Document:

exv10w05

 

Exhibit 10.05

Notice of Grant of Stock

Options and Option Agreement

Interwoven, Inc.

ID: 94-3221352

803 — 11th Avenue

Sunnyvale, CA 94089

Employee Name

Option Number:

Plan:

ID:

Effective
                    ,
you have been granted
a(n)                    
[Incentive/Nonqualified] Stock Option to buy                     
shares of
Interwoven, Inc. (the Company) stock at $                     per share.

The total option price of the shares granted is $                    .

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

[Vesting may occur based on achievement, at the end of a period of time, of a specified goal
or specified goals based on such factors as: annual revenue, cash position, earnings per share,
operating cash flow, market share, new product releases, net income, operating income, return on
assets, return on equity, return on investment, software license bookings, EBITDA or other
financial measure, or any other performance-related goal as approved from time to time.]

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 Stock Option Plan as
amended and the Option Agreement, all of which are attached and made a part of this document.

	 	 	 
	Interwoven, Inc.

	 	Date
	 
	 	 
	Optionee Name

	 	Date

 

 

INTERWOVEN, INC.

1999 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

          1. Grant of Option. Interwoven, Inc. (the “Company”) hereby grants to Optionee an
option (this “Option”) to purchase up to the total number of shares of Common Stock of the Company
set forth in the Notice of Grant (collectively, the “Shares”) at the exercise price set forth in
the Notice of Grant (the “Exercise Price”), subject to all of the terms and conditions of the
Notice of Grant, this Stock Option Agreement (the “Agreement”) and the 1999 Equity Incentive Plan
(the “Plan”). If designated as an Incentive Stock Option in the Notice of Grant, the Option is
intended to qualify as an “incentive stock option” (“ISO”) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), to the extent permitted under Code Section
422. Capitalized terms not defined herein shall have the meaning ascribed to them in the Plan.

          2. Vesting; Exercise Period.

               2.1 Vesting of Shares. The Option shall be exercisable as it vests, unless otherwise
indicated in the Notice of Grant. Subject to the terms and conditions of the Plan and the
Agreement, the Option shall vest and become exercisable as to portions of the Shares pursuant to
the vesting schedule specified in the Notice of Grant, provided that Optionee has continuously
provided services to the Company, or any Parent or Subsidiary of the Company, at all times during
the relevant month.

               2.2 Vesting of Options. Shares that are vested pursuant to the vesting schedule set
forth in the Notice of Grant are “Vested Shares.” Shares that are not vested pursuant to the
schedule set forth in the Notice of Grant are “Unvested Shares.”

               2.3 Expiration. The Option shall expire on the expiration date set forth in the
Notice of Grant, and must be exercised, if at all, on or before the earlier of the expiration date
of the Option or the date on which the Option is earlier terminated in accordance with the
provisions of Section 3 hereof.

          3. Termination.

               3.1 Termination for Any Reason Except Death, Disability or Cause. If Optionee is
Terminated for any reason except Optionee’s death, Disability or Cause, then the Option, to the
extent (and only to the extent) that it is vested in accordance with the schedule set forth in the
Notice of Grant on the Termination Date, may be exercised by Optionee no later than three (3)
months after the Termination Date, but in any event no later than the expiration date.

2

 

Interwoven, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

               3.2 Termination Because of Death or Disability. If Optionee is Terminated
because of death or Disability of Optionee (or the Optionee dies within three (3) months after
Termination other than for Cause or because of Disability), then the Option, to the extent that it
is vested in accordance with the schedule in the Notice of Grant on the Termination Date, may be
exercised by Optionee (or Optionee’s legal representative or authorized assignee) no later than
twelve (12) months after the Termination Date, but in any event no later than the expiration date.
Any exercise after three months after the Termination Date when the Termination is for any reason
other than Optionee’s death or disability, within the meaning of Code Section 22(e)(3), shall be
deemed to be the exercise of a nonqualified stock option.

               3.3 Termination for Cause. If Optionee is Terminated for Cause, the Option will
expire on the Optionee’s date of Termination.

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

          4. Manner of Exercise.

               4.1 Stock Option Exercise Agreement. To exercise the Option, Optionee (or in the case
of exercise after Optionee’s death, Optionee’s executor, administrator, heir or legatee, as the
case may be) must deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by the Company from
time to time (the “Exercise Agreement”), which shall set forth, inter alia,
Optionee’s election to exercise the Option, the number of shares being purchased, any restrictions
imposed on the Shares and any representations, warranties and agreements regarding Optionee’s
investment intent and access to information as may be required by the Company to comply with
applicable securities laws. If someone other than Optionee exercises the Option, then such person
must submit documentation reasonably acceptable to the Company that such person has the right to
exercise the Option.

               4.2 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.

               4.3 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:

	 	(a)	 	by cancellation of indebtedness of the Company to the Optionee;
	 
	 	(b)	 	by surrender of shares of the Company’s Common Stock that either: (1) have been
owned by Optionee 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 a
promissory note, such note has been fully paid with respect to such

3

 

Interwoven, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

shares); or (2) were obtained by Optionee in the open public market; and (3)
are clear of all liens, claims, encumbrances or security interests;

	 	(c)	 	by waiver of compensation due or accrued to Optionee for services rendered;
	 
	 	(d)	 	provided that a public market for the Company’s stock exists: (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an “NASD Dealer”) whereby Optionee
irrevocably elects to exercise this Option and to sell a portion of the Shares so
purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits
upon receipt of such Shares to forward the exercise price directly to the Company;
or (2) through a “margin” commitment from Optionee and an NASD Dealer whereby
Optionee irrevocably elects to exercise this Option and to pledge the Shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD
Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably
commits upon receipt of such Shares to forward the Exercise Price directly to the
Company; or
	 
	 	(e)	 	by any combination of the foregoing.

               4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of the Option,
Optionee must pay or provide for any applicable federal or state withholding obligations of the
Company. If the Committee permits, Optionee 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 Optionee by deducting the Shares retained from the Shares issuable upon
exercise.

               4.5 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 Optionee, Optionee’s authorized assignee, or
Optionee’s legal representative, and shall deliver certificates representing the Shares with the
appropriate legends affixed thereto.

          5. Notice of Disqualifying Disposition of ISO Shares. To the extent the Option is an
ISO, if Optionee 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 Optionee upon exercise of the Option, then Optionee shall
immediately notify the Company in writing of such disposition.

          6. 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 Optionee 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. Optionee 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.

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Interwoven, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

          7. Nontransferability of Option. Except as otherwise set forth in Section 11 of the
Plan, 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 Optionee only by Optionee. The terms
of the Option shall be binding upon the executors, administrators, successors and assigns of
Optionee.

          8. Tax Consequences. Set forth below is a brief summary as of the date the Board
adopted the Plan of some of the federal tax consequences of exercise of the Option and disposition
of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE
SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING
OF THE SHARES.

               8.1 Exercise of Incentive Stock Option. To the extent the Option qualifies as an ISO,
there will be no regular federal income tax liability upon the exercise of the Option, although the
excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise
Price will be treated as a tax preference item for federal income tax purposes and may subject the
Optionee to the alternative minimum tax in the year of exercise.

               8.2 Exercise of Nonqualified Stock Option. To the extent the Option does not qualify
as an ISO, there may be a regular federal income tax liability upon the exercise of the Option.
Optionee will be treated as having received compensation income (taxable at ordinary income tax
rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise
over the Exercise Price. The Company may be required to withhold from Optionee’s compensation or
collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage
of this compensation income at the time of exercise.

               8.3 Disposition of Shares. The following tax consequences may apply upon disposition
of the Shares.

                    a. Incentive Stock Options. If the Shares are held for more than twelve (12) months
after the date of the transfer of the Shares pursuant to the exercise of an ISO and are disposed of
more than two (2) years after the date of grant, any gain realized on disposition of the Shares
will be treated as capital gain for federal income tax purposes. If Shares purchased under an ISO
are disposed of within the applicable one (1) year or two (2) year period, any gain realized on
such disposition will be treated as compensation income (taxable at ordinary income rates) to the
extent of the excess, if any, of the fair market value of the Shares on the date of exercise over
the Exercise Price.

                    b. Nonqualified Stock Options. If the Shares are held for more than twelve (12)
months after the date of the transfer of the Shares pursuant to the exercise of an NQSO, any gain
realized on disposition of the Shares will be treated as long-term capital gain.

                    c. Withholding. The Company may be required to withhold from Participant’s
compensation or collect from the Participant and pay to the applicable taxing authorities an amount
equal to a percentage of the compensation income.

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Interwoven, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

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

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

          11. Entire Agreement. The Plan is incorporated herein by reference. This Agreement,
the Notice of Grant, the Plan and the Exercise Agreement constitute the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof and supersede all
prior understandings and agreements with respect to such subject matter.

          12. 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 Optionee shall
be in writing and addressed to Optionee 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: personal delivery; three (3) days after deposit in the
United States mail by certified or registered mail (return receipt requested); one (1) business day
after deposit with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile.

          13. 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 Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns.

          14. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to
choice of law or conflict of law.

6

 

EXHIBIT A

STOCK OPTION EXERCISE AGREEMENT

 

 

Exhibit A

INTERWOVEN, INC.

1999 EQUITY INCENTIVE PLAN (the “Plan”)

STOCK OPTION EXERCISE AGREEMENT

     I hereby elect to purchase the number of shares of Common Stock of Interwoven, Inc. (the
“Company”) as set forth below:

	 	 	 
	Optionee
	 	 
	 

	 	 
	Social Security Number
	 	 
	 

	 	 
	 
	 	 
	Address:
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	Type of Option:

	 	[  ]  Incentive Stock Option
	 

	 	[  ]  Nonqualified Stock Option

	 	 	 
	Number of Shares Purchased:
	 	 
	 

	 	 
	Purchase Price per Share:
	 	 
	 

	 	 
	 
	 	 
	                    
	 	 
	Aggregate Purchase Price:
	 	 
	 

	 	 
	Date of Option Agreement:
	 	 
	 

	 	 
	 
	 	 
	Exact Name of Title to Shares:
	 	 
	 

	 	 
	 
	 	 
	 

1. Delivery of Purchase Price. Optionee hereby delivers to the Company the Aggregate
Purchase Price, to the extent permitted in the Stock Option Agreement (the “Option
Agreement”) and Notice of Grant as follows (check as applicable and complete):

	 	 	 
	[  ]

	 	in cash (by check) in the amount of
 $           
         
               
     , receipt
of which is acknowledged by the Company;
	 
	 	 
	[  ]

	 	by cancellation of indebtedness of the Company to Optionee in the
amount of $                                        ;
	 
	 	 
	[  ]

	 	by delivery of                                          fully-paid,
nonassessable and vested shares of the Common Stock of the Company
owned by Optionee for at least six (6) months prior to the date
hereof (and which have been paid for within the meaning of SEC Rule
144), or obtained by Optionee in the open public market, and owned
free and clear of all liens, claims, encumbrances or security
interests, valued at the current Fair Market Value of
$                                         per share;
	 
	 	 
	[  ]

	 	by the waiver hereby of compensation due or accrued to Optionee for
services rendered in the amount of
$          
                      
        ;
	 
	 	 
	[  ]

	 	through a “same-day-sale” commitment, delivered herewith, from
Optionee and the NASD Dealer named therein, in the amount of
$                                        ; or
	 
	 	 
	[  ]

	 	through a “margin” commitment, delivered herewith from Optionee and
the NASD Dealer named therein, in the amount of
$                                        .

2. Tax Consequences. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE TAX CONSEQUENCES
AS A RESULT OF OPTIONEE’S PURCHASE OR DISPOSITION OF THE SHARES. OPTIONEE REPRESENTS THAT
OPTIONEE HAS CONSULTED WITH ANY TAX CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH
THE PURCHASE OR DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR
ANY TAX ADVICE.

3. Entire Agreement. The Plan, Notice of Grant and Option Agreement are incorporated herein
by reference. This Exercise Agreement, the Plan, Notice of Grant and the Option Agreement
constitute the entire agreement and understanding of the parties and supersede in their
entirety all prior understandings and agreements of the Company and Optionee with respect to
the subject matter hereof, and are governed by California law except for that body of law
pertaining to choice of law or conflict of law.

	 	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Signature of Optionee

 

 

Spousal Consent

     I acknowledge that I have read the foregoing Stock Option Exercise Agreement (the “Agreement”)
and that I know its contents. I hereby consent to and approve all of the provisions of the
Agreement, and agree that the shares of the Common Stock of Interwoven, Inc. purchased thereunder
(the “Shares”) and any interest I may have in such Shares are subject to all the provisions of the
Agreement. I will take no action at any time to hinder operation of the Agreement on these Shares
or any interest I may have in or to them.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Date:                                        
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Signature of Optionee’s Spouse	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Spouse’s Name — Typed or Printed	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Optionee’s Name — Typed or Printed	 	 	 	 

 

 

INTERWOVEN, INC.

1999 EQUITY INCENTIVE PLAN

REVISED STOCK OPTION AGREEMENT

(Non-Standard )

     For use only with Option number                      granted on                                         

          1. Grant of Option. Interwoven, Inc. (the “Company”) hereby grants to Optionee an
option (this “Option”) to purchase up to the total number of shares of Common Stock of the Company
set forth in the Notice of Grant (collectively, the “Shares”) at the exercise price set forth in
the Notice of Grant (the “Exercise Price”), subject to all of the terms and conditions of the
Notice of Grant, this Stock Option Agreement (the “Agreement”) and the 1999 Equity Incentive Plan
(the “Plan”). If designated as an Incentive Stock Option in the Notice of Grant, the Option is
intended to qualify as an “incentive stock option” (“ISO”) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), to the extent permitted under Code Section
422. Capitalized terms not defined herein shall have the meaning ascribed to them in the Plan.

          2. Vesting; Exercise Period.

               2.1 Vesting of Shares. The Option shall be exercisable as it vests, unless otherwise
indicated in the Notice of Grant. Subject to the terms and conditions of the Plan and the
Agreement, the Option shall vest and become exercisable as to portions of the Shares pursuant to
the vesting schedule specified in the Notice of Grant, provided that Optionee has continuously
provided services to the Company, or any Parent or Subsidiary of the Company, at all times during
the relevant month. Notwithstanding the provisions of the preceding sentence, however, if there is
a Sale of the Company and Participant’s employment is terminated by the Company or its
successor without Cause in connection with the Sale of the Company, then upon such termination the
Option will become vested as to an additional number of Unvested Shares equal to fifty percent
(50%) of the Shares that were Unvested Shares at the closing of the Sale of the Company.

     For purposes of this vesting acceleration provisions, “Cause” means (i) willfully engaging in
gross misconduct that is materially and demonstrably injurious to the Company; (ii) willful act or
acts of dishonesty undertaken by Participant and intended to result in substantial gain or
personal enrichment for Participant at the expense of the Company; or (iii) willful and continued
failure to substantially perform Participant’s duties with the Company or its successor (other
than incapacity due to physical or mental illness); provided that the action or conduct described
in clause (iii) above will constitute “Cause” only if such failure continues after the Board of
Directors has provided Participant with a written demand for substantial performance setting forth
in detail the specify respects in which it believes Participant has willfully and not
substantially performed his duties thereof and a reasonable opportunity (to be not less than 30

 

 

days) to cure the same. For such purpose, a termination by the Company without Cause includes a
termination of employment by Participant within 30 days following any of the following events:
(x) the assignment of any duties to Participant inconsistent with, or reflecting a materially
adverse change in, Participant’s position, duties or responsibilities with the Company (or any
successor) without Participant’s concurrence; or (y) the relocation of the Company’s principal
executive offices, or relocating Participant’s principal place of business, in excess of fifty
(50) miles from the Company’s current executive offices located in Sunnyvale, California. For
purposes of the vesting acceleration provisions of paragraph (b), the term “Sale of the Company”
means (i) the sale or other disposition of all or substantially all of the assets of the Company,
or (ii) the acquisition of the Company by another entity by means of consolidation, corporate
reorganization or merger, or other transaction or series of related transactions in which more
than fifty percent (50%) of the outstanding voting power of the Company is transferred.

               2.2 Vesting of Options. Shares that are vested pursuant to the vesting schedule set
forth in the Notice of Grant are “Vested Shares.” Shares that are not vested pursuant to the
schedule set forth in the Notice of Grant are “Unvested Shares.”

               2.3 Expiration. The Option shall expire on the expiration date set forth in the
Notice of Grant, and must be exercised, if at all, on or before the earlier of the expiration date
of the Option or the date on which the Option is earlier terminated in accordance with the
provisions of Section 3 hereof.

          3. Termination.

               3.1 Termination for Any Reason Except Death, Disability or Cause. If Optionee is
Terminated for any reason except Optionee’s death, Disability or Cause, then the Option, to the
extent (and only to the extent) that it is vested in accordance with the schedule set forth in the
Notice of Grant on the Termination Date, may be exercised by Optionee no later than three (3)
months after the Termination Date, but in any event no later than the expiration date.

               3.2 Termination Because of Death or Disability. If Optionee is Terminated because of
death or Disability of Optionee (or the Optionee dies within three (3) months after Termination
other than for Cause or because of Disability), then the Option, to the extent that it is vested in
accordance with the schedule in the Notice of Grant on the Termination Date, may be exercised by
Optionee (or Optionee’s legal representative or authorized assignee) no later than twelve (12)
months after the Termination Date, but in any event no later than the expiration date. Any
exercise after three months after the Termination Date when the Termination is for any reason other
than Optionee’s death or disability, within the meaning of Code Section 22(e)(3), shall be deemed
to be the exercise of a nonqualified stock option.

               3.3 Termination for Cause. If Optionee is Terminated for Cause, the Option will
expire on the Optionee’s date of Termination.

               3.4 No Obligation to Employ. Nothing in the Plan or this Agreement shall confer on
Optionee any right to continue in the employ of, or other relationship with, the Company or any
Parent or Subsidiary of the Company, or limit in any way the right of the

 

 

Company or any Parent or Subsidiary of the Company to terminate Optionee’s employment or other
relationship at any time, with or without Cause.

          4. Manner of Exercise.

               4.1 Stock Option Exercise Agreement. To exercise the Option, Optionee (or in the case
of exercise after Optionee’s death, Optionee’s executor, administrator, heir or legatee, as the
case may be) must deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by the Company from
time to time (the “Exercise Agreement”), which shall set forth, inter alia,
Optionee’s election to exercise the Option, the number of shares being purchased, any restrictions
imposed on the Shares and any representations, warranties and agreements regarding Optionee’s
investment intent and access to information as may be required by the Company to comply with
applicable securities laws. If someone other than Optionee exercises the Option, then such person
must submit documentation reasonably acceptable to the Company that such person has the right to
exercise the Option.

               4.2 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.

               4.3 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:

	 	(a)	 	by cancellation of indebtedness of the Company to the Optionee;
	 
	 	(b)	 	by surrender of shares of the Company’s Common Stock that either: (1) have been
owned by Optionee 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 a
promissory note, such note has been fully paid with respect to such shares); or (2) were
obtained by Optionee in the open public market; and (3) are clear of all liens,
claims, encumbrances or security interests;
	 
	 	(c)	 	by waiver of compensation due or accrued to Optionee for services rendered;
	 
	 	(d)	 	provided that a public market for the Company’s stock exists: (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an “NASD Dealer”) whereby Optionee
irrevocably elects to exercise this Option and to sell a portion of the Shares so
purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits
upon receipt of such Shares to forward the exercise price directly to the Company;
or (2) through a “margin” commitment from Optionee and an NASD Dealer whereby
Optionee irrevocably elects to exercise this Option and to pledge the Shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD
Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably
commits upon receipt of such Shares to forward the Exercise Price directly to the
Company; or

 

 

	 	(e)	 	by any combination of the foregoing.

               4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of the Option,
Optionee must pay or provide for any applicable federal or state withholding obligations of the
Company. If the Committee permits, Optionee 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 Optionee by deducting the Shares retained from the Shares issuable upon
exercise.

               4.5 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 Optionee, Optionee’s authorized assignee, or Optionee’s legal
representative, and shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

          5. Notice of Disqualifying Disposition of ISO Shares. To the extent the Option is an
ISO, if Optionee 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 Optionee upon exercise of the Option, then Optionee shall
immediately notify the Company in writing of such disposition.

          6. 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 Optionee 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. Optionee 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.

          7. Nontransferability of Option. Except as otherwise set forth in Section 11 of the
Plan, 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 Optionee only by Optionee. The terms
of the Option shall be binding upon the executors, administrators, successors and assigns of
Optionee.

          8. Tax Consequences. Set forth below is a brief summary as of the date the Board
adopted the Plan of some of the federal tax consequences of exercise of the Option and disposition
of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE
SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING
OF THE SHARES.

               8.1 Exercise of Incentive Stock Option. To the extent the Option qualifies as an ISO,
there will be no regular federal income tax liability upon the exercise of the Option, although the
excess, if any, of the fair market value of the Shares on the date of exercise

 

 

over the Exercise Price will be treated as a tax preference item for federal income tax purposes
and may subject the Optionee to the alternative minimum tax in the year of exercise.

               8.2 Exercise of Nonqualified Stock Option. To the extent the Option does not qualify
as an ISO, there may be a regular federal income tax liability upon the exercise of the Option.
Optionee will be treated as having received compensation income (taxable at ordinary income tax
rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise
over the Exercise Price. The Company may be required to withhold from Optionee’s compensation or
collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage
of this compensation income at the time of exercise.

               8.3 Disposition of Shares. The following tax consequences may apply upon disposition
of the Shares.

                    a. Incentive Stock Options. If the Shares are held for more than twelve (12) months
after the date of the transfer of the Shares pursuant to the exercise of an ISO and are disposed of
more than two (2) years after the date of grant, any gain realized on disposition of the Shares
will be treated as capital gain for federal income tax purposes. If Shares purchased under an ISO
are disposed of within the applicable one (1) year or two (2) year period, any gain realized on
such disposition will be treated as compensation income (taxable at ordinary income rates) to the
extent of the excess, if any, of the fair market value of the Shares on the date of exercise over
the Exercise Price.

                    b. Nonqualified Stock Options. If the Shares are held for more than twelve (12)
months after the date of the transfer of the Shares pursuant to the exercise of an NQSO, any gain
realized on disposition of the Shares will be treated as long-term capital gain.

                    c. Withholding. The Company may be required to withhold from Participant’s
compensation or collect from the Participant and pay to the applicable taxing authorities an amount
equal to a percentage of the compensation income.

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

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

          11. Entire Agreement. The Plan is incorporated herein by reference. This Agreement,
the Notice of Grant, the Plan and the Exercise Agreement constitute the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof and supersede all
prior understandings and agreements with respect to such subject matter.

          12. 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 Optionee shall
be in writing and addressed to Optionee 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: personal delivery; three (3) days
after deposit in the United States mail by certified or registered mail (return receipt requested);
one (1) business day after deposit with any return receipt express courier (prepaid); or one (1)
business day after transmission by facsimile.

          13. 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 Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns.

          14. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to
choice of law or conflict of law.

	 	 	 	 	 	 	 
	OPTIONEE:	 	 	 	INTERWOVEN, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Date:	 	 	 	Its: Senior Vice President and CFO
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT A

STOCK OPTION EXERCISE AGREEMENT

 

 

Exhibit A

INTERWOVEN, INC.

1999 EQUITY INCENTIVE PLAN (the “Plan”)

STOCK OPTION EXERCISE AGREEMENT

          I hereby elect to purchase the number of shares of Common Stock of Interwoven, Inc.
(the “Company”) as set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Optionee

	 	 	 	 	 	 	 	 	 	Number of Shares Purchased:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Social Security Number:	 	 	 	 	 	Purchase Price per Share:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	                    	 	 
	Address:

	 	 	 	 	 	 	 	 	 	Aggregate Purchase Price:	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Date of Option Agreement:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Type of Option:	 	[  ]	 	Incentive Stock Option	 	Exact Name of Title to Shares:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	[  ]
	 	Nonqualified Stock Option	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

1. Delivery of Purchase Price. Optionee hereby delivers to the Company the Aggregate
Purchase Price, to the extent permitted in the Stock Option Agreement (the “Option
Agreement”) and Notice of Grant as follows (check as applicable and complete):

	 	 	 
	[   ]
	 	in cash (by check) in the amount of $                                                            , receipt
of which is acknowledged by the Company;

	 	 	 

	[    ]
	 	by cancellation of indebtedness of the Company to Optionee in the
amount of $                                                            ;

	 	 	 

	[    ]
	 	by delivery of                                                              fully-paid,
nonassessable and vested shares of the Common Stock of the Company
owned by Optionee for at least six (6) months prior to the date
hereof (and which have been paid for within the meaning of SEC Rule
144), or obtained by Optionee in the open public market, and owned
free and clear of all liens, claims, encumbrances or security
interests, valued at the current Fair Market Value of
$                                         per share;

	 	 	 

	[    ]
	 	by the waiver hereby of compensation due or accrued to Optionee for
services rendered in the amount of
$            
             
            
           
              
              
    ;

	 	 	 

	[    ]
	 	through a “same-day-sale” commitment, delivered herewith, from
Optionee and the NASD Dealer named therein, in the amount of
$                                                            ; or

	 	 	 

	[    ]
	 	through a “margin” commitment, delivered herewith from Optionee and
the NASD Dealer named therein, in the amount of
$                                                                                .

2. Tax Consequences. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE TAX
CONSEQUENCES AS A RESULT OF OPTIONEE’S PURCHASE OR DISPOSITION OF THE SHARES. OPTIONEE
REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX CONSULTANT(S) OPTIONEE DEEMS ADVISABLE
IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT
RELYING ON THE COMPANY FOR ANY TAX ADVICE.

3. Entire Agreement. The Plan, Notice of Grant and Option Agreement are incorporated
herein by reference. This Exercise Agreement, the Plan, Notice of Grant and the Option
Agreement constitute the entire agreement and understanding of the parties and supersede in
their entirety all prior understandings and agreements of the Company and Optionee with
respect to the subject matter hereof, and are governed by California law except for that
body of law pertaining to choice of law or conflict of law.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature of Optionee

 

 

Spousal Consent

          I acknowledge that I have read the foregoing Stock Option Exercise Agreement (the “Agreement”)
and that I know its contents. I hereby consent to and approve all of the provisions of the
Agreement, and agree that the shares of the Common Stock of Interwoven, Inc. purchased thereunder
(the “Shares”) and any interest I may have in such Shares are subject to all the provisions of the
Agreement. I will take no action at any time to hinder operation of the Agreement on these Shares
or any interest I may have in or to them.

	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	Date:	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 

	 	Signature of Optionee’s Spouse	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 
	 	 

	 	Spouse’s Name — Typed or Printed	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 
	 	 

	 	Optionee’s Name — Typed or Printedexv10w09

 

Exhibit 10.09

Notice of Grant of Stock

Options and Option Agreement

Interwoven, Inc.

ID: 94-3221352

803 — 11th Avenue

Sunnyvale, CA 94089

Employee Name

Option Number:

Plan:

ID:

Effective     
               
 , you have been granted a(n)         
            
[Incentive/Nonqualified] Stock Option to buy          
           
shares of
Interwoven, Inc. (the Company) stock at $       
             
per share.

The total option price of the shares granted is $                    .

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

[Vesting may occur based on achievement, at the end of a period of time, of a specified goal
or specified goals based on such factors as: annual revenue, cash position, earnings per share,
operating cash flow, market share, new product releases, net income, operating income, return on
assets, return on equity, return on investment, software license bookings, EBITDA or other
financial measure, or any other performance-related goal as approved from time to time.]

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 Stock Option Plan as
amended and the Option Agreement, all of which are attached and made a part of this document.

	 	 	 
	Interwoven, Inc.

	 	Date
	 
	 	 
	Optionee Name

	 	Date

 

 

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

          1. Grant of Option. The Interwoven, Inc. (the “Company”) hereby grants to Optionee an
option (this “Option”) to purchase up to the total number of shares of Common Stock of the Company
set forth in the Notice of Grant (collectively, the “Shares”) at the exercise price set forth in
the Notice of Grant (the “Exercise Price”), subject to all of the terms and conditions of the
Notice of Grant, this Stock Option Agreement (the “Agreement”) and the 2000 Stock Incentive Plan
(the “Plan”). Capitalized terms not defined herein shall have the meaning ascribed to them in the
Plan.

          2. Vesting; Exercise Period.

               2.1 Vesting of Shares. The Option shall be exercisable as it vests, unless otherwise
indicated in the Notice of Grant. Subject to the terms and conditions of the Plan and the
Agreement, the Option shall vest and become exercisable as to portions of the Shares pursuant to
the vesting schedule specified in the Notice of Grant, provided that Optionee has continuously
provided services to the Company, or any Parent or Subsidiary of the Company, at all times during
the relevant month.

               2.2 Vesting of Options. Shares that are vested pursuant to the vesting schedule set
forth in the Notice of Grant are “Vested Shares.” Shares that are not vested pursuant to the
schedule set forth in the Notice of Grant are “Unvested Shares.”

               2.3 Expiration. The Option shall expire on the expiration date set forth in the
Notice of Grant, and must be exercised, if at all, on or before the earlier of the expiration date
of the Option or the date on which the Option is earlier terminated in accordance with the
provisions of Section 3 hereof.

          3. Termination.

               3.1 Termination for Any Reason Except Death, Disability or Cause. If Optionee is
Terminated for any reason except Optionee’s death, Disability or Cause, then the Option, to the
extent (and only to the extent) that it is vested in accordance with the schedule set forth in the
Notice of Grant on the Termination Date, may be exercised by Optionee no later than three (3)
months after the Termination Date, but in any event no later than the expiration date.

               3.2 Termination Because of Death or Disability. If Optionee is Terminated because of
death or Disability of Optionee (or the Optionee dies within three (3) months after Termination
other than for Cause or because of Disability), then the Option, to the extent that it is vested in
accordance with the schedule in the Notice of Grant on the Termination Date, may be exercised by
Optionee (or Optionee’s legal representative or authorized assignee)

2

 

Interwoven, Inc.

Stock Option Agreement

2000 Stock Incentive Plan

no later than twelve (12)months after the Termination Date, but in any event no later than the expiration date.

               3.3 Termination for Cause. If Optionee is Terminated for Cause, the Option will
expire on the Optionee’s date of Termination.

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

          4. Manner of Exercise.

               4.1 Stock Option Exercise Agreement. To exercise the Option, Optionee (or in the case
of exercise after Optionee’s death, Optionee’s executor, administrator, heir or legatee, as the
case may be) must deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by the Company from
time to time (the “Exercise Agreement”), which shall set forth, inter alia,
Optionee’s election to exercise the Option, the number of shares being purchased, any restrictions
imposed on the Shares and any representations, warranties and agreements regarding Optionee’s
investment intent and access to information as may be required by the Company to comply with
applicable securities laws. If someone other than Optionee exercises the Option, then such person
must submit documentation reasonably acceptable to the Company that such person has the right to
exercise the Option.

               4.2 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.

               4.3 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:

	 	(a)	 	by cancellation of indebtedness of the Company to the Optionee;
	 
	 	(b)	 	by surrender of shares of the Company’s Common Stock that either: (1) have been
owned by Optionee 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 a
promissory note, such note has been fully paid with respect to such shares); or (2) were
obtained by Optionee in the open public market; and (3) are clear of all liens,
claims, encumbrances or security interests;
	 
	 	(c)	 	by waiver of compensation due or accrued to Optionee for services rendered;
	 
	 	(d)	 	provided that a public market for the Company’s stock exists: (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member of the

3

 

Interwoven, Inc.

Stock Option Agreement

2000 Stock Incentive Plan

	 	 	 	National Association of Securities Dealers (an “NASD Dealer”) whereby Optionee
irrevocably elects to exercise this Option and to sell a portion of the Shares so
purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits
upon receipt of such Shares to forward the exercise price directly to the Company;
or (2) through a “margin” commitment from Optionee and an NASD Dealer whereby
Optionee irrevocably elects to exercise this Option and to pledge the Shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD
Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably
commits upon receipt of such Shares to forward the Exercise Price directly to the
Company; or
	 
	 	(e)	 	by any combination of the foregoing.

               4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of the Option,
Optionee must pay or provide for any applicable federal or state withholding obligations of the
Company. If the Committee permits, Optionee 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 Optionee by deducting the Shares retained from the Shares issuable upon
exercise.

               4.5 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 Optionee, Optionee’s authorized assignee, or Optionee’s legal
representative, and shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

          5. [INTENTIONALLY LEFT BLANK]

          6. 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 Optionee 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. Optionee 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.

          7. Nontransferability of Option. Except as otherwise set forth in Section 11 of the
Plan, 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 Optionee only by Optionee. The terms
of the Option shall be binding upon the executors, administrators, successors and assigns of
Optionee.

          8. Tax Consequences. Set forth below is a brief summary as of the date the Board
adopted the Plan of some of the federal tax consequences of exercise of the Option and disposition
of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE
SUBJECT TO CHANGE. OPTIONEE SHOULD

4

 

Interwoven, Inc.

Stock Option Agreement

2000 Stock Incentive Plan

CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING
OF THE SHARES.

               8.1 Exercise of Nonqualified Stock Option. There may be a regular federal income tax
liability upon the exercise of the Option. Optionee will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair
market value of the Shares on the date of exercise over the Exercise Price. The Company may be
required to withhold from Optionee’s compensation or collect from Optionee and pay to the
applicable taxing authorities an amount equal to a percentage of this compensation income at the
time of exercise.

               8.2 Disposition of Shares. The following tax consequences may apply upon disposition
of the Shares.

                    a. Nonqualified Stock Options. If the Shares are held for more than twelve (12)
months after the date of the transfer of the Shares pursuant to the exercise of an nonqualified
stock option, any gain realized on disposition of the Shares will be treated as long-term capital
gain.

                    b. Withholding. The Company may be required to withhold from Participant’s
compensation or collect from the Participant and pay to the applicable taxing authorities an amount
equal to a percentage of the compensation income.

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

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

          11. Entire Agreement. The Plan is incorporated herein by reference. This Agreement,
the Notice of Grant, the Plan and the Exercise Agreement constitute the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof and supersede all
prior understandings and agreements with respect to such subject matter.

          12. 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 Optionee shall
be in writing and addressed to Optionee 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: personal delivery; three (3) days after deposit in the
United States mail by certified or registered mail (return receipt requested);
one (1) business day after deposit with any return receipt express courier (prepaid); or one (1)
business day after transmission by facsimile.

          13. 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

5

 

Interwoven, Inc.

Stock Option Agreement

2000 Stock Incentive Plan

and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns.

          14. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to
choice of law or conflict of law.

6

 

EXHIBIT A

STOCK OPTION EXERCISE AGREEMENT

 

 

Exhibit A

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN (the “Plan”)

STOCK OPTION EXERCISE AGREEMENT

     I hereby elect to purchase the number of shares of Common Stock of Interwoven, Inc. (the
“Company”) as set forth below:

	 	 	 	 	 	 	 	 	 
	Optionee
	 	 	 	 	 	 	 	 
	 	 	 
	Social Security Number:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Type of Option:	 	[ ] Incentive Stock Option
	 	 	 	 	 	 	[ ] Nonqualified Stock Option

	 	 	 	 	 	 	 	 	 
	Number of Shares Purchased:	 	 	 	 	 	 
	 	 	 	 	 
	Purchase Price per Share:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Aggregate Purchase Price:
	 	 	 	 	 	 	 	 
	 	 	 
	Date of Option Agreement:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Exact Name of Title to Shares:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

1. Delivery of Purchase Price. Optionee hereby delivers to the Company the Aggregate
Purchase Price, to the extent permitted in the Stock Option Agreement (the “Option
Agreement”) and Notice of Grant as follows (check as applicable and complete):

	 	 	 
	[ ]

	 	in cash (by check) in the amount of $                                        , receipt
of which is acknowledged by the Company;
	 
	[ ]

	 	by cancellation of indebtedness of the Company to Optionee in the
amount of $                                        ;
	 
	[ ]

	 	by delivery of
                                         fully-paid,
nonassessable and vested shares of the Common Stock of the Company
owned by Optionee for at least six (6) months prior to the date
hereof (and which have been paid for within the meaning of SEC Rule
144), or obtained by Optionee in the open public market, and owned
free and clear of all liens, claims, encumbrances or security
interests, valued at the current Fair Market Value of
$                                        
per share;
	 
	[ ]

	 	by the waiver hereby of compensation due or accrued to Optionee for
services rendered in the amount of
$                                        ;
	 
	[ ]

	 	through a “same-day-sale” commitment, delivered herewith, from
Optionee and the NASD Dealer named therein, in the amount of
$                                        ; or
	 
	[ ]

	 	through a “margin” commitment, delivered herewith from Optionee and
the NASD Dealer named therein, in the amount of
$                                        .

2. Tax Consequences. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE TAX CONSEQUENCES
AS A RESULT OF OPTIONEE’S PURCHASE OR DISPOSITION OF THE SHARES. OPTIONEE REPRESENTS THAT
OPTIONEE HAS CONSULTED WITH ANY TAX CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH
THE PURCHASE OR DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR
ANY TAX ADVICE.

3. Entire Agreement. The Plan, Notice of Grant and Option Agreement are incorporated herein
by reference. This Exercise Agreement, the Plan, Notice of Grant and the Option Agreement
constitute the entire agreement and understanding of the parties and supersede in their
entirety all prior understandings and agreements of the Company and Optionee with respect to
the subject matter hereof, and are governed by California law except for that body of law
pertaining to choice of law or conflict of law.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature of Optionee

 

 

Spousal Consent

     I acknowledge that I have read the foregoing Stock Option Exercise Agreement (the “Agreement”)
and that I know its contents. I hereby consent to and approve all of the provisions of the
Agreement, and agree that the shares of the Common Stock of Interwoven, Inc. purchased thereunder
(the “Shares”) and any interest I may have in such Shares are subject to all the provisions of the
Agreement. I will take no action at any time to hinder operation of the Agreement on these Shares
or any interest I may have in or to them.

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	Date:
	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	Signature of Optionee’s Spouse	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	Spouse’s Name — Typed or Printed	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	Optionee’s Name — Typed or Printed	 	 	 	 	 	 

 

 

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN

REVISED STOCK OPTION AGREEMENT

(Non-Standard for Executives)

     For use only with Option number                      granted on                     

          1. Grant of Option. Interwoven, Inc. (the “Company”) hereby grants to Optionee an
option (this “Option”) to purchase up to the total number of shares of Common Stock of the Company
set forth in the Notice of Grant (collectively, the “Shares”) at the exercise price set forth in
the Notice of Grant (the “Exercise Price”), subject to all of the terms and conditions of the
Notice of Grant, this Stock Option Agreement (the “Agreement”) and the 2000 Stock Incentive Plan
(the “Plan”). If designated as an Incentive Stock Option in the Notice of Grant, the Option is
intended to qualify as an “incentive stock option” (“ISO”) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), to the extent permitted under Code Section
422. Capitalized terms not defined herein shall have the meaning ascribed to them in the Plan.

          2. Vesting; Exercise Period.

               2.1 Vesting of Shares. The Option shall be exercisable as it vests, unless otherwise
indicated in the Notice of Grant. Subject to the terms and conditions of the Plan and the
Agreement, the Option shall vest and become exercisable as to portions of the Shares pursuant to
the vesting schedule specified in the Notice of Grant, provided that Optionee has continuously
provided services to the Company, or any Parent or Subsidiary of the Company, at all times during
the relevant month. Notwithstanding the provisions of the preceding sentence, however, if there is
a Sale of the Company and Participant’s employment is terminated by the Company or its
successor without Cause in connection with the Sale of the Company, then upon such termination the
Option will become vested as to an additional number of Unvested Shares equal to fifty percent
(50%) of the Shares that were Unvested Shares at the closing of the Sale of the Company.

     For purposes of this vesting acceleration provisions, “Cause” means (i) willfully engaging in
gross misconduct that is materially and demonstrably injurious to the Company; (ii) willful act or
acts of dishonesty undertaken by Participant and intended to result in substantial gain or
personal enrichment for Participant at the expense of the Company; or (iii) willful and continued
failure to substantially perform Participant’s duties with the Company or its successor (other
than incapacity due to physical or mental illness); provided that the action or conduct described
in clause (iii) above will constitute “Cause” only if such failure continues after the Board of
Directors has provided Participant with a written demand for substantial performance setting forth
in detail the specify respects in which it believes Participant has willfully and not
substantially performed his duties thereof and a reasonable
opportunity (to be not less than 30 days) to cure the same. For such purpose, a termination by the Company without Cause includes a
termination of employment by Participant within 30 days following any of the following

 

 

events:
(x) the assignment of any duties to Participant inconsistent with, or reflecting a materially
adverse change in, Participant’s position, duties or responsibilities with the Company (or any
successor) without Participant’s concurrence; or (y) the relocation of the Company’s principal
executive offices, or relocating Participant’s principal place of business, in excess of fifty
(50) miles from the Company’s current executive offices located in Sunnyvale, California. For
purposes of the vesting acceleration provisions of paragraph (b), the term “Sale of the Company”
means (i) the sale or other disposition of all or substantially all of the assets of the Company,
or (ii) the acquisition of the Company by another entity by means of consolidation, corporate
reorganization or merger, or other transaction or series of related transactions in which more
than fifty percent (50%) of the outstanding voting power of the Company is transferred.

               2.2 Vesting of Options. Shares that are vested pursuant to the vesting schedule set
forth in the Notice of Grant are “Vested Shares.” Shares that are not vested pursuant to the
schedule set forth in the Notice of Grant are “Unvested Shares.”

               2.3 Expiration. The Option shall expire on the expiration date set forth in the
Notice of Grant, and must be exercised, if at all, on or before the earlier of the expiration date
of the Option or the date on which the Option is earlier terminated in accordance with the
provisions of Section 3 hereof.

          3. Termination.

               3.1 Termination for Any Reason Except Death, Disability or Cause. If Optionee is
Terminated for any reason except Optionee’s death, Disability or Cause, then the Option, to the
extent (and only to the extent) that it is vested in accordance with the schedule set forth in the
Notice of Grant on the Termination Date, may be exercised by Optionee no later than three (3)
months after the Termination Date, but in any event no later than the expiration date.

               3.2 Termination Because of Death or Disability. If Optionee is Terminated because of
death or Disability of Optionee (or the Optionee dies within three (3) months after Termination
other than for Cause or because of Disability), then the Option, to the extent that it is vested in
accordance with the schedule in the Notice of Grant on the Termination Date, may be exercised by
Optionee (or Optionee’s legal representative or authorized assignee) no later than twelve (12)
months after the Termination Date, but in any event no later than the expiration date. Any
exercise after three months after the Termination Date when the Termination is for any reason other
than Optionee’s death or disability, within the meaning of Code Section 22(e)(3), shall be deemed
to be the exercise of a nonqualified stock option.

               3.3 Termination for Cause. If Optionee is Terminated for Cause, the Option will
expire on the Optionee’s date of Termination.

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

 

 

          4. Manner of Exercise.

               4.1 Stock Option Exercise Agreement. To exercise the Option, Optionee (or in the case
of exercise after Optionee’s death, Optionee’s executor, administrator, heir or legatee, as the
case may be) must deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by the Company from
time to time (the “Exercise Agreement”), which shall set forth, inter alia,
Optionee’s election to exercise the Option, the number of shares being purchased, any restrictions
imposed on the Shares and any representations, warranties and agreements regarding Optionee’s
investment intent and access to information as may be required by the Company to comply with
applicable securities laws. If someone other than Optionee exercises the Option, then such person
must submit documentation reasonably acceptable to the Company that such person has the right to
exercise the Option.

               4.2 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.

               4.3 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:

	 	(a)	 	by cancellation of indebtedness of the Company to the Optionee;
	 
	 	(b)	 	by surrender of shares of the Company’s Common Stock that either: (1) have been
owned by Optionee 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 a
promissory note, such note has been fully paid with respect to such shares); or (2) were
obtained by Optionee in the open public market; and (3) are clear of all liens,
claims, encumbrances or security interests;
	 
	 	(c)	 	by waiver of compensation due or accrued to Optionee for services rendered;
	 
	 	(d)	 	provided that a public market for the Company’s stock exists: (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an “NASD Dealer”) whereby Optionee
irrevocably elects to exercise this Option and to sell a portion of the Shares so
purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits
upon receipt of such Shares to forward the exercise price directly to the Company;
or (2) through a “margin” commitment from Optionee and an NASD Dealer whereby
Optionee irrevocably elects to exercise this Option and to pledge the Shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD
Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably
commits upon receipt of such Shares to forward the Exercise Price directly to the
Company; or
	 
	 	(e)	 	by any combination of the foregoing.

 

 

               4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of the Option,
Optionee must pay or provide for any applicable federal or state withholding obligations of the
Company. If the Committee permits, Optionee 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 Optionee by deducting the Shares retained from the Shares issuable upon
exercise.

               4.5 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 Optionee, Optionee’s authorized assignee, or Optionee’s legal
representative, and shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

          5. Notice of Disqualifying Disposition of ISO Shares. To the extent the Option is an
ISO, if Optionee 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 Optionee upon exercise of the Option, then Optionee shall
immediately notify the Company in writing of such disposition.

          6. 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 Optionee 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. Optionee 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.

          7. Nontransferability of Option. Except as otherwise set forth in Section 11 of the
Plan, 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 Optionee only by Optionee. The terms
of the Option shall be binding upon the executors, administrators, successors and assigns of
Optionee.

          8. Tax Consequences. Set forth below is a brief summary as of the date the Board
adopted the Plan of some of the federal tax consequences of exercise of the Option and disposition
of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE
SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING
OF THE SHARES.

               8.1 Exercise of Incentive Stock Option. To the extent the Option qualifies as an ISO,
there will be no regular federal income tax liability upon the exercise of the Option, although the
excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise
Price will be treated as a tax preference item for federal income tax purposes and may subject the
Optionee to the alternative minimum tax in the year of exercise.

               8.2 Exercise of Nonqualified Stock Option. To the extent the Option does not qualify
as an ISO, there may be a regular federal income tax liability upon the exercise

 

 

of the Option.
Optionee will be treated as having received compensation income (taxable at ordinary income tax
rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise
over the Exercise Price. The Company may be required to withhold from Optionee’s compensation or
collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage
of this compensation income at the time of exercise.

               8.3 Disposition of Shares. The following tax consequences may apply upon disposition
of the Shares.

                    a. Incentive Stock Options. If the Shares are held for more than twelve (12) months
after the date of the transfer of the Shares pursuant to the exercise of an ISO and are disposed of
more than two (2) years after the date of grant, any gain realized on disposition of the Shares
will be treated as capital gain for federal income tax purposes. If Shares purchased under an ISO
are disposed of within the applicable one (1) year or two (2) year period, any gain realized on
such disposition will be treated as compensation income (taxable at ordinary income rates) to the
extent of the excess, if any, of the fair market value of the Shares on the date of exercise over
the Exercise Price.

                    b. Nonqualified Stock Options. If the Shares are held for more than twelve (12)
months after the date of the transfer of the Shares pursuant to the exercise of an NQSO, any gain
realized on disposition of the Shares will be treated as long-term capital gain.

                    c. Withholding. The Company may be required to withhold from Participant’s
compensation or collect from the Participant and pay to the applicable taxing authorities an amount
equal to a percentage of the compensation income.

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

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

          11. Entire Agreement. The Plan is incorporated herein by reference. This Agreement,
the Notice of Grant, the Plan and the Exercise Agreement constitute the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof and supersede all
prior understandings and agreements with respect to such subject matter.

          12. 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 Optionee shall
be in writing and addressed to Optionee 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: personal delivery; three (3) days after deposit in the
United States mail by certified or registered mail (return receipt requested);
one (1) business day after deposit with any return receipt express courier (prepaid); or one (1)
business day after transmission by facsimile.

 

 

          13. 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 Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns.

          14. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to
choice of law or conflict of law.

	 	 	 	 	 	 	 	 	 	 	 
	OPTIONEE:	 	 	 	INTERWOVEN, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

 

 

EXHIBIT A

STOCK OPTION EXERCISE AGREEMENT

 

 

Exhibit A

INTERWOVEN, INC.

2000 STOCK INCENTIVE PLAN (the “Plan”)

STOCK OPTION EXERCISE AGREEMENT

     I hereby elect to purchase the number of shares of Common Stock of Interwoven, Inc. (the
“Company”) as set forth below:

	 	 	 	 	 	 	 	 	 	 	 
	Optionee

	 	 	 	 	 	 	 	Number of Shares Purchased:	 	 
	 	 	 	 	 	 	 	 	 
	Social Security Number:	 	 	 	 	 	Purchase
Price per Share:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	Address:

	 	 	 	 	 	 	 	Aggregate Purchase Price:	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Date of Option Agreement:	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Type of Option:	 	[  ]  Incentive Stock Option	 	 	 	Exact Name of Title to Shares:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	[  ]  Nonqualified Stock Option	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

1. Delivery of Purchase Price. Optionee hereby delivers to the Company the Aggregate
Purchase Price, to the extent permitted in the Stock Option Agreement (the “Option
Agreement”) and Notice of Grant as follows (check as applicable and complete):

			
	[  ]	 	in cash (by check) in the amount of $                    , receipt
of which is acknowledged by the Company;

			
	[  ]	 	by cancellation of indebtedness of the Company to Optionee in the
amount of $                                        ;

			
	[  ]	 	by delivery of                      fully-paid, nonassessable and
vested shares of the Common Stock of the Company owned by Optionee
for at least six (6) months prior to the date hereof (and which have
been paid for within the meaning of SEC Rule 144), or obtained by
Optionee in the open public market, and owned free and clear of all
liens, claims, encumbrances or security interests, valued at the
current Fair Market Value of $                     per share;

			
	[  ]	 	by the waiver hereby of compensation due or accrued to Optionee for
services rendered in the amount of $                                        ;

			
	[  ]	 	through a “same-day-sale” commitment, delivered herewith, from
Optionee and the NASD Dealer named therein, in the amount of
$                                        ; or

			
	[  ]	 	through a “margin” commitment, delivered herewith from Optionee and
the NASD Dealer named therein, in the amount of
$                                        .

2. Tax Consequences. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE TAX CONSEQUENCES
AS A RESULT OF OPTIONEE’S PURCHASE OR DISPOSITION OF THE SHARES. OPTIONEE REPRESENTS THAT
OPTIONEE HAS CONSULTED WITH ANY TAX CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH
THE PURCHASE OR DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR
ANY TAX ADVICE.

3. Entire Agreement. The Plan, Notice of Grant and Option Agreement are incorporated herein
by reference. This Exercise Agreement, the Plan, Notice of Grant and the Option Agreement
constitute the entire agreement and understanding of the parties and supersede in their
entirety all prior understandings and agreements of the Company and Optionee with respect to
the subject matter hereof, and are governed by California law except for that body of law
pertaining to choice of law or conflict of law.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature of Optionee

 

 

Spousal Consent

     I acknowledge that I have read the foregoing Stock Option Exercise Agreement (the “Agreement”)
and that I know its contents. I hereby consent to and approve all of the provisions of the
Agreement, and agree that the shares of the Common Stock of Interwoven, Inc. purchased thereunder
(the “Shares”) and any interest I may have in such Shares are subject to all the provisions of the
Agreement. I will take no action at any time to hinder operation of the Agreement on these Shares
or any interest I may have in or to them.

	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	Date:	 	 
	 	 	 	 	 	 	 
	 	 

	 	Signature of Optionee’s Spouse	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 
	 	 

	 	Spouse’s Name — Typed or Printed	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 
	 	 

	 	Optionee’s Name — Typed or Printed

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