Document:

Comp-ECDiscretionaryAnnualIncentivePlanFinal-ApprovedOctober152013withoutsignatureblock

-1-

EXECUTIVE COMMITTEE
DISCRETIONARY ANNUAL INCENTIVE PLAN
Effective  October 15, 2013

1.    PURPOSE.  The purpose of the Executive Committee Discretionary Annual Incentive Plan (the “Plan”) is to provide the CEO and Senior Vice Presidents of Avaya Holdings Corp. and its subsidiaries (collectively, the “Company”) with incentive compensation based upon their individual contribution to the success of the Company’s business and the achievement of financial results.  The Plan is designed to enhance the ability of the Company to attract individuals of exceptional talent upon whom, in large measure, the sustained progress, growth and profitability of the Company depends.

2.    DEFINITIONS.  As used in the Plan, the following terms shall have the meanings set forth below:

(a)    “Award” shall mean a cash payment.

(b)    “Board” shall mean the Board of Directors of Avaya Holdings Corp.

(c)    “Cause” shall mean a material breach by the Participant of the Participant’s duties and responsibilities which is not promptly remedied after the Company gives the Participant written notice specifying such breach, or (ii) the commission by the Participant of a felony involving moral turpitude, or (iii) the commission by the Participant of theft, fraud, material breach of trust or any material act of dishonesty involving the Company, or (iv) a significant violation by the Participant of the code of conduct of the Company or of any statutory or common law duty of loyalty to the Company.

(d)    “Committee” shall mean the Compensation Committee of the Board (or any successor committee or delegate appointed by the Board).
 
(e)    “Participant” shall mean each of the Chief Executive Officer (“CEO”) and any Senior Vice President of Avaya Holdings Corp. and any other person selected by the Committee to participate in the Plan.

(f)    “Performance Period” shall mean each of the six-month periods from October 1 to March 31 and April 1 to September 30 of each fiscal year, or such other periods of time (to be defined by the Committee) during which a Participant provides services on account of which the Award is made.

(g)    “Person” shall mean any individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization, or government or political subdivision thereof.

(h)    “Target Award” shall mean an Award level that may be paid if certain performance criteria are achieved in the Performance Period.

-2-

3.    ELIGIBILITY.  (a)  Subject to Sections 3(b) and (c) below, individuals employed by the Company during a Performance Period who are on-roll as of the last day of the Performance Period are eligible to be Participants under the Plan for such Performance Period and may be considered for an Award. 

(b)    Notwithstanding paragraph (a) above, a Participant will not be eligible to receive an Award if he or she:

		
	(i)
	voluntarily terminates employment before the Award is paid; or

		
	(ii)
	is involuntarily terminated for Cause before the Award is paid.

(c)An employee is not rendered ineligible to be a Participant by reason of being a member of the Board.  Nothing in this section shall be construed to entitle a Participant to an Award.

4.    AWARDS-GENERAL.  

(a)At the beginning of each Performance Period (or as soon as practicable thereafter), the Committee will establish (i) Target Awards for Participants and (ii) the performance criteria to be applicable to Awards for such Performance Period.  The performance criteria utilized by the Committee may be based on individual performance, other Company and business unit financial objectives, customer satisfaction indicators, operational efficiency measures, and other measurable objectives tied to the Company’s success or such other criteria as the Committee shall determine.  Awards will be made by the Committee following the end of each Performance Period.  Awards shall be paid as soon as practicable after the Performance Period.  

(b)The total amount paid with respect to all Awards for any Performance Period shall be determined by the Committee; but it shall not be less than 70% of all Target Awards for all Participants in the Plan for such Performance Period.  

(c)The amount paid to a Participant with respect to an Award shall be determined in the sole discretion of the Committee or in the sole discretion of such person or committee empowered by the Committee or the Board.  In the case of Participants other than the CEO, the CEO shall make a recommendation to the Committee as to the amount of each such Participant’s Award payment.  

(d)The determination of the amount paid with respect to an Award for each Participant shall be made after the end of each Performance Period and may be less than (including no Award) or greater than the Target Award, up to a maximum amount of two times such Participant’s Target Award.

5.    OTHER CONDITIONS.  (a) No person shall have any claim to an Award under the Plan and there is no obligation for uniformity of treatment of Participants under the Plan.  Awards under the Plan may not be assigned or alienated.

(b)    Neither the Plan nor any action taken hereunder shall be construed as giving to any Participant the right to be retained in the employ of the Company.

(c)    The Company shall have the right to deduct from any Award to be paid under the Plan any federal, state or local taxes required by law to be withheld with respect to such payment.

-3-

(d)    Awards under the Plan will, to the extent provided therein, be included in base compensation or covered compensation under the retirement programs of the Company for purposes of determining pensions, retirement and death related benefits.

(e)    In the event an Award under the Plan is deferred under a plan of the Company, it will be reflected in the calculations of the above benefit plans as if it had been paid as scheduled and not deferred.

6.    DESIGNATION OF BENEFICIARIES. A Participant may, if the Committee permits, designate a beneficiary or beneficiaries to receive all or part of the Award which may be made to the Participant, or may be payable, after such Participant’s death.  A designation of beneficiary shall be made in accordance with procedures specified by the Company and may be replaced by a new designation or may be revoked by the Participant at any time in accordance with procedures specified by the Company.  In case of the Participant’s death, an Award with respect to which a designation of beneficiary has been made (to the extent it is valid and enforceable under applicable law) shall be paid to the designated beneficiary or beneficiaries.  Any Award granted or payable to a Participant who is deceased and not subject to such a designation shall be distributed to the Participant’s estate.  If there shall be any question as to the legal right of any beneficiary to receive an Award under the Plan, the amount in question may be paid to the estate of the Participant, in which event the Company shall not have any further liability to anyone with respect to such amount.

7.    PLAN ADMINISTRATION. (a) The Committee shall have full discretionary power to administer and interpret this Plan and to establish rules for its administration (including the power to delegate authority to others to act for and on behalf of the Committee) subject to such resolutions, not inconsistent with this Plan, as may be adopted by the Board.  In making any determinations under or referred to in this Plan, the Committee and its delegates, if any, may, but are not required, to rely on opinions, reports or statements of employees of the Company and of counsel, public accountants and other professional or expert persons.

(b)    This Plan shall be governed by the laws of the State of Delaware and applicable Federal law.

8.    MODIFICATION OR TERMINATION OF PLAN. The Board or the Committee may modify or terminate this Plan at any time, effective at such date as the Board or the Committee, respectively, may determine.  Any authorized officer of the Company, with the concurrence of the Company’s legal advisors, shall be authorized to make minor or administrative changes in this Plan or changes required by or made desirable by law or government regulation.  Such a modification may affect present and future Participants.    

9.    TERM OF THE PLAN.    This Plan shall continue in full force and effect until such time as it is terminated by the Board or the Committee in accordance with Section 8.singletouchexh10_263.htm

 Exhibit 10.26.3

 

 

OMNIBUS SERVICES AND OPTION ASSIGNMENT AGREEMENT

 

THIS OMNIBUS SERVICES AND OPTION ASSIGNMENT AGREEMENT (this “Agreement”) is entered into by and among Single Touch Systems, Inc., a Delaware corporation with a business address of 100 Town Square Place, Suite 204, Jersey City, NJ 07310 (“SITO”), Peltz Capital Management, LLC, a Delaware limited liability company with a business address of 280 Park Ave, 41st Floor New York, NY 10017 (“PCM”), and Anthony Macaluso, whose business address is 2235 Encinitas Boulevard, Suite 210, Encinitas, California 92024 (“Macaluso”).  The foregoing parties hereto are referred to herein as the “Parties” and each a “Party.”  This Agreement is effective as of the date the last Party executes this Agreement, which is September 11, 2013 (the “Effective Date”).

 

RECITALS

 

WHEREAS, Macaluso and PCM are parties to: (i) that certain Option Agreement dated October 15, 2012, as amended by that certain Amendment to Option Agreement dated December 26, 2012 and (ii) that certain Option Agreement dated December 7, 2012, as amended by that certain Amendment to Option Agreement dated December 26, 2012 (collectively, the “Option Agreements”);

 

WHEREAS, Macaluso (referred to as “Grantor” in the Option Agreements) is the Chairman of the Board of SITO (referred to as “STS” in the Option Agreements), and pursuant to the Option Agreements, PCM (referred to as “Grantee” in the Option Agreements) provides certain advisory services to Macaluso related to possible transactions involving SITO (the “Services”);

 

WHEREAS, under each Option Agreement, Macaluso has granted to PCM an Option (as defined in each Option Agreement) in exchange for performing the Services (the Options granted under the Option Agreements are referred to herein collectively as the “Macaluso Options”);

 

WHEREAS, subject to the terms hereof, Macaluso desires to assign to SITO his rights under the Option Agreements to receive the Services;

 

WHEREAS, subject to the terms hereof, PCM desires to assign to SITO its rights as Grantee under the Option Agreements, including its rights to purchase common shares of SITO (“Shares”) from Macaluso under the Macaluso Options;

 

WHEREAS, subject to the terms hereof, SITO desires to accept such assignments, and in consideration of such assignments, SITO desires to grant to PCM options to purchase the same number of Shares at the same exercise price (as both the number of Shares and the exercise price therefor may be adjusted under the Option Agreements) and for the period commencing on the Effective Date and ending at the end of the respective Option Periods (as defined in the respective Option Agreements) (the “SITO Options”);

 

WHEREAS, SITO has also agreed to additional registration rights terms in connection with the transactions described above.

 

 

  

- 1 -

  

 

 

AGREEMENT

 

NOW THEREFORE, in exchange for the consideration and agreements set forth below, the sufficiency of which is hereby acknowledged, and the above recitals which are incorporated into this Agreement, the Parties hereby agree as follows:

 

	
1.  

	
Assignments:

 

	 	
a.  

	
Effective as of the Effective Date, Macaluso hereby sells, transfers, assigns and delivers to SITO all of Macaluso’s right, title and interest in and to the receipt of Services under the Option Agreements, PCM hereby consents to such assignment, and SITO hereby accepts such assignment.  PCM shall hereinafter report to SITO’s senior executives or board of directors as reasonably requested in connection with performance of the Services.  The Services provided to SITO shall be the same as the Services described in the Option Agreements and shall be subject to the same terms as set forth in Section 5 of the Option Agreements.  SITO ACCEPTS THE SERVICES SUBJECT TO THE DISCLAIMER OF REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 5 OF THE OPTION AGREEMENTS.

 

	 	
b.  

	
Effective as of the Effective Date, PCM hereby sells, transfers, assigns and delivers to SITO its rights as Grantee to purchase Shares from Macaluso under the Macaluso Options, Macaluso hereby consents to such assignment, and SITO hereby accepts such assignment.  SITO shall hereinafter have the same rights as PCM formerly had with respect to the Macaluso Options (other than registration rights and obligations as provided in Section 6 and Exhibit A of the Option Agreements), and Macaluso shall have the same duties and obligations to SITO as it formerly had to PCM with respect to the Macaluso Options.

 

	
2.  

	
Grant of Options by SITO to PCM: Effective as of the Effective Date, SITO hereby (a) grants the SITO Options to PCM, (b) undertakes to deliver Shares upon exercise of the SITO Options within the time stated in the Option Agreements for the Macaluso Options (regardless of whether SITO exercises the Macaluso Options or whether Macaluso satisfies his delivery obligation under the Macaluso Options), and (c) agrees that PCM shall have the same rights as stated in Section 4 of the Option Agreements against SITO for any failure of SITO to perform on such delivery obligations.

 

	
3.  

	
Warranty of Availability of Shares:  SITO represents and warrants that it shall at all times during the periods in which the SITO Options may be exercised reserve out of its authorized and unissued Shares and/or retain the right to purchase sufficient Shares to satisfy its obligations under the SITO Options.  SITO further agrees that if at any time SITO lacks sufficient authorized and unissued or treasury Shares to deliver Shares following PCM’s exercise of one or both SITO Options, SITO will exercise the Macaluso Options or other options it may have to purchase Shares to the extent necessary to fulfill SITO’s obligations under the SITO Options.  SITO acknowledges and agrees that its obligations to deliver the required shares to PCM shall not be contingent in any manner on SITO’s successful purchase from Macaluso pursuant to the Macaluso Options as assigned.

 

 

  

- 2 -

  

 

 

	
4.  

	
Exercise of Options:  PCM shall inform SITO of its intent to exercise the SITO Options (each, an “Exercise”), or any part of the SITO Options, by providing: (a) notice to SITO by email to the Chief Executive Officer or at the address identified above, setting forth the date of the option and the number of shares being purchased, and (b) payment of the purchase price in readily available funds.

 

	
5.  

	
Amendments to Registration Rights Agreements:  SITO and PCM entered into those certain Registration Rights Agreements dated October 15, 2012 and December 7, 2012, each in the form attached as Exhibit A to the respective Option Agreements (the “Registration Rights Agreements”).  The Parties acknowledge that pursuant to the Registration Rights Agreements, SITO filed a registration statement on Form S-1, SEC File No. 333-186490 (the “Registration Statement”), registering the resale by PCM of the Shares underlying the Macaluso Options, with the Securities and Exchange Commission (the “SEC”).  SITO shall, at its sole cost and expense, file an appropriate amendment (the “Registration Statement Amendment”) to the Registration Statement on the appropriate form under the Securities Act of 1933, as amended (the “Securities Act”), with the SEC reflecting the changes to PCM’s source of the Shares as provided herein.  SITO shall file the Registration Statement Amendment no later than fifteen (15) days after the Effective Date, and SITO shall thereafter use its best efforts to have the Registration Statement Amendment declared effective as soon as possible after filing (and in any event within 90 days of the filing), and to keep such Registration Statement effective for a minimum of three years.  In the event the Staff of the SEC determines it will not allow the Registration Statement Amendment to be declared effective, then SITO shall promptly after such determination (and no event more than fifteen (15) days after such determination) file a new registration statement on the appropriate form under the Securities Act covering the resale from time to time of the Shares issuable upon exercise of the SITO Options, and exercise best efforts that it become effective as soon as possible after filing (and in any event within 90 days of the filing), which new registration statement will thereafter become the “Registration Statement” referred to in the Registration Rights Agreement.  The term “Registrable Securities” under the respective Registration Rights Agreements shall hereinafter mean the securities issuable upon exercise of the respective SITO Options.

 

	
6.  

	
Ratification: Except to the extent amended, assigned and assumed herein, the Option Agreements shall remain in full force and effect.  Except as amended by Section 5, the Registration Rights Agreements shall remain in full force and effect.

 

	
7.  

	
Entire Agreement/Amendments:  This Agreement, the Option Agreements and the Registration Rights Agreements represent the entire agreement between the Parties regarding the subject matter herein and there are no other agreements or representations between the Parties regarding this matter, whether oral or written.  This Agreement may only be modified or amended by a written document signed by all of the Parties.

 

 

  

- 3 -

  

 

 

	
8.  

	
Assignments, Successors:  No Party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other Parties.  Any other purported assignment without such written consent of the other Parties shall be void and of no effect.  This Agreement is binding upon, and inures to the benefit of, the Parties hereto and their respective heirs, executors, administrators, personal and legal representatives, successors and permitted assigns.

 

	
9.  

	
Third Party Beneficiaries:  Except as otherwise expressly provided by this Agreement or in the Option Agreements, there are no third party beneficiaries to this Agreement.

 

	
10.  

	
Notice:  Except as expressly contemplated herein, any notice required or contemplated by this Agreement must be in writing, signed by the sending Party and delivered to the other Party(ies) at their address listed above in a manner that memorializes receipt (example: overnight courier with receipt, or certified mail, return receipt requested).

 

	
11.  

	
Governing Law:  This Agreement is governed by the laws of the State of New York.

 

	
12.  

	
Disputes:  Any disputes arising out of or relating to this Agreement shall be resolved exclusively in the state or federal courts located in New York, New York and each party hereto irrevocably submits to the jurisdiction of such courts.  In any dispute, the prevailing party shall be awarded its reasonable attorneys’ fees and costs.

 

	
13.  

	
Further Assurances:  Each party hereto shall do and perform or cause to be done and performed all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

	
14.  

	
Specific Performance:  The Parties agree that in the event of breach of any obligation hereunder, the Party(ies) to whom performance is due would suffer irreparable harm and that money damages would not be a sufficient remedy for any breach of this Agreement by any Party.  Accordingly, in addition to all other remedies it may be entitled to, each Party shall be entitled to seek specific performance and injunctive or other equitable relief as a remedy for any such breach.

 

	
15.  

	
Counterparts: This Agreement may be executed in counterpart signature pages executed and delivered via facsimile transmission or via email with scan or email attachment.  Any such counterpart executed and delivered via facsimile transmission or via email with scan or email attachment will be deemed an original for all intents and purposes, and all such counterparts shall together constitute one and the same instrument.

 

[SIGNATURE PAGE FOLLOWS]

 

 

  

- 4 -

  

 

 

IN WITNESS WHEREOF, the Parties have caused this Omnibus Services and Option Assignment Agreement to be entered into as of the Effective Date.

 

	 	“SITO”	 
	 	 	 
	 	Single Touch Systems, Inc.	 
	 	 	 
	
 

	/s/ James Orsini	 
	 	James Orsini	 
	 	Chief Executive Officer & President	 
	 	 	 
	 	 	 
	 	“PCM”	 
	 	 	 
	 	Peltz Capital Management, LLC	 
	 	 	 
	 	 	 
	 	/s/ Harlan Peltz	 
	 	Harlan Peltz	 
	 	Member	 
	 	 	 
	 	 	 
	 	“MACALUSO”	 
	 	 	 
	 	 	 
	 	/s/ Anthony Macaluso	 
	 	Anthony Macaluso, an individual	 
	 	 	 

 

                                                         

 

 

 

Signature Page to Omnibus Services and Option Assignment Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}]]