Document:

Exhibit 10.2

 

September 23, 2005

 

 

Mr. Joseph L. Cowan

5212 Legends Drive

Braselton, GA  30517

 

Dear Joe,

 

By this letter (the
“Amendment”), Manugistics Group, Inc. 
(the “Company”) seeks to revise that certain Manugistics Group, Inc.
Employment Agreement, dated July 21, 2004, between the Company and you (the
“Employment Agreement”) to provide you an enhanced severance package if, within
one year following a Change in Control, (i) your employment is terminated by
the Company for reasons other than Cause or (ii) you resign your employment for
Good Reason.  While the provisions of
this Amendment will not affect the other terms and conditions of the Employment
Agreement besides your severance benefits, if you accept the terms of the
Amendment, it will provide you with severance compensation and benefits to
which you would not otherwise be entitled. 
The terms of the Amendment are set forth below, and any undefined terms
shall have the meaning ascribed to them in the Employment Agreement.  If you agree to accept the terms of the
Amendment, please sign, date this letter and return it to the Human Resources
Department.

 

The subsection titled
“Severance” in the section titled “Termination” of the Employment Agreement
shall be amended as follows: if, within one year following a Change in Control,
the Company terminates your employment without Cause, or you resign for Good
Reason, the Company will pay you severance equal to your current Salary in
accordance with the Company’s regular payroll practices, and benefits to the
extent you are eligible to receive such benefits under the terms of those plans
following termination of employment, for a two year period commencing on your
termination date (the “Severance Period”). 
You will not be eligible for any other severance payments under this or
any other employment agreement or other benefit plan or arrangement, provided,
however, that (i) any unvested portions of the Initial Grants and Initial
Options you have received will immediately vest upon the termination of your
employment in accordance with the second paragraph of the subsection titled
“Equity Award”, in the section titled “Compensation”, and all other options or
restricted stock that you hold will continue to vest or be exercisable in
accordance with their terms, the terms of the plan and the terms of the
Employment Agreement and (ii) the Company will pay any premiums for your
continued coverage under post-employment

 

 

health coverage for the
shorter of the Severance Period or the period for which you are eligible for
and do elect continuation coverage from the Company under COBRA.  You will not earn any commission compensation
or bonuses during this Severance Period. 
With respect to (i), above, it is the intention of the Company to not
change the acceleration of vesting of the Initial Grants and Initial Options
upon a termination of your employment following a Change in Control, but rather
to provide for the continued vesting of other options or restricted stock that
you hold on the date of your termination of employment, which is not currently
provided for in the Employment Agreement.

 

The Company will continue
to make all payments required under the Employment Agreement, as amended by the
Amendment, regardless of any alternative employment you obtain after your Company
employment ends, provided the alternative employment does not violate the
Termination Agreement discussed below.

 

To receive the benefits
described in the Employment Agreement and the Amendment, you will be required
to execute a Termination Agreement, which will include a non-compete and
non-solicitation agreement and a full release of claims.  In addition, you agree that the Amendment
shall be construed to avoid any adverse tax consequences to you under Internal
Revenue Code Section 409A and that the Company may amend this Amendment
from time to time as may be necessary to that end, which could include, for
example, delaying the commencement of payments until six months after your
termination.

 

Please signify your
acceptance of the Amendment by signing this letter.

 

 

	
  /s/ Joseph L.
  Cowan

  	
   

  	
  09/23/2005

  	
   

  
	
  Joseph L. Cowan

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Raghavan
  Rajaji

  	
   

  	
  09/23/2005

  	
   

  
	
  Manugistics
  Group, Inc.

  	
  Date

  

 

 

Exhibit B

Definitions

 

A Change in Control for
this purpose means the occurrence of any one or more of the following events:

 

(i) sale of
all or substantially all of the assets of Manugistics Group, Inc. (the “Company”)
to one or more individuals, entities, or groups acting together;

 

(ii) complete
or substantially complete dissolution or liquidation of the Company;

 

(iii) a
person, entity, or group acquires or attains ownership of more than 50% of the undiluted total voting power of the Company’s
then-outstanding securities eligible to vote to elect members of the Board of
Directors (the “Board”) (“Company Voting Securities”);

 

(iv) completion
of a merger, consolidation, or reorganization of the Company with or into any
other entity unless
the holders of the Company Voting Securities outstanding immediately before
such completion, together with any trustee or other fiduciary holding
securities under a Company benefit plan, retain control because they hold
securities that represent immediately after such merger or consolidation at least 50% of the combined voting power of the then outstanding voting
securities of either the Company or the other surviving entity or its ultimate
parent;

 

(v) the
individuals who constitute the Board immediately before a proxy contest cease
to constitute at least a majority of the Board (excluding any Board seat that
is vacant or otherwise unoccupied) immediately following the proxy contest; or

 

(vi) during
any two year period, the individuals who constitute the Board at the beginning
of the period (the “Incumbent
Directors”) cease for any reason to constitute at
least a majority of the Board (excluding any Board seat that is vacant or
otherwise unoccupied), provided that any individuals that a majority of
Incumbent Directors approve for service on the Board are treated as Incumbent
Directors.

 

The
Board or the Compensation Committee will have the same authority to determine
the existence of a Change in Control under this definition as it has under the
Amended and Restated 1998 Stock Option Plan (the “1998 Plan”).  In
addition, if the 1998 Plan would cause a grant of options or stock to terminate
or be converted under its terms and under the authority of the Board or the
Compensation Committee, the 1998 Plan will control.

 

 

Cause means [the individuals]:

 

(i) commit
a material breach of [their] obligations or agreements with respect to the Company;

 

(ii) commit
an act of fraud, material dishonesty, or gross negligence with respect to the
Company or otherwise act with willful disregard for the Company’s best
interests;

 

(iii) fail
or refuse to perform any duties delegated to [them] that are consistent with
the duties of similarly-situated executives or are otherwise required;

 

(iv) seize
a corporate opportunity for [themselves] instead of offering such opportunity
to the Company if it is within the scope of the Company’s or its subsidiaries’
or parent’s business; or

 

(v) are
convicted of or plead guilty or no contest to a felony (or to a felony charge
reduced to misdemeanor), or, with respect to [their] employment, to any
misdemeanor (other than a traffic violation) or, with respect to [their] employment,
knowingly violate any federal or state securities or tax laws.

 

Good Reason means:

 

(i) the
Company reduces [the individual’s] base salary without [the individual’s]
consent; or

 

(ii) the
Company assigns [the individual] duties materially inconsistent with, or
substantially diminishes, [the individual’s] status or responsibilities without
[the individual’s] consent.Exhibit 10.3

 

September     ,
2005

 

[name]

[address]

 

Dear [name],

 

By this letter (the “Amendment”), Manugistics Group, Inc.
(the “Company”) seeks to revise
your terms of employment by providing you an enhanced severance package if,
within one year following a Change in Control, (i) your employment is
terminated by the Company for reasons other than Cause or (ii) you resign
your employment for Good Reason.  While
the provisions of this Amendment will not affect the other terms and conditions
of your employment, including your at-will status, if you accept the terms of
the Amendment, it will provide you with compensation and benefits to which you
would not otherwise be entitled.  The
terms of the Amendment are set forth below. 
If you agree to accept those terms, please sign and date this letter and
return it to the Human Resources Department.

 

If, within one year
following a Change in Control, the Company terminates your employment without
Cause, or you resign for Good Reason, you will receive your base salary in
accordance with the Company’s regular payroll practices, and benefits to the
extent you are eligible to receive such benefits under the terms of those plans
following termination of employment, for a 12 month period commencing on your
termination date and you will not be eligible for any other cash severance
payments under this or any other employment agreement or other benefit plan or
arrangement.  Any period during which you
are receiving these payments and benefits is called your “Severance Period.”  You will not earn any commission compensation
or bonuses during this Severance Period. 
During your Severance Period, any option or restricted stock that you
hold will continue to vest or be exercisable in accordance with its terms, the
terms of the plan, and the Company’s practice.

 

For purposes of this
Amendment and any other offer letter or stock option agreement you have with
the Company, “Change in Control,” “Cause,” and “Good Reason” shall be defined
in Exhibit A.  For any other matters
described in your original or amended offer letter, the definitions contained
in those agreements shall govern.  In
addition, solely for purposes of any severance payment made pursuant to this
Amendment, the Company will continue to make all payments regardless of any
alternative employment you obtain after your Company employment ends, provided
the alternative employment does not violate the Termination Agreement discussed
below.  Nothing in this Agreement does or
is intended to impose any obligation on the Company to retain you in its employ
or to terminate your employment only for Cause.

 

To receive the severance
described herein, you will be required to execute a Termination Agreement at
the time of termination, which will include a non-compete and non-solicitation
agreement and a full release of claims. 
In addition, you agree that this Amendment shall be construed to avoid
any adverse tax consequences to you under Internal Revenue Code Section 409A

 

 

and that the Company may
amend this Amendment from time to time as may be necessary to that end, which
could include, for example, delaying the commencement of payments until six
months after your termination.

 

Please signify your
receipt by signing this letter.

 

 

	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Manugistics
  Group, Inc.

  	
  Date

  

 

 

Exhibit A

 

Definitions

 

A Change in Control for
this purpose means the occurrence of any one or more of the following events:

 

(i) sale of
all or substantially all of the assets of the Company to one or more
individuals, entities, or groups acting together;

 

(ii) complete
or substantially complete dissolution or liquidation of the Company;

 

(iii) a
person, entity, or group acquires or attains ownership of more than 50% of the undiluted total voting power of the Company’s
then-outstanding securities eligible to vote to elect members of the Board of
Directors (the “Board”) (“Company Voting
Securities”);

 

(iv) completion
of a merger, consolidation, or reorganization of the Company with or into any
other entity unless
the holders of the Company Voting Securities outstanding immediately before
such completion, together with any trustee or other fiduciary holding
securities under a Company benefit plan, retain control because they hold
securities that represent immediately after such merger or consolidation at least 50% of the combined voting power of the then outstanding voting
securities of either the Company or the other surviving entity or its ultimate
parent;

 

(v) the
individuals who constitute the Board immediately before a proxy contest cease
to constitute at least a majority of the Board (excluding any Board seat that
is vacant or otherwise unoccupied) immediately following the proxy contest; or

 

(vi) during
any two year period, the individuals who constitute the Board at the beginning
of the period (the “Incumbent
Directors”) cease for any reason to constitute at
least a majority of the Board (excluding any Board seat that is vacant or
otherwise unoccupied), provided that any individuals that a majority of
Incumbent Directors approve for service on the Board are treated as Incumbent
Directors.

 

The
Board or the Compensation Committee will have the same authority to determine
the existence of a Change in Control under this definition as it has under the
Amended and Restated 1998 Stock Option Plan (the “1998 Plan”).  In
addition, if the 1998 Plan would cause a grant of options or stock to terminate
or be converted under its terms and under the authority of the Board or the
Compensation Committee, the 1998 Plan will control.

 

 

Cause means you:

 

(i) commit
a material breach of your obligations or agreements with respect to the
Company;

 

(ii) commit
an act of fraud, material dishonesty, or gross negligence with respect to the
Company or otherwise act with willful disregard for the Company’s best
interests;

 

(iii) fail
or refuse to perform any duties delegated to you that are consistent with the
duties of similarly-situated executives or are otherwise required;

 

(iv) seize
a corporate opportunity for yourself instead of offering such opportunity to
the Company if it is within the scope of the Company’s or its subsidiaries’ or
parent’s business; or

 

(v) are
convicted of or plead guilty or no contest to a felony (or to a felony charge
reduced to misdemeanor), or, with respect to your employment, to any misdemeanor
(other than a traffic violation) or, with respect to your employment, knowingly
violate any federal or state securities or tax laws.

 

Good Reason means:

 

(i) the
Company reduces your base salary without your consent; or

 

(ii) the
Company assigns you duties materially inconsistent with, or substantially
diminishes, your status or responsibilities without your consent.

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