Document:

Exhibit 10.168

	

	
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:

		-	<<BU_Name>>  Business Unit Revenue (“Revenue”) – 50%

		-	<<BU_Name>>  Business Unit Contribution Margin (“Margin”) – 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:

		-	<<BU_Name>>  Business Unit Revenue (“Revenue”) – 50%

		-	<<BU_Name>>  Business Unit Contribution Margin (“Margin”) – 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 of 4

 Exhibit 10.168

	

	
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

Page 2 of 4

 Exhibit 10.168

	

	
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%

	
 

	
 

	
 

	
 

	
<<BU_Name>> Business Unit Revenue

	
USD <<Threshold_ BU_Rev>>

	
USD <<Target_BU_Rev>>

	
USD <<Max_BU_Rev>>

	
Cash Payout

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

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

	
<<STI_Currency>>  <<STI_Target>>

	
 

	
 

	
 

	
 

	
<<BU_Name>> Business Unit Contribution Margin

	
USD <<Threshold_ BU_CM>>

	
USD <<Target_BU_CM>>

	
USD <<Max_BU_CM>>

	
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%

	
 

	
 

	
 

	
 

	
<<BU_Name>> Business Unit Revenue

	
USD <<Threshold_ BU_Rev>>

	
USD <<Target_BU_Rev>>

	
USD <<Max_BU_Rev>>

	
Cash Payout

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

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

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

	
 

	
 

	
 

	
 

	
<<BU_Name>> Business Unit Contribution Margin

	
USD <<Threshold_ BU_CM>>

	
USD <<Target_BU_CM>>

	
USD <<Max_BU_CM>>

	
Cash Payout

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

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

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

 

Compuware Corporation Confidential

Page 3 of 4

Exhibit 10.168

	

	
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

 

 

Page 4 of 4Exhibit 10.169

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

TO:             John Van Siclen (Employee Number: 123594)

THIS AGREEMENT (the “Agreement”) is made effective as of May 1, 2014 (the “Grant Date”), between Compuware Corporation, a Michigan corporation (the “Corporation”), and the individual whose name is set forth above, who is an employee of the Corporation (the “Recipient”).  Capitalized terms not otherwise defined herein shall have the same meanings as in the Compuware Corporation Amended and Restated 2007 Long Term Incentive Plan (the “Plan”), and the terms of the Plan are hereby incorporated by reference and made a part of this Agreement.

In consideration of the mutual covenants set forth in this Agreement and other good and valuable consideration, receipt of which is acknowledged, the parties agree as follows:

1.                  Grant of the Restricted Stock Units.  Subject to the terms and conditions of the Plan and this Agreement, the Corporation grants to the Recipient 225,000 Restricted Stock Units (hereinafter called the “Units”).  The Units shall vest and become non-forfeitable in accordance with Section 2 below.  In the event of any conflict between the Plan and this Agreement, the terms of the Plan shall control.  The grant of Units made under this Agreement is referred to as the “Units Award”.

2.                  Vesting and Forfeiture.

(a)    As long as the Recipient continues to be employed by the Corporation, the Units shall become vested and non-forfeitable as follows (each a “Vesting Date and, together, the “Vesting Dates”):

	 	
i)

	
40% of the Units Award on May 1, 2015, the first anniversary of the Grant Date;

	 	
ii)

	
30% of the Units Award on May 1, 2016, the second anniversary of the Grant Date; and

	 	
iii)

	
30% of the Units Award on May 1, 2017, the third anniversary of the Grant Date.

Notwithstanding the foregoing, the entire Units Award shall become immediately vested and non-forfeitable (1) in the event that the Recipient ceases to be employed due to Recipient’s death or Disability or (2) if, within 12 months following the effective date of a Change in Control, the Recipient incurs an “Involuntary Termination” or “Good Reason Termination”. For purposes of this provision, “Involuntary Termination” means Recipient’s termination by the Corporation for any reason other than “Cause”; “Cause” means (A) continued failure to make a good faith effort to perform Recipient’s duties, (B) any willful act or omission by Recipient that Recipient knew or should have known would injure the Corporation or any of its Subsidiaries, (C) fraud, (D) dishonesty, (E) commission of a felony, or violation of any law relating to Recipient’s employment, (F) failure to devote substantially full time to Recipient’s employment duties (except because of illness or Disability), (G)  insubordination, (H) an act or omission that is contrary to the direction of Recipient’s supervisor, if such direction relates to Recipient’s duties to the Corporation that are reasonably performable, or (I) violation of the Corporation’s Code of Conduct; and “Good Reason Termination” means constructive termination of Recipient’s employment if following a Change in Control (i) there is a reduction in Recipient’s duties and responsibilities as in effect immediately prior to the Change in Control without Recipient’s express written consent; or (ii) there is a reduction in Recipient’s base salary as in effect immediately prior to the Change in Control without Recipient’s express written consent.

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(b)    If Recipient’s employment terminates other than under the circumstances described in Section 2(a)(1) or 2(a)(2) above, Recipient’s right to receive shares of Common Stock subject to Units that are not yet vested automatically shall terminate and be forfeited by Recipient unless the Committee, in the exercise of its authority under the Plan, modifies this Section 2 in connection with such termination to provide otherwise.

3.                  Settlement.  No shares of Common Stock will be issued before the Units vest in accordance with Section 2 above. As soon as practicable, but no later than thirty (30) days, after the date on which the Units vest, the Corporation will issue to Recipient or Recipient’s legal guardian or representative (if applicable) one share of Common Stock for each vested Unit.  The issuance of shares of Common Stock may be in certificated form or in book entry form, in the Corporation’s sole discretion, in either case without restrictive legend or notation (except to the extent necessary or appropriate under applicable securities laws).  The Units shall not be settled in cash.

4.                  Dividend Equivalents; Rights as a Shareholder.

(a)    Each Unit awarded under this Agreement shall have a Dividend Equivalent (in accordance with Section 4.6 of the Plan) associated with it with respect to cash dividends on Common Stock that have a record date after the Grant Date and prior to the date on which the Units are settled for shares of Common Stock.  Such Dividend Equivalents, if any, shall be paid by crediting the Recipient with additional whole Units as of the date of payment of such cash dividends on Common Stock.  The number of additional Units (rounded down to the nearest whole number) to be so credited shall be determined by dividing (i) the amount of cash dividends that would have been paid on the dividend payment date with respect to the number of shares of Common Stock underlying the unsettled Units previously credited to the Recipient as of the dividend record date (including those Units received as part of the Units Award and as a result of prior cash dividends) if such shares had been outstanding on the dividend record date, by (ii) the Fair Market Value per share of Common Stock on the dividend payment date.  Such Units shall be subject to the same terms and conditions and shall be settled in the same manner and at the same time as provided in Section 3 of this Agreement.

(b)    Except as set forth in Section 4(a) above, Recipient shall have no voting or other rights as a shareholder of the Corporation until certificates are issued or a book entry representing such shares has been made and such shares have been deposited with the appropriate registered book entry custodian.

5.                  Employee’s Employment by the Company.  Nothing contained in this Agreement or the Plan (i) obligates the Corporation to employ Recipient in any capacity whatsoever or (ii) prohibits or restricts the Corporation from terminating the employment, if any, of Recipient at any time or for any reason whatsoever, with or without cause, and Recipient hereby acknowledges and agrees that neither the Corporation nor any other person or entity has made any representations or promises whatsoever to Recipient concerning Recipient’s employment or continued employment by the Corporation or any Subsidiary.

6.                  Change in Capitalization.  In the event of a dividend or distribution paid in shares of Common Stock or any other adjustment made upon a change in the capital structure of the Corporation as described in Article IX of the Plan that occurs prior to settlement, appropriate adjustment shall be made to the Units so that they represent the right to receive upon settlement any and all new, substituted or additional securities or other property (other than cash dividends) to which Recipient would be entitled if Recipient had owned, at the time of such change in capital structure, the shares of Common Stock issuable upon settlement of the Units.

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7.                  Withholding.  The Corporation shall have the right to withhold from Recipient’s compensation or to require Recipient to remit sufficient funds to satisfy applicable withholding for income and employment taxes upon the vesting of Units pursuant to Section 2.  Subject to limitations in the Plan, Recipient may, in order to fulfill the withholding obligation, tender previously-acquired shares of Common Stock having an aggregate Fair Market Value equal to the amount owed.  The Corporation shall be authorized to take such action as may be necessary, in the opinion of the Corporation’s counsel (including, without limitation, withholding Common Stock otherwise deliverable to Recipient and/or withholding amounts from any compensation or other amount owing from the Corporation to Recipient), to satisfy the obligations for payment of any such taxes.  The Recipient shall have full responsibility, and the Corporation shall have no responsibility (except as may be imposed by applicable law), for satisfying any liability for any federal, state or local income or other taxes required by law to be paid with respect to such Units, including upon the receipt, vesting or settlement of the Units.  The Recipient should seek his or her own tax counsel regarding the taxation of the Units.

8.                  Limitation on Obligations.  Except as provided in Section 6 above, the Corporation’s obligation with respect to the Units is limited solely to the delivery to Recipient of shares of Common Stock upon settlement, and in no way shall the Corporation become obligated to pay cash or other assets in respect of such obligation.  In addition, the Corporation shall not be liable to Recipient for damages relating to any delay in issuing the shares or share certificates or any loss of the certificates.

9.                  Transfer of Units Award.  Neither this Units Award nor Recipient’s rights under this Agreement are assignable or transferable except by will or the laws of descent and distribution, or with the Committee’s consent in accordance with Section 10.3 of the Plan.

10.                Securities Laws.  Upon the vesting or settlement of any Units, the Corporation may require Recipient to make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement.  The granting of the Units shall be subject to all applicable laws, rules and regulations and to such approvals of any governmental agencies as may be required.

11.                 Notices.  Any notice or election to be given to the Corporation shall be addressed to the Corporation in care of its Secretary, and any notice to Recipient shall be addressed to him or her at the address stated in the Corporation’s records.

12.                 Governing Law.  The laws of the State of Michigan shall govern the interpretation, validity and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Grant Date.

 

	
 

	
RECIPIENT

	 	
	
 

	
/s/ John Van Siclen

	
 

	
 

	
John Van Siclen

	
 

	
 

	
 

 

	
 

	
 

	
COMPUWARE CORPORATION

	
 

	 		
	
 

	
By: /s/ Robert C. Paul

	
 

	
 

	
Robert C. Paul

	
 

	
 

	
Its:  Chief Executive Officer

	
 

 

 

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