Document:

Exhibit 10.2

 

SECOND AMENDMENT TO LICENSE AGREEMENT

 

This Second Amendment to License Agreement (the “Amendment”) is
effective and entered into as of May 15, 2008 by and between GE Healthcare
AS, a Norwegian corporation (“GEHC”), and Acusphere Inc., a Delaware
corporation (“ACUS”) (GEHC and ACUS collectively are the “Parties”).

 

WHEREAS, the Parties are parties to that certain License
Agreement dated as of June 1, 2006, as amended pursuant to a First
Amendment to License Agreement dated May 11, 2007 (as so amended, the “Agreement”)
pursuant to which ACUS has licensed, on a non-exclusive basis, certain of GEHC’s
patents relating to the compositions, methods of preparing, and methods of use
of ultrasound contrast agents; and

 

WHEREAS, the Parties desire to amend the license fees and
payment provisions under Section 4.1 of the Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the
covenants, acknowledgements and representations contained in this Amendment,
the Parties hereby agree as follows:

 

ARTICLE I.  DEFINITIONS

 

1.1           Definitions. All
capitalized terms used and not defined herein shall have the meanings ascribed
to them under the Agreement.

 

ARTICLE
II.  AMENDMENT TO LICENSE FEES AND
PAYMENT

 

2.1           Amendment.  Section 4.1 of the Agreement is hereby
amended in its entirety to read as follows:

 

4.1.          In
consideration of the licenses and release granted in Section 3, ACUS shall
make the following payments to GEHC:

 

4.1.1.       An upfront license fee of
$12,000,000 paid as follows:

 

a)     $5,000,000 on or before June 6,
2006.

 

b)    $1,500,000 on June 1,
2007.

 

c)     $5,500,000 due on June 1,
2007 and payable in two (2) installments commencing on June 1, 2008,
subject only to paragraph 4.1.1(d) below. The first installment of
$916,666.66 is due and payable on June 1, 2008and the remaining
installment is due and payable on October 1, 2009 in an amount consisting
of (i) the amount of $4,583,333.34 in principal plus (ii) interest
accruing on such principal amount from July 1, 2008 at the rate of 6% per
annum until paid in full, subject only to paragraph 4.1.1(d) below.  For the avoidance of 

 

 

doubt,
Acusphere shall in no way be considered to be in default of this Agreement for
failure to pay the entire $5,500,000 on or before June 1, 2007.

 

d)    Upon receipt of regulatory
approval by the U.S. Food and Drug Administration to market AI-700 in the
United States, or the approval of a Marketing Authorization Application to
market AI-700 in Europe, prior to September 1, 2010, any then remaining
balance of the $4,583,333.34 (plus interest accrued to such date) payable under
paragraph 4.1.1(c) above shall be immediately due and payable in full.

 

e)     All fees under this Section 4.1.1
are non-contingent and non-returnable. 
All such amounts may be pre-paid at any time without penalty.

 

ARTICLE III. MISCELLANEOUS

 

3.1           Effect on Agreement.  This Amendment amends the Agreement.  The Agreement remains in full force and
effect and remains unchanged except as expressly amended hereby.  If there is any inconsistency between the
terms of this Amendment and the terms of the Agreement, the terms of this
Amendment shall control.

 

3.2           Entire Agreement.  The Agreement, as amended by this Amendment,
sets forth all the licenses, covenants, promises, agreements, warranties,
representations, conditions, and understandings between the Parties hereto and
supersede all prior agreements and understandings between the Parties relating
to the subject matter hereof.  The
Agreement, as amended by this Amendment, including, without limitation, the
Exhibits attached thereto, is intended to define the full extent of the legally
enforceable undertakings of the Parties hereto.

 

IN WITNESS WHEREOF, the undersigned Parties have duly
executed and delivered this Amendment as of the date first written above.

 

	
  GE
  Healthcare AS.  

  	
  Acusphere, Inc.  

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  John Chiminski 

  	
   

  	
  By:
  

  	
  /s/
  Sherri C. Oberg 

  
	
  Name:
  

  	
  John
  Chiminski 

  	
   

  	
  Name:

  	
  Sherri
  C. Oberg 

  
	
  Title:

  	
  Chief
  Executive Officer 

  	
   

  	
  Title:
  

  	
  President
  and Chief Executive Officer 

  
	
  Date:
  

  	
  May 15,
  2008

  	
   

  	
  Date:
  

  	
  May 15,
  2008

  
										

 

2Exhibit 10.1

 

Sonus Networks, Inc.

7 Technology Park Drive, Westford, MA 01886

May 13, 2008

 

Mr. Richard N.
Nottenburg

 

Dear Richard:

 

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

 

1.             Position. 
The Company agrees to employ you as its President and Chief Executive
Officer, with the powers and duties consistent with such position.  You shall report to the Board of Directors of
the Company.  You also will be appointed
as a member of the Board of Directors, subject to re-election at the 2009
Annual Shareholders Meeting to a three-year term.

 

As a
full-time employee of the Company, you will be expected to devote all of your
business time and energies to the business and affairs of the Company, however,
subject to board approval, you may (i) serve as the member of the Board of
Directors of up to two other companies provided that neither competes with the
Company and such service does not substantially interfere with your ability to
serve as the Company’s President and Chief Executive Officer, and (ii) participate
in charitable activities and serve as a member of the Board of Directors of any
charitable entities.

 

2.             Commencement Date/Nature of Relationship.  Your employment shall commence no later than June 14,
2008 (the “Commencement Date”). Subject to the severance and other provisions
of paragraph 8 below, your employment shall not be for any specified period of
time.  Employment at Sonus Networks, Inc.
is “at will” and either you or the Company may terminate the employment
relationship at any time and for any reason or no reason, subject to the
provisions of paragraph 8 below.

 

3.             Compensation. During your employment with the
Company, you shall receive the following compensation:

 

(a)                                  Base Compensation. 
Your initial base salary (“Base Salary”) will be at the annualized rate
of $500,000 paid twice monthly in accordance with the Company’s normal payroll
practices.  The Company will review your Base
Salary on an annual basis and such base salary may be adjusted at the
discretion of the Compensation Committee of the Board of Directors; provided
that you may elect to terminate your employment for Good Reason under Section 8(b)(ii)(C) below
if the Compensation Committee reduces your Base Salary.

 

(b)                                 Target Bonus.  You will be eligible to participate in the
Officer Bonus Program during each year you are employed by the Company with a
target bonus of at least 80% of your then-current annual base salary (“Target
Bonus”).  For 2008, your Target Bonus
will be pro-rated for the number of days in 2008 that you are employed with the
Company and your pro rata Target Bonus for 2008 is guaranteed and payable by March 15,
2009. Specific objectives for your Target Bonus for 2008 will be agreed upon
with the Compensation Committee of the Board of Directors within the first
sixty (60) days of your employment for 2008 and on or about January 1 of
each subsequent calendar year with respect to an award for such year. Your
annual bonus shall be paid as soon as 

 

 

 

 

practicable
following the Company’s public disclosure of its financial results for the
applicable bonus year.

 

	
   

  	
  (c)

  	
  Stock Option Grants. You will be granted non-qualified options to purchase
  Sonus common stock as follows:

  

 

	
   

  	
  (i)

  	
  You will be granted an option to purchase 500,000 shares of
  common stock under the Company’s 2007 Stock Plan, subject to the terms of the
  Plan and the terms of the Company’s stock option agreement which shall
  reflect the terms of this Agreement. The grant date will be on the first 15th
  day of the month in or following your Commencement Date or the first business
  day thereafter if that day is not a business day. The per share exercise
  price will be the per share closing price of the Company’s common stock on
  the grant date (“2008 Option Exercise Price”). Subject to the provisions of
  this Agreement, the option shall vest and become exercisable as follows:
  (A) 25% of the shares (125,000 shares) shall vest on the first
  anniversary of the Commencement Date and, (B) the remaining 75% of the
  shares (375,000 shares) shall vest in equal monthly increments of 2.0833% of
  the shares (10,417 shares per month) thereafter through the fourth
  anniversary of the Commencement Date;

  	 

	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  On January 15, 2009, you will be granted an option to
  purchase 500,000 shares of common stock under the Company’s 2007 Stock Plan,
  subject to your continued employment on January 15, 2009, the terms of
  the Plan and the terms of the Company’s stock option agreement which shall
  reflect the terms in this Agreement. The per share exercise price will be the
  per share closing price of the Company’s common stock on the date of grant
  (“2009 Option Exercise Price”). Subject to the provisions of this Agreement,
  the option shall vest and become exercisable as follows: (A) 25% of the
  shares (125,000 shares) on the first anniversary of the Commencement Date,
  (B) the remaining 75% of the shares (375,000 shares) shall vest in equal
  monthly increments of 2.0833% of the shares (10,417 shares per month)
  thereafter through the fourth anniversary of the Commencement Date. The
  obligation to grant this option, or an equivalent value of an option for
  stock in the Acquirer, shall survive an Acquisition (as defined below) and be
  binding upon an Acquirer.

  	 

					

 

	
   

  	
  (d)

  	
  Restricted
  Stock Grants. You will be granted Restricted Shares of the
  Company’s common stock, $0.001 par value per share (“Restricted Shares”) as
  follows:

  

 

	
   

  	
  (i)

  	
  You will be
  granted 500,000 shares of the Company’s common stock under the Company’s 2007
  Stock Plan, subject to the terms of the Plan and the Company’s restricted
  stock agreement, which shall reflect the terms of this Agreement. The grant
  date will be on the first 15th day of the month in or following
  your Commencement Date or the first business day thereafter if that day is
  not a business day. The Restricted Shares shall vest as follows: (A) 25%
  of the Restricted Shares (125,000 Restricted Shares) shall vest on the first
  anniversary of the Commencement Date and, (B) 75% of the Restricted
  Shares (375,000 Restricted Shares) shall vest in six equal increments of
  62,500 Restricted Shares semi-annually thereafter through the fourth
  anniversary of the Commencement Date;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  On
  January 15, 2009, you will be granted 500,000 shares of the Company’s
  common stock under the Company’s 2007 Stock Plan, subject to your continued
  employment on January 15, 2009, the terms of the Plan and the Company’s
  restricted stock agreement which shall reflect the terms of this Agreement.
  The grant date will be January 15, 2009. The Restricted Shares shall
  vest as follows: (A) 25% of the Restricted Shares (125,000 Restricted
  Shares) shall vest on the

  

 

 

 

 

	
   

  	
   

  	
  first
  anniversary of the Commencement Date and, (B) 75% of the Restricted
  Shares (375,000 Restricted Shares) shall vest in six equal increments of
  62,500 Restricted Shares semi-annually thereafter through the fourth
  anniversary of the Commencement Date. The obligation to grant these shares,
  or an equivalent value of shares in the Acquirer, shall survive an
  Acquisition (as defined below) and be binding upon an Acquirer; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  You may elect
  under Section 83(b) of the Internal Revenue Code of 1986, as
  amended, to be taxed at the time the Shares are acquired on the grant date
  (“Section 83(b) Election”). A Section 83(b) Election must
  be filed with the Internal Revenue Service within thirty (30) days of the
  grant date. If you do not make a Section 83(b) Election, then you
  will be obligated to pay to the Company the amount of any federal, state,
  local or other taxes of any kind required by law to be withheld with respect
  to the vesting of the shares. You shall satisfy such tax withholding
  obligations by delivery to the Company, on each date on which shares vest,
  such number of shares that vest on such date as have a fair market value
  (calculated using the last reported sale price of the common stock of the
  Company on the NASDAQ Global Select Market on the trading date immediately
  prior to such vesting date) equal to the amount of the Company’s withholding
  obligation; provided, however, that the total tax withholding cannot exceed
  the Company’s minimum statutory withholding obligations (based on minimum
  statutory withholding rates for federal and state tax purposes, including
  payroll taxes, that are applicable to such supplemental taxable income). Such
  delivery of Shares to the Company shall be deemed to happen automatically,
  without any action required on your part, and the Company is hereby
  authorized to take such actions as are necessary to effect such delivery of
  shares to the Company.

  

 

	
   

  	
  (e)

  	
  Performance
  Stock Grants. In addition to the foregoing equity grants
  and other compensation, you will be entitled to the following additional
  equity compensation:

  

 

	
   

  	
  (i)

  	
  First
  Performance Grant. A grant of 250,000 shares of common
  stock upon the Company’s achieving, during your employment, certain
  performance metrics between January 1, 2010 and December 31, 2012
  as agreed by the parties and approved by the Compensation Committee of the
  Board of Directors. The 250,000 shares shall be granted within thirty (30)
  days of the Company’s reporting of its financial results for which the
  performance metrics were achieved and shall be fully vested on the date of
  grant. This obligation shall survive any Acquisition and be binding upon and
  inure to the benefit of any third party to such Acquisition.

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  Second
  Performance Grant. An additional grant of 250,000 shares of
  common stock upon the Company’s achieving, during your employment, certain
  incremental performance metrics between January 1, 2010 and
  December 31, 2012 as agreed by the parties and approved by the
  Compensation Committee of the Board of Directors. The 250,000 shares shall be
  granted within thirty (30) days of the Company’s reporting of its financial
  results for which the performance metrics were achieved and shall be fully
  vested on the date of grant. This obligation shall survive any Acquisition
  and be binding upon and inure to the benefit of any third party to such
  Acquisition.

  

 

	
   

  	
  (f)

  

  

  	
  Acquisition.
  Each of the option and restricted stock agreements shall contain a provision
  whereby the Company agrees, and the Company does hereby agree that, in the
  event of an Acquisition, (i) 100% of all unvested options granted to you
  hereunder at any time to purchase the Company’s common stock shall accelerate
  and all such options shall immediately become vested and exercisable for the
  shorter of five (5) years from the

  

 

 

 

 

	
   

  	
   

  	
  Acquisition or
  the original remaining life of the option(s), and (ii) 100% of all
  Restricted Shares granted to you hereunder at any time shall
  (A) accelerate; and (B) become fully vested; and (C) any and
  all restrictions on such Restricted Shares shall be terminated and any and
  all legends shall be removed.

  

 

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

 

5.             Benefits.  During your employment with the Company, you
shall be entitled to the following benefits:

 

	
   

  	
  (a)

  	
   

  	
  The Company shall
  reimburse you for your relocation costs incurred within 12 months of your
  Commencement Date, including moving expenses, temporary living and travel
  expenses and any related expenses up to $25,000. You agree to submit receipts
  supporting all of your relocation expenses;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
   

  	
  You shall be entitled
  to four (4) weeks of vacation per year ratable for 2008 based on your
  Commencement Date. Unused vacation may be carried over each year during your
  employment or paid to you upon termination consistent with Company policy and
  limitations;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
   

  	
  You will be eligible to
  participate as an employee of the Company in all benefit plans and fringe
  benefits and perquisites generally provided employees of the Company in
  accordance with Company policy, currently including group health, life and
  dental insurance, 401K program and equity incentive plans. The Company
  retains the right to change, add or cease any particular benefit for its
  employees; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
   

  	
  The Company shall
  reimburse you for all travel, business development, meals, entertainment and
  other expenses incurred by you in connection with the performance of your
  duties and obligations on behalf of the Company. You shall comply with such
  limitations and reporting requirements with respect to expenses as may be
  established by the Company from time to time and shall promptly provide all
  appropriate and requested documentation in connection with such expenses.

  

 

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

 

7.             Indemnity. 
As an executive of the Company, you will enter into an Indemnity
Agreement with the Company.  Two copies
of this agreement are sent with this offer letter.  Both copies must be signed and returned to
the Company upon your employment.

 

8.             Termination and Eligibility for Severance.  
You shall be eligible to receive the termination and severance benefits as set
forth in this paragraph 8. You shall not be eligible to receive the severance
payments and benefits described in this Section in the event that your
employment is terminated by the Company for Cause (as defined below) or you
resign from employment other than for Good Reason (as defined below).

 

	
   

  	
  (a)

  

  	
   

  	
  In the event the
  Company terminates your employment for any reason other than Cause (as
  defined below) or your employment terminates due to your death or disability
  or you terminate your employment for Good Reason (as defined below), and
  subject to your full

  

 

 

 

 

execution without revocation
of a comprehensive severance agreement and release of claims against the
Company in a form and scope acceptable to the Company, you (or your estate or
your successors and assigns, as the case may be) will be eligible to receive
the following severance and related post-termination benefits:

 

(i)                                     a lump sum payment equal to one and one
half (1.5) times your then annual base salary payable at the time of
termination;

 

(ii)                                  One and one half (1.5) times your then
Target Bonus payable in a lump sum at the time of termination, unless the
termination follows an Acquisition in which case you will receive two and a
half (2.5) times your then Target Bonus;

 

(iii)                               health benefits continuation at the company’s expense
for the 18 month period following the termination of your employment;

 

(iv)                              any allowable unreimbursed expenses and
any accrued but unused vacation pay;

 

(v)                                 any stock options granted to you by the
Company that are unvested as of the termination date and would vest over the
twenty four (24) months following your termination will accelerate and
immediately vest upon termination in accordance with the terms of the
applicable stock option agreements; provided that, if your termination under
this Section 8(a) occurs prior to January 15, 2009, then any unvested
options at that time will fully accelerate and immediately vest.  Your stock options, upon vesting, will remain
outstanding and exercisable for the shorter of five (5) years from your
separation date or the original remaining life of the option(s); and

 

(vi)                              any Restricted Shares granted to you by
the Company that are unvested as of the termination date will accelerate and
immediately vest upon termination in accordance with the terms of the
applicable Restricted Stock agreements, 
and any and all restrictions on such Restricted Shares shall be
terminated and any and all legends shall be removed so that the shares be and
are freely marketable.

 

(b)           Definitions

 

(i)                                     An “Acquisition” as
used in this Agreement shall mean any of the following: (A) any “person,”
as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) (other than the Company
or its Affiliates), is or becomes the “beneficial owner” (as defined in Rule 1
3d-3 under the Exchange Act), directly or indirectly, of securities of the
Company (not including in the securities beneficially owned by such person any
securities acquired directly from the Company or you) representing fifty
percent (50%) or more of the combined voting power of the Company’s then
outstanding securities; or (B) in the event that the individuals who at
the beginning of the Term constitute the Board of Directors, and any new
director whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least a majority of the
Board then still in office who either were members of the Board at the
beginning of the Term or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a majority
thereof; or (C) the consummation of a merger or consolidation of the
Company with or the sale of the Company to any other entity and, in connection
with such merger, consolidation or sale; individuals who 

 

 

 

 

constitute the
Board immediately prior to the time any agreement to effect such merger or
consolidation is entered into fail for any reason to constitute at least a
majority of the board of directors of the surviving or acquiring corporation
following the consummation of such merger, consolidation or sale; (D) the
stockholders of the Company approve a plan of complete liquidation of the
Company; (E) the consummation of the sale or disposition by the Company of
all or substantially all of the Company’s assets to an entity not controlled by
the Company.

 

(ii)                                  “Good Reason”
means (A)  a material breach of this Agreement by the Company, which
breach is not cured by the Company within fifteen (15) days following written
notice thereof from you; provided, however, that the Company may only utilize
its cure right two times hereunder; (B) the relocation of the Company’s
headquarters such that the distance from your residence to the Company’s
headquarters is increased by more than forty (40) miles from the Company’s
current headquarters in Westford, Massachusetts; (C) a reduction in your
annual Base Salary set forth above; (D) the assignment to you of a lower
position in the organization in terms of your title, responsibility, authority
or status unless agreed to in writing by you; 
or (E) your ceasing to be a member of the Company’s Board of
Directors for any reason other than your death, 
disability, termination for Cause hereunder, resignation as an employee
or director, refusal to stand for re-election to the Board of Directors or the
failure to be elected by the stockholders after being nominated and recommended
by the Board of Directors.

 

(iii)                                     “Cause” means (A) gross
negligence or willful misconduct by you that has a material adverse effect on
the Company and (1) continues after the Company has provided you with
thirty (30) days prior written notice of the gross negligence or willful
misconduct, or (2) cannot be remedied or cured, (B)  your conviction
of a non-vehicular misdemeanor or felony relating to your duties while employed
at the Company, or (C) a willful and material violation of any written
agreement between you and the Company, including, without limitation, this
Agreement and the Noncompetition and Confidentiality Agreement that you fail to
remedy within thirty (30) days following written notice from the Company.

 

(c)                                  Tax Implications of Termination. Subject to this Section 8(d), any
payments or benefits under Section 8 shall begin only upon the date of a
“separation from service” as defined under Section 409A which occurs or after
the date of termination under this Section 8. The following rules shall
apply with respect to distribution of the payments and benefits, if any, to be
provided to you under Section 8:

 

(i)                                     It is intended that each installment of
the payments and benefits provided under Section 8 shall be treated as a
separate “payment” for purposes of Section 409A of the U.S. Internal
Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section 409A”).  Neither the Company nor you shall have the
right to accelerate or defer the delivery of any such payments or benefits
except to the extent specifically permitted or required by Section 409A;

 

(ii)                                  If, as of the date your “separation from
service” with the Company, you are not a “specified employee” (each within the
meaning of Section 409A), then each installment of the payments and
benefits shall be made on the dates and terms set forth in Section 8; and

 

(iii)                               If, as of the date of your “separation
from service” with the Company, you are a “specified employee” (each, for
purposes of this Agreement, within the meaning of Section 409A), then:

 

 

 

 

(A) Each installment of the payments and benefits
due under Section 8 that, in accordance with the dates and terms set forth
herein, will in all circumstances, regardless of when the separation from
service occurs, be paid within the Short-Term Deferral Period (as hereinafter
defined) shall be treated as a short-term deferral within the meaning of
Treasury Regulation Section 1.409A-1(b)(4) to the maximum extent permissible
under Section 409A.  For purposes of
this Agreement, the “Short-Term Deferral Period” means the period ending on the
later of the 15th day of the third month following the end of the tax year in
which your separation from service occurs and the 15th day of the third month
following the end of the Company’s tax year in which your separation from
service occurs; and

 

(B) Each installment of the payments and benefits
due under Section 8 that is not paid within the Short-Term Deferral Period
and that would, absent this subsection, be paid within the six-month period
following your “separation from service” with the Company shall not be paid
until the date that is six months and one day after such separation from
service (or, if earlier, your death), with any such installments that are
required to be delayed being accumulated during the six-month period and paid
in a lump sum on the date that is six months and one day following your
separation from service and any subsequent installments, if any, being paid in
accordance with the dates and terms set forth herein; provided, however, that
the preceding provisions of this sentence shall not apply to any installment of
payments if and to the maximum extent that that such installment is deemed to
be paid under a separation pay plan that does not provide for a deferral of
compensation by reason of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating
to separation pay upon an involuntary separation from service).  Any installments that qualify for the
exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must
be paid no later than the last day of the second taxable year of following the
taxable year of in which your separation from service occurs.

 

9.             Section 409A
of the Code.   This Agreement is
intended to comply with the provisions of Section 409A and the Agreement
shall, to the extent practicable, be construed in accordance therewith.  Terms defined in the Agreement shall have the
meanings given such terms under Section 409A if and to the extent required
in order to comply with Section 409A. 
Notwithstanding the foregoing, to the extent that the Agreement or any
payment or benefit hereunder shall be deemed not to comply with Section 409A,
then neither the Company, the Board of Directors nor its or their designees or
agents shall be liable to you or any other person for any actions, decisions or
determinations made in good faith.

 

10.           No Mitigation.  The parties hereto agree that you shall not
be required to mitigate damages in respect of any termination benefit or
payment due under this Agreement, nor shall any such benefit or payment be
offset by any future compensation or income received by you from any other
source.

 

11.           Provision of Benefits.  Should the continuation of any benefits to be
provided to you following the termination of your employment hereunder be
unavailable under the Company’s benefit plans for any reason, the Company shall
pay for you to receive such benefits under substantially similar plans from
similar third party providers.

 

12.           Other Agreements.  You represent and warrant to the Company that
you are not bound by any agreement with a previous employer or other party
which you would in any way violate by accepting employment with the Company or
performing your duties as an employee of the Company.  You further represent and warrant that, in
the performance of your duties with the Company, you will not utilize or
disclose any confidential information in breach of an agreement with a previous
employer or any other party.

 

 

 

 

13.           Assignment.  This Agreement is personal in nature and
neither of the parties hereto shall, without the written consent of the other,
assign or otherwise transfer this Agreement or its obligations, duties and
rights under this Agreement; provided, however, that in the event of the
merger, consolidation, transfer or sale of all or substantially all of the
assets of the Company, this Agreement shall, subject to the provisions hereof,
be binding upon and inure to the benefit of such successor and such successor
shall discharge and perform all of the promises, covenants, duties and
obligations of the Company hereunder.

 

14.           General.

 

(a)          Entire Agreement; Modification. This Agreement contains the entire
agreement of the parties relating to the subject matter hereof, and the parties
hereto have made no agreements, representations or warranties relating to the
subject matter of this Agreement that are not set forth otherwise herein.  This Agreement supersedes any and all prior
agreements, written or oral, between you and the Company.  No modification of this Agreement shall be
valid unless made in writing and signed by the parties hereto.

 

(b)         Severable Provisions. 
This provisions of this Agreement are severable and if any one or more
provisions may be determined to be illegal or otherwise unenforceable, in whole
or in part, the remaining provisions of the Agreement shall nevertheless be
binding and enforceable.  Notwithstanding
the foregoing, if there are any conflicts
between the terms of this Agreement and the terms of any Plan document referred
to in this Agreement, then the terms of this Agreement shall govern and
control.  Except as modified hereby, the
Agreement shall remain unmodified and in full force and effect.

 

(c)          Governing Law. 
This Agreement shall be governed by and interpreted in accordance with
the laws of the Commonwealth of Massachusetts, without regard to the conflict
of laws provisions hereof.

 

(d)         Arbitration.

 

(i)                                     Any controversy, dispute or claim arising
out of or relating to this Agreement or the breach hereof which cannot be
settled by mutual agreement will be finally settled by binding arbitration in
New York, New York, under the jurisdiction of the American Arbitration
Association, before a single arbitrator appointed in accordance with the
arbitration rules of the American Arbitration Association, modified only
as herein expressly provided.  The
arbitrator may enter a default decision against any party who fails to
participate in the arbitration proceedings.

 

(ii)                                  The decision of the arbitrator on the
points in dispute will be final, non-appealable and binding, and judgment on
the award may be entered in any court having jurisdiction thereof.

 

(iii)                               Except as otherwise provided in this
Agreement, all the fees and expenses of the arbitrator will be borne by the
Company, and each party will bear the fees and expenses of its own attorney.

 

(iv)                              The parties agree that this Section 14(d) has
been included to rapidly and inexpensively resolve any disputes between them
with respect to this Agreement, and that this Section 14(d) will be
grounds for dismissal of any court action commenced by either party with
respect to this Agreement, other than post-arbitration actions seeking to
enforce an arbitration award or actions seeking an injunction or temporary
restraining order. In the event that any court determines that this arbitration
procedure is not binding, or otherwise allows any litigation regarding a
dispute, claim, or controversy covered by this Agreement to proceed, the
parties hereto hereby waive any and all right to a trial by jury in or with
respect to such litigation.

 

 

 

 

(v)                                 The parties will keep confidential, and
will not disclose to any person, except as may be required by law, the
existence of any controversy hereunder, the referral of any such controversy to
arbitration or the status or resolution thereof

 

(e)          Notices. 
All notices shall be in writing and shall be delivered personally
(including by courier), sent by facsimile transmission (with appropriate
documented receipt thereof), by overnight receipted courier service (such as
UPS or FedEx) or sent by certified, registered or express mail, postage
prepaid, to the Company at the following address:  General Counsel, Sonus Networks, Inc., 7
Technology Park Drive, Westford, MA 01886, and to you at the following
address:  71 Ettl Circle, Princeton, NJ
08540 with a copy to Sack & Sack, 110 East 59th Street, 19th
Floor, New York, NY 10022, Attn: 
Jonathan S. Sack, Esq.  Any
such notice shall be deemed given when so delivered personally, or if sent by
facsimile transmission, when transmitted, or, if by certified, registered or
express mail, postage prepaid mailed, forty-eight (48) hours after the date of
deposit in the mail.  Any party may, by
notice given in accordance with this paragraph to the other party, designate
another address or person for receipt of notices hereunder.

 

(f)            Counterparts. 
This Agreement may be executed in more than one counterpart, each of
which shall be deemed to be an original, and all such counterparts together
shall constitute one and the same instrument.

 

You may accept this offer
of employment and the terms and conditions thereof by confirming your
acceptance in writing by May 16, 2008. 
Please send your letter to the company, or via e-mail to hahmed@sonusnet.com
which execution will evidence your agreement with the terms and conditions set
forth herein and therein.  We are
enthusiastic about your joining us, and believe that our technical and business
goals will provide every opportunity for you to achieve your personal and
professional objectives.

 

I am looking forward to
your joining the team to help us take Sonus to the next level.

 

	
  Very truly yours,

  
	
   

  
	
  /s/
  Hassan Ahmed

  	
   

  
	
  Hassan Ahmed

  
	
  Chairman of the Board
  of Directors

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Accepted by:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Richard N. Nottenburg

  	
   

  	
  May 16, 2008

  	
   

  
	
  Richard N. Nottenburg

  	
   

  	
  Date

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