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Exhibit 10.6    
  

 
 

PROMISSORY NOTE
  SECURED BY DEED OF TRUST    
  

	 
	 	 

	$2,508,000	 	Irvine, California

December 11, 2001

        FOR
VALUE RECEIVED, the undersigned, MICHAEL A. MUSSALLEM ("Employee") and LINDA J. MUSSALLEM, husband and wife (collectively, the "Borrowers"), promise to pay to EDWARDS LIFESCIENCES
CORPORATION, a Delaware corporation (the "Company"), or its order, the principal amount of TWO MILLION FIVE HUNDRED EIGHT THOUSAND DOLLARS ($2,508,000), together with interest thereon, if any, as set
forth herein, loaned to Borrowers pursuant to the terms this Promissory Note Secured by Deed of Trust (the "Note"). This Note may be prepaid at any time without premium, penalty or notice to the
Company. 

        Capitalized
terms used herein shall have the meanings assigned thereto in Section 6. 

        1.    Interest.    This Note is intended to be an interest-free relocation loan within the meaning of
Treasury Regulation Section 1.7872-5T(c) and, except as otherwise provided below with respect to payment that is not made when due, this Note bears a zero rate of interest. As a
condition of receiving the loan
proceeds of this Note, Employee agrees to execute a Certificate of Borrower certifying that Employee satisfies the conditions for an interest free loan as set forth in such Treasury Regulation. 

        In
the event any amount owed by Borrowers pursuant to this Note is not paid when due, such unpaid amount shall bear interest from the due date until paid at a rate equal to the lesser of
(i) seven percent (7%), compounded annually or (ii) the maximum rate permitted by law. After such due date, all payments shall be credited first to accrued interest and then to
principal. 

        2.    Payment.    All unpaid and outstanding principal amounts, together with accrued and unpaid interest, if any,
shall be due and payable to the Company at its principal corporate offices in Irvine, California, or as otherwise as directed by the Company in writing, on or before the  earlier to occur of:

        (a)  5:00 p.m.
PST on December 10, 2006 (the "Due Date"); 

        (b)  forty-five
(45) days following the date of the Employee's termination of employment with the Company for any reason, whether voluntary or involuntary,
and whether with cause or without cause, unless such termination follows a Change in Control (in which case amounts outstanding under this Note shall be due and payable on the Due Date) or is by
reason of the death or Disability of Employee; or 

        (c)  one-hundred
twenty (120) days following the date of the Employee's termination of employment with the Company by reason of the death or Disability of
Employee; or 

        (d)  notwithstanding
the occurrence of any Change in Control, the date of any sale, conveyance, assignment, alienation or any other form of transfer, whether voluntary or
involuntary, of the Property, or any part or interest therein, except that the following transfers of the Property shall not be deemed to be within the scope of this clause (d): 

        (i)    a
transfer upon the death of Employee to Employee's surviving spouse (provided the surviving spouse is a Borrower hereunder), or a transfer upon the death of Employee's
surviving spouse to Employee; or 

        (ii)  a
transfer by one or both Borrowers into an inter-vivos trust under which one or both Borrowers are the sole beneficiaries. 

        3.    Events of Default.    In the event that any of the following occurs, then unless otherwise prohibited by law,
the Company shall have the option, without demand or notice, to declare the entire 

 

outstanding principal balance of this Note, together with any accrued and unpaid interest thereon to be immediately due and payable: 

        (a)  Borrowers
default in their performance of any obligation contained in this Note or the Deed of Trust, or any other deed of trust, security agreement or other agreement
(including any amendment, modification or extension thereof) which may hereafter be executed by Borrowers for the purpose of securing this Note, and such default is not cured within fifteen
(15) days after written notice thereof; 

        (b)  any
representation or warranty contained in the Note, the Deed of Trust, the Certificate of Borrower, or any other agreement or instrument executed in connection with
the loan evidenced by this Note proves to have been false or misleading in any material respect when made; or 

        (c)  the
Property becomes subject to any lien or other encumbrance that is senior to the Deed of Trust and which is not shown as an exception to title in the Lender's Policy
of Title Insurance issued to the Company in connection with this Note and the Deed of Trust. 

        4.    Use of Loan Proceeds.    The proceeds of the loan evidenced by this Note shall be used by Borrowers solely and
exclusively to purchase the Property, and this Note shall be secured by the Deed of Trust executed by the Borrowers in favor of the Company as Beneficiary thereunder. Said Deed of Trust shall be a
first-priority deed of trust, and the Borrowers shall do all things necessary or proper to maintain the first lien position of the Deed of Trust. 

        5.    Miscellaneous.    

        (a)  Borrowers
acknowledge and agree that this Note is not transferable by Borrowers. Borrowers further agree that the Company may transfer this Note to its successors and
assigns. 

        (b)  Borrowers
will pay to Company all sums owing under this Note without deduction, offset, or counterclaim of any kind. The relationship of Borrowers and Company under this
Note is solely that of
borrowers and lender, and the loan evidenced by this Note and secured by the Deed of Trust will in no manner make Company the partner or joint venturer of Borrowers. 

        (c)  In
no event will the amount paid or agreed to be paid to Company for the use, forbearance, or detention of the money to be advanced under this Note exceed the highest
lawful rate permissible under applicable law. If, from any circumstance, fulfillment of any provision of this Note or the Deed of Trust, at the time performance of the provision is due, is prohibited
by law, then the obligation to be fulfilled will be reduced to the maximum rate not so prohibited, and if from any circumstance Company should ever receive as interest under this Note an amount that
would exceed the highest lawful rate, the amount that would be excessive interest will be applied to the reduction of the principal of this Note and not to the payment of interest. This provision will
control every other provision of all agreements between Borrowers and Company with respect to the loan evidenced by this Note. 

        (d)  If
any attorney is engaged by Company to enforce or construe any provision of this Note or the Deed of Trust, or as a consequence of any default hereunder or under the
Deed of Trust, with or without the filing of any legal action or proceeding, then Borrowers will immediately pay to Company on demand all attorney's fees and other costs incurred by Company, together
with interest from the date of the demand at the maximum rate allowed by law. 

        (e)  No
previous waiver, failure or delay by Company in acting with respect to the terms of this Note or the Deed of Trust will constitute a waiver of any breach, default, or
failure of any condition under this Note or the Deed of Trust. A waiver of any term of this Note or the Deed of Trust must be made in writing and will be limited to the express written terms of the
waiver. If there are any inconsistencies between the terms of this Note and the terms of the Deed of Trust, the terms of this Note will prevail. 

2

 

        (f)    All
notices required or permitted in connection with this Note will be in writing, and if sent to Borrowers may be sent to the Property address. 

        (g)  Borrowers
waive presentment; demand; notice of dishonor; notice of default or delinquency; notice of acceleration; notice of protest and nonpayment; notice of costs,
expenses, or losses and interest; notice of interest on interest and late charges; and diligence in taking any action to collect any sums owing under this Note or in proceeding against any of the
rights or interests to properties securing payment of this Note. Time is of the essence with respect to every provision of this Note. This Note will be construed and enforced in accordance with
California law, except to the extent that Federal laws pre-empt state law, and all persons and entities in any manner obligated under this Note consent to the jurisdiction of any Federal
or State Court within California having proper venue and also consent to service of process by any means authorized by California or Federal law. 

        6.    Definitions.    

        (a)    Change in Control.    "Change in Control" means Change in Control as defined in the Employee's Chief Executive
Officer Change-In-Control Severance Agreement effective as of December 1, 2000, as amended from time to time. 

        (b)    Deed of Trust.    "Deed of Trust" means the deed of trust encumbering the Property and securing this Note. 

        (c)    Disability.    "Disability" means that the Employee is disabled within the meaning of the Company's
long-term disability plan as in effect at the time of such disability, or if no such long-term disability plan exists at such time, within the meaning of the Company's
long-term disability plan as in effect on the date this Note is executed. 

        (d)    Property.    "Property" means that certain real property which is encumbered by the Deed of Trust. 

* * * * * * * * * * * * *  

NOTICE TO BORROWER: THIS NOTE CONTAINS PROVISIONS FOR A "BALLOON PAYMENT." WHEN THAT PAYMENT IS DUE YOU MAY BE REQUIRED TO REFINANCE OR SELL THE PROPERTY IN ORDER TO MAKE THAT
PAYMENT. IF REFINANCING WOULD BE REQUIRED AS A RESULT OF THE "BALLOON PAYMENT" COMING DUE, SUCH REFINANCING MIGHT BE DIFFICULT OR IMPOSSIBLE IN THE CONVENTIONAL MORTGAGE MARKETPLACE. BY INITIALING
BELOW, YOU ACKNOWLEDGE THAT THERE WILL BE A "BALLOON PAYMENT" DUE UNDER THE TERMS OF THIS NOTE, AND THAT A SALE OR REFINANCING OF THE PROPERTY MAY BE NECESSARY IN ORDER TO MAKE SUCH PAYMENT. THIS NOTE
IS SUBJECT TO SECTION 29241 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES THAT THE HOLDER OF THIS NOTE SHALL GIVE WRITTEN NOTICE TO THE TRUSTOR, OR HIS SUCCESSOR IN INTEREST, OF PRESCRIBED INFORMATION
AT LEAST 90 AND NOT MORE THAN 150 DAYS BEFORE ANY BALLOON PAYMENT IS DUE.

	
 MAM	 	
 LJM

3

 
* * * * * * * * * * * * *  

        IN WITNESS WHEREOF, the Borrowers have executed this Note as of the date first above written. 

	 	 	BORROWERS
	

 	
 	

/s/  MICHAEL A. MUSSALLEM      
 Michael A. Mussallem
	

 	
 	

/s/  LINDA J. MUSSALLEM      
 Linda J. Mussallem

4

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Exhibit 10.6

PROMISSORY NOTE SECURED BY DEED OF TRUSTQuickLinks
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Exhibit 10.1  

 
 

CORPORATE SERVICES AGREEMENT    
  

        THIS
CORPORATE SERVICES AGREEMENT (this "Agreement"), dated as of January 31, 2002, between Comverse Technology Inc., a New York corporation ("Comverse"), and Comverse
Infosys, Inc., a Delaware corporation (together with its subsidiaries, the "Company"). 

        WHEREAS,
the Company is a subsidiary of Comverse; and 

        WHEREAS,
Comverse, its subsidiaries and affiliates (hereinafter collectively referred to as "CTI") have been providing to the Company certain services described herein; and 

        WHEREAS,
the Company desires to continue to receive such services from CTI and CTI is willing to provide such services to the Company pursuant to the terms and conditions specified
herein. 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows: 

        1.    Services. During the period commencing on the date hereof and ending upon termination of this Agreement (as provided in
Section 3 below), CTI shall provide to the Company the following services (the "Services"): 

        1.1    Routine Legal Services. CTI shall provide routine legal services to the Company, including without limitation,
consultations on strategies and governmental compliance, attorney selection, reviewing legal bills and participating in settlement discussions. 

        1.2    Administration of Employee Benefit Plans. CTI shall assist the Company in administering the Company's employee benefit
plans, including without limitation, administering any management incentive plans and employee profit sharing plans, monitoring and processing pension and 401(k) plans and employee benefit enrollment,
making required employee benefit related IRS filings, handling other related compliance tasks and general benefits consulting. 

        1.3    Insurance. CTI shall cause to be maintained in effect policies of insurance providing coverage to the Company and its
subsidiaries (or, in the case of directors' and officers' liability insurance, covering the Company's directors and officers and those of its subsidiaries) for general liability, errors and omissions
liability, directors' and officers' liability and such other risks and/or liabilities that are from time to time insured by CTI for the benefit of CTI and its subsidiaries, in each case with at least
the same coverage with respect to amounts, limits and terms as in effect for CTI. 

        1.4    Consulting on Public Relations. CTI shall provide consulting services with respect to the Company's public relations,
including without limitation, 

 

reviewing
accounting pronouncements and advising the Company on proper accounting and reportable amounts related to pronouncements (such as FASB 106 and FASB 109). 

        CTI
and the Company agree that CTI shall furnish the Services using commercially reasonable efforts consistent with the needs of the Company and the availability of CTI's officers and
other employees. CTI in its sole discretion will determine which personnel shall perform the Services. 

        2.    Fees and Payment. At the end of each fiscal quarter, the Company shall pay CTI the quarterly fee set forth on
Schedule 1 hereto for such fiscal quarter, in consideration for all Services provided by CTI to the Company under this Agreement during such fiscal quarter. Not more than once every six
(6) month period beginning February 1, 2003, CTI and the Company shall meet to discuss and negotiate in good
faith any adjustments to the quarterly fees set forth on Schedule 1 hereto that is requested by (i) any party, if the parties mutually agree to modify, amend, delete or add to the scope
of Services being provided or (ii) CTI, in the event that there is a material change in the cost of providing the Services. In addition, the Company shall reimburse CTI for any
out-of-pocket expenses incurred by CTI at the request of the Company in connection with providing Services hereunder (other than compensation to CTI's officers and employees
engaged in rendering such Services to the Company and other than any premiums paid by CTI or its affiliates under insurance policies referred to in Section 1.3 above). After the end of each
fiscal quarter, CTI shall deliver to the Company an invoice for the quarterly fee payable with respect to Services provided by CTI under this Agreement, plus all expenses in respect of which CTI seeks
reimbursement hereunder. The Company shall pay in full the amount due as stated on each CTI invoice within thirty days of the date of such invoice. 

        3.    Term. The term of this Agreement shall commence as of and from February 1, 2002, and shall continue until
January 31, 2005 (the "Initial Term"); provided, however, that on January 31, 2005, and on each anniversary of such day thereafter, this Agreement shall be automatically extended for one
(1) additional twelve-month period (a "Renewal Term"), unless either party gives the other party written notice of its election to terminate this Agreement at least thirty (30) days
prior to the end of the Initial Term or the end of any Renewal Term. Unless the parties agree otherwise, the quarterly fee payable by the Company at the end of each fiscal quarter during any Renewal
Term shall be equal to the product of (i) one quarter (1/4) multiplied by (ii) the aggregate amount of fees (but not expenses) paid by the Company during the twelve-month
period immediately preceding such Renewal Term. 

        4.    Post-Termination Obligation.

        4.1    Company's Obligations. The termination of this Agreement shall not terminate the Company's obligation to provide to CTI
all information required by CTI if and when necessary in order to present CTI's financial and accounting information in accordance with generally accepted accounting principles. 

2

 

        4.2    CTI's Obligation. CTI agrees to (i) furnish to the Company such further information, (ii) execute and
deliver to the Company such other documents, and (iii) do such other acts and things, all as the Company may reasonably request in order to permit the Company to file all state income tax
returns required by law to be filed by the Company. 

        5.    Confidentiality. CTI shall keep confidential and shall not disclose to others any information that is confidential or
proprietary to the Company or that the Company has labeled in writing as confidential or proprietary to the same extent as it protects its own confidential information and trade secrets, except as
required by law or court order. CTI may disclose to third parties any such information provided that (i) the Company consents to such disclosure, and (ii) such third party agrees in
writing to be bound by the provisions of this Section 5 with respect to such information. 

        6.    Compliance with Laws. Each of the Company and CTI shall comply in all material respects with any and all applicable
statutes, rules, regulations, orders or restrictions of any domestic or foreign government, or instrumentality or agency thereof, in respect of the conduct of its obligations under this Agreement. 

        7.    Default and Remedies.

        7.1    Event of Default. A party shall be in default hereunder if (i) such party commits a material breach of any term of
this Agreement and such breach continues uncured for 30 days following receipt of written notice thereof from the other party describing such default in reasonable detail, (ii) such
party makes a general assignment for the benefit of its creditors, (iii) there is a filing seeking an order for relief in respect of such party in an involuntary case under any applicable
bankruptcy, insolvency or other similar law and such case remains undismissed for 30 days or more, (iv) a trustee or receiver is appointed for such party or its assets or any substantial
part thereof, or (v) such party files a voluntary petition under any bankruptcy, insolvency or similar law of the relief of debtors. 

        7.2    Remedies.

        (a)    If
there is any default by the Company hereunder, CTI may exercise any or all of the following remedies: (a) declare immediately due and payable all sums for
which the Company is liable under this Agreement (including the entire quarterly fee payable in respect of the fiscal quarter in which such default occurs); (b) suspend this Agreement and
decline to continue to perform any of its obligations hereunder; and/or (c) terminate this Agreement. 

        (b)    If
there is any default by CTI hereunder, the Company may terminate this Agreement and recover any fees paid in advance for Services not performed. 

        (c)    In
addition to the remedies set forth in clauses (a) and (b) above, a non-defaulting party shall have all other remedies available at law or
equity, subject to Section 7.3 below. 

3

 

        7.3    Limitation on Remedies. NOTWITHSTANDING THE FORUM IN WHICH ANY CLAIM OR ACTION MAY BE BROUGHT OR ASSERTED OR THE NATURE
OF ANY SUCH CLAIM OR ACTION, IN NO EVENT SHALL ANY DIRECTOR, OFFICER, EMPLOYEE OR AGENT OF CTI
BE PERSONALLY LIABLE TO THE COMPANY IN RESPECT OF ANY SERVICES RENDERED HEREUNDER BY SUCH PERSON EXCEPT IN THE CASE OF FRAUD. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN NO EVENT SHALL CTI,
ITS SUBSIDIARIES AND ITS AFFILIATES, EXCEPT IN THE CASE OF FRAUD, BE LIABLE TO THE COMPANY IN CONNECTION WITH OR ARISING OUT OF CTI PROVIDING OR FAILING TO PROVIDE ANY OF THE SERVICES SPECIFIED IN
THIS AGREEMENT IN AN AMOUNT WHICH SHALL EXCEED THE LESSER OF (A) THE AMOUNT OF THE CLAIM, OR (B) THE QUARTERLY FEE PAID OR PAYABLE BY THE COMPANY IN RESPECT OF THE FISCAL QUARTER IN
WHICH THE SERVICES GIVING RISE TO SUCH CLAIM OR ACTION WERE RENDERED OR REQUIRED TO BE RENDERED. 

        The
parties agree that this provision limiting remedies and liquidating damages is reasonable under the circumstances and the Company acknowledges that CTI, its subsidiaries and its
affiliates (including directors, officers, employees and agents) shall have no other financial liability to the Company whatsoever. 

        8.    Indemnification. The Company shall indemnify, defend and hold harmless CTI and its officers, directors, employees or
agents from and against any and all liabilities, claims, damages, losses and expenses (including, but not limited to, court costs and reasonable attorneys' fees) of any kind or nature, related to,
arising out of or in connection with (a) the Company's failure to fulfill its obligations hereunder or (b) the performance by CTI of Services hereunder, except to the extent that any
such liability, claim, damage, loss or expense is found by a court of competent jurisdiction in a judgment which has become final in that it is no longer subject to appeal or review to have resulted
primarily from CTI's willful misconduct, bad faith or gross negligence. 

        9.    General Provisions.

        9.1    Notices. All communications to either party hereunder shall be in writing and shall be delivered in person or sent by
facsimile, telegram, telex, by registered or certified mail (postage prepaid, return receipt requested) or by reputable overnight courier to the respective parties at the following addresses (or at
such other address for a party as shall be specified in a notice given in accordance with this Section 9.1): 

	(i)
	If
to CTI, to: 

Comverse
Technology, Inc.

170 Crossways Park Drive

Woodbury, New York 11797 

Facsimile: (516) 677-7355

Attn: Senior Counsel 

4

 

	(ii)
	If
to the Company, to: 

Comverse
Infosys, Inc.

234 Crossways Park Drive

Woodbury, New York 11797

Facsimile: (516) 677-7399

Attn: President and Chief Executive Officer 

        9.2    Force Majeure. A party shall not be deemed to have breached this Agreement to the extent that performance of its
obligations or attempts to cure any breach are made impossible or impracticable due to any act of God, fire, natural disaster, act of terror, act of government, shortage of materials or supplies after
the date hereof, labor disputes or any other cause beyond the reasonable control of such party (a "Force Majeure"). The party whose performance is delayed or prevented shall promptly notify the other
party of the Force Majeure cause of such prevention or delay. 

        9.3    Access. The Company shall make available on a timely basis to CTI all information reasonably requested by CTI to enable
it to provide the Services. The Company shall give CTI reasonable access, during regular business hours and at such other times as are reasonably required, to its premises for the purposes of
providing the Services. 

        9.4    Books and Records. Upon the termination of Services with respect to which CTI holds books, records or files, including,
but not limited to, current and archived copies of computer files, owned by the Company and used by CTI in connection with the provision of a Service to the Company, CTI will return all of such books,
records or files as soon as reasonably practicable. In the event CTI needs access to such books, records or files for legal or tax reasons, the Company shall cooperate with CTI and make such books,
records or files available to CTI. 

        9.5    Independent Contractors. The parties shall operate as, and have the status of, independent contractors and neither party
shall act as or be a partner, co-venturer or employee of the other party. Unless specifically authorized to do so in writing, neither party shall have any right or authority to assume or
create any obligations or to make any representations or warranties on behalf of the other party, whether express or implied, or to bind the other party in any respect whatsoever. 

        9.6    Amendment and Waiver. No supplement, modification, waiver or amendment of this Agreement or any provision hereof shall be
binding unless executed in writing and signed by the party to be charged. 

        9.7    Assignment. Neither CTI, on the one hand, nor the Company, on the other, shall be entitled to assign its rights or
delegate its obligations under this Agreement to any third party without the prior written consent of the other party. Any attempted or purported assignment or delegation without such required consent
shall be void. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and permitted assigns. 

5

 

        9.8    Governing Law. This Agreement shall be governed by the law of the State of New York. 

        9.9    Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid,
illegal or otherwise unenforceable, then such provision shall, to the extent permitted by the court, not be voided but shall instead be construed to give effect to its intent to the maximum extent
permissible under applicable law and the remainder of this Agreement shall remain in full force and effect according to its terms. 

        9.10    Sections and Headings. The sections and headings contained herein are for the convenience of reference only and are not
intended to define, limit, expand or describe the scope or intent of any clause or provision of this Agreement. 

        9.11    Entire Agreement. This Agreement, together with all exhibits hereto, constitutes the entire agreement and understanding
of the parties relating to the subject matter hereof and supersedes all prior negotiations and understandings among the parties, both oral and written, regarding such subject matter. 

        9.12    Counterparts. This Agreement may be signed in counterparts and all signed copies of this Agreement shall together
constitute one original of this Agreement. 

        9.13    No Third Party Beneficiaries. Except as provided in Section 8, nothing contained in this Agreement, express or
implied, is intended to or shall confer upon anyone other than the parties hereto (and their successors and permitted assigns) any right, benefit or remedy of any nature whatsoever under or because of
this Agreement except that Services to be provided by CTI hereunder shall also be provided, as directed by the Company, to any wholly-owned subsidiary of the Company, which shall be entitled to the
benefit thereof. 

[SIGNATURE
PAGE FOLLOWS] 

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        IN
WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement effective as of the day and year first written above. 

	 	 	COMVERSE TECHNOLOGY, INC.
	

 	
 	

By:	
 	

/s/  DAVID KREINBERG      
 David Kreinberg

Title: Chief Financial Officer
	

 	
 	

COMVERSE INFOSYS, INC.
	

 	
 	

By:	
 	

/s/  DAN BODNER      
 Dan Bodner

Title: President and Chief Executive Officer

7

 
 
 

Schedule 1    

 
 

QUARTERLY FEES FOR EACH FISCAL YEAR    
  

	Fiscal Year
 
	 	Quarterly Fee

	February 1, 2002, to January 31, 2003	 	$	131,250.00
	February 1, 2003, to January 31, 2004	 	$	143,750.00
	February 1, 2004, to January 31, 2005	 	$	156,250.00

8

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CORPORATE SERVICES AGREEMENT

Schedule 1

QUARTERLY FEES FOR EACH FISCAL YEAR

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