exv10wkv13



 





EXHIBIT 10-k-13




September 4, 2007




Mr. J. Scott Blouin

75 Monterey Pine Drive

Newport Coast, CA 92657





			
	     Re:	 	Amendment to Employment Agreement and 

Separation and Release Agreement





Dear Scott:




     This letter agreement (this “Agreement”) (1) amends the Employment Agreement between you and
Conexant Systems, Inc. (the “Company”) dated December 18, 2002, as amended February 27, 2004 (the
“Employment Agreement”) and (2) sets forth the terms of your separation from employment with
Conexant Systems, Inc. (the “Company”). Except as otherwise specified in Section 1 of this
Agreement, this Agreement will be effective upon the “Effective Date” (as defined in the general
release attached hereto as Exhibit A).




	1.	 	Amendments to Employment Agreement. Section 6(e)(ii) of the Employment Agreement is
amended effective as of September 4, 2007 to read as follows:






     “(ii) if the Executive’s employment is terminated by the Company other than for Cause
or Disability, the Date of Termination shall be the date specified in a separate Separation
and Release Agreement entered into between the Executive and the Company,”




	 	 	In addition, Section 7(a) of the Employment Agreement is amended by Sections 5 through 8 of this
Agreement to reflect the provisions of Section 409A.






	2.	 	Separation from Employment. The Company has elected to terminate your employment
without “cause” in accordance with Section 7(a) of the Employment Agreement. This Agreement
constitutes your “Notice of Termination” under the Employment Agreement. Your last day of
employment as Senior Vice President and Chief Financial Officer shall be September 9, 2007.
From September 10, 2007 through October 12, 2007, your title will be Executive Assistant to
the Chief Executive Officer. Your last day as an active employee of the Company will be
October 12, 2007 (the “Date of Termination”). Thereafter, you will be entitled to the salary
continuation benefits set forth below.






	3.	 	Accrued Obligations. Within thirty days after the Date of Termination, you will be
paid your Annual Base Salary through the Date of Termination and any unused vacation benefits
that you may have accrued through the Date of Termination. You will not accrue any vacation




 









 












	 	 	after the Date of Termination. Any compensation previously deferred by you that is
grandfathered and not subject to the rules of Section 409A will be payable in accordance with
the terms of the plan or arrangement under which the compensation is deferred. Any compensation
previously deferred by you that is subject to the rules of Section 409A will be payable in
accordance with the terms of the plan or arrangement under which the compensation was deferred
as amended to comply with Section 409A. Any other amounts or benefits required to be paid or
provided, or which you are entitled to receive, under any plan, program, policy, practice,
contract or agreement of the Company or its affiliates to the extent unpaid will be payable in
accordance with the terms of the plan or arrangement under which the compensation was deferred.
	 
	4.	 	Continuation Period. Beginning October 13, 2007, you will be placed on personal
leave and will remain on the Company’s payroll as an inactive employee through October 12,
2009 (the “Continuation Period”), although you will be required to provide the Company with
services during the Continuation Period, as requested by the Company, for up to ten (10) hours
per month. During the Continuation Period and subject to the six-month wait for “key
employees” required by Section 409A, you will continue to receive base salary payments and
certain benefits, as set forth in more detail in Sections 5, 6 and 7 below. Upon the
expiration of the Continuation Period, your employment with the Company will be terminated.
	 
	5.	 	April 14, 2008 Payment. On April 14, 2008, you will be paid an amount equal to
$417,500. This amount represents the total of six months of Annual Base Salary for the period
of October 12, 2007 through April 13, 2008, the amount equal to a full year’s target bonus and
an additional amount equal to $60,000. The six months of Annual Base Salary is payable
pursuant to Section 7(a)(ii) of the Employment Agreement and the amount equal to a full year’s
target bonus is payable pursuant to Section 7(a)(iii) of the Employment Agreement, as amended
by this Agreement to comply with Section 409A.
	 
	6.	 	Salary Continuation. From April 14, 2008 through October 12, 2009, you will continue
to be paid your current Annual Base Salary of $325,000 per annum, which will be paid to you
periodically in accordance with the Company’s normal payroll procedures. These amounts are
provided pursuant to Section 7(a)(ii) of the Employment Agreement, as amended by this
Agreement to comply with Section 409A.
	 
	7.	 	Continued Health, Life and Accidental Death & Dismemberment Insurance. During the
Continuation Period, you will be provided with continued coverage under the Company’s medical,
dental, vision, life, and accidental death & dismemberment insurance plans, provided that (A)
to the extent any such benefit is provided via reimbursement to you, no such reimbursement
will be made by the Company later than the end of the year following the year in which the
underlying expense is incurred, (B) any such benefit provided by the Company in any year will
not be affected by the amount of any such benefit provided by the Company in any other year,
subject to any maximum benefit limitations under the applicable plan’s terms, and (C) under no
circumstances will you be permitted to liquidate or exchange any such benefit for cash or any
other benefit. These benefits are provided pursuant to Section 7(a)(iv) of the Employment
Agreement, as amended by this Agreement to comply with Section 409A.




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	8.	 	Equity Arrangements. During the Continuation Period, subject to the terms of the
plan or plans under which the awards were granted, you will continue to vest in all unvested
options to purchase Company Common Stock and shares of restricted Company Common Stock you
hold and you will be entitled to exercise all such vested options during the Continuation
Period and the three month period commencing at the end of the Continuation Period or the
expiration date of the option, whichever is earlier.
	 
	 	 	In the event that you do not exercise any or all of your vested stock options during their
respective exercise periods, all such stock options will terminate upon the expiration of their
respective exercise periods.
	 
	9.	 	No Other Benefits. During the Continuation Period, you will not be eligible to
participate in any Company equity or equity-based plan or program, incentive or bonus
compensation plan or program, 401(k) savings or vacation benefit plan or program. You will
not accrue any vacation benefits during the Continuation Period.
	 
	10.	 	Business Expenses. The Company will reimburse you for any un-reimbursed, reasonable
business expenses incurred by you on or before the Date of Termination, pursuant to the
Company’s reimbursement policies, provided that you present all expense reports to the Company
in accordance with such policies. All such expense reports must be submitted within thirty
days following the Separation Date.
	 
	11.	 	Withholding Taxes and Other Deductions. The Company will withhold from any payments
due to you under this Agreement any applicable federal, state, local, and any other taxes, and
such other deductions as are prescribed by law.
	 
	12.	 	Breach of this Agreement. In the event that you breach any of your obligations under
this Agreement, the Company will have the right to not provide you with, or to cease providing
you with, any of the amounts or benefits that would otherwise be provided to you during the
Continuation Period, including those under Sections 5 through 9 above.
	 
	13.	 	Restrictive Covenants. You acknowledge and agree that you will comply with the
provisions of 12 (Non-Solicitation) and 13 (Confidential Information) of the Employment
Agreement. Those sections are hereby incorporated into this Agreement as if set forth herein.
	 
	14.	 	Return of Company Property. Except for your laptop computer and attendant docking
station and mobile phone provided to you by the Company, you are obligated to return any and
all equipment, products, and property, including but not limited to work files and computers,
either belonging to the Company or associated with your employment with the Company, that are
currently in your possession or under your control, to a designated Company representative on
or prior to the Date of Termination.
	 
	15.	 	Cooperation. During the Continuation Period and thereafter, you will cooperate with
the Company and be reasonably available to the Company with respect to continuing or future
matters arising out of your employment or any other relationship with the Company, whether
such matters are business-related, legal, or otherwise. It is agreed that (a) the
Company will provide you with reasonable advance notice regarding these activities, and
(b) any requests




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	 	 	made hereunder by the Company will be made in good faith and will not unreasonably interfere
with your duties to any subsequent employer.






	16.	 	General Release. As a condition to the effectiveness of this Agreement, you must
execute the general release attached hereto as Exhibit A. This Agreement, and the obligations
hereunder, will not become effective until the “Effective Date” (as defined in the general
release).
	 
	17.	 	Neutral Reference and Verification of Employment. If requested, the Company will
provide your prospective employers with a neutral reference. Generally, such reference is
limited to a verification of your date of hire, last date of employment, and job title with
the Company. If you request, the Company will provide you with further details about its
practice on verifications of employment.
	 
	18.	 	Arbitration. Except to the extent equitable relief is sought by the Company in
accordance with Section 13 above, each suit, action, or proceeding arising out of or relating
to this Agreement, the subject matter of this Agreement, the performance of the parties hereto
of their obligations under this Agreement, or the claimed breach of this Agreement, will be
resolved pursuant to final and binding arbitration before the American Arbitration Association
(“AAA”) in accordance with the AAA’s Rules for the Resolution of Employment Disputes (or the
then equivalent thereof) (the “Rules”). Any such arbitration will be heard in Los Angeles,
California before a single arbitrator selected in accordance with the Rules, provided that the
appropriate background of a potential arbitrator, relevant to the issues to be resolved, will
be given due consideration by the appointing parties. It is intended that any arbitration
under this Section 18 will remain confidential to the maximum extent permitted by law, and to
that end it is agreed by the parties hereto that the facts disclosed in the arbitration, the
issues arbitrated, and the views or opinions of any persons concerning them will not be
disclosed to third persons at any time, except to the extent necessary to enforce an award or
judgment or as required by law or in response to legal process or in connection with such
arbitration, and except any disclosure to attorneys, accountants or other professional
advisors. Judgment on the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof, including, without limitation, courts in the State of California.
	 
	19.	 	Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto with respect to your separation from employment with the Company, and supersedes any
and all prior agreements, oral or written, with respect thereto.
	 
	20.	 	Amendment; Waiver. This Agreement may not be amended, altered, or modified except by
an instrument in writing duly executed by the parties hereto. Neither the waiver by either of
the parties hereto of a breach of or a default under any of the provisions of this Agreement,
nor the failure of either of the parties, on one or more occasions, to enforce any of the
provisions of this Agreement or to exercise any right or privilege hereunder, will thereafter
be construed as a waiver of any subsequent breach or default of a similar nature, or as a
waiver of any such provisions, rights, or privileges hereunder.
	 
	21.	 	Necessary Amendments Due to Internal Revenue Code Section 409A. You and the Company
acknowledge that the requirements of Section 409A are still being developed and interpreted by
government agencies, that certain issues under Section 409A remain unclear at




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	 	 	this time, and that the parties hereto have made a good faith effort to comply with current
guidance under Section 409A. Notwithstanding anything in this Agreement to the contrary, in the
event that amendments to this Agreement are necessary in order to comply with future guidance or
interpretations under Section 409A, including amendments necessary to ensure that compensation
will not be subject to Section 409A, you agree that the Company will be permitted to make such
amendments, on a prospective and/or retroactive basis, in its sole discretion, provided that it
has first negotiated with you on a good faith basis to construct an amendment that would be
mutually satisfactory to the parties hereto.






	22.	 	Governing Law. This Agreement, the rights and obligations of the parties hereto, and
any claims or disputes relating thereto, will be governed by and construed in accordance with
the laws of the State of California without giving effect to its conflict of laws principles.
	 
	23.	 	Acknowledgements. You acknowledge that the amounts, benefits and amendments provided
to you under this Agreement are in excess of any obligations that the Company may otherwise
have to you. You also acknowledge that this Agreement is voluntarily entered into by you in
consideration of the undertakings by the Company as set forth herein and that you have been
advised to consult with an attorney prior to signing this Agreement. This Agreement is
entered into without reliance on any promise or representation, written or oral, other than
those expressly contained herein.





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	24.	 	Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original and all of which shall be deemed to constitute one and the same instrument.
	 
	 	 	Please sign both copies of this letter below, indicating your acceptance.





	 	 	 	 	 
	 	Very truly yours,



CONEXANT SYSTEMS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



AGREED as of the date

first above written




                                                            

J. Scott Blouin





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GENERAL RELEASE AGREEMENT





     FOR AND IN CONSIDERATION OF certain separation benefits set forth in the Amendment to
Employment Agreement and Separation Agreement dated September 4, 2007 between Conexant Systems,
Inc. (the “Company”) and me (the “Separation Agreement”), as amended, I, J. Scott Blouin, agree, on
behalf of myself, my heirs, executors, administrators, and assigns, to release and discharge the
Company and its current and former officers, directors, employees, agents, owners, subsidiaries,
predecessors, divisions, s, parents, successors, and assigns (the “Company Released Parties”) from
any and all manner of actions and causes of action, suits, debts, dues, accounts, bonds, covenants,
contracts, agreements, judgments, charges, claims, and demands whatsoever (“Losses”) which I, my
heirs, executors, administrators, and assigns have, or may hereafter have, against the Company
Released Parties or any of them arising out of or by reason of any cause, matter, or thing
whatsoever from the beginning of the world to the date hereof, including without limitation, my
employment by the Company and the cessation thereof, any predecessor employment agreements, all
matters arising under any federal, state, or local statute, rule, or regulation, or principle of
contract law or common law, including but not limited to, the Worker Adjustment and Retraining
Notification Act of 1988, as amended, 29 U.S.C. §§ 2101 et seq.,
the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. §§ 201 et
seq., the Family and Medical Leave Act of 1993, as amended, 29 U.S.C. §§
2601 et seq., Title VII of the Civil Rights Act of 1964, as
amended, 42 U.S.C. §§ 2000e et seq., the Age Discrimination in Employment
Act of 1967, as amended, 29 U.S.C. §§ 621 et seq. (the “ADEA”), the
Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§ 12101 et
seq., the Employee Retirement Income Security Act of 1974, as amended, 29
U.S.C. §§ 1001 et seq., the National Labor Relations Act of 1935, as amended, 29
U.S.C. §§ 151 et seq., the California Fair Employment and Housing Act,
as amended, Cal. Gov’t Code §§ 12900 et seq., and any other
equivalent federal, state, or local statute; provided, however, that I do not
release or discharge the Company Released Parties (i) from any Losses arising under the ADEA
which arise after the date on which I execute this General Release, (ii) from any claims for
benefits in which I am vested that I may have under the terms of any of the Company’s benefit plans
applicable to me, or (iii) from any claims for a breach by the Company of its obligations
under the Separation Agreement, or any right I may have to enforce the terms of such agreement, or
(iv) any rights to indemnification or directors and officers liability insurance to which I may be
entitled. It is understood that nothing in this General Release is to be construed as an admission
on behalf of the Company Released Parties of any wrongdoing with respect to me, any such wrongdoing
being expressly denied.



     I represent and warrant that I fully understand the terms of this General Release, that I have
had the benefit of advice of counsel or have knowingly waived such advice, and that I knowingly and
voluntarily, of my own free will, without any duress, being fully



 









 







informed, and after due deliberation, accepts its terms and sign the same as my own free act.
I understand that as a result of executing this General Release, I will not have the right to
assert that the Company violated any of my rights in connection with my employment or with the
termination of such employment.



     I acknowledge that I am familiar with Section 1542 of the Civil Code of the State of
California, which provides as follows:




A general release does not extend to claims which the creditor does not
know of or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his
settlement with the debtor.


I hereby waive and relinquish any rights and benefits which I have or may have under Section 1542
of the Civil Code of the State of California, to the full extent permitted by law.




     I affirm that I have not filed, and agree, to the maximum extent permitted by law, not to
initiate or cause to be initiated on my behalf, any complaint, charge, claim, or proceeding against
the Company Released Parties before any federal, state, or local agency, court, or other body
relating to my employment or the cessation thereof, and agree not to voluntarily participate in
such a proceeding. However, nothing in this General Release will preclude or prevent me from
filing a claim with the Equal Employment Opportunity Commission that challenges the validity of
this General Release solely with respect to my waiver of any Losses arising under the ADEA on or
before the date on which I execute this General Release.



     I acknowledge that I have twenty-one (21) days in which to consider whether to execute this
General Release. I understand that such 21-day consideration period may be waived by me and that I
may execute this General Release before the expiration of such consideration period. I understand
that upon my execution of this General Release, I will have seven (7) days after such execution in
which I may revoke my execution of this General Release. In the event of revocation, I must
present written notice of such revocation to Michael H. Vishny at the Company, 4000 MacArthur
Boulevard, West Tower, Newport Beach, CA 92660, Fax (949-483-9462).



     If seven (7) days pass without receipt of such written notice of revocation, this General
Release will become binding and effective on the eighth day (the “Release Effective Date”).



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     This General Release will be governed by the laws of the State of California without giving
effect to its conflict of laws principles.



 


	 	 	 	 	 
	 

J. Scott Blouin

	 	 

Date
	 	 







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