Document:

matr-ex103_375.htm

Exhibit 10.3

25 April 2018

Christopher J. Danson

Dear Chris,

Mattersight Corporation. Employment Post Acquisition by NICE Systems, Inc.(“NICE”)

We have an exciting opportunity ahead of us with the acquisition of Mattersight Corporation (the Company) by NICE. Mattersight Corporation has incredible talent and together, we will transform the

customer analytics market.

We are writing to confirm your terms of employment following the acquisition. This letter agreement amends the employment agreement between you and the Company dated September 8, 2008, as amended (“Employment Agreement”) and will be effective upon (and subject to) the closing of the acquisition. The terms of the Employment Agreement will remain in full force and effect unless amended by this letter agreement.

	
 
	
a) 
	
The Company will be a subsidiary of NICE

	
 
	
b) 
	
You will be paid salary at the rate of $320,000 USD per annum.

	
 
	
c) 
	
The Bonus provision of the Employment Agreement is replaced by the following: “Management by Objectives (“MBO”): You will be entitled to participate in the annual NICE MBO Plan. This is a bonus plan based on company financials, unit financials, unit KPIs and an individual performance section. Your Annual MBO Target for 2018 is $320,000 USD prorated for the portion of 2018 between the closing and the end of the year.” You will also be paid any bonus awarded by the Pincer board of directors in accordance with your employment agreement and any applicable bonus plan that are in effect before you sign this letter, for work performed in 2018 before the closing, which will be paid in April 2019.

	
 
	
d) 
	
The Stock Options and Restricted Stock you have been awarded will be treated in accordance with the provisions of the Merger Agreement that will be filed with the SEC.

	
 
	
e) 
	
The Severance Benefits and Death and Disability Benefit provisions of the Employment Agreement are amended as follows:

	
 
	
i.
	
The Severance Health Premium Reimbursements provision of the Employment Agreement is replaced by the following: “You will receive a lump sum severance payment equal to the estimated cost of COBRA coverage for you and your dependents (if any) for a period of twelve (12) months (“Lump Sum Payment”).”

	
 
	
ii.
	
The Severance Pay, Severance Bonus and Lump Sum Payment will be paid on the first payroll date that is more than sixty days after the effective date of termination.

	
 
	
iii.
	
The Severance Benefits and Death and Disability Benefit provisions of the Employment Agreement will only apply to a termination without Cause or resignation for Good Reason that occurs before the second anniversary of the closing, and on or after the second anniversary of the closing you will only be eligible for severance payments in accordance with NICE practices and policies in effect at that time.

	
 
	
f) 
	
The Employment Agreement is further amended as follows:

DocuSign Envelope ID: 7006F128-B46D-40BA-992D-AE53F394E49B

	
 
	
i.
	
Due to the acquisition, we will be aligning Company titles with the NICE titling structure. Taking into consideration your current role and responsibilities, your updated title post-closing is VP R&D, Mattersight. You will report to David Gustafson.

	
 
	
ii.
	
You agree that if you resign without Good Reason before the one year anniversary of the closing, you will provide at least 90 days advance written notice of such resignation.

	
 
	
iii.
	
You agree that while you are employed by the Company you will not be employed by, or provide services to or on behalf of, any other business (including your own business), without the prior written approval of the Company.

	
 
	
iv.
	
It will not violate the non-disparagement provision of the Employment Agreement for either you or Company representatives to make truthful statements to a government or regulatory agency or in any administrative, judicial, mediation or arbitration proceeding.

	
 
	
v.
	
You agree that the protections of Confidential Information, and the restrictions against competition, providing competitive services and solicitation in Section 9 of the Employment Agreement, will apply to the entire business of NICE Ltd., as conducted through its direct and indirect subsidiaries and affiliates (the “Company Group”), and that these expanded protections and restrictions are reasonable because of the access you will have to the trade secrets and Confidential Information, and the client relationships, of the Company Group. You further agree that the references to “Company” in Section 9 are amended to refer to the “Company Group,” and that references to your employment by the Company Group will mean either the Company or any other member of the Company Group that employs you.

	
 
	
vi.
	
By signing this letter agreement, you consent to all of the changes to your Employment Agreement. You and the Company acknowledge and agree that the Employment Agreement, as amended by this letter agreement, is binding on you and the Company as of and after the closing, and that these amendments do not constitute Good Reason (as defined in the Employment Agreement) for you to resign from employment, provided, however, nothing in this letter affects whether or not you may resign for Good Reason pursuant to the Employment Agreement as a result of the change in your title described in clause f(i) of this letter.

Your employment will remain on an “at-will” basis, which means either you or the Company may terminate your employment at any time and for any reason, except as provided in Section h(ii) of this letter. All payments to you are subject to all applicable tax deductions and withholdings.

We are confident that your experience and commitment will greatly contribute to the successful integration of the Company and the continued growth and development of NICE in the future. We look forward to working together.

Yours sincerely

 

	

	
 
	
 

	
 
	
 
	
 

	
Yaron Hertz
	
 
	
David Gustafson

	
President, NICE Americas
	
 
	
Chief Operating Officer

	
NICE Systems, Inc.
	
 
	
Mattersight Corporation

 

	
 
	
i.
	
Due to the acquisition, we will be aligning Company titles with the NICE titling structure. Taking into consideration your current role and responsibilities, your updated title post-closing is VP R&D, Mattersight. You will report to David Gustafson.

	
 
	
ii.
	
You agree that if you resign without Good Reason before the one year anniversary of the closing, you will provide at least 90 days advance written notice of such resignation.

	
 
	
iii.
	
You agree that while you are employed by the Company you will not be employed by, or provide services to or on behalf of, any other business (including your own business), without the prior written approval of the Company.

	
 
	
iv.
	
It will not violate the non‐disparagement provision of the Employment Agreement for either you or Company representatives to make truthful statements to a government or regulatory agency or in any administrative, judicial, mediation or arbitration proceeding.

	
 
	
v.
	
You agree that the protections of Confidential Information, and the restrictions against competition, providing competitive services and solicitation in Section 9 of the Employment Agreement, will apply to the entire business of NICE Ltd., as conducted through its direct and indirect subsidiaries and affiliates (the “Company Group”), and that these expanded protections and restrictions are reasonable because of the access you will have to the trade secrets and Confidential Information, and the client relationships, of the Company Group. You further agree that the references to “Company” in Section 9 are amended to refer to the “Company Group,” and that references to your employment by the Company Group will mean either the Company or any other member of the Company Group that employs you.

	
 
	
vi.
	
By signing this letter agreement, you consent to all of the changes to your Employment Agreement. You and the Company acknowledge and agree that the Employment Agreement, as amended by this letter agreement, is binding on you and the Company as of and after the closing, and that these amendments do not constitute Good Reason (as defined in the Employment Agreement) for you to resign from employment, provided, however, nothing in this letter affects whether or not you may resign for Good Reason pursuant to the Employment Agreement as a result of the change in your title described in clause f(i) of this letter.

Your employment will remain on an “at‐will” basis, which means either you or the Company may terminate your employment at any time and for any reason, except as provided in Section h(ii) of this letter. All payments to you are subject to all applicable tax deductions and withholdings.

We are confident that your experience and commitment will greatly contribute to the successful integration of the Company and the continued growth and development of NICE in the future. We look forward to working together.

 

Yours sincerely

 

	
/s/ Yaron Hertz
	
 
	
/s/ David Gustafson

	
Yaron Hertz
	
 
	
David Gustafson

	
President, NICE Americas
	
 
	
Chief Operating Officer

	
NICE Systems, Inc.
	
 
	
Mattersight Corporation

 

Acceptance

I understand and accept the terms of this letter as stated.

 

	
/s/ Christopher Danson
	
 
	
April 25, 2018

	
Signature
	
 
	
DateExhibit

CONSENT AND SEVENTH AMENDMENT TO CREDIT AGREEMENT
This CONSENT AND SEVENTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered into as of July 31, 2018, by and among WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent and collateral agent for each member of the Lender Group and the Bank Product Providers (in such capacities, together with its successors and assigns in such capacities, "Agent") and as United States administrative agent for each member of the Lender Group and the Bank Product Providers (in such capacity, together with its successors and assigns in such capacity, "US Agent"), WELLS FARGO CAPITAL FINANCE CORPORATION CANADA, an Ontario corporation, as Canadian administrative agent for each member of the Lender Group and the Bank Product Providers (in such capacity, together with its successors and assigns in such capacity, "Canadian Agent"), the Lenders (as defined in the Credit Agreement as defined below) party hereto, UPLAND SOFTWARE, INC., a Delaware corporation ("Parent"), each subsidiary of Parent identified on the signature pages hereof as a "US Borrower" (collectively, the "US Borrowers") and UPLAND SOFTWARE INC. / LOGICIELS UPLAND INC., a Canadian federal corporation ("Upland CAD"; collectively with Parent and US Borrowers each, a "Borrower" and collectively, the "Borrowers").
WHEREAS, the Borrowers, Agent, US Agent, Canadian Agent and the Lenders are parties to that certain Credit Agreement dated as of May 14, 2015 (as amended, restated, modified or supplemented from time to time, the "Credit Agreement");
WHEREAS, the Borrowers have requested that Lenders consent to each of Interfax Communications Limited, a private company limited by shares organized and existing under the laws of Ireland, Data Guard Limited, a private limited company organized and existing under the laws of Ireland, and Return Fax 2000 Limited, a private limited company organized and existing under the laws of Israel, not becoming a Canadian Guarantor and not joining the Canadian Guarantee and Security Agreement as a Grantor (as defined in the Canadian Guarantee and Security Agreement) (the "Waiver of the Canadian Joinder"), which would otherwise constitute a breach of Section 5.11 of the Credit Agreement; and
WHEREAS, Required Lenders have agreed to (a) consent to the Waiver of the Canadian Joinder and (b) amend the Credit Agreement in certain respects as set forth herein, in each case, on the terms and subject to the conditions set forth herein.
NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the parties hereto agree as follows:
1.    Defined Terms.  Unless otherwise defined herein, capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Credit Agreement.
2.    Consent.  In reliance upon the representations and warranties of each Borrower set forth in Section 7 below and subject to the satisfaction of the conditions to effectiveness set forth in Section 6 below, the undersigned Lenders, constituting all Lenders pursuant to the Credit Agreement, hereby consent to the Waiver of the Canadian Joinder.  Except as expressly set forth herein, the foregoing consent is a limited consent and shall not constitute (i) a modification or alteration of the terms, conditions or covenants of the Credit Agreement or any other Loan Document or (ii) a waiver, release or limitation upon the exercise by Agent and/or Lenders of any of their respective rights, legal or equitable thereunder.
3.    Amendments to Credit Agreement.  In reliance upon the representations and warranties of each Borrower set forth in Section 7 below and subject to the satisfaction of the conditions to effectiveness set forth in Section 6 below, the Credit Agreement is hereby amended as follows:
(a)    The definition of "Annualized" set forth on Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety, effective as of March 31, 2018, as follows:
"Annualized" means, with respect to the determination of the components of clauses (a) and (b) of the definition of Fixed Charges (other than scheduled payments of principal on the Term Loan), for the periods of measurement ending on the last day of the Fiscal Quarters ending on March 31, 2018, June 30, 2018, September 30, 2018, December 31, 2018, and March 31, 2019, the amount determined by multiplying the actual amount of such items from the Sixth Amendment Closing Date through the date of such calculation by 365 and dividing by the number of days from the Sixth Amendment Closing Date through the date of such calculation.
(b)    The last sentence of the definition of "Fixed Charges" set forth on Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety, effective as of March 31, 2018, as follows:
For purposes of calculating the Fixed Charge Coverage Ratio, for the periods of measurement ending on the last day of the Fiscal Quarters ending on  March 31, 2018, June 30, 2018, September 30, 2018, December 31, 2018, and March 31, 2019 (x) the components of Fixed Charges set forth in clauses (a) and (b) above (other than scheduled payments of principal on the Term Loan) shall be Annualized, and (y) scheduled payments of principal on the Term Loan shall be deemed to be the product of (i) the applicable amount for each such period of measurement as set forth in Sections 2.2(b) and 2.2(d), as may be increased from time to time in accordance with the terms thereof, and (ii) 4.
4.    Continuing Effect.  Except as expressly set forth in Section 2 and 3 of this Amendment, nothing in this Amendment shall constitute a waiver or other modification of any other terms or provisions of the Credit Agreement or any other Loan Document, and the Credit Agreement and the other Loan Documents shall remain unchanged and shall continue in full force and effect, in each case as amended hereby.  This Amendment is a Loan Document.
5.    Reaffirmation and Confirmation.  Each Borrower hereby ratifies, affirms, acknowledges and agrees that the Credit Agreement and the other Loan Documents to which it is a party represent the valid, enforceable and collectible obligations of such Borrower, and further acknowledges that there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with respect to the Credit Agreement or any other Loan Document as of the date hereof.  Each Borrower hereby agrees that this Amendment in no way acts as a release or relinquishment of the Liens and rights securing payments of the Obligations.  The Liens and rights securing payment of the Obligations are hereby ratified and confirmed by each Borrower in all respects.
6.    Conditions to Effectiveness.  This Amendment shall become effective upon the satisfaction of each of the following conditions precedent, in each case satisfactory to Agent in all respects:
(a)    Agent shall have received a copy of this Amendment, executed and delivered by each Lender, and each Borrower; and
(b)    no Default or Event of Default shall have occurred and be continuing on the date hereof or as of the date of the effectiveness of this Amendment.
7.    Representations and Warranties.  In order to induce Agent and each Lender to enter into this Amendment, each Borrower hereby represents and warrants to Agent and Lenders that:
(a)    after giving effect to this Amendment, all representations and warranties contained in the Loan Documents to which such Borrower is a party are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date of this Amendment, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of such earlier date);
(b)    no Default or Event of Default has occurred and is continuing; and
(c)    this Amendment and the Loan Documents, as modified hereby, constitute legal, valid and binding obligations of such Borrower and are enforceable against such Borrower in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors' rights generally.
8.    Miscellaneous.
(a)    Choice of Law and Venue; Jury Trial Waiver; Reference Provision.  Without limiting the applicability of any other provision of the Credit Agreement or any other Loan Document, the terms and provisions set forth in Section 12 of the Credit Agreement are expressly incorporated herein by reference.
(b)    Counterparts.  This Amendment may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment.
9.    Release.
(a)    In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Borrower, on behalf of itself and its successors, assigns, and other legal representatives (each Borrower and all such other Persons being hereinafter referred to collectively as the "Releasors" and individually as a "Releasor"), hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and Lenders, and their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, each Lender and all such other Persons being hereinafter referred to collectively as the "Releasees" and individually as a "Releasee"), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set‐off, demands and liabilities whatsoever (individually, a "Claim" and collectively, "Claims") of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which any Releasor may now own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment, in any way related to or in connection with the Credit Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.
(b)    Each Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.
(c)    Each Borrower agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.
[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized and delivered as of the date first above written.
	
		
	PARENT AND A US BORROWER:
	UPLAND SOFTWARE, INC., 
a Delaware corporation 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer 

	US BORROWERS:
	UPLAND SOFTWARE I, INC., 
a Delaware corporation 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	UPLAND SOFTWARE II, LLC, 
a Delaware limited liability company 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	UPLAND SOFTWARE IV, LLC, 
a Nebraska limited liability company 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	UPLAND SOFTWARE V, INC., 
a Delaware corporation 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	UPLAND SOFTWARE VI, LLC, 
a New Jersey limited liability company 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	UPLAND SOFTWARE VII, LLC, 
a Delaware limited liability company 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	UPLAND IX, LLC, 
a Delaware limited liability company 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	ULTRIVA, LLC, 
a California limited liability company 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	ADVANCED PROCESSING & IMAGING, INC., 
a Florida corporation 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	OMTOOL, LTD., 
a Delaware corporation 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	RIGHTANSWERS, INC., 
a Delaware corporation 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	WATERFALL INTERNATIONAL INC., 
a Delaware corporation 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	 
	QVIDIAN CORPORATION, 
a Delaware corporation 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	
		
	CANADIAN BORROWER:
	UPLAND SOFTWARE INC. / LOGICIELS UPLAND INC., 
a Canadian federal corporation 
 
 
By:  /s/ Michael D. Hill 
Name:  Michael D. Hill
Title:  Chief Financial Officer

	
		
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Agent, US Agent and as a Lender 
 
 
By:  /s/ Tiffany N. Orman 
Name:  Tiffany N. Orman
Title:  Director

	
		
	 
	WELLS FARGO CAPITAL FINANCE CORPORATION CANADA, an Ontario corporation, as Canadian Agent and as a Lender 
 
 
By:  /s/ David G. Phillips 
Name:  David G. Phillips
Title: Credit Officer, Canada

	
		
	 
	CIT BANK, N.A., a national banking association, as a Lender 
 
 
By:  /s/ Kevin Cullen 
Name:  Kevin Cullen
Title:  Managing Director

	
		
	 
	STRATEGIC CREDIT PARTNERS II, LLC, as a Lender 
 
 
By:  /s/ Craig Transue 
Name:  Craig Transue
Title:  Authorized Signatory

	
		
	 
	GOLDMAN SACHS BANK USA, as a Lender 
 
 
By:  /s/ Justin Betzen 
Name:  Justin Betzen
Title:  Authorized Signatory

	
		
	 
	REGIONS BANK, as a Lender 
 
 
By:  /a/ Jason Douglas 
Name:  Jason Douglas
Title:  Director

	
		
	 
	CITIZENS BANK, N.A., as a Lender 
 
 
By:  /s/ Jason Crowley 
Name:  Jason Crowley
Title:  Vice President

	
		
	 
	AC LOAN SOURCING LTD, as a Lender 
 
 
By:  /s/ Thomas E. Bancroft 
Name:  Thomas E. Bancroft
Title:  Portfolio Manager 

4817-9962-0205.v3

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