Document:

exv10w01

 

EXHIBIT 10.01

INTERWOVEN, INC.

INDEMNITY AGREEMENT

     This Indemnity Agreement (the “Agreement”), dated as of                      , is made by and between
Interwoven, Inc., a Delaware corporation (the “Company”), and                     
(the “Indemnitee”), who is an Indemnifiable Person, as defined in Section 1.6 of this Agreement.

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as representatives of corporations unless they are protected by comprehensive liability
insurance and/or indemnification, due to increased exposure to litigation costs and risks resulting
from their service to such corporations, and due to the fact that the exposure frequently bears no
relationship to the compensation of such representatives;

     B. The members of the Board of Directors of the Company (the “Board”), based on their
experience as business managers, have concluded that to retain and attract talented and experienced
individuals to serve as representatives of the Company, and to encourage such individuals to take
the business risks necessary for the success of the Company, it is necessary for the Company to
contractually indemnify them, and to assume for itself maximum liability for Expenses and Other
Liabilities in connection with claims against such representatives in connection with their service
to the Company;

     C. Section 145 of the Delaware General Corporation Law, under which the Company is organized
(“Section 145” of the “Delaware Law”), empowers the Company to indemnify by agreement its officers,
directors, employees and agents, and persons who serve, at the request of the Company, as
directors, officers, employees or agents of other corporations, partnerships, joint ventures,
trusts or other enterprises, and expressly provides that the indemnification provided by Section
145 is not exclusive; and

     D. The Company desires and has requested that Indemnitee serve or continue to serve as a
representative of the Company free from undue concern for claims for damages arising out of or
related to Indemnitee’s services to the Company.

AGREEMENT

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions. For purposes of this Agreement, the following terms have the meanings
as set forth below:

          1.1 An “Affiliate” of the Company is any corporation, partnership, limited liability company,
joint venture, trust or other enterprise for which Indemnitee is, was or will be
serving as a director, officer, trustee, manager, member, partner, employee, agent, attorney,

 

 

consultant, fiduciary, or in any other similar capacity at the request, election or direction of
the Company, and including, but not limited to, any employee benefit plan of the Company.

          1.2 A “Change in Control” means the earliest to occur after the date of the Agreement of any
of the following events:

               (a) Acquisition of Stock by Third Party. Any “person” (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than a
Subsidiary or a trustee or other fiduciary holding securities under an employee benefit plan of the
Company or Subsidiary, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said
Act), directly or indirectly, of securities of the Company representing 20% or more of the total
voting power represented by the Company’s then-outstanding capital stock;

               (b) Change in Board of Directors. During any period of two consecutive years,
individuals who at the beginning of such period constitute the Board and any new director whose
election by the Board or nomination for election by the Company’s stockholders was approved by a
vote of at least two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority thereof;

               (c) Corporate Transactions. The stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or consolidation that
would result in the outstanding capital stock of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into capital stock
of the surviving entity) at least 80% of the total voting power represented by the capital stock of
the Company or such surviving entity outstanding immediately after such merger or consolidation; or

               (d) Liquidation. The stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the Company (in one
transaction or a series of transactions) of all or substantially all of the Company’s assets.

          1.3 References to the “Company” in the context of Indemnitee’s service to, for or on behalf of
the Company, shall include any Subsidiary and/or Affiliate of the Company for which Indemnitee
serves as an Indemnifiable Person; in addition, the term “Company” includes, in the event of a
Change in Control, (i) the resulting corporation, and (ii) any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its directors, officers
and employees or agents, so that if Indemnitee is or was a director, officer, employee or agent of
such constituent corporation, or is or was serving at the request of such constituent corporation
as a director, officer, employee or agent of another corporation, partnership, joint venture trust
or other enterprise, Indemnitee shall stand in the same position under the provisions of this
Agreement with respect to the resulting or surviving corporation as Indemnitee would have with
respect to such constituent corporation if its separate existence had continued.

          1.4 “Expenses” includes all direct and indirect costs of any type or nature whatsoever
(including, without limitation, all attorneys’ fees and related disbursements, and

2

 

other out-of-pocket costs), paid or incurred by Indemnitee in connection with either the investigation,
defense or appeal of, or being a witness in a Proceeding, or establishing or enforcing a right to
indemnification under this Agreement, Section 145 or otherwise; provided, however, that Expenses
shall not include any judgments, fines, ERISA excise taxes or penalties or amounts paid in
settlement of a Proceeding.

          1.5 An “Indemnifiable Event” is any event or occurrence related to Indemnitee’s service for
the Company as an Indemnifiable Person, or by reason of anything done or not done, or any act or
omission, by Indemnitee in any such capacity.

          1.6 An “Indemnifiable Person” is any person who is or was a director, officer, employee,
attorney, trustee, manager, member, partner, consultant or other agent or fiduciary of the Company.

          1.7 “Independent Counsel” means legal counsel that has not performed services for the Company
or Indemnitee in the five years preceding the time in question and that would not, under applicable
standards of professional conduct, have a conflict of interest in representing either the Company
or Indemnitee.

          1.8 “Other Liabilities” means any and all liabilities of any type whatsoever, including, but
not limited to, judgments, fines, ERISA (or other benefit plan related) excise taxes or penalties,
and amounts paid in settlement and all interest, taxes, assessments and other charges paid or
payable in connection with or in respect of any such judgments, fines, ERISA (or other benefit
plan) related excise taxes or penalties, or amounts paid in settlement.

          1.9 A “Proceeding” includes any threatened, pending, or completed action, suit or other
proceeding, whether civil, criminal, administrative, investigative, legislative or any other type
whatsoever, formal or informal, including any arbitration or other alternative dispute resolution
and including any appeal of any of the foregoing.

          1.10 A “Subsidiary” of the Company is any corporation of which more than 50% of the
outstanding voting securities is owned directly by the Company.

     2. Agreement to Serve. Indemnitee agrees to serve and/or continue to serve the
Company as an Indemnifiable Person, in the capacity or capacities in which Indemnitee currently
serves as an Indemnifiable Person, and any additional capacity in which Indemnitee may agree to
serve, at the will of the Company (or under separate agreement, if such agreement exists),
faithfully and to the best of Indemnitee’s ability, until such time as Indemnitee’s service in a
particular capacity shall end according to the terms of an agreement, or in accordance with the
applicable provisions of the Company’s Certificate of Incorporation or Bylaws, governing law, or
otherwise; provided, however, that Indemnitee may at any time and for any reason resign from such
position (subject to any contractual obligation that Indemnitee may have assumed apart from this
Agreement) and that the Company shall have no obligation under this Agreement to continue to employ
Indemnitee in such capacity or capacities.

3

 

     3. Directors’ and Officers’ Insurance.

          3.1 Reasonable Efforts. So long as Indemnitee shall continue to serve the Company as
an Indemnifiable Person and thereafter so long as Indemnitee shall be subject to any possible claim
or threatened, pending or completed Proceeding as a result of an Indemnifiable Event, the Company
shall use reasonable efforts to maintain in full force and effect for the benefit of Indemnitee as
an insured (i) liability insurance issued by one or more reputable insurers and having the policy
amount and deductible deemed appropriate by the Board and providing in all respects coverage at
least comparable to and in the same amount as that being provided to the Chairman of the Board, the
Chief Executive Officer or Chief Financial Officer of the Company when such insurance is purchased,
and (ii) any replacement or substitute policies issued by one or more reputable insurers providing
in all respects coverage at least comparable to and in the same amount as that being provided to
the Chairman of the Board, the Chief Executive Officer or Chief Financial Officer of the Company
when such replacement or substitute policies are purchased (“D&O Insurance”). The purchase,
establishment and maintenance of any such insurance or other arrangements shall not in any way
limit or affect the rights and obligations of the Company or of Indemnitee under this Agreement
except as expressly provided herein, and the execution and delivery of this Agreement by the
Company and Indemnitee shall not in any way limit or affect the rights and obligations of the
Company or the other party or parties thereto under any such insurance or other arrangement.

          3.2 Good Faith Determination. Notwithstanding the foregoing, the Company shall have
no obligation to obtain or maintain D&O Insurance if the Company determines in good faith that such
insurance is not reasonably available, the premium costs for such insurance are disproportionate to
the amount of coverage provided, the coverage provided by such insurance is limited by exclusions
so as to provide an insufficient benefit, or Indemnitee is covered by similar insurance maintained
by a Subsidiary or Affiliate of the Company.

     4. Mandatory Indemnification.

          4.1 Agreement to Indemnify. In the event Indemnitee is a person who was or is a party
to or witness in or is threatened to be made a party to or witness in any Proceeding by reason of
an Indemnifiable Event, the Company shall indemnify Indemnitee from and against any and all
Expenses and Other Liabilities incurred by Indemnitee in connection with (including in preparation
for) such Proceeding to the fullest extent not prohibited by the provisions of the Company’s
Certificate of Incorporation, Bylaws and Delaware Law, as these may be amended from time to time,
but only to the extent that such amendments permit the Company to provide broader indemnification
rights than the Certificate of Incorporation, Bylaws or Delaware Law permitted prior to the
adoption of such amendment.

          4.2 Exception for Amounts Covered by Directors’ and Officers’ Insurance.
Notwithstanding the foregoing, the Company shall not be obligated to indemnify Indemnitee for
expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines,
ERISA excise taxes or penalties, and amounts paid in settlement) to the extent such have been paid
directly to Indemnitee by D&O Insurance.

          4.3 Change in Law. In the event of any change, after the date of this Agreement, in
any applicable law, statute or rule which expands the Company’s right, as a Delaware corporation,
to indemnify an Indemnifiable Person, such changes shall be, ipso facto, within the purview of
Indemnitee’s rights and Company’s obligations, under this Agreement. In

4

 

the event of any change in any applicable law, statute or rule which narrows the Company’s right, as a Delaware corporation,
to indemnify an Indemnifiable Person, such changes, to the extent required by such law, statute or
rule to be applied to this Agreement, shall have the effect on this Agreement and the parties’
rights and obligations hereunder as is required by such law, statute or rule.

     5. Partial Indemnification and Contribution.

          5.1 Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of any Expenses or Other
Liabilities but not entitled, however, to indemnification for the total amount of such Expenses or
Liabilities, the Company shall nevertheless indemnify Indemnitee for such total amount except as to
the portion thereof to which Indemnitee is not entitled by the provisions of the Company’s Bylaws
or Delaware Law. In any review or Proceeding to determine the extent of indemnification, the
Company shall bear the burden to establish, by clear and convincing evidence, the lack of a
successful resolution of a particular claim, issue or matter and which amounts sought in indemnity
are allocable to claims, issues or matters which were not successfully resolved.

          5.2 Contribution. If the Indemnitee is not entitled to the indemnification provided
in Section 4 for any reason other than the statutory limitations set forth in Delaware Law, then in
respect of any threatened, pending or completed proceeding in which the Company is jointly liable
with the Indemnitee (or would be if joined in such proceeding), the Company shall contribute to the
amount of expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred and paid or payable by the Indemnitee in such proportion as is
appropriate to reflect (i) the relative benefits received by the Company on the one hand and the
Indemnitee on the other hand from the transaction from which such proceeding arose and (ii) the
relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection
with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as
any other relevant equitable considerations. The relative fault of the Company on the one hand and
of the Indemnitee on the other hand shall be determined by reference to, among other things, the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
the circumstances resulting in such expenses, judgments, fines or settlement amounts. The Company
agrees that it would not be just and equitable if contribution pursuant to this Section 5 were
determined by pro rata allocation or any other method of allocation that does not take account of
the foregoing equitable considerations.

     6. Mandatory Advancement of Expenses. If requested by Indemnitee, the Company shall
advance all Expenses reasonably incurred by Indemnitee in connection with (including in preparation
for) a Proceeding to which Indemnitee is a party or is threatened to be made a party by reason of
the fact that Indemnitee is or was an Indemnifiable Person or by reason of anything done or not
done by him in any such capacity. Indemnitee hereby undertakes to
repay such amounts advanced if, and only if and to the extent that, it shall ultimately be
determined that Indemnitee is not entitled to be indemnified by the Company under the provisions of
this Agreement, the Company’s Certificate of Incorporation or Bylaws, Delaware Law or otherwise.
The advances to be made hereunder shall be paid by the Company to Indemnitee within thirty (30)
days following delivery of a written request therefor by Indemnitee

5

 

to the Company. Indemnitee’s
undertaking to repay any Expenses advanced to Indemnitee hereunder shall be unsecured and shall not
be subject to the accrual or payment of any interest thereon.

     7. Notice and Other Indemnification Procedures.

          7.1 Notification. Promptly following the time that Indemnitee has notice of the
commencement of or the threat of commencement of any Proceeding, Indemnitee shall, if Indemnitee
believes that indemnification or advancement of Expenses may be sought from the Company under this
Agreement with respect to such Proceeding, notify the Company of the commencement or threat of
commencement thereof. However, a failure to so notify the Company promptly following Indemnitee’s
receipt of such notice shall not relieve the Company from any liability that it may have to
Indemnitee except to the extent that the Company is materially prejudiced in its defense of such
Proceeding as a result of such failure.

          7.2 Insurance and Other Matters. If the Company has D&O Insurance in effect at the
time a notice of the commencement of a Proceeding pursuant to Section 7.1 hereof is received, the
Company shall give prompt notice of the commencement of such Proceeding to the insurers in
accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all reasonable action to cause such insurers to pay, on behalf of Indemnitee, all amounts
payable as a result of such proceeding in accordance with the terms of such insurance policies.

          7.3 Assumption of Defense. In the event the Company shall be obligated to advance the
Expenses for any Proceeding against Indemnitee, the Company shall be entitled to assume the defense
of such Proceeding upon delivery of written notice to Indemnitee of its election to assume the
defense of such Proceeding, and upon Indemnitee’s approval of counsel designated by the Company
(which approval shall not be unreasonably withheld) and retention of such counsel by the Company.
Following delivery of such written notice, approval of such counsel by Indemnitee and the retention
of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement
for any fees and expenses of counsel subsequently incurred by Indemnitee with respect to the same
Proceeding; provided that (i) Indemnitee shall have the right to employ his own counsel in any such
Proceeding at Indemnitee’s expense; (ii) Indemnitee shall have the right to employ his own counsel
in connection with any such Proceeding, at the expense of the Company, if such counsel serves in a
review, observer, advice and counseling capacity and does not otherwise materially control or
participate in the defense of such Proceeding; and (iii) if (x) the employment of counsel by
Indemnitee has been previously authorized by the Company, (y) Indemnitee shall have reasonably
concluded that there may be a conflict of interest between the Company and Indemnitee in the
conduct of any such defense and have notified the Board in writing of such conflict, or (z) the
Company fails to employ counsel to assume the defense of such Proceeding, then the fees and
expenses of Indemnitee’s counsel shall be subject to indemnification and/or advancement pursuant to
the terms of this Agreement.

          7.4 Settlement. The Company shall not be liable to indemnify Indemnitee under this
Agreement or otherwise for any amounts paid in settlement of any Proceeding effected without the
Company’s written consent. Neither the Company nor any Subsidiary or Affiliate of the Company
shall enter into a settlement of any Proceeding that might result in the imposition of any Expense,
Other Liability, penalty, limitation or detriment on Indemnitee,

6

 

whether indemnifiable under this
Agreement or otherwise, without Indemnitee’s written consent. Neither the Company nor Indemnitee
shall unreasonably withhold consent from any settlement of any Proceeding.

     8. Determination of Right to Indemnification.

          8.1 Success on the Merits or Otherwise. To the extent Indemnitee has been successful
on the merits or otherwise in defense of any Proceeding referred to in Section 4.1 of this
Agreement or in the defense of any claim, issue or matter described therein, the Company shall
indemnify Indemnitee against Expenses actually and reasonably incurred by him in connection with
the investigation, defense or appeal of such proceeding, or such claim, issue or matter, as the
case may be.

          8.2 Indemnification in Other Situations. In the event that Section 8.1 above is
inapplicable, or does not apply to the entire proceeding, the Company shall nonetheless indemnify
Indemnitee unless the Company shall prove by clear and convincing evidence to a forum listed in
Section 8.3 below that Indemnitee has not met the applicable standard of conduct required to
entitle Indemnitee to such indemnification.

          8.3 Forum. Indemnitee shall be entitled to select the forum in which the validity of
the Company’s claim under Section 8.2 hereof that Indemnitee is not entitled to indemnification
will be heard from among the following:

               (a) A quorum of the Board consisting of directors who are not parties to the Proceeding for
which indemnification is being sought;

               (b) A panel of three arbitrators, one of whom is selected by the Company, another of whom is
selected by Indemnitee, and the last of whom is selected by the first two arbitrators so selected;
or

               (c) Independent Counsel selected by Indemnitee, and approved by the Board, which approval may
not be unreasonably withheld, which counsel shall make such determination in a written opinion.

               The selected forum shall be referred to herein as the “Reviewing Party”. Notwithstanding the
foregoing, following any Change in Control, the Reviewing Party shall be Independent Counsel
selected in the manner provided in (c) above.

          8.4 Submission of Information to the Reviewing Party. As soon as practicable, and in
no event later than thirty (30) days after receipt by the Company of written notice of Indemnitee’s
choice of forum pursuant to Section 8.3 above, the Company and Indemnitee shall each submit to the
Reviewing Party such information as they believe is appropriate for the Reviewing Party to
consider. The Reviewing Party shall arrive at its decision
within a reasonable period of time following the receipt of all such information from the
Company and Indemnitee but in no even later than thirty (30) days following the receipt of all such
information, provided that the time by which the Reviewing Party must reach a decision may be
extended by mutual agreement of the Company and Indemnitee. All expenses associated

7

 

with the
process set forth in this Section 8.4, including but not limited to the Expenses of the Reviewing
Party, shall be paid by the Company.

          8.5 Delaware Court of Chancery. If the forum listed in Section 8.3 hereof selected by
Indemnitee determines that Indemnitee is entitled to indemnification with respect to a Proceeding,
such determination shall be final and binding on the Company. If the forum listed in Section 8.3
hereof selected by Indemnitee determines that Indemnitee is not entitled to indemnification with
respect to a specific proceeding, Indemnitee shall have the right to apply to the Delaware Court of
Chancery, the court in which that proceeding is or was pending or any other court of competent
jurisdiction, for the purpose of determining whether Indemnitee is entitled to indemnification and
enforcing Indemnitee’s right to indemnification pursuant to the Agreement.

          8.6 Expenses. Notwithstanding any other provision in this Agreement to the contrary,
the Company shall indemnify Indemnitee against all Expenses incurred by Indemnitee in connection
with any hearing or Proceeding under this Section 8 involving Indemnitee and against all Expenses
and Other Liabilities incurred by Indemnitee in connection with any other Proceeding between the
Company and Indemnitee involving the interpretation or enforcement of the rights of Indemnitee
under this Agreement unless a court of competent jurisdiction finds that each of the material
claims and/or defenses of Indemnitee in any such Proceeding was frivolous or made in bad faith.

          8.7 Determination of Good Faith. For purposes of any determination of whether
Indemnitee acted in “good faith,” Indemnitee shall be deemed to have acted in good faith if in
taking or failing to take the action in question Indemnitee relied on the records or books of
account of the Company or a Subsidiary or Affiliate of the Company, including financial statements,
or on information, opinions, reports or statements provided to Indemnitee by the officers or other
employees of the Company or a Subsidiary or Affiliate of the Company in the course of their duties,
or on the advice of legal counsel for the Company or a Subsidiary or Affiliate of the Company, or
on information or records given or reports made to the Company or a Subsidiary or Affiliate of the
Company by an independent certified public accountant or by an appraiser or other expert selected
by the Company or a Subsidiary or Affiliate of the Company, or by any other person (including legal
counsel, accountants and financial advisors) as to matters Indemnitee reasonably believes are
within such other person’s professional or expert competence and who has been selected with
reasonable care by or on behalf of the Company. In connection with any determination as to whether
Indemnitee is entitled to be indemnified hereunder, or to advancement of Expenses, the Reviewing
Party or court shall presume that Indemnitee has satisfied the applicable standard of conduct and
is entitled to indemnification or advancement of Expenses, as the case may be, and the burden of
proof shall be on the Company to establish, by clear and convincing evidence, that Indemnitee is
not so entitled. The provisions of this Section 8.7 shall not be deemed to be exclusive or to
limit in any way the other circumstances in which Indemnitee may be deemed to have met the
applicable standard of conduct set forth in this Agreement. In addition, the knowledge and/or
actions, or failures to act, of any other person
serving the Company or a Subsidiary or Affiliate of the Company as an Indemnifiable Person
shall not be imputed to Indemnitee for purposes of determining the right to indemnification
hereunder.

8

 

     9. Exceptions. Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement:

          9.1 Claims Initiated by Indemnitee. To indemnify or advance Expenses to Indemnitee
with respect to Proceedings or claims initiated or brought voluntarily by Indemnitee and not by way
of defense, except with respect to Proceedings (a) specifically authorized by the Board, (b)
brought to establish or enforce a right to indemnification and/or advancement of Expenses under
this Agreement, the Company’s Certificate of Incorporation or Bylaws, or any statute or law or
otherwise, or (c) to discharge Indemnitee’s fiduciary responsibilities, whether under ERISA or
otherwise, but such indemnification or advancement of Expenses may be provided by the Company in
specific cases if the Board finds it to be appropriate; or

          9.2 Unauthorized Settlements. To indemnify Indemnitee hereunder for any amounts paid
in settlement of a Proceeding unless the Company consents in advance in writing to such settlement,
which consent shall not be unreasonably withheld;

          9.3 Section 16(b) Actions. To indemnify Indemnitee on account of any suit in which
judgment is rendered against Indemnitee for an accounting of profits made from the purchase or sale
by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the
Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state
or local statutory law; or

          9.4 Unlawful Indemnification. To indemnify Indemnitee for Other Liabilities if a
final decision by a court having jurisdiction in the matter shall determine that such
indemnification is not lawful or if such indemnification is otherwise prohibited by law. In this
respect, the Company and Indemnitee have been advised that the Securities and Exchange Commission
takes the position that indemnification for liabilities arising under the federal securities law is
against public policy and is, therefore, unenforceable and that claims for indemnification should
be submitted to appropriate courts for adjudication.

     10. Non-exclusivity. The provisions for indemnification and advancement of Expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee may
have under any provision of law, the Company’s Certificate of Incorporation or Bylaws, the vote of
the Company’s stockholders or disinterested directors, other agreements, or otherwise, both as to
acts or omissions in Indemnitee’s official capacity and as to acts or omissions in another capacity
while serving the Company as an Indemnifiable Person, and Indemnitee’s rights hereunder shall
continue after Indemnitee has ceased serving the Company as an Indemnifiable Person and shall inure
to the benefit of the heirs, executors and administrators of Indemnitee.

     11. General Provisions.

          11.1 Interpretation of Agreement. It is understood that the parties hereto intend
this Agreement to be interpreted and enforced so as to provide indemnification and advancement
of Expenses to Indemnitee to the fullest extent now or hereafter permitted by law, except as
expressly limited herein.

9

 

          11.2 Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (a) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (b) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraphs of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 11.1 hereof.

          11.3 Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

          11.4 Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be necessary or desirable to secure
such rights and to enable the Company effectively to bring suit to enforce such rights.

          11.5 Successors and Assigns. The terms of this Agreement shall bind, and shall inure
to the benefit of, the successors and assigns of the parties hereto.

          11.6 Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given if (a) delivered by hand and a receipt
is provided by the party to whom such communication is delivered, (b) mailed by certified or
registered mail with postage prepaid, return receipt requested, on the signing by the recipient of
an acknowledgement of receipt form accompanying delivery through the U.S. mail, (c) by personal
service by a process server, (d) delivered to the recipient’s address by overnight delivery (e.g.,
FedEx, UPS or DHL) or other commercial delivery service, (e) delivered by facsimile or (f)
delivered electronically by email. Addresses for notice to either party are as shown on the
signature page of this Agreement, or as subsequently modified by written notice complying with the
provisions of this Section 11.5. Delivery of communications to the Company with respect to this
Agreement shall be sent to the attention of the Company’s General Counsel.

          11.7 No Presumptions. For purposes of this Agreement, the termination of any
Proceeding, by judgment, order, settlement (whether with or without court approval) or conviction,
or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption
that Indemnitee did not meet any particular standard of conduct or have any particular belief or
that a court has determined that indemnification is not permitted by applicable law or otherwise.
In addition, neither the failure of the Company nor of a Reviewing Party to
have made a determination as to whether Indemnitee has met any particular standard of conduct
or had any particular belief, nor an actual determination by the Company, or a Reviewing Party that
Indemnitee has not met such standard of conduct or did not have such

10

 

belief, prior to the
commencement of Proceedings by Indemnitee to secure a judicial determination by exercising
Indemnitee’s rights under Section 8.5 of this Agreement shall be a defense to Indemnitee’s claim or
create a presumption that Indemnitee has failed to meet any particular standard of conduct or did
not have any particular belief or is not entitled to indemnification under applicable law or
otherwise.

          11.8 Survival of Rights. The rights conferred on Indemnitee by this Agreement shall
continue after Indemnitee has ceased to serve the Company as an Indemnifiable Person and shall
inure to the benefit of Indemnitee’s heirs, executors and administrators.

          11.9 Specific Performance, Etc. The parties recognize that if any provision of this
Agreement is violated by the Company, Indemnitee may be without an adequate remedy at law.
Accordingly, in the event of any such violation, Indemnitee shall be entitled, if Indemnitee so
elects, to institute Proceedings, either in law or at equity, to obtain damages, to enforce
specific performance, to enjoin such violation, or to obtain any relief or any combination of the
foregoing as Indemnitee may elect to pursue.

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

          11.11 Headings. The headings of the sections and paragraphs of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this Agreement or to
affect the construction or interpretation thereof.

          11.12 Governing Law. This Agreement shall be governed exclusively by and construed
according to the laws of the State of Delaware, as applied to contracts between Delaware residents
entered into and to be performed entirely with Delaware.

          11.13 Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or proceeding which arises out of or relates to this Agreement.

[Remainder of Page Intentionally Left Blank]

11

 

     The parties hereto have entered into this Indemnity Agreement effective as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	 	 	INTERWOVEN, INC.
	 	 	Address:	 	160 East Tasman Drive

San Jose, CA 95134
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	INDEMNITEE:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

[Signature Page to Interwoven, Inc. Indemnity Agreement]exv10w06

 

EXHIBIT 10.06

INTERWOVEN, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

As Adopted July 22, 1999

Amended September 20, 1999, and September 15, 2005 and adjusted January 1, 2000,

July 13, 2000, December 29, 2000, January 1, 2001, January 1, 2002, January 1, 2003,

November 13, 2003, January 1, 2004, January 1, 2005, January 1, 2006 and January 1, 2007

     1. Establishment of Plan. Interwoven, Inc. (the “Company”) proposes to grant options for
purchase of the Company’s Common Stock to eligible employees of the Company and its Participating
Subsidiaries (as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this “Plan”).
For purposes of this Plan, “Parent Corporation” and “Subsidiary” shall have the same meanings as
“parent corporation” and “subsidiary corporation” in Sections 424(e) and 424(f), respectively, of
the Internal Revenue Code of 1986, as amended (the “Code”). “Participating Subsidiaries” are Parent
Corporations or Subsidiaries that the Board of Directors of the Company (the “Board”) designates
from time to time as corporations that shall participate in this Plan. The Company intends this
Plan to qualify as an “employee stock purchase plan” under Section 423 of the Code (including any
amendments to or replacements of such Section), and this Plan shall be so construed. Any term not
expressly defined in this Plan but defined for purposes of Section 423 of the Code shall have the
same definition herein. A total of 2,680,7341 shares of the Company’s Common Stock is
reserved for issuance under this Plan. In addition, on each January 1, the aggregate number of
shares of the Company’s Common Stock reserved for issuance under the Plan shall be increased
automatically by a number of shares equal to 1% of the total number of outstanding shares of the
Company Common Stock on the immediately preceding December 31;
provided that the aggregate number
of shares issued over the term of this Plan shall not exceed 3,000,0002 shares. Such
number shall be subject to adjustments effected in accordance with Section 14 of this Plan.

 

			
	1	 	Adjusted to reflect (1) the automatic authorization of 228,864 additional shares of
Common Stock for issuance under this Plan pursuant to Section 1 of this Plan in January 2000
(based upon 22,886,494 shares of Common Stock issued and outstanding as of December 31, 1999);
(2) the 2-for-1 split of the Company’s Common Stock, paid in the form of a dividend, effected
in July 2000 with respect to stockholders of record on June 22, 2000; (3) the 2-for-1 split of
the Company’s Common Stock, paid in the form of a dividend, effected in December 2000 with
respect to stockholders of record on December 13, 2000; (4) the automatic authorization of
1,021,711 additional shares of Common Stock for issuance under this Plan pursuant to Section 1
of this Plan in January 2001 (based upon 102,171,132 shares of Common Stock issued and
outstanding as of December 31, 2000); (5) the automatic authorization of 1,044,744 additional
shares of Common Stock for issuance under this Plan pursuant to Section 1 of this Plan in
January 2002 (based upon 104,474,483 shares of Common Stock issued and outstanding as of
December 31, 2001); (6) the automatic authorization of 1,025,362 additional shares of Common
Stock for issuance under this Plan pursuant to Section 1 of this Plan in January 2003 (based
upon 102,536,200 shares of Common Stock issued and outstanding as of December 31, 2002); (7)
the 1-for-4 reverse split of the Company’s Common Stock, effected November 18, 2003; (8) the
automatic authorization of 400,076 additional shares of Common Stock for issuance under this
Plan pursuant to Section 1 of this Plan in January 2004 (based upon 40,007,621 shares of
Common Stock issued and outstanding as of December 31, 2003); (9) the automatic authorization
of 410,867 additional shares of Common Stock for issuance under this Plan pursuant to Section
1 of this Plan in January 2005 (based upon 41,087,000 shares of Common Stock issued and
outstanding as of December 31, 2004); (10) the automatic authorization of 423,864 additional
shares of Common Stock for issuance under this Plan pursuant to Section 1 of this Plan in
January 2006 (based upon 42,386,485 shares of Common Stock issued and outstanding as of
December 31, 2005); and (11) the automatic authorization of 444,166 additional shares of
Common Stock for issuance under this Plan pursuant to Section 1 of this Plan in January 2007
(based upon 44,416,650 shares of Common Stock issued and outstanding as of December 31, 2006).
	 
	2	 	Adjusted to account for (1) the 2-for-1 split of the Company’s Common Stock, paid in the
form of a dividend, effected in July 2000 with respect to stockholders of record on June
22, 2000; (2) the 2-for-1 split of the Company’s Common Stock, paid in the form of a
dividend, effected in December 2000
with

 

 

Interwoven,
Inc. 
1999
Employee Stock Purchase Plan

     2. Purpose. The purpose of this Plan is to provide eligible employees of the Company and
Participating Subsidiaries with a convenient means of acquiring an equity interest in the Company
through payroll deductions, to enhance such employees’ sense of participation in the affairs of the
Company and Participating Subsidiaries, and to provide an incentive for continued employment.

     3. Administration. This Plan shall be administered by the Compensation Committee of the Board
(the “Committee”). Subject to the provisions of this Plan and the limitations of Section 423 of the
Code or any successor provision in the Code, all questions of interpretation or application of this
Plan shall be determined by the Committee and its decisions shall be final and binding upon all
participants. Members of the Committee shall receive no compensation for their services in
connection with the administration of this Plan, other than standard fees as established from time
to time by the Board for services rendered by Board members serving on Board committees. All
expenses incurred in connection with the administration of this Plan shall be paid by the Company.

     4. Eligibility. Any employee of the Company or the Participating Subsidiaries is eligible to
participate in an Offering Period (as hereinafter defined) under this Plan except the following:

          (a) employees who are not employed by the Company or a Participating Subsidiary (10) days
before the beginning of such Offering Period, except that employees who are employed on the
Effective Date of the Registration Statement filed by the Company with the Securities and Exchange
Commission (“SEC”) under the Securities Act of 1933, as amended (the “Securities Act”) registering
the initial public offering of the Company’s Common Stock shall be eligible to participate in the
first Offering Period under the Plan;

          (b) employees who are customarily employed for twenty (20) hours or less per week;

          (c) employees who are customarily employed for five (5) months or less in a calendar year;

          (d) employees who, together with any other person whose stock would be attributed to such employee
pursuant to Section 424(d) of the Code, own stock or hold options to purchase stock possessing five
percent (5%) or more of the total combined voting power or value of all classes of stock of the
Company or any of its Participating Subsidiaries or who, as a result of being granted an option
under this Plan with respect to such Offering Period, would own stock or hold options to purchase
stock possessing five percent (5%) or more of the total combined voting power or value of all
classes of stock of the Company or any of its Participating Subsidiaries; and

          (e) individuals who provide services to the Company or any of its Participating Subsidiaries
as independent contractors who are reclassified as common law employees for any reason except for
federal income and employment tax purposes.

     5. Offering Dates. The offering periods of this Plan (each, an “Offering Period”) shall be
of six (6) months duration commencing on May 1 and November 1 of each year and ending on April 30
and October 31 of each year. Each Offering Period shall consist of one (1) six month purchase
period (a “Purchase Period”) during which payroll deductions of the participants are accumulated
under this Plan. Any Offering Period that began prior to October 31, 2005 shall end on October 31,
2005. The first business day of each Offering Period is referred to as the “Offering Date”. The
last business day of each Purchase Period is referred to as the “Purchase Date”. The Committee
shall have the power to change the duration of Offering Periods with respect to offerings without
stockholder approval if such change is announced at least fifteen (15) days prior to the scheduled
beginning of the first Offering Period to be affected.

     6. Participation in this Plan. Eligible employees may become participants in an Offering
Period under this Plan on the first Offering Date after satisfying the eligibility requirements by
delivering a subscription
agreement to the Company’s treasury department (the “Treasury Department”) not later than five (5)
days before such

 

respect to stockholders of record on December 13, 2000; and (3) the 1-for-4 reverse
stock split of the Company’s Common Stock effected in November 2003 with respect to
stockholders of record on November 18, 2003.

2

 

Interwoven,
Inc. 
1999
Employee Stock Purchase Plan

Offering Date. Notwithstanding the foregoing, the Committee may set a later time for filing the
subscription agreement authorizing payroll deductions for all eligible employees with respect to a
given Offering Period. An eligible employee who does not deliver a subscription agreement to the
Treasury Department by such date after becoming eligible to participate in such Offering Period
shall not participate in that Offering Period or any subsequent Offering Period unless such
employee enrolls in this Plan by filing a subscription agreement with the Treasury Department not
later than five (5) days preceding a subsequent Offering Date. Once an employee becomes a
participant in an Offering Period, such employee will automatically participate in the Offering
Period commencing immediately following the last day of the prior Offering Period unless the
employee withdraws or is deemed to withdraw from this Plan or terminates further participation in
the Offering Period as set forth in Section 11 below. Such participant is not required to file any
additional subscription agreement in order to continue participation in this Plan.

     7. Grant of Option on Enrollment. Enrollment by an eligible employee in this Plan with respect
to an Offering Period will constitute the grant (as of the Offering Date) by the Company to such
employee of an option to purchase on the Purchase Date up to that number of shares of Common Stock
of the Company determined by dividing (a) the amount accumulated in such employee’s payroll
deduction account during such Purchase Period by (b) the lower of (i) eighty-five percent (85%) of
the fair market value of a share of the Company’s Common Stock on the Offering Date (but in no
event less than the par value of a share of the Company’s Common Stock), or (ii) eighty-five
percent (85%) of the fair market value of a share of the Company’s Common Stock on the Purchase
Date (but in no event less than the par value of a share of the Company’s Common Stock), provided,
however, that the number of shares of the Company’s Common Stock subject to any option granted
pursuant to this Plan shall not exceed the lesser of (x) the maximum number of shares set by the
Committee pursuant to Section 10(c) below with respect to the applicable Purchase Date, or (y) the
maximum number of shares which may be purchased pursuant to Section 10(b) below with respect to the
applicable Purchase Date. The fair market value of a share of the Company’s Common Stock shall be
determined as provided in Section 8 below.

     8. Purchase Price. The purchase price per share at which a share of Common Stock will be sold
in any Offering Period shall be eighty-five percent (85%) of the lesser of:

          (a) The fair market value on the Offering Date; or

          (b) The fair market value on the Purchase Date.

          For purposes of this Plan, the term “Fair Market Value” means, as of any Purchase Date, the
value of a share of the Company’s Common Stock determined as follows:

	 	(a)	 	if such Common Stock is then quoted on the Nasdaq National Market, its closing price on the
Nasdaq National Market on the Purchase Date as reported in The Wall Street Journal;
	 
	 	(b)	 	if such Common Stock is publicly traded and is then listed on a national
securities exchange, its closing price on the Purchase Date on the principal national
securities exchange on which the Common Stock is listed or admitted to trading as
reported in The Wall Street Journal; or
	 
	 	(c)	 	if such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor
listed or admitted to trading on a national securities exchange, the average of the closing bid and
asked prices on the Purchase Date as reported in The Wall Street Journal.

          For purposes of this Plan, the term “Fair Market Value” means, as of any Offering Date, the
value of a share of the Company’s Common Stock determined as follows:

	 	(a)	 	if such Common Stock is then quoted on the Nasdaq National Market, its closing price on
the Nasdaq National Market on the business day immediately prior to the Offering Date as reported
in The Wall Street Journal;

3

 

Interwoven,
Inc. 
1999
Employee Stock Purchase Plan

	 	(b)	 	if such Common Stock is publicly traded and is then listed on a national
securities exchange, its closing price on the business day immediately prior
to the Offering Date on the principal national securities exchange on which
the Common Stock is listed or admitted to trading as reported in The Wall
Street Journal;
	 
	 	(c)	 	if such Common Stock is publicly traded but is not quoted on the Nasdaq
National Market nor listed or admitted to trading on a national securities
exchange, the average of the closing bid and asked prices on the business day
immediately prior to the Offering Date as reported in The Wall Street Journal;
or
	 
	 	(d)	 	if none of the foregoing is applicable, by the Board in good faith, which in
the case of the First Offering Date will be the price per share at which
shares of the Company’s Common Stock are initially offered for sale to the
public by the Company’s underwriters in the initial public offering of the
Company’s Common Stock pursuant to a registration statement filed with the SEC
under the Securities Act.

     9. Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares.

          (a) The purchase price of the shares is accumulated by regular payroll deductions made during
each
Offering Period. The deductions are made as a percentage of the participant’s compensation in one
percent (1%) increments not less than two percent (2%), nor greater than fifteen percent (15%) or
such lower limit set by the Committee. Compensation shall mean all W-2 cash compensation,
including, but not limited to, base salary, wages, commissions, overtime, shift premiums and
bonuses, plus draws against commissions, provided, however, that for purposes of determining a
participant’s compensation, any election by such participant to reduce his or her regular cash
remuneration under Sections 125 or 401(k) of the Code shall be treated as if the participant did
not make such election. Payroll deductions shall commence on the first payday of the Offering
Period and shall continue to the end of the Offering Period unless sooner altered or terminated as
provided in this Plan.

          (b) A participant may decrease the rate of payroll deductions during an Offering Period by
filing with the Treasury Department a new authorization for payroll deductions, in which case the
new rate shall become effective for the next payroll period commencing more than fifteen (15) days
after the Treasury Department’s receipt of the authorization and shall continue for the remainder
of the Offering Period unless changed as described below. Such change in the rate of payroll
deductions may be made at any time during an Offering Period, but not more than one (1) change may
be made effective during any Purchase Period. A participant may
increase or decrease the rate of payroll deductions for any subsequent Offering Period by filing
with the Treasury Department a new authorization for payroll deductions not later than fifteen (15)
days before the beginning of such Offering Period.

          (c) A participant may reduce his or her payroll deduction percentage to zero during an
Offering Period by filing with the Treasury Department a request for cessation of payroll
deductions. Such reduction shall be effective beginning with the next payroll period commencing
more than fifteen (15) days after the Treasury Department’s receipt of the request and no further
payroll deductions will be made for the duration of the Offering Period. Payroll deductions
credited to the participant’s account prior to the effective date of the request shall be used to
purchase shares of Common Stock of the Company in accordance with Section (e) below. A participant
may not resume making payroll deductions during the Offering Period in which he or she reduced his
or her payroll deductions to zero.

          (d) All payroll deductions made for a participant are credited to his or her account under
this Plan and are deposited with the general funds of the Company. No interest accrues on the
payroll deductions. All payroll deductions received or held by the Company may be used by the
Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll
deductions.

          (e) On each Purchase Date, so long as this Plan remains in effect and provided that the
participant has not submitted a signed and completed withdrawal form before that date which
notifies the Company that the participant wishes to withdraw from that Offering Period under this
Plan and have all payroll deductions accumulated in

4

 

Interwoven,
Inc. 
1999
Employee Stock Purchase Plan

the account maintained on behalf of the participant as of that date returned to the participant,
the Company shall apply the funds then in the participant’s account to the purchase of whole shares
of Common Stock reserved under the option granted to such participant with respect to the Offering
Period to the extent that such option is exercisable on the Purchase Date. The purchase price per
share shall be as specified in Section 8 of this Plan. Any cash remaining in a participant’s
account after such purchase of shares shall be refunded to such participant in cash, without
interest; provided, however that any amount remaining in such participant’s account on a Purchase
Date which is less than the amount necessary to purchase a full share of Common Stock of the
Company shall be carried forward, without interest, into the next Purchase Period. In the event
that this Plan has been oversubscribed, all funds not used to purchase shares on the Purchase Date
shall be returned to the participant, without interest. No Common Stock shall be purchased on a
Purchase Date on behalf of any employee whose participation in this Plan has terminated prior to
such Purchase Date.

          (f) As promptly as practicable after the Purchase Date, the Company shall issue shares for the
participant’s benefit representing the shares purchased upon exercise of his or her option.

          (g) During a participant’s lifetime, his or her option to purchase shares hereunder is
exercisable only by him or her. The participant will have no interest or voting right in shares
covered by his or her option until such option has been exercised.

     10. Limitations on Shares to be Purchased.

          (a) No participant shall be entitled to purchase stock under this Plan at a rate which, when
aggregated with his or her rights to purchase stock under all other employee stock purchase
plans of the Company or any Subsidiary, exceeds $25,000 in fair market value, determined as of
the Offering Date (or such other limit as may be imposed by the Code) for each calendar year in
which the employee participates in this Plan. The Company shall automatically suspend the
payroll deductions of any participant as necessary to enforce such limit provided that when the
Company automatically resumes such payroll deductions, the Company must apply the rate in effect
immediately prior to such suspension.

          (b) On any single Purchase Date, no participant shall be entitled to purchase more than twice
the
number of shares which could have been purchased if the purchase price were eighty-five percent
(85%) of the fair market value of a share of the Company’s Common Stock on the Offering Date.

          (c) No participant shall be entitled to purchase more than the Maximum Share Amount (as
defined below) on any single Purchase Date. Not less than thirty (30) days prior to the
commencement of any Offering Period, the Committee may, in its sole discretion, set a maximum
number of shares which may be purchased by any employee at any single Purchase Date (hereinafter
the “Maximum Share Amount"). Until otherwise determined by the Committee, there shall be no
Maximum Share Amount. In no event shall the Maximum Share Amount exceed the amounts permitted under
Section 10(b) above. If a new Maximum Share Amount is set, then all participants must be notified
of such Maximum Share Amount prior to the commencement of the next Offering Period. The Maximum
Share Amount shall continue to apply with respect to all succeeding Purchase Dates and Offering
Periods unless revised by the Committee as set forth above.

          (d) If the number of shares to be purchased on a Purchase Date by all employees participating
in this Plan exceeds the number of shares then available for issuance under this Plan, then the
Company will make a pro rata allocation of the remaining shares in as uniform a manner as shall be
reasonably practicable and as the Committee shall determine to be equitable. In such event, the
Company shall give written notice of such reduction of the number of shares to be purchased under a
participant’s option to each participant affected.

          (e) Any payroll deductions accumulated in a participant’s account which are not used to
purchase stock due to the limitations in this Section 10 shall be returned to the participant as
soon as practicable after the end of the applicable Purchase Period, without interest.

5

 

Interwoven,
Inc. 
1999
Employee Stock Purchase Plan

     11. Withdrawal.

          (a) Each participant may withdraw from an Offering Period under this Plan by signing and
delivering to the Treasury Department a written notice to that effect on a form provided for
such purpose. Such withdrawal may be elected at any time at least fifteen (15) days prior to the
end of an Offering Period.

          (b) Upon withdrawal from this Plan, the accumulated payroll deductions shall be returned to
the withdrawn participant, without interest, and his or her interest in this Plan shall terminate.
In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume
his or her participation in this Plan during the same Offering Period, but he or she may
participate in any Offering Period under this Plan which commences on a date subsequent to such
withdrawal by filing a new authorization for payroll deductions in the same manner as set forth in
Section 6 above for initial participation in this Plan.

     12. Termination of Employment. Termination of a participant’s employment for any reason,
including retirement, death or the failure of a participant to remain an eligible employee of the
Company or of a Participating Subsidiary, immediately terminates his or her participation in this
Plan. In such event, the payroll deductions credited to the participant’s account will be returned
to him or her or, in the case of his or her death, to his or her legal representative, without
interest. For purposes of this Section 12, an employee will not be deemed to have terminated
employment or failed to remain in the continuous employ of the Company or of a Participating
Subsidiary in the case of sick leave, military leave, or any other leave of absence approved by the
Board; provided that such leave is for a period of not more than ninety (90) days or reemployment
upon the expiration of such leave is guaranteed by contract or statute.

     13. Return of Payroll Deductions. In the event a participant’s interest in this Plan is
terminated by withdrawal, termination of employment or otherwise, or in the event this Plan is
terminated by the Board, the Company shall deliver to the participant all payroll deductions
credited to such participant’s account. No interest shall accrue on the payroll deductions of a
participant in this Plan.

     14. Capital Changes. Subject to any required action by the stockholders of the Company, the
number of shares of Common Stock covered by each option under this Plan which has not yet been
exercised and the number of shares of Common Stock which have been authorized for issuance under
this Plan but have not yet been placed under option (collectively, the “Reserves”), as well as the
price per share of Common Stock covered by each option under this Plan which has not yet been
exercised, shall be proportionately adjusted for any increase or decrease in the number of issued
and outstanding shares of Common Stock of the Company resulting from a stock split or the payment
of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number
of issued and outstanding shares of Common Stock effected without receipt of any consideration by
the Company; provided, however, that conversion of any convertible securities of the Company shall
not be deemed to have been “effected without receipt of consideration”. Such adjustment shall be
made by the Committee, whose determination shall be final, binding and conclusive. Except as
expressly provided herein, no issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Common Stock subject to an option.

     In the event of the proposed dissolution or liquidation of the Company, the Offering Period
will terminate immediately prior to the consummation of such proposed action, unless otherwise
provided by the Committee. The Committee may, in the exercise of its sole discretion in such
instances, declare that this Plan shall terminate as of a date fixed by the Committee and give each
participant the right to purchase shares under this Plan prior to such termination. In the event of
(i) a merger or consolidation in which the Company is not the surviving corporation (other than a
merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Company in a
different jurisdiction, or other transaction in which there is no substantial change in the
stockholders of the Company or their relative stock holdings and the options under this Plan are
assumed, converted or replaced by the successor corporation, which assumption will be binding on
all participants), (ii) a merger in which the Company is the surviving corporation but after which
the stockholders of the Company immediately prior to such merger (other than any stockholder that
merges, or which owns or controls another corporation that merges, with the Company in such merger)
cease to own their shares or other equity interest in the Company, (iii) the sale of all or
substantially all of the assets of the Company or (iv) the acquisition, sale, or transfer of more
than 50% of the outstanding shares

6

 

Interwoven,
Inc. 
1999
Employee Stock Purchase Plan

of the Company by tender offer or similar transaction, the Plan will continue with regard to
Offering Periods that commenced prior to the closing of the proposed transaction and shares will be
purchased based on the Fair Market Value of the surviving corporation’s stock on each Purchase
Date, unless otherwise provided by the Committee consistent with pooling of interests accounting
treatment.

     The Committee may, if it so determines in the exercise of its sole discretion, also make
provision for adjusting the Reserves, as well as the price per share of Common Stock covered by
each outstanding option, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of shares of its outstanding
Common Stock, or in the event of the Company being consolidated with or merged into any other
corporation.

     15. Nonassignability. Neither payroll deductions credited to a participant’s account nor any
rights with regard to the exercise of an option or to receive shares under this Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution or as provided in Section 22 below) by the participant. Any such attempt
at assignment, transfer, pledge or other disposition shall be void and without effect.

     16. Reports. Individual accounts will be maintained for each participant in this Plan. Each
participant shall receive promptly after the end of each Purchase Period a report of his or her
account setting forth the total payroll deductions accumulated, the number of shares purchased, the
per share price thereof and the remaining cash balance, if any, carried forward to the next
Purchase Period or Offering Period, as the case may be.

     17. Notice of Disposition. Each participant shall notify the Company in writing if the
participant
disposes of any of the shares purchased in any Offering Period pursuant to this Plan if such
disposition occurs within two (2) years from the Offering Date or within one (1) year from the
Purchase Date on which such shares were purchased (the “Notice Period”). The Company may, at any
time during the Notice Period, place a legend or legends on any certificate representing shares
acquired pursuant to this Plan requesting the Company’s transfer agent to notify the Company of any
transfer of the shares. The obligation of the participant to provide such notice shall continue
notwithstanding the placement of any such legend on the certificates.

     18. No Rights to Continued Employment. Neither this Plan nor the grant of any option hereunder
shall confer any right on any employee to remain in the employ of the Company or any Participating
Subsidiary, or restrict the right of the Company or any Participating Subsidiary to terminate such
employee’s employment.

     19. Equal Rights And Privileges. All eligible employees shall have equal rights and
privileges with respect to this Plan so that this Plan qualifies as an “employee stock purchase
plan” within the meaning of Section 423 or any successor provision of the Code and the related
regulations. Any provision of this Plan which is inconsistent with Section 423 or any successor
provision of the Code shall, without further act or amendment by the Company, the Committee or the
Board, be reformed to comply with the requirements of Section 423. This Section 19 shall take
precedence over all other provisions in this Plan.

     20. Notices. All notices or other communications by a participant to the Company under or in
connection with this Plan shall be deemed to have been duly given when received in the form
specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

     21. Term; Stockholder Approval. After this Plan is adopted by the Board, this Plan will become
effective on the First Offering Date (as defined above). This Plan shall be approved by the
stockholders of the Company, in any manner permitted by applicable corporate law, within twelve
(12) months before or after the date this Plan is adopted by the Board. No purchase of shares
pursuant to this Plan shall occur prior to such stockholder approval. This Plan shall continue
until the earlier to occur of (a) termination of this Plan by the Board (which termination may be
effected by the Board at any time), (b) issuance of all of the shares of Common Stock reserved for
issuance under this Plan, or (c) ten (10) years from the adoption of this Plan by the Board.

     22. Designation of Beneficiary.

7

 

Interwoven,
Inc. 
1999
Employee Stock Purchase Plan

          (a) A participant may file a written designation of a beneficiary who is to receive any shares
and cash, if any, from the participant’s account under this Plan in the event of such participant’s
death subsequent to the end of a Purchase Period but prior to delivery to him of such shares and
cash. In addition, a participant may file a written designation of a beneficiary who is to receive
any cash from the participant’s account under this Plan in the event of such participant’s death
prior to a Purchase Date.

          (b) Such designation of beneficiary may be changed by the participant at any time by written
notice. In the event of the death of a participant and in the absence of a beneficiary validly
designated under this Plan who is living at the time of such participant’s death, the Company shall
deliver such shares or cash to the executor or administrator of the estate of the participant, or
if no such executor or administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

     23. Conditions Upon Issuance of Shares; Limitation on Sale of Shares. Shares shall not be
issued with respect to an option unless the exercise of such option and the issuance and delivery
of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or
foreign, including, without limitation, the Securities Act, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements of any stock
exchange or automated quotation system upon which the shares
may then be listed, and shall be further subject to the approval of counsel for the Company with
respect to such compliance.

     24. Applicable Law. The Plan shall be governed by the substantive laws (excluding the conflict
of laws rules) of the State of California.

     25. Amendment or Termination of this Plan. The Board may at any time amend, terminate or
extend the term of this Plan, except that any such termination cannot affect options previously
granted under this Plan, nor may any amendment make any change in an option previously granted
which would adversely affect the right of any participant, nor may any amendment be made without
approval of the stockholders of the Company obtained in accordance with Section 21 above within
twelve (12) months of the adoption of such amendment (or earlier if required by Section 21) if such
amendment would:

     (a) increase the number of shares that may be issued under this Plan; or

     (b) change the designation of the employees (or class of employees) eligible for participation in
this Plan.

     Notwithstanding the foregoing, the Board may make such amendments to the Plan as the Board
determines to be advisable, if the continuation of the Plan or any Offering Period would result in
financial accounting treatment for the Plan that is different from the financial accounting
treatment in effect on the date this Plan is adopted by the Board.

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]