Document:

eh1200957_ex0403.htm

EXHIBIT 4.3

 

 

The CSR plc

 

2011 Executive Incentive Plan

 

 

Adoption date by Shareholders: 30 August 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

 

Contents

 

	
1.

	
Grant of Awards

	
1

	
2.

	
Rights of Participants Prior to Vesting

	
2

	
3.

	
Payment of Awards

	
3

	
4.

	
Lapse of Awards

	
5

	
5.

	
Taxation

	
6

	
6.

	
Cessation of Employment

	
7

	
7.

	
Take-over, Reconstruction, Amalgamation, Winding up, Merger and Demerger of the Company

	
9

	
8.

	
Limits & Restrictions

	
11

	
9.

	
Adjustments and Amendments

	
12

	
10.

	
Shares

	
14

	
11.

	
Administration

	
16

	
12.

	
Definitions

	
18

	
13.

	
Payments in Shares

	
22

 

 

  

  

  

 

	 	
1.

	
Grant of Awards

 

 

	
  

	
1.1

	
The Committee may in its absolute discretion grant Awards to Eligible Employees at any time provided that Awards in the form of Shares or rights to Shares shall not be made in a Close Period.  The Committee shall determine in respect of each grant of Awards:-

 

	
  

	
1.2.1

	
the Date of Grant;

 

	
  

	
1.1.2

	
those Eligible Employees who shall receive an Award;

 

	
  

	
1.1.3

	
the following terms and conditions in respect of each Award:

 

	
  

	
1.1.3.1

	
the Maximum Contribution;

 

	
  

	
1.1.3.2

	
the Performance Requirements applicable to an Award for the Plan Year;

 

	
  

	
1.1.3.3

	
the Holding Period;

 

	
  

	
1.1.3.4

	
whether additional Shares or a payment equivalent to the value of dividends paid on the Shares subject to Awards made in accordance with Rule 13 shall be made to Participants; and

 

	
  

	
1.1.3.5

	
any other terms and conditions applying to each Award.

 

	
  

	
1.3

	
The Committee shall issue to Participants an Annual Incentive Schedule for each Plan Year setting out the Committee’s determinations under Rule 1.1.  Alternatively a Participant may be advised where that information can be accessed or be given the opportunity to obtain the details electronically.

 

	
  

	
1.4

	
The grant of an Award will be subject to compliance with and obtaining any approval or consent required under any applicable regulation or enactment.

 

	
  

	
1.5

	
A Participant may at any time prior to the Vesting of any of his Award renounce the Award by notice in writing to the Company.  The renunciation shall be effective from the date of receipt of such notice by the Company.  No consideration will be paid for the renunciation of the Award.  To the extent that an Award is renounced, it will be treated for all purposes as having never been granted.

 

 

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2.

	
Rights of Participants Prior to Vesting

 

 

	
  

	
2.1

	
A Participant shall have no right to receive a Payment in respect of his Award prior to a Measurement Date.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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3.

	
Payment of Awards

 

 

	
  

	
3.1

	
Subject to Rule 5, Awards shall be capable of Vesting on the Measurement Date set out in the Annual Incentive Schedule for the Plan Year.

 

	
  

	
3.2

	
The Committee will determine as at the Measurement Date the level of satisfaction of the Performance Requirements, the percentage of the Maximum Contribution earned by Participants and therefore the value of their Award.

 

	
  

	
3.3

	
Participants shall be entitled to receive a Payment set out in Rule 3.4 in respect of the value of their Award calculated in accordance with Rule 3.2 as soon as practicable after the announcement of the Company’s results for the relevant Plan Year.

 

	
  

	
3.4

	
The Payment shall be satisfied as follows:

 

	
  

	
3.4.1

	
an Award of conditional rights to Shares under Rule 13 equal to a minimum of 50% of the value of the Award calculated in accordance with Rule 3.2 subject to the Committee’s discretion to increase such percentage; and

 

	
  

	
3.4.2

	
subject to Rules 3.6 and 3.7, the transfer of cash and Shares in accordance with Rule 3.5 equal to a maximum of 50% of the value of the Award calculated in accordance with Rule 3.2 subject to the Committee’s discretion to decrease such percentage;

 

provided that in all circumstances the full value of the Award calculated in accordance with Rule 3.2 is provided as a Payment to the Participant.

 

	
  

	
3.5

	
For the part of the Payment to be satisfied in Shares, the number of Shares to be issued or transferred will be calculated using the Share Value as at the Measurement Date and the Payment to be made in cash will not exceed 100% of the Participant’s base salary for the Plan Year.

 

	
  

	
3.6

	
Where a Director has not satisfied the Minimum Shareholding Requirement at the relevant Measurement Date, any Payment due to him under Rule 3.4.2 shall be satisfied wholly in Shares.

 

	
  

	
3.7

	
Where a Participant is entitled to a Payment in cash in accordance with Rule 3.4.2, he may give notice to the Company (within such period determined by the Committee) for such proportion of the Payment specified by him to be paid in Shares instead of in cash.

 

	
  

	
3.8

	
Where the Participant receives a Payment under Rule 3.4, the Award, excluding an Award made in accordance with Rule 13 shall be immediately cancelled.

 

	
  

	
3.9

	
For the avoidance of doubt, the Plan is intended to and shall be construed and operated in all respects to meet the requirements of the short-term deferral exception from section 409A of the US Internal Revenue Code of 1986, as amended and notwithstanding anything to the contrary contained in the Plan, no Payment (including in cash or Shares) to a US Taxpayer under the Plan may be paid later than 2.5 calendar months after the end of the Taxable Year in which the related 

 

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Vesting occurs (the “Short Term Deferral Period”) and the rules of the Plan shall be interpreted accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

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4.

	
Lapse of Awards

 

 

	
  

	
4.1

	
All subsisting Awards shall lapse on the earliest of the following events:

 

	
  

	
4.1.1

	
when it has been determined by the Committee that the conditions of Rule 3 cannot be satisfied;

 

	
  

	
4.1.2

	
the date on which the Award lapses pursuant to Rule 61 or Rule 72; or

 

	
  

	
4.1.3

	
the date on which the Participant is adjudicated bankrupt or does or attempts or omits to do anything as a result of which he is deprived of the legal or beneficial ownership of the Award; or

 

	
  

	
4.1.4

	
the date on which an order is made for the compulsory winding up of the Company.

 

 

 

 

 

 

 

 

______________________________________

  

1   On cessation of employment.

2   On Take-over, Reconstruction, Amalgamation and Winding up of the Company.

 

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5.

	
Taxation

 

 

	
  

	
5.1

	
The grant of an Award shall be conditional upon the agreement of the Eligible Employee to indemnify his employing Group Company for any Tax Payment for which such Group Company is obliged to account on his behalf in respect of the Award, such agreement to be deemed by the failure of the Eligible Employee to renounce the Award in accordance with Rule 1.4.

 

	
  

	
5.2

	
In a case where a Group Company by virtue of the grant or Vesting of an Award or the making of a Payment shall be obliged to make a Tax Payment, unless the Participant discharges any Tax Payment himself prior to the grant, Vesting of an Award of making of a Payment, the Group Company may withhold such amount, or make some other arrangements it may determine, for example, to sell or withhold Shares, to meet any Tax Payment in respect of such grant, Vesting of an Award or making of a Payment.

 

	
  

	
5.3

	
The Committee may determine that any Award granted under the Plan shall be subject to additional and/or modified terms and conditions relating to the grant of an Award, Vesting of an Award or Payment as may be necessary to comply with or take account of any securities, exchange control or taxation laws, regulations, practice or other laws of any territory which may apply to the relevant Eligible Employee, Participant or Group Company.

 

	
  

	
5.4

	
In exercising its discretion under Rule 5.3 above the Committee may:

 

	
  

	
5.4.1

	
require an Eligible Employee and/or a Participant to make such declarations or take such other action as may be required for the purpose of any securities, exchange control or taxation laws, regulations, practice or other laws of any territory which may be applicable to him at the Date of Grant or Vesting; and

 

	
  

	
5.4.2

	
adopt any supplemental rules or procedures governing the grant of an Award or the Vesting of an Award or Payment as may be required for the purpose of any securities, exchange control or taxation laws, regulations, practice or other laws of any territory which may be applicable to an Eligible Employee or Participant.

 

	
  

	
5.5

	
The Committee may at its discretion require the Participant to pay all or part of the employer’s social security contributions in relation to an Award of Shares under the Plan.

 

 

 

 

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6.

	
Cessation of Employment

 

 

	
  

	
6.1

	
Subject to Rule 6.2, if a Participant resigns from his employment with a Group Company or is given notice of the termination of his employment any Award that has not Vested (including for the avoidance of doubt Awards granted under Rule 13) shall lapse.  Rule 6.5 shall apply to determine when a Participant has ceased employment.

 

	
  

	
6.2

	
If a Participant dies or ceases to be employed by a Group Company by reason of:

 

	
  

	
6.2.1

	
injury, ill health or disability;

 

	
  

	
6.2.2

	
redundancy as determined by the Committee; or

 

	
  

	
6.2.3

	
any other circumstances determined by the Committee;

 

	
  

	
6.2.4

	
the Committee may determine that the Participant’s Awards will not lapse and shall remain in place until the next Measurement Date and Rule 3 shall be applied to determine whether a Payment is made.  The Committee shall determine whether a reduction is applied to the Payment to take account, inter alia, of the proportion of the Plan Year elapsed at the date of cessation of employment and the contribution of the Participant to the Group provided that any such reduction cannot exceed the value of the Award determined in accordance with Rule 3.2 for such Plan Year.

 

	
  

	
6.3

	
It shall be a condition of participation in the Plan that a Participant shall not be entitled to any compensation in the event of cessation, lapse or alteration of any actual or prospective rights under the Plan or under any Award granted thereunder.  No provisions of the Plan form part of any contract of employment between any Group Company and a Participant.

 

	
  

	
6.4

	
Nothing in the Plan or in any document issued pursuant thereto shall confer upon any person any right to continue in the employ of any Group Company or shall affect the right of any Group Company to terminate the employment of any person, or shall impose upon any Group Company or employees of such Group Company, the Committee or their respective servants or agents any liability for the loss of any rights under the Plan which may result if that person’s employment is so terminated (whether such termination is in breach of the relevant terms and conditions of employment or otherwise).  In no circumstances shall any Participant, by reason of ceasing to be employed by any Group Company be entitled to any compensation for any loss of any actual or prospective right or benefit under the Plan which he might otherwise have enjoyed, whether such compensation is claimed by way of damages for wrongful or unfair dismissal or other breach of contract or by way of compensation for loss of office or otherwise.

 

	
  

	
6.5

	
For the purposes of Rule 6, no Participant shall be treated as ceasing to be employed by a Group Company until he ceases to hold office or employment in any Group Company and a Participant (being a woman) who is a director or employee who ceases to be such a director or employee by reason of pregnancy or confinement and who exercises her right to return to work under section 

 

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79 of the Employment Rights Act 1996 shall be treated as not having ceased to hold such an office or employment.

 

	
  

	
6.6

	
Notwithstanding any other provision of the Plan:

 

	
  

	
6.6.1

	
participation in the Plan in one year is no indication that the Participant will participate in any subsequent operation of the Plan;

 

	
  

	
6.6.2

	
the benefit to an employee of participation in the Plan shall not form any part of his remuneration or count as his remuneration for any purpose and shall not be pensionable.

 

 

 

 

 

 

 

 

 

 

 

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7.

	
Take-over, Reconstruction, Amalgamation, Winding up, Merger and Demerger of the Company

 

 

	
  

	
7.1

	
Subject to Rule 7.8, if any company or person acting alone or in concert with another or others obtains Control of the Company (“Control Change”):

 

	
  

	
7.1.1

	
as a result of making a general offer to acquire all the Shares in the Company; or

 

	
  

	
7.1.2

	
as a result of the acquisition of a direct interest in excess of 50% of the Shares in the Company;

 

the Committee on becoming aware thereof shall, as soon as reasonably practicable, notify each Participant.

 

	
  

	
7.2

	
Subject to Rule 7.8, if the Court sanctions a scheme of arrangement or compromise under Section 900 of the Companies Act 2006 which amounts to a Control Change, the Committee on becoming aware thereof shall, as soon as reasonably practicable, notify each Participant.

 

	
  

	
7.3

	
Subject to Rule 7.8, if any company or person becomes bound or entitled to acquire Shares under Sections 979 to 982 of the Companies Act 2006, the Committee on becoming aware thereof shall notify each Participant.

 

	
  

	
7.4

	
Subject to Rule 7.8, on the occurrence of any of the events set out in Rule 7.1, Rule 7.2 or Rule 7.3, the Committee shall determine (a) that the Measurement Date is brought forward to the date of the first of any such event, before applying Rule 3 to determine the Payment to be made; and (b) whether a reduction is applied to the Payment to take account, inter alia, of the proportion of the Plan Year then elapsed and the contribution of the Participant to the Group provided that any such reduction cannot exceed the value of the Award determined in accordance with Rule 3.2 for such Plan Year.  Any Payment shall be made as soon as practicable thereafter.

 

	
  

	
7.5

	
If a voluntary winding up of the Company while solvent is proposed, the Committee shall, as soon as practicable, notify each Participant, and the Committee shall determine (a) that the Measurement Date is brought forward to the date of such event, before applying Rule 3 to determine the Payment to be made; and (b) whether a reduction is applied to the Payment to take account, inter alia, of the proportion of the Plan Year then elapsed and the contribution of the Participant to the Group provided that any such reduction cannot exceed the value of the Award determined in accordance with Rule 3.2 for such Plan Year.  Any Payment shall be made as soon as practicable thereafter.

 

	
  

	
7.6

	
In the event that the Company merges with another company, or any of the businesses of the Group are demerged (whether such merger or demerger is effected by way of sale, distribution or in any other manner) the Committee shall have the discretion whether or not to take any action pursuant to this Rule 7.6 and, if they decide to do so, shall notify each Participant whether any Awards shall Vest and/or adjustments be made to the Awards in such manner and with effect from such date as the Committee shall determine to be appropriate provided that should the merger or 

 

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demerger amount to a Control Change then the Committee shall apply the provisions of Rule 7.4 with the necessary changes.

 

	
  

	
7.7

	
The Committee shall notify Participants as soon as reasonably practicable of any adjustments made pursuant to Rule 7.6 and may call in Annual Incentive Schedules or Award Certificates issued under Rule 13 for endorsement or replacement.

 

	
  

	
7.8

	
In the case of an Internal Reorganisation, the Committee, with the consent of the acquiring company, may decide that the provisions of Rules 7.1, 7.2, 7.3 and 7.4 shall not apply and Awards shall not Vest but shall instead and without the consent of Participant be cancelled and the Awards replaced with awards which are as far as practicable equivalent in value and design.

 

	
  

	
7.9

	
Notwithstanding any other provision of the Rules, where the Committee is aware that an event is likely to occur under Rule 7 in respect of which Shares will be issued or transferred to Participants in circumstances where the conditions for relief under Part 12 of the Corporation Tax Act 2009 may not be satisfied, the Committee may determine that the Shares will be issued or transferred to Participants in accordance with Rule 7, immediately prior to the event taking place.  The Committee will notify Participants if this Rule 7.9 is to apply.

 

 

 

 

 

 

 

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8.

	
Limits & Restrictions

 

 

	
  

	
8.1

	
An Award shall be personal to a Participant and neither the Award nor any rights under the Award may be transferred, assigned, pledged, charged or otherwise disposed of by a Participant to any other person (except in accordance with these Rules) and if a Participant shall do, suffer or permit any such act or thing whereby he would or might be deprived of the legal and/or beneficial ownership of an Award that Award shall lapse forthwith.

 

	
  

	
8.2

	
The Plan shall terminate on the earlier of:

 

	
  

	
8.2.1

	
any date determined by the Committee to be the date of termination of the Plan; and

 

	
  

	
8.2.2

	
the fifth anniversary of the Adoption Date.

 

	
  

	
8.3

	
Following termination of the Plan no further Awards shall be granted, but the subsisting rights and obligations of Participants at that time shall continue in force as if the Plan had not been terminated.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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9.

	
Adjustments and Amendments

 

 

	
  

	
9.1

	
The Committee shall have the power from time to time to make and amend such regulations for the implementation and administration of the Plan in a manner consistent with the Plan as it thinks fit and to make any amendments to these Rules provided that:

 

	
  

	
9.1.1

	
the provisions governing eligibility requirements, equity dilution, share utilisation and individual participation limits and the adjustments that may be made following a rights issue or any other variation of capital cannot be altered to the advantage of Participants without the prior approval of shareholders in general meeting (except for minor amendments to benefit the administration of the Plan, to take account of a change of legislation or to obtain or maintain favourable Tax, exchange control or regulatory treatment for Participants in the Plan or for any Group Company); and

 

	
  

	
9.1.2

	
save that with the exception of amendments required by Rules 5.3, 5.4 and 7.8 no alteration shall be made which would have a material and adverse affect on any subsisting rights of Participants granted prior to the date of the alteration without the prior consent or sanction of the majority of that number of Participants who responded to the notification by the Company of such proposed alteration.  Subject to Rule 9.1.1, the Committee may add one or more sub plans to the Plan relating to shares in any Group Company as may be necessary to:

 

	
  

	
9.1.2.1

	
obtain approval of the Plan (or sub plans) by HM Revenue & Customs as a company share option plan under Schedule 4 to the Income Tax (Earnings & Pensions) Act 2003 or otherwise improve the tax efficiency of the Plan for the Company and/or Participants; or

 

	
  

	
9.1.2.2

	
to take account of local legislative and regulatory treatment for Participants or any Group Company, provided that any such sub plan provides no additional benefits to Participants than those provided by the Plan.

 

	
  

	
9.2

	
If an event occurs which causes the Committee to consider that the Performance Requirements are no longer appropriate, the Committee may substitute, vary or waive the Performance Requirements in such manner (and make such consequential amendments to the Rules) as is reasonable in the circumstances and except in the case of waiver produces a fairer measure of performance and is not materially less difficult to satisfy than the original Performance Requirements but for the relevant event.

 

	
  

	
9.3

	
Any matters pertaining or pursuant to the Plan which are not dealt with by these Rules and any uncertainty or dispute as to the meaning of these Rules shall be determined or resolved by decision of the Committee whose determination shall be final and binding on the Company and all Participants.

 

 

 

 

 

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10.

	
Shares

 

 

	
  

	
10.1

	
In accordance with Rule 3 the Committee can determine that part or all of the Payment in respect of an Award is made in Shares.

 

	
  

	
10.2

	
If there is a variation of the issued share capital of the Company by way of a capitalisation or rights issue, sub-division, consolidation, reduction or otherwise then the number of Shares subject to an Award shall be adjusted in such manner and with effect from such date as the Committee may determine to be appropriate.

 

	
  

	
10.3

	
Where Awards shall be satisfied by the subscription of Shares, the total number of Shares over which such Awards may be granted as determined on any Date of Grant, when added to the number of Shares remaining issuable pursuant to rights to subscribe for Shares granted under the Plan and any other share plan adopted by the Company shall not exceed 10% of the issued share capital of the Company provided that in respect of Awards granted to executives of the Company under any executive share plan that limit shall be 5% of the number of shares in issue on the relevant Date of Grant from time to time after issue or such other applicable dilution limit authorised by shareholders of the number of Shares in issue on the relevant Date of Grant.  For the purposes of Rule 10.3 there shall be ignored Awards granted under the Plan or awards under any other share plan which have lapsed, become void, been cancelled or which otherwise become incapable of Vesting, release or exercise.

 

	
  

	
10.4

	
Subject to Rule 10.5 below, any Shares to be issued pursuant to a Payment shall be allotted and issued, and any Shares to be transferred shall be transferred to the relevant Participant or a nominee selected by the Participant not later than 30 days after the date of Payment.  Such Shares shall rank pari passu in all respects with other Shares of the same class save that the Participant shall have no entitlement in relation to rights attaching to the Shares until the date of such allotment or transfer.  Shares to be allotted shall not rank for any dividend or other distribution to be paid by reference to a record date before the date of allotment.

 

	
  

	
10.5

	
Any allotment and issue or transfer of Shares pursuant to this Plan shall be subject to such consents (if any) of HM Treasury and/or other authorities as may from time to time be required.

 

	
  

	
10.6

	
The Company shall apply to the relevant Exchange on which the Shares are listed for Shares issued pursuant to Vesting to be admitted to the Official List or equivalent on or as soon as practicable after allotment.

 

	
  

	
10.7

	
Payments may be satisfied by the subscription of Shares and/or the transfer of Shares held by the Company or the Trustees or any combination thereof.  The Committee may determine which method or combination thereof shall be used to satisfy an Award on Vesting.

 

	
  

	
10.8

	
Shares that are issued may not be subscribed for at less than their nominal value.

 

	
  

	
10.9

	
The Company shall:

 

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10.9.1

	
when necessary keep available for issue sufficient authorised and unissued Shares to satisfy all rights to subscribe for Shares from time to time subsisting under the Plan, taking account of any other obligations of the Company to allot and issue Shares; and/or

 

	
  

	
10.9.2

	
ensure when necessary that it is in a position to satisfy or procure the satisfaction of all rights to acquire Shares from time to time subsisting under the Plan, taking account of other obligations of the Company in relation to the provision of Shares.

 

	 	
10.10

	
The Trustees3 may at the request of the Committee determine in their discretion to undertake the responsibility of satisfying the Vesting of an Award on behalf of the Company.

 

 

 

 

 

 

 

_______________________

 

3   See definition on page 18

 

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11.

	
Administration

 

 

	
 

  

	
11.1

	
Any notice or other communication in connection with the Plan will be in writing and may be given:

 

	
  

	
11.1.1

	
by personal delivery; or

 

	
  

	
11.1.2

	
by sending it by post:

 

	
  

	
11.1.2.1

	
in the case of a Company, to its registered office addressed to the Company Secretary (or other address that it notifies in writing); and

 

	
  

	
11.1.2.2

	
in the case of an Eligible Employee or Participant, to his normal place of work or at his last known address; or

 

	
  

	
11.2

	
by sending it by facsimile, email or any form of electronic transfer acceptable to the Committee:

 

	
  

	
11.2.1.1

	
in the case of a Company to the facsimile number, email address or other number or address that the Company notifies; and

 

	
  

	
11.2.1.2

	
in the case of an Eligible Employee or Participant to the individual’s workplace facsimile number or email address or his last known facsimile number or email address.

 

	
  

	
11.3

	
Any notice under Rule 11.1 will be given:

 

	
  

	
11.3.1

	
if delivered, at the time of delivery;

 

	
  

	
11.3.2

	
if posted, at 10:00am on the second business day after it was put into the post with a recognised mail carrier; or

 

	
  

	
11.3.3

	
if sent by facsimile, email or any other form of electronic communication, at the time of despatch;

 

	
  

	
11.4

	
In proving service of notice it will be sufficient to prove that delivery was made or that the envelope containing it was properly addressed, prepaid and posted or that the facsimile message, email or other form of electronic communication was properly addressed and despatched as appropriate.

 

	
  

	
11.5

	
Participation in the Plan shall not entitle a Participant to receive copies of any notice or other document sent by the Company to its shareholders.

 

	
  

	
11.6

	
The Company shall bear the costs of establishing and administering the Plan.

 

	
  

	
11.7

	
The Company shall maintain or cause to be maintained all necessary accounts and records relating to the Plan.

 

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11.8

	
The Rules and the operation of the Plan shall be governed and construed in accordance with English Law.

 

	
  

	
11.9

	
All Eligible Employees agree as a condition of their participation in the Plan that any personal data in relation to them may be held by a Group Company and/or passed on to a third party broker, registrar, scheme administrator and/or future purchaser of the Company for all purposes relating to the operation or administration of the Plan, including to countries or territories outside the European Economic Area.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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12.

	
Definitions

 

	
  

	
12.1

	
In these Rules the following words and expressions have the following meanings:

 

	
“Adoption Date”

	
30 August 2011.

	
“Annual Incentive Schedule”

	
the document evidencing an Award and issued for each Plan Year setting out the Committee’s determinations under Rule 1.1.

	
“Award”

	
a conditional entitlement to receive a Payment under the Plan.

	
“Close Period”

	
such time as Eligible Employees of the Company are prohibited from dealing in Shares, for whatever reason, in accordance with the Model Code contained in the Listing Rules of the Financial Services Authority (as replaced, amended or re-enacted from time to time) and/or such code as the Company may have established from time to time or such other statutory, regulatory or other prohibition from dealing in Shares or rights over Shares.

	
“Committee”

	
the Remuneration Committee of the Company.

	
“Company”

	
CSR plc registered number 04187346.

	
“Control”

	
control within the meaning of Section 995 Income Tax Act 2007 (and “Controlled” shall be construed accordingly).

	
“Date of Grant”

	
the date on which an Award is granted under Rule 1.

	
“Director”

	
any executive director of the Company.

	
“Eligible Employee”

	
any employee of a Group Company.

	
“Exchange”

	
any recognised exchange on which the Company’s Shares are listed from time to time.

	
“Financial Year”

	
the financial year of the Company from time to time.

	
“Group”

	
the Company, any “Subsidiary” of the Company, any “Holding Company” of the Company and any Subsidiary of any such Holding Company (as such terms are defined in section 1159 and 1261(1) respectively of the Companies Act 2006) and the term “Group Company” shall be construed accordingly.

	
“Holding Period”

	
the period of time set by the Committee in accordance with Rule 1.1 starting at the end of a Plan Year at the end of which part or the entire Award is capable of Vesting.

	
“Internal Reorganisation”

	
means any offer, compromise or arrangement which in the reasonable opinion of the Committee, having regard to the shareholdings in the 

 

 

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	 	 Company and any acquiring company before and after the offer, compromise or arrangement and/or the consideration given for the acquisition of the shares and/or any other matter which it considers relevant, is in the nature of an internal reorganisation or reconstruction of the Company.
	
“Maximum Contribution”

	
the maximum contribution set by the Committee in its discretion in accordance with Rule 1.1 expressed as a percentage of the relevant Participant’s base salary which sets the maximum value of the Award granted in respect of any Plan Year provided that the maximum contribution cannot exceed 250% of the relevant Participant’s base salary.

	
“Measurement Date”

	
a date set by the Committee in accordance with the Rules when the  Committee shall make the determinations set out in Rule 3 and which shall normally fall at the end of the Plan Year.

	
“Minimum Shareholding Requirement”

	
the minimum number of Shares to be acquired and held by each Director as determined by the Committee from time to time.

	
“Participant”

	
an Eligible Employee who has been granted and still has a subsisting Award. Reference to a Participant shall include, where the context so admits or requires, his personal representatives.

	
“Payment”

	
a transfer or issue of Shares or conditional Shares or conditional rights to Shares, cash or other assets in satisfaction of the value of a Vested Award.

	
“Performance Requirements”

	
such terms and conditions set by the Committee under Rule 1.1 to determine the value of the Award at the Measurement Date in accordance with Rule 3.2.

	
“Plan”

	
The CSR plc 2011 Executive Incentive Plan.

	
“Plan Year”

	
a Financial Year of the Company or such other period set by the Committee under Rule 1.1.

	
“Rules”

	
these rules and any schedules hereto as amended from time to time.

	
“Schedule”

	
any schedule to the Rules.

 

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“Shares”

	
ordinary shares in the capital of the Company.

	
“Share Value”

	
the average mid-market price of a Share for the period of 30 days prior to the Measurement Date.

	
“Tax”

	
includes any present or future tax, levy, impost, duty, charge, fee, deduction or withholding of any nature, made by any competent authority and interest or penalties in respect thereof.

	
“Taxable Year”

	
the 12 month period in respect of which the Participant is obliged to pay US Tax or, if it would result in a longer period for the payment to be made, the 12 month period in respect of which the Participants’ employing company is obliged to pay tax.

	
“Tax Payment”

	
an amount of Tax paid or payable by the Participant or the Group Company where the liability for such Tax is the Participant’s in respect of the grant or Vesting of an Award or Payment.

	
“Trust”

	
any employee benefit trust which falls within section 86 of the UK Inheritance Tax Act 1984 and “Trustees” shall be construed accordingly.

	
“US Taxpayer”

	
a person who is subject to taxation under the tax rules of the United States of America.

	
“Vest”

	
shall mean the point at which Participants are entitled to Vesting of their Awards and/or a Payment in accordance with Rules 3, 6.2 or 7 (and “Vesting “and “Vested” shall be construed accordingly).

 

	
  

	
12.2

	
Where the context so admits or requires words importing the singular shall include the plural and vice versa and words importing the masculine shall include the feminine and neuter.

 

	
  

	
12.3

	
Any reference to a statute or a statutory provision shall be construed as if it referred also to that statute or provision as the same may from time to time be consolidated, replaced, amended or re-enacted and to any related statutory instrument or other subordinate legislation in force from time to time.

 

	
  

	
12.4

	
Wherever the Rules refer to the Committee having the ability to determine, decide or change matters howsoever this shall mean that the Committee shall be entitled to do so in its absolute and unfettered discretion and its determination shall be final and binding.  No person shall have any right to challenge, dispute or appeal whatsoever against the Committee’s determination, decision or change howsoever made.

 

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12.5

	
Headings, notes and footnotes to these Rules are included for convenience only and shall not affect the interpretation or construction of these Rules.

 

	
  

	
12.6

	
Reference to a “company” shall be construed so as to include any company, corporation or other body corporate, wherever and however incorporated or established.

 

	
  

	
12.7

	
References to a “person” shall be construed so as to include any individual, firm, company, government, state or agency of a state, local or municipal authority or government body or any joint venture, association or partnership (whether or not having a separate legal personality).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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13.

	
Payments in Shares

 

 

	
  

	
13.1

	
Where a Payment will be made in the form of conditional rights to Shares for the purpose of this Rule 13 the definition of Award shall apply to such conditional rights to Shares and the following Rules of the Plan with the amendments set out shall apply to an Award granted by the Committee in accordance with this Rule 13:

 

	
  

	
13.2

	
Rule 1.1;

 

	
  

	
13.3

	
Rule 1.2 as amended to the following:-

 

“The Committee shall issue Participants an award certificate for each Award (in such form as the Committee determines) setting out the Committee’s determinations under Rule 1.1 and stating whether the Award is in the form of a contingent right to acquire shares or an option with a nil or nominal cost exercise price.  Alternatively a Participant may be advised where that information can be accessed or be given the opportunity to obtain the details electronically.”

 

	
  

	
13.4

	
Rule 1.3

 

	
  

	
13.5

	
Rule 1.4;

 

	
  

	
13.6

	
Rule 2 as amended to the following:-

 

“A Participant shall have no right to receive dividends on Shares or vote the Shares subject to his Award prior to Vesting.”

 

	
  

	
13.7

	
Rule 4, as amended to include the following as Rule 4.1.5:-

 

“Where an Award is in the form of an option with a nil or nominal cost exercise price the tenth anniversary of the date on which the option is granted to the Participant.”

 

	
  

	
13.8

	
Rule 5;

 

	
  

	
13.9

	
Rule 6 with Rule 6.2.4 amended to the following:-

 

“the Committee may determine that the Participant’s Awards will immediately Vest and any Award in the form of an option with a nil or nominal cost exercise price shall be exercisable for such period determined by the Committee following cessation of employment.”

 

	 	
13.10

	
Rule 7 with Rule 7.4 amended to the following:-

 

“Subject to Rule 7.8, on the occurrence of any of the events set out in Rule 7.1, Rule 7.2 or Rule 7.3, all Awards shall immediately Vest in full and any Award in the form of an option with a nil or nominal cost exercise price shall be exercisable for such period determined by the Committee following the date of occurrence of the event.”

 

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13.11

	
And Rule 7,5 amended to the following;-

 

“If a voluntary winding up of the Company while solvent is proposed, all Awards shall immediately Vest in full and any Award in the form of an option with a nil or nominal cost exercise price shall be exercisable for such period determined by the Committee.”

 

	 	
13.12

	
Rule 8;

 

	 	
13.13

	
Rule 9;

 

	 	
13.14

	
Rule 10;

 

	 	
13.15

	
Rule 11 and

 

	 	
13.16

	
Rule 12.

 

 

 

 

 

 

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pwc.com

 

This document has been prepared for the intended recipients only.  To the extent permitted by law, PricewaterhouseCoopers LLP does not accept or assume any liability, responsibility or duty to care for any use of or reliance on this document by anyone other than (i) the intended recipient to the extent agreed in the relevant contract for the matter to which this document relates (if any), or (ii) as expressly agreed by PricewaterhouseCoopers LLP at its sole discretion in writing in advance.

 

©2010 PricewaterhouseCoopers LLP.  All rights reserved.  In this document “PwC” refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) which is a member firm of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.JDAS - 12.31.2011 - Exhibit 10.27

Exhibit 10.27

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (“Agreement”) is made effective as of October 8, 2009 (“Effective Date”), by and between JDA Software Group, Inc., a Delaware corporation (“Company”) and G. Michael Bridge (“Executive”) (either party individually, a “Party”; collectively, the “Parties”).

WHEREAS, Company desires to retain the services of Executive as Senior Vice President and General Counsel; and

WHEREAS, the Parties desire to enter into this Agreement to set forth the terms and conditions of Executive's employment by Company and to address certain matters related to Executive's employment with Company.

NOW, THEREFORE, in consideration of the foregoing and the mutual provisions contained herein, and for other good and valuable consideration, the Parties hereto agree as follows:

1.     Employment. Company hereby employs Executive, and Executive hereby accepts such employment, upon the terms and conditions set forth herein.

2.     Duties.

2.1     Position. Executive is employed as Senior Vice President and General Counsel and shall have the duties and responsibilities assigned by Company's Chief Executive Officer (“CEO”), as may be reasonably assigned from time to time. Executive shall perform faithfully and diligently all duties assigned to Executive. Company reserves the right to modify Executive's position and duties at any time in its sole and absolute discretion, provided that the duties assigned are consistent with the position of Senior Vice President and General Counsel or are otherwise agreed upon with Executive.

2.2     Standard of Conduct/Full-time. During the term of this Agreement, Executive will act loyally and in good faith to discharge the duties of Senior Vice President and General Counsel, and will abide by all policies and decisions made by Company, as well as all applicable federal, state and local laws, regulations or ordinances. Executive shall devote Executive's full business time and efforts to the performance of Executive's assigned duties for Company, and may not engage in other paid service unless Executive notifies the CEO in advance of Executive's intent to engage in other paid work and receives the CEO's express written consent to do so.

2.3     Work Location. Executive's principal place of work shall be located in Scottsdale, Arizona or such other location as the parties may agree upon from time to time.

3.     At‐Will Employment.  Executive's employment with the Company is at-will and not for any specified period and may be terminated at any time, with or without Cause (as defined below) or advance notice, by either Executive or the Company subject to the provisions regarding termination set forth below in Section 7.  Any change to the at-will employment relationship must be by specific, written agreement signed by Executive and the Company, and must be approved by CEO and the Company's Board of Directors (the “Board”).  Nothing in this Agreement is intended to or should be construed to contradict, modify or alter this at‐will relationship  

4.     Compensation.

4.1     Base Salary. As compensation for Executive's performance of Executive's duties hereunder, Company shall pay to Executive a salary of $237,048 per year, payable in equal monthly installments and in accordance with the normal payroll practices of Company, less required deductions for state and federal withholding tax, social security and all other employment taxes and authorized payroll deductions.

4.2    Equity. Subject to approval by the Board, Company will from time to time grant to Executive awards with respect to Company's common stock (the “Equity Awards”). The Equity Awards will be subject to the 

terms and conditions of Company's 2005 Performance Incentive Plan, or any other subsequent employee equity plan approved in the future by the Board and the Company's shareholders, as designated by the Board (the “Plan”).  The Equity Awards will also be subject to the terms and conditions contained in the applicable forms of award agreement adopted by the Board and certain vesting acceleration provisions described in this Agreement.

4.3     Incentive Compensation. In addition, Executive will also be eligible to receive incentive compensation subject to the terms and conditions contained in the Executive Bonus Plan, which is approved by the Board and is subject to amendment from time to time by the Board in its sole and absolute discretion (a “Bonus”). Unless otherwise provided herein, the payment of any Bonus pursuant to this Section 4.3 shall be made in accordance with the normal payroll practices of Company, less required deductions for state and federal withholding tax, social security and all other employment taxes and authorized payroll deductions.

4.4     Performance and Salary Review. The Board will periodically review Executive's performance on no less than an annual basis. Adjustments to salary or other compensation, if any, will be made by the Board in its sole and absolute discretion.

5.     Customary Fringe Benefits and Facilities. Executive will be eligible for all customary and usual fringe benefits generally available to executives of Company subject to the terms and conditions of Company's benefit plan documents. Company reserves the right to change or eliminate the fringe benefits on a prospective basis, at any time, effective upon notice to Executive; provided, however, that during the period of employment under this Agreement, Executive and his spouse and eligible dependents shall be entitled to receive all benefits of employment generally available to other members of Company's management and those benefits for which key executives are or shall become eligible, when and as Executive becomes eligible therefore, including, without limitation, group health, life and disability insurance benefits and participation in Company's 401(k) plan.

6.     Business Expenses. Executive will be reimbursed for all reasonable, out-of pocket business expenses incurred in the performance of Executive's duties on behalf of Company. To obtain reimbursement, expenses must be submitted promptly with appropriate supporting documentation in accordance with Company's policies.  Any reimbursement Executive is entitled to receive shall (a) be paid no later than the last day of Executive's tax year following the tax year in which the expense was incurred, (b) not be affected by any other expenses that are eligible for reimbursement in any tax year and (c) not be subject to liquidation or exchange for another benefit.

7.     Termination of Executive's Employment.

7.1    Termination for Cause or Disability by Company; Death. Company may terminate Executive's employment immediately at any time for Cause or following Executive's Disability (as defined below).  Executive's employment shall terminate automatically upon Executive's death.  For purposes of this Agreement, “Cause” is defined as: (a) theft or material dishonesty relating to the Company or its business, intentional falsification of any employment or Company records; or improper disclosure of Company's confidential or proprietary information; (b) Executive's conviction (including any plea of guilty or nolo contendere) for any criminal act that materially impairs his ability to perform his duties for Company; (c) willful misconduct or breach of fiduciary duty for personal profit by Executive, (d) Executive's material failure to abide by the Company's code of conduct or code of ethics policies resulting in demonstrable injury to the Company or its reputation, or (e) a material breach of this Agreement by Executive which is not cured within thirty (30) days of receipt by Executive of reasonably detailed written notice from Company.  For purposes of this Agreement, “Disability” shall have the meaning assigned to it in the group long term disability insurance policy maintained by the Company for the benefit of its employees. In the absence of such a policy, “Disability” means that, as a result of Executive's mental or physical illness, Executive is unable to perform (with or without reasonable accommodation in accordance with the Americans with Disabilities Act) the duties of Executive's position pursuant to this Agreement for a continuous period of three (3) months. In the event Executive's employment is terminated in accordance with this Section 7.1, Executive (or his estate or designated beneficiaries) shall be entitled to receive only unpaid Base Salary then in effect, prorated to the date of termination, together with any amounts or benefits to which Executive is entitled pursuant to Section 5 or 6 hereof.  All other Company obligations to Executive pursuant to this Agreement will become automatically terminated and completely extinguished. For purposes of clarity, except as specifically set forth in this Section 7.1, Executive will not be entitled to receive the Severance Benefits 

described in Section 7.2, below.

7.2     Termination Without Cause by Company. Company may terminate Executive's employment under this Agreement without Cause at any time on sixty (60) days' advance written notice to Executive. Upon termination without Cause, Executive will receive the unpaid Base Salary then in effect, prorated to the effective date of termination (the “Termination Date”), together with any amounts or benefits due to Executive upon termination pursuant to the plans or policies described in Section 5, and for reimbursement of business expenses incurred by Executive prior to termination to the extent provided in Section 6.  In addition, the Company shall (X) pay a lump sum on the forty-fifth (45th) day following such termination in an amount equal to (i) his Base Salary for twelve (12) months from the Termination Date plus (ii) one year's target Bonus pursuant to Section 4.3 of this Agreement for the calendar year during which the termination occurs, calculated based on the Bonus that would be paid to Executive if he had not been terminated and if all performance based milestones were achieved at the 100% level by both Company and the Executive, such Bonus to be, solely for the purpose of defining Severance Benefits, not less than $200,000; (Y) cause the immediate acceleration of the vesting of all of Executive's outstanding earned-but-unvested Equity Awards; and (Z) in the event that Executive timely elects to obtain continued group health insurance coverage for himself and his family under COBRA following termination of employment under this Section 7.2, pay the premiums for such coverage through the earlier of (i) the date that is eighteen (18) months following the Termination Date, or (ii) the first date on which Executive becomes eligible for other group health insurance coverage pursuant to Executive's subsequent employment (such amounts, accelerated vesting and insurance coverage, together with any amounts to which Executive is entitled pursuant to Sections 5 or 6 hereof as of the Termination Date, shall be referred to herein as the “Severance Benefits”), provided that (A) Executive executes a full general release, releasing all claims, known or unknown, that Executive may have against Company arising out of or any way related to this Agreement or Executive's employment or termination of employment with Company and such release has become effective in accordance with its terms prior to the forty-fifth (45th) day following such termination, in substantially the form attached hereto as Exhibit A, or in another substantially similar form that is acceptable to Company in its sole discretion, and (B) the Severance Benefits shall be subject to Section 7.6 below.  For purposes of this agreement, an “earned-but-unvested Equity Award” means an Equity Award or any portion thereof that remains subject to a substantial risk of forfeiture until both (i) one or more applicable corporate financial or other business performance goals have been satisfied and (ii) Executive's service with the Company has continued through a specified date, and with respect to  such Equity Award the condition specified in clause (i) of this sentence has been satisfied but the condition specified in clause (ii) of this sentence has not been satisfied.  All other Company obligations to Executive will be automatically terminated and completely extinguished upon termination of employment.  The provisions of this Section 7.2 shall not apply to termination of Executive's employment by reason of death or Disability.  

7.3    Termination for Good Reason by Executive. Executive may terminate Executive's employment under this Agreement for Good Reason (as defined below) at any time on five (5) days' advance written notice to Company given within one hundred eighty (180) days following the initial existence of a condition constituting Good Reason.  In the event of termination for Good Reason, Executive will receive the unpaid Base Salary then in effect, prorated to the Termination Date.  In addition, Executive will be entitled to receive the Severance Benefits described in Section 7.2, above, provided that Executive complies with the conditions to receiving the Severance Benefits described in Sections 7.2(A) and 7.2(B) above. All other Company obligations to Executive will be automatically terminated and completely extinguished upon termination of employment.  For purposes of this Agreement, “Good Reason” is defined as the occurrence and continuation of any of the following conditions, provided that Executive has delivered written notice to the Company of such condition within ninety (90) days after its initial existence and the Company has failed to cure such condition within thirty (30) days following such written notice:

(a) a material, adverse change in Executive's authority, responsibilities or duties (a material, adverse change shall be deemed to occur if Executive no longer serves as Senior Vice President and General Counsel (who shall be the most senior legal counsel) of a publicly-traded company reporting directly to the Chief Executive Officer); 

(b) the relocation of Executive's work place for Company, over Executive's written objection, to a location more than thirty (30) miles from Scottsdale, Arizona;

(c) a failure to pay, or any material reduction of, Executive's Base Salary or Executive's Bonus without Executive's written consent (subject to applicable performance requirements with respect to the actual amount of Bonus earned by Executive); or

(d) any material breach of this Agreement by Company that is not cured within thirty (30) days of Company's receipt of written notice from Executive specifying the material breach of this Agreement.

7.4     Voluntary Resignation by Executive. Executive may voluntarily resign Executive's position with Company for any reason, at any time after the Effective Date, on five (5) days' advance written notice.  In the event of Executive's resignation, Executive will be entitled to receive only the Base Salary up through the end of the five-day notice period together with any amounts or benefits due upon termination to which Executive is entitled pursuant to Section 5, and for reimbursement of business expenses incurred prior to termination to the extent provided in Section 6.  All other Company obligations to Executive pursuant to this Agreement will become automatically terminated and completely extinguished upon termination of employment.  For purposes of clarity, except as specifically set forth herein, Executive will not be entitled to receive any Severance Benefits described in Section 7.2, above.  The provisions of this Section 7.4 shall not apply to Executive's resignation for Good Reason.

7.5    Mandatory Reduction of Payments in Certain Events.

(a)    Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Company to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (the “Excise Tax”), then, prior to the making of any Payment to Executive, a calculation shall be made comparing (i) the net benefit to Executive of the Payment after payment of the Excise Tax, to (ii) the net benefit to Executive if the Payment had been limited to the extent necessary to avoid being subject to the Excise Tax.  If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payment shall be limited to the extent necessary to avoid being subject to the Excise Tax (the “Reduced Amount”).  The reduction of the Payments due hereunder, if applicable, shall be made in such a manner as to maximize the economic present value of all Payments actually made to Executive, determined by the Determination Firm as defined in Section 7.5(b) below.

(b)    The determination of whether an Excise Tax would be imposed, the amount of such Excise Tax, and the calculation of the amounts referred to Section 7.5(a) above shall be made by an independent, nationally recognized accounting firm or compensation consulting firm mutually acceptable to the Company and Executive (the “Determination Firm”) which shall provide detailed supporting calculations.  Any determination by the Determination Firm shall be paid for by the Company and shall be binding upon the Company and Executive.
            
(c)    In the event that the provisions of Internal Revenue Code Section 280G and 4999 or any successor provisions are repealed without succession, this Section 7.5 shall be of no further force or effect.

7.6     Forfeiture of Severance Benefits.  The right of Executive to receive or to retain Severance Benefits pursuant to Section 7.2 or Section 7.3 shall be subject to Executive's continued compliance with the Covenants (as defined in Section 12).  In the event that Executive breaches any of the Covenants, the Company shall have the right to (a) terminate any further provision of Severance Benefits not yet paid or provided, (b) seek reimbursement from Executive for any and all such Severance Benefits previously paid or provided to Executive, (c) recover from Executive all shares of stock of the Company the vesting of which was accelerated by reason of the Severance Benefits (or the proceeds therefrom, reduced by any exercise or purchase price paid to acquire such shares), and (d) immediately cancel all Equity Awards the vesting of which was accelerated by reason of the Severance Benefits.

8.     No Conflict of Interest. During the term of Executive's employment with Company, Executive must not engage in any work, paid or unpaid, that creates an actual or potential conflict of interest with Company. If the Board reasonably believes such a conflict exists during the term of this Agreement, the Board may ask Executive to choose to discontinue the other work or resign employment with Company.

9.    Post-Termination Non-Competition.

9.1     Consideration For Promise To Refrain From Competing.  Executive agrees that Executive's services are special and unique, that Company's disclosure of confidential, proprietary information and specialized training and knowledge to Executive, and that Executive's level of compensation and benefits are partly in consideration of and conditioned upon Executive not competing with Company. Executive acknowledges that such consideration is adequate for Executive's promises contained within this Section 9.

9.2     Promise To Refrain From Competing. Executive understands Company's need for Executive's promise not to compete with Company is based on the following: (a) Company has expended, and will continue to expend, substantial time, money and effort in developing its proprietary information; (b) Executive will in the course of Executive's employment develop, be personally entrusted with and exposed to Company's proprietary information; (c) both during and after the term of Executive's employment, Company will be engaged in the highly competitive retail demand chain software industry; (d) Company provides products and services nationally and internationally; and (e) Company will suffer great loss and irreparable harm if Executive were to enter into competition with Company. Therefore, in exchange for the consideration described in Section 9.1 above, Executive agrees that for the period of nine (9) months following the date Executive ceases to render services to Company (the “Covenant Period”), Executive will not either directly or indirectly, whether as an owner, director, officer, manager, consultant, agent or employee: (i) work for a competitor of Company, which is defined to include those entities or persons in the business of developing, marketing, selling and supporting software designed for businesses in the retail and consumer packaged goods markets or in the business of helping companies synchronize their inventory decisions with advanced supply chain, inventory management and data mining solutions, in any country in which Company does business (the “Restricted Business”) or (ii) make or hold during the Covenant Period any investment in any Restricted Business, whether such investment be by way of loan, purchase of stock or otherwise, provided that there shall be excluded from the foregoing the ownership of not more than 1% of the listed or traded stock of any publicly held corporation. For purposes of this Section 9, the term “Company” shall mean and include Company, any subsidiary or affiliate of Company, any successor to the business of Company (by merger, consolidation, sale of assets or stock or otherwise) and any other corporation or entity of which Executive may serve as a director, officer or employee at the request of Company or any successor of Company.

9.3     Reasonableness of Restrictions. Executive represents and agrees that the restrictions on competition, as to time, geographic area, and scope of activity, required by this Section 9 are reasonable, do not impose a greater restraint than is necessary to protect the goodwill and business interests of Company, and are not unduly burdensome to Executive. Executive expressly acknowledges that Company competes on an international basis and that the geographical scope of these limitations is reasonable and necessary for the protection of Company's trade secrets and other confidential and proprietary information. Executive further agrees that these restrictions allow Executive an adequate number and variety of employment alternatives, based on Executive's varied skills and abilities. Executive represents that Executive is willing and able to compete in other employment not prohibited by this Agreement.

9.4    Reformation if Necessary. In the event a court of competent jurisdiction determines that the geographic area, duration, or scope of activity of any restriction under this Section 9 and its subsections is unenforceable, the restrictions under this section and its subsections shall not be terminated but shall be reformed and modified to the extent required to render them valid and enforceable. Executive further agrees that the court may reform this Agreement to extend the Covenant Period by an amount of time equal to any period in which Executive is in breach of this covenant.

10.    Confidentiality and Proprietary Rights. Executive has read and executed, and agrees to abide by Company's Employee Innovations and Proprietary Rights Assignment Agreement (the “Proprietary Rights Agreement”), which is incorporated herein by reference.  

11.    Nonsolicitation.

11.1    Nonsolicitation of Customers or Prospects. Executive acknowledges that information about Company's customers is confidential and constitutes trade secrets. Accordingly, Executive agrees that during the term 

of this Agreement and the Covenant Period, Executive will not, either directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage Company's relationship with any of its customers or customer prospects by soliciting or encouraging others to solicit any of them for the purpose of diverting or taking away business from Company.

11.2    Nonsolicitation of Company's Employees. Executive agrees that during the term of this Agreement and the Covenant Period, Executive will not, either directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage Company's business by soliciting, encouraging, hiring or attempting to hire any of Company's employees or causing others to solicit or encourage any of Company's employees to discontinue their employment with Company.

11.3    Conflicts.  To the extent any terms or provisions of this Section 11 conflict with any terms or provisions set forth in the Proprietary Rights Agreement, the terms and provisions of this Section 11 shall control.

12.    Injunctive Relief. Executive acknowledges that Executive's breach of the covenants contained in Sections 9-11 (collectively “Covenants”) would cause irreparable injury to Company and agrees that in the event of any such breach, Company shall, in addition to the action it is authorized to take pursuant to Section 7.6, be entitled to seek temporary, preliminary and permanent injunctive relief without the necessity of proving actual damages or posting any bond or other security.

13.    Agreement to Mediate and Arbitrate. In the event a dispute arises in connection with this Agreement, the Company and Executive agree to submit the dispute to non-binding mediation, with the mediator to be selected and compensated by the Company.  In the event a resolution is not reached through mediation, then, to the fullest extent permitted by law, Executive and Company agree to arbitrate any controversy, claim or dispute between them arising out of or in any way related to this Agreement, the employment relationship between Company and Executive and any disputes upon termination of employment, including but not limited to breach of contract, tort, discrimination, harassment, wrongful termination, demotion, discipline, failure to accommodate, family and medical leave, compensation or benefits claims, constitutional claims; and any claims for violation of any local, state or federal law, statute, regulation or ordinance or common law. Claims for breach of Company's Employee Innovations and Proprietary Rights Agreement, workers' compensation, unemployment insurance benefits and Company's right to obtain injunctive relief pursuant to Section 12 above are excluded. For the purpose of this agreement to arbitrate, references to “Company” include all parent, subsidiary or related entities and their employees, supervisors, officers, directors, agents, pension or benefit plans, pension or benefit plan sponsors, fiduciaries, administrators, affiliates and all successors and assigns of any of them, and this Agreement shall apply to them to the extent Executive's claims arise out of or relate to their actions on behalf of Company.

13.1     Initiation of Arbitration. Either party may exercise the right to arbitrate by providing the other party with written notice of any and all claims forming the basis of such right in sufficient detail to inform the other party of the substance of such claims. In no event shall the request for arbitration be made after the date when institution of legal or equitable proceedings based on such claims would be barred by the applicable statute of limitations.

13.2     Arbitration Procedure. The arbitration will be conducted in Maricopa County, Arizona, by a single neutral arbitrator and in accordance with the then current rules for resolution of employment disputes of the American Arbitration Association (“AAA”). The parties are entitled to representation by an attorney or other representative of their choosing. The arbitrator shall have the power to enter any award that could be entered by a judge of the trial court of the State of Arizona, and only such power, and shall follow the law. The parties agree to abide by and perform any award rendered by the arbitrator. Judgment on the award may be entered in any court having jurisdiction thereof.

13.3     Costs of Arbitration. Each party shall bear one half the cost of the arbitration filing and hearing fees, and the cost of the arbitrator.

14.    General Provisions.

14.1     Successors and Assigns. The rights and obligations of Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Company. Executive shall not be entitled to assign any of Executive's rights or obligations under this Agreement.

14.2     Waiver. Either party's failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement.

14.3    Attorneys' Fees. In any dispute relating to this Agreement, the losing party shall pay the attorneys' fees of the prevailing party in addition to its own attorneys' fees.  Any reimbursement of attorney's fees to which Executive is entitled and which are treated for federal income tax purposes as compensation shall (a) be paid no later than the last day of Executive's tax year following the tax year in which the expense was incurred, (b) not be affected by any other expenses that are eligible for reimbursement in any tax year and (c) not be subject to liquidation or exchange for another benefit.

14.4    Severability. In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.

14.5     Interpretation; Construction. The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing Company, but Executive has participated in the negotiation of its terms. Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

14.6     Governing Law. This Agreement will be governed by and construed in accordance with the laws of the United States and the State of Arizona. Each party consents to the jurisdiction and venue of the state or federal courts in Maricopa County, Arizona, if applicable, in any action, suit, or proceeding arising out of or relating to this Agreement.

14.7     Notices. Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated: (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent to the addresses set forth below, or such other address as either party may specify in writing.

14.8     Survival. Sections 8 (“No Conflict of Interest”), 9 (“Post-Termination Non-Competition”), 10 (“Confidentiality and Proprietary Rights”), 11 (“Nonsolicitation”), 12 (“Injunctive Relief'), 13 (“Agreement to Arbitrate”), 14 (“General Provisions”) and 15 (“Entire Agreement”) of this Agreement shall survive Executive's employment by Company.

14.9    Application of Section 409A.

(a)    Notwithstanding anything set forth in this Agreement to the contrary, no amount payable pursuant to this Agreement which constitutes a “deferral of compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code (the “Section 409A Regulations”) shall be paid unless and until Executive has incurred a “separation from service” within the meaning of the Section 409A Regulations.  Furthermore, to the extent that Executive is a “specified employee” within the meaning of the Section 409A Regulations as of the date of Executive's separation from service, no amount that constitutes a deferral of compensation within the 

meaning of the Section 409A Regulations which is payable on account of Executive's separation from service shall paid to Executive before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of Executive's separation from service or, if earlier, the date of Executive's death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.
(b)    The Company intends that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A of the Code.  The provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the Code.  However, the Company does not guarantee any particular tax effect for income provided to Executive pursuant to this Agreement. 
15.    Entire Agreement. This Agreement, together with the Plan and any agreement evidencing an Equity Award described in Section 4.2, the Executive Bonus Plan described in Section 4.3, the Employee Innovations and Proprietary Rights Assignment Agreement described in Section 10 and the Form of Confidential Separation and Release Agreement attached hereto as Exhibit A, constitutes the entire agreement between the parties relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral. This Agreement may be amended or modified only with the written consent of Executive and the Board of Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever.

[The remainder of this page is intentionally left blank.]

THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.

EXECUTIVE

Dated: 10/15/09_____________________    /s/ G. Michael Bridge___________________
G. Michael Bridge

                        

COMPANY

Dated:  10/15/09____________________    By:/s/ Hamish N. Brewer__________________
Hamish N. Brewer,
President and Chief Executive Officer

[Signature Page to Executive Employment Agreement]

EXHIBIT A

FORM OF
CONFIDENTIAL SEPARATION AND RELEASE AGREEMENT

This Confidential Separation and Release Agreement (“Agreement”) is between ___________________ (“Employee”) and JDA Software Group, Inc. (the “Company”) (hereinafter the “parties”), and is entered into as of _______________________. This Agreement will not become effective until the expiration of seven (7) days from Employee's execution of this Agreement (the “Effective Date”).

WHEREAS, Employee has been employed by the Company as ___________ and is a party to that certain Employment Agreement dated _________, as amended by and between the Company and Employee as then in effect immediately prior to the Effective Date (the “Employment Agreement”).

WHEREAS, the last day of Employee's employment with the Company was ________;

WHEREAS, the Company and Employee desire to avoid disputes and/or litigation regarding Employee's termination from employment or any events or circumstances preceding or coincident with the termination from employment; 

WHEREAS, the Company and Employee have agreed upon the terms on which Employee is willing, for sufficient and lawful consideration, to compromise any claims known and unknown which Employee may have against the Company; and

WHEREAS, the parties desire to settle fully and finally, in the manner set forth herein, all differences between them which have arisen, or which may arise, prior to, or at the time of, the execution of this Agreement, including, but in no way limited to, any and all claims and controversies arising out of the employment relationship between Employee and the Company, and the termination thereof.

NOW, THEREFORE, in consideration of these recitals and the promises and agreements set forth in this Agreement, Employee's employment with the Company will terminate upon the following terms:

1.    General Release: Employee for himself or herself and on behalf of Employee's attorneys, heirs, assigns, successors, executors, and administrators IRREVOCABLY AND UNCONDITIONALLY RELEASES, ACQUITS AND FOREVER DISCHARGES the Company and any current or former stockholders, directors, parent, subsidiary, affiliated, and related corporations, firms, associations, partnerships, and entities, and their successors and assigns, from any and all claims and causes of action whatsoever, whether known or unknown or whether connected with Employee's employment by the Company or not, which may have arisen, or which may arise, prior to, or at the time of, the execution of this Agreement, including, but not limited to, any claim or cause of action arising out of any contract, express or implied, any covenant of good faith and fair dealing, express or implied, any tort (whether intentional or released in this agreement), or under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Worker Adjustment and Retraining Notification (WARN) Act, the Older Workers Benefit Protection Act, or any other municipal, local, state, or federal law, common or statutory.  The foregoing release shall not apply to indemnification or hold harmless obligations the Company may have that by their terms survive the termination of the Employee's employment with the Company.

2.    Covenant Not to Sue: Employee also COVENANTS NOT TO SUE, OR OTHERWISE PARTICIPATE IN ANY ACTION OR CLASS ACTION against the Company or any of the released parties based upon any of the claims released in this Agreement.

3.     Severance Terms: Upon the expiration of seven (7) days from Employee's execution of this Agreement and provided that this Agreement has become effective in accordance with its terms, in consideration for the promises, covenants, agreements, and releases set forth herein and in the Employment Agreement, the Company agrees to pay 

Employee the Severance Benefits as defined in and pursuant to the Employment Agreement (the “Severance Benefits”), subject to the provisions for forfeiture of such Severance Benefits set forth in Section 7.6 of the Employment Agreement.

4.    Right to Revoke:  Employee may revoke this Agreement by notice to the Company, in writing, received within seven (7) days of the date of its execution by Employee (the “Revocation Period”). Employee agrees that Employee will not receive the benefits provided by this Agreement if Employee revokes this Agreement. Employee also acknowledges and agrees that if the Company has not received from Employee notice of Employee's revocation of this Agreement prior to the expiration of the Revocation Period, Employee will have forever waived Employee's right to revoke this Agreement, and this Agreement shall thereafter be enforceable and have full force and effect.

5.     Acknowledgement: Employee acknowledges and agrees that: (A) except as to any Severance Benefits which remain unpaid as of the date of this Agreement, no additional consideration, including salary, wages, bonuses or Equity Awards as described in the Employment Agreement, is to be paid to him by the Company in connection with this Agreement; (B) except as provided by this Agreement, Employee has no contractual right or claim to the Severance Benefits; and, (C) payments pursuant to this Agreement shall terminate immediately if Employee breaches any of the provisions of this Agreement.

6.    Non-Admissions: Employee acknowledges that by entering into this Agreement, the Company does not admit, and does specifically deny, any violation of any local, state, or federal law.

7.    Confidentiality: Employee agrees that Employee shall not directly or indirectly disclose the terms, amount or fact of this Agreement to anyone other than Employee's immediate family or counsel, except as such disclosure may be required for accounting or tax reporting purposes or as otherwise may be required by law.

8.    Nondisparagement: Each party agrees that it will not make any statements, written or verbal, or cause or encourage others to make any statements, written or verbal, that defame, disparage or in any way criticize the personal or business reputation, practices or conduct of the other including, in the case of the Company, its employees, directors and stockholders.

9.    Acknowledgement of Restrictions; Confidential Information: Employee acknowledges and agrees that Employee has continuing non-competition, non-solicitation and non-disclosure obligations under the Employment Agreement and the Employee Innovations and Proprietary Rights Assignment Agreement between Employee and the Company (the “Proprietary Rights Agreement”).  Employee acknowledges and reaffirms Employee's obligation to continue abide fully and completely with all post-employment provisions of the Employment Agreement and the Proprietary Rights Agreement and agrees that nothing in this Agreement shall operate to excuse or otherwise relieve Employee of such obligations.

11.    Severability: If any provision of this Agreement is held to be illegal, invalid, or unenforceable, such provision shall be fully severable and/or construed in remaining part to the full extent allowed by law, with the remaining provisions of this Agreement continuing in full force and effect.

12.    Entire Agreement: This Agreement, along with the Employment Agreement and the Proprietary Rights Agreement which are referred to above, constitute the entire agreement between the Employee and the Company, and supersede all prior and contemporaneous negotiations and agreements, oral or written. This Agreement cannot be changed or terminated except pursuant to a written agreement executed by the parties.

13.    Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Arizona, except where preempted by federal law.

14.    Statement of Understanding: By executing this Agreement, Employee acknowledges that (a) Employee has had at least twenty-one (21) or forty-five (45) days, as applicable in accordance with the Age Discrimination in Employment Act, as amended, to consider the terms of this Agreement and has considered its terms for such a period of time or has knowingly and voluntarily waived Employee's right to do so by executing this Agreement and returning it to the Company; (b) Employee has been advised by the Company to consult with an attorney regarding the terms of 

this Agreement; (c) Employee has consulted with, or has had sufficient opportunity to consult with, an attorney of Employee's own choosing regarding the terms of this Agreement; (d) any and all questions regarding the terms of this Agreement have been asked and answered to Employee's complete satisfaction; (e) Employee has read this Agreement and fully understands its terms and their import; (f) except as provided by this Agreement, Employee has no contractual right or claim to the benefits and payments described herein; (g) the consideration provided for herein is good and valuable; and (h) Employee is entering into this Agreement voluntarily, of Employee's own free will, and without any coercion, undue influence, threat, or intimidation of any kind or type whatsoever.

EXECUTED in __________________________, this day of _______________________, 20___.

                                                                                      _____________________________
                                                                                      EMPLOYEE

EXECUTED in __________________________, this day of _______________________, 20___.

                                                                                       JDA Software Group, Inc.

                                                                                       By: _________________________
                                                                                       Name: ______________________
                                                                                       Title:  _______________________

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