Document:

omcm20160630_10q.htm

 

Exhibit 10.54 

 

 

Pursuant to Instruction 2 of Item 601(a) of Regulation S-K, the Company has filed only the form of the Common Stock Purchase Warrant although the Company has issued various such Common Stock Purchase Warrants that are substantially identical in all material respects except as to the parties thereto and certain other details. The Schedule that follows the form of Common Stock Purchase Warrant identifies each Common Stock Purchase Warrant that have not been filed (or incorporated by reference) because they are substantially identical in all material respects to the form of Common Stock Purchase Warrant that is being filed, and sets forth the material details in which each omitted Common Stock Purchase Warrant differ from the form of Common Stock Purchase Warrant that is being filed.

 

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

No. X-X-X

 

OmniComm Systems, Inc.

 

COMMON STOCK PURCHASE WARRANT

CLASS 20XX

 

          1.     Issuance. In consideration of good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by OmniComm Systems, Inc., a Delaware corporation (the “Company”),                 or registered assigns (the “Holder”) is hereby granted the right to purchase at any time, on or after the Issue Date (as defined below) until 5:00 P.M., New York City time, on the Expiration Date (as defined below),                 (XXX,XXX,) fully paid and non-assessable shares of the Company’s Common Stock, $0.001 par value per share (the “Common Stock”), at an initial exercise price per share (the “Exercise Price”) of $_____ per share, subject to further adjustment as set forth herein. This Warrant was originally issued to the Holder or the Holder’s predecessor in interest on                 (the “Issue Date”).

 

2.     Exercise of Warrants.

 

2.1     General.

 

(a) This Warrant is exercisable in whole or in part at any time and from time to time commencing on the Issue Date. Such exercise shall be effectuated by submitting to the Company (either by delivery to the Company or by facsimile transmission) a completed and duly executed Notice of Exercise included herein. The date such Notice of Exercise is faxed to the Company shall be the “Exercise Date,” provided that, if such exercise represents the full exercise of the outstanding balance of the Warrant, the Holder of this Warrant tenders this Warrant Certificate to the Company within five (5) Trading Days thereafter. The Notice of Exercise shall be executed by the Holder of this Warrant and shall indicate (i) the number of shares then being purchased pursuant to such exercise and (ii) whether the exercise is a cashless exercise. 

  

 

 

 

 

(b) If the Notice of Exercise form elects a “cashless” exercise, the Holder shall thereby be entitled to receive a number of shares of Common Stock equal to (w) the excess of the Current Market Value (as defined below) over the total cash exercise price of the portion of the Warrant then being exercised, divided by (x) the Market Price of the Common Stock. For the purposes of this Warrant, the terms (y) “Current Market Value” shall mean an amount equal to the Market Price of the Common Stock, multiplied by the number of shares of Common Stock specified in the applicable Notice of Exercise, and (z) “Market Price of the Common Stock” shall mean the average Closing Price of the Common Stock for the three (3) Trading Days ending on the Trading Day immediately prior to the Exercise Date. 

 

(c) If the Holder provides on the Notice of Exercise form that the Holder has elected a “cash” exercise (or if the cashless exercise referred to in the immediately preceding paragraph (b) is not available in accordance with its terms), the Exercise Price per share of Common Stock for the shares then being exercised shall be payable, at the election of the Holder, in cash or by certified or official bank check or by wire transfer in accordance with instructions provided by the Company at the request of the Holder.

 

(d) Upon the appropriate payment, if any, of the Exercise Price for the shares of Common Stock purchased, together with the surrender of this Warrant Certificate (if required), the Holder shall be entitled to receive a certificate or certificates for the shares of Common Stock so purchased. The Company shall deliver such certificates representing the Warrant Shares in accordance with the instructions of the Holder as provided in the Notice of Exercise (the certificates delivered in such manner, the “Warrant Share Certificates”) within three (3) Trading Days (such third Trading Day, a “Delivery Date”) of (i) with respect to a “cashless exercise,” the Exercise Date or the Automatic Exercise Date, as the case may be, or, (ii) with respect to a “cash” exercise, the later of the Exercise Date or the date the payment of the Exercise Price for the relevant Warrant Shares is received by the Company.

 

(e) The Holder shall be deemed to be the holder of the shares issuable to it in accordance with the provisions of this Section 2.1 on the Exercise Date. 

 

2.2     Automatic Exercise. If any portion of this Warrant remains unexercised as of the Expiration Date and the Market Price of the Common Stock as of the Expiration Date is greater than the applicable Exercise Price as of the Expiration Date, then, without further action by the Holder, this Warrant shall be deemed to have been exercised automatically on the date (the “Automatic Exercise Date”) which is the day immediately prior to the close of business on the Expiration Date (or, in the event that the Expiration Date is not a Business Day, the immediately preceding Business Day) as if the Holder had duly given a Notice of Exercise for a “cashless” exercise as contemplated by Section 2.1(b) hereof, and the Holder (or such other person or persons as directed by the Holder) shall be treated for all purposes as the holder of record of such Warrant Shares as of the close of business on such Automatic Exercise Date. This Warrant shall be deemed to be surrendered to the Company on the Automatic Exercise Date by virtue of this Section 2.2 without any action by the Holder.

  

 

 

 

 

2.3     Certain Definitions. As used herein, the term “Expiration Date” means                     .

 

3.     Reservation of Shares. The Company hereby agrees that, at all times during the term of this Warrant, there shall be reserved for issuance upon exercise of this Warrant, one hundred percent (100%) of the number of shares of its Common Stock as shall be required for issuance of the Warrant Shares for the then unexercised portion of this Warrant. For the purposes of such calculations, the Company should assume that the outstanding portion of these Warrants was exercisable in full at any time, without regard to any restrictions which might limit the Holder’s right to exercise all or any portion of this Warrant held by the Holder.

 

4.     Mutilation or Loss of Warrant. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) receipt of reasonably satisfactory indemnification, and (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will execute and deliver a new Warrant of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall thereupon become void.

 

5.     Rights of the Holder. The Holder shall not, by virtue hereof, be entitled to any rights of a stockholder in the Company, either at law or equity, and the rights of the Holder are limited to those expressed in this Warrant and are not enforceable against the Company except to the extent set forth herein.

 

6.     Protection Against Dilution and Other Adjustments. 

 

6.1     Adjustment Mechanism. If an adjustment of the Exercise Price is required pursuant to this Section 6 (other than pursuant to Section 6.4), the Holder shall be entitled to purchase such number of shares of Common Stock as will cause (i) (v) the total number of shares of Common Stock Holder is entitled to purchase pursuant to this Warrant following such adjustment, multiplied by (w) the adjusted Exercise Price per share, to equal the result of (ii) (x) the total number of shares of Common Stock Holder is entitled to purchase before adjustment, multiplied by (y) the total Exercise Price before adjustment.

 

6.2     Capital Adjustments. In case of any stock split or reverse stock split, stock dividend, reclassification of the Common Stock, recapitalization, merger or consolidation (where the Company is not the surviving entity), the provisions of this Section 6 shall be applied as if such capital adjustment event had occurred immediately prior to the date of this Warrant and the original Exercise Price had been fairly allocated to the stock resulting from such capital adjustment; and in other respects the provisions of this Section shall be applied in a fair, equitable and reasonable manner so as to give effect, as nearly as may be, to the purposes hereof. A rights offering to stockholders shall be deemed a stock dividend to the extent of the bargain purchase element of the rights. The Company will not effect any consolidation or merger, unless prior to the consummation thereof, the successor or acquiring entity (if other than the Company) and, if an entity different from the successor or acquiring entity, the entity whose capital stock or assets the holders of the Common Stock of the Company are entitled to receive as a result of such consolidation or merger assumes by written instrument the obligations under this Warrant (including under this Section 6) and the obligations to deliver to the holder of this Warrant such shares of stock, securities or assets as, in accordance with the foregoing provisions, the holder may be entitled to acquire.

  

 

 

 

 

6.3     Adjustment for Spin Off. If, for any reason, prior to the exercise of this Warrant in full, the Company spins off or otherwise divests itself of a part of its business or operations or disposes all or of a part of its assets in a transaction (the “Spin Off”) in which the Company does not receive compensation for such business, operations or assets, but causes securities of another entity (the “Spin Off Securities”) to be issued to security holders of the Company, then the Company shall cause (i) to be reserved Spin Off Securities equal to the number thereof which would have been issued to the Holder had all of the Holder’s unexercised Warrants outstanding on the record date (the “Record Date”) for determining the amount and number of Spin Off Securities to be issued to security holders of the Company (the “Outstanding Warrants”) been exercised as of the close of business on the Trading Day immediately before the Record Date (the “Reserved Spin Off Shares”), and (ii) to be issued to the Holder on the exercise of all or any of the Outstanding Warrants, such amount of the Reserved Spin Off Shares equal to (x) the Reserved Spin Off Shares, multiplied by (y) a fraction, of which (I) the numerator is the amount of the Outstanding Warrants then being exercised, and (II) the denominator is the amount of the Outstanding Warrants.

 

7.     Transfer to Comply with the Securities Act. This Warrant has not been registered under the Securities Act of 1933, as amended, (the “1933 Act”) and has been issued to the Holder for investment and not with a view to the distribution of either the Warrant or the Warrant Shares. Neither this Warrant nor any of the Warrant Shares or any other security issued or issuable upon exercise of this Warrant may be sold, transferred, pledged or hypothecated in the absence of an effective registration statement under the 1933 Act relating to such security or an opinion of counsel satisfactory to the Company that registration is not required under the 1933 Act. Each certificate for the Warrant, the Warrant Shares and any other security issued or issuable upon exercise of this Warrant shall contain a legend on the face thereof, in form and substance satisfactory to counsel for the Company, setting forth the restrictions on transfer contained in this Section.

 

8.     Supplements and Amendments; Whole Agreement. This Warrant may be amended or supplemented only by an instrument in writing signed by the parties hereto. This Warrant contains the full understanding of the parties hereto with respect to the subject matter hereof and thereof and there are no representations, warranties, agreements or understandings other than expressly contained herein and therein.

  

 

 

 

 

9.     Governing Law. This Warrant shall be deemed to be a contract made under the laws of the State of Florida for contracts to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict of laws. Each of the parties consents to the jurisdiction of the federal courts whose districts encompass any part of the County of Broward or the state courts of the State of Florida sitting in the County of Broward in connection with any dispute arising under this Warrant and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens, to the bringing of any such proceeding in such jurisdictions. To the extent determined by such court, the Company shall reimburse the Holder for any reasonable legal fees and disbursements incurred by the Holder in enforcement of or protection of any of its rights under any of the Transaction Agreements.

 

10.     JURY TRIAL WAIVER. The Company and the Holder hereby waive a trial by jury in any action, proceeding or counterclaim brought by either of the Parties hereto against the other in respect of any matter arising out or in connection with this Warrant.

 

11.     Remedies. The Company stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Company in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

 

12.     Counterparts. This Warrant may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

13.     Severability. If any one of the provisions contained in this Agreement, for any reason, shall be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, and this Agreement shall remain in full force and effect and be construed as if the invalid, illegal or unenforceable provision had never been contained herein.

 

14.     Waiver. No waiver of any provision of this Agreement shall be effective unless it is in writing, signed by the party against whom it is asserted and any such written waiver shall only be applicable to the specific instance to which it relates and shall not be deemed to be a continuing or future waiver.

  

 

 

 

 

15.     Descriptive Headings. Descriptive headings of the several Sections of this Warrant are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by an officer thereunto duly authorized.

 

	
Dated:
	
 
	 	
 
	
 

	
 
	
 
	 	
 
	
 

	
 
	
 
	 	
 
	
 

	
 
	
 
	 	
OmniComm Systems, Inc.
	
 

	
 
	
 
	 	
 
	
 

	
 
	
 
	 	
 
	
 

	
 
	
 
	 	
 
	
 

	
 
	
 
	 	
By:
	 	
 

	
 
	
 
	 	
 
	
 

	
 
	
 
	 	
Thomas E. Vickers     
	
 

	
 
	
 
	 	
(Name)
	
 

	
 
	
 
	 	
 
	
 

	 	 	 	Chief Financial Officer	 
	 	 	 	(Title)	 

 

 

 

 

  

NOTICE OF EXERCISE OF WARRANT

 

	
TO:
	
OmniComm Systems, Inc
	
VIA FAX: (954) 473-1256

	
 
	
2101 W. Commercial Blvd., Suite 3500
	
 

	
 
	
Ft. Lauderdale, FL 33309
	
 

	
 
	
Attn: CFO
	
 

 

 

The undersigned hereby irrevocably elects to exercise the right, represented by the Common Stock Purchase Warrant Class 20XX, No. X-X-X dated as of           , to purchase ___________ shares of the Common Stock, $0.001 par value (“Common Stock”), of OmniComm Systems, Inc. and tenders herewith payment in accordance with Section 2 of said Common Stock Purchase Warrant, as follows:

 

	
 
	
●
	
CASH:     $                                                    =   (Exercise Price x Exercise Shares) 

 

	
 
	
 
	
Payment is being made by:

☐      enclosed check

☐   wire transfer

☐   other                                        

	
 
	
●
	
CASHLESS EXERCISE:

 

Net number of Warrant Shares to be issued to Holder :     _________*

 

* based on:      Current Market Value - (Exercise Price x Exercise Shares)     

Market Price of Common Stock

where:

Market Price of Common Stock [“MP”]                                       =     $_______________

Current Market Value [MP x Exercise Shares]                             =     $_______________

 

 

As contemplated by the Warrant, this Notice of Exercise is being sent by facsimile to the telecopier number and officer indicated above. 

 

If this Notice of Exercise represents the full exercise of the outstanding balance of the Warrant, the Holder either (1) has previously surrendered the Warrant to the Company or (2) will surrender (or cause to be surrendered) the Warrant to the Company at the address indicated above by express courier within five (5) Trading Days after delivery or facsimile transmission of this Notice of Exercise.

  

 

 

 

 

The certificates representing the Warrant Shares should be transmitted by the Company to the Holder

 

☐     via express courier, or 

 

☐     by electronic transfer

 

after receipt of this Notice of Exercise (by facsimile transmission or otherwise) to:

 

_____________________________________

_____________________________________

_____________________________________

 

 

 

 

Dated: ______________________

 

 

________________________________

Holder’s Name

 

 

 

 

  

SCHEDULE OF SUBSTANTIALLY IDENTICAL 

COMMON STOCK PURCHASE WARRANTS

 

Pursuant to Instruction 2 of Item 601(a) of Regulation S-K, the Company has filed only the form of this Common Stock Purchase Warrant although the Company has issued various such Common Stock Purchase Warrants that are substantially identical in all material respects except as to the parties thereto and certain other details. The following Schedule identifies each Common Stock Purchase Warrant that have not been filed (or incorporated by reference) because they are substantially identical in all material respects to the form of Common Stock Purchase Warrant that is being filed, and sets forth the material details in which each omitted Common Stock Purchase Warrant differ from the form of Common Stock Purchase Warrant that is being filed.

 

 

	
Original Date
of Issuance
	
Name of 
Holder
	
Amount of

 Warrants
	
Exercise 
Price
	
Expiration of 

Warrants

	  	  	  	  	  
	
December 31, 2011(1)
	
Randell G. Smith
	
2,000,000
	
$.25 per share
	
January 1, 2019

	
December 31, 2011(2)
	
Stephan E. Johnson
	
2,000,000
	
$.25 per share
	
January 1, 2019

	
December 31, 2011(3)
	
Thomas E. Vickers
	
1,000,000
	
$.25 per share
	
January 1, 2019

	
February 29, 2016
	
Cornelis F. Wit
	
1,800,000
	
$.25 per share
	
April 1, 2019

	
June 30, 2016
	
Noesis International
	
550,000
	
$.25 per share
	
April 1, 2020

	
June 30, 2016
	
Noesis International
	
400,000
	
$.25 per share
	
April 1, 2020

	
June 30, 2016
	
Noesis International
	
180,000
	
$.25 per share
	
April 1, 2020

	
June 30, 2016
	
Guus van Kesteren
	
360,000
	
$.25 per share
	
April 1, 2020

	
June 30, 2016
	
Ad Klinkenberg
	
480,000
	
$.25 per share
	
April 1, 2020

	
June 30, 2016
	
Wim Boegem
	
1,200,000
	
$.25 per share
	
April 1, 2020

 

 

	 	
(1)
	
The Common Stock Purchase Warrants were issued to Cornelis F. Wit on December 31, 2011 and on December 17, 2015 Mr. Wit sold the Common Stock Purchase Warrants to Mr. Smith.  

	 	
(2)
	
The Common Stock Purchase Warrants were issued to Cornelis F. Wit on December 31, 2011 and on November 23, 2015 Mr. Wit sold the Common Stock Purchase Warrants to Mr. Johnson. 

	 	
(3)
	
The Common Stock Purchase Warrants were issued to Cornelis F. Wit on December 31, 2011 and on November 23, 2015 Mr. Wit sold the Common Stock Purchase Warrants to Mr. Vickers.Exhibit

Exhibit 10.9

AVAYA INC. INVOLUNTARY SEPARATION PLAN FOR SENIOR OFFICERS

Plan Document

and

Summary Plan Description

(AMENDED AND RESTATED EFFECTIVE May 13, 2016)

THIS DOCUMENT, LIKE ALL AVAYA PLANS, PERSONNEL POLICIES OR PRACTICES, IS NOT A CONTRACT OF EMPLOYMENT.  iT IS NOT INTENDED TO CREATE, AND IT SHOULD NOT BE CONSTRUED TO CREATE, ANY CONTRACTUAL RIGHTS, EITHER EXPRESS OR IMPLIED, BETWEEN ANY PARTICIPATING COMPANY AND ITS EMPLOYEES.  THE PRACTICES AND PROCEDURES DESCRIbeD IN THIS DOCUMENT MAY BE CHANGED, ALTERED, MODIFIED OR DELETED AT ANY TIME, WITH OR WITHOUT PRIOR NOTICE.

EMPLOYMENT AT AVAYA IS “AT-WILL”.  tHIS MEANS THAT EMPLOYEES HAVE THE RIGHT TO QUIT THEIR EMPLOYMENT AT ANY TIME AND FOR ANY REASON, AND AVAYA HAS THE RIGHT TO TERMINATE ANY EMPLOYEE, AT ANY TIME AND FOR ANY REASON.

IN THE EVENT THERE IS A CONFLICT BETWEEN STATEMENTS IN THE SEPARATION PLAN AND THE TERMS OF ANY BENEFIT PLAN, POLICY, OR PRACTICE WITH RESPECT TO THE BENEFITS PROVIDED THEREIN, THE APPLICABLE BENEFIT PLAN, POLICY OR PRACTICE WILL CONTROL.  THE BOARD OF DIRECTORS OF AVAYA INC. (OR ITS DELEGATE) RESERVES THE RIGHT, AT ANY TIME, TO MODIFY, SUSPEND, CHANGE, OR TERMINATE AVAYA’S BENEFIT PLANS, POLICIES OR PRACTICES.

Page 1 of 12
May 2016

AVAYA INC. INVOLUNTARY SEPARATION PLAN FOR SENIOR OFFICERS

AMENDED AND RESTATED
PLAN DOCUMENT
AND
SUMMARY PLAN DESCRIPTION

A.  OVERVIEW

The Avaya Inc. Involuntary Separation Plan for Senior Officers (the “Plan”) is designed to provide a specific payment and certain benefit enhancements to eligible employees of Avaya Inc. (“Avaya” or the “Company”) and its affiliated companies and subsidiaries (collectively “Participating Companies”) whose employment is involuntarily terminated under conditions described in the Plan.

B.  TYPE OF PLAN

Under Section 3 (1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), this Plan is classified and is to be interpreted as an employee welfare benefit plan for purposes of providing specified post-employment payments and other benefits.

C.  PLAN PARTICIPATION

You are a participant in this Plan (a “Participant”) if you are a regular full-time Senior Officer who is on the active payroll of the Company (including employees on loan to other organizations, receiving benefits under the Avaya Short Term Disability Plan (“STD”) or on a leave of absence with guaranteed reinstatement rights), and you have been designated “At Risk” under the Avaya Force Management Program (“FMP”) Guidelines in effect at that time.  For the purposes of this Plan, “At Risk” under the FMP Guidelines means a company initiated termination other than for “cause,” which is defined as follows: (1) a material breach of your duties and responsibilities as a Senior Officer of the Company (other than as a result of incapacity due to physical or mental illness) which is demonstrably willful and deliberate on your part, and which is committed in bad faith or without reasonable belief that such breach is in the best interests of the Company or its affiliated companies and subsidiaries; or (2) conviction (including a plea of guilty or nolo contendere) of a felony; or (3) the commission of theft, fraud, breach of trust or any act of dishonesty involving the Company or its subsidiaries; or (4) any significant violation by you of Avaya’s Code of Conduct or any statutory or common law duty of loyalty to the Company or its subsidiaries; or (5) for the Chief Executive Officer (“CEO”), the definition of “cause,” if any, that is contained in the CEO’s employment agreement.  A Participant who receives severance benefits under any employment agreement and/or a Company change in control plan or separate agreement is not entitled to benefits under this Plan. 

For purposes of this Plan, Senior Officer means (1) the CEO and other employees of the Company at a level of senior vice president or above or (2) other employees of the Company selected for participation at the discretion of the CEO.  

Page 2 of 12
May 2016

For purposes of this Plan, Net Credited Service (“NCS”) shall be equal to the Participant’s time on the U.S. payroll of Avaya or any member of its controlled group of corporations (within the meaning of section 414(b) of the Internal Revenue Code of 1986, as amended), while the corporation is part of the control group, excluding any leave of absence or disability leave.  

D.  ELIGIBILITY TO RECEIVE BENEFITS

If you are a Participant, you are eligible to receive the benefits described in Section F upon the involuntary termination of your employment pursuant to the terms of this Plan, on your Scheduled Off-Payroll Date as set forth in Section E.  

E.  SCHEDULED OFF-PAYROLL DATE

Your Scheduled Off-Payroll Date will be the date that is specified in the written notice you receive confirming your designation as “At Risk”, which date will typically be thirty (30) days from the date of that notice.  You will not receive pay in lieu of floating holidays and designated holidays if these days are not taken prior to terminating employment, unless required by state law.

F.  PLAN PAYMENT

Except as provided herein, the Post-Employment Payment described in this Section F of the Plan constitutes the exclusive post-employment payment that a Participant who is terminated under the FMP guidelines is entitled to receive and are provided in lieu of any post-employment benefits available under any other applicable severance plan, program or policy (statutory or otherwise), individually negotiated separation agreement or other individual arrangement of or with a Participating Company.

1.  Post-Employment Payment 

A Participant who becomes eligible to receive benefits under this Plan shall be entitled to receive a Post-Employment Payment under this Section F.1 in an amount equal to one hundred percent (100%) of such Participant’s final annual Base Salary as of the date of termination.  For the CEO only, the Post-Employment Payment under this Section F.1 is as set forth in the CEO’s employment agreement. 

2.  Annual Incentive  

In accordance with the Avaya Inc. Executive Committee Discretionary Annual Incentive Plan (DAIP) and the Avaya Inc. Annual Incentive Plan (AIP), or any successor plans, an employee must be actively at work on the last day of the annual performance period to be eligible for payment.  Actual payment, if any, will be subject to both Company and individual performance.  In addition, a Participant will not be eligible to receive an award under the DAIP or AIP if he or she voluntarily terminates employment before the award is paid or is involuntarily terminated for cause (defined above).

Page 3 of 12
May 2016

3.  Equity Awards

Vesting or cancellation of stock options, restricted stock units or other long-term awards granted prior to your actual termination date shall be in accordance with the terms and conditions of (a) the Avaya Holdings Corp. Second Amended and Restated 2007 Equity Incentive Plan (as amended from time to time) or other long-term incentive plan or program pursuant to which you have been provided equity awards and (b) your respective award agreements.

4.  Termination Agreement and Release

To receive your Post-Employment Payment, you must sign the Termination Agreement and Release to be provided separately and return it to the Executive Compensation Team of Avaya within thirty (30) days following your actual termination date, unless a longer review period is required by law.  The Post-Employment Payment shall be paid in a lump sum in the next available payroll period after both (a) the receipt of the validly executed and delivered Termination Agreement and Release and (b) the expiration of the seven (7) day revocation period during which you may revoke the Termination Agreement and Release.  Revocation during that period will result in ineligibility for payment.  

G.  WITHHOLDINGS

The amount of the Post-Employment Payment paid pursuant to this Plan is subject at the time of payment to the withholding of federal, state and local taxes, FICA (Social Security taxes), and FUTA and SUTA (unemployment taxes) and will be reported on IRS form W-2.  Payment will not be reduced for contributions to, or be recognized under, any Avaya employee or executive benefit plan or program.

H.  PAYMENT UPON DEATH, DISABILITY OR LEAVE OF ABSENCE

1.  Death

If you should die on or before your actual termination date, no payments will be made or benefits provided under this Plan.  You will be treated as if you had died as an active employee and your estate or your beneficiaries will be entitled to the customary benefits payable upon the death of an active employee.  If you should die after being placed “at risk”  , but before your actual termination date or before payment is made, your Post-Employment Payment, if applicable, will be made to your lawful spouse or, if you are not survived by a lawful spouse, to your estate in a single lump sum as soon as practicable after your death, provided you, your lawful spouse or the executor of your estate has signed and has not revoked a Termination Agreement and Release in accordance with the provision of Section F.4 of this Plan.

Page 4 of 12
May 2016

2.  Disability and Leaves of Absence

If you are receiving disability benefits or you are on a leave of absence with a right to guaranteed reinstatement prior to terminating employment, any payments under this Plan to you shall be computed and paid as follows:

(a)  Employees receiving disability benefits:

Coverage under the Company’s short-term and long-term disability programs generally ends on the last day of employment.  No payment under this Plan will be made until your employment is formally terminated.  Employees who may be entitled to continue receiving disability benefits (short-term or long-term), if any, post termination of employment must waive any such rights in order to receive the payment described in Section F.  You cannot convert your disability coverage to an individual policy.

(b)  Employees on a leave of absence with guaranteed right of reinstatement:

Payments computed under this Plan will not be payable until after your employment is formally terminated at the conclusion of your leave of absence.

I.    FORFEITURE  

You will forfeit all or a portion of your payment and benefits, including the benefits listed under Section J, under the following circumstances:

1.  Re-Employment

If, within six (6) months of your actual termination date, you become employed by:  (i) Avaya, or (ii) any entity within Avaya’s controlled group of corporations within the meaning of Section 1563 of the Internal Revenue Code, or (iii) any other company which participates in Avaya’s U.S. pension plans, or (iv) any of the successors or assigns of any of them, you will be required to repay to Avaya that portion of the Post-Employment Payment which relates to the part of the year that you are re-employed.  The portion you will be required to repay will be determined as follows: the Post-Employment Payment will be multiplied by a fraction, the numerator of which is the number of complete months (of the six (6) month period following your actual termination date) during which you were re-employed and the denominator of which is six (6).  

2.  Dispositions and Outsourcing

If, in connection with, as a result of or in anticipation of a disposition or a sale, directly or indirectly, of any portion of the stock or assets of Avaya or an outsourcing of any of Avaya’s products, services, processes or other business concerns you are offered at any time within the ninety (90) day period immediately following your termination of employment with the Company an opportunity:

Page 5 of 12
May 2016

(a)    to perform services as an employee with the purchaser or service provider, then you must repay the entire Post-Employment Payment described in Section F.1 to the Company and will cease receiving benefits described in Section J effective as of the date of such offer; or 

(b)    to render services to a purchaser or service provider as an independent contractor, consultant or in any other non-employment capacity, full- or part- time, and you provide such services and receive compensation for such services, then you must repay a portion of the Post-Employment Payment described in Section F.1 to the Company in an amount equal to the amount of compensation received by you for performing such services during the six-month period following your termination date.

3.  Engaging in Inappropriate Conduct

Notwithstanding any other provision of this Plan, if, as determined by the CEO, or his or her delegate, with the advice and counsel of the Law Department of Avaya, you engage, while you are a Participant, in any action or inaction that constitutes “cause” as defined in Section C, you shall not be entitled to receive any Post-Employment Payment or benefits, or if payment has been made, you will be required to repay the Post-Employment Payment in its entirety to the Company.  

J.  MEDICAL, LIFE INSURANCE, AND OTHER BENEFITS

		
	1.
	 Summary of Benefits

The provisions regarding medical, dental, and life insurance coverages are outlined in a  “Severance Plan Benefits Summary” that will be provided at separation, as the provisions may change over time.  For a description of the provisions of such coverages, including administration of or rights of Participants under any of Avaya’s health (including COBRA rights) or life insurance plans, please consult the applicable plan documents, which control, and the respective Summary Plan Descriptions for active and retired employees. In the event there is a conflict between the material in this Plan or the Severance Plan Benefits Summary and the terms of the respective benefit plan documents, the benefit plan documents will control and govern the operation of such plans.  Avaya reserves the right to modify, suspend or terminate the benefit plans at any time and without prior notice to Participants.

If you are eligible to retire with a service pension under the service based program of the Avaya Inc. Pension Plan for Salaried Employees, health and life insurance coverage will be available under the provisions that normally apply to retiring service pensioners.  

All other Senior Officer Perquisites, if any, will end as of your last day on the active payroll.

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2.  End of Coverage 

Other than as extended by COBRA and as shown in the provided “Severance Plan Benefits Summary,” all coverage ceases at the end of the month in which your employment terminates.  Notwithstanding the above, all coverage set forth above automatically ends when you become eligible for group coverage under another plan of any other employer or other organization.

3.  Other Benefit Plan Agreements  

If you were an employee of any entity at the time the stock or assets of such entity were acquired by the Company, and you became an employee of the Company through such acquisition, any agreements entered into by the Company, which apply to Participants, that are in effect at the time of your termination of employment will control, where relevant, with respect to the benefits available to you under the Plan.  

K.  BENEFIT CLAIM AND APPEAL PROCEDURES 

1.  Claim Procedure

Any Participant in the Plan, or a person duly authorized by a Participant, may file a claim in writing for benefits under this Plan if the Participant believes he or she has not received benefits to which he or she was entitled under the Plan.  Such a claim may only relate to a matter under the Plan and not any matter under the FMP Guidelines or any other Participating Company policy, practice or guideline.

The written claim should be sent to the Executive Compensation Team of Avaya  at 4655 Great America Parkway, Santa Clara, CA 95054.  The written claim should be sent within sixty (60) days of the date of the occurrence of facts giving rise to the claim.  

If the claim is denied, in whole or in part, the claimant will receive written notice from the Chief Financial Officer, the General Counsel, or one of their respective delegates.  The information will be provided within ninety (90) days of the date the claim was received.  

The written notice will include:
		
	•
	the specific reason or reasons for the denial;

		
	•
	specific reference to pertinent Plan provisions on which the denial was based;

		
	•
	a description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary;  and

		
	•
	appropriate information as to the steps to be taken if the Participant, spouse, heirs or estate or representative desires to submit the claim for review.

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In some cases, more than ninety (90) days may be needed to make a decision.  In such cases, the claimant will be notified in writing, within the initial 90-day period, of the reason more time is needed.  An additional ninety (90) days may be taken to make the decision if the claimant is sent such a notice.  The extension notice will show the date by which the decision will be sent.  If no response is received within the 90-day period, the claim is considered denied.

2.  Appeal Procedure

A claimant may use this procedure to appeal a denied claim if:

		
	•
	no reply at all is received by the claimant within ninety (90) days after filing the claim;

		
	•
	a notice has extended the time an additional ninety (90) days and no reply is received within 180 days after filing the claim;  or 

		
	•
	written denial of the claim for benefits or other matters is received within the proper time limit and the claimant wishes to appeal the written denial.

If a claim for benefits is denied, in whole or in part, either expressly or by virtue of the Participant not having received a reply, the Participant, or other duly authorized person may appeal the denial in writing within sixty (60) days after the denial is or should have been received.  Written request for review of any denied claim or any other disputed matter should be sent directly to Avaya Inc. Attn:  Employee Benefits Committee, 4655 Great America Parkway, Santa Clara, CA 95054

The Avaya Inc. Employee Benefits Committee (the “EBC”) serves as the final review committee under the Plan for all Participants.  The EBC has sole and complete discretionary authority to determine conclusively for all parties and in accordance with the terms of the documents or instruments governing the Plan, and all questions arising from the administration of the Plan and interpretation of all plan provisions, determination of all questions relating to participation of eligible employees and eligibility for benefits, determination of all relevant facts, the amount and type of benefits payable to any Participant, spouse, heirs or estate, and the construction of all terms of the Plan.  All determinations and decisions of the EBC are conclusive and binding on all parties and not subject to further review.  

Unless the EBC sends notice in writing that the claim is a special case needing more time, the EBC will conduct a review and decide on the appeal of the denied claim within sixty (60) days after receipt of the written request for review.  If more time is required to make a decision, the EBC may have an additional sixty (60) days, for a total of 120 days, to make its decision.  

If the claimant sends a written request of a denied claim, the claimant has the right to:

		
	(i)
	Review pertinent Plan documents which may be obtained by following the procedures described in this Plan document, and 

		
	(ii)
	Send to the EBC a written statement of the issues and any other documents in support of the claim for benefits or other matters under review.  

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The EBC decision shall include specific reasons for the decision as well as specific references to the pertinent Plan provisions on which the decision is based.  If the EBC does not give its decision on review within the appropriate time span, the claimant may consider the claim denied.

Please note that the Plan requires that a Participant pursue all the claim and appeal rights described above before seeking any other legal recourse regarding claims for benefits.

3.  Limitations on Legal Action

The Plan has its own statute of limitations.  No legal action concerning your right to benefits under the Plan may be commenced later than 365 days after your termination of employment.  This means that if you believe that you are entitled to benefits under the Plan, you must file a claim for benefit or seek any other available legal recourse within 365 days of your termination of employment.  

L.  ERISA RIGHTS STATEMENT

All employees eligible for benefits under this Plan are Plan Participants.  Participants in this Plan are entitled to certain rights and protection under ERISA.  ERISA provides that all Plan Participants shall be entitled to examine, without charge, at the office of the Plan Administrator, at 4655 Great America Parkway, Santa Clara, CA 95054, the Plan documents and obtain copies of all documents filed by this Plan with the U.S. Department of Labor.  A reasonable fee or charge may be imposed for such copies.

In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of employee benefits plans.  The people who operate this Plan, called "fiduciaries" of this Plan, have a duty to do so prudently and in the interest of all Plan Participants.  No one, including a Participant's employer or any other person may fire or otherwise discriminate against a Participant in any way for the purpose of preventing a Participant from obtaining a benefit or exercising rights under ERISA. If any claim for a Plan benefit is denied, in whole or in part, the person whose claim was denied must receive a written explanation of the reason for the denial.  Such a person has the right to have the Chief Financial Officer, the General Counsel, or one of their respective delegates and/or the EBC review and reconsider that claim (see Section K, entitled "Benefit Claim and Appeal Procedures").

Under ERISA, there are steps to take to enforce the above rights.  For instance, if materials from this Plan are requested but not received within thirty (30) days, the person making the request may file suit in a federal court.  In such cases, the court may require the Participating Company to provide the materials and pay that person up to  $110 a day until the materials are received, unless they were not sent because of reasons beyond the control of the Company.  Anyone whose claim for benefits is denied after final review or ignored, in whole or in part, may file suit in a state or federal court.  Anyone who is discriminated against for asserting rights under this Plan may seek assistance from the U.S. Department of Labor or may file suit in a federal court, but an action relating to a claim for benefits may not be filed prior to exhausting the claim and appeal procedure under this Plan. The court will decide who will pay court costs and legal fees.  If that person is successful, the court may order the party that was sued to pay these costs and fees.  If that person loses, the court may order him or her to pay these costs and fees if, for example, it finds that the claim was frivolous.

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Anyone who has questions about this Plan should contact the Plan Administrator, Executive Compensation Team at 4655 Great America Parkway, Santa Clara, CA 95054.  Anyone who has questions about this statement of Participants' rights, or about rights under ERISA, should contact the nearest office of the U.S. Labor - Management Services Administration, Department of Labor.

M.  PLAN ADMINISTRATOR

Avaya Inc., 4655 Great America Parkway, Santa Clara, CA 95054, is the Plan Administrator of the Plan. Avaya and each of its subsidiary companies that are covered by the Plan have delegated administrative authority and responsibility to the Avaya Inc. Employee Benefits Committee (“EBC”).  The EBC is located at Avaya Inc. 4655 Great America Parkway, Santa Clara, CA 95054.  

N.  EMPLOYER AND PLAN IDENTIFICATION NUMBERS

This Plan is identified by the following number under Internal Revenue Service rules:

Employer ID # 22-3713430 assigned by the IRS.

Plan # 531 assigned by Avaya.

O. AMENDMENT AND TERMINATION

Pursuant to Section 402(b)(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Board of Directors of Avaya Inc. ("Board”), or its authorized representative pursuant to delegated authority ("Delegate"), may from time to time amend, modify or change this Plan at any time, and the Board or its Delegate may terminate this Plan at any time. Plan amendments may include, but are not limited to, elimination or reduction in the level or type of benefits provided to any class or classes of employees (and their spouses and dependents).

P.  PLAN DOCUMENTS

This document is both the Summary Plan Description and the official Plan document which regulates the operation of this Plan.

Q.  LEGAL PROCESS  

Process can be served on the Plan or Avaya Inc., as Plan Administrator, by directing such legal service to Avaya Inc., 4655 Great America Parkway, Santa Clara, CA 95054, Attention:  Executive Compensation Team.

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R.  ASSIGNMENT OR ALIENATION

No payment or benefits under this Plan or any right or interest in such payments or benefits shall be assignable or subject in any manner to anticipation, alienation, sale, transfer, assignment, claims of creditors, garnishment, pledge, execution, attachment or encumbrance of any kind, including, but not limited to, pursuant to any domestic relations order (within the meaning of Section 206(d)(3) of ERISA and Section 414(p)(1)(B) of the Internal Revenue Code) and any such attempted disposition shall be null and void.  The payment and benefits hereunder or the right to receive future payment or benefits under the Plan may not be anticipated, alienated, sold, transferred, assigned, pledged, executed upon, encumbered, or subjected to any charge or legal process; no interest or right to receive a payment or benefit may be taken either voluntarily or involuntarily, for the satisfaction of the debts of, or other obligation or claims against such person or entity, including judgment or claims for alimony, support, separate maintenance and claims in bankruptcy proceedings.

S.    TERMS AND CONDITIONS OF EMPLOYMENT  

This document is not a contract of employment.  It is not intended to create, and it should not be construed to create, any contractual rights, either express or implied, between you and the Company.  The employment relationship between the Company and the employees covered by the Plan is “at-will”.  This means that employees have the right to quit their employment at any time and for any reason, and the Company reserves the right to terminate any employee’s employment, with or without cause, at any time for any reason.

T.   FUNDING  

Payments made under the Plan will be paid out of the general assets of the Company.

U.  CONTROLLING LAW  

The Plan shall be construed, administered and governed according to the laws of the State of New Jersey, except to the extent preempted by federal law, which shall in that case control.

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In witness whereof the Company has caused this Plan, as amended and restated, to be effective as of the 13th day of May, 2016.

AVAYA INC.

By:    ___/s/ David Vellequette______          _May 13, 2016______
David Vellequette                      Date
Senior Vice President and 
Chief Financial Officer

Attest:     ___/s/ Adele Freedman ______          _May 13, 2016______
Adele Freedman                      Date
Corporate Secretary

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