Document:

Fiscal Year 2012 Amended and Restated Executive Corporate Incentive Plan

 Exhibit 10.3 
 Openwave Systems Inc. 
 Fiscal Year (FY) 2012 

Amended and Restated 
 Executive Corporate Incentive Plan (CIP) 
  

 
 Table
of Contents 
  

							
	 1.
	 		 	Plan Objective	  	
	 2.
	 		 	Plan Funding	  	
	 3.
	 		 	Performance Periods	  	
	 4.
	 		 	Incentive Compensation Payout Calculation	  	
	 5.
	 		 	Calculation Example	  	
	 6.
	 		 	Plan Administration	  	
		 	6.1	 	Eligibility	  	
		 	6.2	 	Eligible Earnings	  	
		 	6.3	 	Transfers between CIP and other Company incentive compensation plans	  	
		 	6.4	 	Terminations	  	
		 	6.5	 	Payout Timing	  	
		 	6.6	 	Deductions	  	
		 	6.7	 	Reservation of Right to Amend the CIP	  	
		 	6.8	 	Employment at Openwave	  	
		 	6.10	 	Key Contacts	  	
	 7
	 		 	FAQs	  	

 Plan Objective 

The primary objective of Openwave’s Amended and Restated Executive Corporate Incentive Plan (CIP) is to incent its Executives to lead the Company to
greater profitability and success. Openwave is committed to sharing its success directly with the Executives who make it possible, and the CIP will reward Executives when the Company achieves certain financial objectives. Openwave believes its
financial targets are most likely to be achieved when all of its Executives work together to lead and manage the organization, and that such teamwork will be a natural result of the CIP. 

Plan Funding 
 The CIP is an incentive plan, which will be funded only if the Company achieves certain financial and profitability objectives. These objectives are set out below in Section 4, and they are based
upon the combined performance of all functional units within the Company 
  

	3.	Performance Periods 

 The Performance
Periods under the FY2012 CIP are: 
  

	 	•	 	 First half FY2012: July 1, 2011 through December 31, 2011 

 

	 	•	 	 Second half FY2012: January 1, 2012 through June 30 2012 

4. Incentive Compensation Payout Calculation 

 

																			
	Actual Eligible Base Pay Earnings (for the Performance Period)	  	 	X	  	  	Target Incentive %	  	 	X	  	  	Company Performance Modifier	  	 	=	  	  	Payout

 Where: 
  

	 	•	 	 Actual Eligible Base Pay Earnings refer to the actual gross base pay earnings for each Participant during the Performance Period.

  

	 	•	 	 Target Incentive % - Each Participant is assigned a Target Incentive percentage, and his/her target incentive pay equals his/her Actual
Eligible Base Pay Earnings x his/her Target Incentive %. 

  

	 	•	 	 Company Performance Modifier 

 The Company’s performance against its financial objectives is reflected in the Company Performance Modifier, which is measured by by performance in the Performance Period against the Company’s
Operating Profit and Bookings targets as approved by the Board of Directors in connection with its approval of the Company’s Fiscal 2012 Operating Plan. Notwithstanding the foregoing, the Company’s Operating Profit and Bookings
targets shall be properly adjusted by the Compensation Committee upon the completion of a merger or an acquisition to adequately reflect the impact of such merger or acquisition on the Company’s Operating Profit and Bookings targets, as well as
its impact on the application of the Company Performance Modifier. The maximum Company Performance Modifier is 150%. The Company Performance Modifier is determined as follows: 

 

																									
	 Average of YTD Bookings Achievement % and YTD Operating Profit* Achievement %
	  	 	<80	% 	 	 	80	% 	 	 	90	% 	 	 	100	% 	 	 	110	% 	 	 	125	% 
	 Company Performance Modifier
	  	 	0	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	120	% 	 	 	150	% 

  

	*	Bookings Achievement for each Performance Period is determined based on “net” Bookings period to date, which is the total Bookings amount entered into Cognos
during the applicable Performance Period, less the amount of any transactions that are debooked by Finance during the applicable Performance Period (whether such transactions occurred prior to or during that Performance Period)

	**	Operating Profit for each Performance Period is determined on a non-GAAP basis before CIP payout 

 Note: 
  

	 	(i)	The Company Performance Modifier will not exceed 100% unless Openwave is profitable at non GAAP net income level for the Performance Period (with the accelerated CIP
payouts included). 

	 	(ii)	For Company performance falling within the ranges contained in the achievement table above, the Company Performance Modifier will be determined as follows:

 80%-100% achievement—the Company Performance Modifier will increase 2.5 percent for each additional
percentage point of achievement (for example, if achievement is 92%, the Company Performance Modifier will be 80%); and 

101%-125% achievement = the Company Performance Modifier will increase 2.0 percent for each additional percentage point of achievement
(for example, if achievement is 108%, the Company Performance Modifier will be 116%). 

5. Calculation Example 

 

																							
	 Participant
	 	Actual Eligible
Base Pay
Earnings for the
Performance
Period (H1)	 	 	Job/Level	 	Target
Incentive
%	 	 	Target
Incentive
Amount	 	 	Company
Performance
Modifier	 	 	Actual Half
Year
Payout
to
Participant	 
	Executive	 	$	137,500	  	 	Senior Vice
President	 	 	50	% 	 	$	68,750	  	 	 	105	% 	 	$	72,187.50	  

 6. Plan Administration 

6.1 Eligibility 
 An employee will not be eligible to be a participant in the CIP (“Participant”) unless all of the following apply: 

 

	 	•	 	 He/she is not a Participant under any other Openwave incentive compensation plan; 

 

	 	•	 	 He/she is employed at a Senior Vice President or higher level, or equivalent level; 

 

	 	•	 	 He/she was hired by the Company on or before the last BUSINESS day of the second month of the applicable Performance Period;

  

	 	•	 	 He/she is actively employed by the Company at the end of the applicable Performance Period (employed on the last BUSINESS day of the Performance
Period); 

  

	 	•	 	 He/she is not on a Performance Improvement Plan at any time during the Performance Period; and 

 

	 	•	 	 He/she has executed the Company’s updated CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT on or prior to the last BUSINESS day of the
Performance Period. 

 6.2 Eligible Earnings 

Each Participant’s CIP payout opportunity is a percentage of the Participant’s Actual Eligible Base Pay Earnings while employed in a
CIP-eligible position during the Performance Period. 
 6.3 Transfers between CIP and other
Company incentive compensation plans 
 Employees whose job change results in a change of plan eligibility (e.g. employee moving to/from the
CIP to another Company incentive/sales compensation plan or vice versa) will be eligible for a CIP payout based on their Actual Eligible Base Pay Earnings during the portion of the Performance Period that they worked in a CIP eligible job.

 6.4 Terminations 
 Participants will not be eligible for a CIP payout if their employment is terminated for any reason (including but not limited to, voluntary resignation, reduction in force, or termination
for performance or other reasons) before the last BUSINESS day of the applicable Performance Period (e.g. before December 31, 2010, June 30, 2011; if the last BUSINESS day of a Performance Period is a Company recognized holiday, then
the day before.) 
 Exception: If a Participant is terminated during a Performance Period and is thereafter rehired during the
same Performance Period, the Participant will be credited with prior service and will be eligible for a CIP payout based on his/her Actual Eligible Base Pay Earnings during the Performance Period. 

6.5 Payout Timing 
 CIP payouts typically occur no later than 2 months after the end of the applicable Performance Period. 
 In the event that a Participant dies during a Performance Period or prior to the CIP payout date, the Participant’s beneficiary or estate will be entitled to the payout, if any, that would have been
made to the Participant. 

 6.6 Deductions 

Local, state and federal tax and other withholding will apply to all CIP payouts at the supplemental tax rate, as well as any other individual employee
elections for deductions. 
 6.7 Reservation of Right to Amend the CIP 

Openwave reserves the right to modify, amend, and/or terminate the CIP at any time and for any reason. No amendment, modification, or termination of the
CIP shall be effective without written confirmation by the Company’s CEO or his/her designee. Any oral amendment, modification, or termination of the CIP shall not be effective or binding on the Company, and cannot/should not be relied upon by
any Participant. 
 6.8 Employment at Openwave 

Nothing in this CIP creates or is intended to create a promise or representation of continued employment or an expectation that any amount of compensation
referred to in the CIP will be earned by or due to Participants. All employment with the Company is “at will” and may be terminated by a Participant or the Company at any time, with or without cause or notice. 

6.9 Conflict With Local Law 
 To the extent that any provision of the CIP conflicts with local law in any jurisdiction outside the United States, the CIP will be interpreted and applied in a manner that complies with local law for the
Participants in such jurisdiction(s). 
 6.10 Key Contacts 

If you have any questions regarding this plan, please contact your manager or HR Business Partner. 

 7 FAQs 

 

	Q:	My eligible earnings are less then my half yearly salary? Why? 

  

	A:	There may be several reasons for that. The following events will affect your Actual Eligible Base Pay Earnings: 

 

	 	•	 	 Unpaid Leave of Absence 

  

	 	•	 	 Hire date after the beginning of the Performance Period 

 

	 	•	 	 Transfer into a non-CIP eligible position (from or to a position covered by the Sales Incentive or other variable pay plans)

 If you believe that your Actual Eligible Base Pay Earnings are incorrectly calculated, please login and
check your payroll via Payroll Workcenter (US employees only - http://workcenter.probusiness.com/) and/or check with your payroll contacts in your respective country. The following earnings codes are included in the Actual Eligible Base Pay Earnings
calculation: Salary, Regular, Hourly, Unpaid (usually a negative number that will reduce your earnings), Retro, Vacation, Holiday and Floating Holiday. Please contact your HR Business Partner if any corrections need to be made. 

 

	Q:	Does an Executive’s personal performance affect the size of the incentive payout? 

 

	A:	Our financial targets can be achieved when all Executives lead and manage the organization and work together as a team. Individual performance evaluations will
not change or affect the CIP payout, which is solely a function of the Company performance factors described above. 

  

	Q:	When will CIP payouts occur? 

  

	A:	If earned under the terms of the CIP, payouts will typically occur within two months following the end of the Performance Period. 

 

	Q:	What happens if an employee changes jobs within the Company during the CIP Performance Period? 

 

	A:	If the job change is into a non-CIP position, the Participant’s CIP payout will be based on his/her Actual Eligible Base Pay Earnings during the portion of
the Performance Period that he/she was in a CIP eligible position. If the job change results in a job framework level change, the applicable Target Incentive % will be based on the job framework level at the end of the Performance Period.

  

	Q:	What exactly does non-GAAP mean? 

  

	A:	Openwave publicly reports its financial information in accordance with US Generally Accepted Accounting Principles (GAAP). To facilitate easier comparison of the
company’s operating performance, Openwave also presents financial information that may be considered “non-GAAP financial measures”. The items that are classified as “non-GAAP financial measures” are non-operating in nature
or non-recurring one-offs. 

  

	Q:	Why are the “accelerators” for achievement over 100% only applied when Openwave is profitable at non-GAAP net income levels? 

 

	A:	The reason we need to use the non-GAAP measures is to ensure that the Company is profitable before we pay out on the multipliers (i.e., we take out non-operating
in nature or non-recurring one-offs).Amendment to secured revolving credit facility

 Exhibit 10.4 
 AMENDMENT NO. 5 TO 
 LOAN AND SECURITY AGREEMENT 

This Amendment No. 5 to Loan and Security Agreement (this “Amendment”) is entered into as of this 6th day of September,
2011, by and between Openwave Systems Inc., a Delaware corporation (“Borrower”) and Silicon Valley Bank (“Bank”). Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement
(defined below). 
 Recitals 
 Borrower and Bank have entered into that certain Loan and Security Agreement dated as of January 23, 2009 (as amended to date and as may be further amended, restated, supplement or otherwise modified
from time to time, the “Loan Agreement”), pursuant to which the Bank has agreed to extend and make available to Borrower certain advances of money. 
 Borrower desires that Bank amend the Loan Agreement upon the terms and conditions more fully set forth herein. 
 Subject to the representations and warranties of Borrower, and upon the terms and conditions set forth in this Amendment, Bank is willing to amend the Loan Agreement as specified herein. 

Agreement 

NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound, the parties hereto agree as follows:

  

	 	1.	Amendments to Loan Agreement. 

 1.1 Section 2.1.3 (Foreign Exchange Sublimit). Section 2.1.3 of the Loan Agreement is deleted in its entirety. 

1.2 Section 2.1.4 (Cash Management Services Sublimit). Section 2.1.4 of the Loan Agreement is deleted in its
entirety. 
 1.3 Section 2.2 (Overadvances). Section 2.2 of the Loan Agreement is hereby amended and
restated in its entirety as follows: 
 “If, at any time, the sum of (a) the outstanding principal amount of any
Advances, plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), exceeds the lesser of either the Revolving Line or the Borrowing Base, Borrower shall
immediately pay to Bank in cash such excess.” 
 1.4 Section 4.1 (Grant of Security Interest). The
following is added to the end of Section 4.1 of the Loan Agreement: 

 “Borrower acknowledges that it previously has entered, and/or may in the future enter,
into Bank Services with Bank. Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to
have all such Obligations secured by the first priority security interest granted herein.” 
 1.5
Section 6.7 (Financial Covenants). Subsection (a) (Liquidity Coverage Ratio) of Section 6.7 of the Loan Agreement is hereby amended and restated in its entirety as follows: 

“Liquidity Coverage Ratio. A minimum ratio, measured as of the end of each calendar month, of (i) unrestricted cash,
Cash Equivalents and short and long-term investments (with the exception of auction rate securities), plus 10% of Eligible Accounts to (ii) aggregate Obligations (exclusive of cash management services and foreign exchange contracts), of not
less than 2.00:1.00.” 
 1.6 Section 8.7 (Judgments). Section 8.7 of the Loan Agreement is hereby
amended and restated in its entirety as follows: 
 “One or more judgments, orders, or decrees for the payment of money in
an amount, individually or in the aggregate, of at least $750,000 or with respect to (a) the pending litigation In re Openwave Systems Securities Litigation (Master File 07-1309 (DLC)) in excess of $5,000,000, or (b) a settlement of
the Openwave Systems vs. Myriad France S.A.S. litigation in excess of $12,000,000 (in each case, not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier), shall be rendered against
Borrower and shall remain unsatisfied, unvacated, or unstayed for a period of thirty (30) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction, vacation, or stay of such judgment, order, or
decree);” 
 1.7 Section 13 (Definitions). The following definitions are deleted in their entirety
from Section 13.1 of the Loan Agreement: 
 “Cash Management Services”, “FX Forward
Contract”, “FX Reduction Amount”, and “FX Reserve”. 
 1.8 Section 13
(Definitions). The following definitions in Section 13.1 of the Loan Agreement are hereby amended and restated in their entirety as follows: 
 ““Borrowing Base” is $20,000,000 plus 75% of Eligible Accounts, as determined by Bank from Borrower’s most recent Borrowing Base Certificate; provided, however, Bank may decrease the
foregoing percentage in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral.” 

““Loan Documents” are, collectively, this Agreement, the Collateral Information Certificate, any Bank Services Agreement,
any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement between Borrower and any Guarantor and/or for the benefit of Bank, all as amended, restated, or otherwise modified.” 

 ““Obligations” are Borrower’s obligation to pay when due any debts,
principal, interest, Bank Expenses, and other amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, any interest accruing after Insolvency Proceedings begin and
debts, liabilities, or obligations of Borrower assigned to Bank, and the performance of Borrower’s duties under the Loan Documents.” 
 1.9 Section 13 (Definitions). The following definition is added in proper alphabetical order to Section 13.1 of the Loan Agreement: 

““Bank Services” are any products and/or credit services facilities provided to Borrower by Bank, including,
without limitation, guidance facilities, cash management services (including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange
services as any such products or services may be identified in Bank’s various agreements related thereto (each, a “Bank Services Agreement”).” 
 2. BORROWER’S REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants that:

 (a) immediately upon giving effect to this Amendment (i) the representations and warranties contained in the
Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and
(ii) no Event of Default has occurred and is continuing; 
 (b) Borrower has the corporate power and authority to
execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

(c) the certificate of incorporation and by-laws of Borrower (collectively, “Organizational Documents”)
delivered to Bank on or prior to the date hereof are true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect as of the date hereof, and Borrower shall promptly deliver to
Bank any amendments, supplements, restatements or other modifications to such Organizational Documents; 
 (d) the
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action on the part of Borrower;

 (e) this Amendment has been duly executed and delivered by the Borrower and is the binding obligation of Borrower,
enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or
affecting creditors’ rights; and 

 (f) as of the date hereof, Borrower has no defenses against the obligations to pay
any amounts under the Obligations. Borrower acknowledges that Bank has acted in good faith and has conducted in a commercially reasonable manner its relationships with Borrower in connection with this Amendment and in connection with the Loan
Documents. 
 Borrower understands and acknowledges that Bank is entering into this Amendment in reliance upon, and in partial consideration
for, the above representations and warranties, and agrees that such reliance is reasonable and appropriate. 
 3.
LIMITATION. The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a forbearance, waiver or modification of any other term or condition of the Loan
Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which Bank may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to
therein; (b) to be a consent to any future amendment or modification, forbearance or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof; or
(c) to limit or impair Bank’s right to demand strict performance of all terms and covenants as of any date. Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect. 

4. EFFECTIVENESS. This Amendment shall be deemed effective upon the satisfaction of all the
following conditions precedent: 
 4.1 Amendment. Borrower and Bank shall have duly executed and delivered this
Amendment to Bank. 
 4.2 Waiver Fee. Borrower shall have paid Bank an amendment fee in the amount of $7,500.

 4.3 Payment of Bank Expenses. Borrower shall have paid all Bank Expenses (including all reasonable attorneys’
fees and reasonable expenses) incurred through the date of this Amendment 
 5.
COUNTERPARTS. This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a
single instrument. All counterparts shall be deemed an original of this Amendment. 
 6.
INTEGRATION. This Amendment and any documents executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior
agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing
statements or other agreements or instruments filed by Bank with respect to Borrower shall remain in full force and effect. 

7. GOVERNING LAW; VENUE. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California. 

[SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the
date first written above. 
  

					
	 Borrower:
	  	Openwave Systems Inc.,
 a Delaware
corporation

			
		  	By	  	Anne K. Brennan /s/
			
		  	Name:	  	Anne K. Brennan
		  	Title:	  	Chief Financial Officer
		
	 Bank:
	  	Silicon Valley Bank
			
		  	By	  	Tom Smith /s/
		  	Name:	  	Tom Smith
		  	Title:	  	Managing Director

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