Document:

ex10-5.htm

    EXHIBIT
      10.5

     

     

    EXECUTION
      COPY

     

    

     

    AMENDED
      AND RESTATED PLEDGE
      AGREEMENT

     

    This
      Amended and Restated Pledge Agreement (this “Pledge Agreement”) is executed as
      of January 31, 2008 between Enterprise Informatics Inc., f/k/a Altris Software,
      Inc., a California corporation (“Pledgor”) and ERP2 Holdings, LLC, a Delaware
      limited liability company (the “Secured Party”).

     

    WHEREAS,
      on March 15, 2002, Pledgor executed and delivered a Secured Promissory Note
      to
      Spescom Ltd., a United Kingdom corporation (“Parent”) in the original principal
      amount of $400,000 (the “March Note”);

     

    WHEREAS,
      concurrently therewith, in order to provide security for Pledgor’s payment
      obligations under the March Note and subsequent notes executed by the Pledgor
      in
      favor of the Parent and its successors and assigns, Pledgor entered into a
      Pledge Agreement (the “Original Pledge Agreement”) with Parent, pursuant to
      which Pledgor pledged all of its interest in Enterprise Informatics
      International Ltd., f/k/a Altris International Limited, a United Kingdom
      corporation and Enterprise Informatics Ltd., f/k/a Spescom Software Limited,
      a
      United Kingdom Corporation (the “Shares”) to Parent;

     

    WHEREAS,
      concurrently therewith, in order to provide security for Pledgor’s payment
      obligations under the March Note and subsequent notes executed by the Pledgor
      in
      favor of the Parent and its successors and assigns, Pledgor granted a security
      interest in all its assets pursuant to a Security Agreement (the “Security
      Agreement”);

     

    WHEREAS,
      on April 19, 2002, Pledgor executed and delivered a Secured Promissory Note
      to
      Parent, in the original principal amount of $500,000 (the “April Note” and,
      together with the March Note, the “Old Notes”);

     

    WHEREAS,
      Parent assigned the Old Notes, the Security Agreement and the Original Pledge
      Agreement to the Secured Party pursuant to the Securities Purchase Agreement,
      dated as of September 30, 2007, by and between the Secured Party and Parent
      (the
“Securities Purchase Agreement”);

     

    WHEREAS,
      concurrently herewith, Pledgor executed and delivered a Secured Promissory
      Note
      to the Secured Party, in the principal amount of up to $1,500,000 (the “New
      Note” and, together with the Old Notes, collectively, the “Note”); and

     

    WHEREAS,
      Pledgor and the Secured Party desire to amend the Original Pledge Agreement
      to
      reflect the assignment of the Old Notes to the Secured Party and the execution
      of the New Note.

     

    
      
        
          

           

        

         

      

      
        1

        
          

        

      

      
         

      

    

    NOW
      THEREFORE, in consideration of the agreements and obligations set forth herein,
      and for other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereby amend and restate the Original
      Pledge Agreement to read in its entirety as follows:

     

    1.           
Grant
      of Security
      Interest.  To secure Pledgor’s obligations to Secured Party
      under the Note (“Obligations”), Pledgor pledges, assigns and grants to Secured
      Party a security interest in (a) the Shares; and (b) all stock or cash
      dividends, substitutions, and shares issued pursuant to any merger or
      reorganization, or any other proceeds of such Shares as defined in Section
      9-102(a)(64) of the New York Uniform Commercial Code.

     

    2.           
Delivery
      of
      Shares.  Secured Party acknowledges that it has possession of
      the Shares and agrees that it shall, on or before February 30, 2008, deliver
      the
      Shares to Pledgor for purposes of facilitating Pledgor’s performance of its
      obligations under the following sentence.  Pledgor shall, on or before
      15 days following its receipt of the Shares from the Secured Party pursuant
      to
      the preceding sentence, validly endorse the Shares in blank and deliver the
      Shares to the Secured Party, and agrees that the Shares shall concurrently
      be
      held in pledge by Secured Party hereunder to secure the Obligations.

     

    3.           
Terms
      of
      Pledge.  The Shares shall be held by Secured Party in pledge
      subject to the terms and conditions of this Pledge Agreement. As long as no
      default exists as described in Paragraph 5 below, Pledgor shall have the right
      at all times to vote such Shares on any and all matters.

     

    4.           
Negative
      Covenants.  Until all obligations secured by this Pledge
      Agreement shall have been fully and finally performed, Pledgor shall not without
      the prior written consent of Secured Party: (a) create or suffer to exist any
      further security interest the Shares; or (b) sell or otherwise dispose of the
      Shares. Secured Party shall retain the Shares to secure Pledgor’s obligations to
      Secured Party under this Pledge Agreement.

     

    5.           
Events
      of
      Default.  There shall be a default under this Pledge Agreement
      if Pledgor causes or suffers an Event of Default under the Note or the Security
      Agreement.

     

    6.           
Rights
      of Secured Party Upon
      Default.  In the event of an uncured default of an Obligation,
      Secured Party shall have the rights of a secured party under the New York
      Uniform Commercial Code except for the right to seek a deficiency following
      sale
      or other disposition of the Shares, it being understood that Secured Party’s
      sole and only recourse shall be to the Shares.

     

    7.           
Duties
      of Secured
      Party.

     

    7.1.           
Unless
      a
      default has occurred which remains uncured, the Secured Party’s sole duty shall
      be to hold the Shares until such time as the Obligation has been paid in full.
      The Secured Party is directed to deliver the Shares to Pledgor at such time
      as
      the Obligation has been paid in full or otherwise satisfied or released. At
      that
      time, Pledgeholder shall return the Shares and the certificate representing
      the
      Shares to Pledgor, and all Shares shall be deemed released from this
      pledge.

     

    
      
        
          

           

        

         

      

      
        2

        
          

        

      

      
         

      

    

    7.2.           
In
      performing
      obligations hereunder including any performance hereunder in the event of a
      dispute, the Secured Party shall be reimbursed for any costs and expenses of
      performance hereunder.

     

    8.           
Representations
      and
      Warranties of Secured Party.  Secured Party represents and
      warrants to Pledgor that except for the security interest created by this Pledge
      Agreement, no person or entity has any right, title, interest, or claim in
      or to
      the Shares or any part of the Shares.

     

    9.           
Governing
      Law.  This Pledge Agreement is governed by and construed in
      accordance with the laws of the State of New York, irrespective of New York’s
      choice-of-law principles. For purposes of venue and jurisdiction, this Pledge
      Agreement shall be deemed made and to be performed in the City of New York,
      New
      York.

     

    10.           
Further
      Assurances.  Each party to this Pledge Agreement shall execute
      and deliver all instruments and documents id take all actions as may be
      reasonably required or appropriate to carry out the purposes of this Pledge
      Agreement.

     

    11.           
Counterparts
      and
      Exhibits.  This Pledge Agreement may be executed in
      counterparts, each of which is deemed an original and all of which together
      constitute one document. All exhibits attached to and referenced in this Pledge
      Agreement are incorporated into this Pledge Agreement.

     

    12.           
Modification.  This
      Pledge Agreement may be modified only by a contract in writing executed by
      the
      party to this Pledge Agreement against whom enforcement of the modification
      is
      sought.

     

    13.           
Headings.  The
      paragraph headings in this Pledge Agreement: (a) are included only for
      convenience, (b) do not in any manner modify or limit any of the provisions
      of
      this Pledge Agreement, and (c) may not be used in the interpretation of this
      Pledge Agreement.

     

    14.           
Prior
      Understandings.  This Pledge Agreement and all documents
      specifically referred to and executed in connection with this Pledge Agreement:
      (a) contain the entire and final agreement of the parties to this Pledge
      Agreement with respect to the subject matter of this Pledge Agreement, and
      (b)
      supersede all negotiations, stipulations, understandings, agreements,
      representations ad warranties, if any, with respect to such subject matter,
      which precede or accompany the execution of this Pledge Agreement.

     

    15.           
Interpretation.  Wherever
      the context of this Pledge Agreement requires, all words used in the singular
      shall be construed to have been used in the plural, and vice versa, and the
      use
      of any gender specific pronoun shall include any other appropriate ender. The
      conjunctive ‘or” shall mean “and/or” unless otherwise required by the context in
      which the conjunctive “or” issued. Pledgor and Secured Party have each had the
      opportunity to be represented by legal counsel and hereby waive any benefit
      under any rule of law or legal decision that would require interpretation of
      any
      ambiguities in this Pledge Agreement against the party drafting.  The
      provisions of this Pledge Agreement shall be interpreted in a reasonable manner
      to effect the purposes of the parties and this Pledge Agreement.

     

    
      
        
           

           

        

         

      

      
        3

        
          

        

      

      
         

      

    

    16.           
Representation.  This
      Pledge Agreement has been prepared by Stroock & Stroock & Lavan LLP
      (“Stroock”), as counsel for Secured Party. By this provision, Stroock affirms
      that it represents no other party in this transaction and suggests the
      advisability of all other parties obtaining the advice and representation of
      independent counsel.

     

    17.           
Partial
      Invalidity.  Each provision of this Pledge Agreement is valid
      and enforceable to the fullest extent permitted by law.  If any
      provision of this Pledge Agreement (or the application of such provision to
      any
      person or circumstance) is or becomes invalid or unenforceable, the remainder
      of
      this Pledge Agreement, and the application of such provision to persons or
      circumstances other than those as to which it is held invalid or unenforceable,
      are not affected by such invalidity or unenforceability.

     

    18.           
Notices.  Each
      notice and other communication required or permitted to be given under this
      Pledge Agreement “Notice”) must be in writing. Notice is duly given to another
      party upon: (a) hand delivery to the other party, (b) receipt by the other
      party
      when sent by facsimile or electronic mail to the facsimile number or email
      address for such party set forth below, (c) three business days after the Notice
      has been deposited with the United States postal service as first class
      certified mail, return receipt requested, postage prepaid, and addressed to
      the
      party as set forth below, or (d) the next business day after the Notice has
      been
      deposited with a reputable overnight delivery service, postage prepaid,
      addressed to the party as set forth below with next-business-day delivery
      guaranteed, provided that the sending party receives a confirmation of delivery
      from the delivery-service-provider.

     

    

    
      	
              To
                Pledgor:

            	
              Enterprise
                Informatics Inc.

              10052
                Mesa Ridge Court, Suite 100

              San
                Diego, CA 92121

              Attention:  John
                Low

              Fax:  (858)
                625-3010

              Email:  jlow@enterpriseinformatics.com

            
	 	 
	
              Copy
                to:

            	
              Gibson,
                Dunn & Crutcher LLP

              1881
                Page Mill Road

              Palo
                Alto, CA 94304

              Attention:
                Russell C. Hansen

              Fax:  (650)
                849-5333

              Email:
                rhansen@gibsondunn.com

            
	 	 
	
              To
                Secured Party:

            	
              ERP2
                Holdings, LLC

              c/o
                Richard Shorten

              694
                Weed Street

              New
                Canaan, CT 06840

              Attention:  Board
                of Managers

              Fax:  (702)
                995-4535

              Email:  rshorten@silverminecapital.com

            
	 	 
	
              Copy
                to:

            	
              Stroock
                & Stroock & Lavan LLP

              180
                Maiden Lane

              New
                York, NY 10038

              Attention:  Brett
                Lawrence

              Fax:  (212)
                806-6006

              Email:  blawrence@stroock.com

            
	 	 

    

    Each
      party shall make a reasonable, good faith effort to ensure that it will accept
      or receive Notices to it that are given in accordance with this paragraph.
      A
      party may change its address for purposes of this paragraph by giving the other
      party written notice of a new address in the manner set forth above.

     

    19.           
Waiver.  Any
      waiver of a default or provision under this Pledge Agreement must be in writing.
      No such waiver constitutes a waiver of any other default or provision concerning
      the same or any other provision of this Pledge Agreement. No delay or omission
      by a party in the exercise of any of its rights or remedies constitutes a waiver
      of (or otherwise impairs) such right or remedy. A consent to or approval of
      an
      act does not waive or render unnecessary the consent to or approval of any
      other
      or subsequent act.

     

    20.           
Fees
      and
      Expenses.  The Debtor shall pay all reasonable fees and
      expenses of the Secured Party in connection with the negotiation, execution
      and
      delivery of this Pledge Agreement.

     

    [Signature
      Page Follows]

     

    

     

    

     

    

     

    

     

    
      
        
           

           

        

         

      

      
        4

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, Pledgor and the Secured Party have each caused this Agreement
      to be executed by its duly authorized representative as of the day and year
      first written above.

     

    
      	
              PLEDGOR:

            	
              ENTERPRISE
                INFORMATICS INC.

            
	 	 
	 	 
	 	
              By:

            	
              
                  /s/  John
                  W. Low

              

            
	 	 	
              Name:  John
                W. Low

            
	 	 	
              Title:  Chief
                Financial Officer

            
	 
	 
	
              SECURED
                PARTY:

            	
              ERP2
                HOLDINGS, LLC

            
	 	 
	 	 
	 	
              By:

            	
              
                  /s/
                  Kevin Wyman

              

            
	 	 	
              Name:
                Kevin Wyman

            
	 	 	
              Title:   Majority
                Manager

            
	 
	 
	 

    

    

    
      
        
          

           

        

         

      

      
        5exv10wq

 

EXHIBIT
10.Q

FY08 Executive Incentive Plan

	1.	 	Purpose: The FY08 Executive Incentive Plan (the“FY08 Plan”) is designed to reward key
management employees for achieving certain financial and business objectives.
	 
	2.	 	Plan Period: The FY08 Plan covers the period from September 29, 2007 through September 26,
2008.
	 
	3.	 	Eligibility: This program applies to the Chief Executive Officer and his direct reporting
senior executives. Other key employees may be added based upon the recommendation of the
Chief Executive Officer and subsequent approval of the Compensation Committee. Those
employees not covered by this plan may be eligible for other programs established by Skyworks.
	 
	4.	 	Incentive Targets: Participants are eligible to earn a percentage of their base salary for
attaining certain performance objectives. Nominal, target and stretch incentive awards have
been established as follows (shown as a percentage of the participant’s base salary):

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Incentive At	 	Incentive At	 	Incentive
	Name	 	Nominal	 	Target	 	At Stretch
	CEO
	 	 	30	%	 	 	100	%	 	 	200	%
	CFO, VP
Sales, Business Unit
General Managers, VP
Ops
	 	 	20	%	 	 	60	%	 	 	120	%
	Other VPs
	 	 	20	%	 	 	50	%	 	 	100	%
	Special Participants
	 	 	10	%	 	 	40	%	 	 	80	%

	5.	 	FY08 Metrics: The performance metrics for FY08 are as follows:

1st Half — Financial

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Metric	 	Nominal	 	Target	 	Stretch
	Revenue
	 	REDACTED	 	REDACTED	 	REDACTED
	Gross Margin
	 	REDACTED	 	REDACTED	 	REDACTED
	Operating Income ($)
	 	REDACTED	 	REDACTED	 	REDACTED
	Cash
	 	REDACTED	 	REDACTED	 	REDACTED

 

 

2nd Half — Financial1

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Metric	 	Nominal	 	Target	 	Stretch
	Revenue
	 	REDACTED	 	REDACTED	 	REDACTED
	Gross Margin
	 	REDACTED	 	REDACTED	 	REDACTED
	Operating Income ($)
	 	REDACTED	 	REDACTED	 	REDACTED
	Cash
	 	REDACTED	 	REDACTED	 	REDACTED

The quality metric for FY07 will focus on drivers of our Six Sigma initiative.

Performance periods are semi-annual. The individual metrics above are for normal operations
and any extraordinary events and/or charges will be brought to the Compensation Committee
for review and approval.

Metrics will be weighted based on corporate performance for FY08 as follows:

1st Half

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Sales	 	GMs	 	Ops	 	Other
	Revenue Growth
	 	 	30	%	 	30%   (BU)	 	 	20	%	 	 	20	%
	Gross Margin
	 	 	30	%	 	30%   (BU)	 	 	40	%	 	 	20	%
	Operating Income ($)
	 	 	20	%	 	 	20	%	 	 	20	%	 	 	40	%
	Cash
	 	 	10	%	 	 	10	%	 	 	10	%	 	 	10	%
	Quality
	 	 	10	%	 	 	10	%	 	 	10	%	 	 	10	%

2nd Half

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Sales	 	GMs	 	Ops	 	Other
	Revenue Growth
	 	 	40	%	 	40%   (BU)	 	 	30	%	 	 	30	%
	Gross Margin
	 	 	20	%	 	20%   (BU)	 	 	30	%	 	 	20	%
	Operating Income ($)
	 	 	20	%	 	 	20	%	 	 	20	%	 	 	30	%
	Cash
	 	 	10	%	 	 	10	%	 	 	10	%	 	 	10	%
	Quality
	 	 	10	%	 	 	10	%	 	 	10	%	 	 	10	%

 

			
	1	 	Preliminary. To be updated after second quarter

2 of 3 
FY08 EIP

 

	6.	 	How the Plan Works: Upon completion of the first six months of the Fiscal Year, the Chief
Executive Officer will provide the Compensation Committee with recommendations for incentive
award payments to the named participants of the plan. The Committee will review the
recommendations and approve the actual amount to be paid to each participant. The Committee
will rely upon the CEO for the appropriate distribution of the authorized incentive pool. The
same process will occur for the second six months of the Fiscal Year. All incentive award
payments, if earned, for a Fiscal Year will be paid by the following December 15th.

	7.	 	Administration: Actual performance between the Nominal and Target metrics will be paid on a
linear sliding scale beginning at the Nominal percentage and moving up to the Target
percentage. The same linear scale will apply for performance between Target and Stretch
metrics. In order to fund the incentive plans and insure the overall Company’s financial
performance, the following terms apply.

	 	•	 	No incentive award will be paid unless the Company meets its Nominal operating
income goal after accounting for any incentive award payments.
	 
	 	•	 	Payout for the first six month performance period will be capped at 80% of earnings
with 20% being held back until the end of the fiscal year based on sustained
performance.
	 
	 	•	 	Skyworks’ CEO, subject to approval by the Compensation Committee, retains discretion
to award below nominal or above Stretch.
	 
	 	•	 	Any payout shall be conditioned upon the Participant’s employment by the Company on
the date of payment; provided, however, that the Compensation Committee may make
exceptions to this requirement, in its sole discretion, including, without limitation,
in the case of a participant’s termination of employment, retirement, death or
disability.

	8.	 	Taxes: All awards are subject to federal, state, local and social security taxes. Payments
under this Plan will not affect the base salary, which is used as the basis for Skyworks’
benefits program.

	9.	 	Amendments: The Company reserves the right to amend or terminate the FY08 Plan at any time
in its sole discretion.

3 of 3 
FY08 EIP

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