Exhibit 10.5
BEA SYSTEMS, INC. 1997 STOCK
INCENTIVE PLAN
NOTICE OF PERFORMANCE UNIT
AWARD
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Grantee’s Name and Address:
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Mark P.
Dentinger
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2315 North
First Street
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San Jose, CA
95131
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You (the “Grantee”) have
been granted a Performance Unit Award (the “Award”),
subject to the terms and conditions of this Notice of Performance
Unit Award (the “Notice”), the Bea Systems, Inc. 1997
Stock Incentive Plan, as amended from time to time (the
“Plan”) and the Performance Unit Award Agreement (the
“Agreement”) attached hereto, as follows. Unless
otherwise defined herein, the terms defined in the Plan shall have
the same defined meanings in this Notice.
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Award
Number
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030421
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Date of
Award
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April 14,
2005
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Vesting Commencement Date
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April 14,
2005
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Total Number of Performance
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Units Awarded
(the “Units”)
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20,000
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Vesting Schedule :
Subject to the Grantee’s
Continuous Status as an Employee, Director or Consultant and other
limitations set forth in this Notice, the Agreement and the Plan,
the Units shall vest in accordance with the following
schedule:
E ACH U NIT CONVERTS UPON VESTING INTO A RIGHT TO RECEIVE ONE SHARE OF STOCK AT THE VESTING RATE OF ONE QUARTER (25%) OF THE AWARD ANNUALLY FOR FOUR YEARS FROM THE DATE OF GRANT
In the event of the Grantee’s
change in status from Employee to Consultant or from an Employee
whose customary employment is 20 hours or more per week to an
Employee whose customary employment is fewer than 20 hours per
week, the Units shall continue to vest in accordance with the
Vesting Schedule.
For purposes of this Notice and the
Agreement, the term “vest” shall mean, with respect to
any Units, that such Units are no longer subject to forfeiture to
the Company. If the Grantee would become vested in a fraction of a
Unit, such Unit shall not vest until the Grantee becomes vested in
the entire Unit.
Vesting shall cease upon the date of
termination of the Grantee’s Continuous Status as an
Employee, Director or Consultant (the “Termination
Date”) for any reason, including death or Disability. In the
event the Grantee’s Continuous Status as an Employee,
Director or Consultant is terminated for any reason, including
death or Disability, the unvested Units held by the Grantee on the
Termination Date shall be deemed reconveyed to the Company and the
Company shall thereafter be the legal and beneficial owner of such
Units and shall have all rights and interest in or related thereto
without further action by the Grantee.
IN WITNESS WHEREOF, the Company and
the Grantee have executed this Notice and agree that the Award is
to be governed by the terms and conditions of this Notice, the
Plan, and the Agreement.
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BEA Systems,
Inc.,
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a Delaware
corporation
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By:
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/s/ Alfred S. Chuang
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Title:
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Chairman,
President & CEO
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THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE
UNITS SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE
GRANTEE’S CONTINUOUS STATUS AS AN EMPLOYEE, DIRECTOR OR
CONSULTANT (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS
AWARD OR ACQUIRING SHARES HEREUNDER). THE GRANTEE FURTHER
ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE AGREEMENT,
NOR IN THE PLAN, SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH
RESPECT TO CONTINUATION OF THE GRANTEE’S CONTINUOUS STATUS AS
AN EMPLOYEE, DIRECTOR OR CONSULTANT, NOR SHALL IT INTERFERE IN ANY
WAY WITH THE GRANTEE’S RIGHT OR THE COMPANY’S RIGHT TO
TERMINATE THE GRANTEE’S CONTINUOUS STATUS AS AN EMPLOYEE,
DIRECTOR OR CONSULTANT AT ANY TIME, WITH OR WITHOUT CAUSE, AND WITH
OR WITHOUT NOTICE. THE GRANTEE ACKNOWLEDGES THAT UNLESS THE GRANTEE
HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE
CONTRARY, THE GRANTEE’S STATUS IS AT WILL.
The Grantee acknowledges receipt of
a copy of the Plan and the Agreement and represents that he or she
is familiar with the terms and provisions thereof, and hereby
accepts the Award subject to all of the terms and provisions hereof
and thereof. The Grantee has reviewed this Notice, the Agreement
and the Plan in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Notice and fully
understands all provisions of this Notice, the Agreement and the
Plan. The Grantee hereby agrees that all questions of
interpretation and administration relating to this Notice, the Plan
and the Agreement shall be resolved by the Administrator in
accordance with Section 9 of the Agreement. The Grantee further
agrees to the venue selection and waiver of a jury trial in
accordance with Section 10 of the Agreement. The Grantee further
agrees to notify the Company upon any change in the residence
address indicated in this Notice.
The Grantee further acknowledges
that, from time to time, the Company may be in a “blackout
period” and/or subject to applicable federal securities laws
that could subject the Grantee to liability for engaging in any
transaction involving the sale of the Company’s Shares. The
Grantee further acknowledges and agrees that, prior to the sale of
any Shares acquired under this Award, it is the Grantee’s
responsibility to determine whether or not such sale of Shares will
subject the Grantee to liability under insider trading rules or
other applicable federal securities laws.
The Grantee understands that the
Award is subject to the Grantee’s consent to access this
Notice, the Agreement, the Plan and the Plan prospectus
(collectively, the “Plan Documents”) in electronic form
on the Company’s intranet. By signing below (or by providing
an electronic signature) and accepting the grant of the Award, the
Grantee: (i) consents to access electronic copies (instead of
receiving paper copies) of the Plan Documents via the
Company’s intranet; (ii) represents that the Grantee has
access to the Company’s intranet; (iii) acknowledges receipt
of electronic copies, or that the Grantee is already in possession
of paper copies, of the Plan Documents; and (iv) acknowledges that
the Grantee is familiar with and accepts the Award subject to the
terms and provisions of the Plan Documents.
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Dated:
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Signed:
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Mark P.
Dentinger
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2
Award Number: 030421
BEA SYSTEMS, INC. 1997 STOCK
INCENTIVE PLAN
PERFORMANCE UNIT AWARD
AGREEMENT
1. Issuance of Units . BEA
Systems, Inc., a Delaware corporation (the “Company”),
hereby issues to the Grantee (the “Grantee”) named in
the Notice of Performance Unit Award (the “Notice”),
the Total Number of Performance Units Awarded set forth in the
Notice (the “Units”), subject to the Notice, this
Performance Unit Award Agreement (the “Agreement”) and
the terms and provisions of the Company’s 1997 Stock
Incentive Plan, as amended from time to time (the
“Plan”), which is incorporated herein by reference.
Unless otherwise defined herein, the terms defined in the Plan
shall have the same defined meanings in this Agreement.
2. Transfer Restrictions .
The Units subject to this award (the “Award”) may not
be transferred in any manner other than by will or by the laws of
descent and distribution. Notwithstanding the foregoing, the
Grantee may designate a beneficiary of the Units in the event of
the Grantee’s death on the beneficiary designation form
attached hereto as Exhibit A . The terms of this Agreement
shall be binding upon the executors, administrators, heirs,
successors and transferees of the Grantee.
3. Conversion of Units and
Issuance of Shares . Upon each vesting date, one share of
Common Stock shall be issuable for each Unit that vests on such
date (the “Shares”), subject to the terms and
provisions of the Plan and this Agreement. Thereafter, the Company
will transfer such Shares to the Grantee upon satisfaction of any
required tax or other withholding obligations. Any fractional Unit
remaining after the Award is fully vested shall be discarded and
shall not be converted into a fractional Share.
4. Corporate Transactions/Changes
in Control/Subsidiary Dispositions . The Award shall be subject
to the provisions of Section 11 of the Plan relating to the vesting
or termination of the Award in the event of a Corporate
Transaction, Change in Control or Subsidiary
Disposition.
5. Right to Shares . The
Grantee shall not have any right in, to or with respect to any of
the Shares (including any voting rights or rights with respect to
dividends paid on the Common Stock) issuable under the Award until
the Award is settled by the issuance of such Shares to the
Grantee.
6. Taxes .
(a) Generally . The Grantee
is ultimately liable and responsible for all taxes owed by the
Grantee in connection with the Award, regardless of any action the
Company or any Subsidiary of the Company takes with respect to any
tax withholding obligations that arise in connection with the
Award. Neither the Company nor any Subsidiary of the Company makes
any representation or undertaking regarding the treatment of any
tax withholding in connection
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with the grant or vesting of the Award or the
subsequent sale of Shares issuable pursuant to the Award. The
Company and its Subsidiaries do not commit and are under no
obligation to structure the Award to reduce or eliminate the
Grantee’s tax liability. As a condition and term of this
Award, no election under Section 83(b) of the Code may be made by
the Grantee or an