Document:

Non-Employee Director Remuneration and Expense Reimbursement Summary

 Exhibit 10.3 
 Non-Employee Director Remuneration 
 and

 Expense Reimbursement Summary 
 1. Cash Compensation 
 a) Annual Retainers 
  

	 	•	 	 A non-employee Chairperson of the Board of Directors will receive an annual Board retainer of $125,000 paid quarterly in advance on
May 1, August 1, November 1, and February 1. 

  

	 	•	 	 Each non-employee member of the Board of Directors other than the non-employee Chairperson will receive an annual Board retainer of $50,000 paid
quarterly in advance on May 1, August 1, November 1, and February 1. 

  

	 	•	 	 The non-employee director who serves as Chairperson of the Audit Committee will receive, in addition to his or her Board retainer, an annual Committee
retainer of $20,000 paid quarterly in advance on May 1, August 1, November 1, and February 1. 

  

	 	•	 	 Each non-employee director who serves as Chairperson of a Board Committee other than the Audit Committee will receive, in addition to his or her Board
retainer, an annual Committee retainer of $10,000 paid quarterly in advance on May 1, August 1, November 1, and February 1. 

  

	 	•	 	 Pursuant to a deferral program effective for calendar years prior to 2010 (the “Prior Deferral Program”), non-employee directors were
permitted to convert all or any portion of their annual Board retainers (but not their Committee retainers) to Common Stock Equivalents (the “Retainer CSEs”). 

  

	 	o	Retainer CSEs are purchased on each date an installment of the annual Board retainer is paid. 

  

	 	o	Any non-employee director who elects to purchase Retainer CSEs will receive a supplemental credit equal to 25% of the portion of the annual Board retainer used to
purchase Retainer CSEs (referred to as the “Match”). 

  

	 	o	The Match may be applied only to the purchase of additional CSEs (“Match CSEs”). 

  

	 	o	The number of Retainer CSEs and Match CSEs to be received is based on the closing price of Novell common stock on the day before the purchase date.

  

	 	o	Retainer CSEs are fully vested at the time of purchase. 

  

	 	o	Match CSEs, unlike Retainer CSEs, are subject to a cliff vesting period of three years from the date of purchase. 

  

	 	o	The Retainer CSEs will be converted into shares of Novell common stock on the earlier to occur of (i) the termination of service as a non-employee director and
(ii) a date prior to the termination of service as a non-employee director specified by the non-employee director (the “Deferral Payment Date”). 

  

	 	o	Vested Match CSEs will be converted into shares of Novell common stock on the termination of service as a non-employee director. 

  
  

	 	•	 	 With respect to calendar years beginning with calendar year 2010, non-employee directors may convert their annual Board retainers to Retainer CSEs
pursuant to the Novell, Inc. 2009 Directors Deferral Plan, a sub-plan of the Novell, Inc. 2009 Omnibus Incentive Plan (the “2009 Deferral Program”). 

  

 Page  1  of  4 

	 	o	Under the 2009 Deferral Program, (i) Retainer CSEs are purchased on each date an installment of the annual Board retainer is paid; (ii) any non-employee
director who elects to purchase Retainer CSEs will receive Match CSEs; (iii) the number of Retainer CSEs and Match CSEs to be received is based on the closing price of Novell common stock on the day before the purchase date; and
(iv) Retainer CSEs are fully vested at the time of purchase. 

  

	 	o	Under the 2009 Deferral Program, Retainer CSEs will be paid out on the earliest to occur of (i) a change of control; (ii) a non-employee director’s
separation from service; or (iii) if elected, the Deferral Payment Date.

  

	 	o	Under the 2009 Deferral Program, Match CSEs become 100% vested on the earliest to occur of (i) the third anniversary of the last date CSEs are purchased with the
Match in the relevant calendar year; (ii) a change of control; (iii) the non-employee director’s retirement; or (iv) the non-employee director’s death.

  

	 	o	The vested Match CSEs are paid to the non-employee director on the earliest to occur of (i) his or her separation from service, (ii) a change of control, or
(iii) the later to occur of the Deferral Payment Date or the date on which the Match CSEs vest.

 b)
Meeting Fees 
  

	 	•	 	 Each non-employee director will receive $1,500 for each Board and Board telephonic meeting he or she attends. 

  

	 	•	 	 Each non-employee director will receive $1,500 for each Committee and Committee telephonic meeting he or she attends as a Committee member.

 2. Equity Compensation 
  

	 	•	 	 Each non-employee director will receive an annual equity award with a value of $130,000 (the “Annual Equity Award”).

  

	 	•	 	 The Annual Equity Award will be granted at the first Compensation Committee meeting following Novell’s Annual Meeting of Stockholders that falls
during an open trading window for Novell’s securities. 

  

	 	•	 	 The Annual Equity Award will be comprised of stock options with a grant date value of $43,000 and either restricted stock units or shares of restricted
stock, as elected by each non-employee director, with a grant date value of $87,000. 

  

	 	•	 	 The stock options and either restricted stock units or shares of restricted stock comprising the Annual Equity Award will vest 50% per year on the
first two anniversaries of the grant date of the Annual Equity Award and will have the following additional terms: 

  

	 	o	Upon the retirement of a non-employee director, there will be 100% acceleration of all unvested stock options, restricted stock units and shares of restricted stock,
and vested stock options will remain exercisable for twelve months following retirement. 

  

	 	o	Upon the disability of a non-employee director, there will be no acceleration of unvested stock options, restricted stock units or unvested restricted stock, but vested
stock options will remain exercisable for twelve months following a disability. 

  

	 	o	Upon the death of a non-employee director, there will be an acceleration of vesting of those stock options, restricted stock units, and shares of restricted stock that
would have vested within twelve months following such death had the non-employee director not died and remained a non-employee director, and vested stock options will remain exercisable for twelve months following the death of a non-employee
director. 

  

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	 	•	 	 New non-employee directors will receive a one-time grant of 50,000 stock options that will vest 50% per year on the first two anniversaries of the
grant date of the award. 

  

	 	•	 	 Pursuant to the 2009 Deferral Program, non-employee directors may defer receipt of the shares of Novell common stock received upon vesting of the
restricted stock units portion of the Annual Equity Award until the earliest to occur of (i) a change of control; (ii) a non-employee director’s separation from service; or (iii) if elected, the Deferral Payment Date.

  

	 	•	 	 Non-employee directors may not sell shares of Novell common stock unless they continue to own an amount of Novell common stock equal to three times
their annual Board retainer. 

  

	 	o	Non-employee Chairperson of the Board of Directors Total Stock Ownership Requirement (“Total SOR”) is $375,000 ($125k x 3) 

  

	 	o	Other non-employee directors Total SOR is $150,000 ($50k x 3) 

  

	 	o	Forms of equity that count towards Total SOR consist of shares that are already owned and held, shares acquired on the open market, shares acquired upon the exercise of
stock options, vested restricted stock units, vested shares of restricted stock, Retainer CSEs, and any vested Match CSEs 

 3.
Reimbursements 
 a) Meetings 
  

	 	•	 	 Novell will provide reimbursement for attendance to all Board and Committee meetings covering the following: 

  

	 	o	first class airfare ticket or equivalent 

  

	 	o	lodging 

  

	 	o	meals 

  

	 	o	ground transportation to and from the meeting 

 b) Conferences 
  

	 	•	 	 Novell will provide reimbursement for attendance to one conference per year covering the following: 

  

	 	o	registration fees 

  

	 	o	first class airfare ticket or equivalent 

  

	 	o	lodging 

  

	 	o	meals 

  

	 	o	ground transportation to and from the conference 

  

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 c) Orientation 
  

	 	•	 	 Novell will provide reimbursement for new non-employee directors for attendance to one third-party orientation program covering the following:

  

	 	o	registration fees 

  

	 	o	first class airfare ticket or equivalent 

  

	 	o	lodging 

  

	 	o	meals 

  

	 	o	ground transportation to and from the orientation program 

  

 Page  4  of  4Offer letter dated October 30, 2006

 Exhibit 10.4 
 October 30, 2006 
 Personal and Confidential 
 Ms. Colleen O’Keefe 
 11 Brittany Place

 Basking Ridge, NJ 07920 
 Dear
Colleen, 
 On behalf of Novell, Inc. (“Novell”), I am pleased to offer you the position of Senior Vice President of Novell, Worldwide
Services. In this position, you will be reporting directly to Ron Hovsepian, President and Chief Executive Officer, and your responsibilities will be those commonly associated with the position of Senior Vice President, Worldwide Services. Your
expected start date with Novell will be mutually agreed to between you and Ron Hovsepian, but in no event will it be later than December 4th, 2006. 
 Your base salary will be no less then $14,583.33 per bi-monthly pay period (less applicable tax withholding), which is $350,000 annualized (less applicable tax withholding). In addition to your base
salary, you will be eligible to participate in Novell’s Annual Bonus Program. Your bonus will be based on the attainment of certain performance goals, which may be determined based on your individual performance, the performance of your group
and/or Novell’s performance. These goals will be established by Novell, and your annualized target bonus will represent a percentage of your annual base salary, which may be up to 60% of your base salary. For Fiscal Year 2007, 50% of your first
year bonus will be guaranteed. 
 You will also receive a one-time sign-on bonus equal to $200,000 (less applicable tax withholding) if you
remain employed by Novell for six months. This sign-on bonus will be paid to you in a lump sum cash payment within the first sixty days of your employment; however, if, at any time within the six month period after the date you commence employment
with Novell, either Novell terminates your employment for cause or you resign from your position with Novell for any reason, you will be required to immediately repay to Novell the entire amount of this sign-on bonus. 
 Upon commencement of your employment with Novell, you will be granted a non-qualified stock option to purchase 200,000 shares of Novell common stock under
one of Novell’s equity compensation plans. These options will vest 25% one year after your commencement date with an additional 2.0833% to vest on each monthly anniversary thereafter. 

 Ms. Colleen O’Keefe 
 October 30, 2006 
 Page 2 
 In addition, upon commencement of your employment with Novell, you will be granted 100,000 restricted stock units under one of Novell’s equity compensation plans. The restricted stock units will vest
one third per year for three years. 
 In addition to your initial stock option grant and restricted stock units, you will be eligible to
participate in Novell’s discretionary Executive Long Term Incentive Equity Plan, which will provide you with the opportunity to receive annual stock option grants to purchase Novell common stock, subject to the approval of Novell’s
Compensation Committee. 
 To facilitate your relocation to Boston from New Jersey, Novell, Inc. will provide you with $150,000 USD. This
reimbursement will be made to you upon your move to Boston. 
 Lastly, in addition to the foregoing benefits, Novell offers an outstanding
benefits package, which we view as an important part of our compensation program. The full range of benefits include: life, medical, dental and disability insurance coverage, four weeks of vacation per year, and 401K plan with company matching
contribution of 4%. You are also eligible to receive financial planning reimbursement (up to a maximum cost of $10,000 USD per year). 
 While
your employment with Novell is for no particular duration and is at-will, meaning that Novell or you may terminate the employment relationship at any time, with or without cause and with or without prior notice, you will be entitled to receive
certain severance benefits if you execute the severance agreement that is attached to this offer letter as Exhibit A (the “Severance Agreement”), experience a termination that is covered by the Severance Agreement and comply with the terms
and conditions of the Severance Agreement. Among the requirements of the Severance Agreement is that you comply with its confidentiality, non-competition and non-solicitation obligations and limitations. This offer is expressly contingent on your
execution of the attached Severance Agreement. 
 Lastly, this offer is expressly contingent on your agreement to the terms, and execution, of
the attached Intellectual Property Agreement (the “Intellectual Property Agreement”), a copy of which is attached as Exhibit B, as well as agreeing to be bound by the terms and conditions of Novell’s Code of Business Ethics and such
other agreements required for employees of Novell. 
 *                            *           
                 *                        
    *                            * 
 The above terms of this offer letter set forth the entire terms and conditions of your offer of employment with Novell and supersede all prior or
contemporaneous agreements, representations or understandings, written or oral, by or between Novell and you concerning the terms and conditions of your employment. This offer letter may only be modified by a written agreement signed by you and
Novell’s Senior Vice President, People. 
  

 
Ms. Colleen O’Keefe 
 October 30, 2006 
 Page 3 
 This offer will remain valid through
November 15, 2006. Please signify acceptance of this offer by signing the “Acceptance and Acknowledgment” at the end of this offer letter. In addition, please signify your acceptance to the terms and conditions of the Severance
Agreement by signing the Severance Agreement attached as Exhibit A and the Intellectual Property Agreement by signing the Intellectual Property Agreement attached as Exhibit B. Return the signed copy of this document, along with the Severance
Agreement and Intellectual Property Agreement, to Novell Human Resources c/o Alan Friedman (at 404 Wyman St., Suite 500, Waltham, MA 02451) in the enclosed pre-addressed envelope, and retain any copies for your files. 
 We look forward to your joining Novell and we are eager to see the results of your contributions to Novell as you offer your considerable talents and
abilities — and hope that we in turn enrich your career and contribute to the fulfillment of your professional goals. If you have questions or wish to discuss this offer, please contact me. 
 Sincerely, 
  
 Alan J. Friedman 
 Senior Vice President, People 

 Ms. Colleen O’Keefe 
 October 30, 2006 
 Page 4 
 Novell substantial and irrevocable damage and monetary damages would be inadequate to compensate Novell and, in addition to any other remedies or rights it may have, Novell shall be entitled to seek an
injunction and all other available equitable relief to enforce the terms of this offer letter. Each provision herein shall be treated as a separate and independent clause, and the unenforceability of any one clause shall in no way impair the
enforceability of any of the other clauses of the offer letter. If any provision of this offer letter shall for any reason be held to be excessively broad as to length of time, scope, range of activities, geographic area or otherwise so as to be
unenforceable at law, such provision(s) shall be reformed and construed by the appropriate judicial body to the fullest extent enforceable, and the remaining provisions of this offer letter will not be affected. 
  

	
	
	  
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