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Exhibit 10.5    
  

 
 

RAINING DATA CORPORATION    
    
    AMENDMENT TO STOCK OPTION AGREEMENT    
  

        This Amendment to that certain Stock Option Agreements, dated October 10, 2001 and April 26, 2002, by and between Raining Data Corporation (the
"Company") and Soheil Raissi (the "Grantee"), is entered into this 21st day of June 2002. Unless otherwise defined herein, all capitalized terms shall have the same meanings as set forth in the
Amended 1999 Stock Option Plan, as amended from time to time (the "Plan") and the Stock Option Agreement (the "Option Agreement"). 

 
 

RECITALS    
  

        WHEREAS, the Grantee was granted Options by the Company on October 10, 2002 and April 26, 2002
pursuant to the Plan, attached hereto as Exhibit A, and subject to terms and conditions of the Option Agreement, attached hereto as  Exhibit B.

        WHEREAS, the Company and the Grantee desire to amend the Option Agreements to provide for acceleration of vesting upon the occurrence of
certain events following a Corporate Transaction. 

        NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows: 

        1.    The
section entitled "Vesting Schedule" under the Notice of Stock Option Grant shall be amended to read in its entirety as follows: 

"Vesting Schedule: 

        Subject
to the Continuous Service of Grantee and other limitations set forth in the Plan and the Option Agreement, the Option may be exercised, in whole or in part, in accordance with
the following schedule: 

        (a)  Grantee
shall have no right to exercise any part of the Option at any time prior to the expiration of the one (1) year from the Vesting Commencement Date; 

        (b)  The
Option shall become exercisable with respect to Twenty-Five Percent (25%) of the Shares upon the expiration of one (1) year from the Vesting
Commencement Date; 

        (c)  The
Option thereafter shall become exercisable with respect to an additional One Forty-Eighth (1/48th) of the Option on each monthly anniversary of the Vesting
Commencement Date; 

        (d)  Notwithstanding
the foregoing subsections (a), (b) and (c) and Section 6(c) of the Option Agreement, 100% of the Shares subject to the Option shall
immediately vest in the event that the Grantee is terminated as a result of an Involuntary Termination other than for Cause, death or Disability (each as defined in the Option Agreement) within twelve
(12) months after a Corporate Transaction (as defined in the Option Agreement); provided that the Grantee signs a general release in a commercially customary form prescribed by the Company,
which releases and discharges all known and unknown claims that the Grantee may have against the Company or persons and entities affiliated with the Company, and a covenant not to sue or prosecute any
legal action or proceeding based upon such claims; and 

        (e)  In
the event that the severance and other benefits provided for in this Option Agreement or otherwise payable to the Grantee (i) constitute "parachute payments"
within the meaning of Section 280G of the Code, and (ii) would be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then Grantee's benefits under
this Option Agreement shall be either delivered in full, or delivered as to such lesser extent which would result in no portion of such benefits being subject to the Excise Tax, whichever of the
foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Grantee on an after-tax basis, of the greatest
amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code. Unless the Company and 

 

the Grantee otherwise agree in writing, any determination required under this subsection shall be made in writing by the Company's independent public accountants (the "Accountants"), whose
determination shall be conclusive and binding upon the Grantee and the Company for all purposes. For purposes of making the calculations required by this subsection, the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code. The
Company and the Grantee shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall
bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section." 

        2.    Section 2
("Certain Definitions") shall be amended to add the following definitions: 

        "(f)  "Cause"
shall mean (i) gross and willful failure to perform services; (ii) conviction of, or a plea of "guilty" or no "contest" to, a felony under the
laws of the United States or any state thereof, if such felony either is work-related or materially impairs Grantee's ability to perform services for the Company; (iii) a material
breach of fiduciary duty, including fraud, embezzlement, dishonesty or any intentional action that materially injures the Company as determined in good faith by the Company's Board of Directors;
(iv) death; (v) a material breach of the Company's Employment Confidential Information, Invention Assignment, and Arbitration Agreement. In all of the foregoing cases, the Company shall
provide written notice to Grantee indicating in reasonable detail the event or circumstances that constitute Cause under this Option Agreement, and the Company will provide the Grantee with
forty-five days to cure such breach or failure prior to termination for Cause. During such 45-day cure period, the Company may place the Grantee on an unpaid leave. 

        (g)  "Disability"
shall mean, for purpose of the Vesting Schedule, that the Grantee physically or mentally is unable regularly to perform Grantee's duties for a period in
excess of sixty (60) consecutive days or more than ninety (90) days in any consecutive twelve (12) month period. The Company shall make a good faith determination of whether the
Grantee is physically or mentally unable to regularly perform Grantee's duties subject to its review and consideration of any physical and/or mental health information provided to it by the Grantee. 

        (h)  "Involuntary
Termination" shall mean (i) without the Grantee's express written consent, the substantial reduction in Grantee's duties or responsibilities relative
to Grantee's duties or responsibilities in effect immediately prior to such reduction; provided, however, that a reduction in duties or responsibilities solely by virtue of the Company being acquired
and made part of a larger entity (as, for example, when the Vice President of Company remains as such following a Corporate Transaction and is not made the Vice President of the acquiring corporation)
shall not constitute an
"Involuntary Termination"; (ii) without the Grantee's express written consent, a material reduction by the Company in Grantee's base compensation as in effect immediately prior to such
reduction; (iii) without the Grantee's express written consent, a material reduction by the Company in the kind or level of employee benefits package; (iv) without the Grantee's express
written consent, the relocation of the Grantee to a facility or a location more than 50 miles from Grantee's then present location; (v) any purported termination of the Grantee by the Company
which is not effected for death or Disability or for Cause; or (vi) the failure of the Company to obtain the assumption of this Option Agreement by any successors." 

        3.    Section 7
("Termination on Corporate Transaction; Assumption") shall be amended to read in its entirety as follows: 

"In
the event of a Corporate Transaction, each outstanding Option Share shall be assumed or an equivalent option substituted by the successor corporation or a parent or subsidiary of the successor
corporation. In the event that the successor corporation or entity in a Corporate 

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Transaction refuses to assume or substitute for the Option Share, then the Grantee shall fully vest in and have the right to exercise the Option as to all of the Option Shares, including Option
Shares as to which it would not otherwise be vested or exercisable. If an Option becomes fully vested and exercisable in lieu of assumption or substitution in the event of a Corporate Transaction, the
Administrator shall notify the Grantee in writing or electronically that the Option shall be fully exercisable for a period of thirty (30) days from the date of such notice, and the Option
shall terminate upon expiration of such period. For the purposes of this paragraph, the Option shall be considered assumed if, following the Corporate Transaction, the option confers the right to
purchase or receive, for each Share subject to the Option immediately prior to the Corporate Transaction, the consideration (whether stock, cash, or other securities or property) received in the
Corporate Transaction by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding Shares)." 

        4.    Except
as specified in this Amendment, all terms and conditions of the Plan and Option Agreement shall continue in full force and effect. 

        5.    This
Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 

[Remainder
of the Page Intentionally Left Blank] 

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        IN
WITNESS WHEREOF, this Amendment has been entered into as of the date first set forth above. 

	RAINING DATA CORPORATION	 	GRANTEE
	

/s/ BRIAN C. BEZDEK
 By: Brian C. Bezdek	
 	

/s/ SOHEIL RAISSI
 Signature
	

Vice President, Finance
 Title:	
 	

Soheil Raissi
 Printed Name

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Exhibit 10.5

RAINING DATA CORPORATION AMENDMENT TO STOCK OPTION AGREEMENT

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Exhibit 10.6    
  

March 26,
2002 

Dear
Brian: 

        It
has been a real pleasure getting to know you as we have discussed the opportunities ahead for Raining Data Corporation. We believe that you have the background and experience that we
need to help us grow in our new directions, and we are pleased to offer you a position with Raining Data Corporation (the "Company") as its Vice President, Finance and Corporate Controller. In that
regard, the following are the details of this offer of employment: 

Title  

        Your title will be Vice President, Finance and Corporate Controller. In this position, you will report directly to me. 

Base Compensation  

        Your initial annual base salary will be $135,000, paid in accordance with the Company's normal payroll procedures. Your base salary shall be subject to review at
the end of each year of your employment, and any adjustment will be a function of performance, which I will evaluate. However, your first formal review and evaluation will be held six months after
your initial start date. 

Incentive Bonus  

        Additionally, you will be entitled to an incentive bonus of up to thirty-five percent (35%) of your base salary based on your meeting certain
Management Business Objectives (MBOs) as are mutually agreed upon. The MBOs for your first year of employment shall be established by you and me, after you have been employed by the Company for a
reasonable period of time, but no later than three (3) months. One-third of the projected bonus will be eligible for payment, based on performance, at the end of six months service
with the Company. The two-thirds remaining will be eligible for payment, again based upon performance, after the end of twelve months of service. 

Stock Options  

        At the first Board meeting following your acceptance of employment and actual start date, you will be granted a stock option, which shall be, to the extent
possible under the rule of Section 422(d) of the Internal Revenue Code of 1986, as amended (the "Code"), an "incentive stock option" (as defined in Section 422 of the Code) to purchase
100,000 shares of the Company's Common Stock, at an exercise price equal to the then NASDAQ market price as of the close of the markets on the day before that Board meeting. 

        Twenty-five
percent (25%) of the shares subject to the above option shall vest one year after your start date and 1/36th of the remaining shares subject to the
option shall vest monthly thereafter, so that the option shall be fully vested and exercisable four years from your start date, subject to your continued service to the Company on the relevant vesting
dates. In all other respects the option shall be subject to the terms, definitions and provisions of the Company's Stock Plan and the stock option agreement by and between you and the Company, both of
which documents are incorporated herein by reference. 

Change of Control, Additional Accelerated Vesting and Related Items  

        In addition to the vesting schedule as set forth above, in the event you are terminated as a result of an Involuntary Termination other than for Cause or
Disability within 12 months after a Change of Control, one hundred percent (100%) of the Shares subject to the above option shall be vested upon the date of such termination, provided that you
sign a general release in a commercially customary form prescribed by the Company, which releases and discharges all known and unknown claims that 

 

you may have against the Company or persons and entities affiliated with the Company, and a covenant not to sue or prosecute any legal action or proceeding based upon such claims. For the purposes of
this paragraph, the following terms shall have the following meanings: 

	A)
	"Cause"
shall mean

	(i)
	Gross
and willful failure to perform services:

	(ii)
	Conviction
of, or a plea of "guilty" or "no contest" to, a felony under the laws of the United States or any state thereof, if such felony either is
work-related or materially impairs your ability to perform services for the Company:

	(iii)
	A
material breach of fiduciary duty, including fraud, embezzlement, dishonesty or any intentional action that materially injures the Company as
determined in good faith by the Company's Board of Directors;

	(iv)
	Death;

	(v)
	A
material breach of the Confidential Information Agreement. 

In
all of the foregoing cases, the Company shall provide written notice to you indicating in reasonable detail the event or circumstances that constitute Cause under this Agreement, and the Company
will provide you with forty-five days to cure such breach or failure prior to termination for Cause. During such 45-day cure period, the Company may place you on unpaid leave. 

	B)
	"Change
in Control" shall mean (i) any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") who
becomes the "beneficial owner" (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the
total voting power represented by the Company's then outstanding voting securities, provided, however, that Change in Control shall not include any change resulting from any capital financings of the
Company; or (ii) the consummation of the sale or disposition by the Company of all or substantially all of the Company's assets; or (iii) the consummation of a merger or consolidation of
the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting
securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

	C)
	"Disability"
shall mean that you physically or mentally are unable regularly to perform your duties hereunder for a period in excess of sixty (60) consecutive days or more than
ninety (90) days in any consecutive twelve (12) month period. The Company shall make a good faith determination of whether you are physically or mentally unable to regularly perform your
duties subject to its review and consideration of any physical and/or mental health information provided to it by you.

	D)
	"Involuntary
Termination" shall mean (i) without your express written consent, the substantial reduction your duties or responsibilities relative to your duties or
responsibilities in effect immediately prior to such reduction; provided, however, that a reduction in duties or responsibilities solely by virtue of the Company being acquired and made part of a
larger entity (as, for example, when the Vice President of Company remains as such following a Change of Control and is not made the Vice President of the acquiring corporation) shall not constitute
an "Involuntary Termination"; (iii) without your express written consent, a material reduction by the Company in your base compensation as in effect immediately prior to such 

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reduction;
(iv) a material reduction by the Company in the kind or level of employee benefits package is significantly reduced; (v) your relocation to a facility or a location more than
50 miles from your then present location, without your express written consent; (vi) any purported termination of you by the Company which is not effected for death or Disability or for Cause;
or (vii) the failure of the Company to obtain the assumption of this agreement by any successors. 

Severance  

        If your employment is terminated for any reason other than for Cause prior to the first six months from your start date, you shall continue to receive your then
basic salary for three months following the date of your termination (the "Severance Period"). If you obtain other employment during the Severance Period, the total amount of your earnings from other
sources will be deducted from your severance payments. You agree to notify the Company of other employment during the Severance Period, and provide the Company with complete information regarding your
earnings. Except for Change of Control as set forth above, the vesting of your stock options shall be accelerated such that you shall be entitled to purchase a number of shares of the Company's Common
Stock pursuant to the Stock Option Agreement as if the Company had employed you for one year. 

        If
your employment is terminated for any reason other than Cause after your first six months of service, you shall continue to receive your then basic salary for six months following the
date of your termination subject to the credit for other earnings described above. Except for Change of Control as set forth above, your stock options shall continue to vest during the six month
severance period such that you shall be entitled to purchase a number of shares of the Company's Common Stock pursuant to the Stock Option Agreement as if the Company had employed you through the end
of that six month severance period. 

        Your
receipt of the severance benefits described above will be contingent upon your signing a general release in a commercially customary form prescribed by the Company, which releases
and discharges all known and unknown claims that you may have against the Company or persons and entities affiliated with the Company, and a covenant not to sue or prosecute any legal action or
proceeding based upon such claims. Additionally, your receipt of the severance benefits described above also will be contingent upon your compliance with the noncompetition and nonsolicitation
obligations set forth below, and your obligations under the Company's Employment Confidential Information, Invention Assignment, and Arbitration Agreement. 

Noncompetition and Nonsolicitation  

        During the severance periods described above, you agree that you will not, directly or indirectly, engage in (whether as an employee, consultant, proprietor,
partner, director or otherwise) or have any ownership interest in, or participate in the financing operation, management, control of, any person, firm, corporation or business that engages in any
business activity that is competitive with the Company (or of any Affiliated Company), provided, however, that nothing contained in this paragraph shall be construed to prohibit you from purchasing
and owning (directly or indirectly) up to one percent (1%) of the capital stock or other securities of any corporation or other entity whose stock or securities are traded on any national or regional
securities exchange or the national over-the-counter market and such ownership shall not constitute a violation of this paragraph. 

        Additionally,
for a period of one (1) year following the termination of your employment for any reason, you agree that you will not, directly or indirectly, (A) divert or
attempt to divert from the Company (or any Affiliated Company) any business of any kind in which it is engaged, including, without limitation, the solicitation of or interference with any of its
suppliers or customers; or (B) solicit, hire, recruit, or employ any person or entity who is employed by or has a contractual 

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relationship with the Company, or encourage any person or entity who is employed by or has a contractual relationship with the Company to terminate their employment or contractual relationship with
the Company. 

Benefit Plans  

        You shall be entitled to participate, to the extent permitted by law, in the medical insurance plans and other benefits offered by the Company. You should note
that the Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time. 

Vacation  

        You shall also be eligible to receive two weeks of paid vacation per year, which, if unused, shall accrue in accordance with the Company's standard benefit
policies. 

Start Date  

        We hope that you will be able to start with the Company as soon as possible. However, in any case your start date will be on or prior to April 30, 2002. 

        The
Company is excited about your joining and looks forward to a beneficial and fruitful relationship. Nevertheless, you should be aware that your employment with the Company is for no
specific period and constitutes at-will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its
employment relationship with you at any time, with or without cause and with at least one-month notice. We request that, in the event of resignation, you give the Company at least one
month's notice. You understand and agree that neither your job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for
modification, amendment, or extension, by implication or otherwise, of your employment with the Company. 

Miscellaneous  

        For purpose of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the
United States. Such documentation must be provided to the Company within three (3) business days of your date of hire, or our employment relationship with you may be terminated. 

        This
Agreement and all benefits due you hereunder shall inure to the benefit of, and be enforceable by, your personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 

        We
also ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by
the Company or limit the manner in which you may be employed. It is the Company's understanding that any such agreements will not prevent you from performing the duties of your position and you
represent that such is the case. 

        You
agree that you will not enter into any agreements with another entity that requires you to be an employee or consultant, in name or duties, during your employment with the Company.
Moreover, you agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the
business in which the Company is now involved or become involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company.
Similarly, you agree not to bring any third party confidential information to the Company, including that of your 

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former employer, and that in performing your duties for the Company you will not in any way utilize any such information. 

        As
a Company employee, you will be expected to abide by Company rules and standards. You will be specifically required to sign an acknowledgment that you have read and that you
understand the Company's rules of conduct with are included in the Company Handbook, when it is prepared. As a condition of your employment, you are also required to sign and comply with an
Employment, Confidential Information, Invention Assignment and Arbitration Agreement which requires, among other provisions, the assignment of patent rights to any invention made during your
employment at the Company, and non-disclosure of Company proprietary information. In the event of any dispute or claim relating to or arising out of your employment relationship, you and
the Company agree that (i) any and all disputes between you and the Company shall be fully and finally resolved by binding arbitration, (ii) you are waiving any and all rights to a jury
trial but all court remedies will be available in arbitration, (iii) all disputes shall be resolved by a neutral arbitrator who shall issue a written opinion, (iv) the arbitration shall
provide for adequate discovery, and (v) the Company shall pay all arbitration fees, excluding attorneys fees and legal costs. Please note that we must receive your signed Agreement before your
first day of employment. 

        This
letter shall be governed by the internal substantive laws, but not the choice of law rules, of the State of California. 

        In
the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, this letter shall continue in full force and
effect without such provision. In the event that there is any conflict between this offer letter and your Stock Option Plan or Stock Option Agreement, this offer letter will govern. 

        To
indicate your acceptance of the Company's offer, please sign and date this letter in the space provided below. A duplicate original is enclosed for your records. This letter, along
with any agreements relating to proprietary rights between you and the Company, sets forth the terms of your employment with the Company and supersedes any prior representations or agreements
including, but not limited to, any representation made during your recruitment, interviews or pre employment negotiations, whether written or oral. This letter, including, but not limited to, its
at-will employment provision, may not be modified or amended except by a written agreement signed by the Company's Chief Executive Officer and you. This offer of employment will terminate
if it is not accepted, signed and returned by March 29, 2002. 

        Brian,
we all look forward to working with you at Raining Data, and believe that your contributions will be significant in moving the Company into its new market opportunities. 

Best
regards, 

/s/
Carlton H. Baab 

Carlton
H. Baab

President & CEO

Raining Data Corporation 

	AGREED AND ACCEPTED:	 	 
	

/s/ BRIAN C. BEZDEK
 Brian C. Bezdek	
 	

April 3, 2002
 Date

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Exhibit 10.6

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