Exhibit 10.43
EXECUTIVE CHANGE OF CONTROL
AGREEMENT
December 30, 2008
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[Omitted]
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Executive
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RadiSys Corporation, an Oregon
corporation
5445 NE Dawson Creek Parkway
Hillsboro, OR 97124
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the
Company
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1. Employment Relationship.
Executive is currently employed by the Company as Vice President of
Global Operations. Executive and the Company acknowledge that
either party may terminate this employment relationship at any time
and for any or no reason, provided that each party complies with
the terms of this Agreement.
2. Release of Claims. In
consideration for and as a condition precedent to receiving the
severance benefits outlined in this Agreement, Executive agrees to
execute a Release of Claims in the form attached as Exhibit
A (“Release of Claims”). Executive promises to
execute and deliver the Release of Claims to the Company within 21
days (or, if required by applicable law, 45 days) from the last day
of Executive’s active employment. Executive shall forfeit the
severance benefits outlined in this Agreement in the event that he
fails to execute and deliver the Release of Claims to the Company
in accordance with the timing and other provisions of the preceding
sentence or revokes such Release of Claims prior to the
“Effective Date” (as such term is defined in the
Release of Claims) of the Release of Claims.
3. Additional Compensation Upon
Certain Termination Events.
3.1 Change of Control. In the
event of a Termination of Executive’s Employment (as defined
in Section 6.1) (i) by the Company other than for Cause
(as defined in Section 6.2), death or Disability (as defined
in Section 6.4), or (ii) by Executive as a result of a
requirement to accept a position greater than twenty-five
(25) miles from Executive’s current work location or a
position of less total compensation ( i.e. base salary plus
bonus target), and provided any of the events identified in the
preceding clauses (i) and (ii) occurs within 12 months
following a Change of Control (as defined in Section 6.3 of
this Agreement) or within three months preceding a Change of
Control, and contingent upon Executive’s execution of the
Release of Claims without revocation within the time period
described in Section 2 above and compliance with
Section 9, Executive shall be entitled to the following
benefits:
(a) As severance pay and in lieu of
any other compensation for periods subsequent to the date of
termination, the Company shall pay Executive, in a lump sum, an
amount equal to nine (9) months of Executive’s annual
base pay at the highest annual rate in effect at any time within
the 12-month period preceding the date of termination. Severance
pay that is payable under this Agreement shall be paid to Executive
on the date that is six months and one day following Termination of
Executive’s Employment.
(b) As an additional severance
benefit, the Company will provide Executive with up to nine
(9) months of continued coverage pursuant to COBRA under the
Company’s group health plan at the level of benefits (whether
single or family coverage) previously elected by Executive
immediately before the Termination of Executive’s Employment
and to the extent that Executive elects to continue coverage during
such 9-month period.
3.2 Parachute Payments.
Notwithstanding the foregoing, if the total payments and benefits
to be paid to or for the benefit of Executive under this Agreement
would cause any portion of those payments and benefits to be
“parachute payments” as defined in Code
Section 280G(b)(2), or any successor provision, the total
payments and benefits to be paid to or for the benefit of Executive
under this Agreement shall be reduced by the Company to an amount
that would not cause any portion of those payments and benefits to
constitute “parachute payments.”
4. Withholding; Subsequent
Employment .
4.1 Withholding. All payments
provided for in this Agreement are subject to applicable
withholding obligations imposed by federal, state and local laws
and regulations.
4.2 Offset. The amount of any
payment provided for in this Agreement shall not be reduced, offset
or subject to recovery by the Company by reason of any compensation
earned by Executive as the result of employment by another employer
after termination.
5. Other Agreements. If cash
severance pay is payable to Executive under this Agreement, cash
severance pay shall not be payable to Executive under any other
agreement with the Company in effect at the time of termination
(including but not limited to any employment agreement, but
excluding for this purpose any stock option, stock appreciation
right, restricted stock, restricted stock unit, performance share,
performance unit or other similar award agreement that may provide
for accelerated vesting or related benefits).
6. Definitions .
6.1 Termination of
Executive’s Employment. Termination of Executive’s
Employment means that (i) the Company has terminated
Executive’s employment with the Company (including any
subsidiary of the Company) other than for Cause (as defined in
Section 6.2), death or Disability (as defined in
Section 6.4), or (ii) Executive, by written notice to the
Company, has terminated his employment as a result of a requirement
by the Company (including any subsidiary of the Company) that he
accept a position requiring a relocation of greater than
twenty-five (25) miles from his current work location or a
position of less total compensation ( i.e. base salary plus
bonus target). A Termination of Executive’s Employment is
intended to mean a termination of employment which constitutes a
“separation from service” under Code
Section 409A.
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6.2 Cause. Termination of
Executive’s Employment for “Cause” shall mean
termination upon (a) the willful and continued failure by
Executive to perform substantially Executive’s reasonably
assigned duties with the Company (other than any such failure
resulting from Executive’s incapacity due to physical or
mental illness) after a demand for substantial performance is
delivered to Executive by the Board of Directors, the Chief
Executive Officer or the President of the Company which
specifically identifies the manner in which the Board of Directors
believes that Executive has not substantially performed
Executive’s duties or (b) the willful engaging by
Executive in illegal conduct which is materially and demonstrably
injurious to the Company. No act, or failure to act, on
Executive’s part shall be considered “willful”
unless done, or omitted to be done, by Executive without reasonable
belief that Executive’s action or omission was in, or not
opposed to, the best interests of the Company. Any act, or failure
to act, based upon authority given pursuant to a resolution duly
adopted by the Board of Directors shall be conclusively presumed to
be done, or omitted to be done, by Executive in the best interests
of the Company.
6.3 Change of Control. A
Change of Control shall mean that one of the following events has
taken place:
(a) The shareholders of the Company
approve one of the following:
(i) Any merger or statutory plan of
exchange involving the Company (“Merger”) in which the
Company is not the continuing or surviving corporation or pursuant
to which Common Stock would be converted into cash, securities or
other property, other than a Merger involving the Company in which
the holders of Common Stock immediately prior to the Merger
continue to represent more than 50 percent of the voting securities
of the surviving corporation after the Merger; or
(ii) Any sale, lease, exchange, or
other transfer (in one transaction or a series of related
transactions) of all or substantially all of the assets of the
Company.
(b) A tender or exchange offer,
other than one made by the Company, is made for Common Stock (or
securities convertible into Common Stock) and such offer results in
a portion of those securities being purchased and the offeror after
the consummation of the offer is the beneficial owner (as
determined pursuant to Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)),
directly or indirectly, of securities representing more than 50
percent of the voting power of outstanding securities of the
Company.
(c) The Company receives a report on
Schedule 13D of the Exchange Act reporting the beneficial ownership
by any person, or more than one person acting as a group, of
securities representing more than 50 percent of the voting power of
outstanding securities of the Company, except that if such receipt
shall occur during a tender offer or exchange offer described in
(b) above, a Change of Control shall not take place until the
conclusion of such offer.
Notwithstanding anything in the
foregoing to the contrary, no Change of Control shall be deemed to
have occurred for purposes of this Agreement by virtue of any
transaction which results in Executive, or a group of persons which
includes Executive, acquiring, directly or indirectly, securities
representing 20 percent or more of the voting power of outstanding
securities of the Company.
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6.4 Disability.
“Disability” means Executive’s absence from
Executive’s full-time duties with the Company for 180
consecutive days as a result of Executive’s incapacity due to
physical or mental illness, as determined by Executive’s
attending physician and in accordance with the Company’s
Medical Leave of Absence Policy, unless within 30 days after notice
of termination by the Company following such absence Executive
shall have returned to the full-time performance of
Executive’s duties. This Agreement does not apply if the
Executive is terminated due to Disability.
7. Successors; Binding
Agreement. This Agreement shall be binding on and inure to the
benefit of the Company and its successors and assigns. This
Agreement shall inure to the benefit of and be enforceable by
Executive and Executive’s legal representatives, executors,
administrators and heirs.
8. Entire Agreement. The
Company and Executive agree that the foregoing terms and conditions
constitute the entire agreement between the parties relating to the
termination of Executive’s employment with the Company under
the conditions described in Section 3.1, that this Agreement
supersedes and replaces any prior agreements relating to the
matters covered by this Agreement, and that there exist no other
agreements between the parties, oral or written, express or
implied, relating to any matters covered by this
Agreement.
9. Resignation of Corporate
Offices; Reasonable Assistance. Executive will resign
Executive’s office, if any, as a director, officer or trustee
of the Company, its subsidiaries or affiliates and of any other
corporation or trust of which Executive serves as such at the
request of the Company, effective as of the date of termination of
employment. Executive further agrees that, if requested by the
Company or the surviving company following a Change of Control,
Executive will continue his employment with the Company or the
surviving company for a period of up to six months following the
Change of Control in any capacity requested, consistent with
Executive’s area of expertise, provided that Executive
receives the same salary and substantially the same benefits as in
effect prior to the Change of Control. Executive agrees to provide
the Company such written resignation(s) and assistance upon request
and that no severance will be paid until after such resignation(s)
or services are provided.
10. Governing Law. This
Agreement shall be construed in accordance with and governed by the
laws of the State of Oregon, without regard to its conflicts of
laws provisions.
11. Amendment. No provision
of this Agreement may be modified unless such modification is
agreed to in writing signed by Executive and the
Company.
12. Severability. If any of
the provisions or terms of this Agreement shall for any reason be
held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other terms of this Agreement, and this
Agreement shall be construed as if such unenforceable term had
never been contained in this Agreement.
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13. Code Section 409A.
This Agreement and the severance pay and other benefits provided
hereunder are intended to comply with Code Section 409A to the
extent applicable thereto. Notwithstanding any provision of the
Agreement to the contrary, the Agreement shall be interpreted and
construed consistent with this intent. Notwithstanding any
provision of the Agreement to the contrary, the Agreement shall be
interpreted and construed consistent with this intent, provided
that the Company shall not be required to assume any increased
economic burden in connection therewith. Although the Company
intends to administer the Agreement so that it will comply
with