Document:

Separation Letter Agreement between the Company and Karen Willem

 Exhibit 10.2 

March 31, 2010 
 VIA HAND DELIVERY

 Karen Willem 
 c/o Openwave Systems
Inc. 
 2100 Seaport Boulevard 
 Redwood
City, CA 94063 
 Re:     Separation Agreement 

Dear Karen: 
 As discussed, this letter sets
forth the terms of the separation agreement (the “Agreement”) that Openwave Systems Inc. (the “Company”) is offering to you to aid in your employment transition. 

1. Separation Date. Your last day of work with the Company and your employment termination date (which constitutes the date of your
“separation from service” (within the meaning of Treasury Regulation Section 1.409A-1(h)) will be March 31, 2010 (the “Separation Date”). As of the Separation Date, you will no longer be employed as Chief Financial
Officer of the Company or hold any other employment or officer positions with the Company or any of its subsidiaries or affiliates. You and the Company agree that your separation from service is an involuntary separation from service within the
meaning of Treasury Regulation Section 1.409A-1(n)(1). 
 2. Accrued Salary and Paid Time Off. On the Separation
Date, the Company will pay you all accrued salary and paid time off/vacation earned through the Separation Date, subject to standard payroll deductions and withholdings. You are entitled to these payments by law, regardless of whether or not you
sign this Agreement. 
 3. Severance Benefits. If you sign, date and return this Agreement to the Company on or within
twenty-one (21) days and allow it to become effective, and you comply with your obligations hereunder, the Company will provide you with the following as your sole severance benefits (the “Severance Benefits”), which will be in lieu
of, and will fully satisfy the Company’s obligations with regard to, any other severance benefits that you may be entitled to receive (including but not limited to severance benefits under the Employment Agreement between you and the Company
dated July 7, 2008 (the “Employment Agreement”)): 
 (a) Severance Payment. The Company will pay you cash
severance in the amount of $150,000 which is equal to six (6) months of your final base pay (the “Severance Payment”). The Severance Payment will be subject to required deductions and withholdings, and will be paid to you in one lump
sum within ten (10) business days after the Effective Date of this Agreement (as defined in Section 12(d) herein). 

(b) Bonus Payment. The Company will pay you a bonus payment in the amount of $150,000, which is equal to fifty-percent
(50%) of your current annual bonus target under the Company’s Corporate Incentive Plan (the “Bonus Payment”). The Bonus Payment will be subject to required deductions and withholdings, and will be paid to you in one lump sum
within ten (10) business days after the Effective Date of this Agreement (as defined in Section 12(d) herein). 

 (c) Health Insurance. To the extent provided by the federal COBRA law or, if
applicable, state insurance laws (collectively, “COBRA”), and by the Company’s current group health insurance policies, you will be eligible to continue your group health insurance benefits after the Separation Date. Later, you may be
able to convert to an individual policy through the provider of the Company’s health insurance, if you wish. You will be provided with a separate notice describing your rights and obligations under COBRA laws on or after the Separation Date.
Additionally, if you timely elect continued group health insurance coverage under COBRA, the Company will pay your COBRA premiums (including coverage for your eligible dependants) for a maximum period of six (6) months following the Separation
Date; provided that, the Company’s obligation to pay your COBRA premiums will cease earlier if you become eligible for coverage under a group health plan of a subsequent employer. You are required to notify the Company immediately if you become
eligible for coverage under a group health plan of a subsequent employer. 
 4. Stock Options. Vesting of your outstanding stock
options will cease effective as of the Separation Date, and any unvested options shall terminate. You will be able to exercise your vested options in accordance with the terms of the Option agreement and the controlling stock option plan.

 5. No Other Compensation or Benefits. You acknowledge that, except as expressly provided in this Agreement, you have not
earned and will not receive from the Company any additional compensation, severance, or benefits on or after the Separation Date, with the exception of any vested benefits you may have under the express terms of a written ERISA-qualified benefit
plan (e.g., 401(k) account) or any vested stock options if timely exercised by you. By way of example, but not limitation, you represent that you have not earned and are not owed (unless already paid to you or explicitly provided for in this
Agreement) any bonus, incentive compensation, or equity. 
 6. Expense Reimbursement. You agree that, no later than thirty
(30) days following the Separation Date, you will submit your final documented expense reimbursement statement reflecting all business expenses you incurred through the Separation Date, if any, for which you seek reimbursement. The Company will
reimburse you for such expenses pursuant to its regular business practice. 
 7. Return of Company Property. By no later than
the close of business on the Separation Date, you must return to the Company all Company documents (and all copies thereof) and other property of the Company in your possession or control, including, but not limited to, Company files, notes,
correspondence, memoranda, notebooks, drawings, records, reports, lists, compilations of data, proposals, agreements, drafts, minutes, studies, plans, forecasts, purchase orders, financial and operational information, product and training
information, research and development information, sales and marketing information, personnel and compensation information, vendor information, promotional literature and instructions, product specifications and manufacturing information,
computer-recorded information, electronic information (including e-mail and correspondence), other tangible property and equipment (including, but not limited to, computer equipment, PDAs, facsimile machines, and cellular telephones), credit cards,
entry cards, identification badges and keys; and any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof in whole or in part). You agree that you will make a diligent
search to locate any such documents, property and information within the required timeframe. In addition, if you have used any personally owned computer, server, or e-mail system to receive, store, review, prepare or transmit any Company
confidential or proprietary data, materials or information, then you agree to provide the Company, within five (5) business days after the Separation Date, with a computer-useable copy of all such information and then permanently delete and
expunge such Company confidential or proprietary information from those systems without retaining any reproductions (in whole or in part); and you agree to provide the Company access to your system as requested to verify that the necessary copying
and/or deletion is done. Your timely compliance with this Section 7 is a precondition to your receipt of the Severance Benefits. 

 8. Proprietary Information Obligations. You acknowledge and reaffirm your continuing
obligations to the Company under your Confidential Information and Inventions Assignment Agreement (the “Confidentiality Agreement”), which you signed on July 7, 2008. 

9. Nondisparagement. You agree not to disparage the Company and its officers, directors, employees, shareholders, investors, and agents,
in any manner likely to be harmful to them or their business, business reputations or personal reputations; provided that you may respond accurately and fully to any request for information to the extent required by legal process. 

10. No Voluntary Adverse Action; and Cooperation. You agree that you will not voluntarily (except in response to legal compulsion) assist
any person in bringing or pursuing any proposed or pending litigation, arbitration, administrative claim or other formal proceeding against the Company, its parent or subsidiary entities, affiliates, officers, directors, investors, employees or
agents. In addition, you agree to cooperate fully with the Company in connection with its actual or contemplated defense, prosecution, or investigation of any claims or demands by or against third parties, or other matters arising from events, acts,
or failures to act that occurred during the period of your employment by the Company. Such cooperation includes, without limitation, making yourself available to the Company upon reasonable notice, without subpoena, to provide complete, truthful and
accurate information in witness interviews, depositions, and trial testimony. The Company will reimburse you for reasonable out-of-pocket expenses you incur in connection with any such cooperation (excluding forgone wages, salary, or other
compensation) and will make reasonable efforts to accommodate your scheduling needs. In addition, you agree to execute all documents (if any) necessary to carry out the terms of this Agreement. 

11. No Admissions. Nothing contained in this Agreement shall be construed as an admission by you or the Company of any liability,
obligation, wrongdoing or violation of law. 
 12. Release of Claims. 

(a) General Release. In exchange for the consideration provided to you under this Agreement to which you would not otherwise be entitled,
including but not limited to the Severance Benefits, you hereby generally and completely release the Company and its current and former directors, officers, employees, shareholders, investors, partners, agents, attorneys, predecessors, successors,
parent and subsidiary entities, insurers, affiliates, and assigns (collectively, the “Released Parties”) of and from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to
events, acts, conduct, or omissions occurring prior to or on the date you sign this Agreement (collectively, the “Released Claims”). 

(b) Scope of Release. The Released Claims include, but are not limited to: (i) all claims arising out of or in any way related to
your employment with the Company, or the termination of that employment; (ii) all claims related to your compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay,
fringe benefits, stock, stock options, or any other ownership interests in the Company; (iii) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing (including, but not limited
to, claims arising under or based on the Employment Agreement); (iv) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (v) all federal, state, and local statutory
claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990 (as amended), the
federal Family and Medical Leave Act (as amended) (“FMLA”), the federal Age Discrimination in Employment Act of 1967 (as amended) (the “ADEA”), the California Fair Employment and Housing Act (as amended), the California Labor
Code, and the California Family Rights Act (“CFRA”). 

 (c) Excluded Claims. Notwithstanding the foregoing, the following are not included in the
Released Claims (the “Excluded Claims”): (i) any rights or claims for indemnification you may have pursuant to any written indemnification agreement with the Company to which you are a party, the charter, bylaws, or operating
agreements of the Company, or under applicable law; (ii) any rights which are not waivable as a matter of law; and (iii) any claims for breach of this Agreement. In addition, nothing in this Agreement prevents you from filing, cooperating
with, or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor, or any other government agency, except that you acknowledge and agree that you are hereby waiving your right to any monetary
benefits in connection with any such claim, charge or proceeding. You hereby represent and warrant that, other than the Excluded Claims, you are not aware of any claims you have or might have against any of the Released Parties that are not included
in the Released Claims. 
 (d) ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any
rights you may have under the ADEA, and that the consideration given for the waiver and release in this Section 12(d) is in addition to anything of value to which you are already entitled. You further acknowledge that you have been advised, as
required by the ADEA, that: (i) your waiver and release do not apply to any rights or claims that may arise after the date that you sign this Agreement; (ii) you should consult with an attorney prior to signing this Agreement (although you
may choose voluntarily not to do so); (iii) you have twenty-one (21) days in which to consider this Agreement (although you may choose voluntarily to sign it earlier); (iv) you have seven (7) days following the date you sign this
Agreement to revoke the Agreement (by providing written notice of your revocation to the Company’s Chief Executive Officer); and (v) this Agreement will not be effective until the date upon which the revocation period has expired, which
will be the eighth day after the date that this Agreement is signed by you provided that you do not revoke it (the “Effective Date”). 

(e) Waiver of Unknown Claims. In giving the releases set forth in this Agreement, which include claims which may be unknown to you at
present, you acknowledge that you have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her
favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” You hereby expressly waive and relinquish all rights and benefits under that section and any law or
legal principle of similar effect in any jurisdiction with respect to the releases granted herein, including but not limited to the release of unknown and unsuspected claims granted in this Agreement. 

13. Representations. You hereby represent that you have been paid all compensation owed for all time worked, you have received all the
leave and leave benefits and protections for which you are eligible pursuant to FMLA, CFRA, or any applicable laws or Company policies, and you have not suffered any work-related injury or illness for which you have not already filed a workers’
compensation claim. 
 14. Dispute Resolution. To ensure rapid and economical resolution of any disputes which may arise under
this Agreement, you and the Company agree that any and all claims, disputes or controversies of any nature whatsoever arising from or regarding the interpretation, performance, negotiation, execution, enforcement or breach of this Agreement, your
employment, or the termination of your employment, including but not limited to any statutory claims, shall be resolved, to the fullest extent permitted by law, by confidential, final and binding arbitration in Santa Clara County, California
conducted before a single arbitrator with JAMS, Inc. (“JAMS”) or its successor, in accordance with JAMS’ then-applicable arbitration rules. The parties acknowledge that by agreeing to this arbitration procedure, they waive the right
to resolve any such dispute through a trial by jury, judge or administrative proceeding. You will have the right to be represented by legal counsel at any arbitration proceeding. The arbitrator shall: (a) have the authority to compel adequate
discovery for the resolution of the dispute and to award such relief as would otherwise be available under applicable law in a court proceeding; and (b) issue a written statement signed by the arbitrator regarding the disposition of each claim
and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based. Nothing in this Agreement shall prevent either you or the Company from obtaining
injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction.

 15. Miscellaneous. This Agreement constitutes the complete, final and exclusive embodiment
of the entire agreement between you and the Company with regard to its subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other
such promises, warranties or representations. This Agreement may not be modified or amended except in a written agreement signed by both you and a duly authorized officer of the Company. This Agreement will bind the heirs, personal representatives,
successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, and their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part,
this determination will not affect any other provision of this Agreement and the provision in question shall be deemed modified so as to be rendered enforceable in a manner consistent with the intent of the parties, insofar as possible under
applicable law. Any ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Agreement, or rights hereunder, shall be in writing and shall not be deemed to be a waiver of any successive
breach or rights hereunder. This Agreement shall be deemed to have been entered into, and shall be construed and enforced, in accordance with the laws of the State of California without regard to conflicts of law principles. This Agreement may be
executed in counterparts, each of which shall be deemed to be part of one original, and facsimile signatures and signatures transmitted by PDF shall be equivalent to original signatures. 

If this Agreement is acceptable to you, please sign below and return the fully signed Agreement to me within twenty-one (21) days of your receipt of
this Agreement. If you do not sign and return it to the Company within the aforementioned timeframe, the Company’s offer to enter into this Agreement will expire. 

Let me know if you have any questions. We wish you the best in your future endeavors. 

Sincerely, 
 Openwave Systems Inc. 

 

			
	By:	 	 /s/ Ken D. Denman

		 	Ken Denman
		 	CEO

 Understood and Agreed: 

 

	
	 /s/ Karen J. Willem

	 Karen Willem

Date: March 31, 2010Amendment No. 3 to Loan and Security Agreement

 Exhibit 10.5 

AMENDMENT NO. 3 

TO 
 LOAN
AND SECURITY AGREEMENT 
 THIS AMENDMENT NO. 3 TO
LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of this 14th day of April, 2010, by and between OPENWAVE
SYSTEMS INC., a Delaware corporation (“Borrower”), and SILICON VALLEY BANK (“Bank”). Capitalized
terms used herein without definition shall have the same meanings given them in the Loan Agreement (defined below). 

RECITALS 

A. Borrower and Bank have entered into that certain Loan and Security Agreement dated as of January 23, 2009 (as amended to
date and as may be further amended, restated, supplement or otherwise modified from time to time, the “Loan Agreement”), pursuant to which the Bank has agreed to extend and make available to Borrower certain advances of
money. 
 B. Borrower desires that Bank amend the Loan Agreement upon the terms and conditions more fully set forth
herein. 
 C. Subject to the representations and warranties of Borrower, and upon the terms and conditions set forth in
this Amendment, Bank is willing to amend the Loan Agreement. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound, the parties hereto agree as follows:

 1. Amendments to Loan Agreement. 

1.1 Section 2.5(a) (Fees). Section 2.5(a) of the Loan Agreement is hereby amended and restated in its entirety as
follows: 
 “(a) Commitment Fee. A fully earned, non-refundable commitment fee of $125,000 on the second anniversary
of the Effective Date.” 
 1.2 Sections 6.2(c) and (d) (Financial Statements, Reports, Certificates).
Sections 6.2(c) and (d) of the Loan Agreement are hereby amended and restated in their entirety as follows: 
 “(c)
Within thirty (30) days after the last day of each month, deliver to Bank a cash balance report, including account statements detailing cash management types of investments held and maturity dates, together with a duly completed Compliance
Certificate signed by a Responsible Officer setting forth calculations showing compliance with the financial covenants set forth in this Agreement; provided, however, for reporting months 3, 6, 9 and 12 of each fiscal year, the foregoing Compliance
Certificate shall be delivered within forty-five (45) days after the last day of such month. 
 (d) Allow Bank to
audit Borrower’s Collateral at Borrower’s reasonable expense. Such audits shall be conducted once every twelve (12) months if the aggregate amount of outstanding Advances exceeds $30,000,000 for at least 30 consecutive days, or more
frequently, at Bank’s discretion.” 

 1.3 Section 6.7(b) (Financial Covenants). Section 6.7(b) of the Loan
Agreement is hereby amended and restated in its entirety as follows: 
 “(b) Minimum EBITDA. Maintain on a trailing
four quarter basis, as measured as of the last day of each fiscal quarter set forth below, EBITDA equal to or greater than the amount set forth opposite thereto: 
  

				
	 Fiscal Quarter Ended
	  	Minimum EBITDA
	 March 31, 2010
	  	$	1,000,000
	 June 30, 2010
	  	$	1,250,000
	 September 30, 2010
	  	$	1,500,000
	 December 31, 2010
	  	$	2,500,000
	 March 31, 2011
	  	$	2,500,000
	 June 30, 2011
	  	$	2,500,000
	 September 30, 2011
	  	$	2,500,000
	 December 31, 2011
	  	$	2,500,000

 ”

 1.4 Section 13 (Definitions). The definitions of the following terms in Section 13 of the Loan
Agreement are hereby amended and restated in their entirety as follows: 
 ““Borrowing Base” is
$30,000,000 plus 75% of Eligible Accounts, as determined by Bank from Borrower’s most recent Borrowing Base Certificate; provided, however, Bank may decrease the foregoing percentage in its good faith business judgment based on events,
conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral.” 

““Revolving Line Maturity Date” is January 23, 2012.” 

Subsection (a) of the definition of “Permitted Distributions” in Section 13 of the Loan Agreement is hereby amended
and restated in its entirety as follows: 
 “(a) purchases of capital stock and/or options from former or existing
employees, consultants and directors pursuant to repurchase agreements or other similar agreements not to exceed $5,000,000 in the aggregate, provided that at the time of such purchase no Default or Event of Default has occurred and is
continuing;” 
 Subsection (m) of the definition of “Permitted Investments” in Section 13 of the Loan
Agreement is hereby amended and restated in its entirety as follows: 
 “(m) other Investments, if, on the date of
incurring any Investments pursuant to this clause (m), the outstanding aggregate amount of all Investments incurred pursuant to this clause (m) does not exceed $1,000,000.” 

1.5 Exhibit C (Compliance Certificate). The form of Compliance Certificate (Exhibit C to the Loan Agreement) is amended and
restated in its entirety and attached hereto as Exhibit C. 
 2. BORROWER’S
REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants that: 

(a) immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents
are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Event of
Default has occurred and is continuing; 

 (b) Borrower has the corporate power and authority to execute and deliver this
Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 (c) the certificate
of incorporation and by-laws of Borrower (collectively, “Organizational Documents”) delivered to Bank on or prior to the date hereof are true, accurate and complete and have not been amended, supplemented or restated and are
and continue to be in full force and effect as of the date hereof, and Borrower shall promptly deliver to Bank any amendments, supplements, restatements or other modifications to such Organizational Documents; 

(d) the execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action on the part of Borrower; 

(e) this Amendment has been duly executed and delivered by the Borrower and is the binding obligation of Borrower, enforceable
against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting
creditors’ rights; and 
 (f) as of the date hereof, Borrower has no defenses against the obligations to pay any
amounts under the Obligations. Borrower acknowledges that Bank has acted in good faith and has conducted in a commercially reasonable manner its relationships with Borrower in connection with this Amendment and in connection with the Loan Documents.

 Borrower understands and acknowledges that Bank is entering into this Amendment in reliance upon, and in partial consideration for, the above
representations and warranties, and agrees that such reliance is reasonable and appropriate. 
 3.
LIMITATION. The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a waiver, consent, amendment or other modification of any other term or condition
of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which Bank may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement
referred to therein; or (b) to be a consent to any future amendment or modification or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof. Except
as expressly amended hereby, the Loan Agreement shall continue in full force and effect. 
 4.
EFFECTIVENESS. This Amendment shall be deemed effective March 31, 2010 upon the satisfaction of all the following conditions precedent: 

4.1 Amendment. Borrower and Bank shall have duly executed and delivered this Amendment to Bank. 

 4.2 Payment of Bank Expenses. Borrower shall have paid all Bank Expenses (including
all reasonable attorneys’ fees and reasonable expenses) incurred through the date of this Amendment. 
 5.
COUNTERPARTS. This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a
single instrument. All counterparts shall be deemed an original of this Amendment. 
 6.
INTEGRATION. This Amendment and any documents executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior
agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing
statements or other agreements or instruments filed by Bank with respect to Borrower shall remain in full force and effect. 

7. GOVERNING LAW; VENUE. THIS AMENDMENT
SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California.

 [Signature page follows] 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the
date first written above. 
  

					
	 BORROWER:
	 	 OPENWAVE SYSTEMS INC.,

a Delaware corporation

			
		 	By	 	 /s/ Anne Brennan

		 	Name:	 	Anne Brennan
		 	Title:	 	CFO
		
	 BANK:
	 	SILICON VALLEY BANK
			
		 	By:	 	 /s/ Tom Smith

		 	Name:	 	Tom Smith
		 	Title:	 	Managing Director

 EXHIBIT C - COMPLIANCE CERTIFICATE 

 

							
	TO:	  	SILICON VALLEY BANK	  	Date:	  	  

				
	FROM:	  	OPENWAVE SYSTEMS INC.	  		  	

 The undersigned authorized officer of Openwave Systems Inc. (“Borrower”) certifies that under the terms
and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (1) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations
and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, 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; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date,
(4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as
otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has
not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except
as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance
is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 

Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenant
	  	 Required
	  	 Complies

	Cash balance report, including account statements detailing cash management types of investments held and maturity dates + Compliance Certificate	  	Monthly within 30 days	  	Yes    No
			
	10-Q (with quarterly financials), 10-K (with annual financials) + Compliance Certificate	  	Within 5 days after filing with SEC (10-K in no event later than 90 days after fiscal year end and 10-Q in no event later than 50 days after fiscal quarter end (except for
Borrower’s fourth fiscal quarter for which no 10-Q shall be due))	  	Yes    No
			
	 Borrowing Base Certificate A/R & A/P Agings &

Deferred Revenue
	  	 If there are any outstanding Obligations,

monthly within 20 days
	  	Yes No

  

								
	 Financial Covenant
	  	Required	  	Actual	  	Complies
	 Maintain on a Monthly Basis:
	  	At least	  			  	
	 Liquidity Coverage Ratio
	  	2.0:1.0	  	 	        :1.0	  	Yes    No
				
	 Maintain on a Quarterly Basis:
	  		  			  	
	 Trailing four quarter minimum EBITDA
	  	See below	  	$	            	  	Yes    No

  

				
	 Fiscal Quarter Ended
	  	Minimum EBITDA
	 March 31, 2010
	  	$	1,000,000
	 June 30, 2010
	  	$	1,250,000
	 September 30, 2010
	  	$	1,500,000
	 December 31, 2010
	  	$	2,500,000
	 March 31, 2011
	  	$	2,500,000
	 June 30, 2011
	  	$	2,500,000
	 September 30, 2011
	  	$	2,500,000
	 December 31, 2011
	  	$	2,500,000

 Schedule 1 

to Compliance Certificate 

Dated:
                             

Financial Covenants of Borrower 

In the event of a conflict between this Schedule and the Agreement, the terms of the Agreement shall govern. 

I. Liquidity Coverage Ratio (Section 6.7 (a)) 
  

			
	Required:	  	A minimum ratio, measured as of the end of each calendar month, of (i) unrestricted cash, Cash Equivalents and short and long-term investments (with the exception of auction rate
securities), plus 10% of Eligible Accounts to (ii) aggregate Obligations, of not less than 2.00:1.00.

 Actual: 

 

					
	A.	  	Unrestricted cash and Cash Equivalents and short and long-term investments (with the exception of auction rate securities)	  	$            
			
	B.	  	10% of Eligible Accounts	  	$            
			
	C.	  	Liquidity (line A plus line B)	  	$            
			
	D.	  	Aggregate value of Obligations to Bank	  	$            
			
	E.	  	Liquidity Coverage (line C divided by line D)	  	$            

Is line C equal to or greater than 2.00:1.00? 
  

			
	              Yes, in compliance
	  	             No, not in compliance

II. Minimum EBITDA (Section 6.7(b)) 
  

			
	Required:	  	Maintain on a trailing four quarter basis, as measured as of the last day of each fiscal quarter set forth below, EBITDA equal to or greater than the amount set forth opposite
thereto:

  

				
	 Fiscal Quarter Ended
	  	Minimum EBITDA
	 March 31, 2010
	  	$	1,000,000
	 June 30, 2010
	  	$	1,250,000
	 September 30, 2010
	  	$	1,500,000
	 December 31, 2010
	  	$	2,500,000
	 March 31, 2011
	  	$	2,500,000
	 June 30, 2011
	  	$	2,500,000
	 September 30, 2011
	  	$	2,500,000
	 December 31, 2011
	  	$	2,500,000

 Actual: 
  

					
	A.	  	Net Income	  	$            
			
	B.	  	Interest Expense	  	$            
			
	C.	  	Consolidated Income taxes	  	$            
			
	D.	  	To the extent included in the determination of Net Income	  	
			
		  	 1.      Consolidated depreciation expense
	  	$            
			
		  	 2.      Consolidated amortization expense
	  	$            
			
		  	 3.      Other consolidated non-cash expenses, including non-cash stock compensation expense of
Borrower
	  	$            
			
		  	 4.      Non-cash charges related to impairment of minority investments or goodwill in accordance
with GAAP
	  	$            
			
		  	 5.      Write downs or write offs of investments or goodwill
	  	$            
			
		  	 6.      The sum of lines 1 through 4 minus line 5
	  	
			
	E.	  	EBITDA (line A plus line B plus line C plus line D.6)	  	$            

Is line E equal to or greater than the amount set forth opposite such time period above? 

 

			
	              Yes, in compliance
	  	             No, not in compliance

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]