Document:

Exhibit 10.165

AMENDMENT TO SEVERANCE AGREEMENT

This Amendment No. 1 (“Amendment”), dated as of June 20, 2014, to the Severance Agreement (“Agreement”) dated as of June 6, 2014, between Compuware Corporation, a Michigan corporation (the “Company”), and Daniel S. Follis, Jr. (the “Executive”).

WHEREAS, the Company and the Executive have entered into a Severance Agreement, dated June 6, 2014, and now desire to amend that Agreement.

NOW, THEREFORE, the following sections of the Agreement are hereby amended and restated in their entirety as follows:

	
A.

	
Section 6.1(C). Notwithstanding any provision of any annual incentive plan to the contrary, the Company shall pay to the Executive an amount, in cash, equal to the sum of (i) any unpaid incentive compensation which has been allocated or awarded to the Executive for a completed fiscal year preceding the Date of Termination under any such plan and which, as of the Date of Termination, is contingent only upon the continued employment of the Executive to a subsequent date, and (ii) a pro rata portion to the Date of Termination of the Amount the Executive would have earned with respect to the year in which the Date of Termination occurs, calculated by multiplying the award that the Executive would have earned for such year as if all applicable performance metrics had been achieved at the target level, by the fraction obtained by dividing the number of full months and any fractional portion of a month during such year through the Date of Termination by twelve (12).

	
B.

	
Section 16(N). “Good Reason” for termination by the Executive of the Execu­tive's employment shall mean the occurrence (without the Executive's express written consent which specifically references this Agreement) after any Change in Control, or prior to a Change in Control under the circumstances described in clauses (ii) and (iii) of the second sentence of Section 6.1 hereof (treating all references in paragraphs (I) through (VII) below to a "Change in Control" as references to a "Potential Change in Control"), of any one of the following acts by the Company, or failures by the Company to act, unless, in the case of any act or failure to act described in paragraph (I), (V), (VI), (VII) or (VIII) below, such act or failure to act is corrected prior to the Date of Termination specified in the Notice of Termination given in respect thereof:

(I)            the assignment to the Executive of any duties materially inconsistent with the Executive's status as an executive officer of the Company or a substantial adverse alteration in the nature or status of the Executive's responsibilities from those in effect immediately prior to the Change in Control including, without limitation, if the Executive was, immediately prior to the Change in Control, an execu­tive officer of a public company, (as defined under Section 16 of the Securities Exchange Act of 1934), any such alteration attributable to the Executive ceasing to be an executive officer of a public company; provided, however, that if a Change in Control occurs by solely by virtue of clause (V) of the definition of Change in Control, Good Reason shall not exist if, following the Change in Control, the Executive retains the same position with respect to either the Application Performance Management or Mainframe business unit, as the position held with the Company before the Change in Control;

1

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed, all as of the day and year first above written.

	
 

	
RECIPIENT

	
 

	 		
	
 

	
/s/ Daniel S. Follis, Jr.

	
 

	
 

	
Daniel S. Follis, Jr.

	
 

	
 

	
 

	
 

	
 

	
 

	
COMPUWARE CORPORATION

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Robert C. Paul

	
 

	
 

	
 

	
Robert C. Paul

	
 

	
 

	
 

	
Its:  Chief Executive Officer

	
 

 

 

2Exhibit 10.166

NOTICE OF RESCISSION

OF AMENDMENT TO STOCK OPTION AGREEMENT

 

To:   [Recipient Name] (Employee Number:  nnnnn)

Dated:  June 12, 2014

 

Reference is made to the Stock Option Agreement (the “Option Agreement”) dated [Date] between you and Covisint Corporation (the “Corporation”) pursuant to which the Company granted to you a stock option to purchase [#shares] shares of the Corporation’s common stock (“Shares”) at $[price] per share, upon the terms and conditions contained therein and in the Covisint Corporation 2009 Long Term Incentive Plan (the “Plan”), as amended by that certain amendment dated May 8, 2014 pursuant to which the Corporation added a “tandem” Stock Appreciation Right (the “Tandem SAR Amendment”).  Pursuant to this Notice of Rescission, the Corporation hereby rescinds the Tandem SAR Amendment in its entirety, effective as of the initial effective date thereof, such that the Tandem SAR Amendment shall have no force or effect whatsoever and shall create no rights or obligations whatsoever of one party against the other and the Option Agreement shall remain in full force and effect as if such Tandem SAR Amendment had not occurred.

 

Nothing herein shall be held to alter, vary or otherwise affect the terms, conditions, and provisions of the Option Agreement, except as noted above.

	
 

	
Very truly yours,

	
 

	
 

	
 

	
 

	
 

	
COVISINT CORPORATION

	
 

	
 

	
 

	
 

	
 

	
By:

	/s/ Michael A. Sosin	
 

	
 

	
 

	
Michael A. Sosin

	
 

	
 

	
 

	
Vice President, General Counsel and SecretaryExhibit 10.167

	

	
FY 20YY Compuware Short-Term and Long-Term Incentive Plan

Compuware Short-Term and Long-Term Incentive Plan

You have been selected to participate in Compuware’s Fiscal Year (FY) 20YY Short-Term and Long-Term Incentive Plan (the “Plan”).  The purpose of this Plan is to provide you with additional incentives to achieve our annual business goals while positioning Compuware for long-term results, and to provide an opportunity to share in Compuware’s success.

Short-Term Incentive

You are eligible for a Short-Term Incentive (“STI”) award (“STI Award”) equal to the STI percent multiplied by your base salary as of July 1, 20YY.  STI Awards will be prorated between performance levels and will be paid no later than 2 1⁄2 months following the close of FY 20YY.  As set forth on the Summary Page, STI Awards are based on fiscal year-end results for the following independent measures:

		-	Company Revenue (“Revenue”) – 50%

		-	Company Operating Income (“Operating Income”) (non-GAAP basis) – 50%

Long-Term Incentive

You are eligible for a Long-Term Incentive (“LTI”) award (“LTI Award”) equal to the LTI percent multiplied by your base salary as of May 1, 20YY.  As set forth on the Summary Page, the LTI Award is divided equally among three separate components: Long-Term Performance Cash, Non-Qualified Stock Options and Restricted Stock Units.

		A.	Long-Term Performance Cash comprises 1/3 of the targeted LTI Award.  Long-Term Performance Cash will be prorated between performance levels and will be paid no later than 30 days following the close of the second fiscal year following the completion of FY 20YY.  Long-Term Performance Cash is based fiscal year-end results for the following independent measures:

		-	Company Revenue (“Revenue”) – 50%

		-	Company Operating Income (“Operating Income”) (non-GAAP basis) – 50%

		B.	Performance-based Non-Qualified Stock Options (“NQSOs”) comprise 1/3 of the targeted LTI Award.  The number of NQSOs is determined by dividing 1/3 of the targeted LTI Award by the Black Scholes valuation on the date of the NQSO grant.  The ultimate value of the NQSOs will depend upon the performance of the company stock over the option term as well as when the NQSOs are exercised.  The NQSO grant will be at Fair Market Value.  Fair Market Value is the closing price of Compuware common stock on the last stock exchange trading day immediately preceding the grant date.  The NQSOs vest subject to the Company achieving specified performance targets for Revenue and Operating Income (see Summary Page).  Attainment of the targets will determine the number of shares you will earn.  Earned shares will be prorated between the threshold and target levels of attainment for each performance measure.  The specific terms and conditions of your stock option grant are included in your Stock Option Agreement.  You will receive an email message once your agreement is ready for your review and acceptance.

		-	Company Revenue FYEYY+2  (“Revenue”)  – 50%

		-	Company Operating Income FYEYY+2 (“Operating Income”) (non-GAAP basis) – 50%

		C.	Restricted Stock Units (“RSUs”) comprise 1/3 of the targeted LTI Award.  The number of RSUs is calculated by dividing 1/3 of the targeted LTI Award by the closing price of Compuware common stock on the last stock exchange trading day immediately preceding the grant date.  The RSUs vest over a period of four years at a rate of 25% on each anniversary of the grant date.  At vest, the RSUs are converted to shares of common stock.  The specific terms and conditions of your RSU grant are included in your RSU Agreement.  You will receive an email message once your agreement is ready for your review and acceptance.

 

Compuware Corporation Confidential

Page 1 to 4

Exhibit 10.167

	

	
FY 20YY Compuware Short-Term and Long-Term Incentive Plan

 

Plan Administration

This Plan is issued under and subject to the Compuware Corporation Amended and Restated 2007 Long Term Incentive Plan

 

 (“LTIP”).  If there is any conflict between this Plan and the LTIP, the LTIP shall control.

The Plan is administered by the Compensation Committee of the Board of Directors (“Committee”). The decision to make payouts under this Plan is at the Committee’s discretion or the discretion of the CEO as provided in Section 1.5(c) of the 2007 LTIP, which states:

Notwithstanding anything in this Plan to the contrary to the extent permitted by applicable law, the Committee may delegate to Chief Executive Officer of the Corporation the authority, subject to such terms and limitations as the Committee shall determine by resolution, to grant Awards to, cancel, modify, or waive rights with respect to, alter, discontinue or terminate Awards held by and otherwise exercise the Committee’s authority under this Plan with respect to Awards held by, Participants who are not persons subject to Section 16 of the Exchange Act.  The acts of the Chief Executive Officer pursuant to such delegated authority shall be treated hereunder as acts of the Committee and the Chief Executive Officer shall report regularly to the Committee regarding any Award so granted or other actions taken by the Chief Executive Officer pursuant to such delegated authority.

The Committee intends that the STI Award and Long-Term Performance Cash be exempt from Code Section 162(m) as “performance-based compensation” (as defined in Internal Revenue Code Section 162(m) and the regulations there under).

This Plan, together with the Stock Option and RSU Agreements, the LTIP and any subsequent correspondence issued by the Committee or the CEO, shall constitute the entire agreement between you and Compuware regarding the awards and supersedes all contradictory terms, representations or claims, whether written or oral. Compuware reserves the right to change or discontinue this Plan for business or economic reasons at any time without prior notice.  Nothing in the Plan is intended to confer upon you any right to continued employment.

This Plan applies to FY 20YY only and does not confer any right on you to any award or payment for other fiscal years.  If Compuware makes any award or payment to you with respect to FY 20YY, it shall not be obliged to make any subsequent award or payment to you for subsequent fiscal years. In the event that your employment with Compuware terminates (either voluntarily or involuntarily) prior to the payment of the STI Award or the Long-Term Performance Cash, you will not receive any portion of either amount unless termination is due to death or Disability, as defined in the LTIP.

If any dispute arises concerning payments to you under the terms of this Plan, you agree not to initiate legal action until you have first presented such concerns directly to the Committee or the CEO in writing, and until the Committee or CEO has had a reasonable time in which to review and address those concerns.  No legal action arising out of this Plan may be brought by either party more than one year after the cause of action has occurred.  This Plan shall be construed, interpreted, and governed by the local laws and regulations where you are employed.  In the event of legal action, the prevailing party shall be entitled to receive from the opposing party the costs incurred in such legal action, including but not limited to reasonable attorney's fees.

 

Compuware Corporation Confidential

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Exhibit 10.167

	

	
FY 20YY Compuware Short-Term and Long-Term Incentive Plan

 

Compuware Short-Term and Long-Term Incentive Summary

	
Plan Participant Name:

	
<<EE_Name>> (<<EE_Number>>)

	
Plan Effective Dates:

	
April 1, 20YY to March 31, 20YY

	
Group:

	
<<Business_Unit>>

	
Salary:

	
<<Base_Salary_Currency>>  <<Base_Salary>>

	
Manager:

	
<<Manager>>

	
STI Percent:

	
<<STI_Percent%>>

	
Location:

	
<<City>>

	
STI Value:

	
<<STI_Currency>>  <<STI_Target>>

	
 

	
 

	
LTI Percent:

	
<<LTI_Percent%>>

	
 

	
 

	
LTI Value:

	
<<LTI_Currency>> <<LTI_Target>>

Short-Term Incentive Example - <<STI_Percent%>> - <<STI_Currency>>  <<STI_Target>>

The below calculations for your Short-Term Incentive are for illustrative purposes only based on your June 1, 20YY salary.  Actual Short-Term Incentive calculations will be derived using your base salary as of July 1, 20YY and based on the attainment of the annual Corporate targets.

	
 

	
Minimum

	
Target

	
Maximum

	
Payout %

	
50%

	
100%

	
200%

	
 

	
 

	
 

	
 

	
Company Revenue

	
USD <<Threshold_Rev>>

	
USD <<Target_Rev>>

	
USD <<Max_Rev>>

	
Cash Payout

	
<<STI_Currency>>  <<STI_Target@25%>>

	
<<STI_Currency>>  <<STI_Target@50%>>

	
<<STI_Currency>>  <<STI_Target>>

	
 

	
 

	
 

	
 

	
Company Operating Income (non-GAAP basis)

	
USD <<Threshold_ OpInc>>

	
USD <<Target_OpInc>>

	
USD <<Max_OpInc>>

	
Cash Payout

	
<<STI_Currency>>  <<STI_Target@25%>>

	
<<STI_Currency>>  <<STI_Target@50%>>

	
<<STI_Currency>>  <<STI_Target>>

 

Long-Term Incentive Example – <<LTI_Percent%>> - <<LTI_Currency>>  <<LTI_Target>>

	 	A.	Long-Term Performance Cash – 33% - <<LTI_Currency>> <<LTI_Target@33%>>

The below calculations for your Long-Term Performance Cash are for illustrative purposes only based on your May 1, 20YY salary.

	
 

	
Minimum

	
Target

	
Maximum

	
Payout %

	
50%

	
100%

	
200%

	
 

	
 

	
 

	
 

	
Company Revenue

	
USD <<Threshold_Rev>>

	
USD <<Target_Rev>>

	
USD <<Max_Rev>>

	
Cash Payout

	
<<LTI_Currency>>  <<LTI_Target@33%@25%>>

	
<<LTI_Currency>>  <<LTI_Target@33%@50%>>

	
<<LTI_Currency>>  <<LTI_Target@33%>>

	
 

	
 

	
 

	
 

	
Company Operating Income (non-GAAP basis)

	
USD <<Threshold_OpInc>>

	
USD <<Target_OpInc>>

	
USD <<Max_OpInc>>

	
Cash Payout

	
<<LTI_Currency>>  <<LTI_Target@33%@25%>>

	
<<LTI_Currency>>  <<LTI_Target@33%@50%>>

	
<<LTI_Currency>>  <<LTI_Target@33%>>

 

Compuware Corporation Confidential

Page 3 to 4

Exhibit 10.167

	

	
FY 20YY Compuware Short-Term and Long-Term Incentive Plan

 

	 	B.	Performance-based Non-Qualified Stock Options (NQSO) – 33% - <<LTI_Currency>> <<LTI_Target@33%>>

The number of options (NQSOs) awarded is determined by applying the Black Scholes value (<<Black_Scholes_Option_Price>>) to this component.  Options are earned and vest upon achieving FYEYY+2 performance measures as shown below.

	 	
Minimum

	
Target

	
Payout %

	
80%

	
100%

			
	
Company Revenue (FYEYY+2)

	
USD <<Threshold_Rev>>

	
USD <<Target_Rev>>

	
Number of Options Earned

	
<<Threshold_NQSO>>

	
<<Target_NQSO>>

			
	
Company Operating Income (FYEYY+2) (non-GAAP basis)

	
USD <<Threshold_OpInc>>

	
USD <<Target_OpInc>>

	
Number of Options Earned

	
<<Threshold_NQSO>>

	
<<Target_NQSO>>

	 	C.	Restricted Stock Units (RSU) – 33% - <<LTI_Currency>> <<LTI_Target@33%>>

The number of RSUs awarded is determined by applying the stock price value to this component.  The RSUs shall vest over four years, 25% of the total RSUs vesting per year.

	
Stock Price ([Grant Date])

	
Total RSU’s

		
	
<<CPWR_Closing_Price>>

	
<<Target_RSU>>

Compuware Corporation Confidential

 

 

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