Document:

Muhich-ChangeofControlAgreement

Exhibit 10.4

EXECUTIVE CHANGE OF CONTROL AGREEMENT

October 1, 2012
	
		
	Allen Muhich
	Executive

	 
	 

	 
	 

	Radisys Corporation, an Oregon Corporation
	 

	5435 NE Dawson Creek Drive
	 

	Hillsboro, OR 97124
	the Company

1.Employment Relationship.  Executive is currently employed by the Company as Interim Chief Financial Officer, Vice President of Finance and Secretary.  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), and provided such Termination of Executive's Employment occurs within twelve (12) months following a Change of Control (as defined in Section 6.3 of this Agreement) or within three (3) 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 and Section 10, 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 within 5 days following the 

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Effective Date of the Release of Claims, and no later than two and one-half months following the last day of the calendar year of the 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 (100% paid by the Company) 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.  Each month for which the Company pays COBRA premiums directly reduces the total number of months of Executive’s COBRA continuation entitlement.
(c)    The Company shall pay Executive his stock-based incentive compensation plan payout under the Radisys Corporation Long Term Incentive Plan pursuant to the terms of and within the periods specified in the Long Term Incentive Plan and shall pay Executive his stock-based incentive compensation plan payout under each other stock-based incentive compensation plan maintained by the Company pursuant to the terms of and within the periods specified in each such other stock-based incentive compensation plan that may then be applicable.  The Company shall also pay Executive his cash-based incentive compensation plan payout earned but not yet received under each cash-based incentive compensation plan maintained by the Company, if any, for any performance period completed prior to the Termination of Executive's Employment.  In addition, the Company shall pay Executive his cash-based incentive compensation plan payout for any then current performance period under each such cash-based incentive compensation plan, provided that such payout shall not exceed the payout at target performance, pro-rated through the date of the Termination of Executive's Employment.  The amounts described in this Section (c), if any, shall be paid on the date Executive would otherwise have received each such payment if his employment had not been terminated and, in any event, no later than two and one-half months following the last day of the calendar year for which the cash-based incentive compensation plan payout was earned.
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 (the "Payment") 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 the Reduced Amount.  The "Reduced Amount" shall be either (x) the largest portion of the Payment that would otherwise result in no portion of the Payment being subject to the excise tax imposed by Code Section 4999 (the "Excise Tax") or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.  If a reduction in payments or benefits is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order: first by reducing or eliminating the portion of the Payment that is payable in cash, second by reducing or eliminating the portion of the Payment that is not payable in cash (other than Payments as to 

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which Treasury Regulations Section 1.280G-1 Q/A – 24(c) (or any successor provision thereto) applies (“Q/A-24(c) Payments”)), and third by reducing or eliminating Q/A-24(c) Payments.  In the event that any Q/A-24(c) Payment or acceleration is to be reduced, such Q/A-24(c) Payment shall be reduced or cancelled in the reverse order of the date of grant of the awards.  The independent public accounting firm serving as the Company's auditing firm immediately prior to the effective date of the Change of Control (the "Accountants") shall make in writing in good faith, subject to the terms and conditions of this Section 3.2, all calculations and determinations under this Section, including the assumptions to be used in arriving at such calculations and determinations, whether any payments are to be reduced, and the manner and amount of any reduction in the payments.  For purposes of making the calculations and determinations under this Section, the Accountants may make reasonable assumptions and approximations concerning the application of Code Sections 280G and 4999.  Executive shall furnish to the Accountants and the Company such information and documents as the Accountants or the Company may reasonably request to make the calculations and determinations under this Section.  The Company shall bear all fees and costs the Accountants may reasonably charge or incur in connection with any calculations contemplated by this Section.  The Accountants shall provide its determination, together with detailed supporting calculations regarding any relevant matter, both to the Company and to Executive by no later than ninety (90) days following the Termination of Executive's Employment.  
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.  Any cash severance pay paid to Executive under any other agreement with the Company or any of its subsidiaries or affiliates (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) shall reduce the amount of cash severance pay payable under this Agreement.
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 with the Company (including any subsidiary of the Company) for Good Reason (as defined below).  For purposes of this Agreement, "Good Reason" means:

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(a)    a material reduction by the Company or the surviving company in Executive's base pay from the highest annual rate in effect at any time within the 12-month period preceding the Change of Control, other than a salary reduction that is part of a general salary reduction affecting employees generally; or
(b)    a material change in the geographic location where Executive is based, provided that such change is more than 25 miles from where Executive's office is located immediately prior to the Change of Control, except for required travel on Company business to an extent substantially consistent with the business travel obligations which Executive undertook on behalf of the Company immediately prior to the Change of Control.
An event described above will not constitute Good Reason unless Executive provides written notice to the Company of Executive's intention to resign for Good Reason and specifying in reasonable detail the breach or action giving rise thereto within 90 days of its initial existence and the Company does not cure such breach or action within 30 days after the date of Executive's notice.  In no instance will a resignation by Executive be deemed to be for Good Reason if it is made more than 24 months following the initial occurrence of any of the events that otherwise would constitute Good Reason hereunder.
A  Termination of Executive's Employment is intended to mean a termination of employment which constitutes a "separation from service" under Code Section 409A.  If any payments are to be made within a specified period of time or during a calendar year, the date of such payment shall be in the sole discretion of the Company, and Executive shall not be permitted, directly or indirectly, to designate the taxable year of payment.
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, Chief Executive Officer or the President of the Company 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:

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(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; provided that a sale, lease, exchange or other transfer of assets (in one transaction or a series of related transactions) shall not be a sale of substantially all of the assets of the Company for purposes of this Agreement if (x) the Company’s and its other consolidated subsidiaries’ investments in such assets are less than 90% of the total assets of the Company and its subsidiaries consolidated as of the end of the most recently completed fiscal year or (y) the pro forma revenue of the business comprised by such assets as of the end of the most recently completed fiscal year end is less than 90% of the total revenue of the Company and its subsidiaries consolidated as of the end of the most recently completed fiscal year end.
(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.
6.4    Disability.  "Disability" means Executive's absence from Executive's full-time duties with the Company for 180 consecutive calendar 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 

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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.  Further, Executive waives any entitlement to any severance or other payment under any such agreement and that such waiver shall inure to the benefit of the Company, its successors and assigns, and any third parties.
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 pay or other benefits will be paid until after such resignation(s) or services are provided.
10.    No Disparagement.  Executive agrees that from and after the date of termination of employment Executive will not disparage or make false or adverse statements (whether written or oral) about the Company and its predecessors and successors, affiliates, and all of each such entity’s officers, directors, employees, insurers, agents, attorneys or assigns, in their individual and representative capacities (the "Parties").  The Company may take actions consistent with breach of this Agreement should it determine that Executive has disparaged or made false or adverse statements (whether written or oral) about the Company or the Parties.  Should the Company determine that Executive has disparaged or made false or adverse statements (whether written or oral) about the Company or the Parties, the Executive shall not be entitled to the severance pay or other benefits provided under this Agreement.
11.    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.

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12.    Amendment.  No provision of this Agreement may be modified unless such modification is agreed to in writing signed by Executive and the Company.
13.    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.
14.    Code Section 409A.  This Agreement and the severance pay and other benefits  provided hereunder are intended to qualify for an exemption from Code Section 409A, provided, however, that if this Agreement and the severance pay and other benefits provided hereunder are not so exempt, they are intended to comply with Code Section 409A to the extent applicable thereto.  Notwithstanding any provision of this Agreement to the contrary, this 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 this Agreement so that it will comply with the requirements of Code Section 409A, the Company does not represent or warrant that this Agreement will comply with Code Section 409A or any other provision of federal, state, local, or non-United States law.  Neither the Company, its subsidiaries, nor their respective directors, officers, employees or advisers shall be liable to Executive (or any other individual claiming a benefit through Executive) for any tax, interest, or penalties Executive may owe as a result of compensation paid under this Agreement, and the Company and its subsidiaries shall have no obligation to indemnify or otherwise protect Executive from the obligation to pay any taxes pursuant to Code Section 409A.  If any payment or reimbursement, or portion thereof, under this Agreement would be deemed to be a deferral of compensation not exempt from the provisions of Code Section 409A and would be considered a payment upon a separation from service for purposes of Code Section 409A, and Executive is determined to be a "specified employee" under Code Section 409A, then any such payment or reimbursement, or portion thereof, shall be delayed until the date that is the earlier to occur of (i) Executive's death or (ii) the date that is six months and one day following the date of the Termination of Executive's Employment (the "Delay Period").  Upon the expiration of the Delay Period, the payments delayed pursuant to this Section 14 shall be paid to Executive in a lump sum, and any remaining payments due under this Section 14 shall be payable in accordance with their original payment schedule.
15.    Costs and Attorneys' Fees.  In the event of any administrative or civil action brought by Executive to enforce the provisions of this Agreement, the Company shall pay Executive's reasonable attorneys' fees through trial and/or on appeal.  The payment or reimbursement of expenses described in this Section 15 shall be made promptly and in no event later than December 31 of the year following the year in which such expenses were incurred, and the amount of such expenses eligible for payment or reimbursement in any year shall not affect the amount of such expenses eligible for payment or reimbursement in any other year nor shall such right to payment or reimbursement be subject to liquidation or exchange for another benefit. 
16.    Prohibition on Acceleration of Payments.  The time or schedule of any payment or amount scheduled to be paid pursuant to the terms of this Agreement may not be accelerated 

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except as otherwise permitted under Code Section 409A and the guidance and Treasury regulations issued thereunder.

	
					
	RADISYS CORPORATION
	 
	 

	 
	 
	 
	 
	 

	By:
	 
	/s/ Brian Bronson
	 
	/s/ Allen Muhich

	 
	 
	Brian Bronson, President and Chief Executive Officer
	 
	Allen Muhich, Interim Chief Financial Officer and Vice President of Finance

	 
	 
	 

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EXHIBIT A 
 
RELEASE OF CLAIMS
1.Parties.
The parties to Release of Claims (hereinafter "Release") are Allen Muhich and Radisys Corporation, an Oregon corporation, as hereinafter defined.
1.1    Executive and Releasing Parties.
For the purposes of this Release, "Executive" means Allen Muhich, and "Releasing Parties" means Executive and his attorneys, heirs, legatees, personal representatives, executors, administrators, assigns, and spouse.
1.2    The Company and the Released Parties.
For the purposes of this Release, the "Company" means Radisys Corporation, an Oregon corporation, and "Released Parties" means the Company and its predecessors and successors, affiliates, and all of each such entity’s officers, directors, employees, insurers, agents, attorneys or assigns, in their individual and representative capacities.
2.    Background And Purpose.
Executive was employed by the Company.  Executive's employment is ending effective __________ under the conditions described in Section 3.1 of the Executive Change of Control Agreement ("Agreement") by and between Executive and the Company dated October 1, 2012.
The purpose of this Release is to settle, and the parties hereby settle, fully and finally, any and all claims the Releasing Parties may have against the Released Parties, whether asserted or not, known or unknown, including, but not limited to, claims arising out of or related to Executive's employment, any claim for reemployment, or any other claims whether asserted or not, known or unknown, past or future, that relate to Executive's employment, reemployment, or application for reemployment.
3.    Release.
In consideration for the payments and benefits set forth in Section 3.1 of the Agreement and other promises by the Company all of which constitute good and sufficient consideration, Executive, for and on behalf of the Releasing Parties, waives, acquits and forever discharges the Released Parties from any obligations the Released Parties have and all claims the Releasing Parties may have as of the Effective Date (as defined in Section 4 below) of this Release, including but not limited to, obligations and/or claims arising from the Agreement or any other document or oral agreement relating to employment, compensation, benefits, severance or post-employment issues.  Executive, for and on behalf of the Releasing Parties, hereby releases the Released Parties from any and all claims, demands, actions, or causes of action, whether known 

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or unknown, arising from or related in any way to any employment of or past failure or refusal to employ Executive by the Company, or any other past claim that relates in any way to Executive's employment, compensation, benefits, reemployment, or application for employment, with the exception of any claim Executive may have against the Company for enforcement of the Agreement.  The matters released include, but are not limited to, any claims under federal, state or local laws, including the Age Discrimination in Employment Act (“ADEA”) as amended by the Older Workers’ Benefit Protection Act (“OWBPA”), any common law tort, contract or statutory claims, and any claims for attorneys’ fees and costs.  Further, Executive, for and on behalf of the Releasing Parties, waives and releases the Released Parties from any claims that this Release was procured by fraud or signed under duress or coercion so as to make the Release not binding.  Executive is not relying upon any representations by the Company's legal counsel in deciding to enter into this Release.  Executive understands and agrees that by signing this Release Executive, for and on behalf of the Releasing Parties, is giving up the right to pursue any legal claims that Executive or the Releasing Parties may have against the Released Parties.  Provided, nothing in this provision of this Release shall be construed to prohibit Executive from challenging the validity of the ADEA release in this Section of the Release or from filing a charge or complaint with the Equal Employment Opportunity Commission or any state agency or from participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or state agency.  However, the Released Parties will assert all such claims have been released in a final binding settlement. 
Executive understands and agrees that this Release extinguishes all claims, whether known or unknown, foreseen or unforeseen.  Executive expressly waives any rights or benefits under Section 1542 of the California Civil Code, or any equivalent statute.  California Civil Code Section 1542 provides as follows: 
"A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor."
Executive fully understands that, if any fact with respect to any matter covered by this Release is found hereafter to be other than or different from the facts now believed by Executive to be true, Executive expressly accepts and assumes that this Release shall be and remain effective, notwithstanding such difference in the facts.
3.1    IMPORTANT INFORMATION REGARDING ADEA RELEASE.  
Executive understands and agrees that:
(a)    this Release is worded in an understandable way;
(b)    claims under ADEA that may arise after the date of this Release are not waived;

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(c)    the rights and claims waived in this Release are in exchange for additional consideration over and above any consideration to which Executive was already undisputedly entitled;
(d)    Executive has been advised to consult with an attorney prior to executing this Release and has had sufficient time and opportunity to do so;
(e)    Executive has been given a period of time of 21 days (or, if required by applicable law, 45 days) (the “Statutory Period”), if desired, to consider this Release and understands that Executive may revoke his waiver and release of any ADEA claims covered by this Release within seven (7) days from the date Executive executes this Release.  Notice of revocation must be in writing and received by Radisys Corporation, 5435 NE Dawson Creek Drive, Hillsboro, Oregon 97124 Attention:  Vice President, Human Resources within seven (7) days after Executive signs this Release; and
(f)    any changes made to this Release, whether material or immaterial, will not restart the running of the Statutory Period.
3.2    Reservations Of Rights.
This Release shall not affect any rights which Executive may have under any medical insurance, disability plan, workers' compensation, unemployment compensation, indemnifications, applicable company stock incentive plan(s), or the 401(k) plan maintained by the Company.
3.3    No Admission Of Liability.
It is understood and agreed that the acts done and evidenced hereby and the release granted hereunder is not an admission of liability on the part of Executive or the Company or the Released Parties, by whom liability has been and is expressly denied.
4.    Effective Date.
The "Effective Date" of this Release shall be the eighth calendar day after it is signed by Executive. 
5.    Confidentiality, Proprietary, Trade Secret And Related Information
Executive acknowledges the duty and agrees not to make unauthorized use or disclosure of any confidential, proprietary or trade secret information learned as an employee about the Company, its products, customers and suppliers, and covenants not to breach that duty.  Moreover, Executive acknowledges that, subject to the enforcement limitations of applicable law, the Company reserves the right to enforce the terms of any offer letter, employment agreement, confidentially agreement, or any other agreement between Executive and the Company and any section(s) therein.  Should Executive, Executive's attorney or agents be requested in any judicial, administrative, or other proceeding to disclose confidential, proprietary or trade secret information Executive learned as an employee of the Company, Executive shall promptly notify 

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the Company of such request by the most expeditious means in order to enable the Company to take any reasonable and appropriate action to limit such disclosure.
6.    Scope Of Release.
The provisions of this Release shall be deemed to obligate, extend to, and inure to the benefit of the parties; the Company's parents, subsidiaries, affiliates, successors, predecessors, assigns, directors, officers, and employees; and each party’s insurers, transferees, grantees, legatees, agents, personal representatives and heirs, including those who may assume any and all of the above-described capacities subsequent to the execution and Effective Date of this Release.
7.    Entire Release.
This Release and the Agreement signed by Executive contain the entire agreement and understanding between the parties and, except as reserved in Sections 3 and 5 of this Release, supersede and replace all prior agreements, written or oral, prior negotiations and proposed agreements, written or oral.  Executive and the Company acknowledge that no other party, nor agent nor attorney of any other party, has made any promise, representation, or warranty, express or implied, not contained in this Release concerning the subject matter of this Release to induce this Release, and Executive and the Company acknowledge that they have not executed this Release in reliance upon any such promise, representation, or warranty not contained in this Release.
8.    Severability.
Every provision of this Release is intended to be severable.  In the event any term or provision of this Release is declared to be illegal or invalid for any reason whatsoever by a court of competent jurisdiction or by final and unappealed order of an administrative agency of competent jurisdiction, such illegality or invalidity should not affect the balance of the terms and provisions of this Release, which terms and provisions shall remain binding and enforceable.
9.    References.
The Company agrees to follow the applicable policy(ies) regarding release of employment reference information.
10.    Parties May Enforce Release.
Nothing in this Release shall operate to release or discharge any parties to this Release or their successors, assigns, legatees, heirs, or personal representatives from any rights, claims, or causes of action arising out of, relating to, or connected with a breach of any obligation of any party contained in this Release.
11.    Governing Law.
This Release shall be construed in accordance with and governed by the laws of the State of Oregon, without regard to its conflicts of laws provisions. 

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	Dated:
	 
	 

	Allen Muhich, Interim Chief Financial Officer and Vice President of Finance
	 
	 
	 
	 

	
					
	STATE OF
	 
	)
	 
	 

	 
	 
	) ss.
	 
	 

	County of
	 
	)
	 
	 

Personally appeared the above named Allen Muhich and acknowledged the foregoing instrument to be his voluntary act and deed.
	
						
	Before me:
	 
	 
	NOTARY PUBLIC – OREGON
My commission expires: __________

	 
	 
	 
	 

	RADISYS CORPORATION
	 
	 
	 

	 
	 
	 
	 
	 
	 

	By:
	 
	 
	 
	Dated:
	 

	 
	 
	 
	 
	 
	 

	Its:

	 
	 
	 
	 
	 

	 
	 
	On Behalf of RadiSys Corporation and "Company"
	 
	 
	 

A-5EXHIBIT 10.1

 

CONSULTING AGREEMENT AND RELEASE OF CLAIMS

 

This Consulting Agreement and Release of Claims (“Agreement”)
is made by and between Insignia Systems, Inc. (“ISI”), 8799 Brooklyn Blvd., Minneapolis, MN 55445 and Alan M. Jones
(“I,” “me,” or “my”).

 

WHEREAS, Company and I mutually agree that my
employment with ISI will terminate on the date specified herein; and

 

WHEREAS, Company and I do not anticipate that
there will be any disputes between us or legal claims arising out of my separation from employment, but nevertheless desire to
ensure a completely amicable parting and to settle fully and finally any and all differences or claims that might arise out of
my employment;

 

THE PARTIES HEREBY AGREE, in consideration of
the foregoing and the following terms, conditions and obligations, as follows:

 

I.          Definitions. All words used in this Agreement are intended
to have their plain meanings in ordinary English. Specific terms in this Agreement have the following meanings:

 

             A.          “I,” “me,” and “my” include
both me (Alan M. Jones) and anyone who has or obtains any legal rights or claims through me.

 

             B.          “ISI” or “Insignia” means Insignia Systems,
Inc. and any related or affiliated business entities in the present or past, including without limitation, its or their predecessors,
successors, parents, subsidiaries, affiliates, joint venture partners, and divisions.

 

             C.          “Company” means ISI; the present and past Board of
Directors, shareholders, officers and employees of ISI; ISI’s insurers; and anyone who acted on behalf of ISI or on instructions
from ISI.

 

             D.          “Consulting Services” means services to be rendered
by me to Company for a period of nine (9) months from September 30, 2012, as required for the orderly transition of my job duties
to Company’s new sales leader, including but not limited to meetings and/or phone calls with prescribed Company personnel;
provision of additional Company, customer and other information to Company’s CEO, President and COO, CFO, or their designees
as specified by them; or other reasonable services as requested by Company’s CEO, President and COO, CFO or their designees
as specified by the them.

 

             E.          “My Claims” means any and all claims, actions, rights,
causes of action and demands, known or unknown, arising at law, in equity, or otherwise, from the beginning of time and continuing
through and up to the date on which I sign this Agreement, which I have or may have against the Company, including without limitation:

 

          1.          all claims arising out of or relating to my employment
with ISI or the termination of that employment;

 

          2.          all claims arising out of or relating to the statements,
actions or omissions of the Company;

 

    	1

    	 

    

 

          3.          all claims for any actual or alleged unlawful discrimination,
harassment, retaliation or reprisal, or other alleged unlawful practices arising under any federal, state, or local statute, ordinance,
or regulation, including without limitation claims under Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights
Act of 1866, the Civil Rights Act of 1991; all federal and state executive orders, including Executive Order 11246; the Age Discrimination
in Employment Act, as amended by the Older Workers Benefit Protection Act of 1990 and as otherwise amended; the Worker Adjustment
and Retraining Notification Act; the Equal Pay Act; the Genetic Information Nondiscrimination Act; the Minnesota Human Rights Act,
the Ohio Fair Employment Practices Act and any applicable local human rights ordinance(s);

 

          4.          all claims for any actual or alleged violations of the
federal Americans with Disabilities Act of 1990 (42 U.S.C. § 1981); the federal Rehabilitation Act of 1973; the federal Family
and Medical Leave Act; the federal Fair Labor Standards Act; the federal Employee Retirement Income Security Act (except for any
vested claim for benefits under a qualified retirement plan that may be brought pursuant to 502(a)(1)(B) of ERISA), including but
not limited to claims under ISI-sponsored severance and termination pay plans, if any; and state and local wage-hour, workers compensation
and leave of absence laws and regulations, if any;

 

          5.          all claims for actual or alleged wrongful discharge;
breach of contract; breach of implied contract; failure to keep any promise; breach of a covenant of good faith and fair dealing;
breach of fiduciary duty; estoppel; my activities, if any, as a “whistleblower”; defamation; infliction of emotional
distress; fraud; misrepresentation; negligence; harassment; retaliation or reprisal; constructive discharge; assault; battery;
false imprisonment; invasion of privacy; interference with contractual or business relationships; any other wrongful employment
practices; and violation of any other principle of common law;

 

          6.          all claims for compensation of any kind, including without
limitation, salary, wages, bonuses, commissions, stock-based compensation, vacation pay, paid time off, fringe benefits and expense
reimbursements;

 

          7.          all claims for reinstatement or other equitable relief;
back pay, front pay, compensatory damages, damages for alleged personal injury, liquidated damages and punitive damages; and

 

          8.          all claims for attorneys’ fees, costs and interest.

 

However, My Claims does not include any claims that the law does not allow
to be waived or any claims that may arise after the date on which I sign this Agreement.

 

II.          Termination of Employment and Agreement to Release My Claims.

 

              A.          My employment with ISI terminated as of the close of business
on September 30, 2012, and I hereby acknowledge I have received or will receive payment of my gross base salary through September
30, 2012, less normal tax withholdings. Provided I perform all of my obligations under this Agreement and do not revoke this Agreement
within the fifteen-day Revocation Period set forth in Section VII below, I will receive “Special Consideration” from
ISI in the form of:

 

                              i.            nine monthly payments of $20,833 in return for the rendering
of the Consulting Services, to be paid monthly beginning October 30, 2012;

 

                              ii.           payment by Company of 100% of monthly COBRA premiums for health,
dental and basic life insurance coverage through June 30, 2013, or the date I am no longer eligible for COBRA coverage under the
Company’s health, dental and basic life insurance plans, whichever is earlier;

 

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                                iii.           three months of outplacement services (which may begin any
time after execution and delivery of this Agreement and expiration of the Revocation Period set forth in Section VII herein) up
to $10,000 with a firm of my choosing but to be paid directly to the outplacement firm by ISI upon commencement of the services;
and

 

                                iv.          a lump sum payment of $4,500 on September 30, 2012, less normal
tax withholdings.

 

                  B.          My Special Consideration is contingent upon me signing and not
revoking this Agreement as provided below. I understand and acknowledge that the Special Consideration is in addition to anything
of value that I would be entitled to receive from ISI if I did not sign this Agreement or if I revoked this Agreement.

 

                  C.          In exchange for the Special Consideration, I give up, settle and
release all of My Claims and I agree to abide by this Agreement in all respects. I understand and agree that through this release
I am extinguishing all of My Claims occurring up to the date on which I sign this Agreement. The Special Consideration that I am
receiving is a fair compromise for my undertakings in this Agreement.

 

                  D.          Notwithstanding the foregoing, I understand that nothing contained
in this Agreement purports to limit any right I may have to file a charge with Equal Employment Opportunity Commission or other
administrative agency or to participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission
or other investigative agency. This Agreement does, however, waive and release any right to recover monetary damages resulting
from such investigation or litigation.

 

III.          No Admission of Liability. Even though ISI will provide
Special Consideration for me to settle and release My Claims and to otherwise abide by this Agreement, the Company does not admit
that it is responsible or legally obligated to me. In fact, the Company denies that it is responsible or legally obligated to me
for My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it treated me unfairly or
acted wrongfully.

 

IV.          Acknowledgment of Risk of Change in Facts or Law. I
acknowledge that the facts and the law material to this Agreement may turn out to be different from or contrary to my present belief,
and I assume the risk that such differences may arise. I acknowledge and represent that I have not relied on any representations
of the Company or the Company’s counsel in entering into this Agreement. Once the fifteen-day revocation period below has
expired, I intend that the release granted herein shall be final, complete, irrevocable and binding in all events and circumstances
whatsoever.

 

V.          Advice to Consult with an Attorney. I understand and
acknowledge that I am hereby being advised by the Company to consult with an attorney prior to signing this Agreement. My decision
whether to sign this Agreement is my own voluntary decision made with full knowledge that the Company has advised me to consult
with an attorney.

 

VI.          Period to Consider this Agreement. I understand and
acknowledge that I have 21 days from the day that I receive this Agreement (not counting September 25, 2012, the day upon which
I received it), or through October 5, 2012, whichever is later, to consider whether I wish to sign this Agreement. I understand
ISI will accept this Agreement and pay to me the Special Consideration as described above if I sign and return this Agreement and
if I do not revoke this Agreement as provided below. I understand that if I sign this Agreement on or before October 16, 2012,
or choose to forego the advice of legal counsel, I do so freely and knowingly, and I waive any and all further claims that such
action or actions would affect the validity of this Agreement. I understand that any changes to this Agreement, whether material
or not material, do not restart the period of time I have to consider whether or not to sign this Agreement.

 

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If I elect not to execute and return this Agreement on or before October
16, 2012, I further understand that the offer contained herein shall terminate and ISI shall be under no obligation to provide
the severance compensation and the benefits provided herein.

 

VII.           My Right to Revoke this Agreement. I understand that
I may revoke this Agreement at any time within fifteen (15) days after I sign it, not counting the day upon which I sign it (“Revocation
Period”). This Agreement will not become effective or enforceable unless and until the fifteen-day Revocation Period has
expired without my revoking it. I understand that if I rescind or revoke this Agreement, all of ISI’s obligations to me under
this Agreement will immediately cease and terminate, and ISI will owe me no amounts hereunder. If I do not revoke or rescind this
Agreement within said fifteen-day period, I understand that the Company will pay the Special Consideration to me on my termination
date or when that fifteen-day period expires, whichever is later.

 

VIII.          Procedure for Accepting or Revoking this Agreement.
To accept the terms of this Agreement, I must deliver the Agreement, after I have signed and dated it, to ISI by hand or by certified
mail, return receipt requested, on or before October 16, 2012. To revoke my acceptance, I must deliver a written, signed statement
that I revoke my acceptance to ISI by hand or by certified mail within the fifteen-day Revocation Period. All certified mailings
and hand deliveries must be made to ISI at the following address:

 

Attn: Payroll and HR Administrator

Insignia Systems, Inc.

8799 Brooklyn Blvd.

Minneapolis, MN 55445

 

If I choose to deliver my acceptance or the revocation of my acceptance
by mail, it must be:

 

               1.          postmarked within the period stated above; and

 

               2.          properly addressed to Attn: Payroll and HR Administrator
at the address stated above.

 

IX.          Non-disparagement. Both Company and I agree not to
make negative or disparaging remarks or comments about each other, including, in the case of the Company, about its officers, directors,
management, employees, products or services.

 

X.          Non-interference; Pursuit of Other Employment; Cooperation.

 

              A.          Non-interference. Recognizing that ISI incurs significant
expense in recruiting its personnel and has the right to expect their continued service, I will not interfere with ISI’s
relationships with its customers, employees and subcontractors. All contact with the Company (as defined herein) pertaining to
Company business, my employment with ISI, the circumstances surrounding my departure or my rendering of the Consulting Services
contemplated under this Agreement shall be limited to the President and COO or the CFO, or their designees as and if directed by
them. This Section X is not intended to prohibit me from having personal contact with ISI personnel that does not involve any of
the foregoing matters of this Section X and that does not constitute violation of any other provision of this Agreement. I hereby
further acknowledge and agree that all personal contact with ISI personnel will be conducted in compliance with the provisions
of this Agreement.

 

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I further agree that I will not participate or give assistance in any effort
of any other business, including any business that I may own or operate to hire or engage the services of an ISI employee or subcontractor;
nor will I encourage any ISI employee or subcontractor to leave the employment or service of ISI. I agree that I will not engage
in this form of unfair competition for a period of 12 months after my employment with ISI.

 

                  B.          Pursuit of Other Employment. Notwithstanding the foregoing,
the parties agree that I am free to pursue other employment during the term of this Agreement.

 

                 C.          Cooperation. In addition, for not less than one (1) year
following termination of my employment, I will cooperate with the Company in any matters involving the transition of my responsibilities
or other matters involving the business of the Company.

 

XI.          Confidentiality. I agree that following the termination
of my employment, I will keep confidential, and will not use for my benefit or the benefit of any other company or person, confidential
ISI business information (“Confidential Information”), including but not limited to the identity of ISI customers and
prospective customers and their requirements for in-store advertising or other in-store signage services provided by ISI; product
designs and manufacturing or production methods; processes and techniques; existing or planned product or service offerings; information
related to ISI projects, business, strategy, sales or marketing plans or proposals; consumer packaged goods (CPG) manufacturer,
other customer and/or retailer information; software codes and computer programs and other technical information or data; customer
lists; price information and cost information; CPG, retail and other contract information or information relating to Company contracts;
financial and administrative techniques or documents or any similar information that is either designated by the Company as “Confidential”
or similarly identified or, if not designated as “Confidential,” is of a nature that would normally be considered confidential
in a business setting, regardless of whether it is in the form of hard copies, electronic copies or any other form in which exists;
salary and other ISI personnel information; and Company financial information. I recognize that the Company has furnished any information
of this type to me in confidence on the understanding that I would not disclose any such Confidential Information or use it for
the advantage of myself or anyone other than ISI.

 

If such Confidential Information or property is not on company premises,
I agree that I must make arrangements to return such property and to return all Confidential Information as outlined in Section
XIII below prior to receipt of any of the benefits outlined above, unless the Company is required by law to make such payments.
Regardless as to the Company’s obligation to make wage payments or other legal obligations related to benefits, I agree that
I will arrange to return all company property and Confidential Information in my possession.

 

XII.          Return of Property. I agree that I will not retain
any copies of Company property or documents. I agree that this obligation is ongoing and that if I subsequently discover any additional
company property that I will promptly return it to ISI. I represent that I have delivered and returned to the Company (and have
not destroyed) (a) all materials of any kind in my possession (or under my control) incorporating Confidential Information (as
such term is defined in any applicable agreement between me and the Company) or otherwise relating to the Company’s business
(including but not limited to all such materials and/or information stored on any computer or other storage device owned or used
by me), and (b) all Company property in my possession (or under my control), including (but not limited to) computers, computer
software applications, cellular telephones, pagers, credit cards, keys, records, files, manuals, books, forms, documents, letters,
memoranda, data, tables, photographs, video tapes, audio tapes, computer disks and other computer storage media, all materials
that include trade secrets, and all copies, summaries or notes of any of the foregoing.

 

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XIII.          Assignment; No Other Promises or Representations.

 

                  A.          Assignment. It is intended that, in the event of a change
in control of the Company, the Company shall make good faith efforts to assign this Agreement to the acquiring company or Company’s
successor in interest and to obtain the successor company’s agreement to meet the obligations of this Agreement.

 

                  B.          No Other Promises or Representations. I agree that no promise
or representation, other than the promises and representations expressly contained in this Agreement, has been made to me by the
Company with regard to my separation from employment with the Company.

 

XIV.          Interpretation of this Agreement. This Agreement should
be interpreted as broadly as possible to achieve my intention to resolve all of My Claims against the Company and to otherwise
fulfill my obligations under this Agreement. If any provision of this Agreement is found to be illegal and/or unenforceable, such
provision shall be severed and modified to the extent necessary to make it enforceable; and as so severed or modified, the remainder
of this Agreement shall remain in full force and effect and enforceable with respect to the release of all the remainder of My
Claims.

 

XV.          Voluntary Release. I have read this Agreement carefully.
I understand all of its terms. In signing this Agreement, I have not relied on any statements or explanations made by the Company
except as specifically set forth in this Agreement. I am voluntarily releasing My Claims against the Company without coercion,
duress or reliance on any representations by any ISI employee, agent or attorney and I am voluntarily undertaking my other obligations
under this Agreement without coercion, duress or reliance on any representations by any ISI employee, agent or attorney. I intend
this Agreement to be legally binding.

 

XVI.          Non-Disclosure of this Agreement. The parties agree
that the terms of this Agreement are confidential except for disclosures by the Company as required by law or regulation, including
but not limited to securities, tax and accounting laws or regulations. I agree that I will not, directly or indirectly, disclose
any of the terms of this Agreement to anyone other than my immediate family or counsel, except as such disclosure may be required
for accounting or tax reporting purposes or as otherwise may be required by law (for example, by subpoena or other compulsory legal
process).

 

XVII.         Governing Law; Jurisdiction and Venue. This Agreement
is governed by and shall be construed in accordance with the laws of the State of Minnesota and any dispute related thereto shall
be exclusively venued in the state courts of Minnesota located in Hennepin County, Minnesota. In the event litigation results involving
this Agreement, the unsuccessful party agrees to pay the prevailing party’s reasonable attorneys’ fees and costs.

 

XVIII.        Other Agreements. I understand that this Consulting
Agreement and Release of Claims and the employee benefit plans of the Company in which I am a participant contain all of the agreements
between the Company and me. These agreements supersede all other written and oral agreements we may have. Any additions or changes
to this Agreement must be in writing and signed by both parties.

 

XIX.          Termination. I agree that if I breach any provision
of Sections IX, X, XI, XII, or XVI, Company has the right to terminate this Agreement immediately without further obligation to
make payments for Consulting Services under this Agreement.

 

XX.          Survival. I understand that the provisions of this
Agreement, by their nature and content, must survive the completion, rescission, termination or expiration of this Agreement in
order to achieve the fundamental purposes of this Agreement (including but not limited to the provisions of paragraphs II.C, IX,
X, XI, XII and XVI of this Agreement) will survive the termination of my employment and the termination, for any reason, of this
Agreement.

 

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XXI.          Release as Evidence. I understand and agree that in
the event that any claim, suit or action shall be commenced by me against ISI, including, but not limited to, claims, suits or
actions relating to my employment with ISI through this date, this Agreement shall constitute a complete defense to any such claims,
suits or actions so instituted.

 

 

	Alan M. Jones	 	Insignia Systems, Inc.
	 	 	By:	/s/ Glen P. Dall
	/s/ Alan M. Jones	 	Title:   	President and COO
	Date signed:  	September 27, 2012	 	Date signed:	October 1, 2012
	 	 	 	 	 	 

 

 

 

 

 

 

 

    	7

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