Document:

exv10w22

 

Blackboard Inc.

Nonstatutory Stock Option Agreement

Granted Under 2004 Stock Incentive Plan

1. Grant of Option.

     This agreement evidences the grant by Blackboard Inc., a Delaware corporation (the “Company”),
on [Date] (the “Grant Date”) to [Name], an employee, consultant or director of the Company (the
“Participant”), of an option to purchase, in whole or in part, on the terms provided herein and in
the Company’s 2004 Stock Incentive Plan (the “Plan”), a total of [Number] shares (the “Shares”) of
common stock, $0.01 par value per share, of the Company (“Common Stock”) at $[Price] per Share.
Unless earlier terminated, this option shall expire at 5:00 p.m., Eastern time, on the tenth
anniversary of the Grant Date (the “Final Exercise Date”).

     It is intended that the option evidenced by this agreement shall not be an incentive stock
option as defined in Section 422 of the Internal Revenue Code of 1986, as amended, and any
regulations promulgated thereunder (the “Code”). Except as otherwise indicated by the context, the
term “Participant”, as used in this option, shall be deemed to include any person who acquires the
right to exercise this option validly under its terms.

2. Vesting Schedule.

     This option will become exercisable (“vest”) as to 33% of the original number of Shares on the
first anniversary of the Vesting Commencement Date and, as to the remaining 67% of the original
number of Shares, ratably on a monthly basis at the end of each of the 24 months following the
first anniversary of the Vesting Commencement Date. The “Vesting Commencement Date” is [Vesting
Commencement Date].

     The right of exercise shall be cumulative so that to the extent the option is not exercised in
any period to the maximum extent permissible it shall continue to be exercisable, in whole or in
part, with respect to all Shares for which it is vested until the earlier of the Final Exercise
Date or the termination of this option under Section 3 hereof or the Plan.

     Upon the occurrence of a Reorganization Event or a Change in Control Event (as defined in the
Plan), except to the extent specifically provided to the contrary in any other agreement between
the Participant and the Company, the vesting hereunder shall be accelerated so that this option
shall become immediately exercisable for the number of Shares subject to this option which
otherwise would have first vested within 12 months following such Reorganization Event or Change in
Control Event, and any remaining unvested shares subject to such Option shall continue to vest in
accordance with the vesting schedule set forth herein as though such 12 month period had actually
passed. At any time after a Reorganization Event or a Change in Control Event, if the Participant
ceases to be an Eligible Participant due to termination by the Company of its relationship with the
Participant or a Constructive Termination (as defined below) of the Participant, except to the
extent specifically provided to the contrary in any other agreement between the Participant and the
Company, the vesting hereunder shall be further accelerated so that this option shall become
immediately exercisable for the number of Shares

 

 

subject to this option which otherwise would have first vested within 12 months following such
termination or Constructive Termination, provided that the acceleration periods under this Section
2 shall be cumulative, and any remaining unvested shares subject to such Option shall continue to
vest in accordance with the vesting schedule set forth herein as though such additional 12 month
period had actually passed.

     For the purposes of this option, a “Constructive Termination” is deemed to have occurred if
the Participant is relocated outside of the Participant’s then residential area without his or her
consent or there is a material diminution of the Participant’s compensation, duties or
responsibilities without his or her consent.

3. Exercise of Option.

     (a) Form of Exercise. Each election to exercise this option shall be in writing,
signed by the Participant, and received by the Company at its principal office, or by other method
authorized pursuant to the Plan, accompanied by this agreement and payment in full in the manner
provided in the Plan. The Participant may purchase less than the number of shares covered hereby,
provided that no partial exercise of this option may be for any fractional share.

     (b) Continuous Relationship with the Company Required. Except as otherwise provided
in this Section 3, this option may not be exercised unless the Participant, at the time he or she
exercises this option, is, and has been at all times since the Grant Date, an employee, officer or
director of, or consultant or advisor to, the Company or any other entity the employees, officers,
directors, consultants, or advisors of which are eligible to receive option grants under the Plan
(an “Eligible Participant”).

     (c) Termination of Relationship with the Company. If the Participant ceases to be an
Eligible Participant for any reason, then, except as provided in paragraphs (d) and (e) below, the
right to exercise this option shall terminate twelve months after such cessation (but in no event
after the Final Exercise Date), provided that this option shall be exercisable only
to the extent that the Participant was entitled to exercise this option on the date of such
cessation. Notwithstanding the foregoing, if the Participant, prior to the Final Exercise Date,
violates the non-competition or confidentiality provisions of any employment contract,
confidentiality and nondisclosure agreement or other agreement between the Participant and the
Company, the right to exercise this option shall terminate immediately upon such violation.

     (d) Exercise Period Upon Death or Disability. If the Participant dies or becomes
disabled (within the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date
while he or she is an Eligible Participant and the Company has not terminated such relationship for
“cause” as specified in paragraph (e) below, this option shall be exercisable, within the period of
one year following the date of death or disability of the Participant, by the Participant (or in
the case of death by an authorized transferee), provided that this option shall be
exercisable only to the extent that this option was exercisable by the Participant on the date of
his or her death or disability, and further provided that this option shall not be exercisable
after the Final Exercise Date.

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     (e) Discharge for Cause. If the Participant, prior to the Final Exercise Date, is
discharged by the Company for “cause” (as defined below), the right to exercise this option shall
terminate immediately upon the effective date of such discharge. “Cause” shall mean willful
misconduct by the Participant or willful failure by the Participant to perform his or her
responsibilities to the Company (including, without limitation, breach by the Participant of any
provision of any employment, consulting, advisory, nondisclosure, non-competition or other similar
agreement between the Participant and the Company), as determined by the Company, which
determination shall be conclusive. The Participant shall be considered to have been discharged for
“Cause” if the Company determines, within 30 days after the Participant’s resignation, that
discharge for cause was warranted.

4. Withholding.

     No Shares will be issued pursuant to the exercise of this option unless and until the
Participant pays to the Company, or makes provision satisfactory to the Company for payment of, any
federal, state or local withholding taxes required by law to be withheld in respect of this option.

5. Nontransferability of Option.

     This option may not be sold, assigned, transferred, pledged or otherwise encumbered by the
Participant, either voluntarily or by operation of law, except by will or the laws of descent and
distribution, and, during the lifetime of the Participant, this option shall be exercisable only by
the Participant.

6. Agreement in Connection with Public Offering.

     The Participant agrees, in connection with an underwritten public offering of the Company’s
securities pursuant to a registration statement under the Securities Act, (i) not to sell, make
short sale of, loan, grant any options for the purchase of, or otherwise dispose of any shares of
Common Stock held by the Participant (other than those shares included in the offering) without the
prior written consent of the Company or the underwriters managing such initial underwritten public
offering of the Company’s securities for a period of 90 days from the effective date of such
registration statement, and (ii) to execute any agreement reflecting clause (i) above as may be
requested by the Company or the managing underwriters at the time of such offering.

7. Provisions of the Plan.

     This option is subject to the provisions of the Plan, a copy of which is furnished to the
Participant with this option.

     IN WITNESS WHEREOF, the Company has caused this option to be executed under its corporate seal
by its duly authorized officer. This option shall take effect as a sealed instrument.

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Blackboard Inc.
	Dated: [Grant Date]	 	
By: ______________________________
	 	 	
          Name:
	 	 	
          Title:

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PARTICIPANT’S ACCEPTANCE

     The undersigned hereby accepts the foregoing option and agrees to the terms and conditions
thereof. The undersigned hereby acknowledges receipt of a copy of the Company’s 2004 Stock
Incentive Plan.

PARTICIPANT:

_________________________

	 	 	 	 	 
	

	 	Print Name:
	 	________________________
	 
	

	 	Address:
	 	________________________
	 
	

	 	 	 	________________________
	 
	

	 	 	 	________________________
	 
	

	 	TIN/SSN:
	 	________________________

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Exhibit 10.1

AFFIRMATIVE INSURANCE HOLDINGS, INC.

2004 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

      This Stock Option Agreement (the “Agreement”) is made and entered
into as of the date of grant set forth below (the “Date of Grant”) by and between Affirmative
Insurance Holdings, Inc., a Delaware corporation (the “Company”), and the participant named below
(the “Participant”). Capitalized terms not defined herein shall have the meaning ascribed to them
in the Company’s 2004 Stock Incentive Plan (the “Plan”).

	 	 	 
	Participant:
	 	 
	

	 	 
	 
	 	 
	Social Security Number:
	 	 
	

	 	 
	 
	 	 
	Address:
	 	 
	

	 	 
	 
	 	 
	 
	 	 
	

	 	 
	 
	 	 
	 
	 	 
	

	 	 
	 
	 	 
	Total Option Shares:
	 	 
	

	 	 
	 
	 	 
	Exercise Price Per Share:
	 	 
	

	 	 
	 
	 	 
	Date of Grant:
	 	 
	

	 	 
	 
	 	 
	Expiration Date:
	 	 
	

	 	 
	 
	 	 
	Type of Stock Option:

	 	o Incentive Stock Option
	 
	 	 
	

	 	o Nonqualified Stock Option

      1. Grant of Option. The Company hereby grants to Participant an option (this “Option”) to
purchase the total number of shares of Common Stock of the Company set forth above as Total Option
Shares (the “Shares”) at the Exercise Price Per Share set forth above (the “Exercise Price”),
subject to all of the terms and conditions of this Agreement and the Plan. If designated as an
Incentive Stock Option above, the Option is intended to qualify as an “incentive stock option” (an
“ISO”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”), although the Company makes no representation or guarantee that such Option will qualify as
an ISO.

      2. Exercise Period; Vesting. Unless expired as provided in Section 3 of this
Agreement, this Option may be exercised from time to time after the Date of Grant set forth above
(the “Date of Grant”) to the extent the Option has vested in accordance with the vesting schedule
set forth below. The Shares issued upon exercise of the Option will be subject to the restrictions
on transfer set forth in Sections 8 and 9 below. Provided Participant continues to
provide Continuous Service to the Company or any Affiliate, the Option will become vested and
exercisable with respect to twenty percent (20%) of the Shares on the first anniversary of the Date
of Grant set forth above and thereafter at the end of each full succeeding year from the Date

Affirmative Insurance Holdings, Inc. Stock Option Agreement

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of Grant the Option will become vested and exercisable as to twenty percent (20%) of the
Shares until the Option is vested and exercisable with respect to one hundred percent (100%) of the
Shares. If application of the vesting percentage causes a fractional share, such share shall be
rounded down to the nearest whole share for each vesting period except for the last period in such
vesting period, at the end of which last period this Option shall become exercisable for the full
remainder of the Shares.

Any unvested Option shall become vested and exercisable if, during the term of Participant’s
employment by the Company, a Change in Control occurs.

      3. Expiration. The Option shall expire on the Expiration Date set forth above or earlier as
provided in Section 4 below or, if applicable, pursuant to Section 11 of the Plan.

      4. Termination of Continuous Service.

          4.1. Termination for Any Reason Except Death, Disability or Cause. Unless otherwise
provided in an employment agreement the terms of which have been approved by the Administrator, if
Participant’s Continuous Service is terminated for any reason, except death, Disability or for
Cause, the Option, to the extent (and only to the extent) that it would have been exercisable by
Participant on the date of termination, may be exercised by Participant no later than three (3)
months after the date of termination, but in any event no later than the Expiration Date.

          4.2. Termination Because of Death or Disability. If Participant’s Continuous Service
is terminated because of death or Disability of Participant (or Participant dies within three (3)
months of the date of termination when such termination is for any reason other than Participant’s
Disability or for Cause), the Option, to the extent that is exercisable by Participant on the date
of termination, may be exercised by Participant (or Participant’s legal representative) no later
than twelve (12) months after the date of termination, but in any event no later than the
Expiration Date. If permitted by this Agreement, any exercise beyond (a) three (3) months after
the date of termination when the termination is for any reason other than the Participant’s death
or Disability or (b) twelve (12) months after the date of termination when the termination is for
Participant’s Disability is deemed to be a Nonqualified Stock Option (an “NQSO”) and not an ISO.

          4.3. Termination for Cause. If Participant’s Continuous Service is terminated for
Cause, then the Option will expire on the Participant’s date of termination.

          4.4. No Obligation to Employ. Nothing in the Plan or this Agreement shall confer on
Participant any right to continue in the employ of, or other relationship with, the Company or any
Affiliate, or limit in any way the right of the Company or any Affiliate to terminate Participant’s
employment or other relationship at any time, with or without Cause.

      5. Manner of Exercise.

          5.1. Stock Option Exercise Agreement. To exercise this Option, Participant (or in the
case of exercise after Participant’s death or incapacity, Participant’s executor, administrator,
heir or legatee, as the case may be) must deliver to the Company an executed

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stock option exercise agreement in the form attached hereto as Exhibit A, or in such
other form as may be approved by the Administrator from time to time (the “Exercise Agreement”),
which shall set forth, inter alia, (a) Participant’s election to exercise the
Option, (b) the number of Shares being purchased, (c) any restrictions imposed on the Shares and
(d) any representations warranties and agreements regarding Participant’s investment intent and
access to information as may be required by the Company to comply with applicable securities laws.
If someone other than Participant exercises the Option, then such person must submit documentation
reasonably acceptable to the Company verifying that such person has the legal right to exercise the
Option.

          5.2. Limitations on Exercise. The Option may not be exercised unless such exercise is
in compliance with all applicable federal and state securities laws, as they are in effect on the
date of exercise. The Option may not be exercised for fewer than one (1) Share unless it is
exercised as to all Shares as to which the Option is then exercisable.

          5.3. Payment. The Exercise Agreement shall be accompanied by full payment of the
Exercise Price for the shares being purchased in cash (by check), or where permitted by law and
upon written approval by the Administrator:

               (a) by cancellation of indebtedness of the Company to the Participant;

               (b) by surrender of shares of the Company’s Common Stock that (i) either (1) have been owned
by Participant for more than six (6) months and have been paid for within the meaning of SEC Rule
144 (and, if such shares were purchased from the Company by use of promissory note, such note has
been fully paid with respect to such shares); or (2) were obtained by Participant in the open
public market; and (ii) are clear of all liens, claims, encumbrances or security interests;

               (c) by waiver of compensation due or accrued to Participant for services rendered;

               (d) provided that a Listing Date has occurred: (i) through a “same day sale” commitment from
Participant and a broker-dealer that is a member of the National Association of Securities Dealers
(an “NASD Dealer”) whereby Participant irrevocably elects to exercise the Option and to sell a
portion of the Shares so purchased sufficient to pay for the total Exercise Price and whereby the
NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price
directly to the Company, or (ii) through a “margin” commitment from Participant and an NASD Dealer
whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased
to the NASD Dealer in a margin account as security for a loan from NASD Dealer in the amount of the
total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares
to forward the total Exercise Price directly to the Company; provided, however, a
cashless exercise by a Director or executive officer that involves or may involve a direct or
indirect extension of credit or arrangement of an extension of credit by the Company or an
Affiliate in violation of Section 402(a) of the Sarbanes-Oxley Act (codified as Section 13(k) of
the Securities Exchange Act of 1934, 15 U.S.C. § 78m(k)) shall be prohibited;

Affirmative Insurance Holdings, Inc. Stock Option Agreement

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               (e) by any other form of legal consideration that may be acceptable to the Administrator; or

               (f) by any combination of the foregoing.

          5.4. Tax Withholding. Prior to the issuance of the Shares upon exercise of the
Option, Participant must pay or provide for any applicable federal, state and local withholding
obligations of the Company. If the Administrator permits, Participant may provide for payment of
withholding taxes upon exercise of the Option by requesting that the Company retain Shares with a
Fair Market Value equal to the minimum amount of taxes required to be withheld. In such case, the
Company shall issue the net number of Shares to the Participant by deducting the Shares retained
from the Shares issuable upon exercise.

          5.5. Issuance of Shares. Provided that the Exercise Agreement and payment are in form
and substance satisfactory to counsel for the Company, the Company shall issue the Shares
registered in the name of Participant, Participant’s authorized assignee, or Participant’s legal
representative, and shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

      6. Notice of Disqualifying Disposition of ISO Shares. If the Option is an ISO, and if
Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or
before the later of (a) the date two (2) years after the Date of Grant, and (b) the date one (1)
year after transfer of such Shares to Participant upon exercise of the Option, Participant shall
immediately notify the Company in writing of such disposition. Participant agrees that Participant
may be subject to income tax withholding by the Company on the compensation income recognized by
Participant from the early disposition by payment in cash or out of the current wages or other
compensation payable to Participant.

      7. Compliance with Laws and Regulations. The exercise of the Option and the issuance and
transfer of Shares shall be subject to compliance by the Company and Participant with all
applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company’s Common Stock may be listed at the time of such
issuance or transfer. Participant understands that the Company is under no obligation to register
or qualify the Shares with the SEC, any state securities commission or any stock exchange to effect
such compliance.

      8. Nontransferability of Option. If the Option is an ISO, the Option may not be transferred
in any manner other than by will or by the laws of descent and distribution and may be exercised
during the lifetime of Participant only by Participant or in the event of Participant’s incapacity,
by Participant’s legal representative. The terms of the Option shall be binding upon the
executors, administrators, successors and assigns of Participant. If the Option is not an ISO,
upon written approval by the Administrator, it may be transferred by gift or domestic relations
order to a member of the Participant’s immediate family (child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the Participant’s household (other than a tenant or employee), a
trust in which these persons have more than 50% of the beneficial interest, a foundation in which

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these persons (or the Participant) control the management of assets, and any other entity in
which these persons (or the Participant) own more than 50% of the voting interests.

      9. Privileges of Stock Ownership. Participant shall not have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to Participant.

      10. General.

          10.1. Interpretation. Any dispute regarding the interpretation of this Agreement
shall be submitted by Participant or the Company to the Administrator for review. The resolution
of such a dispute by the Administrator shall be final and binding on the Company and Participant.

          10.2. Entire Agreement. The Plan is incorporated herein by reference. This Agreement
and the Plan constitute the entire agreement of the parties and supercede all prior undertakings
and agreements with respect to the subject matter hereof. If any inconsistency should exit between
the nondiscretionary terms and conditions of this Agreement and the Plan, the Plan shall govern and
control.

          10.3. Notices. Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company
at its principal corporate offices. Any notice required to be given or delivered to Participant
shall be in writing and addressed to Participant at the address indicated above or to such other
address as such party may designate in writing from time to time to the Company. All notices shall
be deemed to have been given or delivered upon: (a) personal delivery; (b) five (5) days after
deposit in the United States mail by certified or registered mail (return receipt requested); (c)
two (2) business day after deposit with any return receipt express courier (prepaid); or (d) one
(1) business day after transmission by facsimile.

          10.4. Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Participant and Participant’s heirs, executors, administrators, legal
representatives, successors and assigns.

          10.5. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware without giving effect to its conflict of law principles. If
any provision of this Agreement is determined by a court of law to be illegal or unenforceable,
then such provision will be enforced to the maximum extent possible and the other provisions will
remain fully effective and enforceable.

      11. Acceptance. Participant hereby acknowledges receipt of a copy of the Plan and this
Agreement. Participant has read and understands the terms and provisions thereof, and accepts the
Option subject to all the terms and conditions of the Plan and this Agreement. Participant
acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition
of the Shares and that Participant should consult a tax advisor prior to such exercise or
disposition.

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      IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized representative and Participant has executed this Agreement, effective as of the Date of
Grant.

	 	 	 
	AFFIRMATIVE INSURANCE HOLDINGS, INC.

	 
	 	 
	 
	 	 
	By:
	 	 
	

	 	 
	Name:
	 	 
	

	 	 
	Title:
	 	 
	

	 	 
	 
	 	 
	PARTICIPANT

	 
	 	 
	 
	 	 
	 

	(Signature)

	 
	 	 
	Printed Name:
	 
	

	 	 

Affirmative Insurance Holdings, Inc. Stock Option Agreement

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EXHIBIT A

FORM OF STOCK OPTION EXERCISE AGREEMENT

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