WIND RIVER SYSTEMS INC
AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>dex105.htm
<DESCRIPTION>AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Amendment to Executive Employment Agreement</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.5 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>WIND RIVER SYSTEMS, INC. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This Amendment to the Executive Employment Agreement (the &#147;Amendment&#148;) is made effective as of the last date signed below, by and between Wind
River Systems, Inc. (the &#147;Company&#148;), and Kenneth R. Klein (the &#147;Executive&#148;). </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>RECITALS </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Company and Executive entered into that certain Executive Employment Agreement dated November&nbsp;5, 2003 (the
&#147;Agreement&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Company and Executive desire to amend the Agreement to comply with the requirements of
Section&nbsp;409A of the Internal Revenue Code of 1986, as amended. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>NOW, THEREFORE</B>, the Company and Executive agree that in
consideration of the foregoing and the promises and covenants contained herein, the parties agree as follows: </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AGREEMENT </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. <U>Annual Performance Bonus</U>. Section&nbsp;2.2 of the Agreement, entitled &#147;Annual Performance Bonus,&#148; is hereby amended in its
entirety to read as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%;padding-bottom:3px;line-height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2"><B>2.2 Annual Performance Bonus</B>. Executive shall be
eligible for an annual performance bonus for each fiscal year Executive is employed by the Company. The amount of Executive&#146;s annual performance bonus will be determined by the Board based on certain measurable goals, including a target for
on-plan performance and performance in excess of plan, established by mutual agreement between the Board and Executive before or within 90 days after the commencement of each fiscal year of the Company (the &#147;Performance Criteria&#148;);
<I>provided</I>, <I>however</I>, that the annual performance bonuses for on-target performance shall be no less than fifty percent (50%)&nbsp;of Executive&#146;s annual base salary for such fiscal year, with appropriate adjustments for performance
that is in excess of or under target. Executive&#146;s bonus will be paid out in accordance with the Company&#146;s standard practice, but in no event later than two and one-half (2<FONT SIZE="1"><SUP>&nbsp;1</SUP></FONT><FONT SIZE="2">/</FONT><FONT
SIZE="1">2</FONT><FONT FACE="Times New Roman" SIZE="2">)&nbsp;months following the end of the Company&#146;s fiscal year in which the bonus is earned by Executive. No bonus is guaranteed to Executive, and any bonus is subject to the approval of the
Board. </FONT></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <U>Severance Benefits for Termination Without Cause</U>. Section&nbsp;6.3(b) of the Agreement is hereby amended in its
entirety to read as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(b)</B> reimbursement of the cost of continued health insurance coverage for Executive and
Executive&#146;s eligible dependents, if Executive elects continued coverage under federal COBRA or any state equivalent, for a period of 12 months from the termination date. Such reimbursements shall be made within thirty (30)&nbsp;days of the
premium payment; </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. <U>Severance Benefits for Change of Control Termination</U>. Section&nbsp;7.2(a)(ii) of the Agreement
is hereby amended in its entirety to read as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(ii) reimbursement of the cost of continued health insurance coverage
for Executive and Executive&#146;s eligible dependents, if Executive elects continued coverage under federal COBRA or any state law equivalent, for a period of 24 months from the termination date. Such reimbursements shall be made within thirty
(30)&nbsp;days of the premium payment; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. <U>Parachute Payments</U>. Section&nbsp;7.3 of the Agreement, entitled &#147;Parachute
Payments,&#148; is hereby amended in its entirety to read as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2"><B>7.3 Parachute Payments</B>. If any payment or benefit Executive
would receive pursuant to a Change of Control from the Company or otherwise, but determined without regard to any additional payment required under this Section&nbsp;7.3, (&#147;Payment&#148;) would (i)&nbsp;constitute a &#147;parachute
payment&#148; within the meaning of Section&nbsp;280G of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;), and (ii)&nbsp;be subject to the excise tax imposed by Section&nbsp;4999 of the Code or any interest or penalties payable
with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the &#147;Excise Tax&#148;), then Executive shall be entitled to receive from the Company an additional
payment (the &#147;Gross-Up Payment,&#148; and any iterative payments pursuant to this paragraph also shall be &#147;Gross-Up Payments&#148;) in an amount that shall fund the payment by Executive of any Excise Tax on the Payment, as well as all
income and employment taxes on the Gross-Up Payment, any Excise Tax imposed on the Gross-Up Payment and any interest or penalties imposed with respect to income and employment taxes imposed on the Gross-Up Payment. For this purpose, all income taxes
will be assumed to apply to Executive at the highest marginal rate. Any Gross-Up Payment shall be paid to Executive, or for his benefit, within 15 days following receipt by the Company of the report of the accounting firm described in
Section&nbsp;7.3(b) below, but in no event later than the end of the Executive&#146;s taxable year following the taxable year in which the Executive remitted the applicable taxes. In the event of any dispute, this paragraph shall be interpreted as
providing additional payments to Executive or for his benefit such that after receipt of all payments and benefits, Executive is in the same-after tax position as if no Excise Tax had been imposed on the Payment. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(a) </B>The accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change
of Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is also serving as accountant or auditor for the individual, entity or group which will control the Company upon the occurrence of a Change of
Control under Section&nbsp;7.1(b), (c)&nbsp;or (d), the Company shall appoint a nationally recognized accounting firm other than the accounting firm engaged by the Company for general audit purposes to make the determinations required hereunder. The
Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">-2- </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(b) </B>The accounting firm engaged to make the determinations hereunder shall provide
its calculations, together with detailed supporting documentation, to the Company and Executive within thirty (30)&nbsp;calendar days after the date on which such accounting firm has been engaged to make such determinations or such other time as
requested by the Company or Executive. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, it shall furnish the Company and Executive with an opinion reasonably acceptable to Executive that no Excise Tax will
be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. <U>Code Section&nbsp;409A</U>. The following shall be added as Section&nbsp;10 of the Agreement: </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2"><B>10. Code Section&nbsp;409A</B>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B>(a)</B> Notwithstanding anything to the contrary in this Agreement, if Executive is a &#147;specified employee&#148; within the meaning of Section&nbsp;409A of the Code, and the final regulations and any guidance promulgated thereunder
(&#147;Section 409A&#148;) at the time of Executive&#146;s termination (other than due to death), then the cash severance benefits payable to Executive under this Agreement, if any, and any other severance payments or separation benefits that may be
considered deferred compensation under Section&nbsp;409A (together, the &#147;Deferred Compensation Separation Benefits&#148;) otherwise due to Executive on or within the six (6)&nbsp;month period following Executive&#146;s termination shall accrue
during such six (6)&nbsp;month period and shall become payable in a lump sum payment on the date six (6)&nbsp;months and one (1)&nbsp;day following the date of Executive&#146;s termination of employment. All subsequent payments, if any, shall be
payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following his termination but prior to the six (6)&nbsp;month anniversary of his date of
termination, then any payments delayed in accordance with this Section shall be payable in a lump sum as soon as administratively practicable after the date of Executive&#146;s death and all other Deferred Compensation Separation Benefits shall be
payable in accordance with the payment schedule applicable to each payment or benefit. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(b)</B> It is the intent of this
Agreement to comply with the requirements of Section&nbsp;409A so that none of the severance payments and benefits to be provided hereunder shall be subject to the additional tax imposed under Section&nbsp;409A, and any ambiguities herein shall be
interpreted to so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional
tax or income recognition under Section&nbsp;409A prior to actual payment to Executive. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(c) </B>Notwithstanding any
other provisions of this Agreement, Executive&#146;s receipt of severance payments and benefits under this Agreement is conditioned upon Executive signing and not revoking the Release and subject to the Release becoming effective within sixty
(60)&nbsp;days following Executive&#146;s termination of employment (the &#147;Release Period&#148;). No severance will be paid or provided until the Release becomes effective. No severance will be paid or provided unless the Release becomes
effective during the Release Period. In the </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">-3- </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%">
<FONT FACE="Times New Roman" SIZE="2">event Executive&#146;s employment termination occurs on or after November&nbsp;1 of any year, any severance will be paid in arrears on the first payroll date
to occur during the following calendar year, or such later time as required by the payment schedule applicable to each payment or benefit) or Code Section&nbsp;409A. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">6. <U>Full Force and Effect</U>. To the extent not expressly amended hereby, the Agreement shall remain in full force and effect. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">7. <U>Entire Agreement</U>. This Amendment and the Agreement constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8. <U>Successors and Assigns</U>. This Amendment and the rights and obligations of the parties hereunder shall inure to the benefit of, and be binding
upon, their respective successors, assigns, and legal representatives. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. <U>Counterparts</U>. This Amendment may be executed in
counterparts, all of which together shall constitute one instrument, and each of which may be executed by less than all of the parties to this Amendment. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">10. <U>Governing Law</U>. This Amendment shall be governed in all respects by the internal laws of California, without regard to principles of conflicts of law. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11. <U>Amendment</U>.&nbsp;Any provision of this Amendment may be amended, waived or terminated by a written instrument signed by the Company and
Executive. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(</B><B><I>Signature page follows</I></B><B>) </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">-4- </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0">

<TR>
<TD WIDTH="47%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="4%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="47%"></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"><B>KENNETH R. KLEIN</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"><B>WIND RIVER SYSTEMS, INC.</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Kenneth R. Klein</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Ian Halifax</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><I>Signature</I></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"><I>Signature</I></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT SIZE="">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">Ian Halifax</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"><I>Print Name</I></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Date: 10/16/08</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">CFO</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"><I>Print Title</I></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Date: <U>16 October</U>, 2008</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><I>(Signature page to Amendment to Klein Agreement) </I></B></FONT></P>


</BODY></HTML>
</TEXT>
</DOCUMENT>
