Document:

exv10w69

 

	 	 	 	 	 
	

	 	Exhibit 10.69
	 	

CONFIDENTIAL — SPECIAL HANDLING

December 20, 2005

Nicholas J. DeRoma

25 Mead Street

New Canaan, Connecticut 06840

U.S.A.

Dear Mr. DeRoma,

We refer to the letter agreement (the “Letter Agreement”) between you and Nortel Networks
Corporation dated September 7, 2005 and accepted by you on September 8, 2005. Capitalized terms
used herein and not otherwise defined shall have the meanings given to them in the Letter
Agreement.

Further to our recent conversations, you and the Corporation agree that the Letter Agreement is
hereby amended as follows:

	1.	 	Section 2 of the Letter Agreement is deleted in its entirety and replaced with the
following:

	 	“2.	 	Effective as of the close of business on September 9, 2005, your duties as
Chief Legal Officer of the Corporation shall cease. All previous external
responsibilities which you had will be assumed by other persons designated by the
Corporation, including any participation in industry or other associations representing
the Corporation. Prior thereto, you will cease to be an officer and/or director of the
Corporation and any of the Corporation’s subsidiaries and affiliates and you will sign
such documents as may be reasonably required to record these resignations. You will
continue to have access to your office to close out your personal and business affairs
as needed until and including September 30, 2005. Your employment relationship with
the Corporation shall cease at the end of the Salary Continuation Period (as that term
is defined in Section 4(a) below).”; and

	2.	 	Section 4(a) of the Letter Agreement is deleted in its entirety and replaced with the
following:

	 	“4(a).	 	 pay you the sum of US$43,833 per month, converted to Canadian currency, in the same
manner as you were paid immediately prior to September 9, 2005, less appropriate
deductions, commencing on September 10, 2005 and terminating on September 9, 2007

William J. Donovan

Senior-Vice President

Human Resources

Nortel

8200 Dixie Road Suite 100 Brampton ON Canada L6T 5P6 T 905.863.1100 F 905.863.8412 E billdono@nortel.com

 

 

	 	 	 
	Mr. Nicholas J. DeRoma

December 20, 2005

Page 2

	 	

	 	 	 	(“Salary Continuation Period”), provided that the Corporation shall pay any
such monthly payments then outstanding in a lump sum, which lump sum, less
appropriate deductions, will be paid to you on or before March 15, 2006; in the
event of your death prior to the conclusion of the Salary Continuation Period, the
Salary Continuation payments set forth in this section 4.(a), the Vacation Benefit set forth in section 4.(b) below and the Incentive Award set forth
in section 4.(c) below will be made to your spouse, and the event of her death, to
your estate;”.

Further, you and we acknowledge and agree that the Letter Agreement, as amended hereby, shall
continue in full force and effect and shall continue to be binding on each of us in accordance with
its terms. You acknowledge that you have had an adequate opportunity to review and consider the
foregoing amendments, including at your discretion, the right to discuss the same with legal
counsel of your choice.

Please acknowledge that the foregoing correctly and completely sets forth your understanding of the
arrangements, and your acceptance hereof, by signing, dating and returning to me, the attached
second copy of this letter.

Yours truly,

/s/ William J. Donovan

William J. Donovan

WJD/jld

For Nortel Networks Corporation

	 	 	 	 	 
	By:       /s/ William J. Donovan

	 	/s/ William J. LaSalle
	 	 
	 

	 	 	 	 
	 

	 	William J. LaSalle	 	 
	 

	 	General Counsel — Operations	 	 
	 
	 	 	 	 
	/s/ Nicholas J. DeRoma
 

	 	 	 	 
	Nicholas J. DeRoma
	 	 	 	 
	 
	 	 	 	 
	Dec 20, 2005
 

	 	 	 	 
	Dateexv10w70

 

Exhibit 10.70

September 29, 2005

To: Steve Pusey

Subject: Special Bonus

Dear Steve,

Based on the critical work and strategic value of the role you hold in driving Nortel’s future
success, I’m pleased to inform you that the Joint Leadership Resources Committee of the Board of
Directors has authorized the payment of a one-off special bonus as described below and in the
attached Schedule A.

Conditional upon your satisfaction of all terms and conditions described in this letter and the
attached Schedule A, Nortel will pay you the special bonus in two installments: (i) GBP £262,500
within 30 days of August 1, 2006 (the “Interim Retention Payment”); and (ii) GBP £262,500 within 30
days of August 1, 2007 (the “Final Retention Payment”).

The installments of the special bonus will be reported as part of your taxable income in the year
in which they are received. All appropriate taxes and other withholdings will be deducted from any
gross payment amount as required by applicable law. This special bonus will not be included in
“eligible earnings” for purposes of capital accumulation and retirement plans offered by Nortel
unless required by the applicable plan or law.

This special bonus is additional to any other bonus or incentive payments for which you are or may
become eligible, as applicable, such as SUCCESS or Sales Incentive Compensation. If you have any
questions, please contact me at your convenience.

Once you have reviewed this letter, including the attached Schedule A, and provided that you are in
agreement with the terms and conditions applicable to the special bonus, please signify your
acceptance by signing below and returning the original to the attention of: Su Taylor, Executive
Compensation, Dept. 1477, LOC Brampton or by fax at 905-863-8420 (ESN 333) by October 15, 2005.

William J. Donovan

Senior-Vice President

Human Resources

Nortel

8200 Dixie Road Suite 100 Brampton ON Canada L6T 5P6 T 905.863.1100 F 905.863.8412 E billdono@nortel.com

 

 

Schedule A — Terms and Conditions

Payment of the Special Bonus is subject to the following:

	 	1.	 	In order to receive the Interim Retention Payment, you must remain an active
employee of Nortel from August 1, 2005 through July 31, 2006 (the “Interim Retention
Period”) in your current role or in another role initiated or approved by Nortel, in
its sole discretion.
	 
	 	2.	 	In order to receive the Final Retention Payment, you must remain an active
employee of Nortel from August 1, 2005 through July 31, 2007 (the “Full Retention
Period”) in your current role or in another role initiated or approved by Nortel, in
its sole discretion.
	 
	 	3.	 	Your performance throughout the Interim Retention Period or the Full
Retention Period, as applicable, must be assessed by Nortel, in its sole discretion,
to be, at a minimum, fully satisfactory. The Interim Retention Payment and Final
Retention Payment shall together constitute and be known as the “Special Bonus”.
	 
	 	4.	 	You must comply with your obligations under any other agreement in effect
between you and Nortel such as, but not limited to, agreements to maintain the
confidentiality of Nortel trade secrets and proprietary information.
	 
	 	5.	 	You must sign, date and return the attached letter without modification to Su
Taylor, Executive Compensation, Dept. 1477, LOC Brampton or by fax at 905-863-8420
(ESN 333) by October 15, 2005.
	 
	 	6.	 	It is agreed that the Special Bonus will be paid on a pro-rata basis, as set
forth below, in the event of any of the following occurrences:

	 	(a)	 	If your employment is involuntarily terminated by Nortel
during the Full Retention Period for a reason other than your unsatisfactory
performance or misconduct or, in those countries where applicable, “cause” as
defined under applicable law, then the Special Bonus which you will receive
will be based on the number of your active days of employment during the Full
Retention Period;
	 
	 	(b)	 	If you have a Nortel approved leave of absence during the
Full Retention Period, then the days that you are on leave of absence will be
considered to be inactive, and the Special Bonus shall be based on the number
of your active days of employment during the Full Retention Period;
	 
	 	(c)	 	In the event of your death during the Full Retention Period,
the Special Bonus would be based on the number of your active days of
employment during the Full Retention Period through the date of your death.

 

 

	 	 	Any pro-rata bonus will be an amount equal to the product of the total Special Bonus
amount for which you are eligible, as set out in the attached letter, multiplied by a
fraction, the numerator of which is the number of your active days of employment during
the Full Retention Period and the denominator of which is 730. For greater certainty,
any such pro-rata amount payable to you shall be inclusive of all amounts, if any,
previously received by you in respect of the Initial Retention Payment.
	 
	7.	 	For avoidance of doubt:

(a) you will not be eligible for the Initial Retention Payment or the Final Retention
Payment if at any time prior to the end of the Initial Retention Period:

	 	(i)	 	you voluntarily terminate your employment including, without
limitation, voluntarily retiring;
	 
	 	(ii)	 	Nortel initiates termination of your employment due to your
unsatisfactory performance, misconduct or, in those countries where
applicable, “cause”, as defined under applicable law; or
	 
	 	(iii)	 	you voluntarily transfer to another position within Nortel
without Nortel approval; and

(b) you will not be eligible for the Final Retention Payment if at any time following
the Initial Retention Period and prior to the end of the Full Retention Period:

	 	(i)	 	you voluntarily terminate your employment including, without
limitation, voluntarily retiring;
	 
	 	(ii)	 	Nortel initiates termination of your employment due to your
unsatisfactory performance, misconduct or, in those countries where
applicable, “cause”, as defined under applicable law; or
	 
	 	(iii)	 	you voluntarily transfer to another position within Nortel
without Nortel approval.

 

 

Thank you again for all your contributions to Nortel.

Best Regards,

Bill Donovan

I acknowledge receipt of this letter, including Schedule A, and understand and agree to the terms
and conditions concerning the special bonus as outlined in these documents.

	 	 	 	 	 
	     /s/ Steve Pusey

	 	4/10/05	 	 
	 
	 

Steve Pusey

	 	Date

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