Document:

EX-10.5

 Exhibit 10.5 

 

			
	

	  	Serena Software, Inc.

 June 20, 2013 
 Greg Hughes 
 c/o Serena Software, Inc. 

1850 Gateway Drive, 4th Floor 
 San
Mateo CA 94404 
 Dear Greg: 
 We are
pleased to inform you that the board of directors (“Board”) of Serena Software, Inc. (“Serena”) has approved the following modifications to your original offer letter of employment with Serena. 

You will be eligible to receive an annual cash incentive bonus based on an annual target bonus equal to 100% of your base salary for a period of twelve
(12) months. For fiscal year 2014, the annual cash incentive plan is governed by the terms of the FY 2014 Executive Annual Incentive Plan. Your actual bonus payout will be subject to the achievement of our annual EBITA (earnings before
interest, taxes and amortization) target under our fiscal year 2014 operating plan as revised on June 5, 2013. Achievement of less than 95% of the EBITA target will result in no payout, achievement of 95% of the EBITA target will result in a
50% payout, achievement of 100% of the EBITA target will result in a 100% payout and achievement of 105% of the EBITA target will result in a 150% payout of the applicable target bonus amount. Bonus payouts are capped at 150% of your applicable
target bonus. For fiscal year 2014, your applicable target bonus will be $375,000, which reflects a proration of your annual target bonus based on your expected period of service during the fiscal year. If a Change in Control should occur prior to
the end of fiscal year 2014 and you are employed by Serena immediately prior to the Change in Control, Serena will pay you 100% of your target bonus under the FY2014 Executive Annual Incentive Plan immediately prior to the Change in Control.

 You will be granted 250,000 additional restricted stock units under Serena’s Amended and Restated 2006 Stock
Incentive Plan (“Stock Plan”) pursuant to the terms of Serena’s standard Restricted Stock Unit Agreement (Retention Award). Subject to your continued employment on the applicable vesting event, 100% of the restricted stock units will
vest upon the first to occur of (a) the 3rd
anniversary of the date of grant, (b) a Change in Control, or (c) an Initial Public Offering. If the vesting event is a Change in Control, each restricted stock unit that you hold, including all restricted stock units that were previously
awarded to you and unvested as of the date of this letter, will be cancelled immediately prior to such Change in Control in consideration for a payment equal to the per share consideration received by the holders of the Serena’s common stock in
such Change in 
  

  

			
	1850 Gateway Drive, 4th Floor San Mateo California 94404	  	T 650.481.3400 F 650.481.3700
	www.serena.com	  	

 Greg Hughes 
 June 20, 2013 
  

 
Control; provided, that the aggregate payment that you will be entitled to receive with respect to the cancellation of all of your restricted stock units in such Change in Control will not
be more than $1,250,000. The aggregate payment to be made in consideration of the cancellation of your restricted stock units in connection with a Change in Control will be subject to the same terms and conditions as apply to the payment of the per
share consideration made to holders of Serena common stock, including any indemnity escrow or earn out provisions, and shall be made net of all required taxes and withholdings. 
 In addition, Serena shall set aside a discretionary bonus pool through which additional awards may be granted by the compensation committee of the Board of Directors at the time of a Change in Control.
You will be eligible to participate in this discretionary pool, with the amount of any such award to be determined by the compensation committee in its sole discretion and, if applicable, paid to you by Serena at or immediately prior to the Change
in Control. 
 Silver Lake Partners and Serena shall use commercially reasonable best efforts to obtain stockholder approval in accordance with
the terms of Section 280G of the Internal Revenue Code in connection with any “change in ownership or effective control” of Serena or any “change in the ownership of a substantial portion of the assets of Serena” prior to or
at a Change in Control. 
 For purpose of this letter, the terms “Cause,” “Good Reason” and “Change in Control”
are defined in the Stock Plan. 
 Employment with Serena is on an at-will basis. You are free to terminate your employment for any reason at any
time with or without prior notice. Similarly, Serena can terminate your employment relationship with or without cause or notice. 
 This letter
modifies the terms of your original offer of employment with Serena, and supersedes any previous verbal commitments. The terms of this letter may only be changed by written amendment to this letter. 

  
 Page 2 of 3

 Greg Hughes 
 June 20, 2013 
  

 Your experience and talents are important to our company. Please call me with any questions you may
have. 
 Sincerely, 
  

	
	/s/ Karen King
	
	Karen M. King
	Director of Serena Software, Inc. and
	 Managing Director of Silver Lake Technology Associates II, L.L.C.,
 as General Partner of Silver Lake Partners II, L.P.

  

			
	Accepted:	 	 /s/ Greg Hughes

		 	Greg Hughes
		
	Date:	 	 June 20, 2013

  
 Page 3 of 3EX-10.6

 Exhibit 10.6 

 
 

 
 FY 2014 Executive Annual Incentive Plan 

 

			
		
	Purpose:	  	The Executive Annual Incentive Plan is designed to motivate Executive Officers to focus on specific, measurable corporate goals and provide performance-based compensation to
Executive Officers based on the achievement of these goals.
		
	Eligibility:	  	The Plan Participants include Executive Officers of Serena. Executive Officers are officers of Serena at the level of Senior Vice President or above. A Plan Participant must be a
regular, full-time employee of Serena at the end of the fiscal year and remain actively employed through the date of the bonus payout to be eligible to earn and receive the applicable bonus amount.
		
	Target Bonus:	  	The target incentive bonus is based on a percentage of the Plan Participant’s annual base salary as set forth in the Plan Participant’s individual Plan
Summary.
		
	Bonus Payments:	  	The incentive bonus will be paid on an annual basis as set forth in this Plan and the Plan Participant’s Plan Summary. Payment will be made within one and one-half months of
the end of the fiscal year, and will be subject to applicable payroll taxes and withholdings. Actual bonus payouts will be capped at 150% of the individual target bonus amounts. No portion of the target bonus will be payable under this Plan until
achievement of at least 95% of the performance metric.
		
	Performance
 Metrics:
	  	The performance metric consists of the annual EBITA target under Serena’s revised fiscal year 2014 operating plan approved by the Board of Directors on June 5, 2013. The bonus
payout for the fiscal year will be determined based on actual achievement against the performance metric, as follows:

  

																							
		 	            Achievement Level	  	 	95	% 	 	 	97.5	% 	 	 	100	% 	 	 	102.5	% 	 	 	105	% 
		 	            EBITA Target Bonus Payout	  	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	125	% 	 	 	150	% 

  

			
		
	Proration:	  	The target incentive bonus will be pro-rated based on the number of days that the Plan Participant is employed as a regular, full-time employee of Serena during the fiscal year and
eligible to participate under the Plan. If the Plan Participant’s employment terminates before the end of the fiscal year or prior to the payment of an incentive bonus for the fiscal year, the Plan Participant will not be eligible to receive a
prorated portion of the incentive bonus.
		
	Adjustments:	  	In the event of an acquisition or disposition, restructuring or other extraordinary event impacting Serena’s business or financial performance, the plan administrator may
adjust the applicable performance metric to reflect the potential impact upon Serena’s financial performance.
		
	Plan Provisions:	  	The fiscal year under this Plan commences on February 1, 2013 and ends on January 31, 2014. This Plan supersedes any prior executive annual incentive plans, including the
FY 2014 Executive Annual Incentive Plan approved by the Board of Directors on March 5, 2013 and the FY2013 Executive Annual Incentive Plan. In the event of any conflict between the terms of this Plan and Plan Summary, the terms of this Plan
will control.

			
		
		  	If a Change in Control (as defined in the Amended and Restated 2006 Stock Incentive Plan) should occur prior to the end of fiscal year 2014 and the Plan Participant is employed by
Serena immediately prior to the Change in Control, Serena will pay the Plan Participant a prorated portion of the Plan Participant’s target bonus immediately prior to the Change in Control.
		
		  	The Plan does not represent an employment contract or agreement between Serena and any Plan Participant. The Plan Participant must sign an individual Plan Summary in order to
participate and be eligible to receive a bonus under this Plan. Participation in the Plan does not guarantee participation in other or future incentive plans. Plan structure and participation will be determined on an annual basis.
		
		  	The Plan will be administered by the Compensation Committee of the Board of Directors. The Plan Administrator will have all powers and discretion necessary or appropriate to
administer and interpret the Plan and Plan Summaries. The Plan Administrator reserves the right to modify, suspend or terminate the Plan and/or Plan Summaries for any reason at any time, and to exercise its own judgment and discretion with regard to
determining the achievement of performance metrics and bonus payments. All determinations and decisions by the Plan Administrator will be deemed final and binding upon Plan Participants. The terms of the Plan and Plan Summary may be modified by a
separate written agreement (e.g., offer letter) between Serena and a Plan Participant, provided that the terms of such agreement have been approved by the Plan Administrator or Board of Directors.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]