Document:

Exhibit 10.3

 

INTRAWARE,
INC.

 

1996
STOCK OPTION PLAN

 

STOCK
OPTION AGREEMENT

 

Unless otherwise defined herein, the terms defined in
the Plan shall have the same defined meanings in this Option Agreement.

 

I.              NOTICE
OF STOCK OPTION GRANT

 

                    .

 

You have been granted an option to purchase Common
Stock of the Company, subject to the terms and conditions of the Plan and this
Option Agreement, as follows:

 

	
  Grant Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of Grant

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Commencement
  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise Price per
  Share

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Total Number of Shares
  Granted

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Exercise Price

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Type of Option:

  	
   

  	
  Incentive Stock Option

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nonstatutory Stock
  Option

  
	
  Term/Expiration Date:

  	
   

  	
   

  

 

Vesting Schedule:

 

This Option may be exercised, in whole or in part, in
accordance with the following schedule:

 

1/8th of the Shares subject to the
Option shall vest six months after the Vesting Commencement Date, and 1/48 of
the Shares subject to the Option shall vest each month thereafter, subject to
the Optionee continuing to be an Employee or Consultant on such dates.

 

 

Termination Period:

 

This Option may be
exercised for three months after Optionee ceases to be an Employee or
Consultant.  Upon the death or Disability
of the Optionee, this Option may be exercised for twelve months after Optionee
ceases to be an Employee or Consultant. 
In no event shall this Option be exercised later than the
Term/Expiration Date as provided above.

 

II.            AGREEMENT

 

A.            Grant
of Option.  

 

The Plan Administrator of
the Company hereby grants to the Optionee named in the Notice of Grant attached
as Part I of this Agreement (the “Optionee”) an option (the “Option”) to
purchase the number of Shares, as set forth in the Notice of Grant, at the
exercise price per share set forth in the Notice of Grant (the “Exercise Price”),
subject to the terms and conditions of the Plan, which is incorporated herein
by reference.  Subject to Section 13 of
the Plan, in the event of a conflict between the terms and conditions of the
Plan and the terms and conditions of this Option Agreement, the terms and
conditions of the Plan shall prevail.

 

If designated in the
Notice of Grant as an Incentive Stock Option (“ISO”), this Option is intended
to qualify as an Incentive Stock Option under Section 422 of the
Code.  However, if this Option is
intended to be an Incentive Stock Option, to the extent that it exceeds the
$100,000 rule of Code Section 422(d) it shall be treated as a Nonstatutory
Stock Option (“NSO”).

 

B.            Exercise
of Option.

 

(a)           Right
to Exercise.  This Option is
exercisable during its term in accordance with the Vesting Schedule set out in
the Notice of Grant and the applicable provisions of the Plan and this Option
Agreement.

 

(b)           Method
of Exercise.  This Option is
exercisable by delivery of an exercise notice, in the form attached as Exhibit
A (the “Exercise Notice”), which shall state the election to exercise the
Option, the number of Shares in respect of which the Option is being exercised
(the “Exercised Shares”), and such other representations and agreements as may
be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice shall be completed by the
Optionee and delivered to the Stock Administrator  of
the Company.  The Exercise Notice shall
be accompanied by payment of the aggregate Exercise Price as to all Exercised
Shares.  This Option shall be deemed to
be exercised upon receipt by the Company of such fully executed Exercise Notice
accompanied by such aggregate Exercise Price.

 

No Shares shall be issued
pursuant to the exercise of this Option unless such issuance and exercise
complies with Applicable Laws.  Assuming
such compliance, for income tax purposes the Exercised Shares shall be
considered transferred to the Optionee on the date the Option is exercised with
respect to such Exercised Shares.

 

 

C.            Method
of Payment.

 

Payment of the aggregate
Exercise Price shall be by any of the following, or a combination thereof, at
the election of the Optionee:

1.           cash;
or

 

2.           check;
or

 

3.           consideration
received by the Company under a cashless exercise program implemented by the
Company in connection with the Plan; or

 

4.           surrender
of other Shares which (i) in the case of Shares acquired upon exercise of an
option, have been owned by the Optionee for more than six (6) months on the date
of surrender, and (ii) have a Fair Market Value on the date of surrender equal
to the aggregate Exercise Price of the Exercised Shares.

 

D.            Non-Transferability
of Option.

 

This Option may not be
transferred in any manner otherwise than by will or by the laws of descent or
distribution and may be exercised during the lifetime of Optionee only by the
Optionee.  The terms of the Plan and this
Option Agreement shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

 

E.             Term
of Option.

 

This Option may be
exercised only within the term set out in the Notice of Grant, and may be
exercised during such term only in accordance with the Plan and the terms of
this Option Agreement.

 

F.             Tax
Consequences.  

 

Some of the federal tax
consequences relating to this Option, as of the date of this Option, are set
forth below.  THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  THE OPTIONEE SHOULD CONSULT A TAX ADVISER
BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

 

G.            Exercising
the Option.

 

1.           Nonstatutory
Stock Option.  The Optionee may incur
regular federal income tax liability upon exercise of a NSO.  The Optionee will be treated as having
received compensation income (taxable at ordinary income tax rates) equal to
the excess, if any, of the Fair Market Value of the Exercised Shares on the
date of exercise over their aggregate Exercise Price.  If the Optionee is an Employee or a former
Employee, the Company will be required to withhold from his or her compensation
or collect from Optionee and pay to the applicable taxing authorities an amount
in cash equal to a percentage of this compensation income at the time of
exercise, and may refuse to honor the exercise and refuse to deliver Shares if
such withholding amounts are not delivered at the time of exercise.

 

 

2.           Incentive
Stock Option.  If this Option
qualifies as an ISO, the Optionee will have no regular federal income tax
liability upon its exercise, although the excess, if any, of the Fair Market
Value of the Exercised Shares on the date of exercise over their aggregate
Exercise Price will be treated as an adjustment to alternative minimum taxable
income for federal tax purposes and may subject the Optionee to alternative
minimum tax in the year of exercise.  In
the event that the Optionee ceases to be an Employee but remains a Service
Provider, any Incentive Stock Option of the Optionee that remains unexercised
shall cease to qualify as an Incentive Stock Option and will be treated for tax
purposes as a Nonstatutory Stock Option on the date three (3) months and one
(1) day following such change of status.

 

3.           Disposition
of Shares.

 

(a)           NSO.  If the Optionee holds NSO Shares for at least
one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.

 

(b)           ISO.  If the Optionee holds ISO Shares for at least
one year after exercise and two years after the grant date, any gain realized
on disposition of the Shares will be treated as long-term capital gain for
federal income tax purposes.  If the
Optionee disposes of ISO Shares within one year after exercise or two years
after the grant date, any gain realized on such disposition will be treated as
compensation income (taxable at ordinary income rates) to the extent of the
excess, if any, of the lesser of (A) the difference between the Fair Market
Value of the Shares acquired on the date of exercise and the aggregate Exercise
Price, or (B) the difference between the sale price of such Shares and the
aggregate Exercise Price.  Any additional
gain will be taxed as capital gain, short-term or long-term depending on the
period that the ISO Shares were held.

 

(c)           Notice
of Disqualifying Disposition of ISO Shares. 
If the Optionee sells or otherwise disposes of any of the Shares
acquired pursuant to an ISO on or before the later of (i) two years after
the grant date, or (ii) one year after the exercise date, the Optionee
shall immediately notify the Company in writing of such disposition.  The Optionee agrees that he or she may be
subject to income tax withholding by the Company on the compensation income
recognized from such early disposition of ISO Shares by payment in cash or out
of the current earnings paid to the Optionee.

 

H.            Entire
Agreement; Governing Law.

 

The Plan is incorporated
herein by reference.  The Plan and this
Option Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and Optionee with respect to the
subject matter hereof, and may not be modified adversely to the Optionee’s
interest except by means of a writing signed by the Company and Optionee.  This agreement is governed by the internal
substantive laws, but not the choice of law rules, of California.

 

I.              NO
GUARANTEE OF CONTINUED SERVICE.

 

OPTIONEE ACKNOWLEDGES AND
AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS
EARNED ONLY BY CONTINUING AS AN EMPLOYEE OR CONSULTANT AT THE WILL OF THE
COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR 

 

 

PURCHASING SHARES
HEREUNDER).  OPTIONEE FURTHER
ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN
EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE OR CONSULTANT
FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH
OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS
AN EMPLOYEE OR CONSULTANT AT ANY TIME, WITH OR WITHOUT CAUSE.

 

By your signature and the signature of the Company’s
representative below, you and the Company agree that this Option is granted
under and governed by the terms and conditions of the Plan and this Option
Agreement.  Optionee has reviewed the
Plan and this Option Agreement in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option Agreement and fully
understands all provisions of the Plan and Option Agreement.  Optionee hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon
any questions relating to the Plan and Option Agreement.  Optionee further agrees to notify the Company
upon any change in the residence address indicated below.

 

 

	
  OPTIONEE:

  	
   

  	
  INTRAWARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Residence Address

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

CONSENT
OF SPOUSE

 

 

The undersigned spouse of Optionee has read and hereby
approves the terms and conditions of the Plan and this Option Agreement (Grant
#         ).  In consideration of the Company’s granting
his or her spouse the right to purchase Shares as set forth in the Plan and
this Option Agreement, the undersigned hereby agrees to be irrevocably bound by
the terms and conditions of the Plan and this Option Agreement and further
agrees that any community property interest shall be similarly bound.  The undersigned hereby appoints the undersigned’s
spouse as attorney-in-fact for the undersigned with respect to any amendment or
exercise of rights under the Plan or this Option Agreement.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Spouse of Optionee

  	
   

  

 

 

EXHIBIT
A

 

INTRAWARE,
INC.

 

1996
STOCK OPTION PLAN

 

EXERCISE
NOTICE

 

Intraware, Inc.

25 Orinda Way

Orinda, California 94563

 

Attention:  Stock Administrator

 

 

1.             Exercise
of Option.  Effective as of today,                     ,
       , the undersigned (“Purchaser”)
hereby elects to purchase                     
shares (the “Shares”) of the Common Stock of Intraware, Inc. (the “Company”)
under and pursuant to the 1996 Stock Option Plan (the “Plan”) and the Stock
Option Agreement dated,         (the
“Option Agreement”).  The purchase price
for the Shares shall be $        , as
required by the Option Agreement.

 

2.             Delivery
of Payment.  Purchaser herewith
delivers to the Company the full purchase price for the Shares.

 

3.             Representations
of Purchaser.  Purchaser acknowledges
that Purchaser has received, read and understood the Plan and the Option
Agreement and agrees to abide by and be bound by their terms and conditions.

 

4.             Rights
as Shareholder.  Until the issuance
(as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the Shares, no right to vote or
receive dividends or any other rights as a shareholder shall exist with respect
to the Optioned Stock, notwithstanding the exercise of the Option.  The Shares so acquired shall be issued to the
Optionee as soon as practicable after exercise of the Option.  No adjustment will be made for a dividend or
other right for which the record date is prior to the date of issuance, except
as provided in Section 11 of the Plan.

 

5.             Tax
Consultation.  Purchaser understands
that Purchaser may suffer adverse tax consequences as a result of Purchaser’s
purchase or disposition of the Shares. 
Purchaser represents that Purchaser has consulted with any tax
consultants Purchaser deems advisable in connection with the purchase or disposition
of the Shares and that Purchaser is not relying on the Company for any tax
advice.

 

 

6.             Entire
Agreement; Governing Law.  The Plan
and Option Agreement are incorporated herein by reference.  This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and Purchaser with respect to the subject matter
hereof, and may not be modified adversely to the Purchaser’s interest except by
means of a writing signed by the Company and Purchaser.  This agreement is governed by the internal
substantive laws, but not the choice of law rules, of California.

 

	
  Submitted by:

  	
   

  	
  Accepted by:

  
	
   

  	
   

  	
   

  
	
  PURCHASER:

  	
   

  	
  INTRAWARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Stock Administrator

  
	
  Print Name

  	
   

  	
  Its

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Intraware, Inc.

  
	
   

  	
   

  	
  25 Orinda Way

  
	
   

  	
   

  	
  Orinda, California
  94563

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date ReceivedExhibit 10.4

 

INTRAWARE, INC.

 

DIRECTOR OPTION AGREEMENT

 

 

Intraware, Inc., (the “Company”), has granted to                                                  
(the “Optionee”), an option to purchase a total of fifteen thousand (15,000)
shares of the Company’s Common Stock (the “Optioned Stock”), at the price
determined as provided herein, and in all respects subject to the terms,
definitions and provisions of the Company’s 1998 Director Option Plan (the “Plan”)
adopted by the Company which is incorporated herein by reference.  The terms defined in the Plan shall have the
same defined meanings herein.

 

1.             Nature
of the Option.  This Option is a
nonstatutory option and is not intended to qualify for any special tax benefits
to the Optionee.

 

2.             Exercise
Price.  The exercise price is
$          for each share of
Common Stock.

 

3.             Exercise
of Option.  This Option shall be
exercisable during its term in accordance with the provisions of Section 8
of the Plan as follows:

 

(a)           Right
to Exercise.

 

(i)            This
Option shall become exercisable in installments cumulatively with respect to
one eighth (1/8) of the Optioned Stock six months after the date of grant, and
as to an additional one forty-eighth (1/48) of the Optioned Stock at the end of
each month thereafter, so that one hundred percent (100%) of the Optioned Stock
shall be exercisable four (4) years after the date of grant.

 

(ii)           This
Option may not be exercised for a fraction of a share.

 

(iii)          In
the event of Optionee’s death, disability or other termination of service as a
Director, the exercisability of the Option is governed by Section 8 of the
Plan.

 

(b)           Method
of Exercise.  This Option shall be
exercisable by written notice which shall state the election to exercise the
Option and the number of Shares in respect of which the Option is being
exercised.  Such written notice, in the
form attached hereto as Exhibit A, shall be signed by the Optionee and
shall be delivered in person or by certified mail to the Secretary of the
Company.  The written notice shall be accompanied
by payment of the exercise price.

 

4.             Method
of Payment.  Payment of the exercise
price shall be by any of the following, or a combination thereof, at the
election of the Optionee:

 

(a)           cash;

 

 

(b)           check;
or

 

(c)           surrender
of other shares which (x) in the case of Shares acquired upon exercise of
an Option, have been owned by the Optionee for more than six (6) months on the
date of surrender, and (y) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised; or

 

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

 

5.             Restrictions
on Exercise.  This Option may not be
exercised if the issuance of such Shares upon such exercise or the method of
payment of consideration for such shares would constitute a violation of any
applicable federal or state securities or other law or regulations, or if such
issuance would not comply with the requirements of any stock exchange upon
which the Shares may then be listed.  As
a condition to the exercise of this Option, the Company may require Optionee to
make any representation and warranty to the Company as may be required by any
applicable law or regulation.

 

6.             Non-Transferability
of Option.  This Option may not be
transferred in any manner otherwise than by will or by the laws of descent or
distribution and may be exercised during the lifetime of Optionee only by the
Optionee.  The terms of this Option shall
be binding upon the executors, administrators, heirs, successors and assigns of
the Optionee.

 

7.             Term
of Option.  This Option may not be
exercised more than ten (10) years from the date of grant of this Option, and
may be exercised during such period only in accordance with the Plan and the
terms of this Option.

 

 

8.             Taxation
Upon Exercise of Option.  Optionee
understands that, upon exercise of this Option, he or she will recognize income
for tax purposes in an amount equal to the excess of the then Fair Market Value
of the Shares purchased over the exercise price paid for such Shares.  Since the Optionee is subject to Section
16(b) of the Securities Exchange Act of 1934, as amended, under certain limited
circumstances the measurement and timing of such income (and the commencement
of any capital gain holding period) may be deferred, and the Optionee is
advised to contact a tax advisor concerning the application of Section 83 in
general and the availability a Section 83(b) election in particular in
connection with the exercise of the Option. 
Upon a resale of such Shares by the Optionee, any difference between the
sale price and the Fair Market Value of the Shares on the date of exercise of
the Option, to the extent not included in income as described above, will be
treated as capital gain or loss.

 

INTRAWARE GRANT NO.:

 

DATE OF GRANT: 

 

	
   

  	
  INTRAWARE, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

 

Optionee
acknowledges receipt of a copy of the Plan, a copy of which is attached hereto,
and represents that he or she is familiar with the terms and provisions
thereof, and hereby accepts this Option subject to all of the terms and
provisions thereof.  Optionee hereby
agrees to accept as binding, conclusive and final all decisions or
interpretations of the Board upon any questions arising under the Plan.

 

 

	
   

  	
  Dated: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Optionee

  	
   

  

 

 

EXHIBIT A

 

DIRECTOR
OPTION EXERCISE NOTICE

 

 

INTRAWARE, INC.

25 Orinda Way

Orinda, CA  94563

 

Attention:  Corporate Secretary

 

 

1.             Exercise
of Option.  The undersigned (“Optionee”)
hereby elects to exercise Optionee’s option to purchase           
shares of the Common Stock (the “Shares”) of Intraware, Inc. (the “Company”)
under and pursuant to the Company’s 1998 Director Option Plan and the Director
Option Agreement dated                         
(the “Agreement”).

 

2.             Representations
of Optionee.  Optionee acknowledges
that Optionee has received, read and understood the Agreement.

 

3.             Federal
Restrictions on Transfer.  Optionee
understands that the Shares must be held indefinitely unless they are
registered under the Securities Act of 1933, as amended (the “1933 Act”), or
unless an exemption from such registration is available, and that the
certificate(s) representing the Shares may bear a legend to that effect.  Optionee understands that the Company is
under no obligation to register the Shares and that an exemption may not be
available or may not permit Optionee to transfer Shares in the amounts or at
the times proposed by Optionee.

 

4.             Tax
Consequences.  Optionee understands
that Optionee may suffer adverse tax consequences as a result of Optionee’s
purchase or disposition of the Shares. 
Optionee represents that Optionee has consulted with any tax
consultant(s) Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

 

5.             Delivery
of Payment.  Optionee herewith
delivers to the Company the aggregate purchase price for the Shares that
Optionee has elected to purchase and has made provision for the payment of any
federal or state withholding taxes required to be paid or withheld by the
Company.

 

 

6.             Entire
Agreement.  The Agreement is
incorporated herein by reference.  This
Exercise Notice and the Agreement constitute the entire agreement of the
parties and supersede in their entirety all prior undertakings and agreements
of the Company and Optionee with respect to the subject matter hereof.  This Exercise Notice and the Agreement are
governed by California law except for that body of law pertaining to conflict
of laws.

 

	
  Submitted by:

  	
   

  	
  Accepted by:

  
	
   

  	
   

  	
   

  
	
  OPTIONEE:

  	
   

  	
  INTRAWARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Printed Name:

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Dated:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]