Document:

Upland-BHenleyConsultingAgmt3-31-15Final1

CONSULTING AGREEMENT

This Consulting Agreement (the “Agreement”) is effective as of the 31st day of March, 2015 by and between Upland Software, Inc., a Delaware corporation, its subsidiaries, affiliates, successors or assigns (collectively, “Upland”) with its principal place of business at 401 Congress Avenue, Suite 1850, Austin, Texas 78701, and R. Brian Henley, an individual residing at the address set forth on the signature page hereto (“Consultant”). Upland desires to retain Consultant as an independent contractor to perform consulting services for Upland and Consultant is willing to perform such services, on terms set forth more fully below. In consideration of the mutual promises contained herein, the parties agree as follows:

		
	1.
	SERVICES AND COMPENSATION

a.Services. During the term of this Agreement, Consultant agrees to perform for Upland the services (“Services”) described in the schedule attached hereto as Schedule 1.

b.Compensation. Upland agrees to compensate Consultant as set forth in the attached Schedule 1 for the performance of the Services.

c.Separation Agreement. Consultant understands and agrees that the Company shall have no obligation to enter into this Agreement if the Separation Agreement (as defined in Section 13 below) does not become effective for whatever reason.

		
	2.
	CONFIDENTIALITY

a.    Definition. “Confidential Information” means any Upland confidential or proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customers, customer lists, markets, software, developments, inventions, processes, formulas, technology,  designs, drawings, engineering, hardware configuration information, marketing, finances or other business information disclosed by Upland either directly or indirectly in writing, orally or by drawings or inspection of parts or equipment.

b.    Non-Use and Non-Disclosure. Consultant will not, during or subsequent to the term of this Agreement, use Upland's Confidential Information for any purpose whatsoever other than the performance of the Services on behalf of Upland or disclose Upland' s Confidential Information to any third party. It is understood that said Confidential Information shall remain the sole property of Upland. Consultant further agrees to take all reasonable precautions to prevent any unauthorized disclosure of such Confidential Information including, but not limited to, having each employee or independent contractor of Consultant, if any, with access to any Confidential Information, execute a nondisclosure agreement containing provisions in Upland’s favor substantially similar to Section 2 of this Agreement. Confidential Information does not include information which (i) is known to Consultant at the time of disclosure to Consultant by Upland as evidenced by written records of Consultant; (ii) has become publicly known and made generally available through no wrongful act of Consultant or another third party; or (iii) has been rightfully received by Consultant from a third party who is authorized to make such disclosure. Without Upland's prior written approval, except as required by law or legal process, Consultant will not directly or indirectly disclose to anyone the existence or contents of this Agreement or the fact that Consultant has this arrangement with Upland.

c.    Third Party Confidential Information. Consultant recognizes that Upland has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on Upland's part to maintain the confidentiality of such information and to use it only for certain limited purposes.  

Consulting Agreement     1    UPLAND CONFIDENTIAL

Consultant agrees that Consultant owes Upland and such third parties, during the term of this Agreement and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out the Services for Upland consistent with Upland's agreement with such third party.

d.    Other Consultant Confidential Information. Consultant agrees that Consultant will not, during the term of this Agreement, improperly use or disclose any confidential or proprietary information or trade secrets of any third party with which Consultant has an agreement or duty to keep in confidence information acquired by Consultant, if any, and that Consultant will not bring onto the premises of Upland any unpublished document or confidential or proprietary information belonging to such party unless consented to in writing by such party. Consultant will indemnify Upland and hold it harmless from and against all claims, liabilities, damages and expenses, including reasonable attorneys' fees and costs of suit, arising out of or in connection with any alleged or actual violation or misappropriation of a third party's rights resulting in whole or in part from Upland's use of the work product of Consultant under this Agreement.

e.    Compliance with Securities Laws.  Consultant acknowledges and agrees that any Confidential Information received in the course of performing the Services could be deemed “material nonpublic information” under the Securities and Exchange Act of 1934, as amended (the “1934 Act”), and the rules and regulations promulgated thereunder (including, without limitation, Regulation FD thereunder).  For so long as any information obtained by Consultant remains ”material nonpublic information,” Consultant agrees not to purchase, sell, or make any short sale of any shares of Upland’s common stock, to grant, purchase, or sell any options for the purchase or sale of Upland’s common stock, or otherwise to engage in any transactions in shares of Upland’s common stock (whether directly or through transactions in derivative securities) that would result in any violation of the 1934 Act or any rule or regulation promulgated thereunder.

f.    Return of Materials.  Upon the termination of this Agreement, or upon Upland's earlier request, Consultant will deliver to Upland all of Upland's Confidential Information that Consultant may have in Consultant's possession or control.

g.    Use of Name. Consultant shall not use the name, trademarks, or trade names of Upland without Upland's prior written approval. Consultant shall not issue any press release or similar publicity regarding its business relationship with Upland without having first obtained Upland's written consent.

		
	3.
	OWNERSHIP

a.    Assignment. Consultant agrees that all materials, notes, records, drawings, designs, inventions, improvements, developments, discoveries, trade secrets and all other intellectual property  (i) conceived, discovered, developed or reduced to practice by Consultant, solely or in collaboration with others, during the term of this Agreement which relate in any manner to the business of Upland that Consultant may be directed to undertake, investigate or experiment with, or which Consultant may become associated with in work, investigation or experimentation in Upland's line of business in performing the Services hereunder,(ii) that reflect or contain Upland’s Confidential Information, or (iii) that form all or a part of a deliverable provided as part of the Services, whether developed as part of the Series or separately, but excluding Prior Work Product (as defined below) (collectively, “Work Product”) are the sole property of Upland. Work Product that constitutes copyrightable subject matter will be considered “works made for hire” to the extent permitted under the United States Copyright Act. Consultant further agrees to assign (or cause to be assigned) and does hereby irrevocably assign fully to Upland all Work Product and any copyrights, patents, mask work rights or other intellectual property rights relating thereto. Consultant hereby waives any and all moral rights. Consultant will promptly disclose all Work Product to Upland.  If government approval is required to assign 

Consulting Agreement     2    UPLAND CONFIDENTIAL

any Work Product to Upland, Consultant will, at its expense, obtain the government approval as quickly as possible.

b.    Further Assurances. Consultant agrees to assist Upland, or its designee, at Upland's expense, in every proper way to secure Upland's rights in the Work Product and any copyrights, patents, mask work rights or other intellectual property rights relating thereto in any and all countries, including the disclosure to Upland of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which Upland shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to Upland, its successors, assigns and nominees the sole and exclusive right, title and interest in and to such Work Product, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto. Consultant further agrees that Consultant's obligation to execute or cause to be executed, when it is in Consultant's power to do so, any such instrument or papers shall continue after the termination of this Agreement.

c.    Pre-Existing Materials. Consultant agrees that if in the course of performing the Services, Consultant incorporates into any Work Product developed hereunder any invention, improvement, development, concept, discovery or other proprietary information owned by Consultant or in which Consultant has an interest (“Prior Work Product”), (i) Consultant shall inform Upland, in writing before incorporating such invention, improvement, development, concept, discovery or other proprietary information into any Work Product; and (ii) Upland is hereby granted and shall have a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to use, perform, display, make, reproduce, make derivative works, import, sell, offer for sale, license, distribute, and otherwise dispose of such Prior Work Product as part of or in connection with such Work Product, with the right to license such rights to others. Consultant shall not incorporate any Prior Work Product owned by any third party into any Work Product without Upland's prior written permission.

d.    Attorney in Fact.   Consultant agrees that if Upland is unable because of Consultant's unavailability, dissolution, mental or physical incapacity, or for any other reason, to secure Consultant's signature to apply for or to pursue any application for any United States or foreign patents or mask work or copyright registrations covering the Work Product assigned to Upland above, then Consultant hereby irrevocably designates and appoints Upland and its duly authorized officers and agents as Consultant's agent and attorney in fact, to act for and in Consultant's behalf and stead to execute and file any such applications mid to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyright and mask work registrations thereon with the same legal force and effect as if executed by Consultant.

		
	4.
	WARRANTIES

a.    Consultant Warranty. Consultant warrants that it shall perform the obligations described herein in a timely, good and workmanlike manner with due diligence and in full compliance with the terms and conditions of this Agreement and all mutually agreed to specifications, statements of work, and acceptance criteria, and in full compliance with all applicable laws, rules, and regulations, including without limitation those related to insider trading. Consultant, at its expense; shall correct any Services or Work Product performed by or delivered by Consultant that do not conform with the foregoing warranty.

b.    Further Warranties. Consultant further warrants that: (i) the Work Product is or will be original to Consultant; (ii) Consultant has and will have all requisite ownership, rights, and licenses to fully perform its obligations under this Agreement and to grant to Upland all rights with respect to the deliverables and Work Product and related intellectual property rights to be granted under this Agreement; (iii) Consultant has not previously granted and will not grant any rights in the Work Product to any third party that are 

Consulting Agreement     3    UPLAND CONFIDENTIAL

inconsistent with the rights granted to Upland herein; (iv) all Work Product, and the intended uses thereof, shall be free of any third party claims with respect to intellectual property or other proprietary rights and shall be free of any third party liens, encumbrances, security interests, or any similar restrictions, including, without limitation, Consultant’s employees, agents, artists, and contractors and their contractors’ employees, agents, and artists, who have provided, are providing, or will provide services with respect to the development of the Work Product; (v) unless provided by Upland, Consultant will provide  all necessary personnel, facilities, and materials to facilitate efficient and effective completion of the Services; (vi) Consultant will exert Consultant's best efforts to use a repeatable and proven process to design, develop, test, deliver, and document the Work Product, or any part thereof; and (vii) Consultant has full power and authority to enter into this Agreement, to carry out its obligations under this Agreement and to grant the rights granted to Upland hereunder.
c.    Noninfringement. Nothing contained in a deliverable or Work Product (including Prior Work Product) or required in order for Consultant to create and deliver a deliverable or Work Product under this Agreement does or will infringe, violate, or misappropriate any intellectual property rights of any third party.  Further, no characteristic of any deliverable or Work Product does or will cause manufacturing, using, maintaining, or selling the Work Product to infringe, violate, or misappropriate the intellectual property rights of any third party. The deliverables and Work Product as delivered by Consultant to Upland will not contain matter that is injurious to end‐users or their property, or which is otherwise unlawful or tortious. Any computer program provided as part of any Work Product or a deliverable will not contain any software code that is subject to a license requiring, as a condition of use, modification, or distribution of the software code, that the software code or other software code combined or distributed with it be (i) disclosed or distributed in source code form; (ii) licensed for the purpose of making derivative works; or (iii) redistributable at no charge.

d.    Indemnity. Consultant shall indemnify and hold Upland harmless from and against any claims, damages, or liabilities resulting from (i) any negligent, reckless, or intentionally wrongful act of Consultant or Consultant’s employees or agents; (ii) any breach by Consultant or Consultant’s employees or agents of any of the covenants, warranties, or representations contained in this Agreement; (iii) any failure of Consultant to perform the Services in accordance with all applicable laws, rules, and regulations; (iv) any violation or claimed violation of a third party’s rights resulting in whole or in part from Upland’s use of the Work Product of Consultant or deliverables under this Agreement; or (v) injuries to persons that occur on Consultant’s premises or premises under Consultant’s control.

e.    Intellectual Property Infringement. In the event of any claim concerning the intellectual property rights of a third party that would prevent or limit Upland’s use of the Work Product or deliverables under this Agreement, Consultant will, in addition to its obligations under this Section 4, take one of the following actions at its sole expense: (i) procure for Upland the right to continue use of the Work Product or deliverable or infringing part thereof; or (ii) modify or amend the Work Product or deliverable or infringing part thereof, or replace the Work Product or deliverable or infringing part thereof with another Work Product or deliverable having substantially the same or better capabilities.

		
	5.
	CONFLICTING OBLIGATION S

Consultant certifies that Consultant has no outstanding agreement or obligation that is in conflict with any of the provisions of this Agreement, or that would preclude Consultant from complying with the provisions hereof, and further certifies that Consultant will not enter into any such conflicting agreement during the term of this Agreement. 

Consulting Agreement     4    UPLAND CONFIDENTIAL

		
	6.
	REPORTS

Consultant agrees that it will from time to time during the term of this Agreement or any extension thereof keep Upland advised as to Consultant's progress in performing the Services hereunder and that Consultant will, as requested by Upland, prepare written reports with respect thereto. It is understood that the time required in the preparation of such written reports shall be considered time devoted to the performance of Consultant's Services.

		
	7.
	TERM AND TERMINATION

a.    Term. This Agreement will commence on the date first written above and will· continue until the earlier of (i)  December 31, 2015 or (ii) termination as provided below.

b.    Termination. Upland may, for any reason or no reason, terminate this Agreement upon giving written notice thereof to Consultant. Consultant may, for any reason or no reason, terminate this Agreement on 15 days written notice to Upland.

c.    Survival. Upon such termination all rights and duties of the parties toward each other shall cease except:

i.that Upland shall be obliged to pay, within thirty (30) days of the effective date of termination, any unpaid expenses, in accordance with the provisions set forth on the attached Schedule 1; and

ii.Sections 2 (Confidentiality), 3 (Ownership), 4 (Warranties), 5 (Conflicting Obligations), 7.c (Survival), 9 (Independent Contractor), 10 (Benefits), and 11 - 16 (Arbitration and Equitable Relief; Insurance; Governing Law; Entire Agreement; Attorney's Fees; Severability; Notices) shall survive termination of this Agreement.

		
	8.
	ASSIGNMENT

a.    Assignment. Neither this Agreement nor any right hereunder or interest herein may be assigned or transferred by Consultant without the express written consent of Upland.  Upland may freely assign this Agreement.

b.    Subcontracting. Consultant may not subcontract any portion of the Services without the express written permission of Upland. Any such permitted subcontractor shall be retained only pursuant to terms and conditions identical to this Agreement in all material respects, and Consultant shall be fully liable for any breach of such agreement and for the performance of each such permitted subcontractor.

		
	9.
	INDEPENDENT CONTRACTOR

It is the express intention of the parties that Consultant is an independent contractor. Nothing in this Agreement shall in any way be construed to constitute Consultant as an agent, employee or representative of Upland, but Consultant shall perform the Services hereunder as an independent contractor.  Consultant agrees to furnish (or reimburse Upland for) all tools and materials necessary to accomplish this contract, and shall incur all expenses associated with performance.  Consultant acknowledges and agrees that Consultant is obligated to report as income all compensation received by Consultant pursuant to this Agreement, and Consultant agrees to and acknowledges the obligation to pay all self-employment and other taxes thereon. 

Consulting Agreement     5    UPLAND CONFIDENTIAL

Consultant further agrees to indemnify and hold harmless Upland and its directors, officers, and employees from and against all taxes, losses, damages, liabilities, costs and expenses, including attorney's fees and other legal expenses, arising directly or indirectly from any negligent, reckless or intentionally wrongful act of Consultant or Consultant's assistants or agents,  a determination by a court or agency that the Consultant is not an independent contractor, or  any breach by the Consultant or Consultant's assistants or agents of any of the covenants contained in this Agreement.

		
	10.
	BENEFITS

Consultant acknowledges and agrees and it is the intent of the parties hereto that neither Consultant nor any contractors of Consultant receive any Upland-sponsored benefits from Upland either as a consultant or employee. Such benefits include, but are not limited to, paid vacation, sick leave, medical insurance, and 401(k) participation. If Consultant is reclassified by a state or federal agency or court as an employee, Consultant will become a reclassified employee and will receive no benefits except those mandated by state or federal law, even if by the terms of Upland's benefit plans in effect at the time of such reclassification Consultant would otherwise be eligible for such benefits.

		
	11.
	ARBITRATION AND EQUITABLE RELIEF

a.    Disputes. Except as provided in Section 12(b), Upland and Consultant agree that any dispute or controversy arising out of, relating to or in connection with the interpretation, validity, construction, performance, breach or termination of this Agreement shall be settled by binding arbitration in accordance with Section 19 of the Separation Agreement (as defined in Section 13 below).

b.    Equitable Relief. The parties may apply to any court of competent jurisdiction for a temporary restraining order, preliminary injunction, or other interim or conservatory relief, as necessary, without breach of this arbitration agreement and without abridgment of the powers of the arbitrator.

		
	12.
	GOVERNING LAW

This Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of the State of Texas. Each party shall commit to the exclusive jurisdiction of the State and Federal courts in Texas.

		
	13.
	ENTIRE AGREEMENT

This Agreement is the entire agreement of the parties and supersedes any prior agreements between them, whether written or oral, with respect to the subject matter hereof, with the exception of the Separation and Release Agreement executed by Consultant contemporaneously herewith (the “Separation Agreement”), and any agreements expressly survived thereunder. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by duly authorized representatives of the parties hereto.

		
	14.
	ATTORNEY'S FEES

In any court action at law or equity that is brought by one of the parties to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorney's fees, in addition to any other relief to which that party may be entitled.

Consulting Agreement     6    UPLAND CONFIDENTIAL

		
	15.
	SEVERABILITY

The invalidity or unenforceability of any provision of this Agreement, or any terms thereof, shall not affect the validity of this Agreement as a whole, which shall at all times remain in full force and effect.

		
	16.
	NOTICES

Any notice shall be addressed to the party being notified at the address set forth in this Agreement or such other address as either party may notify the other of and shall be deemed given upon delivery if personally delivered or transmitted via facsimile or e-mail or reliable overnight carrier (with tracking capability), or forty-eight (48) hours after being deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested.

[Signature page follows.]

Consulting Agreement     7    UPLAND CONFIDENTIAL

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

	
			
	Upland:
	 
	Consultant:

	 
	 
	 

	Upland Software, Inc.
	 
	R. Brian Henley

	 
	 
	 

	By: /s/ Michael Hill
	 
	/s/ R. Brian Henley

	(signature)
	 
	(signature)

	Print Name:  Michael Hill
	 
	Address for Notice:

	Title: CFO
	 
	############

	Date: 3/31/15
	 
	Date: 3/31/15

	 
	 
	 

SCHEDULE 1
SERVICES AND COMPENSATION

		
	1.
	Contact. Consultant’s principal Upland contact:

Name:     Michael Hill                
Title:       CFO                    
Email:      mhill@uplandsoftware.com        
Phone:      512-960-1012                

		
	2.
	Services. The Services will include, but will not be limited to, the following:

During the term of this Agreement, Consultant will perform advisor services for Upland as reasonably requested by Upland to assist in (i) providing referrals to Upland of enterprise work management cloud-based deals in accordance with Section 2 of the Separation Agreement and (ii) other matters reasonably requested by Upland.

		
	3.
	Compensation.

		
	a.
	Upland will reimburse Consultant, in accordance with Upland’s policy, for all reasonable expenses incurred by Consultant in performing the Services pursuant to this Agreement, provided Consultant submits receipts for such expenses to Upland in accordance with Upland policy.

		
	b.
	As compensation for the performance of the Services and in lieu of monetary compensation, Upland and Consultant agree that the stock options previously issued to Consultant to purchase shares of the Upland’s Common Stock, pursuant and subject to the terms and conditions of Upland’s Amended and Restated 2010 Stock Plan (as amended, the “Plan”) and related stock option agreements, including vesting requirements (the “Existing Stock Options”), shall continue in full force and effect, and continue to vest, if applicable, in accordance with the terms and conditions of the Plan and the applicable stock option agreement(s) under which the grant(s) of such Existing Stock Options were made, as if Consultant’s status as a Service Provider to Upland has been uninterrupted through such transition from employee to consultant. Consultant further acknowledges that, due to the change in status of Consultant from employee to consultant, such Existing Stock Options may be treated as Nonstatutory Stock Options (“NSOs”) to the extent such Existing Stock Options do not, or no longer, qualify as Incentive Stock Options.

		
	c.
	Upland and Consultant further agree that the restricted stock previously issued to Consultant, pursuant and subject to the terms and conditions of Upland’s Amended and Restated 2010 Stock Plan (as amended, the “Plan”) and related restricted stock purchase agreement, including vesting requirements (the “Existing Restricted Stock”), shall continue in full force and effect, and continue to vest, if applicable, in accordance with the terms and conditions of the Plan and the applicable restricted stock purchase agreement under which the grant of such Existing Restricted Stock was made, as if Consultant’s status as a Service Provider to Upland has been uninterrupted through such transition from employee to consultant.

For clarity regarding Sections 3(b) and (c), the Existing Stock Options and Restricted Stock are set forth in the table below:

	
			
	Grant Date
	Options/Shares Granted
	Exercise/Purchase Price Per Share

	October 25, 2013
	49,188 (options)
	$1.77

	March 31, 2014
	12,297 (options)
	$6.23

	September 2, 2014
	40,990 (restricted stock)
	$8.73

		
	d.
	

This Schedule 1 is accepted and agreed upon, effective as of ___________________, 2015.

	
			
	Upland:
	 
	Consultant:

	 
	 
	 

	Upland Software, Inc.
	 
	R. Brian Henley

	 
	 
	 

	By:
	 
	 

	(signature)
	 
	(signature)

	Print Name:
	 
	 

	Title:
	 
	 

	 
	 
	 

Consulting Agreement     8    UPLAND CONFIDENTIALUPLD-Ludwig_Melik_Separation_AgmtFINAL

CONFIDENTIAL

March 12, 2015

Mr. Ludwig Melik
45 rue De Lindoso
Blainville, Quebec
Canada
J7B1Z7

Subject:    Separation Agreement
___________________________________

Dear Ludwig,

On February 2, 2015, we informed you that your employment with Upland Software Inc. (“Upland”) was terminated effective that day (the “Termination Date”). We hereby wish to formalize the terms and conditions of the termination of your employment pursuant to our recent discussions and email exchanges.

In recognition of your service and your contribution to Upland, we are willing to offer you the following in order to assist you in this time of transition:

Indemnity in lieu of notice

As per the “Amendment to Employment Agreement” dated December 18, 2012, as an indemnity in lieu of notice of termination, Upland will continue to pay you an amount equivalent to your base salary, according to the Upland pay schedule and less the usual deductions at source, until August 2, 2015, therefore for a period of six (6) months after the Termination Date. This indemnity in lieu of notice includes the indemnity provided for under the Civil code of Quebec.

Your Accrued Salary and Vacation 

You will be paid your accrued salary and vacation pay up to the Termination Date in accordance with Upland’s standard payroll practice.

Based on Upland’s records, we have determined that you have 42.87 days of accrued vacation which represents an amount of CDN$52,132.32. This amount will be paid, less the usual deductions at source, on February 27, 2015.

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Frost Tower, 401 Congress Avenue, Suite 1850, Austin, TX 78701-3788  |  855-944-PLAN  |  www.uplandsoftware.com

2014 M&A Bonus

Upland shall pay you the 2014 M&A bonus of an amount of CDN$51,104. CDN$22,953 of this amount will be paid in the form of an RRSP payment at your direction on or about February 26, 2015.  The remainder of this amount being CDN$28,151, less the usual deductions at source, will be paid in the next regular payroll cycle following the execution of this agreement.

Stock Option Vesting

You currently hold the following options to purchase Upland Software, Inc. common stock, issued pursuant to the Amended and Restated Upland Software, Inc. 2010 Stock Plan (as amended, the “Plan”) and related stock option agreements (collectively, the “Stock Options”):

	
				
	Grant Date
	Shares Granted
	Options Vested (as of 2/2/2015)
	Per Share Exercise Price

	October 10, 2012
	20,478
	11,262
	$1.22

	October 25, 2013
	20,495
	5,465
	$1.77

	March 31, 2014
	24,594
	2,869
	$6.23

Immediately following your termination and without any break in service, you agree to provide consulting services to Upland Software, Inc. pursuant to a consulting agreement, in the form attached hereto as Exhibit A (the “Consulting Agreement”).  During the term of the Consulting Agreement which expires on August 2, 2015, in lieu of monetary compensation for services, your Stock Options will continue to vest in accordance with the terms and conditions of the Plan and the applicable stock option agreements under which the grants of such Stock Options were made, as if your status as a Service Provider to Upland has been uninterrupted.

Upon the termination of the Consulting Agreement (which shall be no later than August 2, 2015), the remaining unvested option shares of the October 10, 2012 grant and the October 25, 2013 grant shall accelerate and become fully vested in lieu of incentive compensation satisfying the severance compensation requirements of your amended employment agreement and serving as additional consideration for any additional concessions or releases by you as a result of this Separation Agreement. 

Group insurance

Your coverage under the Upland long-term disability insurance plan will end on the Termination Date. 

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Frost Tower, 401 Congress Avenue, Suite 1850, Austin, TX 78701-3788  |  855-944-PLAN  |  www.uplandsoftware.com

Your coverage under the Upland group insurance plans for medical and dental insurance, as well as your life insurance coverage, will end on August 2, 2015.

You have been informed of your conversion rights with respect to life insurance and you have indicated to us that you are satisfied with the individual coverage that you presently have.

Please contact the undersigned immediately upon having found new employment in which you will be covered by a group insurance plan as your coverage under any Upland insurance plan will terminate as of your first day of employment with your new employer.

Record of Employment 

You will receive your Record of Employment for employment insurance purposes.

Expenses and Expense Allowance

Upland will provide you with payment for all justified outstanding business expenses incurred up to and including the Termination Date. Upland shall provide you with an expense allowance of up to CDN$30,500 during the period started January 1, 2015 through the end of the pay continuance period for reasonable expenses incurred by you in the course of performing your duties under this agreement or your Consulting Agreement in a timely manner and in accordance with the policies and procedures established by Upland or Upland Software, Inc. from time to time and provided that proper supporting receipts are submitted consistent with Section 7.2 of your Employment Agreement. At your request, Upland will pay the unused portion of this expense allowance in the form of a bonus or a retirement plan contribution. Please submit all claims for expenses to Upland by no later than February 28, 2015. You acknowledge that you are solely responsible for any of your income taxes or payroll taxes due on any amounts historically paid to you by Upland, Silverback Enterprise Group, Inc., Upland Software, Inc., or Tenrox, Inc. (pre or post acquisition by Upland) whether such expense allowance payments have been supported by valid expense receipts or not and whether such expense allowance payments have been reported as taxable or non-taxable income to you to the various income tax or payroll tax compliance authorities. To be clear, you hold Upland, Silverback Enterprise Group, Inc., Upland Software, Inc., and Tenrox, Inc. harmless for any of your historical payroll or income tax reporting which may or may not have been reported correctly to any applicable tax compliance authorities.

Resignation From Officer’s Position

We hereby acknowledge receipt of your letter dated February 2, 2015 whereby you resigned from your position as President of Upland Software, Inc. and from all other officer positions of Upland Software, Inc. and any of its subsidiaries, effective February 2, 2015. 

Non-Competition and Non-Solicitation

3
Frost Tower, 401 Congress Avenue, Suite 1850, Austin, TX 78701-3788  |  855-944-PLAN  |  www.uplandsoftware.com

As we have discussed, in consideration for the offer contained herein, you expressly undertake to satisfy your obligations regarding non-competition and non-solicitation as per your Employment Agreement dated February 10, 2012 (“Employment Agreement”) and you acknowledge that these obligations shall remain in full force and effect until February 1, 2016. You further agree not to contest the validity or enforceability of the non-competition and non-solicitation provisions contained at section 11 of the Employment Agreement.

Property belonging to Upland and Computer Access

Please return all property belonging to Upland which is in your possession, including Upland security cards and Upland keys, as well as all documents and files. Also, please provide us with all passwords, identifications and codes to all systems, computers, programmes, software and Websites belonging to or containing Upland information or documents.

As discussed, Upland is hereby transferring ownership to you of the following devices:

		
	1)
	A MacBook Pro laptop computer with serial number C02LV2GRFH05;

		
	2)
	A iPhone 5 phone computer with serial number DQGNM1UCFH1G;

However, we do ask that you meet with a member of our IT team in order to allow for the transfer of all Upland files and documents from these devices to Upland devices and to ensure that all Upland files and documents are deleted from your devices.
 
We also ask that you not make or retain any copies of any documents of files belonging to or containing confidential information which belongs to Upland, including any documents or files relating to clients or to financial matters.

Tax Treatment

Upland shall make any payments under the present offer in the most fiscally advantageous manner, subject to applicable laws and regulations. Kindly provide the undersigned with your requests in this regard at your earliest convenience.

Finally, we remind you of your legal obligations of loyalty and confidentiality towards Upland, which continue for a reasonable period following the termination of your employment. We trust that you will fully satisfy these obligations. In particular, you shall not make any disparaging comments regarding Upland and its directors, officers and employees.

We hope that you will consider this separation agreement to be fair and reasonable given the circumstances. This offer is conditional to you executing the attached release. We encourage you to take some time to review this offer as well as the release and to consult a legal advisor of your choice.

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If you decide to accept our offer, please send a signed copy of this letter and of the attached mutual release to me, at the latest on February 24, 2015. In the event that we do not receive your written acceptance of this offer by that date, Upland will pay you the indemnity in lieu of notice required by the Amendment to Employment Agreement and you will be deemed to have renounced to all of the terms and conditions contained in the present letter, all of which will become null and void. 

We wish you all the best in your future endeavours and we thank you for your contribution to Upland.

Sincerely,

	
		
	Upland Software Inc.

 /s/ Michael Hill                                            
Michael Hill, Corporate Secretary

	Upland Software, Inc.

 /s/ Michael Hill                                            
Michael Hill, CFO

ACCEPTANCE

I, Ludwig Melik, having had the opportunity to review the terms of this offer of termination, along with the attached Release and Discharge, and to receive counsel from an independent legal advisor, understand and accept the offer as written and I agree to comply with the terms, conditions and obligations in the release and discharge.

 /s/ Ludwig Melik                                                                                                          
Signature                        Date:  3/19/15

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RELEASE AND DISCHARGE

Further to the letter issued by Upland Software Inc. (“Upland”) dated March 12, 2015 (the “Letter”) and in consideration for my acceptance of the offer therein contained, I,  Ludwig Melik,  do hereby, in my name and that of my successors, heirs and assigns, fully and irrevocably release and discharge Upland, its subsidiaries, affiliated, associated or parent companies, and their directors, officers, agents, representatives, employees and mandatories, of any and all claims, actions or demands which I ever had, now have or hereafter may have by reason of or in any way related to my employment or the termination of my employment with Upland, or my contract of employment generally, pursuant to any applicable laws, including in equity, contract or tort, or under the Civil Code of Québec, the Act respecting Labour Standards, the Charter of Human Rights and Freedoms, the Act respecting Industrial Accidents and Occupational Diseases, the Act respecting Occupational Health and Safety and the Labour Code, and any other statute or regulation pertaining to my employment or the termination thereof. 

My execution of this release and discharge confirms that I have entered into a full and final settlement relative to any claims which I may have against Upland. I acknowledge that the payment by Upland of the amounts described in the Letter and any related document covers any and all notice of termination or indemnity in lieu thereof required to be given by law, including, without limiting the generality of the foregoing, any and all vacation indemnity, bonuses, holiday pay, life insurance benefit or coverage, disability insurance, healthcare or other insurance, as well as any contributions, benefits or incentive plans owed under any law or contract whatsoever.

I further undertake to hold harmless and indemnify Upland from and against all claims, damages, losses or expenses incurred by Upland relating to payments made during my employment or pursuant to the Letter, regardless of the cause or of the nature of the claim including all debts due to federal and provincial tax authorities or other competent authorities, including assessments, reassessments, penalties and interests.

I recognize that, unless otherwise specified in the Letter, I was and still am, required to return all property and records belonging to Upland that were, or continue to be in my possession or which I borrowed from Upland.  I hereby agree to return all keys, passes and documents relating to the operations of Upland that came into my possession during the course of my employment, as well as Upland’s equipment such as computers, software, cell phones, pagers and credit cards.

I agree not to disclose to any person any of the terms and conditions of my termination settlement and of this Release and Discharge or any of the negotiations related thereto, save and except for the 

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members of my immediate family or my legal and financial advisors, if they agree to keep this information confidential, or as may be required by law.

I also agree to abide by the terms and conditions of the Letter and I agree to satisfy any and all obligations contained in my Employment Agreement dated February 10, 2012.

It is understood and agreed that the aforementioned consideration does not constitute an admission of liability on the part of Upland.

I acknowledge that I was given sufficient time to review the terms and conditions of the Letter and of the present Release and Discharge and to seek independent legal advice before executing this document.  After having been satisfied that the present transaction is just and reasonable in the circumstances, I acknowledge having executed it freely, voluntarily, and after just consideration.

The present Release and Discharge constitutes a transaction within the meaning of Sections 2631 and following of the Civil Code of Quebec.

The present Release and Discharge shall benefit to the successors and assigns of Upland and shall bind my heirs, executors, successors and assigns.

I hereby confirm my express wish that the present Release and Discharge and all documents directly and indirectly related hereto be drawn up in English.  Je reconnais de manière expresse mon désir que la présente entente ainsi que tous les documents et conventions qui s’y rattachent directement ou indirectement soient rédigés en langue anglaise.

IN WITNESS THEREOF, I HAVE SIGNED IN  Blainville, Quebec, 

on this     19th day of March 2015.

 /s/ Taline Tanachian                       /s/ Ludwig Melik                                  
Witness                        Ludwig Melik

EXHIBIT A

Consulting Agreement

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