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Exhibit 10.2  

 
 

FEDERAL INCOME TAX SHARING AGREEMENT    
  

        This Federal Income Tax Sharing Agreement (the "Agreement") is made and entered into as of the 31st day of January, 2002, by and among Comverse
Technology, Inc., a New York corporation ("Parent"), and Comverse Infosys, Inc., a Delaware corporation ("Subsidiary"). 

        WHEREAS,
Parent and Subsidiary are members of an affiliated group of corporations, as defined in Section 1504(a) of the Internal Revenue Code of 1986, as amended (the "Code"), of
which Parent is the common parent (the "Company Group"); 

        WHEREAS,
Parent files and, to the extent permitted by applicable Federal income tax laws, will continue to file consolidated federal income tax returns with Subsidiary; and 

        WHEREAS,
the parties hereto wish to provide for the allocation among them of consolidated federal income tax liability for taxable years and certain related matters; 

        NOW
THEREFORE, in consideration of the foregoing promises and of the mutual covenants herein contained, the parties hereto agree as follows: 

        1.    DEFINITIONS.    

        (a)    Terms
used in this Agreement shall have the meanings ascribed to them in, and shall be interpreted in accordance with, the relevant provisions of the Code and the
regulations and rulings issued thereunder, as from time to time in effect. 

        (b)    For
purposes of this Agreement, the terms set forth below shall be defined as follows: 

        (i)    Determination—The
term "Determination" means and includes any determination within the meaning of Section 1313(a) of the Code and any of the events
specified in Sections 6213(b) or (d) of the Code. 

        (ii)    Hypothetical
Tax Liability—The term "Hypothetical Tax Liability" as it relates to Subsidiary for a taxable year is the federal income tax liability and
federal estimated tax payments determined by Parent in its reasonable discretion and computed as if Subsidiary had filed its own separate consolidated federal income tax return or had been required to
make its own separate estimated tax payments (computed without regard to the carryforward or carryback of any loss, deduction or credit to such taxable year), but subject to the modifications
specified in Treas. Reg. Section 1.1552-1(a)(2)(ii); provided, that (i) such liability shall be computed using the highest marginal corporate tax rate in effect for such
taxable year; and (ii) if for any taxable year a tax would be 

 

imposed
on Subsidiary pursuant to Section 55 of the Code, Subsidiary's Hypothetical Tax Liability shall be increased by the amount of Tax that would be imposed under such section, computed
using the alternative minimum tax rates set forth in Section 55(b)(1) of the Code and taking into account items specified in Section 55(b)(2) of the Code attributable to Subsidiary. 

        2.    ALLOCATION OF CONSOLIDATED FEDERAL INCOME TAX LIABILITY.    

        (a)    If
a consolidated federal income tax return is filed by Parent on behalf of the Company Group for any taxable year, Subsidiary shall pay to Parent an amount equal to its
Hypothetical Tax Liability for such taxable year. Parent shall provide to Subsidiary a schedule that sets forth in reasonable detail the calculation of its Hypothetical Tax Liability for such taxable
year. 

        (b)    For
purposes of the payment of such Hypothetical Tax Liability, Parent shall calculate an amount that would be required to be paid under the estimated tax requirements
of Section 6655 of the Code and any other relevant sections of the Code for Subsidiary. The amount required to be paid by Subsidiary to Parent pursuant to this paragraph for such taxable year
shall be paid on a current basis not later than the date on which the Company Group's consolidated federal income tax quarterly estimated tax payments are due to be paid for such quarter of such
taxable year. To the extent that
Subsidiary's Hypothetical Tax Liability for a given year exceeds the aggregate of the quarterly estimated tax payments made by Subsidiary for such year, Subsidiary shall make an additional tax payment
(together with any and all interest, additions to tax, fines and penalties with respect thereto) under the requirements of Section 6151 of the Code. Such final tax payment shall be made to
Parent no later than the date the Company Group consolidated final tax payment is due. To the extent that the quarterly estimated tax payments made by Subsidiary during a particular tax year exceed
its Hypothetical Tax Liability for such year, the excess shall be refunded by Parent or credited toward such Subsidiary's subsequent year's estimated tax payment. 

        (c)    Subsidiary
shall provide Parent with all of the tax related information necessary for Parent to compute (i) Subsidiary's quarterly estimated tax payments no later
than fifteen (15) days before the Company Group's consolidated federal income tax quarterly estimated tax payments are due for a particular quarter and (ii) Subsidiary's Hypothetical Tax
Liability and (iii) Subsidiary's share of the Company Group's final tax payment for a taxable year no later than fifteen (15) days before the Company Group's federal income tax return
for such taxable year is due. 

        3.    TAX SAVINGS.    

        No
payments shall be made by Parent to Subsidiary for any loss, deduction or credit generated by such Subsidiary in a taxable year. 

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        4.    ADJUSTMENTS TO CONSOLIDATED FEDERAL INCOME TAX LIABILITY.    

        If
pursuant to a Determination, the filing of an amended tax return or a claim for refund, a change or adjustment (other than a change or adjustment resulting from the carryback of a
deduction, loss or credit) is made to items reported on a consolidated federal income tax return of the Company Group, then the amount of the payments required to be made pursuant to Section 2
hereof shall be recomputed for such taxable year in accordance with the provisions of Section 2 hereof, taking into account such change or adjustment. The parties recognize that the recomputed
liability is not necessarily the final tax liability and that there may be additional recomputations. Not later than (i) five (5) days before the due date for any additional payment of
tax by Parent, (ii) five (5) days after the receipt of a refund or (iii) promptly following the event giving rise to the recomputation if such event will not result in the payment
of additional tax or the receipt of a refund, Parent shall pay to the Subsidiary, or Subsidiary shall pay to Parent, as the case may be, the difference between the amount originally paid under
Section 2 hereof and the recomputed amounts. 

        5.    TERMINATION OF AFFILIATION.    

        (a)    The
parties recognize that at some future date Subsidiary may cease to be included in the Company Group but continue to be a corporation subject to federal income tax
(the "Former Member"). In such event, Parent and the Former Member shall consult and shall furnish each other with information required to prepare accurately (a) the consolidated federal income
tax return of the Company Group for the last taxable year in which the Former Member was included in the Company Group, and (b) the federal income tax returns for all taxable years thereafter
of the Former Member and Parent, respectively, in which the tax liability of either may be affected by their former affiliation (including, for example, the apportionment of any consolidated net
operating or capital loss or general business or foreign tax credit carryover to the Former Member). 

        (b)    Parent
and the Former Member also shall consult and furnish each other with information concerning the status of any tax audit or tax refund claim relating to a taxable
year in which the Former Member was included in the Company Group and a consolidated federal income tax return was filed. The Former Member shall have the right to participate, at its own expense,
with Parent in the relevant portions of any audit of a taxable year during which the Former Member was a Member of the Company Group and as to which the Former Member's tax liability for such taxable
year may be affected. 

        (c)    Payments
which would have been required under this Agreement to or by the Former Member, were the Former Member still a member of the Company Group, and with respect to
taxable year(s) as to which the Former Member was a member of the Company Group, shall be so made in accordance with principles and methodologies set forth in this Agreement and at the time(s) set
forth herein. 

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        6.    TERM OF AGREEMENT.    

        This
Agreement shall continue in effect until sixty days after the expiration of the applicable statute of limitations (including all periods of extension, whether automatic or
permissive) with respect to the final taxable year of the Company Group which includes Subsidiary. 

        7.    INTEREST ON LATE PAYMENTS.    Any payment due and owing by one party hereto to another which is not paid on or
before the due date (if any) specified herein shall bear interest at the blended rate in effect under Section 6621(a)(1) of the Code for the period beginning on the day after the date the
payment is due hereunder to the date on which the payment is made. 

        8.    EFFECTIVE DATE.    

        This
Agreement shall be effective as of January 31, 1999. 

        9.    MISCELLANEOUS PROVISIONS.    

        (a)    This
Agreement supersedes all prior written or oral understandings between the parties hereto relating to the subject matter hereof and contains the entire understanding
of the parties hereto with respect to such subject matter. No alteration, amendment, or modification of any of the terms of this Agreement shall be valid unless made by an instrument signed in writing
by an authorized officer of each party hereto. 

        (b)    This
Agreement has been made in, and shall be construed and enforced in accordance with the laws of, the State of New York, without regard to New York's conflict of law
principles. 

        (c)    As
between the parties hereto, the provisions of this Agreement shall fix the liability of each to the other as to the matters provided for herein, regardless of whether
such provisions are controlling for federal income tax or other purposes (including, without limitation, computations of earnings and profits). 

        (d)    This
Agreement shall be binding upon, enforceable by and against, and inure to the benefit of, the parties hereto and their respective successors and assigns, and no
assignment shall relieve any party's obligation hereunder without the written consent of the other party. 

        (e)    In
case any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof
shall not in any way be affected or impaired thereby. 

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        (f)    All
determinations required hereunder for each taxable year shall be made by Parent. Such determination shall be final and binding upon the parties for the purposes
hereof. 

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        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first set forth above. 

	 	 	COMVERSE TECHNOLOGY, INC.
	

 	
 	
By:	

/s/  DAVID KREINBERG      
 Name: David Kreinberg

Title: Chief Financial Officer
	

 	
 	
COMVERSE INFOSYS, INC.
	

 	
 	
By:	

/s/  DAN BODNER      
 Name: Dan Bodner

Title: President and Chief Executive Officer

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FEDERAL INCOME TAX SHARING AGREEMENTExhibit 10.3  

PATENT LICENSE AGREEMENT BETWEEN

COMVERSE INFOSYS TECHNOLOGY, INC.  

 and  

 COMVERSE PATENT HOLDING COMPANY, INC.  

        Effective as of December 30, 1999 (the "EFFECTIVE DATE"), by and between Comverse Infosys Technology, Inc., a Delaware corporation ("CITI"), having
an office at 11260 Roger Bacon Drive, Suite 402, Reston, Virginia 20190 and Comverse Patent Holding Company, Inc. ("COMVERSE"), a Delaware corporation, having a principal place of business at
1201 Hays Street, Tallahassee, Florida 32301. 

        WHEREAS, COMVERSE and Lucent Technologies GRL Corp. ("LUCENT GRL") are entering into a patent license agreement entitled
PATENT LICENSE AGREEMENT between LUCENT TECHNOLOGIES GRL CORP. and COMVERSE PATENT HOLDING COMPANY, INC. (the "LUCENT AGREEMENT"); 

        WHEREAS, under the LUCENT AGREEMENT, COMVERSE shall license to LUCENT GRL certain patents owned or otherwise licensable by COMVERSE and
the related companies of COMVERSE and LUCENT GRL shall license to COMVERSE certain patents owned or otherwise licensable by LUCENT GRL and the related companies of LUCENT GRL; 

        WHEREAS, under the LUCENT AGREEMENT, COMVERSE has the right to grant to CITI a sublicense under the patents that LUCENT GRL has licensed
to COMVERSE; and 

        WHEREAS, CITI is desirous of acquiring a sublicense under the patents that LUCENT GRL has licensed to COMVERSE. 

        NOW, THEREFORE CITI and COMVERSE hereby agree as follows: 

        1.    CITI
hereby grants to COMVERSE a paid up license for the term of this Agreement to make, have made, use, lease, sell, offer to sell, or import, any product, process, or
service under any patent in any country of the world that CITI owns or otherwise has the right to license at any time during the term of this Agreement. 

        2.    COMVERSE
shall not have the right to grant sublicenses under the license of paragraph one (1) of this Agreement, except COMVERSE shall have the right to grant a
sublicense to LUCENT GRL in accordance with the terms and conditions of the LUCENT AGREEMENT. 

        3.    COMVERSE
agrees to grant a sublicense to CITI under the patents licensed to COMVERSE by the LUCENT AGREEMENT and in accordance with the terms and conditions of the LUCENT
AGREEMENT. 

        4.    The
term of this Agreement shall be from the EFFECTIVE DATE of this Agreement until such time as the LUCENT AGREEMENT expires or is otherwise terminated. 

	Date	 	1/17/00
	 	For COMVERSE PATENT HOLDING COMPANY, INC.
	

 	
 	

 	
 	

by	
 	

/s/  DAVID KREINBERG      

	

Date	
 	

1/17/00
	
 	

For COMVERSE INFOSYS, INC.
	

 	
 	

 	
 	

by	
 	

/s/  DAN BODNER

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