Document:

Exhibit 10.1

 

 

Sonus Networks, Inc.

250
Apollo Drive, Chelmsford, MA 01824

 

December 23, 2004,

 

Ellen B. Richstone

67 Bullard Road

Weston, MA 02493

 

Dear Ellen:

 

I am pleased to provide you with the terms and
conditions of our offer of employment to you by Sonus Networks, Inc. (the “Company”).

 

1.             Position.   Your position will be Chief Financial
Officer, reporting to the President and COO.  
In addition to all Financial Accounting and Investor Relations matters,
you will also have responsibility at your Start Date for the Company’s Human
Resources and Information Systems organizations.  As the Company’s organization evolves, the
Human Resources/Information Systems departments may report to someone else, and
you may be assigned other Executive duties and responsibilities as the Company may
determine.

 

As a full-time employee of the Company, you will be expected to devote
your full business time and energies to the business and affairs of the
Company, however, you may serve as the member of the Board of Directors of up
to two other companies provided that neither competes with the Company and
provided that your service does not impair your ability to meet your
commitments as a Chief Financial Officer of the Company.

 

2.             Starting
Date/Nature of Relationship.  It is
expected that your employment will start on or before January 10, 2005.    No provision of this letter shall be
construed to create an express or implied employment contract for a specific
period of time. Employment at Sonus Networks, Inc. is considered “at will” and
either you or the Company may terminate the employment relationship at any time
and for any reason, subject to the provisions of paragraph 7 below.

 

3.             Compensation.

 

(a)                                  Your initial salary will be at the rate of
$10,833.34 paid twice monthly, annualized at $260,000.16.   You will be eligible to participate in the
Officer Bonus Program for 2005 with a non-discretionary target of 60% of annual
base salary (your “On Target Bonus”). For the first year of employment $40,000
of your $156,000 On Target Bonus will be guaranteed and paid when bonuses for
2005 are paid in the ordinary course.  
Specific objectives will be agreed upon within the first ninety days of
your employment.

 

(b)                                 You will be granted an option to purchase
600,000 shares of common stock under the Company’s Incentive Stock Plan,
subject to the terms of the Plan and approval of the Stock Option Committee.
The options shall vest and become exercisable (i) with respect to 25% of the
Shares on the first anniversary of the date that Optionee’s employment with the
Company commences (Start Date) and, (ii) with respect to the remaining 75% of
the Shares, equal increments of 2.0833% of the Shares shall vest monthly
thereafter through the fourth anniversary of the date of employment.

 

 

4.             Employment
Eligibility.   In compliance with the
Immigration Reform and Control Act of 1986, you are required to establish your
identity and employment eligibility.   
Therefore, on your first day of employment you will be required to fill
out an Employment Verification Form and present documents in accordance with
this form.

 

5.             Benefits.   You will be entitled as an employee of the
Company to receive such benefits as are generally provided its employees in
accordance with Company policy as in effect from time to time. Company benefits
include group health, life and dental insurance, and liberal holidays, vacation
and 401K programs. All employees begin accruing three (3) weeks of vacation
upon date of hire. The Company is committed to providing a healthy work
environment for every employee. 
Therefore, we provide a smoke free environment and require all employees
to comply.

 

The Company retains the right to change, add
or cease any particular benefit.

 

6.             Confidentiality.    The Company considers the protection of its
confidential information and proprietary materials to be very important.   Therefore, as a condition of your
employment, you and the Company will become parties to a Non-competition and
Confidentiality Agreement.  Two copies of
this agreement are sent with this offer letter. Both copies must be signed and
returned to the Company prior to the first day of employment.

 

7.             Termination.   The following provisions shall apply in the
event that your employment with the Company is terminated.

 

(a)                                  In the event that your employment with the
Company is terminated by the Company for any reason other than for cause, (i)
you will receive 12 months salary continuation payments at your then annual
base salary for the 12 month period following the termination of your
employment; (ii) within the first year of your employment, you will receive one
(1) year vesting (25%) of your New Hire Grant; and (iii) you will have 12
months from the date of termination to exercise your outstanding vested shares.

 

(b)                                 In the event of an Acquisition (as defined
below), any of the options in the New Hire Grant, which are not then vested or
exercisable, shall immediately become 100% vested and exercisable, subject to
your serving through the Transition Period if requested. In addition to the
above, in the event following an Acquisition (as defined below) your employment
with the Company is terminated by the Company for any reason other than for
cause, 100% of all unvested options in the New Hire Grant shall immediately
become vested and exercisable, subject to your serving through the Transition
Period if requested. After the closing of the Acquisition, if requested by the
Company’s Board or the Acquirer, you agree to remain employed by the Company or
the Acquirer for a six-month transition period “the Transition Period” provided
a senior executive position is offered to you on at least a transitional basis.

 

“Acquisition” means any (i) merger or consolidation
which results in the voting securities of the Company outstanding immediately
prior thereto representing immediately thereafter less than a majority of the
combined, voting securities of the Company or Acquirer outstanding immediately
after such merger or consolidation, (ii) sale of all or substantially all of
the assets or operating businesses of the Company or (iii) sale of outstanding
shares of capital stock of the Company, in a single transaction or series of
related transactions, representing at least 70% of the voting power of the
voting securities of the Company.

 

8.             General.

 

(a)                                  This letter will constitute our entire
agreement as to your employment by the Company and will supersede any prior
agreements or understandings, whether in writing or oral.

 

 

(b)                                 This letter shall be governed by the law of
the Commonwealth of Massachusetts.

 

(c)                                  Sonus Networks is an equal opportunity
employer.

 

You may accept this offer of employment and
the terms and conditions thereof by confirming your acceptance in writing by
December 27, 2004. Please send your letter to the company, or via e-mail bnotini@sonusnet.com
which execution will evidence your agreement with the terms and conditions set
forth herein and therein.  We are
enthusiastic about you joining us, and believe that our technical and business
goals will provide every opportunity for you to achieve your personal and
professional objectives.

 

Ellen, on a more personal note, Hassan and I
are looking forward to your joining the team to help us take Sonus to the next
level.

 

 

Very truly yours,

 

 

	
  /s/ Bert Notini

  	
   

  
	
  Bert Notini

  
	
  President and COO

  

 

 

Accepted by:

 

 

	
  /s/ Ellen B. Richstone

  	
   

  	
  12/24/04

  	
   

  
	
  Ellen Richstone

  	
  DateExhibit 10.29

FY2004 Recognition Bonus Plan

 

 

	
  Title:

  	
   

  	
  FY2004
  Recognition Bonus Plan

  
	
  Effective
  Date:

  	
   

  	
  October 30,
  2004

  

 

	
  Document
  Owner:

  	
  John
  Cleveland, Human Resources Compensation

  
	
   

  	
   

  
	
  Approvals:

  	
  Jan
  Collinson

  
	
   

  	
  Sr. VP of
  Human Resources and Facilities

  
	
   

  	
   

  
	
   

  	
  Steve
  Shevick

  
	
   

  	
  CFO and Sr.
  VP of Finance

  
	
   

  	
   

  
	
   

  	
  Chi-Foon
  Chan

  
	
   

  	
  President
  and COO

  
	
   

  	
   

  
	
   

  	
  Aart de Geus

  
	
   

  	
  Chairman and
  CEO

  

 

1.0                                 Purpose

 

This Synopsys FY 2004 Recognition Bonus Plan
(“Plan”) provides a framework for Synopsys Management to recognize and retain
eligible employees (individual contributors and management) with variable
compensation based on individual employee performance and contribution during
Fiscal Year 2004.

 

HIGHLIGHTS
OF THE PLAN

 

•                  The Plan is intended to provide a framework
for identifying and rewarding employees within the Company.

•                  The Plan supercedes and replaces the FY2004
Corporate Incentive Plan and the FY2004 WWAS Overachievement Bonus Plan.

•                  The Plan will be guided by an Executive
Oversight Committee (EOC), to be comprised of:

•                  Chi-Foon Chan, President and COO

•                  Steve Shevick, CFO and SR. VP of Finance

•                  Jan Collinson, Sr VP Human Resources

 

ELIGIBILITY

 

Individuals may be
considered for a Recognition Bonus if they are regular employees and:

 

•                  are employed by Synopsys as of the first
working day of the last fiscal quarter (August 1, 2004);

•                  were employed at Fiscal Year 2004 end
(October 30, 2004);

•                  are not on a Corrective Action Plan
(CAP)  when the awards are distributed.

 

1

 

2.0                                 Budget and Responsibility

 

•                  $[  ]* is available under the Plan
for distribution to eligible employees.

•                  The Sr. VP HRFA will determine final
allocation and distribution methodology.

•                  Actual Recognition Bonuses will be reviewed
and approved by the EOC.

 

3.0         Timing of Payment

 

•                  Recognition Bonuses will be awarded to
approved recipients in the first quarter of the Company’s Fiscal Year 2005.

 

IMPORTANT NOTES ABOUT THE PLAN

 

The Plan reflects the intention of Synopsys as
of the Effective Date concerning bonus awards to eligible employees.  Synopsys reserves the right to amend or
terminate the Plan at any time, with or without notice, except that any
amendment or termination will not affect bonuses paid prior to such amendment
or termination. Nothing in this Plan shall be construed to be a guarantee that
an eligible employee will receive a bonus, or to imply a contract to that
effect. This Plan does not alter the at-will relationship between the Company
and any eligible employee, and the Company reserves the right to terminate an
individual’s eligibility under the Plan at any time, for any reason, with or
without notice. Eligibility for and determination of bonus payments under the
Plan are within the sole discretion of the Company.

 

Approvals:

 

 

	
  /s/ Jan Collinson

  	
   

  	
  October 30, 2004

  	
   

  
	
  Jan Collinson

  	
   

  	
  Date

  	
   

  
	
  Senior Vice President –
  HRFA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Steven K. Shevick

  	
   

  	
  October 30, 2004

  	
   

  
	
  Steven K. Shevick

  	
   

  	
  Date

  	
   

  
	
  Chief Financial Officer

  	
   

  	
   

  	
   

  
	
  Senior Vice President –
  Finance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Chi-Foon Chan

  	
   

  	
  October 30, 2004

  	
   

  
	
  Chi-Foon Chan

  	
   

  	
  Date

  	
   

  
	
  President
  & COO

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Aart de Geus

  	
   

  	
  October
  30, 2004

  	
   

  
	
  Aart
  de Geus

  	
   

  	
  Date

  	
   

  
	
  Chairman & CEO

  	
   

  	
   

  

 

2

 

* Represents specific quantitative or
qualitative performance-related factors, or factors or criteria involving
confidential commercial or business information, the disclosure of which would
have an adverse effect on the Registrant.

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]