Document:

EXHIBIT 10.4

 

AXS-ONE, INC.

STOCK OPTION AGREEMENT UNDER THE

AXS-ONE, INC.

2005 STOCK OPTION PLAN

 

AXS-ONE, INC. (the “Company”)
hereby grants the individual named on the attached (the “Optionee”) an option
to purchase the number of shares of Common Stock set forth on the attached
hereto (“Option Shares”) at the exercise price per share set forth (the “Option”).  This Option is not intended to qualify as an incentive stock option under Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”).

 

1.                                       Grant under the 2005 Stock Incentive Plan.  This Option is granted pursuant to the
AXS-One, Inc. 2005 Stock Incentive Plan (the “Plan”) and, unless the context
otherwise requires, terms used herein shall have the same meaning as in the
Plan.  Determinations made in connection
with this Option shall be governed by the Plan. 
This Agreement is subject to all the terms, conditions and provisions of
the Plan, including, without limitation, the amendment provisions thereof, and
to such rules, regulations and interpretations relating to the Plan as may be
adopted by the Committee and as may be in effect from time to time.  The Plan is incorporated herein by
reference.  If and to the extent that
this Agreement conflicts or is inconsistent with the terms, conditions and
provisions of the Plan, the Plan shall control, and this Agreement shall be
deemed to be modified accordingly.

 

2.                                       Vesting and Term of Option if Directorship Continues.  If the Optionee continues to remain a
Non-Employee Director of the Company through the applicable vesting dates set
forth on the attached hereto, the Optionee may exercise this Option, in whole
or in part, for up to the applicable number of Option Shares set forth on the
attached, provided that there is no Termination of Directorship prior to each
applicable vesting date.  These rights
are cumulative and, while the Optionee continues to serve as a director of the
Company, may be exercised up to and including the date which is 10 years from the
date this Option is granted, subject to earlier termination as provided herein
and in the Plan.  All of the foregoing
rights are subject to paragraph 3 in the event of a Termination of
Directorship.

 

3.                                       Termination of Directorship.  Upon a Termination of Directorship, the
Option shall remain exercisable pursuant to Section 9.5 of the Plan.

 

4.                                       Payment of Exercise Price.  The exercise price is payable in United
States dollars and may be paid (a) in cash, (b) by check, bank draft or money
order payable to the Company, (c) with the Committee’s prior written consent,
by delivery of shares of Common Stock owned by the Optionee for a period of at
least 6 months (and for which the Optionee has good title free and clear of any
liens and encumbrances) having a Fair Market Value equal to the exercise price
on the date of exercise, (d) if the Common Stock is traded on a national
securities exchange, the Nasdaq Stock Market, Inc. or quoted on a national
quotation system sponsored by the National Association of Securities Dealers,
through the delivery of irrevocable instructions to a broker to deliver
promptly to the Company an amount equal to the purchase price, or (e) by any
combination of the foregoing, equal in amount to the exercise price.

 

5.                                       Method of Exercise.  Subject to the terms and conditions of this
Agreement and the Plan, this Option may be exercised by written notice to the
Company, at the principal executive office of the

 

 

Company, or to such transfer agent as the Company shall designate.  Such notice shall state the election to
exercise this Option and the number of Option Shares in respect of which it is
being exercised and shall be signed by the person or persons so exercising this
Option.  Such notice shall be accompanied
by payment of the full exercise price of such Option Shares, and the Company
shall deliver a certificate representing such Option Shares as soon as
practicable after the notice shall be received. 
The certificate for the Option Shares as to which this Option shall have
been exercised shall be registered in the name of the person so exercising this
Option and shall be delivered as provided above to or upon the written order of
the person exercising this Option.  In
the event this Option shall be exercised by any person other than the Optionee,
such notice shall be accompanied by appropriate proof of the right of such
person to exercise this Option. All Option Shares that shall be purchased upon
the exercise of this Option as provided herein shall by fully paid and
non-assessable.

 

6.                                       Option Not Transferable.  This Option is not transferable or assignable
except by will or by the laws of descent and distribution.  During the Optionee’s lifetime, only the
Optionee, or the Optionee’s guardian or legal representative, can exercise this
Option.  In addition, this Option shall not be assigned,
negotiated, pledged or hypothecated in any way (whether by operation of law or
otherwise), and this Option shall not be subject to execution, attachment or
similar process.  Upon any attempt to
transfer, assign, negotiate, pledge or hypothecate this Option, or in the event
of any levy upon this Option by reason of any execution, attachment or similar
process contrary to the provisions hereof, this Option shall immediately become
null and void.  Notwithstanding the
foregoing, after the grant of this Option, the Committee may determine that the
Option is transferable in whole or part and in such other circumstances, and
under such other conditions, as specified by the Committee.

 

7.                                       No Obligation to Exercise Option.  The grant and acceptance of this Option
imposes no obligation on the Optionee to exercise it.

 

8.                                       No Obligation to Continue Directorship.  This Agreement does not guarantee that the
Company or its subsidiaries or affiliates will continue to retain the Optionee
for any specific time period, nor does it modify in any respect the Company’s
and its subsidiaries’ and affiliates’ right to terminate or modify the Optionee’s
directorship or compensation.

 

9.                                       No Rights as a Stockholder.  The Optionee shall have no rights as a
stockholder with respect to Option Shares subject to this Agreement until the
Optionee has exercised the Option, paid the exercise price and become the
holder of record of the Option Shares. 
Except as is expressly provided in the Plan with respect to certain
changes in the capitalization of the Company, no adjustment shall be made for
dividends or similar rights for which the record date is prior to the date such
stock certificate is issued.

 

10.                                 Termination Repayment.  
Notwithstanding anything else herein to the contrary, in the event the Optionee’s
Termination of Directorship occurs not more than three (3) months after the
date of exercise of this Option or the Optionee engages in a “competitive
activity” (as determined by the Committee, in its sole discretion) after the exercise
of this Option, the Optionee shall pay the Company an amount in cash (within
ten (10) business days) for each share with respect to which this Option was
exercised, equal to the difference between: 
(a) the Fair Market Value of a share of Common Stock on the date of such
Termination or determination, as applicable, and (b) the exercise price paid
per share.

 

11.                                 Provision of Documentation to Optionee.  By signing this Agreement, the Optionee
acknowledges receipt of a copy of this Agreement and a copy of the Plan.

 

 

12.                                 Governing Law.  This Agreement shall be governed by and
interpreted in accordance with the laws of the State of Delaware.

 

13.                                 Entire Agreement.  This Agreement, together with the Plan,
embodies the entire agreement and understanding between the parties hereto with
respect to the subject matter hereof.EXHIBIT 10.5

 

	
   

  	
  AXS-One Inc.

  
	
  Notice of Grant of Stock Options and Option Agreement

  	
  ID: 132966911

  
	
   

  	
  301 Route 17 North

  
	
   

  	
  Rutherford, NJ 07070

  
	
   

  	
   

  
	
  employee name

  	
   

  	
  Option
  Number:

  	
   

  	
   

  	
   

  
	
  employee address

  	
   

  	
  Plan:

  	
   

  	
  2005
  Stock Incentive Plan

  	
   

  
	
  city, state zip

  	
   

  	
  ID:

  	
   

  	
  Ss#
  or emp Id#

  	
   

  

 

Effective {grant date}, you have been granted a(n) Incentive Stock
Option {or Non-Qualified Stock Option} to buy 20,000 shares of AXS-One Inc.
(the Company) stock at ${closing price on day shares were granted} per share.

 

The total option price of the shares granted is ${# of shares times
grant price}.

 

Shares in each period will become fully vested on the date shown.

 

	
  Options

  	
   

  	
  Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1/4 of options

  	
   

  	
  1 year after grant date

  	
   

  
	
  1/4 of options

  	
   

  	
  2 years after grant date

  	
   

  
	
  1/4 of options

  	
   

  	
  3 years after grant date

  	
   

  
	
  1/4 of options

  	
   

  	
  4 years after grant date

  	
   

  

 

By your signature and the Company’s signature below, you and the Company
agree that these options are granted under and governed by the terms and
conditions of the Company’s 2005 Stock Incentive Plan and the Option Agreement,
all of which are attached and made a part of this document.

 

 

	
   

  	
   

  	
   

  
	
  AXS-One Inc.

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Optionee

  	
   

  	
  Date

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