Document:

Exhibit 10.16

 

FLEETWOOD ENTERPRISES, INC.

ELDEN L. SMITH STOCK OPTION PLAN AND AGREEMENT

 

THIS
STOCK OPTION PLAN AND AGREEMENT (this “Agreement”)
is made effective as of March 8, 2005 (the “Grant Date”), by and between FLEETWOOD ENTERPRISES, INC.,
a Delaware corporation (the “Company”),
and Elden L. Smith (“Optionee”).

 

A.  The Company and Optionee have entered into
that certain Employment Agreement dated as of [the Grant Date] pertaining to
Optionee’s appointment to the office of President and Chief Executive Officer
(the “Employment Agreement”).

 

B.  As a part of Optionee’s appointment, and
effective on the Grant Date, the Company has granted to Optionee a nonstatutory
stock option (the “Option”) to
purchase shares of the common stock of the Company (the “Common Stock”) on the terms and conditions
set forth herein. This Agreement memorializes the terms and conditions upon
which the board of directors of the Company (the “Board”) granted the Option to Optionee.

 

NOW,
THEREFORE, in consideration of the foregoing and of the mutual covenants set
forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

1.  Grant of Option.  Optionee may, at Optionee’s election and upon
the terms and conditions set forth herein, purchase all or any part of an
aggregate of 79,000 shares of Common Stock (the “Optioned Shares”) at the price per share equal to $8.91 (the “Option Price”). The Option Price equals the
closing price of the Common Stock on the Grant Date.

 

2.  Vesting Schedule.  The Option shall vest and become exercisable
according to the following vesting schedule:

 

Stock
Options granted by this Agreement shall, as provided in more detail in the
Plan, be exercisable as follows:

 

A.                                   One-third of the options granted hereby shall
become exercisable twelve months from the date hereof; one-third of the options
granted hereby shall become exercisable twenty-four months from the date
hereof; and one-third of the options granted hereby shall become exercisable
thirty-six months from the date hereof, in each case assuming that Optionee has
been continuously employed by the Company, a subsidiary or affiliate during
such periods.  Fractional options will
not be granted.  If the total number of
options granted hereby is not divisible evenly by three, options exercisable
after the first twelve months hereof, and after the second twelve months
hereof, if necessary, shall be increased by one, respectively, so that options
covering the three periods equal the total number of options granted hereby.

 

B.                                     Once exercisable, Options generally expire if
not exercised upon the earlier to occur of (i) the periods specified in Section 5
of this Plan, or (ii) ten years after the date of grant of such
Option.  For this Option Grant, however,
the Plan is modified as described on Annex A delivered
to you with this Agreement.

 

3.  Exercise of Option.

 

(a)          Extent of Exercise.  The Option may be exercised at the time or
after installments vest as specified in Section 2
to this Agreement with respect to all or part of the Optioned Shares covered by
such vested installments, subject to the further restrictions contained in this
Agreement. In the event that Optionee

 

 

exercises the Option for less than the full
number of Optioned Shares included within a vested installment, Optionee shall
be entitled to exercise the Option (in one or more subsequent increments) for
the balance of the Optioned Shares included in said vested installment; provided, however, that in no event shall
Optionee be entitled to exercise the Option for fractional shares of Common
Stock or for a number of shares exceeding the maximum number of Optioned
Shares.

 

(b)         Procedure.  The Option shall be deemed to be exercised
when the Secretary of the Company receives written notice of exercise from or
on behalf of Optionee, together with payment of the applicable Option Price and
any amounts required under Section 3(c).
The Option Price shall be payable upon exercise in (i) legal tender of the
United States; or (ii) such other consideration as the Company may deem
acceptable in any particular instance; provided,
however, that the Company may, in its discretion and to the extent
permitted by applicable law, including Section 13 of the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”), allow exercise of the Option in a broker-assisted or similar
transaction in which the Option Price and any amounts required under Section 3(c) are not received by
the Company until promptly after exercise.

 

(c)          Withholding
Taxes.  Whenever shares of Common Stock are to be
issued upon exercise of the Option, the Company shall have the right to require
Optionee to remit to the Company an amount sufficient to satisfy any federal,
state and local withholding tax requirements prior to such issuance. The
Company may, in its discretion, allow satisfaction of tax withholding
requirements by accepting delivery of Common Stock.

 

4.              Term of Option.  Unless
earlier terminated as provided in Section 5,
the Option shall automatically expire and terminate, and thereby become
unexercisable, on the tenth (10th) anniversary of the Grant Date.

 

5.              Effect of Termination.

 

(a)  Termination for Cause. 
In the event of termination of Optionee’s employment for Cause, this
Option, whether vested or unvested, shall terminate and expire as of the date
of termination. For purposes hereof, “Cause” shall be as defined in the
Employment Agreement.

 

(b)  Death.  In the event
of the death of Optionee during the term of the Option, Options will expire and
become unexercisable as of the earlier of (A) the date the options expire
in accordance with their terms or (B) one year after the date of death,
and the vesting of all or any portion of any options that had not become
exercisable on or prior to the date of death will be accelerated.  In the event of the death of Optionee while
he is an employee of the Company or within the period after termination of such
status during which he is permitted to exercise the Option, the Option may be
exercised by any person or persons designated by Optionee on a beneficiary
designation form adopted by the Company for such purpose or, if there is no
effective beneficiary designation form on file with the Company, by the
executors or administrators of Optionee’s estate or by any person or persons
who shall have acquired the Option directly from Optionee by his will or the
applicable laws of descent and distribution.

 

(c)  Disability.  In the
event of Disability of Optionee during the term of the Option, Options will
expire and become unexercisable as of the earlier of (A) the date the Options
expire in accordance with their terms or (B) one year after the date of
termination and the vesting of all or any portion of any Options that had not
become exercisable on or prior to the date of retirement will continue on the
same schedule as before without acceleration.  For purposes hereof, “Disability” shall be as
defined in Optionee’s Employment Agreement.(d)  Normal Retirement.  In the event of the normal retirement of
Optionee, during the term of the Option, Options will expire and become
unexercisable as of the earlier of (A) the date the Options expire in
accordance with their terms or (B) three years after the date of
retirement, and the vesting of all or any portion of any Options that had not
become exercisable on or prior to the date of retirement will be accelerated.  “Normal
Retirement” means the Optionee’s employment with the Company has
terminated and the Optionee has
reached age 65.

 

(e)  Early Retiremen.t Upon Early Retirement (defined below), Options
will expire and become unexercisable as of the earlier of (A) the date the
Options expire in accordance with their terms or (B) two

 

2

 

years after the date of retirement, and the
vesting of all or any portion of any Options that had not become exercisable on
or prior to the date of retirement will continue on the same schedule as
before without acceleration.  “Early Retirement” means the Optionee’s
employment with the Company has terminated and
the Optionee has reached age 55 and either
(a) the Optionee’s age plus years of service equals at least 70 if the
Optionee has had no break in employment or
(b) the Optionee’s age plus years of service equals at least 75 if the
Optionee has had a break in service.

 

(f)  Other Terminations. 
In the event of all other terminations of employment, Options will
expire and become unexercisable as of the earlier of (A) the date the Options
expire in accordance with their terms or (B) 90 days after the date of
termination, and all Options that are unvested at the date of termination will
be terminated and forfeited..

 

6.  Anti-Dilution Adjustments.  If
the outstanding shares of Common Stock of the Company are increased, decreased,
changed into or exchanged for a different number or kind of shares of the
Company through reorganization, recapitalization, reclassification, stock
dividend, stock split or reverse stock split, upon authorization of the Board
or the Compensation Committee of the Board (the “Committee”), an appropriate and proportionate adjustment shall
be made in the number or kind of Optioned Shares and the Option Price; provided, however, that no such adjustment
need be made if, upon the advice of counsel, the Board or the Committee
determines that such adjustment may result in the receipt of federally taxable
income to Optionee, to holders of other derivative securities of the Company or
holders of Common Stock or other classes of the Company’s securities.

 

7.  Change in Control.

 

(a)  Effect of Change in Control.  As
of the effective time and date of any Change in Control, this Option (whether
or not vested) will automatically terminate unless: (i) provision is made
in writing in connection with such transaction for the continuance and
assumption of this Option, or for the substitution for such new awards covering
the securities of a successor entity or an affiliate thereof, with appropriate
adjustments as to the number and kind of securities and exercise prices or other
measurement criteria, in which event this Option will continue or be replaced,
as the case may be, in the manner and under the terms so provided; or (ii) the
Board otherwise provides in writing for such adjustments as it deems
appropriate in the terms and conditions of this Option (whether or not vested),
including, without limitation, (A) accelerating the vesting of this
Option, and/or (B) providing for the cancellation of this Option and its
automatic conversion into the right to receive the securities, cash or other
consideration that a holder of the shares underlying this Option would have
been entitled to receive upon consummation of such Change in Control had such
shares been issued and outstanding immediately prior to the effective date and
time of the Change in Control (net of the appropriate option exercise prices).
If, pursuant to the foregoing provisions of this Section 7(a), this Option terminates by reason of the
occurrence of a Change in Control without provision for any of the action(s)
described in clause (i) or (ii) hereof, then subject to Section 4 of this Agreement, the
Optionee will have the right, at such time prior to the consummation of the
Change in Control as the Board designates, to exercise or receive the full
benefit of this Option to the full extent not theretofore exercised, including
any installments which have not yet become vested.

 

(b)  Definition of Change in Control. 
A “Change in Control” shall be as defined in the Employment
Agreement.

 

8.  Delivery of Certificates.  As soon as practicable after any proper
exercise of the Option in accordance with the provisions of this Agreement, the
Company shall deliver to Optionee at the main office of the Company, or such
other place as shall be mutually acceptable, a certificate or certificates
representing such shares of Common Stock to which Optionee is entitled upon
exercise of the Option.

 

9.  No Rights in Shares Before
Issuance and Delivery.  Neither Optionee, his estate nor his
transferees by will or the laws of descent and distribution shall be, or have
any rights or privileges of, a stockholder of the Company with respect to any
shares issuable upon exercise of the Option, unless and until certificates
representing such shares shall have been issued and delivered. No adjustment will
be made for a dividend or their rights where the record date is prior to the
date such stock certificates are issued.

 

3

 

10.  Nonassignability.  The Option is not assignable or transferable
by Optionee except by will, by the laws of descent and distribution, pursuant
to a qualified domestic relations order, or, in the discretion of the Company
and under circumstances that would not adversely affect the interests of the
Company, pursuant to a transfer for estate planning purposes or pursuant to a
nominal transfer that does not result in a change in beneficial ownership. The
transfer by a Participant to a trust created by the Participant for the benefit
of the Participant or the Participant’s family which is revocable at any and
all times during the Participant’s lifetime by the Participant and as to which
the Participant is the sole acting Trustee during his or her lifetime, will
ordinarily not be deemed to be a transfer for purposes of the Plan. Any
permitted transfer of the Option shall not prevent or otherwise modify
termination of the Option and its vesting following Optionee’s termination of
employment (as provided in Section 5
above) or in connection with a Change in Control (as provided in Section 7 above).   During the
lifetime of Optionee, the Option shall be exercisable only by Optionee (or
Optionee’s permitted transferee(s)) or his or their guardian or legal
representative.

 

11.  Certain Representations and Warranties.   Optionee expressly acknowledges, represents
and agrees as follows:

 

(a)  If Optionee proposes to
transfer all or any part of the Option or the Optioned Shares or uses Common
Stock of the Company to pay the Option Price, Optionee has been advised to
consult with a competent tax advisor regarding the applicable tax consequences
prior to making such transfer or utilizing such Common Stock to exercise the
Option;

 

(b)  Optionee has been advised to
consult with a competent federal securities law advisor as to the reporting
obligations and potential liability for profits under Section 16 of the
Exchange Act with respect to the granting, exercise and transfer of the Option;
and

 

(c)  Optionee hereby represents,
warrants, acknowledges and covenants to the Company that Optionee is, and upon
exercise of the Option will be, acquiring the Option and the Optioned Shares
for his own account, not as nominee or agent, for investment and not with a
view to, or for resale in connection with, any distribution or public offering
thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). Optionee does not have
any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to any third person with respect to the Option
or any of the Optioned Shares.

 

12.  No Employment Rights or Obligations.   This Agreement does not confer upon Optionee
any right to continue as an employee of the Company or one of its subsidiaries,
nor does it limit in any way the right of the Company or a subsidiary to
terminate Optionee’s services to the Company or the subsidiary at any time,
with or without cause. Unless otherwise set forth in a
written agreement binding upon the Company or the subsidiary, Optionee’s
employment by the Company or a subsidiary is “at will.” Any questions as
to whether and when there has been a termination of Optionee’s employment, the
reason (if any) for such termination, and/or the consequences thereof under the
terms of this Agreement, shall be determined by the Board in its sole
discretion, and the Board’s determination thereof shall be final, binding and
conclusive.

 

13.  Governing Law. 
 This Agreement shall be governed by,
interpreted under, and construed and enforced in accordance with the internal
laws, and not the laws pertaining to conflicts or choice or laws, of the State
of California applicable to agreements made and to be performed wholly within
the State of California.

 

14.  Agreement Binding on Successors.   The terms of this Agreement shall be binding
upon the executors, administrators, heirs, successors, transferees and assigns
of Optionee.

 

15.  Necessary Acts.  Optionee agrees to perform all acts and
execute and deliver any documents that may be reasonably necessary to carry out
the provisions of this Agreement, including but not limited to all acts and
documents related to compliance with federal and/or state securities and/or tax
laws.

 

4

 

16.  Restrictions Under
Applicable Laws and Regulations.

 

(a)  Government Approvals.  If at any time the Company determines, in its
discretion, that the listing, registration or qualification of the Optioned
Shares upon any securities exchange or interdealer quotation system or under
any federal, state or foreign law, or the consent or approval of any government
or regulatory body, is necessary or desirable as a condition of, or in
connection with, the granting of this Option or the issuance of the Optioned
Shares, this Option may not be exercised as a whole or in part unless and until
such listing, registration, qualification, consent or approval has been
effected or obtained free of any conditions not acceptable to the Company.
During the term of this Option, the Company will use its reasonable efforts to
seek to obtain from the appropriate governmental and regulatory agencies any
requisite qualifications, consents, approvals or authorizations in order to
issue the Optioned Shares. The inability of the Company to obtain any such
qualifications, consents, approvals or authorizations will relieve the Company
of any liability in respect of the nonissuance or sale of the Optioned Shares.

 

(b)  No Registration Obligation;
Recipient Representations.  The Company
will be under no obligation to register or qualify the issuance of the Option or
the Optioned Shares under the Securities Act or applicable state securities
laws. Unless the issuance of the Optioned Shares has been registered under the
Securities Act, and qualified or registered under applicable state securities
laws, the Company shall be under no obligation to issue the Optioned Shares
unless they may be issued pursuant to applicable exemptions from such
registration or qualification requirements. In connection with any such exempt
issuance, the Company may require Optionee to provide a written representation
and undertaking to the Company, satisfactory in form and scope to the Company,
that the Optionee is acquiring the Optioned Shares for his own account as an
investment and not with a view to, or for sale in connection with, the distribution
of the Optioned Shares, and that he will make no transfer of the same except in
compliance with any rules and regulations in force at the time of such
transfer under the Securities Act, and other applicable law, and that if the
Optioned Shares are issued without registration, a legend to this effect
(together with any other legends deemed appropriate by the Company) may be
endorsed upon the Optioned Shares, and to the effect of any additional
representations that are appropriate in light of applicable securities laws and
rules. The Company may also order its transfer agent to stop transfers of such
shares. The Company may also require the Optionee to provide the Company such
information and other documents as the Company may request in order to satisfy
the Company as to the investment sophistication and experience of the Optionee
and as to any other conditions for compliance with any such exemptions from
registration or qualification.

 

17.  Lock-Up Agreements.  The Optionee agrees as a condition to receipt
of the Option that, in connection with any public offering by the Company of
its equity securities and upon the request of the Company and the principal
underwriter (if any) in such public offering, any Optioned Shares acquired or
that may be acquired upon exercise or vesting of this Option may not be sold,
offered for sale, encumbered, or otherwise disposed of or subjected to any
transaction that will involve any sales of securities of the Company, without
the prior written consent of the Company or such underwriter, as the case may
be, for a period of not more than 365 days after the effective date of the
registration statement for such public offering. The Optionee will, if
requested by the Company or the principal underwriter, enter into a separate
agreement to the effect of this Section 17.

 

18.  Interpretation.  Headings herein are for convenience of
reference only, do not constitute a part of the Agreement, and will not affect
the meaning or interpretation of the Agreement. References herein to Sections
are references to the referenced Section hereof, unless otherwise
specified.

 

19.  Severability.  Should
any provision of this Agreement be held to be unenforceable or invalid for any
reason, the remaining portions or provisions of this Agreement shall be
unaffected by such holding.

 

20.  Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall be deemed one instrument.

 

5

 

IN
WITNESS WHEREOF, the Company and Optionee have executed this Agreement
effective as of the Grant Date.

 

 

	
  FLEETWOOD ENTERPRISES, INC.,

  	
   

  	
  OPTIONEE

  
	
  a Delaware corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Leonard J. McGill

  	
   

  	
  /s/ Elden L. Smith

  
	
   

  	
  Leonard J. McGill

  	
   

  	
  Elden L. Smith

  
	
   

  	
  Sr. Vice President and General Counsel

  	
   

  	
   

  

 

6Exhibit 10.1

 

AMENDMENT SIX

to

SALES ALLIANCE AGREEMENT

between

SOFTWARE SPECTRUM, INC.

(as successor-in-interest to CorpSoft, Inc.)

and

INTRAWARE, INC.

 

This Amendment Six
(“Amendment Six”) amends the Sales Alliance Agreement dated June 28, 2001
between Software Spectrum, Inc., as successor-in-interest to CorpSoft, Inc.
(“Spectrum”) and Intraware, Inc. (“Intraware”), and all prior amendments
thereto (the “Agreement”).

 

1.               Term
Extension.  To provide additional
time for the parties to discuss the terms of the Agreement or a replacement
agreement, the parties hereby agree to extend the term of the Agreement until July 31,
2005.

 

Subject to the above
modifications, the Agreement shall remain in full force and effect.

 

	
  SOFTWARE
  SPECTRUM, INC.

  	
  INTRAWARE,
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ MELISSA WOMACK

  	
   

  	
  By:

  	
  /s/ JOHN J. MOSS

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Melissa Womack

  	
   

  	
  Name:

  	
  John J. Moss

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  SVP Marketing & Business Development

  	
   

  	
  Title:

  	
  SVP & General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Effective Date
  of this Amendment Six:

  	
  June 30, 2005

  	
   

  
												

 

1

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