Document:

EX-10.1

 

Exhibit 10.1

AGREEMENT

     This Agreement, made as of the 12th day of July, 2005 by and between TOLLGRADE COMMUNICATIONS,
INC., a Pennsylvania corporation (the “Corporation”) and Richard Bair, an individual residing in
the Commonwealth of Pennsylvania and an employee of the Corporation (the “Executive”).

WITNESSETH:

     WHEREAS, the Board of Directors of the Corporation has determined that it is in the best
interests of the Corporation to enter into this Agreement with the Executive to provide for
compensation of the Executive upon termination of employment under certain circumstances relating
to a change in control of the Corporation; and

     WHEREAS, the Executive desires to obtain such benefits in the event the Executive’s employment
is terminated under the circumstances provided herein.

     NOW, THEREFORE, in consideration of the covenants and premises contained herein, and intending
to be legally bound hereby, the parties hereto agree as follows:

     1. Definition of Terms. The following terms when used in this Agreement shall have the
meaning hereafter set forth:

“Annual Salary Adjustment Percentage” shall mean the mean average percentage increase in
base salary for all elected officers of the Corporation during the two full calendar years
immediately preceding the time to which such percentage is being applied; provided however,
that if after a Change-in-Control, as hereinafter defined, there should be a significant
change in the number of elected officers of the Corporation or in the manner in which they
are compensated, then the foregoing definition shall be changed by substituting for the
phrase “elected officers of the Corporation” the phrase “persons then performing the
functions formerly performed by the elected officers of the Corporation.”

“Cause for Termination” shall mean:

	 	(a)	 	the deliberate and intentional failure by the Executive to devote substantially
his entire business time and best efforts to the performance of his duties (other than
any such failure resulting from the Executive’s incapacity due to physical or mental
illness or disability) after a demand for substantial performance is delivered to the
Executive by the Board of Directors which specifically identifies the manner in which
the Board of Directors believes that the Executive has not substantially performed his
duties,
	 
	 		 	or

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	 	(b)	 	wilfully engaging by the Executive in conduct which constitutes a fraud against
the Corporation or a material breach of this Agreement,
	 
	 		 	or
	 
	 	(c)	 	the Executive’s conviction of any crime which constitutes a felony.

For purposes of this definition, no act, or failure to act, on the Executive’s part shall be
considered “deliberate and intentional” or “willfully” unless done, or omitted to be done,
by the Executive not in good faith and without reasonable belief that his action or omission
was in the best interests of the Corporation.

“Change-in-Control” shall mean the determination (which may be made effective as of a
particular date specified by the Board of Directors of the Corporation) by the Board of
Directors of the Corporation, made by a majority vote that a change in control has occurred,
or is about to occur. Such a change shall not include, however, a restructuring,
reorganization, merger, or other change in capitalization in which the Persons who own an
interest in the Corporation on the date hereof (the “Current Owners”)(or any individual or
entity which receives from a Current Owner an interest in the Corporation through will or
the laws of descent and distribution) maintain more than a sixty-five percent (65%) interest
in the resultant entity. Regardless of the Board’s vote or whether or not the Board votes,
a Change-in-Control will be deemed to have occurred as of the first day any one (1) or more
of the following subparagraphs shall have been satisfied:

	 	(a)	 	Any Person (other than the Person in control of the Corporation as of the date
of this Agreement, or other than a trustee or other fiduciary holding securities under
an employee benefit plan of the Corporation, or a corporation owned directly or
indirectly by the stockholders of the Corporation in substantially the same proportions
as their ownership of stock of the Corporation), becomes the beneficial owner, directly
or indirectly, of securities of the Corporation representing more than thirty five
percent (35%) of the combined voting power of the Corporation’s then outstanding
securities; or
	 
	 	(b)	 	The stockholders of the Corporation approve:

	 	(i)	 	A plan of complete liquidation of the Corporation;
	 
	 	(ii)	 	An agreement for the sale or disposition of all or
substantially all of the Corporation’s assets; or
	 
	 	(iii)	 	A merger, consolidation, or reorganization of the Corporation with or
involving any other corporation, other than a merger, consolidation, or
reorganization that would result in the voting securities of the Corporation
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the

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	 	 	 	surviving entity) at least sixty-five percent (65%) of the combined voting
power of the voting securities of the Corporation (or such surviving entity)
outstanding immediately after such merger, consolidation, or reorganization.

However, in no event shall a Change in Control be deemed to have occurred, with respect to
the Executive, if the Executive is part of a purchasing group which consummates the
Change-in-Control transaction. The Executive shall be deemed “part of the purchasing group”
for purposes of the preceding sentence if the Executive is an equity participant or has
agreed to become an equity participant in the purchasing company or group (except for (i)
passive ownership of less than five percent (5%) of the voting securities of the purchasing
company; or (ii) ownership of equity participation in the purchasing company or group which
is otherwise deemed not to be significant, as determined prior to the Change-in-Control by a
majority of the non-employee continuing Directors of the Board of Directors of the
Corporation).

“Date of Termination” shall mean:

	 	(a)	 	if the Executive’s employment is terminated for Disability, the date that a
Notice of Termination is given to the Executive;
	 
	 	(b)	 	if the Executive terminates due to his death or Retirement, the date of death
or Retirement, respectively;
	 
	 	(c)	 	if the Executive decides to terminate employment upon Good Reason for
Termination, the date following such decision specified by the Corporation after it has
been notified of the Executive’s decision to terminate employment; or
	 
	 	(d)	 	if the Executive’s employment is terminated for any other reason, the date on
which such termination becomes effective pursuant to a Notice of Termination.

“Disability” shall mean such incapacity due to physical or mental illness or injury as
causes the Executive to be unable to perform his duties with the Corporation during 180
consecutive days.

“Good Reason for Termination” shall mean the occurrence of:

	 	(a)	 	without the Executive’s express written consent, the assignment to the Executive
of any duties materially and substantially inconsistent with his positions, duties,
responsibilities and status with the Corporation immediately prior to a
Change-in-Control, or a material change in his reporting responsibilities, titles or
offices as in effect immediately prior to a Change-in-Control, or any removal of the
Executive from or any failure to re-elect the Executive to any of such positions,
except in connection with the termination of the Executive’s employment due to Cause
for

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	 	 	 	Termination, Disability or Retirement (as hereinafter defined) or as a result of the
Executive’s death;
	 
	 	(b)	 	(i) a reduction by the Corporation prior to a Change-in-Control in the
Executive’s base salary unless such reduction is the result of the Board of Directors
of the Corporation determining that the Executive has not adequately discharged his
duties;
	 
	 	 	 	(ii) a reduction by the Corporation after a Change-in-Control in the Executive’s
base salary as in effect immediately prior to any Change-in-Control or a failure by
the Corporation after a Change-in-Control to increase the Executive’s base salary by
the Annual Salary Adjustment Percentage;
	 
	 	(c)	 	a failure by the Corporation to continue to provide incentive compensation
comparable to that provided by the Corporation immediately prior to any
Change-in-Control;
	 
	 	(d)	 	a failure by the Corporation after a Change-in-Control to continue in effect
any benefit or compensation plan, stock option plan, pension plan, life insurance plan,
health and accident plan or disability plan in which the Executive is participating
immediately prior thereto (provided, however, that there shall not be deemed to be any
such failure if the Corporation substitutes for the discontinued plan, a plan providing
the Executive with substantially similar benefits) or the taking of any action by the
Corporation which would adversely affect the Executive’s participation in or materially
reduce the Executive’s benefits under any of such plans or deprive the Executive of any
material fringe benefit enjoyed by the Executive immediately prior to a
Change-in-Control (provided, however, that any act or failure to act by the Corporation
that is on a plan-wide basis, i.e., it similarly affects all employees of the
Corporation or all employees eligible to participate in any such plan, as the case may
be, shall not constitute Good Reason for Termination);
	 
	 	(e)	 	the failure of the Corporation to obtain the assumption of this Agreement by
any successor as contemplated in Section 11(c) hereof;
	 
	 	(f)	 	any purported termination of the employment of the Executive by the Corporation
which is not (i) due to the Executive’s Disability, Retirement (as hereinafter
defined) or Cause for Termination, or (ii) effected as a Notice of Termination, as
defined herein; or
	 
	 	(g)	 	the Corporation’s requiring the Executive to be based anywhere other than the
Corporation’s executive offices at which the Executive has his principal office
immediately prior to a Change-in-Control or executive offices located within 50 miles
of the location of the Corporation’s executive offices immediately prior to a
Change-in-Control, except for required travel on the Corporation’s business to an

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	 	 	 	extent substantially consistent with the Executive’s present business travel
obligations.

“Notice of Termination” shall mean a written statement which sets forth the specific reason
for termination and, if such is claimed to be a Cause for Termination or Good Reason for
Termination, in reasonable detail the facts and circumstances which indicate that such is
Cause for Termination or Good Reason for Termination.

“Options” shall mean any stock options issued pursuant to any present or future stock option
plan of the Corporation.

“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Securities
Exchange Act of 1934, as in effect on the date hereof and used in Sections 13(d) and 14(d)
thereof, including a “group” as defined in Section 13(d) thereof.

“Retirement” shall mean the termination of the Executive’s employment after age 65 or in
accordance with any mandatory retirement arrangement with respect to an earlier age agreed
to by the Executive.

“Stock Appreciation Right” shall mean any stock appreciation rights issued pursuant to any
stock option plan of the Corporation or any future stock appreciation rights plan.

     2. Terms of Employment. The Executive acknowledges that this Agreement does not
constitute an employment contract and that the Executive’s employment relationship with the
Corporation is at-will and not for any particular period. Rather, this Agreement is only intended
to set forth certain liquidated damages to be paid in the event of termination of the Executive
upon the terms and conditions specified herein.

     3. Term of Agreement. The initial term of this Agreement shall be for a period of four
(4) years. Upon expiration of the initial term, the Company shall, in its sole discretion,
determine whether this Agreement shall be renewed upon such terms it deems advisable.

     4. Payments Following Termination of Employment Upon a Change-in-Control.

	 	(a)	 	If the Executive’s employment with the Corporation shall be terminated:

	 	(i)	 	due to the Executive’s death,
	 
	 	(ii)	 	by the Executive other than the Executive’s having terminated
for Good Reason for Termination following a Change-in-Control, or
	 
	 	(iii)	 	by the Corporation due to Cause for Termination or for Disability or
Retirement,

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	 	 	 	then the Corporation shall have no obligations to the Executive other than to pay
the Executive any unpaid portion of base salary due until the Date of Termination
and any other sums due in accordance with the then various policies, practices and
benefit plans of the Corporation.
	 
	 	(b)	 	If the Executive’s employment with the Corporation shall have terminated during
the period commencing six months prior to the date of a Change-in-Control and ending on
the third anniversary of a Change-in-Control other than in the circumstances described
in subsection (a) above, then the Corporation shall pay on or before the fifth day
following the Date of Termination (or if the Date of Termination preceded the date of
the Change-in-Control, on or before the fifth day following the date of the
Change-in-Control), to the Executive the following sums:

	 	(i)	 	in cash any unpaid portion of the Executive’s full base salary
for the period from the last period for which the Executive was paid to the
Date of Termination, or the date of the Change-in-Control, as the case may be;
and
	 
	 	(ii)	 	an amount in cash as liquidated damages for lost future
renumeration equal to the product obtained by multiplying

	 	(A)	 	the lesser of

	 	(1)	 	two, or
	 
	 	(2)	 	a number equal to the number of
calendar months remaining from the Date of Termination to the
date on which the Executive is 65 years of age (or, if earlier,
the age agreed to by the Executive pursuant to any prior
arrangement) divided by twelve, or
	 
	 	(3)	 	a number equal to the greater of
(i) one (1.0) or (ii) thirty six (36) less the number of
completed months commencing after the date of the
Change-in-Control during which the Executive was employed by the
Corporation and did not have Good Reason for Termination times
(iii) one-twelfth (1/12)
	 
	 	 	 	times

	 	(B)	 	the sum of

	 	(1)	 	the greater of

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	 	(i)	 	the Executive’s
annual base salary for the year in effect on the Date of
Termination (provided that in the case of Termination
for Good Reason by the Executive the date immediately
preceding the date of the earliest event which gave rise
to the Termination for Good Reason by the Executive
shall be used instead of the Date of Termination)

	 		 	or

	 	(ii)	 	the Executive’s
annual base salary for the year in effect on the date of
the Change-in-Control;

	 	 	 	plus

	 	(2)	 	the greater of

	 	(i)	 	the average
annual cash award received by the Executive as incentive
compensation or bonus for one calendar year immediately
preceding the Date of Termination (provided that in the
case of Termination for Good Reason by the Executive the
date immediately preceding the date of the event which
gave rise to the Termination for Good Reason by the
Executive shall be used instead of the Date of
Termination)

	 		 	or

	 	(ii)	 	the average
annual cash award received by the Executive as incentive
compensation or bonus for one calendar year immediately
preceding the date of the Change-in-Control.

     5. Outplacement Services. If the Executive’s employment with the Corporation
should terminate under circumstances as to entitle the Executive to receive payment hereunder, the
Corporation shall reimburse the Executive for any reasonable fees or other costs incurred by the
Executive during the two (2) years following the Date of Termination in retaining executive
placement agencies, up to a maximum dollar amount not to exceed fifteen percent (15%) of the
Executive’s base salary at the time of such termination. Such reimbursement shall be made within
five (5) days following the Executive’s presentment of bills or other evidence of the costs
incurred with executive placement agencies.

     6. Tax Implications. If any payment due to the Executive pursuant to this Agreement
result in a tax being imposed on the Executive pursuant to Section 4999 of the

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Internal Revenue Code of 1954, as amended, or any successor provision (“Section 4999”), then
the Corporation shall, at the Executive’s option, either (i) reduce the total payments payable to
the Executive to the maximum amount payable without incurring the Section 4999 tax, or (ii) pay to
the Executive the total amount payable, with the understanding that Section 4999 tax will be due on
that total amount.

     7. Benefits. If the Executive’s employment with the Corporation should terminate under
circumstances as to entitle the Executive to receive payment hereunder, the Executive shall also be
deemed, for purposes of medical insurance, pension and other benefits of the Corporation, to have
remained in the continuous employment of the Corporation for the two (2) year period following the
Date of Termination and shall be entitled to all of the medical insurance, pension or other
benefits provided by the Corporation as if the Executive had so remained in the employment of the
Corporation. If, for any reason, whether by law or provisions of the Corporation?s employee
medical insurance, pension or other benefit plans, or otherwise any benefits which the Executive
would be entitled to under this Section 6 cannot be paid pursuant to such employee benefit plans,
then the Corporation contractually agrees to pay the Executive the difference between the benefits
which the Executive would have received in accordance with this Section if the relevant employee
medical insurance, pension or other benefit plan could have paid such benefit and the amount of
benefits, if any, actually paid by such employee medical insurance, pension or other benefit plan.
The Corporation shall not be required to fund its obligation to pay the foregoing difference.

     8. Other Employment. In the event of termination under the circumstances contemplated
in Section 4(b) hereunder, the Executive shall have no duty to seek any other employment after
termination of his employment with the Corporation and the Corporation hereby waives and agrees not
to raise or use any defense based upon the position that the Executive had a duty to mitigate or
reduce the amounts due him hereunder by seeking other employment whether suitable or unsuitable and
should the Executive obtain other employment, then the only effect of such on the obligations of
the Corporation shall be that the Corporation shall be entitled to credit against any payments that
would otherwise be made pursuant to Section 7 hereof, any comparable payments to which the
executive is entitled under the employee benefit plans maintained by the Executive’s other employer
or employers in connection with services to such employer or employers after termination of this
employment with the Corporation.

     9. Stock Appreciation Rights and Options. If the Executive’s employment should
terminate under circumstances as to entitle the Executive to receive payment hereunder, then with
respect to any standing Stock Appreciation Rights and/or Options which did not immediately become
exercisable upon the occurrence of a Change-in-Control, such Stock Appreciation Right or Option
shall be automatically vested and remain outstanding in accordance with its terms and be
exercisable thereafter until the stated expiration date of such Stock Appreciation Right or Option.

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     10. Noncompetition. The Executive covenants and agrees that if the Executive receives
payment under Section 4(b)(ii) of this Agreement, then during the Restricted Period, the Executive
shall not in the United States of America, directly or indirectly, whether as principal or as
agent, officer, director, employee, consultant, shareholder or otherwise alone or in association
with any other person, corporation or other entity, engage or participate in, be connected with,
lend credit or money to, furnish consultation or advice or permit the Executive’s name to used in
connection with, any Competing Business. For purposes of this Agreement, the term “Restricted
Period” shall mean a number of years following the termination of Executive’s employment with the
Corporation equal to the number calculated pursuant to Section 4(b)(ii)(A) of this Agreement, plus
any amount of time during such period during which the Executive is in violation of this provision.
For purposes of this Agreement, the term “Competing Business” shall mean any person, corporation
or other entity engaged in the business of selling or attempting to sell any product or service
which competes with (a) products or services sold by the Corporation within the two (2) years prior
to termination of the Executive’s employment or (b) new products of the Corporation with respect to
which the Corporation had allocated engineering resources at the date of the Executive’s
termination to develop such new products.

     11. Miscellaneous.

	 	(a)	 	This Agreement shall be construed under the laws of the Commonwealth of
Pennsylvania.
	 
	 	(b)	 	This Agreement constitutes the entire understanding of the parties hereto with
respect to the subject matter hereof and may only be amended or modified by written
agreement signed by the parties hereto. This Agreement specifically supercedes the
agreement entered into between the Corporation and the Executive dated as of August 5,
1996 with respect to the subject matter hereof, and by the execution of this Agreement,
the previous agreement is hereby terminated and of no further force and effect.
	 
	 	(c)	 	The Corporation will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Corporation, by agreement in form and substance
satisfactory to the Executive, to expressly assume and agree to perform this Agreement
in the same manner required of the Corporation and to perform it as if no such
succession had taken place. As used in this Agreement, “Corporation” shall mean the
Corporation as hereinbefore defined and any successor to its business and/or assets as
aforesaid which executes and delivers the agreement provided for in this subsection (c)
or which otherwise becomes bound by all of the terms and provisions of this Agreement
by operation of law.
	 
	 	(d)	 	This Agreement shall inure to the benefit of and be enforceable by the
Executive and the Corporation and their respective legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the
Executive should die while any amounts would still be payable to him hereunder if he
had continued to live, all such amounts, unless otherwise provided herein,

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	 	 	 	shall be paid in accordance with the terms of this Agreement to his devisee, legatee
or other designee or, if there be no such designee, to his estate.
	 
	 	(e)	 	Any notice or other communication provided for in this Agreement shall be in
writing and, unless otherwise expressly stated herein, shall be deemed to have been
duly given if mailed by United States registered mail, return receipt requested,
postage prepaid, addressed in the case of the Executive to his office at the
Corporation with a copy to his residence and in the case of the Corporation to its
principal executive offices, attention to the Chief Executive Officer.
	 
	 	(f)	 	No provision of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is agreed to in writing signed by the Executive
and approved by resolution of the Board of Directors of the Corporation. No waiver by
either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time. No agreements or representations, oral
or otherwise, express or implied, with respect to the subject matter hereof have been
made by either party which are not set forth expressly in this Agreement.
	 
	 	(g)	 	The invalidity or unenforceability of any provisions of this Agreement shall
not affect the validity or unenforceability of any other provision of this Agreement,
which shall remain in full force and effect. If any provision hereof shall be deemed
invalid or unenforceable, either in whole or in part, this Agreement shall be deemed
amended to delete or modify, as necessary, the offending provision and to alter the
bounds thereof in order to render it valid and enforceable.
	 
	 	(h)	 	This Agreement may be executed in one or more counterparts, each of which shall
be deemed to be an original but all of which taken together will constitute one and the
same instrument.
	 
	 	(i)	 	If litigation should be brought to enforce, interpret or challenge any
provision contained herein, the prevailing party shall be entitled to its reasonable
attorney’s fees and disbursements and other costs incurred in such litigation and, if a
money judgment be rendered in favor of the Executive, to interest on any such money
judgment obtained calculated at the prime rate of interest in effect from time to time
at Mellon Bank, N.A., from the date that the payment should have been made or damages
incurred under this Agreement.

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     IN WITNESS WHEREOF, this Agreement has been executed on the date first above written.

	 	 	 	 	 	 	 
	 	 	TOLLGRADE COMMUNICATIONS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	/s/Sara M. Antol
	 	 	 	 	 
	 

	 	 	 	 	 	General Counsel & Secretary
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/Richard Bair
	 	 	 	 	 

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Schedule 10.1

Change in Control Agreements were entered into between the Company and Joseph Barron, James McCall,
Peter Van Peenan and Stephanie Wedge, which were substantially identical to that filed as Exhibit
10.1.

13<PAGE>

                                                                    EXHIBIT 4(a)

                              Bob Evans Farms, Inc.
                             3776 South High Street
                              Columbus, Ohio 43207
                                 (614) 491-2225

                                  July 13, 2005

Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549

            Re: Bob Evans Farms, Inc. - Form 10-K for the Fiscal Year Ended
April 29, 2005

Ladies and Gentlemen:

            Bob Evans Farms, Inc., a Delaware corporation ("Registrant"), is
today filing its Annual Report on Form 10-K for the fiscal year ended April 29,
2005 (the "Form 10-K").

            Pursuant to the instructions relating to the Exhibits in Item 601(b)
of Regulation S-K, Registrant hereby agrees to furnish to the Commission, upon
request, copies of instruments and agreements defining the rights of holders of
Registrant's long-term debt and of the long-term debt of Registrant's
consolidated subsidiaries, which are not being filed as exhibits to the Form
10-K. Such long-term debt does not exceed 10% of the total assets of Registrant
and its subsidiaries on a consolidated basis.

                                Very truly yours,

                                BOB EVANS FARMS, INC.

                                /s/ Donald J. Radkoski

                                Donald J. Radkoski
                                Chief Financial Officer,
                                Treasurer and Secretary

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