise provided herein, the provisions of this Agreement may be amended or waived only upon the prior written consent of the Company and holders of a majority of the Investor Registrable Securities. The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms.

 

(e)                                  Successors and Assigns. All covenants and agreements in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto whether so expressed or not. In addition, whether or not any express assignment has been made, the provisions of this Agreement which are for the benefit of purchasers or holders of Registrable Securities are also for the benefit of, and enforceable by, any subsequent holder of Registrable Securities; provided that if any holder of Registrable Securities which is a limited partnership or limited liability company distributes any Registrable Securities to its partners or members after the Company has effected a registered public offering of the Ordinary Shares under the Securities Act, such transferees of Registrable Securities shall no longer be subject to the provisions of paragraph 3(a) hereof.

 

(f)                                   Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

 

(g)                                  Counterparts. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement.

 

11

 

(h)                                 Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

(i)                                     Governing Law. The law of the applicable state in which the Company is formed shall govern all issues and questions concerning the relative rights of the Company and its stockholders. All other issues and questions concerning the construction, validity, interpretation and enforcement of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of New South Wales, without giving effect to any choice of law or conflict of law rules or provisions (whether of New South Wales or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than New South Wales.

 

(j)                                    Notices. All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given (i) when delivered personally to the recipient, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient; if not, then on the next business day; provided that such notice under this clause (ii) shall not be effective unless within one business day of the notice a copy of such notice is dispatched to the recipient by first class mail, return receipt requested, or reputable overnight courier service (charges prepaid), (iii) one business day after it is sent to the recipient by reputable overnight courier service (charges prepaid) or (iv) five days after it is mailed to the recipient by first class mail, return receipt requested. Such notices, demands and other communications shall be sent to the Company at the address specified below, to any holder of Registrable Securities as of the date hereof to the address set forth on the applicable Schedules hereto and to any other party subject to this Agreement at such address as indicated by the Company’s records, or at such address or to the attention of such other Person as the recipient party has specified by prior written notice to the sending party. Any party may change its address for receipt of notice by providing prior written notice of the change to the sending party.

 

The Company:

 

Atlassian Corporation Pty Limited

Limited, 173-185 Sussex Street

Sydney NSW 2000

Australia

Attn:    Scott Farquhar

   Michael Cannon-Brookes

 

with a copy to:

(which shall not constitute notice to the Company)

 

Freehills

MLC Centre

19 Martin Place

Sydney NSW 2000

Australia

Attention:                        Peter Dunne

Telephone:                  +61-2-9225-5714

Facsimile:                        +61-2-9322-4000

 

or to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.

 

(k)                                 Mutual Waiver of Jury Trial. As a specifically bargained inducement for each of the parties to enter into this Agreement (with each party having had opportunity to consult counsel), each party hereto expressly and irrevocably waives the right to trial by jury in any lawsuit or legal proceeding relating to or arising in any way from this Agreement or the transactions

 

12

 

contemplated herein, and any lawsuit or legal proceeding relating to or arising in any way to this Agreement or the transactions contemplated herein shall be tried in a court of competent jurisdiction by a judge sitting without a jury.

 

(l)                                     Further Assurances. The parties to this Agreement have negotiated this Agreement in order to provide registration rights customary for a registered offering on an exchange located in the United States. If the Company intends to conduct a public offering on an exchange located outside the United States, the parties hereto will modify this Agreement accordingly to provide rights customary for such exchange which encompass or reflect the rights intended to be granted to the Investors hereunder.

 

*    *    *    *    *

 

13

 

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

 

	
 
    	
ATLASSIAN   CORPORATION PTY LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
sign   here
    
	
 
    	
►
    	
/s/ Scott   Farquhar
    
	
 
    	
 
    	
Company   Secretary/Director
    
	
 
    	
 
    
	
 
    	
print   name  
    	
Scott Farquhar
    
	
 
    	
 
    
	
 
    	
sign   here
    
	
 
    	
►
    	
/s/ M. Cannon-Brookes
    
	
 
    	
 
    	
Director
    
	
 
    	
 
    
	
 
    	
print   name
    	
M. Cannon-Brookes
    

 

[Signature Page to Registration Agreement]

 

 

	
 
    	
OTHER   STOCKHOLDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
sign   here
    
	
 
    	
►
    	
/s/ Scott   Farquhar
    
	
 
    	
 
    	
Scott Farquhar
    
	
 
    	
 
    
	
 
    	
date
    	
9/July/10
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
sign   here
    
	
 
    	
►
    	
/s/ M.   Cannon-Brookes
    
	
 
    	
 
    	
Michael   Cannon-Brookes
    
	
 
    	
 
    
	
 
    	
date
    	
9/July/2010
    
	
 
    	
 
    
	
 
    	
sign   here
    
	
 
    	
►
    	
/s/ Anton   Mazkovoi
    
	
 
    	
 
    	
Anton Mazkovoi
    
	
 
    	
 
    
	
 
    	
date
    	
9/July/2010
    
	
 
    	
 
    
	
 
    	
sign   here
    
	
 
    	
►
    	
/s/ Scott   Farquhar
    
	
 
    	
 
    	
Skip Enterprises   Pty Limited as trustee for the Farquhar Family Trust by Scott Farquhar, sole   Director and sole Company Secretary
    
	
 
    	
 
    
	
 
    	
date
    	
9/July/10
    

 

[Signature Page to Registration Agreement]

 

 

	
 
    	
sign   here
    
	
 
    	
►
    	
/s/ M.   Cannon-Brookes
    
	
 
    	
 
    	
Grokco Pty   Limited as trustee for the Grok Trust
    
	
 
    	
 
    	
by Michael   Cannon-Brookes, sole Director
    
	
 
    	
 
    
	
 
    	
date
    	
M.   Cannon-Brookes
    

 

[Signature Page to Registration Agreement]

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEL   GROWTH FUND L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Accel Growth   Fund Associates L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tracy L.   Sedlock
    
	
 
    	
Its:
    	
Attorney in Fact
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEL   GROWTH FUND STRATEGIC PARTNERS L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Accel Growth   Fund Associates L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tracy L.   Sedlock
    
	
 
    	
Name:
    	
Tracy L. Sedlock
    
	
 
    	
Its:
    	
Attorney in Fact
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEL   GROWTH FUND INVESTORS 2010 L.L.C.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tracy L.   Sedlock
    
	
 
    	
Name:
    	
Tracy L. Sedlock
    
	
 
    	
Its:
    	
Attorney in Fact
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEL   IX L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Accel IX   Associates L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tracy L.   Sedlock
    
	
 
    	
Name:
    	
Tracy L. Sedlock
    
	
 
    	
Its:
    	
Attorney in Fact
    

 

[Signature Page to Registration Agreement]

 

 

	
 
    	
ACCEL   IX STRATEGIC PARTNERS L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Accel IX   Associates L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tracy L.   Sedlock
    
	
 
    	
Name:
    	
Tracy L. Sedlock
    
	
 
    	
Its:
    	
Attorney in Fact
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEL   INVESTOR 2010 (B) L.L.C.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tracy L.   Sedlock
    
	
 
    	
Name:
    	
Tracy L. Sedlock
    
	
 
    	
Its:
    	
Attorney in Fact
    

 

[Signature Page to Registration Agreement]

 

 

	
 
    	
ACCEL   LONDON III L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Accel London III   Associates L.P.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Accel London III   Associates L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jonathan Biggs
    
	
 
    	
Name:
    	
Jonathan Biggs
    
	
 
    	
Its:
    	
Attorney in Fact
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEL   LONDON INVESTORS 2009 L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Accel London III   Associates L.L.C.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jonathan   Biggs
    
	
 
    	
Name:
    	
Jonathan Biggs
    
	
 
    	
Its:
    	
Attorney in Fact
    

 

[Signature Page to Registration Agreement]

 

 

	
 
    	
THE   BOARD OF TRUSTEES OF THE LELAND
    
	
 
    	
STANFORD   JUNIOR UNIVERSITY (SBST)
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kristal   Dehnad
    
	
 
    	
Name:
    	
Kristal Dehnad
    
	
 
    	
Its:
    	
Managing   Director — Separate Investments
    
	
 
    	
 
    
	
 
    	
 
    	
Kristal Dehnad
    
	
 
    	
 
    	
Associate Director, Charitable Trust Program
    
	
 
    	
 
    	
Stanford Management Company
    

 

[Signature Page to Registration Agreement]

 

 

SCHEDULE OF INVESTORS

 

Accel Growth Fund L.P.

Accel Growth Fund Strategic Partners L.P.

Accel Growth Fund Investors 2010 L.L.C.

Accel IX L.P.

Accel IX Strategic Partners L.P.

Accel Investors 2010 (B) L.L.C.

Accel London III L.P.

Accel London Investors 2009 L.P.

The Board of Trustees of the Leland Stanford Junior University (SBST)

 

c/o Accel Partners

428 University Avenue

Palo Alto, CA 94301

USA

Telephone:            +1-650-614-4800

Facsimile:                  +1-650-614-4800

Attention:                  Richard Zamboldi

 

with a copy to:

(which shall not constitute notice to such Investors)

 

Kirkland & Ellis LLP

950 Page Mill Road

Palo Alto, CA 94304

Telephone:              +1-650-859-7050

Facsimile:                    +1-650- 859-7500

Attention:                    Adam D. Phillips

 

 

SCHEDULE OF OTHER SHAREHOLDERS

 

Scott Farquhar

 

Michael Cannon-Brookes

 

Anton Mazkovoi

 

Skip Enterprises Pty Limited

as trustee for the Farquhar Family Trust

c/- Wearne & Co,

 

Grokco Pty Limited

as trustee for the Grok Trust

c/- Gateway Partners Pty Limited

 

7

 

EXHIBIT A

 

REGISTRATION AGREEMENT

 

JOINDER

 

The undersigned is executing and delivering this Joinder pursuant to the Registration Agreement dated as of                         (as the same may hereafter be amended, the “Registration Agreement”), among                              , a                           corporation (the “Company”)and the other person named as parties therein.

 

By executing and delivering this Joinder to the Company, the undersigned hereby agrees to become a party to, to be bound by, and to comply with the provisions of the Registration Agreement as a holder of Registrable Securities in the same manner as if the undersigned were an original signatory to the Registration Agreement, and the undersigned’s                     shares of Ordinary Shares shall be included as Registrable Securities under the Registration Agreement.

 

Accordingly, the undersigned has executed and delivered this Joinder as of the                    day of                            ,                     .

 

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Signature of   Shareholder
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Print Name of   Shareholder
    
	
 
    	
 
    
	
 
    	
 
    
	
Agreed and   Accepted as of
    	
 
    
	
 
    	
 
    
	
                                                 .
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Its:
    	
 
    	
 
    

 

8Exhibit 10.2

 

Atlassian Corporation Plc

 

Atlassian UK

Employee Share Option Plan

 

(December 10, 2013)

 

1

 

Contents

 

	
1.
    	
Definitions
    	
1
    
	
2.
    	
Interpretation
    	
4
    
	
3.
    	
No Effect on Contract   of Employment
    	
5
    
	
4.
    	
Option Entitlement
    	
6
    
	
5.
    	
Acceptance of Offer
    	
7
    
	
6.
    	
No Disposal
    	
7
    
	
7.
    	
Duration and lapsing of   Options
    	
8
    
	
8.
    	
Vesting of Options
    	
8
    
	
9.
    	
Exercise of Options
    	
9
    
	
10.
    	
Issue of Restricted   Shares and new Option Certificate
    	
9
    
	
11.
    	
Purchase of Options at   Company’s Request
    	
10
    
	
12.
    	
Procedure on occurrence   of Exit Event
    	
10
    
	
13.
    	
Capital changes
    	
11
    
	
14.
    	
Reconstruction of share   capital
    	
11
    
	
15.
    	
Ceasing Employment
    	
12
    
	
16.
    	
No Participation in New   Issues
    	
13
    
	
17.
    	
Pari Passu Ranking
    	
13
    
	
18.
    	
Interest in Shares
    	
13
    
	
19.
    	
Duties and Taxes
    	
13
    
	
20.
    	
No Assignment of   Options
    	
13
    
	
21.
    	
Management of Option   Plan
    	
14
    
	
22.
    	
Calculations
    	
15
    
	
23.
    	
Replacement of   Certificates
    	
15
    
	
24.
    	
Amendment of Terms and Conditions
    	
15
    
	
25.
    	
Inconsistency
    	
15
    
	
26.
    	
Notices
    	
15
    
	
27.
    	
Overseas Eligible   Persons
    	
15
    
	
28.
    	
Governing Laws
    	
16
    
	
Schedule   1 - Application for Options
    	
17
    
	
Schedule   2 - Option Certificate
    	
18
    
	
Schedule   3 - Option Exercise Notice
    	
19
    

 

1

 

Terms and Conditions of Atlassian UK Employee Share Option Plan

 

The terms and conditions of the Atlassian UK Employee Share Option Plan are as follows:

 

1.                                      Definitions

 

1.1                               In these Rules, unless the context or subject matter otherwise requires:

 

(1)                                 Applicable Law means any one or more or all, as the context requires of:

 

(a)                                 the Companies Act 2006;

 

(b)                                 the rules of any stock market or exchange on which Shares are listed and/or quoted;

 

(c)                                  the Articles of Association of the Company; and

 

(d)                                 any practice note, policy statement, class order, declaration, guideline, policy or procedure pursuant to the provisions of which the UK Financial Conduct Authority or the Australian Securities & Investments Commission (or any equivalent body in any applicable jurisdiction) is authorised or entitled to regulate, implement or enforce, either directly or indirectly, the provisions of any of the foregoing statutes, regulations, rules, deeds or agreements or any conduct or proposed conduct or any person pursuant to any of the statutes, regulations, rules, deeds or agreements referred to above;

 

(2)                                 Application Form means a notice substantially in the form of Schedule 1;

 

(3)                                 Approved Depository has the meaning given in the Constitution;

 

(4)                                 Board means the board of directors of the Company;

 

(5)                                 Business Day means a day on which banks are open for business in Sydney, Australia excluding a Saturday, Sunday or public holiday;

 

(6)                                 Cessation Event in relation to an Optionholder means:

 

(a)                                 the death of the Optionholder;

 

(b)                                 redundancy or retirement of the Optionholder;

 

(c)                                  resignation of employment or consultancy by an Optionholder or resignation or removal from office in the case of an Optionholder who is a director of the Company;

 

(d)                                 subject to rule 15, termination of the Optionholder’s employment or consultancy with a Group Company (except for the purposes of the Optionholder taking employment or consultancy with another Group Company); or

 

(e)                                  such other circumstances as the Board may at any time determine.

 

(7)                                 Class A Ordinary Shares means class A ordinary shares in the capital of the Company;

 

1

 

(8)                                 Class B Ordinary Shares means class B ordinary shares in the capital of the Company;

 

(9)                                 Committee means the Board or any committee to whom the Board has delegated the responsibility for administering the Option Plan and the Rules;

 

(10)                          Company means Atlassian Corporation Plc (Company Number 8776021);

 

(11)                          Constitution means the Articles of Association of the Company;

 

(12)                          Corporations Act means the UK Companies Act 2006;

 

(13)                          Director means a director of the Company;

 

(14)                          Dispose means, in relation to an Option or a Restricted Share, sell, transfer, grant an option over, create a Third Party Right in, deal or otherwise dispose of the Option or Restricted Share or any interest in them;

 

(15)                          Disposal means the sale, assignment, transfer or disposal by other means (including by way of joint venture) of an asset or any legal or equitable interest in any asset (in whole or in part), either in a single transaction or in a series of transactions, whether related or not and whether voluntary or involuntary;

 

(16)                          Distribution means a distribution by the Company to Shareholders in cash or kind whether by dividend, share buy-back, reduction of capital, winding up or otherwise;

 

(17)                          DS Holder has the meaning given in the Constitution;

 

(18)                          DS Interest has the meaning given in the Constitution;

 

(19)                          Eligible Person means a person whom the Board determines in accordance with rule 4.1 is eligible to participate in the Option Plan;

 

(20)                          Eligible Person’s Nominee means a Privileged Relation or a company or trustee of a trust nominated by the Eligible Person and approved by the Board;

 

(21)                          Employment Termination Date means:

 

(a)                                 where employment or consultancy ceases by virtue of notice given by the employer to the Optionholder, the date on which such notice expires;

 

(b)                                 where a contract is terminated by the employer and a payment is made in lieu of notice, the date on which the notice of termination is served; and

 

(c)                                  in any other case the date on which the contract of employment or consultancy is terminated;

 

(22)                          Equivalent Atlassian Australia Option has the meaning given in rule 4.5;

 

(23)                          Exercise Notice, means a notice substantially in the form of Schedule 3;

 

(24)                          Exercise Period means, in relation to an Option, the period commencing on the date on which the Option vests and ending on the Expiry Date;

 

(25)                          Exercise Price means in respect of an Option, subject to rule 12, the exercise price determined by the Board and included in the Offer giving rise to that option;

 

2

 

(26)                          Exit Date means each of:

 

(a)                                 the date on which the parties complete the sale and purchase of Shares under a Share Sale; and

 

(b)                                 the date first Distribution or other payment to Shareholders arising from a Disposal or realisation of the kind referred to in paragraph (b) of the definition of Exit Event;

 

(27)                          Exit Event means each of

 

(a)                                 a Share Sale; and

 

(b)                                 any other event or series of events that results in or allows a Disposal or realisation of all Shareholders’ interests in the Company and which the Board declares to be an Exit Event;

 

(28)                          Expiry Date means the date on which the Option lapses under rule 7.1;

 

(29)                          Issue Date means in respect of an Option, the date upon which the Option is issued to the Optionholder, as set out in the Option Certificate;

 

(30)                          Offer means an offer made to an Eligible Person by or on behalf of the Board to participate in the Plan;

 

(31)                          Option means an option over Restricted Shares issued under this Option Plan;

 

(32)                          Option Certificate means a certificate substantially in the form of Schedule 2;

 

(33)                          Option Plan means the Atlassian UK Employee Share Option Plan constituted by these Rules as amended from time to time;

 

(34)                          Option Value means, in relation to an Option, the value of the Restricted Share(s) that would be issued upon the exercise of the Option, as reasonably determined by the Board, less the Exercise Price of such Option;

 

(35)                          Optionholder means a person registered in the Company’s register of options as the holder of Options from time to time;

 

(36)                          Outstanding Option means an Option which has vested, has not been exercised and has not lapsed;

 

(37)                          Pre-Scheme Optionholders has the meaning given in rule 4.2;

 

(38)                          Pre-Scheme Options has the meaning given in rule 4.2;

 

(39)                          Privileged Relation means the spouse or child of an Eligible Person;

 

(40)                          Qualified Listing has the meaning given in the Constitution;

 

(41)                          Related Body Corporate means a “group undertaking” in relation to the Company within the meaning given in the Corporations Act;

 

(42)                          Restricted Shares means restricted shares in the capital of the Company;

 

(43)                          Rules means these terms and conditions, as amended from time to time;

 

(44)                          Schemes has the meaning given in rule 4.2;

 

3

 

(45)                          Securities means shares, debentures, stocks, bonds, notes, interests in a managed investment scheme, units, warrants, options, derivative instruments or any other securities.

 

(46)                          Series A Preference Shares means series A preference shares in the capital of the Company;

 

(47)                          Series B Preference Shares means series B preference shares in the capital of the Company;

 

(48)                          Share Sale means the sale or transfer of more than 70% of the Shares in the Company to an unaffiliated third party (i.e. not part of a corporate restructuring, reincorporation, compromise or arrangement under Part 26 of the Corporations Act or similar event);

 

(49)                          Shareholder means a person who is the registered holder of a Share;

 

(50)                          Shareholders Agreement has the meaning given in the Constitution;

 

(51)                          Shares means shares in the capital of the Company;

 

(52)                          Terms of Issue means the terms set out in an Offer and any variation or addition to those terms made pursuant to these Rules or by agreement between the Optionholder and the Company;

 

(53)                          Third Party Right means:

 

(a)                                 any third party interest, including a mortgage, charge, assignment by way of security, lien, pledge, hypothecation, title retention arrangement, preferential right or a trust arrangement;

 

(b)                                 any arrangement having a commercial effect equivalent to anything in (a); and

 

(c)                                  any agreement to create an interest described in (a) or an arrangement described in (b); and

 

(54)                          Unvested Options means Options which have been issued to an Optionholder but which have not yet vested.

 

2.                                      Interpretation

 

2.1                               In these terms and conditions, unless the context otherwise requires:

 

(1)                                 headings are for convenience only and do not affect the interpretation of these terms and conditions;

 

(2)                                 the singular includes the plural and vice versa;

 

(3)                                 the word person includes a firm, a body corporate, an unincorporated association or an authority;

 

(4)                                 a reference to any statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of them;

 

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(5)                                 a reference to a document includes an amendment or supplement to, or replacement or novation of, that document;

 

(6)                                 a reference to a person includes a reference to the person’s executors, administrators, successors, substitutes (including, without limitation, persons taking by novation) and assigns;

 

(7)                                 an agreement, representation or warranty on the part of or in favour of two or more persons binds or is for the benefit of them jointly and severally;

 

(8)                                 if a period of time is specified and dates from a given day or the day of an act or event, it is to be calculated exclusive of that day;

 

(9)                                 a reference to a currency is a reference to Australian currency unless otherwise indicated; and

 

(10)                          a reference to time is a reference to the time in Sydney, Australia.

 

2.2                               Primary Instruments

 

(1)                                 These Rules are to be interpreted subject to all Applicable Laws.

 

(2)                                 If there is any inconsistency between:

 

(a)                                 the Rules and the Terms of Issue the Rules prevail to the extent of the inconsistency; and

 

(b)                                 the Terms of Issue and any other document (other than the Rules), communication or representation, the Terms of Issue prevail.

 

2.3                               Offers must not breach law

 

The following applies to the operation of this Option Plan:

 

(1)                                 an Offer may not be made to an Eligible Person;

 

(2)                                 Options may not be awarded under the Option Plan;

 

(3)                                 Options awarded under the Option Plan may not be dealt with by an Optionholder;

 

(4)                                 Options may not be exercised or Restricted Shares issued under the Option Plan, 

 

if to do so would contravene any Applicable Laws.

 

3.                                      No Effect on Contract of Employment

 

3.1                               This Option Plan does not form any part of any contract of employment or consultancy between the Company and an Eligible Person unless expressly incorporated in the contract of employment.

 

3.2                               Nothing in this Option Plan:

 

(1)                                 confers on an Eligible Person any right to continue as an employee, consultant or director of the Company or a Related Body Corporate; or

 

(2)                                 affects the rights which the Company or a Related Body Corporate may have to terminate the employment, consultancy or office of an Eligible Person; or

 

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(3)                                 may be used to increase any compensation or damages in any action brought against the Company or a Related Body Corporate in relation to the termination of employment, consultancy or removal from office of an Eligible Person.

 

3.3                               An invitation to participate in the Option Plan will be in respect of a single grant of Options and does not entitle an Eligible Person to participate in any subsequent grants.

 

4.                                      Option Entitlement

 

4.1                               The Board determines which employees, consultants or directors of the Company or of any Related Body Corporate may participate in the Option Plan (Eligible Persons).

 

4.2                               The Board may treat any holder of options granted under the Atlassian Employee Share Option Plan established by Atlassian Corporation Pty Ltd (ACN 122 325 777) (Atlassian Australia) as an Eligible Person (Pre-Scheme Optionholders). The provisions of rule 4.5 shall apply to the grant of any Options (Pre-Scheme Options) to Pre-Scheme Optionholders under the scheme of arrangement between the Company and the Pre-Scheme Optionholders pursuant to Part 5.1 of the Corporations Act 2001 (Cth) referred to in the scheme booklet prepared by Atlassian Australia and dated on or about 13 December 2013 (Schemes).

 

4.3                               The Board may make an Offer to an Eligible Person to apply for Options.

 

4.4                               An Offer will:

 

(1)                                 be in writing;

 

(2)                                 be subject to the Terms of Issue;

 

(3)                                 not be inconsistent with the Rules; and

 

(4)                                 be accompanied by an Application Form.

 

4.5                               Despite any other rule in this Option Plan, or any other terms and conditions governing Options (as contained in any other document or otherwise), Pre-Scheme Options:

 

(1)                                 are subject to the terms and conditions contained in this Option Plan;

 

(2)                                 are deemed to have the same grant date which applied to the relevant option in Atlassian Australia (Equivalent Atlassian Australia Option) that was cancelled, and in respect of which such Pre-Scheme Option was provided as consideration by the Company, when the Schemes became effective;

 

(3)                                 have the exercise price and expiry date set out in the relevant Scheme, such exercise price and expiry date being the same as applied to the Equivalent Atlassian Australia Option; and

 

(4)                                 are deemed to have the same vesting schedule (and any other terms governing vesting, including any terms permitting any acceleration of vesting) which applied to the Equivalent Atlassian Australia Option prior to the Schemes becoming effective, and any unvested Pre-Scheme Options will vest in accordance with such vesting schedule and terms.

 

4.6                               Options issued pursuant to the Option Plan may be

 

(1)                                 issued for nil consideration; or

 

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(2)                                 issued for such other consideration as determined by the Board.

 

4.7                               Subject to rules 11 and 12, each Option entitles the Optionholder to subscribe for one Restricted Share at the Exercise Price.

 

4.8                               The Board will only issue an Offer with, or conditional upon, Shareholder approval, if such approval is required by Applicable Law.

 

5.                                      Acceptance of Offer

 

5.1                               To accept an Offer, an Eligible Person must sign and return to the Company a signed Application Form together with a signed copy of the Offer within 1 month of the date of the Offer or as determined by the Board.

 

5.2                               An Eligible Person may only apply for Options in his or her own name or in the name of the Eligible Person’s Nominee.

 

5.3                               On receipt of a signed Application Form complying with rule 5.1, the Company will:

 

(1)                                 grant the relevant number of Options to the Optionholder;

 

(2)                                 register the Optionholder in the Company’s register of Options; and

 

(3)                                 issue the Optionholder an Option Certificate.

 

5.4                               On accepting an Offer, the Optionholder is bound by the Rules and the Terms of Issue.

 

6.                                      No Disposal

 

6.1                               Subject to rule 6.2, unless the Board determines otherwise, an Optionholder must not Dispose of, or create or allow to exist any Third Party Right over, any Option granted under this Option Plan.

 

6.2                               An Optionholder may Dispose of any of its Options to:

 

(1)                                 a person who is an Eligible Person’s Nominee for the purposes of these Rules, provided that if the transferee ceases to be an Eligible Person’s Nominee it must, within 15 Business Days of so ceasing, transfer the Options held by it to the Optionholder or any other person who is an Eligible Person’s Nominee of the Optionholder;

 

(2)                                 a nominee or trustee for that Optionholder and any such nominee or trustee may transfer Options to any other nominee or trustee or to the beneficiary provided that no beneficial interest in the Options passes as a result of the transfer;

 

(3)                                 any person with the prior written consent of the Board;

 

(4)                                 any person with the prior written consent of the Shareholder Majority (as defined in the Constitution);

 

(5)                                 if the Optionholder is a natural person, to any member of that person’s family (other than to a person who is a minor) or to the trustee or trustees of a family trust set up for the benefit of that person’s family provided that a person acquiring Options pursuant to this rule is not entitled to transfer any Options except for a transfer to the person from whom the transferee acquired the Options.

 

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6.3                               An Optionholder may Dispose of any of its Restricted Shares in accordance with the Constitution.

 

7.                                      Duration and lapsing of Options

 

7.1                               An Option lapses on the earliest to occur of the date:

 

(1)                                 specified in the Offer; or

 

(2)                                 on which a Cessation Event happens in relation to an Optionholder (provided that, if the Option has been acquired by a person under the process referred to in rule 6.2(3) (if such exclusion from this rule 7.1 has also been approved by the Board), only paragraph (e) of the definition of Cessation Event (see rule 1.1(6)) shall apply to that Option); or

 

(3)                                 on which the Option otherwise lapses under these Rules; or

 

(4)                                 on which any lapsing event specified in the Offer occurs; or

 

(5)                                 if no date is specified and the Option has not otherwise lapsed, 30 June 2017.

 

7.2                               Options lapse under rule 7.1 irrespective of whether they have vested.

 

7.3                               On the lapse of an Option the Optionholder must immediately return the Option Certificate to the Company for cancellation.

 

8.                                      Vesting of Options

 

8.1                               An Option may only be exercised once it has vested during the Exercise Period.

 

8.2                               An Offer may specify:

 

(1)                                 vesting dates; and/or

 

(2)                                 vesting pre-conditions; and/or

 

(3)                                 other vesting events.

 

8.3                               The Board may, in its discretion, determine or vary at any time:

 

(1)                                 vesting dates; and/or

 

(2)                                 vesting pre-conditions; and/or

 

(3)                                 other vesting events, 

 

in respect of any Options.

 

8.4                               If vesting dates, vesting pre-conditions or other vesting events are specified under rule 8.2 or 8.3, the relevant Options vest on occurrence or satisfaction of the specified date, pre-condition and/or other event.

 

8.5                               If vesting dates, pre-conditions or other vesting events are not specified under rule 8.2 or 8.3, the following conditions apply to any Options offered to an Eligible Person.

 

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(1)                                 Options acquired by an Eligible Person (or the Eligible Person’s Nominee) will only vest while the Eligible Person remains employed with the Company or any Related Body Corporate or continues to provide consulting services to the Company or any Related Body Corporate. Unless determined otherwise by the Board, the Options will vest and become exercisable by the Optionholder:

 

(a)                                 in respect of 25% of the Options held by the Optionholder, on the date which is 12 months after the Company makes an Offer to the Optionholder (unless otherwise determined by the Board); and

 

(b)                                 in respect of the remaining 75% of the Options held by the Optionholder, 1/36 on the last day of each calendar month of the 36 month period commencing on the date after the initial 25% of the Optionholder’s Options vest.

 

(2)                                 Unless determined otherwise by the Board, vesting of each portion of Options will occur on the last day of each month. If an Eligible Person only works for part of a month during the vesting period, no Options will vest in that month.

 

(3)                                 If, during the vesting period, an Eligible Person takes an unpaid leave of absence which is approved by the Company, such person’s Options will cease to vest for the duration of the leave period. If the leave period includes part of a month, no vesting will occur in that month. Vesting may continue during a period of leave, if the employee continues to be paid by the Company during the period of leave. If an Eligible Person is paid part of their salary during a period of leave, the Options will vest over the leave period pro rata to the proportion of the Eligible Person’s salary that is paid.

 

8.6                               If the Company expects an Exit Event to occur or an Exit Event not anticipated by the Company does occur, the Board will determine the extent to which any Unvested Options held by Eligible Persons or Eligible Person’s Nominees will be deemed to have vested. If Unvested Options held by Eligible Persons or Eligible Person’s Nominees are deemed to have vested, the Eligible Persons may choose to exercise those Options to acquire Restricted Shares.

 

9.                                      Exercise of Options

 

9.1                               An Optionholder may at any time during the Exercise Period exercise an Outstanding Option, by lodging with the Company at its registered office:

 

(1)                                 the relevant Option Certificate;

 

(2)                                 a duly completed and signed Exercise Notice; and

 

(3)                                 an amount equal to the Exercise Price in Australian dollars or US dollars (as applicable) multiplied by the number of Options being exercised, except that this rule 9.1(3) will not apply where the Company has approved a loan to the Optionholder to fund the Exercise Price.

 

10.                               Issue of Restricted Shares and new Option Certificate

 

10.1                        If an Optionholder exercises Options, the Company must (subject to rule 11):

 

(1)                                 issue the number of Restricted Shares which corresponds with the number of Options exercised; and

 

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(2)                                 issue to the Optionholder a share certificate for those Restricted Shares.

 

10.2                        The Company may satisfy its obligation under rule 10.1 by procuring the creation, delivery or transfer to the Optionholder of depositary shares (and, if in certificated form, accompanying depositary receipts) representing the Restricted Shares which would otherwise be issued pursuant to rule 10.1. Any such depositary shares and/or receipts will be created and delivered in accordance with and subject to the terms of a deposit agreement to be entered into between the Company and a depositary chosen and appointed by the Company, on such terms as the Board in its absolute discretion considers to be appropriate, for the purposes of administering such a depositary programme. References in these rules to Restricted Shares or the issue of Restricted Shares shall consequently be read as including such depositary shares and/or receipts or the creation, delivery or transfer of such depositary shares and/or receipts as appropriate. Optionholders are deemed to consent to the Restricted Shares being held by the depositary in accordance with the terms of the deposit agreement.

 

11.                               Purchase of Options at Company’s Request

 

11.1                        The Company may, in its sole discretion, by written notice to an Optionholder, elect to purchase Options (whether vested or not) from the Optionholder prior to the Options being exercised.

 

11.2                        At any time after the exercise of Options but before the issue of Restricted Shares under rule 10, the Company may in lieu of issuing Restricted Shares, by written notice to the Optionholder, elect to make a payment to the Optionholder in accordance with rule 11.3.

 

11.3                        If the Company elects to purchase the Options held by an Optionholder pursuant to rule 11.1 or elects to apply rule 11.2, it must refund or pay (as the case may be) to the Optionholder:

 

(1)                                 any consideration received in respect of the Options under rule 4.5; and

 

(2)                                 an amount equal to the Option Value in respect of each of the Options for which notice is given to the Optionholder under rule 11.1 or rule 11.2.

 

11.4                        With effect from the date of notice served pursuant to rule 11.1 or rule 11.2, the Options in respect of which the notice has been served are cancelled.

 

12.                               Procedure on occurrence of Exit Event

 

12.1                        Upon the occurrence of an Exit Event, each Option shall either be (i) assumed or an equivalent option or right shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation (the “Successor Corporation”), or (ii) terminated in exchange for a payment of cash, securities and/or other property equal to the excess of the Fair Market Value of the portion of the Options that are vested and exercisable immediately prior to the consummation of the Exit Event over the per Exercise Price thereof.

 

For the purposes of this rule 12.1, “Fair Market Value” means, as of any date, the per share fair market value of a Restricted Share, as determined by the Board in good faith on such basis as it deems appropriate and applied consistently with respect to Optionholders.

 

12.2                        On or prior to an Exit Event, unless the Company purchases the relevant Options pursuant to rule 11, the Company must:

 

(1)                                 notify the Optionholder of the number of Options that will vest as a result of the Exit Event occurring;

 

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(2)                                 make appropriate arrangements to ensure such Options and all other Outstanding Options (being vested Options) are able to be exercised on or prior to the Exit Date; and

 

(3)                                 use reasonable endeavours to ensure that the Shares issued as a result of the exercise of Options at or about the time of an Exit Event are accorded the same rights and receive the same benefits in relation to the Exit Event as pre-existing Shares.

 

12.3                        In respect of any Shares or DS Interests issued as a result of the exercise of Options at or about the time of an Exit Event (and such Exit Event is a Qualified Listing), the holder of those Shares or DS Interests must not transfer such Shares or DS Interests for a period of 180 days (or such shorter period as resolved by the Board in a manner permitted by the terms of the applicable underwriting agreement) after the Qualified Listing. The provisions in this clause 12.3 shall not prevent an Approved Depositary from transferring Shares to a DS Holder as part of the surrender of their DS Interest, provided that following such transfer the Shareholder will remain subject to the provisions of this clause 12.3.

 

12.4                        The restriction in clause 12.3 does not apply to Shares issued by the Company or Shares or DS Interests sold by a Shareholder pursuant to the Qualified Listing.

 

13.                               Capital changes

 

13.1                        An Optionholder may only participate in new issues of securities to holders of Shares if the Option has been exercised, if that is permitted by its terms, and the Shares are allotted in respect of the Option before the record date for determining entitlements to the issue.

 

14.                               Reconstruction of share capital

 

14.1                        If the Company’s shares are admitted for listing or trading on any stock exchange or stock market, in the event of a re-organisation of the share capital of the Company, the rights of an Optionholder will be changed to the extent necessary to comply with the rules of the stock exchange or stock market on which Shares are listed or traded applying to a re-organisation of capital at the time of the re-organisation.

 

14.2                        Without limiting rule 14.1, in any reconstruction Options shall be treated in the following manner:

 

(1)                                 in the event of a consolidation of the Shares, the number of Options shall be consolidated in the same ratio as the Shares and the Exercise Price shall be amended in the inverse proportion to that ratio;

 

(2)                                 in the event of a subdivision of the Shares, the number of Options shall be subdivided in the same ratio as the Shares and the Exercise Price shall be amended in inverse proportion to that ratio;

 

(3)                                 in the event of a return of capital, the number of Options must remain the same, and the Exercise Price must be reduced by the same amount as the amount returned in relation to each Share;

 

(4)                                 in the event of a reduction of capital by cancellation of paid up capital that is lost or not represented by available assets where no securities are cancelled, the number of Options and the Exercise Price must remain unaltered;

 

(5)                                 in the event of a pro rata cancellation of Shares, the number of Options shall be reduced in the same ratio as the Shares and the Exercise Price of each Option shall be amended in inverse proportion to that ratio; and

 

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(6)                                 in the event of any other reconstruction of the issued capital of the Company, the number of Options or the Exercise Price of the Options or both, must be reorganised so that the Optionholder will not receive a benefit that the holders of Shares do not receive;

 

14.3                        In the event of a reconstruction of the capital in terms of this rule 14 the Company must give notice to Option holders of any adjustment to the number of Shares which the holder is entitled to subscribe for on exercise of an Option or to the Exercise Price per Share.

 

15.                               Ceasing Employment

 

15.1                        Unvested Options

 

If an Optionholder ceases to be employed by the Company or any of its Related Bodies Corporate or act as a consultant for the Company or any of its Related Bodies Corporate for any reason (including without limitation death or disability), all unvested Options granted to the Optionholder and/or to his or her Eligible Person Nominee will, unless determined by the Board in its absolute discretion, automatically lapse on the Employment Termination Date of that Optionholder.

 

15.2                        Vested Options

 

If an Optionholder ceases to be employed by the Company or any of its Related Bodies Corporate or act as a consultant for the Company or any of its Related Bodies Corporate then:

 

(1)                                 in the case of a Qualifying Leaver, vesting of the Optionholder’s Options ceases on the last day of the last full month of the Eligible Person’s employment or consultancy, as applicable, and, except as determined by the Board in its absolute discretion, all vested Options granted to the Optionholder and/or his or her Eligible Person Nominee must be exercised within 3 months of the Employment Termination Date and any vested Options which are unexercised or which the Optionholder has not made an election to exercise upon that date will automatically lapse; or

 

(2)                                 in the case of a Non-Qualifying Leaver, all unvested and vested Options granted to the Optionholder and/or his or her Eligible Person Nominee will automatically lapse on the Employment Termination Date.

 

15.3                        The Board must determine, in its absolute discretion, whether the Optionholder is to be categorised for the purposes of this rule 15 as either a “Qualifying Leaver” or “Non-Qualifying Leaver”. In making this determination, the Board must consider the following:

 

(1)                                 “Qualifying Leaver” will be an Optionholder who ceases to be employed by the Company or act as a consultant for the Company because they:

 

(a)                                 are incapacitated through illness;

 

(b)                                 die;

 

(c)                                  resign at normal retirement age (if applicable);

 

(d)                                 resign voluntarily at any time and comply with all applicable obligations in their terms of employment or consultancy, as applicable, with respect to such resignation, including in relation to notice to be given to the Company;

 

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(e)                                  have their employment or consultancy terminated for a reason other than gross misconduct, fraud or conduct justifying summary dismissal; or

 

(f)                                   leave for any other reason the Board determines in its discretion;

 

(2)                                 “Non-Qualifying Leaver” will be an Optionholder who ceases to be employed by the Company or act as a consultant for the Company and is not a Qualifying Leaver.

 

15.4                        Unless determined otherwise by the Board, this rule 15 does not apply to any Option that has been acquired by a person under the process referred to in rule 6.2(3).

 

16.                               No Participation in New Issues

 

Outstanding Options do not carry the right to participate in any new issues of securities by the Company.

 

17.                               Pari Passu Ranking

 

17.1                        Restricted Shares allotted pursuant to an exercise of Options shall rank pari passu with the Restricted Shares of the Company then in issue in accordance with the Company’s Constitution.

 

17.2                        For the avoidance of doubt, in accordance with the Company’s Constitution, the a holding of Restricted Shares does not entitle the holder to receive a dividend.

 

18.                               Interest in Shares

 

18.1                        An Optionholder has no interest in Restricted Shares the subject of his or her Options until those Options are exercised and Restricted Shares allotted to the Optionholder.

 

18.2                        An Optionholder has no Shareholder voting or other rights with respect to any Options until the Restricted Shares the subject of those Options convert into Class A Ordinary Shares in accordance with the Company’s constitution.

 

19.                               Duties and Taxes

 

19.1                        The Optionholder is responsible for meeting any liability in respect of any duties or taxes which may become payable by an Optionholder in connection with the issue of Options or the issue of Restricted Shares pursuant to an exercise of Options or the conversion of Restricted Shares into Class A Ordinary Shares or any other dealing with the Options, Restricted Shares or Class A Ordinary Shares.

 

19.2                        If, on the occurrence of any of the events referred to in rule 19.1 above, the Company or any Related Body Corporate is required to account to the revenue authorities in any jurisdiction for any duties or taxes arising, the Optionholder agrees to reimburse such entity within 7 days of being notified by the Company of the amount of such liability.

 

20.                               No Assignment of Options

 

An Optionholder may not sell, transfer, mortgage, pledge, assign or otherwise encumber an Option except as allowed by this Option Plan.

 

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21.                               Management of Option Plan

 

21.1                        Administration

 

The Option Plan will be administered by the Committee, which has absolute discretion and power to:

 

(1)                                 determine appropriate procedures and make regulations and guidelines for the administration and operation of the Option Plan which are consistent with these Rules;

 

(2)                                 exercise all powers and discretions vested in it under the Rules;

 

(3)                                 resolve conclusively all questions of fact or interpretation in connection with the Option Plan other than manifest error, including:

 

(a)                                 the number of Options to be granted to an Optionholder pursuant to an Offer;

 

(b)                                 the number of Options that vest to an Optionholder; and

 

(c)                                  the conditions of exercise of Options; and

 

(4)                                 terminate or suspend the operation of the Option Plan at any time provided that the termination or suspension will not unduly adversely affect the rights of Participants holding Options or Restricted Shares;

 

(5)                                 delegate such functions and powers as it may consider appropriate for the efficient administration of the Option Plan to any person or persons capable of performing those functions and exercising those powers;

 

(6)                                 take and rely upon professional expert advice in or in relation to, the exercise of any of its powers or discretions under these Rules; and

 

(7)                                 administer the Option Plan in accordance with the Rules as and to the extent provided in the Rules.

 

21.2                        Committee’s Absolute Discretion

 

Where these Rules provide for a determination, decision, declaration or approval of the Committee, such determination, decision, declaration or approval may be made or given by the Committee, unless otherwise stated, in its absolute discretion.

 

21.3                        Powers to be exercised by the Committee

 

Any power or discretion which is conferred on the Committee by these Rules may be exercised by the Committee in the interests, or for the benefit, of the Company and the Committee is not under any fiduciary or other obligation to any other person.

 

21.4                        Expenses of the Option Plan

 

Subject to rule 19, the costs and expenses of establishing, managing and administering the Option Plan will be borne by the Company.

 

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22.                               Calculations

 

22.1                        Any calculations or adjustments which are required to be made by the Board or the Company for the purpose of the Options will, in the absence of manifest error, be final and conclusive and binding on the Optionholders.

 

22.2                        The Company must notify each Optionholder of any adjustments made to the Exercise Price or the number of Options within 10 Business Days after the date of the adjustment.

 

23.                               Replacement of Certificates

 

23.1                        If any Option Certificate is lost, stolen, mutilated, defaced or destroyed, it may be replaced by the Company:

 

(1)                                 on payment by the claimant of the expenses incurred in connection with the replacement of the Option Certificate; and

 

(2)                                 on such terms as to evidence, indemnity and security as the Company may reasonably require.

 

23.2                        Mutilated or defaced Option Certificates must be surrendered before replacements will be issued.

 

24.                               Amendment of Terms and Conditions

 

The Option Plan may be amended from time to time by resolution of the Board subject to the requirements from time to time of the Corporations Act. Any such amendment however, must not adversely affect the rights of Optionholders in respect of granted Options prior to such amendment without the consent of those Optionholders, unless such amendment is required by, or necessitated by, an Applicable Law.

 

25.                               Inconsistency

 

To the extent that there is an inconsistency between this Option Plan and the Constitution, the Constitution prevails.

 

26.                               Notices

 

Any notice regarding the Options will be sent to the registered address of the Optionholder as recorded in the register of Options maintained by the Company.

 

27.                               Overseas Eligible Persons

 

The Company may, in its sole discretion:

 

(1)                                 make Offers to Eligible Persons who reside outside of the United Kingdom; and

 

(2)                                 make regulations for the operation of the Plan which are not inconsistent with these Rules to apply to Participants who reside outside of the United Kingdom.

 

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28.                               Governing Laws

 

This Option Plan is governed by and shall be construed in accordance with the laws of England and Wales.

 

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Schedule 1 - Application for Options

 

Atlassian Corporation Plc

Company Number 8776021

(Company)

 

The Board

Atlassian Corporation Plc (Company Number 8776021)

 

Name:

 

Full Address:

 

applies for                         Options under the Atlassian UK Employee Share Option Plan (Plan).

 

I request you to grant those Options.

 

I agree to accept the Options subject to:

 

(1)                                 the terms of the Plan;

 

(2)                                 the terms set out in the Offer dated [date]; and

 

(3)                                 the Constitution of the Company.

 

By making applications for Options, I acknowledge that the Company has advised me to seek independent legal and financial advice in relation to the Option Plan and that it is advisable that I obtain my own separate independent legal and financial advice in relation to the Option Plan.

 

	
Signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    

 

17

 

Schedule 2 - Option Certificate

 

Atlassian UK

Employee Share Option Plan

Option Certificate

 

Atlassian Corporation Plc (Company Number 8776021) hereby certifies that

 

of

 

is the holder of                         Options, issued on                          

 

The Options are issued subject to the Company’s UK Employee Share Option Plan dated [date] (as amended from time to time) and the Letter of Offer to                                dated                        .

 

The Exercise Price for the Options is             

 

The Expiry Date for the Options is                    

 

The Options are subject to the vesting dates and conditions (if any) contained in the Letter of Offer.

 

	
Executed by   Atlassian Corporation Plc and
    	
 
    	
 
    
	
delivered as a   deed on the date hereof:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Director/company   secretary
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name of director/company   secretary
    	
 
    	
Name of director
    
	
(BLOCK LETTERS)
    	
 
    	
(BLOCK LETTERS)
    
	
 
    	
 
    	
 
    
	
DATE:
    	
 
    	
 
    

 

18

 

Schedule 3 - Option Exercise Notice

 

I,                                       (the “Optionholder”) being the registered holder of the Options specified below, elect to exercise those Options pursuant to rule 9 of the Atlassian UK Employee Share Option Plan.

 

Options being exercised:

 

Total number of Options being exercised

 

Exercise Price:

 

Exercise Price per Option

 

Total Exercise Price

 

Shareholder’s Details

 

Name and address of the Shareholder to be entered into the Share register:

 

 

Postcode

 

Name and address to which Share Certificates should be sent:

 

 

Postcode

 

Enclosed with this notice is the certificate for the Options referred to above together with the Total Exercise Price.

 

By signing this Option Exercise Notice, the Optionholder hereby acknowledges, confirms, represents and warrants to the Company as follows:

 

1.              Neither the Restricted Shares nor any depositary shares and/or receipts provided pursuant to paragraph 10.2 of the Atlassian UK Employee Share Option Plan (“Depositary Shares”) have been or will be registered under the US Securities Act of 1933 (the “US Securities Act”) or with any securities regulatory authority of any state, territory or other jurisdiction of the United States, and may not be offered or sold, directly or indirectly, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and in compliance with any applicable securities laws of any state of the United States;

 

2.              The Optionholder is either (please check one):

 

o                                    located outside the United States and (i) the offer of Restricted Shares and any Depositary Shares was made to the Optionholder, and at the time the Optionholder’s buy order was originated, the Optionholder was outside the United States (within the meaning of Regulation S under the US Securities Act (“Regulation S”)); and (ii) is not acquiring either the Restricted Shares or any

 

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Depositary Shares as a result of any form of “directed selling efforts” (as defined in Regulation S); or

 

o                                    located in the United States and (i) is an “accredited investor” (as defined in Rule 501(A) of Regulation D under the Securities Act); (ii) is not acquiring either the Restricted Shares and any Depositary Shares as a result of any form of general solicitation or general advertising (within the meaning of the Securities Act and Regulation D promulgated thereunder); (iii) acknowledges that the Restricted Shares and any Depositary Shares are ‘‘restricted securities’’ within the meaning of Rule 144(a)(3) under the Securities Act and that no representation is made as to the availability of the exemption provided by Rule 144 for resales of Restricted Shares or Depositary Shares; (iv) is aware that the Restricted Shares and any Depositary Shares are being offered in a transaction not involving any public offering in the United States; and (v) the Optionholder qualifies as an “accredited investor” under the category or categories checked below:

 

o                                    A natural person with individual net worth (or joint net worth with spouse) in excess of $1 million. For purposes of this item, “net worth” means the excess of total assets at fair market value (excluding the value of the primary residence of such natural person) over total liabilities (excluding the amount of indebtedness secured by the primary residence of such natural person up to such primary residence’s fair market value, except that if the amount of such indebtedness outstanding at the time of investment in the Restricted Shares and any Depositary Shares exceeds the amount outstanding 60 days before such time (the “additional indebtedness”), other than as a result of the acquisition of the primary residence, the amount of such additional indebtedness shall be included as a liability);

 

o                                    A natural person with individual income(1) (without including any income of the Investor’s spouse) in excess of $200,000 in each of the two most recent years and who reasonably expects to reach the same income level in the current year, or whose joint income(2) exceeds $300,000 in each of the two most recent years and who reasonably expects to reach the same joint income level in the current year; or

 

o                                    A director, executive officer (as defined in Regulation D under the Securities Act), or general partner (as defined in Regulation D) of the Company;

 

3.              The Optionholder is a sophisticated investor that is acquiring the Restricted Shares and any Depositary Shares with a full understanding of all of the terms, conditions, and risks thereof, and is capable of and willing to assume these risks;

 

(1)                                 For purposes of this item, “individual income” means adjusted gross income as reported for U.S. federal income tax purposes, less any income attributable to a spouse or to property owned by a spouse, increased by the following amounts (but not including any amounts attributable to a spouse or to property owned by a spouse): (i) the amount of any interest income received which is tax-exempt under §103 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), (ii) the amount of losses claimed as a limited partner in a limited Company (as reported on Schedule E or Form 1040), (iii) any deduction claimed for depletion under Code §611 et seq., (iv) any deductions for alimony paid, (v) amounts contributed to an IRA or Keogh retirement plan and (vi) any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income pursuant to the provisions of Code §1202 prior to its repeal by the Tax Reform Act of 1986.

 

(2)                                 For purposes of this item, “joint income” is defined in the same manner as “individual income” except that income attributable to a spouse or property owned by a spouse is to be included.

 

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4.              The Optionholder is acquiring the Restricted Shares and any Depositary Shares for its own account and not with a view to resale or other transfer in connection with any distribution of the Restricted Shares or Depositary Shares in any matter that would violate the US Securities Act; and

 

5.              The Company, its agents and representatives will rely upon the truth and accuracy of the acknowledgements, confirmations, representations and warranties set forth in this Option Exercise Notice.

 

I agreed to be bound by the provisions of the constitution of Atlassian Corporation Plc (Company Number 8776021).

 

	
Signed by the   Optionholder:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
					

 

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