|
EXHIBIT 10.1
AGREEMENT AND GENERAL RELEASE
This Agreement and General Release ("Agreement") is entered into
by and between TEKELEC, including for purposes of this Agreement
all of its subsidiary, affiliated, and related entities
(hereinafter referred to as "Tekelec") and JAY WHITEHURST
("Employee") and is effective as of the Closing Date of the SSG
Transaction as defined below.
RECITALS
A. Employee has been employed as an officer in Tekelec's
switching solutions group ("SSG") at Tekelec's Morrisville, North
Carolina location.
B. Employee and Tekelec are parties to a letter agreement dated
November 10, 2006, providing for Employee's receipt of a Completion
Bonus under certain conditions including the closing of a sale or
other divestiture by Tekelec of the SSG business.
C. Tekelec has entered into an Acquisition Agreement dated March
20, 2007, whereby Tekelec has agreed to sell the SSG Business to
GenBand, Inc. (hereinafter referred to as the "SSG Transaction.)
The SSG Transaction is scheduled to close on April 21, 2007. As a
result of the SSG Transaction, Employee will be separating from
Tekelec and joining GenBand.
D. As more fully set forth in Section 19 below, Employee was
provided with this Agreement on April 20, 2007, has been given
forty-five days to consider whether to sign it, has
been encouraged to consult with an attorney of his choice before
signing it, and will have seven (7) days to revoke this agreement
after having signed it.
E. Employee has received independent advice concerning the tax
consequences of the benefits payable under this Agreement including
Section 409A of the Internal Revenue Code (the "Code"). Although
Tekelec desires to cooperate with Employee in an effort to minimize
any adverse tax consequences to Employee, Tekelec has not made any
representations regarding, nor indemnified Employee with respect to
any tax liabilities that may be imposed on him in connection with
the payments made under this Agreement.
THEREFORE, having read, understood and voluntarily consented to
the terms and conditions set forth below, the parties have entered
into the following:
AGREEMENTS
1. Service through Closing Date. Tekelec's obligations
under this Agreement are
|
Jay Whitehirst
|
1
|
Initials _____
_____
|
subject to the Closing of the SSG Transaction as
defined in Section 3.2 of the Acquisition Agreement between Tekelec
and GenBand, Inc.
2. Completion Bonus. Provided Employee enters into this
Agreement within the time period specified in Paragraph 19(a)
below, returns all Tekelec property and confidential information in
Employee's possession, and complies with all of the terms of this
Agreement, Employee will receive a Completion Bonus in the amount
of $750,000 less legal deductions and withholdings. Tekelec agrees
to issue two lump sum payments to Employee, each of which shall be
mailed to Employee's last home address in Employee's personnel
file, or such other address as Employee may specify in writing. The
first lump sum payment in the amount of $450,000 shall be made on
the last day of the month in which Employee's separation from
service with Tekelec occurs. The second lump sum payment in the
amount of $300,000 shall be made on the last day of the sixth month
period commencing on the first day after the day on which
Employee's separation from service with Tekelec occurs. For
purposes of Code Section 409A, Employee's termination of employment
with Tekelec shall be considered a separation from service. Tekelec
makes no representations concerning the tax consequences of said
payments under Code Section 409A. Employee shall be responsible for
any and all tax liabilities that may arise in connection with said
payment including without limitation Code Section 409A.
3. Waiver of Benefits under Tekelec Officer Severance
Plan. In consideration for the Completion Bonus and in
accordance with the terms of the Retention and Incentive Package
dated November 10, 2006, Employee waives all rights and claims to
benefits of any kind arising under the Tekelec Officer Severance
Plan.
4 General Release of Claims . In consideration for the
payment described in Paragraph 2 above, which Employee acknowledges
is more than Employee is otherwise entitled to receive, Employee
knowingly and voluntarily waives and releases all rights and
claims, known and unknown, which Employee may have against Tekelec,
or any of its current or former affiliates, officers, directors,
shareholders, managers, employees, agents, insurers or
representatives, predecessors, successors or assigns ("Releasees"),
relating to any cause, matter or thing arising on or at any time
before the Effective Date or in connection with Employee's
departure from Tekelec, including without limitation Employee's
employment relationship with Tekelec and the termination thereof,
including but not limited to all rights and claims for
compensation, incentives, bonuses or benefits for services
rendered, any right or claim arising under the Officer Severance
Plan or other severance policy or program maintained by Tekelec;
any claim under the Age Discrimination in Employment Act, any claim
under the Civil Rights Act of l964, the Family and Medical Leave
Act, the Americans with Disabilities Act, the Employee Retirement
Income Security Act, the Worker Adjustment and Relocation Act
("WARN"), the state laws of Texas, California, North Carolina,
Massachusetts, or any other federal, state or local law or
regulation, contract, or policy regulating employers, employees or
the employment relationship and/or prohibiting harassment,
retaliation, discrimination, wrongful discharge, emotional
distress,
|
Jay Whitehirst
|
2
|
Initials _____
_____
|
fraud or defamation or other personal injury and
any remedy for such claims. Nothing contained in this Paragraph 4
shall affect any rights, claims or causes of action which Employee
may have (a) with respect to his outstanding stock options,
warrants or other stock subscription rights to purchase Tekelec
Common Stock or other securities under the terms and conditions
thereof; (b) as a shareholder of Tekelec; (c) to
indemnification by Tekelec, to the extent required under the
provisions of Tekelec's Articles of Incorporation, Tekelec's
Bylaws, the California General Corporation Law, insurance or
contracts, with respect to matters relating to Employee's prior
service as a director, an officer, employee and agent of Tekelec;
and (d) with respect to Tekelec's performance of this Agreement.
Further, Employee waives specifically any and all rights or claims
he has or may have under the ADEA and/or the OWBPA, the Worker
Adjustment and Retraining Notification ("WARN") Act, and
acknowledges that such waiver is given voluntarily in exchange for
certain consideration included in the benefits being paid pursuant
to this Agreement.
5. Unknown Claims . Employee understands that the release
of claims set forth in Paragraph 4 above is intended to be
comprehensive in scope and to cover claims that the Employee knows
about and those Employee may not foresee or know about. Therefore,
Employee expressly waives all rights under Section 1542 of the
California Civil Code, or any similar law in the States of Texas,
North Carolina, or any other jurisdiction. Section 1542 of the
California Civil Code provides as follows:
For this purpose, "creditor" refers to Employee and "debtor"
refers to Tekelec and all Releasees as defined in Paragraph 4
above.
6. Covenant Not to Sue on Matters Released. Employee
covenants that he will not make, assert or maintain against any
person or entity that Employee has released in this Agreement, any
claim, demand, action, cause of action, suit or proceeding arising
out of or in connection with the matters herein released, including
but not limited to any claim or right under the ADEA, the OWBPA, or
any other federal or state statute or regulation. Employee
represents and warrants that he has not assigned or transferred,
purported to assign or transfer, and will not assign or transfer,
any matter or claim herein released. Employee represents and
warrants that he knows of no other person or entity which claims an
interest in the matters or claims herein released. Employee agrees
to, and shall at all times, indemnify and hold harmless each person
and entity that Employee has released in this Agreement against any
claim, demand, damage, debt, liability, account, action or cause of
action, or cost or expense, including attorneys' fees, resulting or
arising from any breach of the representations, warranties and
covenants made
|
Jay Whitehirst
|
3
|
Initials _____
_____
|
herein.
7. 401(k) Plan. Employee's vested benefits under the
Tekelec 401(k) Plan will be distributed to Employee in accordance
with the terms of the Plan and applicable law. Tekelec will
accelerate the vesting of any contributions made by Tekelec with
respect to Employee that have not vested because Employee has not
attained five years of service as of the Termination Date.
8. Stock Options. Employee's rights with respect to stock
options issued to Employee shall be in accordance with the
applicable stock option plan pursuant to which such option(s) were
granted, the stock option agreement(s) executed by Employee, and
applicable securities laws.
9. Proprietary Information,
Confidential Information and Trade Secrets
. Employee hereby recognizes,
acknowledges and agrees that Tekelec is the owner of proprietary
rights in certain confidential sales and marketing information,
programs, tactics, systems, methods, processes, compilations of
technical and non-technical information, records and other
business, financial, sales, marketing and other information and
things of value. To
|