Document:

Exhibit 10.3

 

Form of Award Agreement –
Supplemental Retention Program

 

To:

 

	
  From:

  	
   

  	
  Joseph L. Cowan

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  December 8, 2005

  
	
   

  	
   

  	
   

  
	
  Subject:

  	
   

  	
  Supplemental Retention Program

  

 

On
November 1, 2005, the Board of Directors (the “Board”) of Manugistics Group,
Inc. (the “Company”) approved retention awards for certain employees whose
continued commitment and contributions are key to the Company’s success.  Accordingly, we are extending to you the
following retention bonus opportunities under the Supplemental Retention
Program:

 

1.     You will be entitled to a one-time, lump-sum bonus payment in the
amount of $            (           
Dollars) upon the earliest to occur of the following (assuming you remain
employed by the Company immediately before such event):  (i) your involuntary termination of
employment by the Company without Cause or your resignation for Good Reason;
(ii) a Change in Control of the Company; or (iii) November 1, 2006.

 

2.     You have been granted         shares
of Restricted Stock and nonqualified stock options for         
shares under the Company’s Amended and Restated 1998 Stock Option Plan (the “1998 Plan”), with
terms in the grant and award agreements that are being provided to you.

 

For
the purpose of this offer, “Change in Control”, “Cause,”
and “Good
Reason” are defined as follows:

 

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 (“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 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 individual:

 

(i) commits a material
breach of his or her obligations or agreements with respect to the Company;

 

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

 

(iii) fails or refuses to
perform any duties delegated to him or her that are consistent with the duties
of similarly-situated executives or are otherwise required;

 

(iv) seizes a corporate
opportunity for himself or herself 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) is convicted of or
pleads guilty or no contest to a felony (or to a felony charge reduced to
misdemeanor), or, with respect to his or her employment, to any misdemeanor
(other than a traffic violation) or, with respect to his or her employment,
knowingly violates any federal or state securities or tax laws.

 

“Good Reason” means:

 

(i) the Company reduces the
individual’s base salary without his or her consent; or

 

(ii) the Company assigns the
individual duties materially inconsistent with, or substantially diminishes,
his or her status or responsibilities without his or her consent.

 

In
addition, if the payments and vesting of the compensation described above
subjects you to the federal excise tax levied on certain “excess parachute
payments” under Section 4999 of the Internal Revenue Code, then the amounts
payable under this Supplemental Retention Program will be reduced to the extent
necessary to avoid such excise tax, unless you, after paying the excise tax,
will be better off by having the larger payment.  In practice, this means that the Company is
offering the compensation described in this memorandum without regard to
whether the deductibility of compensation under such payments (or any other
payments or benefits) would be limited or precluded by Section 280G of the
Internal Revenue Code of 1986 (the “Code”) and without regard to whether such
payments would subject you to the federal excise tax levied on certain “excess
parachute payments” under Section 4999 of the Code; provided, however,
that if the Total After-Tax Payments (as defined below) would be increased by
the reduction or elimination of any payment and/or other benefit (including the
vesting of options and restricted stock) under this Supplemental Retention
Program, then the amounts payable under this Program will be reduced or
eliminated as follows: (i) first, by reducing or eliminating any cash
payments

 

 

or other benefits (other than the vesting of
the options and stock) and (ii) second, by reducing or eliminating the vesting
of the options and stock that occurs as a result of the Change in Control (as
provided above), to the extent necessary to maximize the Total After-Tax
Payments. The Company’s independent, certified public accounting firm will
determine whether and to what extent payments or vesting under this agreement
are required to be reduced in accordance with the preceding sentence. If there
is an underpayment or overpayment under this agreement (as determined after the
application of this paragraph), the amount of such underpayment or overpayment
will be immediately paid to you or refunded by you, as the case may be, with
interest at the applicable federal rate provided for in Section 7872(f)(2) of
the Code. For purposes of this award, “Total After-Tax Payments” means the total of
all “parachute payments” (as that term is defined in Section 280G(b)(2) of the
Code) made to you or for your benefit (whether made under the agreement or
otherwise), after reduction for all applicable federal taxes (including,
without limitation, the tax described in Section 4999 of the Code).

 

The
retention incentives offered in this agreement are separate and exclusive of
any incentive bonus payments to which you are entitled as part of your annual
incentive plan.

 

Bonus
payments will be made as soon as practicable following the date that triggers
the payment.  In accordance with federal
and state regulations, all bonus payments are subject to appropriate tax
deductions.

 

Nothing
in this Program restricts the Company’s rights or those of any of its
affiliates to terminate your employment or other relationship at any time, with
or without Cause and for any or no reason, subject to such other agreements as
may cover you.

 

Please
signify your acceptance of these bonus terms by signing below.

 

“I acknowledge and accept.”

 

 

	
   

  	
   

  	
   

  
	
  Employee Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Joseph L. Cowan

  	
   

  	
  Date

  
	
  Manugistics Group, Inc.Exhibit
10.4

 

TRANSACTION

 

ENTRE
LES SOUSSIGNES:

 

•    la Société
MANUGISTICS FRANCE, société par actions simplifiée au capital de
€ 460.000, dont le siège social est situé Tour Neptune – la Défense 1,
92086- Paris La Défense, identifiée sous le numéro 313 041 048 RCS Nanterre,
représentée par Monsieur Andrew Archer, ayant tous pouvoirs à l’effet des
présentes;

 

ci-après “MANUGISTICS FRANCE”,

 

d’une part,

 

et

 

•    Monsieur
Jean-Claude WALRAVENS, Directeur de société, demeurant : Clos Manuel n°
11,   1150-Bruxelles (Belgique),

 

ci-après “M. Walravens”,

 

d’autre part,

 

IL A
ETE RAPPELE QUE :

 

•    Monsieur
Walravens a, par contrat à durée indéterminée daté du  1er décembre 1999 été engagé par
MANUGISTICS FRANCE à compter du  6
décembre 1999 en qualité de directeur commercial ; ledit contrat
mentionnant l’applicabilité de la législation du pays de M. Monsieur Walravens ;

 

•    MANUGISTICS
FRANCE a décidé que le 31 août 2005 serait la date à laquelle serait mis un
terme immédiat au contrat de Monsieur Walravens et a entamé la procédure prévue
par la législation précitée ; les motifs invoqués par MANUGISTICS FRANCE à
l’appui de sa décision ont été confirmés avec précision par un courrier
recommandé avec AR en date du 6 septembre 2005 ;

 

•    Monsieur
Walravens a, par courrier remis en mains propres en date du 12 septembre 2005,
fait savoir à MANUGISTICS FRANCE que, employé par une société française et
rémunéré par celle-ci pour travailler essentiellement en France et, en tout
état de cause pour le compte de cette entreprise, leurs rapports ne pouvaient
être régis que par le seul droit du travail français dont l’application est en
France d’ordre public et notamment dans ses dispositions traitant des ruptures
du contrat de travail ;

 

•    Monsieur
Walravens a fait immédiatement savoir qu’il contestait les motifs allégués pour
mettre un terme à son contrat et il a évoqué l’existence d’un préjudice
considérable, qu’il chiffre à près de un million d’euros ;

 

•    par lettre en
date du 14 septembre 2005, MANUGISTICS FRANCE a maintenu les motifs de sa
décision en précisant que, renseignement pris, elle n’entendait pas

 

 

s’opposer à l’application du droit du travail français pour la
détermination des droits de Monsieur Walravens et des sommes auxquelles
celui-ci était en droit de prétendre dans la mesure où celui-ci ne remettait
pas en cause les formalités déjà accomplies en vue de procéder à son
licenciement ;

 

•    par lettre
recommandée avec accusé de réception en date du 21 septembre 2005, Monsieur
Walravens a apporté divers éléments de réponse aux griefs invoqués par
MANUGISTICS FRANCE en alléguant que, ayant pris la direction commerciale d’une
société lourdement déficitaire, il l’avait, en moins de six ans, transformée en
un modèle pour d’autres sites européens du Groupe MANUGISTICS et que MANUGISTICS
FRANCE avait généré des revenus de licence significatifs sous sa direction et
sa supervision ; que MANUGISTICS France avait conclu, au printemps 2005 un
contrat avec un important client multinational, grâce à ses actions qui ont
compté pour une large part dans les revenus mondiaux de licence réalisés par le
Groupe au cours du trimestre. De plus Monsieur Walravens a fait valoir que
MANUGISTICS contrecarre son aptitude à percevoir des commissions sur des
affaires à réaliser avec des prospects potentiels en ligne avec ses
réalisations passées. Monsieur Walravens précisait enfin dans ce courrier que,
faute d’accord amiable, il s’adresserait à la justice pour obtenir le paiement
du préavis et la réparation intégrale de son préjudice ;

 

•    au cours d’un entretien
téléphonique en date du 23 septembre 2005, MANUGISTICS FRANCE a, en bref et pour
mettre un terme à l’affaire, ouvert la porte à une solution amiable en offrant
à Monsieur Walravens une indemnisation équivalente à quatre mois de son
salaire ;

 

•    MANUGISTICS FRANCE
a été immédiatement informée du rejet de cette proposition par un courrier
recommandé avec accusé de réception en date du 23 septembre 2005 et des
discussions sont alors intervenues entre les parties, le cas échéant assistées
de leurs conseils, MANUGISTICS FRANCE confirmant son désaccord avec certaines réclamations
de Monsieur Walravens et son souhait d’éviter tant la perte de temps que les
coûts et les incertitudes d’une action judiciaire en mettant un terme amiable
et définitif au différend intervenu entre les parties ;

 

•    à l’issue de ces
discussions et après concessions mutuelles, les parties se sont rapprochées et
sont convenues de régler à l’amiable et de façon transactionnelle le différend
ci-dessus évoqué.

 

Ceci
rappelé, les parties sont convenues de ce qui suit :

 

ARTICLE
1 Les parties
décident d’un commun accord de mettre comme convenu aux articles 2 et suivants,
un terme amiable et définitif au différend les opposant et lié à la résiliation
du contrat de travail de Monsieur Walravens.

 

ARTICLE
2 - Ce jour, MANUGISTICS FRANCE remet à Monsieur Walravens, savoir :

 

•   une somme de € 66.517,71 (soixante six mille cent cinq
cent dix sept euros et soixante et onze centimes) correspondant (a) à la
rémunération due au titre du préavis contractuel de trois mois, déduction faite
des retenues fiscales et sociales, soit € 37.646,55 et (b) l’indemnité
légale de licenciement de € 28.871,16 (le droit aux congés payés restant
réglé par la loi du contrat) ;

 

•   une somme de € 445.600 (quatre cent quarante cinq
mille six cents euros) à titre de dommages et intérêts en réparation
forfaitaire, transactionnelle et définitive de l’ensemble des préjudices
ci-dessus allégués.

 

En
contrepartie de ces règlements dont il donne bonne et valable quittance, Monsieur
Walravens reconnaît que son contrat de travail s’est trouvé définitivement
rompu le 31 août

 

2

 

2005 et
déclare être rempli de l’intégralité de ses droits résultant tant des relations
contractuelles ayant existé entre lui-même et MANUGISTICS FRANCE que de leur cessation.

 

ARTICLE 3 - MANUGISTICS FRANCE et Monsieur
Walravens déclarent expressément qu’ils n’ont plus aucune réclamation à
formuler l’un à l’encontre de l’autre, à quelque titre que ce soit, et que tous
les litiges découlant de l’exécution du contrat de travail ayant existé entre
eux et de la rupture de ce contrat, se trouvent de ce fait définitivement
éteints du fait du paiement par MANUGISTICS FRANCE des sommes mentionnées à l’article
2 ci-dessus.

 

Monsieur Walravens reconnaît
en tant que de besoin qu’il a été informé en temps utile de la décision de MANUGISTICS
FRANCE de le dispenser du respect de la clause de non concurrence prévue à l’article
9 de son contrat de travail et qu’il ne peut donc prétendre à aucune
indemnisation à ce titre.

 

ARTICLE 4 - Monsieur
Walravens s’engage à respecter l’obligation de discrétion découlant du contrat
de travail ayant existé entre lui-même et MANUGISTICS France à ne jamais rien
dire ou faire qui soit susceptible de porter atteinte à MANUGISTICS FRANCE, ou
aux autres sociétés du groupe dont elle fait partie, ou à leur nuire d’une
façon quelconque.

 

Monsieur Walravens s’engage,
en particulier, à respecter le caractère strictement confidentiel des
informations techniques, scientifiques, et/ou commerciales, dont il a pu avoir
connaissance du fait ou à l’occasion de son activité chez MANUGISTICS FRANCE, à
ne pas les divulguer, sous quelque forme que ce soit, directement ou
indirectement, auprès de tiers quelconques, personnes physiques ou morales,
ainsi qu’à ne pas les utiliser à quelques fins que ce soit. Dans les 30 jours
de la présente convention, Monsieur Walravens restituera à MANUGISTICS FRANCE
tous les documents de quelque nature que ce soit, manuels, supports magnétiques
et autres objets qui avaient été mis à sa disposition dans le cadre de ses
fonctions, et ce, sans en garder copie.

 

Chacune
des parties s’engage à considérer comme confidentiels l’existence et le contenu
de cette transaction ainsi que les négociations qui ont conduit à sa
conclusion, ceci, sauf pour faire valoir les droits en ressortant
respectivement pour chacune d’elles ou, encore si la divulgation est exigée par
la loi applicable ou par une décision de justice.

 

ARTICLE 5 - Le présent accord établi après
rencontre des parties et mutuelles concessions, vaut transaction définitive au
sens des articles 2044 et suivants du Code Civil et aura, entre les parties,
autorité de la chose jugée en dernier ressort conformément aux dispositions du
Code Civil.

 

	
  Fait en deux originaux

  à Paris-la Défense, le

  	
  2005

  
	
   

  	
   

  
	
  Lu et approuvé et bon pour

  	
  Lu et approuvé et bon pour

  
	
  règlement transactionnel et definitive

  	
  règlement transactionnel et definitive

  
	
   

  	
   

  
	
  /s/
  Andy Archer

  	
   

  	
  /s/
  Jean-Claude Walravens

  	
   

  
	
   

  	
   

  
	
  3-10-2005

  	
  30-09-2005

  
	
   

  	
   

  
	
   

  	
   

  
	
  Pour
  MANUGISTICS FRANCE (*)

  	
  Monsieur
  Walravens (*)

  
	
  [Andrew
  ARCHER, Head of European Operations]

  	
   

  
				

 

(*) les
signatures doivent être précédées de la mention manuscrite « Lu et
approuvé et bon pour règlement transactionnel et définitif »

 

3

 

[English
Translation]

 

Translated from French

For information purposes only

 

SETTLEMENT AGREEMENT

 

Between
the undersigned:

 

•      MANUGISTICS FRANCE, a simplified company by shares
with a capital equity of € 460.000 and registered office located at Tour
Neptune - Défense 1, 92086 Paris la Défense, registered under the n° 313 041
048 RCS Nanterre, hereafter represented by Andy Archer, its representative,
fully empowered to sign this agreement,

 

(hereafter “MANUGISTICS FRANCE”)

 

On the one hand,

ET,

 

•      Mr. Jean-Claude Walravens, company manager, residing at Clos Manuel n°
11, 1150 Bruxelles (Belgique);

 

(hereafter “Mr. Walravens”)

 

On the other hand,

 

IT
HAS BEEN RECALLED THAT:

 

•    per agreement for undetermined duration 1 December
1999, Mr. Walravens has been hired by MANUGISTICS FRANCE as from 6 December
1999, as “commercial manager”, the agreement
mentioning that the agreement will be governed by Belgian law;

 

•    MANUGISTICS FRANCE
has decided that 31 August 2005 will be the date of immediate termination of
Mr. Walravens’ labour agreement and has started the legal procedure applicable
under the above mentioned legislation; the reasons that lead to this dismissal
have been explained more in detail in a registered letter dated 6 September
2005;

 

•    Per letter remitted
in hand on 12 September 2005, Mr. Walravens has informed MANUGISTICS FRANCE
that, employed by a French company, compensated by this company to carry out
his functions essentially in France and in any event for the account of this
company, their relation could be ruled only by French labour law, the
application of which being a public policy obligation and notably the texts
dealing with terminations of labour agreements;

 

•    Mr. Walravens has
immediately put forwards that he challenged the grounds alleged to justify his
dismissal and has evoked a considerable prejudice which he estimates to be in
the range of 1 million euros;

 

•      per letter dated 14 September 2005, MANUGISTICS FRANCE
has stuck to the grounds of its decision specifying that, following collection
of appropriate information, it would not argue against applicability of French
law to the determination of Mr. Walravens’ rights and sums he is entitled to
inasmuch Mr. Walravens does not challenge the steps already undertaken in view
of his dismissal;

 

4

 

•      per registered letter return receipt requested, dated
21 September 2005, Mr. Walravens brought some answers to the grounds put
forward by MANUGISTICS FRANCE by alleging that having accepted the commercial
management of a company that was generating significant net losses, he has in
less than 6 years, converted it into a model for other areas within the
European MANUGISTICS Group; and that MANUGISTICS FRANCE has generated
significant license revenue under his leadership and guidance; and that
MANUGISTICS signed a deal in the Spring 2005 with a major international
customer thanks to his actions which accounted for a large percentage of
MANUGISTICS’ world-wide software license revenue for that quarter.  Mr.
Walravens further alleges that MANUGISTICS is interfering with his ability to
generate commissions based on potential prospects he believes are in line with
his past performance.  Mr. Walravens specified that failing amicable
settlement, he would go to court to claim payment of the notice period and full
indemnification of the suffered damages;

 

•      during a telephone conversation on September 23, 2005,
MANUGISTICS FRANCE, in short and in order to bring the matter to an end, has
open the door to an amicable solution through the offer to Mr. Walravens of an
indemnity amounting to 4 months of his salary;

 

•      MANUGISTICS FRANCE has been informed, through a
registered letter dated 23 September 2005, that such proposal was rejected and
discussions took place between the parties, the case may be with the assistance
of their lawyers, MANUGISTICS confirming its disagreement with certain of the
claims put forward by Mr. Walravens but wishing to avoid the waste of time, the
costs and uncertainties of a court action and to bring an amicable and final
end to the dispute existing between the parties;

 

•      at the end of the conversations and after mutual
concessions, the parties became reconciled and have agreed upon an amicable settlement
to bring to an end the above described dispute.

 

This
being recalled, the parties agree as follows:

 

ARTICLE
1 By mutual agreement, the parties hereto decide, as
agreed upon under articles 2 and fol. Hereafter, to bring to an amicable and
final end to the dispute existing between them in connection with the
termination of Mr. Walravens’ labour agreement.

 

ARTICLE
2 – Today, MANUGISTICS FRANCE remits to Mr. Walravens:

 

•   a sum of € 66,517.71 corresponding to (a) the
compensation due for the contractual three month notice period, after deducting
tax and social security withholdings, i.e. an amount of € 37,646.55 and (b) the
legal dismissal indemnity, i.e. an amount of € 28,871.16 (vacation pay
entitlements will be governed by the law of the contract);

 

•   a sum of € 445,600, in outright and final
compensation for all the above alleged damages.

 

As a
consequence and in consideration of this remittance for which discharge
is hereby given, Mr. Walravens states that all his rights resulting both from the
contractual relationship which has existed between MANUGISTICS FRANCE and himself and the
termination thereof have been complied with.

 

5

 

ARTICLE
3 Both MANUGISTICS FRANCE and Mr. Walravens expressly state that they
have no further claim against one another in any respect and that all the
disputes derived from the carrying out of the labor contract which has existed
between them and of the termination of this contract are consequently
definitely terminated after the payment by MANUGISTICS FRANCE of the sums
mentioned under article 2 hereinabove.

 

As far as needs be,
Mr. Walravens acknowledges that he has been informed in due time that
MANUGISTICS FRANCE did not intend to ask him to comply with the non competition
obligation mentioned under article 9 of his labor agreement and that,
consequently, he cannot lodge any claim in this respect.

 

ARTICLE
4 Mr. Walravens undertakes to comply with the confidentiality obligation
resulting from the labor agreement between him and MANUGISTICS FRANCE and to
never say or do anything likely to adversely affect MANUGISTICS FRANCE or the
other companies of the Group MANUGISTICS FRANCE is a member of or to do harm to
them in any manner whatsoever.

 

More specifically,
Mr. Walravens agrees to have regard for the strictly confidential nature of the
technical, scientific and/or commercial information he has become acquainted
with in the course of his employment with MANUGISTICS FRANCE and not to divulge
them, under any form, directly or indirectly, to third parties, individuals or
corporate bodies and not to use them for any purpose whatsoever. Within thirty
days from the date hereof, Mr. Walravens shall return to MANUGISTICS FRANCE all
the documents of any nature, manuals, magnetic media and all other objects made
available to him within the scope of his functions, and this, without keeping
copy thereof.

 

Both parties agree to
keep confidential the existence and the contents of this agreement as well as the
negotiations having led to this agreement, except to exercise their respective
rights herein contained or if disclosure is required by applicable law or court
order.

 

ARTICLE
5 – This agreement drawn up after reconciliation of the parties and
mutual concessions, constitutes a settlement as meant by articles 2044 and
following of the French Civil Code and will have, between the parties, the same
value as a final court decision pursuant to said Civil Code.

 

Done in 2
original copies

Paris-la Défense,

 

6

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