Document:

exv10w20

 

Exhibit 10.20

SOFTSWITCH ENTERPRISES, INC.

EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”) is entered into as of November 20, 2001, by and
between Amit Chawla (“Executive”) and Softswitch Enterprises, Inc. (the
“Company”), a Delaware corporation.

     Whereas, the Company desires to employ Executive to provide personal services to the
Company, and wishes to provide Executive with certain compensation and benefits in return for his
services;

     Whereas, Executive wishes to be employed by the Company and to provide personal
services to the Company in return for certain compensation and benefits;

     Now, Therefore, in consideration of the mutual promises and covenants contained
herein, it is hereby agreed by and between the parties hereto as follows:

     1. Employment by the Company.

          1.1 Title and Responsibilities. Subject to the terms set forth herein, the Company agrees to
employ Executive in the position of Chief Executive Officer and Vice President of Marketing, and
Executive hereby accepts such employment effective November 20, 2001 (the “Effective Date”).
During his employment with the Company, Executive will devote his best efforts and substantially
all of his business time and attention (except for vacation periods and reasonable periods of
illness or other incapacity permitted by the Company’s general employment policies) to the business
of the Company.

          1.2 Executive Position. Executive will serve in an executive capacity and shall perform the
duties of Executive’s office as required by the Board of Directors of the Company (the “Board”) and
the Chief Executive Officer of the Company (the “CEO”).

          1.3 Company Employment Policies. The employment relationship between the parties shall be
governed by the general employment policies and procedures of the Company, including those relating
to the protection of confidential information and assignment of inventions, except that when the
terms of this Agreement differ from or are in conflict with the Company’s general employment
policies or procedures, this Agreement shall control.

     2. Compensation.

          2.1 Salary. Executive shall receive for services to be rendered hereunder a base salary at an
annualized rate of $171,000, payable on a bi-monthly basis

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($7,125 per pay period). Executive will be considered for annual increases in base salary in
accordance with Company policy and subject to review and approval by the Board.

          2.2 Incentive Bonus. Executive shall also be eligible to participate in the Company’s
executive level incentive bonus plan throughout the duration of Executive’s employment with the
Company. All bonus compensation shall be subject to applicable payroll withholdings and employment
taxes. The amount of Executive’s bonus will be determined by Executive’s performance with respect
to certain measurable goals and performance objectives established jointly by the CEO, the Board
and the Executive, such as attainment by the Company of its planned financial objectives for the
applicable bonus period (the “Performance Objectives”). The Board will, in its sole discretion
determine whether Executive achieved the Performance Objectives, and the amount of Executive’s
bonus, if any.

          2.3 Stock Purchase. You will be eligible to purchase shares of the Company’s Common Stock
(the “Stock”) pursuant to a Founders’ Stock Purchase Agreement which shall include vesting
provisions and such other terms as approved by the Board.

          2.4 Standard Company Benefits. Executive shall be entitled to all rights and benefits for
which he is eligible under the terms and conditions of the standard Company benefits and
compensation plans which may be in effect from time to time and provided by the Company to its
executives, including but not limited to medical, dental and vacation.

     3. Confidential Information, Rights and Duties.

          3.1 Agreement.

               (a) Confidential Information. Executive shall be required as a condition of employment to
sign and abide by the Company’s Employee Proprietary Information and Inventions Agreement (the
“Confidentiality Agreement”) (attached hereto as Exhibit A).

               (b) Exclusive Property. Executive agrees that all Company-related business procured by the
Executive, and all Company-related business opportunities and plans made known to Executive, while
employed by the Company are and shall remain the permanent and exclusive property of the Company.

     4. Outside Activities.

          4.1 Activities. Except with the prior written consent of the Board, Executive will not during
his employment with the Company undertake or engage in any other employment, occupation or business
enterprise, other than ones in which Executive is a passive investor. Executive may engage in
civic and not-for-profit activities so long as such activities do not materially interfere with the
performance of his duties hereunder. Subject to the limitations of Sections 4.2 and 4.3 of this
Agreement and with the prior written consent of the Board, Executive may serve as a director of
other corporations and

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may devote a reasonable amount of his time to other types of business or public activities not
expressly mentioned in this paragraph. The Board may rescind its consent to Executive’s service as
a director of other corporations or participation in other business or public activities if the
Board, in its sole discretion, determines that such activities materially compromise or threaten to
materially compromise the Company’s business interests.

          4.2 Investments and Interests. Executive agrees not to acquire, assume or participate in,
directly or indirectly, any position, investment or interest known by him to be adverse or
antagonistic to the Company, its business or prospects, financial or otherwise.

          4.3 Non-Competition. During his employment by the Company, except on behalf of the Company,
Executive will not directly or indirectly, whether as an officer, director, stockholder, partner,
proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become
financially interested in, be employed by or have any business connection with any other person,
corporation, firm, partnership or other entity whatsoever known by him to compete directly with the
Company, anywhere in the world, in any line of business engaged in (or planned to be engaged in) by
the Company; provided, however, that the Executive may purchase or otherwise acquire up to (but not
more than) five percent (5%) of any class of securities of any enterprise (but without
participating in the activities of such enterprise) if such securities are listed on any national
or regional securities exchange or have been registered under Section 12(g) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”).

     5. Termination Of Employment.

          5.1 Termination With or Without Cause.

               (a) At-Will Employment. Executive’s relationship with the Company is at-will. The Company
shall have the right to terminate Executive’s employment with the Company at any time with or
without Cause (as defined below), and with or without notice. Executive may be removed from any
position he holds in the manner specified by the Bylaws of the Company and applicable law.

                    (i) Definition of Cause. For purposes of this Agreement, “Cause” shall mean one or more of
the following: (a) Executive’s conviction of a felony; (b) Executive commission of any act of
fraud with respect to the Company; (c) any intentional misconduct by Executive that has a
materially adverse effect upon the Company’s business that is not cured by Executive within thirty
(30) days of written notice given by the Company identifying such misconduct; (d) a breach by
Executive of any of Executive’s fiduciary obligations as an officer of the Company that has a
materially adverse effect upon the Company’s business that is not cured by Executive within thirty
(30) days of written notice given by the Company identifying such breach; (e) Executive’s willful
misconduct or gross negligence in performance of his duties hereunder, including Executive’s
refusal to comply in any material respect with the legal directives of the Board so long as such
directives are not inconsistent with Executive’s position and duties, that are

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not cured by Executive within thirty (30) days of written notice given by the Company
identifying such misconduct or negligence.

                    (ii) Definition of Disability. For purposes of this Agreement, to the Company may terminate
Executive’s employment based on Executive’s physical or mental disability shall exist if any
illness, disability or other incapacity renders the Executive physically or mentally unable
regularly to perform his duties hereunder for a period in excess of ninety (90) consecutive days or
more than one hundred twenty (120) days in any consecutive twelve (12) month period. The Board
shall make a good faith determination of whether Executive is physically or mentally unable to
regularly perform his duties, subject to its review and consideration of any physical and/or mental
health information provided to it by Executive. If Executive is terminated for disability or death,
the Company shall provide the benefits set forth in section 5.1(c) herein to Executive or his
estate.

               (b) Termination for Cause. If the Company terminates Executive’s employment at any time for
Cause, Executive’s salary shall cease on the date of termination, and Executive will not be
entitled to severance pay, pay in lieu of notice or any other such compensation, other than payment
of accrued salary and such other benefits as expressly required in such event by applicable law or
the terms of any applicable Company benefit plans. The Stock, all stock options and other stock
awards held by Executive shall cease vesting as of the date of termination, and shall be
exercisable thereafter only pursuant to the terms of the applicable stock option plans and
agreements.

               (c) Termination Without Cause. If the Company terminates Executive’s employment at any time
without Cause, (i) the Company shall pay to Executive severance in an aggregate amount equal to six
(6) months of Executive’s then current base salary, subject to withholdings and deductions, such
sum payable in monthly installments in accordance with the Company’s standard payroll practices,
(ii) the Company shall continue to provide health, dental and vision benefits for a period of six
(6) months commencing on the date of termination and at the same coverage terms as provided to
Executive at the date of termination, and (iii) the vesting of the Stock, all stock options and
other stock awards held by Executive shall immediately accelerate with respect to the number of
shares that would otherwise vest if the Executive was to remain employed by the Company over the
six (6) month period following the date of such termination. Executive shall not be entitled to
this severance pay and vesting acceleration unless and until the release requirements set forth in
Section 8 of this Agreement are satisfied and the period for revocation of such release has
expired.

          5.2 Resignation With or Without Good Reason.

               (a) Executive’s Resignation. Executive may resign from his employment with the Company at any
time, with or without notice, and with or without Good Reason (as defined below).

               (b) Executive’s Resignation Without Good Reason. In the event that Executive resigns his
employment without Good Reason, Executive will not be

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entitled to severance pay, pay in lieu of notice or any other such compensation other than
payment of accrued salary and such other benefits as expressly required in such event by applicable
law or the terms of any applicable Company benefit plans. The Stock, all stock options and any
other stock awards held by Executive shall cease vesting as of the date Executive’s resignation,
other than for Good Reason, becomes effective and shall be exercisable thereafter only pursuant to
the terms of the applicable stock option plans and agreements.

               (c) Executive’s Resignation for Good Reason. Executive may resign his employment for Good
Reason (as defined below) so long as Executive tenders his resignation to the Company within thirty
(30) days after the occurrence of the event which forms the basis for his resignation for Good
Reason. In the event that Executive resigns his employment for Good Reason, (i) the Company shall
pay to Executive severance in an aggregate amount equal to six (6) months of Executive’s then
current base salary, subject to withholdings and deductions, such sum payable in monthly
installments in accordance with the Company’s standard payroll practices, (ii) the Company shall
continue to provide health, dental and vision benefits for a period of six (6) months commencing on
the date of termination and at the same coverage terms as provided to Executive at the date of
termination and (iii) the vesting of the Stock, all stock options and other stock awards held by
Executive shall immediately accelerate with respect to the number of shares that would otherwise
vest if the Executive was to remain employed by the Company over the six (6) month period following
the date of such termination. Executive shall not be entitled to any of this severance pay and
vesting acceleration unless and until the release requirements set forth in Section 8 of this
Agreement are satisfied and the period for revocation of such release has expired.

               (d) Definition of Good Reason. For the purposes of this Agreement, “Good Reason” shall mean
any one of the following events which occurs on or after the commencement of Executive’s employment
without Executive’s consent: (i) any reduction of Executive’s then current annual base salary;
(ii) any material diminution of the Executive’s duties, responsibilities, or authority to a level
below that of an officer of the Company, excluding for this purpose (1) an isolated or inadvertent
action not taken in bad faith which is remedied by the Company immediately after notice thereof is
given by the Executive, and (2) any change in Executive’s title, duties, responsibilities or
authority if Executive is given or retains other officer level duties within the Company; or (iii)
any requirement that the Executive relocate to a work site more than twenty five (25) miles from
the Company’s current location. Notwithstanding the foregoing, Executive acknowledges that in the
event that the Company hires a new CEO, the change in Executive’s title and the transfer of the
duties typically associated with the CEO position from Executive to the CEO shall not constitute
Good Reason provided that Executive is given or retains other officer level duties within the
Company.

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          5.3 Cessation of Severance Benefits. If Executive violates any provision of Sections 3, 7 or
8 of this Agreement, any severance payments or other benefits being provided to Executive will
cease immediately, and Executive will not be entitled to any further compensation and benefits from
the Company.

     6. Change of Control.

          6.1 Definition. For purposes of this Agreement, Change of Control means the occurrence of any
of the following: (i) a sale, lease, or other disposition of all or substantially all of the
assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving
corporation; (iii) a reverse merger involving the Company in which the Company is the surviving
corporation but the shares of common stock of the Company (the “Common Stock”) outstanding
immediately preceding the merger are converted by virtue of the merger into other property, whether
in the form of securities, cash or otherwise; (iv) an acquisition by any person, entity or group
within the meaning of Section 13(d) or 14(d) of the Exchange Act or any comparable successor
provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the
Company or an Affiliate of the Company) of the beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act, or comparable successor rules) of securities of the
Company representing at least fifty percent (50%) of the combined voting power entitled to vote in
the election of directors; or, (v) in the event that the individuals who, as of the Effective Date,
are members of the Board (the “Incumbent Board”), cease for any reason to constitute at least fifty
percent (50%) of the Company’s Board of Directors. (If the election, or nomination for election by
the Company’s shareholders, of any new member of the Company’s Board of Directors is approved by a
vote of at least fifty percent (50%) of the Incumbent Board, such new member of the Board of
Directors shall be considered as a member of the Incumbent Board.) Notwithstanding the foregoing,
for the purposes of this Agreement and with respect to any and all clauses of this Section of this
Agreement, an initial public offering of the securities of the Company (an “IPO”) or any
transactions or events constituting part of an IPO shall not be deemed to constitute or in any way
effect a Change of Control.

          6.2 Change of Control Termination. In the event Executive’s employment with the Company is
involuntarily terminated without Cause by the Company or its successor as Cause is defined in
section 5.1(c) herein, or Executive resigns for Good Reason, and such termination or resignation
occurs within eighteen (18) months following a Change of Control, Executive shall be entitled to:
(a) the Company shall pay to Executive severance in an aggregate amount equal to six (6) months of
Executive’s then current base salary, subject to withholdings and deductions, such sum payable in
monthly installments in accordance with the Company’s standard payroll practices; (b) health,
dental and vision benefits for a period of six (6) months commencing on the date of termination and
at the same coverage terms as provided to Executive at the date of termination and (c) the
immediate acceleration of vesting on all stock, stock options and other stock awards held by
Executive in an amount of shares equal to 100% of the then unvested shares; provided, however, that
if Executive’s employment is terminated following a Change in Control due to Executive’s willful
and continued failure to substantially perform assigned duties after there is delivered to
Executive by Executive’s

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supervisor a written demand for substantial performance which sets forth in detail the
specific respects in which such supervisor believes Executive has not substantially performed his
duties, Executive shall not be entitled to the benefit described in clause (c) above, but rather
will be entitled to the immediate acceleration of vesting on all stock, stock options and other
stock awards held by Executive in an amount of shares equal to 50% of the then unvested shares.
After a Change of Control, Executive will continue to fulfill his duty of loyalty to the Company,
or its successor, by using his best efforts to perform his job duties satisfactorily.
Executive’s receipt of the severance payment and vesting acceleration provided in this Section 6.2
shall be conditioned on Executive’s full compliance with the release requirements set forth in
Section 8 of this Agreement and the period for revocation of such release has expired.
Notwithstanding anything contained in this Agreement to the contrary, if Executive receives the
benefits pursuant to this Section 6.2, he shall not entitled to any other benefits under this
Agreement, including without limitation, Sections 5.1(c) and 5.2(c).

     7. Nonsolicitation. In the event Executive’s employment with the Company is
terminated by the Company or the Executive, with or without Cause or Good Reason, then for one (1)
year immediately following the termination date, Executive shall not, without first obtaining the
prior written approval of the Company directly or indirectly solicit, induce, persuade or entice,
or attempt to do so, or otherwise cause, or attempt to cause, any employee or independent
contractor of the Company to terminate his or her employment or contracting relationship in order
to become an employee, or independent contractor to or for any person or entity.

     8. Release. As a condition of receiving the severance benefits under this Agreement
to which Executive would not otherwise be entitled, Executive shall execute a release in the form
attached hereto as Exhibit B (the “Release”). Unless the Release is executed by Executive and
delivered to the Company within twenty-one (21) days after the termination of Executive’s
employment with the Company, Executive shall not receive any severance benefits (including
severance payments and vesting acceleration) provided for under this Agreement. Such benefits
shall not commence until such time as all period of revocation of such release have expired.

9. General Provisions.

          9.1 Notices. Any notices provided hereunder must be in writing and shall be deemed effective
upon the earlier of personal delivery (including, personal delivery by facsimile transmission),
delivery by express delivery service (e.g. Federal Express), or the third day after mailing by
first class mail, to the Company at its primary office location and to Executive at his address as
listed on the Company payroll (which address may be changed by written notice).

          9.2 Severability. Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any
other provision or any other jurisdiction, but such

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invalid, illegal or unenforceable provision will be reformed, construed and enforced in such
jurisdiction so as to render it valid, legal, and enforceable consistent with the intent of the
parties insofar as possible.

          9.3 Waiver. If either party should waive any breach of any provisions of this Agreement, he
or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or
any other provision of this Agreement.

          9.4 Entire Agreement. This Agreement, including all Exhibits, constitutes the entire
agreement between Executive and the Company regarding the subject matter hereof and it supersedes
any prior agreement, promise, representation, written or otherwise, between Executive and the
Company with regard to this subject matter. It is entered into without reliance on any agreement,
or promise, or representation, other than those expressly contained or incorporated herein, and it
cannot be modified or amended except in a writing signed by Executive and a duly authorized officer
of the Company.

          9.5 Counterparts. This Agreement may be executed in separate counterparts, any one of which
need not contain signatures of more than one party, but all of which taken together will constitute
one and the same Agreement. Signatures transmitted via facsimile shall be deemed the equivalent of
originals.

          9.6 Headings and Construction. The headings of the sections hereof are inserted for
convenience only and shall not be deemed to constitute a part hereof or to affect the meaning
thereof. For purposes of construction of this Agreement, any ambiguities shall not be construed
against either party as the drafter.

          9.7 Successors and Assigns. This Agreement is intended to bind and inure to the benefit of
and be enforceable by Executive, the Company and their respective successors, assigns, heirs,
executors and administrators, except that Executive may not assign any of his duties hereunder and
he may not assign any of his rights hereunder without the written consent of the Company.

          9.8 Attorney Fees. If either party hereto brings any action to enforce his or its rights
hereunder, the prevailing party in any such action shall be entitled to recover his or its
reasonable attorneys’ fees and costs incurred in connection with such action.

          9.9 Arbitration. To provide a mechanism for rapid and economical dispute resolution,
Executive and the Company agree that any and all disputes, claims, or causes of action, in law or
equity, arising from or relating to this Agreement (including the Release) or its enforcement,
performance, breach, or interpretation, or to Executive’s employment with the Company or the
termination of Executive’s employment with the Company, will be resolved, to the fullest extent
permitted by law, by final, binding, and confidential arbitration held in Santa Clara County,
California and conducted by Judicial Arbitration & Mediation Services (“JAMS”), under its
then-existing Rules and Procedures. Executive understands and agrees that under this Section 9.9 of
the Agreement, Executive is waiving his right to a jury trial and his right to file any
administrative agency charge

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with regard to any such disputes, claims or causes of action, including, but not limited to,
all federal and state statutory and common law claims, claims related to Executive’s employment
with the Company or to the termination of that employment, claims related to any breach of
contract, tort, wrongful termination, discrimination, wages or benefits, or claims for any form of
equity or compensation. Notwithstanding the provisions of this Section 9.9, any and all disputes,
claims or causes of action, in law or in equity, arising from or relating to the Confidentiality
Agreement will not be subject to mandatory arbitration, but may be resolved in the courts of the
State of California as set forth in Section 10 of the Confidentiality Agreement. Nothing in this
Section 9.9 of this Agreement is intended to prevent either the Executive or the Company from
obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such
arbitration.

          9.10 Governing Law. All questions concerning the construction, validity and interpretation of
this Agreement shall be governed by the law of the State of California as applied to contracts made
and to be performed entirely within California.

          9.11 Exhibits.

Exhibit A – Proprietary Information and Inventions Agreement

Exhibit B – Release Agreement

[Remainder of page intentionally left blank]

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     In Witness Whereof, the parties have executed this Agreement effective as of the
Effective Date above written.

	 	 	 	 	 
	Softswitch Enterprises, Inc.	 	 
	 
	 	 	 	 
	By:
	 	/s/  
Milledge Hart	 	 
	 

	 

	 	 
	 
	 	 	 	 
	Print Name:
	 	Milledge Hart	 	 
	 

	 

	 	 
	 
	 	 	 	 
	Title:
	 	President	 	 
	 

	 

	 	 
	 
	 	 	 	 
	Amit Chawla	 	 
	 
	 	/s/
 Amit Chawla	 	 
	 	 	 

10.

 

Exhibit A

Proprietary Information and Inventions Agreement

 

 

EXHIBIT B

Release Agreement

I understand that my position with Softswitch Enterprises, Inc. (the “Company”) terminated
effective                                         ,                      (the “Separation Date”). The Company has agreed that if I choose to
sign this Release, the Company will pay me certain severance benefits (minus the standard
withholdings and deductions) pursuant to the terms of the Employment Agreement (the “Agreement”)
entered into as of                                         , 2000, between myself and the Company, and any agreements
incorporated therein by reference. I understand that I am not entitled to such severance benefits
unless I sign this Release. I understand that, regardless of whether I sign this Release, the
Company will pay me all of my accrued salary and vacation through the Separation Date, to which I
am entitled by law.

In consideration for the severance benefits I am receiving under the Agreement, I hereby release
the Company and its officers, directors, agents, attorneys, employees, shareholders, parents,
subsidiaries, and affiliates from any and all claims, liabilities, demands, causes of action,
attorneys’ fees, damages, or obligations of every kind and nature, whether they are now known or
unknown, arising at any time prior to the date I sign this Release. This general release includes,
but is not limited to: all federal and state statutory and common law claims, claims related to my
employment or the termination of my employment or related to breach of contract, tort, wrongful
termination, discrimination, wages or benefits, or claims for any form of equity or compensation.
Notwithstanding the release in the preceding sentence, I am not releasing any right of
indemnification I may have for any liabilities arising from my actions within the course and scope
of my employment with the Company or within the course and scope of my role as a member of the
Board of Directors of the Company.

In releasing claims unknown to me at present, I am waiving all rights and benefits under Section
1542 of the California Civil Code, and any law or legal principle of similar effect in any
jurisdiction: “A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.”

If I am forty (40) years of age or older as of the Separation Date, I acknowledge that I am
knowingly and voluntarily waiving and releasing any rights I may have under the federal Age
Discrimination in Employment Act of 1967, as amended (“ADEA”). I also acknowledge that the
consideration given for the waiver in the above paragraph is in addition to anything of value to
which I was already entitled. I have been advised by this writing, as required by the ADEA that:
(a) my waiver and release do not apply to any claims that may arise after my signing of this
Release; (b) I should consult with an attorney prior to executing this Release; (c) I have
twenty-one (21) days within which to consider this Release (although I may choose to voluntarily
execute this Release earlier); (d) I have seven (7) days following the execution of this release to
revoke the Release; and (e) this Release will not be effective until the eighth day after this
Release has been signed both by me and by the Company (“Effective Date”).

 

 

	 	 	 	 	 	 	 	 	 
	Agreed:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Date	 	 	 	Executive Name	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	SOFTSWITCH ENTERPRISES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 

	 	 

2.

 

EXHIBIT A

EMPLOYEE PROPRIETARY INFORMATION

AND INVENTIONS AGREEMENT

     In consideration of my employment or continued employment by NEXVERSE NETWORKS, INC.
(the “Company”), and the compensation now and hereafter paid to me, I hereby agree as follows:

1. Nondisclosure

     1.1 Recognition of Company’s Rights; Nondisclosure. At all times during my employment and
thereafter, I will hold in strictest confidence and will not disclose, use, lecture upon or publish
any of the Company’s Proprietary Information (defined below), except as such disclosure, use or
publication may be required in connection with my work for the Company, or unless an officer of the
Company expressly authorizes such in writing. I will obtain Company’s written approval before
publishing or submitting for publication any material (written, verbal, or otherwise) that relates
to my work at Company and/or incorporates any Proprietary Information. I hereby assign to the
Company any rights I may have or acquire in such Proprietary Information and recognize that all
Proprietary Information shall be the sole property of the Company and its assigns. I have been
informed and acknowledge that the unauthorized taking of the Company’s trade secrets could result
in a civil liability under California Civil Code Section 3426, and that, if willful, could result
in an award for double the amount of the Company’s damages and attorneys’ fees; and is a crime
under California Penal Code Section 444(c), punishable by imprisonment for a time not exceeding one
(1) year, or by a fine not exceeding five thousand dollars ($5,000), or by both.

     1.2 Proprietary Information. The term “Proprietary Information” shall mean any and all
confidential and/or proprietary knowledge, data or information of the Company. By way of
illustration but not limitation, “Proprietary Information” includes (a) trade secrets, inventions,
mask works, ideas, processes, formulas, source and object codes, data, programs, other works of
authorship, know-how, improvements, discoveries, developments, designs and techniques (hereinafter
collectively referred to as “Inventions”); and (b) information regarding plans for research,
development, new products, marketing and selling, business plans, budgets and unpublished financial
statements, licenses, prices and costs, suppliers and customers; and (c) information regarding the
skills and compensation of other employees of the Company.

     1.3 Third Party Information. I understand, in addition, that the Company has received and in
the future will receive from third parties confidential or proprietary information (“Third Party
Information”) subject to a duty on the Company’s part to maintain the confidentiality of such
information and to use it only for certain limited purposes. During the term of my employment and
thereafter, I will hold Third Party Information in the strictest confidence and will not disclose
to anyone (other than Company personnel who need to know such information in connection with their
work for the Company) or use, except in connection with my work for the Company, Third Party
Information unless expressly authorized by an officer of the Company in writing.

     1.4 No Improper Use of Information of Prior Employers and Others. During my employment by the
Company I will not improperly use or disclose any confidential information or trade secrets, if
any, of any former employer or any other person to whom I have an obligation of confidentiality,
and I will not bring onto the premises of the Company any unpublished documents or any property
belonging to any former employer or any other person to whom I have an obligation of
confidentiality unless consented to in writing by that former employer or person. I will use in
the performance of my duties only information which is generally known and used by persons with
training and experience comparable to my own, which is common knowledge in the industry or
otherwise legally in the public domain, or which is otherwise provided or developed by the Company.

2. Assignment of Inventions.

     2.1 Proprietary Rights. The term “Proprietary Rights” shall mean all trade secret, patent,
copyright, mask work and other intellectual property rights throughout the world.

     2.2 Prior Inventions. Inventions, if any, patented or unpatented, which I made prior to the
commencement of my employment with the Company are excluded from the scope of this Agreement. To

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preclude any possible uncertainty, I have set forth on Exhibit A-2 (Previous Inventions)
attached hereto a complete list of all Inventions that I have, alone or jointly with others,
conceived, developed or reduced to practice or caused to be conceived, developed or reduced to
practice prior to the commencement of my employment with the Company, that I consider to be my
property or the property of third parties and that I wish to have excluded from the scope of this
Agreement (collectively referred to as “Prior Inventions”). If disclosure of any such Prior
Invention would cause me to violate any prior confidentiality agreement, I understand that I am not
to list such Prior Inventions in Exhibit A-2 but am only to disclose a cursory name for each such
invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to
such inventions has not been made for that reason. A space is provided on Exhibit A-2 for such
purpose. If no such disclosure is attached, I represent that there are no Prior Inventions. If,
in the course of my employment with the Company, I incorporate a Prior Invention which I own or
have rights to into a Company product, process or machine, the Company is hereby granted and shall
have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with rights to
sublicense through multiple tiers of sublicensees) to make, have made, modify, use and sell such
Prior Invention. Notwithstanding the foregoing, I agree that I will not incorporate, or permit to
be incorporated, Prior Inventions in any Company Inventions without the Company’s prior written
consent.

     2.3 Assignment of Inventions. Subject to Sections 2.4, and 2.6, I hereby assign and agree to
assign in the future (when any such Inventions or Proprietary Rights are first reduced to practice
or first fixed in a tangible medium, as applicable) to the Company all my right, title and interest
in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or not
patentable or registrable under copyright or similar statutes, made or conceived or reduced to
practice or learned by me, either alone or jointly with others, during the period of my employment
with the Company. Inventions assigned to the Company, or to a third party as directed by the
Company pursuant to this Section 2, are hereinafter referred to as “Company Inventions.”

     2.4 Nonassignable Inventions. This Agreement does not apply to an Invention which qualifies
fully as a nonassignable Invention under Section 2870 of the California Labor Code (hereinafter
“Section 2870”). I have reviewed the notification on Exhibit A-1 (Limited Exclusion Notification)
and agree that my signature acknowledges receipt of the notification.

     2.5 Obligation to Keep Company Informed. During the period of my employment with the Company,
I will promptly disclose to the Company fully and in writing all Inventions authored, conceived or
reduced to practice by me, either alone or jointly with others. In addition, during the period
ending six (6) months after termination of my employment with the Company I will promptly disclose
to the Company fully and in writing all Inventions authored, conceived or reduced to practice by
me, either alone or jointly with others that are related to the business of the Company. In
addition, I will promptly disclose to the Company all patent applications filed by me or on my
behalf within a year after termination of employment. If disclosure under the foregoing sentence
would cause me to violate any confidentiality agreement I enter into after termination of my
employment with the Company, I understand that I am not required to disclose such Inventions but am
only required to disclose a cursory name for each such invention, a listing of the party(ies) to
whom it belongs and the fact that full disclosure as to such inventions has not been made for that
reason. At the time of each such disclosure, I will advise the Company in writing of any
Inventions that I believe fully qualify for protection under Section 2870; and I will at that time
provide to the Company in writing all evidence necessary to substantiate that belief. The Company
will keep in confidence and will not use for any purpose or disclose to third parties without my
consent any confidential information disclosed in writing to the Company pursuant to this Agreement
relating to Inventions that qualify fully for protection under the provisions of Section 2870. I
will preserve the confidentiality of any Invention that does not fully qualify for protection under
Section 2870.

     2.6 Government or Third Party. I also agree to assign all my right, title and interest in and
to any particular Company Invention to a third party, including without limitation the United
States, as directed by the Company.

     2.7 Works for Hire. I acknowledge that all original works of authorship which are made by me
(solely or jointly with others) within the scope of my employment and which are protectable by
copyright are “works made for hire,” pursuant to United States Copyright Act (17 U.S.C., Section
101).

     2.8 Enforcement of Proprietary Rights. I will assist the Company in every proper and
reasonable way to obtain, and from time to time enforce, United States and foreign Proprietary
Rights

2.

 

relating to Company Inventions in any and all countries. To that end I will execute, verify
and deliver such documents and perform such other acts (including appearances as a witness) as the
Company may reasonably request for use in applying for, obtaining, perfecting, evidencing,
sustaining and enforcing such Proprietary Rights and the assignment thereof. In addition, I will
execute, verify and deliver assignments of such Proprietary Rights to the Company or its designee.
My obligation to assist the Company with respect to Proprietary Rights relating to such Company
Inventions in any and all countries shall continue beyond the termination of my employment, but the
Company shall compensate me at a reasonable rate after my termination for the time actually spent
by me at the Company’s request on such assistance.

In the event the Company is unable for any reason, after reasonable effort, to secure my signature
on any document needed in connection with the actions specified in the preceding paragraph, I
hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as
my agent and attorney in fact, which appointment is coupled with an interest, to act for and in my
behalf to execute, verify and file any such documents and to do all other lawfully permitted acts
to further the purposes of the preceding paragraph with the same legal force and effect as if
executed by me. I hereby waive and quitclaim to the Company any and all claims, of any nature
whatsoever, which I now or may hereafter have for infringement of any Proprietary Rights assigned
hereunder to the Company.

3. Records. I agree to keep and maintain adequate and current records (in the form of
notes, sketches, drawings and in any other form that may be required by the Company) of all
Proprietary Information developed by me and all Inventions made by me during the period of my
employment at the Company, which records shall be available to and remain the sole property of the
Company at all times.

4. Additional Activities. I agree that during the period of my employment by the Company
I will not, without the Company’s express written consent, engage in any employment or business
activity related to my activities for the Company or the Company’s business, other than for the
Company. I agree further that for the period of my employment by the Company and for one (l) year
after the date of termination of my employment by the Company I will not, either directly or
through others, solicit or attempt to solicit any employee, independent contractor or consultant of
the company to terminate his or her relationship with the Company in order to become an employee,
consultant or independent contractor to or for any other person or entity. I agree further that
for the period of my employment by the Company and for one (1) year after the date of termination
of my employment by the Company I shall not solicit any customer of the Company or licensee of the
Company’s products, in each case, that are known to me, with respect to any business, products or
services that are directly competitive to the products or services offered by the Company or under
development as of the date of termination of my employment with the Company.

5. No Conflicting Obligation. I represent that my performance of all the terms of this
Agreement and as an employee of the Company does not and will not breach any agreement to keep in
confidence information acquired by me in confidence or in trust prior to my employment by the
Company. I have not entered into, and I agree I will not enter into, any agreement either written
or oral in conflict herewith.

6. Return of Company Documents. When I leave the employ of the Company, I will deliver to
the Company any and all drawings, notes, memoranda, specifications, devices, formulas, and
documents, together with all copies thereof, and any other material containing or disclosing any
Company Inventions, Third Party Information or Proprietary Information of the Company. I further
agree that any property situated on the Company’s premises and owned by the Company, including
disks and other storage media, filing cabinets or other work areas, is subject to inspection by
Company personnel at any time with or without notice. Prior to leaving, I will cooperate with the
Company in completing and signing the Company’s termination statement.

7. Legal and Equitable Remedies. Because my services are personal and unique and because
I may have access to and become acquainted with the Proprietary Information of the Company, the
Company shall have the right to enforce this Agreement and any of its provisions by injunction,
specific performance or other equitable relief, without bond and without prejudice to any other
rights and remedies that the Company may have for a breach of this Agreement.

8. Notices. Any notices required or permitted hereunder shall be given to the appropriate
party at the address specified below or at such other address as the party shall specify in
writing. Such notice shall be deemed given upon personal delivery to the

3.

 

appropriate address or if sent by certified or registered mail, three (3) days after the date of
mailing.

9. Notification of New Employer. In the event that I leave the employ of the Company, I
hereby consent to the notification of my new employer of my rights and obligations under this
Agreement.

10. General Provisions.

     10.1 Governing Law; Consent to Personal Jurisdiction. This Agreement will be governed by and
construed according to the laws of the State of California, as such laws are applied to agreements
entered into and to be performed entirely within California between California residents. I hereby
expressly consent to the personal jurisdiction of the state and federal courts located in Santa
Clara County, California for any lawsuit filed there against me by Company arising from or related
to this Agreement.

     10.2 Severability. In case any one or more of the provisions contained in this Agreement
shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement,
and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein. If moreover, any one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to duration, geographical scope,
activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to
the extent compatible with the applicable law as it shall then appear.

     10.3 Successors and Assigns. This Agreement will be binding upon my heirs, executors,
administrators and other legal representatives and will be for the benefit of the Company, its
successors, and its assigns.

     10.4 Survival. The provisions of this Agreement shall survive the termination of my
employment and the assignment of this Agreement by the Company to any successor in interest or
other assignee.

     10.5 Employment. I agree and understand that nothing in this Agreement shall confer any right
with respect to continuation of employment by the Company, nor shall it interfere in any way with
my right or the Company’s right to terminate my employment at any time, with or without cause.

     10.6 Waiver. No waiver by the Company of any breach of this Agreement shall be a waiver of
any preceding or succeeding breach. No waiver by the Company of any right under this Agreement
shall be construed as a waiver of any other right. The Company shall not be required to give
notice to enforce strict adherence to all terms of this Agreement.

     10.7 Advice of Counsel. I ACKNOWLEDGE THAT, IN EXECUTING THIS AGREEMENT, I HAVE HAD THE
OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL OF
THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY
PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.

     10.8 Entire Agreement. The obligations pursuant to Sections 1 and 2 of this Agreement shall
apply to any time during which I was previously employed, or am in the future employed, by the
Company as a consultant if no other agreement governs nondisclosure and assignment of inventions
during such period. This Agreement is the final, complete and exclusive agreement of the parties
with respect to the subject matter hereof and supersedes and merges all prior discussions between
us. No modification of or amendment to this Agreement, nor any waiver of any rights under this
Agreement, will be effective unless in writing and signed by the party to be charged. Any
subsequent change or changes in my duties, salary or compensation will not affect the validity or
scope of this Agreement.

     This Agreement shall be effective as of the first day of my employment with the Company,
namely:                                         , 200_.

     I have read this Agreement carefully and understand its terms. I have completely filled
out Exhibit A-2 to this Agreement.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 

	 	 
	 
	 	 	 	 
	 	 	 
	(Signature)	 	 
	 
	 	 	 	 
	 	 	 
	(Printed Name)	 	 

4.

 

	 	 	 	 	 
	Accepted and Agreed To:	 	 
	 
	 	 	 	 
	NEXVERSE NETWORKS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 

	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 

	 	 
	 
	 	 	 	 
	 	 	 
	(Address)
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 

	 

	 	 

5.

 

Exhibit A-1

LIMITED EXCLUSION NOTIFICATION

     This is to notify you in accordance with Section 2872 of the California Labor Code
that the foregoing Agreement between you and the Company does not require you to assign or offer to
assign to the Company any invention that you developed entirely on your own time without using the
Company’s equipment, supplies, facilities or trade secret information except for those inventions
that either:

11. Relate at the time of conception or reduction to practice of the invention to the Company’s
business, or actual or demonstrably anticipated research or development of the Company; or

12. Result from any work performed by you for the Company.

     To the extent a provision in the foregoing Agreement purports to require you to assign an
invention otherwise excluded from the preceding paragraph, the provision is against the public
policy of this state and is unenforceable.

     This limited exclusion does not apply to any patent or invention covered by a contract between
the Company and the United States or any of its agencies requiring full title to such patent or
invention to be in the United States.

     I acknowledge receipt of a copy of this notification.

	 	 	 	 	 	 	 
	 

	 	By:	 

	 	 
	 

	 	 	 	(Printed Name of Employee)	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 

	 	 

	 	 	 
	Witnessed by:
	 	 
	 
	 	 
	 

(Printed Name of Representative)

	 	 

A-1.

 

Exhibit A-2

	 	 	 	 	 
	TO:

	 	NEXVERSE NETWORKS, INC.	 	 
	 
	 	 	 	 
	FROM:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	DATE:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	SUBJECT:

	 	Previous Inventions	 	 

     1. Except as listed in Section 2 below, the following is a complete list of all inventions or
improvements relevant to the subject matter of my employment by NEXVERSE NETWORKS, INC. (the
“Company”) that have been made or conceived or first reduced to practice by me alone or jointly
with others prior to my engagement by the Company:

	 	 	 	 	 	 	 
	 	 	o	 	No inventions or improvements. Initial here:                     
	 
	 	 	 	 	 	 
	 	 	o	 	See below:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

o       Additional sheets attached.

     2. Due to a prior confidentiality agreement, I cannot complete the disclosure under Section 1
above with respect to inventions or improvements generally listed below, the proprietary rights and
duty of confidentiality with respect to which I owe to the following party(ies):

	 	 	 	 	 	 	 
	 	 	Invention or Improvement	 	Party(ies)	 	Relationship
	1.

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	2.

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	3.

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	o

	 	Additional sheets attached.exv10w21

 

EXHIBIT 10.21

April 13, 2005

Mr. Al Wood

C/O Veraz Networks, Inc.

926 Rock Avenue, Suite 20

San Jose, CA 95131

Re: Offer of Employment with Veraz Networks, Inc.

Dear Al:

Veraz Networks, Inc. (the “Company”) is pleased to offer you employment as the Company’s Chief
Financial Officer on the terms and conditions set forth in this letter agreement (the “Agreement”).

     1. Duties. You will be responsible for all financial operations of the Company and shall
perform such duties as are ordinary, customary and necessary in the Chief Financial Officer role.
You will report to the Company’s Chief Executive Officer (“CEO”). You shall devote your best
efforts and full business time, skill and attention to the performance of your duties. You will
also be expected to adhere to the general employment policies and practices of the Company that may
be in effect from time to time, except that when the terms of this Agreement conflict with the
Company’s general employment policies or practices, this Agreement will control. The Company may
change your position, duties, work location and compensation from time to time in its discretion.

     2. Compensation. You will be paid an annual base salary of $210,000, less applicable
deductions and withholdings, to be paid semi-monthly in accordance with the Company’s payroll
practices, as may be in effect from time to time. You will also receive a sign-on bonus equal to
two months of your base salary, payable on the first regularly-scheduled payroll date following
your first day of employment. If, prior to the first anniversary of your hire, your employment
terminates at your request, or the Company terminates your employment for Cause (as defined below),
and neither your resignation nor termination occurs following a Change of Control (as defined
herein), then you must repay a portion of this bonus, prorated based on your actual length of
employment during the period from your start date through one year after your hire date.

     3. Benefits. The Company will provide you with medical, dental, life, supplemental life, and
disability insurance, as well as sick leave, paid vacation and other Company-sponsored benefits and
programs on the same terms and conditions as such benefits are generally available to its executive
officers. The Company may, from time to time, change these benefits in its discretion. Additional
information regarding these benefits is available for your review upon request.

Initialed
: AJW

 

 

Al Wood

Page 2

     4. Stock Option. Subject to approval by the Company’s Board of Directors (the “Board”), the
Company will grant you a stock option to purchase one hundred fifty thousand (150,000) shares of
the Company’s common stock (the “Option”). The Option shall be issued pursuant to the terms and
conditions of the Company’s 2001 Equity Incentive Plan (the “Plan”) and the per share exercise
price shall be the fair market value of the Company’s common stock on the date of grant as
determined by the Board. The Option shall vest over a four-year period, with one quarter (1/4) of
the shares subject to the Option vesting on the one year anniversary of your Commencement Date (as
defined herein), and the remaining portion of the shares vesting equally over the following 36
months of continuous service thereafter. Except as otherwise set forth herein, all terms,
conditions and limitations of the Options shall be governed by the Plan and related documents.

     5. Performance Bonuses. Each year, you will be eligible for an annual incentive bonus equal
to thirty percent (30%) of your annual base salary. Whether you receive such a bonus, and the
amount of any such bonus, shall be determined by the Board in its sole discretion, and shall be
based on achievement of annualized objectives to be established by the Board and the CEO. Bonuses
are generally paid at the end of the first quarter of the following year and are subject to
standard payroll deductions and withholdings. You must be employed on the day that your bonus (if
any) is paid in order to earn the bonus. Therefore, if your employment is terminated either by you
or the Company for any reason prior to the bonus being paid, you will not have earned the bonus and
no partial or prorated bonus will be paid.

     6. Change of Control Termination. Subject to the terms and conditions set forth in this
paragraph 6, if your employment with the Company is terminated by the Company without Cause (as
defined herein) or you resign for Good Reason (as defined herein), and either such event occurs
within twelve (12) months after a Change of Control (as defined herein), then, as of the date of
termination, the vesting of one hundred percent (100%) of the shares subject to the Option that
remain subject to vesting shall be accelerated in full. Additionally, if your termination is
effective after the end of a calendar year, but before you have been paid your performance bonus
for that preceding year, then the Company will pay you, as severance, your performance bonus for
the preceding year.

          (a) Change of Control. “Change of Control” shall mean the consummation of any one of the
following events: (a) a sale, lease or other disposition of all or substantially all of the assets
of the Company; (b) a consolidation or merger of the Company with or into any other corporation or
other entity or person, or any other corporate reorganization, in which the shareholders of the
Company immediately prior to such consolidation, merger or reorganization, own less than 50% of the
Company’s outstanding voting power of the surviving entity (or its parent) following the
consolidation, merger or reorganization or (c) any transaction (or series of related transactions
involving a person or entity, or a group of affiliated persons or entities) in which in excess of
fifty percent (50%) of the Company’s outstanding voting power is transferred (excluding (i) any
consolidation or merger effected exclusively to change the domicile of the Company, or (ii) any
transaction or series of transactions principally for bona fide equity financing purposes in which
cash is received by the Company or any successor or indebtedness of the Company is cancelled or
converted or a combination thereof).

Initialed
: AJW

 

 

AL Wood

Page 3

          (b) Cause. For purposes of this Agreement, “Cause” shall mean one or more of the following:
(a) your conviction of a felony; (b) your commission of any act of fraud with respect to the
Company; (c) any intentional misconduct by you that has a material adverse effect upon the
Company’s business that is not cured by you within thirty (30) days after written notice is given
to you by the Company identifying such misconduct; (d) your breach of any fiduciary or contractual
obligation that you owe to the Company that has a material adverse effect upon the Company’s
business and is not cured by you within thirty (30) days after written notice is given to you by
the Company identifying such breach; (e) willful misconduct or gross negligence in the performance
of your duties hereunder, including (without limitation) your refusal to comply in any material
respect with the legal directives of the Board or the CEO, so long as such directives are not
inconsistent with your position and duties, that are not cured by you within thirty (30) days after
written notice is given to you by the Company identifying such misconduct or negligence.

          (c) Good Reason. For the purposes of this Agreement, “Good Reason” shall mean any one of the
following events which occurs on or after the commencement of your employment without your consent:
(i) any reduction of your then current annual base salary; (ii) any material diminution of your
duties, responsibilities, or authority to a level below that of an officer of the Company,
excluding for this purpose (1) an isolated or inadvertent action not taken in bad faith that is
remedied by the Company immediately after notice thereof is given by you, and (2) any change in
your title, duties, responsibilities or authority if you are given or you retain other officer
level duties within the Company; or (iii) any requirement that you relocate to a work site more
than twenty five (25) miles from the Company’s current location.

          (d) Release Requirements. To receive the Change of Control accelerated vesting benefits and
bonus payment set forth above, you must (i) first sign and deliver to the Company a general release
of claims, in a form acceptable to the Company, within thirty (30) days after the date your
employment with the Company ends, and allow that release to become effective; and (ii) not be in
breach of any agreement between you and the Company at the time of the receipt of such benefits.

     7. Severance for Termination without Cause or Resignation for Good Reason. Subject to the
terms and conditions set forth in this paragraph 7, if at any time the Company terminates your
employment without Cause or you resign for Good Reason, then the Company shall provide you with a
lump sum severance payment equal to six (6) months of your base salary then in effect, less
applicable deductions and withholdings. To receive this severance payment, you must (i) first sign
and deliver to the Company a general release of claims, in a form acceptable to the Company, within
thirty (30) days after the date your employment with the Company ends, and allow that release to
become effective; and (ii) not be in breach of any agreement between you and the Company at the
time of such payment. The severance payment will be paid to you within ten (10) days after the
date you return your signed release to the Company.

Initialed
: AJW

 

 

Al Wood

Page 4

     8. Confidentiality Obligations.

          (a) Proprietary Information. As the Chief Financial Officer of the Company, you will be privy
to extremely sensitive, confidential and valuable commercial information and trade secrets
belonging to the Company, the improper use and disclosure of which would greatly harm the Company.
Accordingly, as a condition of your employment, you must sign and abide by the Company’s Employee
Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit A.

          (b) Exclusive Property. You agree that all business procured by you and all Company-related
business opportunities and plans made known to you while you are employed by the Company, shall
remain the permanent and exclusive property of the Company.

          (c) No Adverse Business Activities. Throughout the term of your employment with the Company,
you agree not to, directly or indirectly, without the prior written consent of the Company, own,
manage, operate, join, control, finance or participate in the ownership, management, operation,
control or financing of, or be connected as an officer, director, executive, partner, employee,
principal, agent, representative, consultant, licensor, licensee or otherwise with, any business or
enterprise engaged in any business that is competitive with or is reasonably anticipated to be
competitive with the business of the Company (“Competitive Activity”). Notwithstanding the above,
you will not be deemed to be engaged directly or indirectly in any Competitive Activity if you
participate in any such business solely as a passive investor in up to one percent (1%) of the
equity securities of a company or partnership, the securities of which are publicly traded. During
your employment with the Company, you agree not to acquire, assume or participate in, directly or
indirectly, any position, investment or interest known to be adverse or antagonistic to the
Company, its business or prospects, financial or otherwise.

          (d) Nonsolicitation. Throughout your employment with the Company and for one (1) year
thereafter, you agree not to, without first obtaining the prior written approval of the Company,
directly or indirectly solicit, induce, persuade or entice, or attempt to do so, or otherwise
cause, or attempt to cause, any employee, independent contractor, customer or prospective customer
of the Company to terminate his, her or its employment, contracting or other business relationship
with the Company to become an employee or independent contractor to, or customer of, any other
person or entity.

     9. At-Will Employment. Your employment with Company will be “at-will.” This means that either
you or Company may terminate your employment at any time, with or without Cause or Good Reason, and
with or without advance notice.

     10. Arbitration. To ensure the rapid and economical resolution of disputes that may arise in
connection with your employment with the Company, you and the Company agree that any and all
disputes, claims, or causes of action, in law or equity, arising from or relating to the
enforcement, breach, performance, or interpretation of this Agreement, your employment with the
Company, or the termination of your employment, shall be resolved, to the fullest extent permitted
by law, by final, binding and confidential arbitration in San Jose, California by JAMS,

Initialed
: AJW

 

 

A1 Wood

Page 5

Inc. (“JAMS”) or its successor, under JAMS’ then applicable rules and procedures. You
acknowledge that by agreeing to this arbitration procedure, both you and the Company waive the
right to resolve any such dispute through a trial by jury or judge or administrative proceeding.
You will have the right to be represented by legal counsel at any arbitration proceeding. The
arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the
dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written
statement signed by the arbitrator regarding the disposition of each claim and the relief, if any,
awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and
conclusions on which the award is based. The arbitrator shall be authorized to award all relief
that you or the Company would be entitled to seek in a court of law. The Company shall pay all
JAMS arbitration fees in excess of the administrative fees that you would be required to pay if the
dispute were decided in a court of law. Nothing in this Agreement is intended to prevent either
you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending
the conclusion of any such arbitration.

     11. Miscellaneous. This Agreement is the complete and exclusive statement of all of the terms
and conditions of your employment with the Company, and supercedes and replaces any and all prior
agreements or representations with regard to the subject matter hereof, whether written or oral.
It is entered into without reliance on any promise or representation other than those expressly
contained herein, and it cannot be modified, amended or extended except in a writing signed by you
and a duly authorized member of the Board. This Agreement is intended to bind and inure to the
benefit of and be enforceable by you and the Company, and our respective successors, assigns,
heirs, executors and administrators, except that you may not assign any of your duties or rights
hereunder without the express written consent of the Company. Whenever possible, each provision of
this Agreement will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision or any other jurisdiction, but this Agreement
will be reformed, construed and enforced as if such invalid, illegal or unenforceable provisions
had never been contained herein. This Agreement and the terms of your employment with the Company
shall be governed in all aspects by the laws of the State of California.

This offer is subject to satisfactory proof of your right to work in the United States and
satisfactory completion of a Company-required background check. If you agree to the terms and
conditions set forth herein, please initial the bottom of each page and sign where indicated on the
last page. Your employment with the Company pursuant to this Agreement will begin on April 20,
2005 (the “Commencement Date”).

Initialed
: AJW

 

 

A1 Wood

Page 6

We look forward to having you join us. If you have any questions about this Agreement, please do
not hesitate to call me.

Best
regards,

Veraz Networks, Inc.

	 	 	 
	/s/
Denise Pierre
	 	 
	 

Denise Pierre

	 	 
	Vice
President, Global Human Resources
	 	 
	Veraz
Networks, Inc.
	 	 

Accepted
and agreed:

	 	 	 
	/s/
Al Wood
	 	 
	 

Al Wood

	 	 

Date:
4/18/05

Initialed :                     

 

 

EXHIBIT A

EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

 

NONDISCLOSURE AGREEMENT

     THIS AGREEMENT is made as of the date Written below between Veraz Networks, Inc., a Delaware
corporation (“Veraz”), and the individual or entity signing below (“Reviewer”).

     1. Purpose. In connection with a possible business transaction or relationship
between Veraz and Reviewer (the “Transaction”), Reviewer may receive certain Confidential
Information (as defined below) of Veraz. Veraz is willing to provide such Confidential Information
to Reviewer only subject to the terms set forth in this Agreement.

     2. Definition of Confidential Information. “Confidential Information” means any
information, technical data, trade secrets or know-how of Veraz (whether disclosed before or after
the date of this Agreement), including, but not limited to, information relating to business and
product or service plans, financial projections, patents, patent applications, computer object or
source code, research, inventions, processes, designs, drawings, engineering, marketing or finance,
which information is designated in writing to he confidential or proprietary or which information
would, under the circumstances, appear to a reasonable person to he confidential or proprietary.
Confidential Information does not include information, technical data or know-how which (i) is in
the possession of Reviewer at the time of disclosure (as shown by Reviewer’s files and records
immediately prior to the time of disclosure); (ii) becomes part of the public knowledge or
literature, not as a result of any improper inaction or action of Reviewer; (iii) is subsequently
disclosed to Reviewer by a party having the legal right to make such disclosure; or (iv) is
approved by Veraz, in writing, for release.

     3. Non-Disclosure of Confidential information. Reviewer agrees to use Confidential
Information only for the purpose of evaluating the Transaction, and not for any other purpose.
Reviewer will not disclose or permit disclosure of any Confidential Information to any third party,
other than employees of Reviewer who need access to such information in connection with the
Transaction. Reviewer agrees that it will take all reasonable measures to protect the secrecy of
the Confidential Information in order to prevent it from falling into the public domain or the
possession of persons other than those persons authorized hereunder to have any such information.
Such measures shall include the highest degree of care that Reviewer utilizes to protect its own
Confidential Information of a similar nature, which shall he no less than reasonable care. Any
materials or documents containing Confidential Information which have been or may be furnished by
Veraz to Reviewer or reproduced or developed by Reviewer based on Confidential Information will be
promptly returned to Veraz upon written request.

     4. No Rights Granted. Nothing in this Agreement is intended to grant any rights under
any patent or copyright of Veraz nor shall this Agreement grant Reviewer any rights in or to the
Confidential Information, except the limited right to use such Confidential Information in
connection with the proposed Transaction.

 

 

A1 Wood

Page 9

     5. Survival. The commitments of each party hereunder shall survive any termination of
the Transaction between the parties, and shall remain in effect until, and to the extent that,
Confidential Information shall enter the public domain through no default by the receiving party of
its obligations hereunder.

     6. Miscellaneous. Failure to enforce any provision of this Agreement by a party shall
not constitute a waiver of any term hereof by such party. This Agreement shall be governed by
California law, without reference to conflicts of laws rules. This Agreement may he executed in
two or more counterparts (which may be delivered by facsimile), each of which shall be deemed an
original and all of which together shall constitute one instrument.

     7. Remedies. Reviewer agrees that any violation or threatened violation of this
Agreement will cause irreparable injury to Veraz and that, in addition to any other available
remedies, Veraz shall be entitled to obtain injunctive relief against the breach or threatened
breach of this Agreement by Reviewer, without the necessity of proving actual damages,

     The parties have executed and delivered this Agreement as of the date below.

Date:
  4/18/05                                

	 	 	 	 	 	 	 	 	 	 	 
	Veraz Networks, Inc.	 	 	 	REVIEWER	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	/s/ Denise Pierre	 	 	 	Signature:	 	/s/ Al Wood	 	 
	 

	 

	 	 
	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Denise Pierre	 	 	 	Name:	 	Al Wood	 	 
	 

	 

	 	 
	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	vice President Human Resources	 	 	 	Title:	 	CEO

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