Document:

Exhibit 10.2

 

EXECUTIVE SEVERANCE BENEFITS AGREEMENT

 

This EXECUTIVE SEVERANCE BENEFITS
AGREEMENT (the “Agreement”)
is entered into this
                  
day
of                             ,
             (the “Effective Date”), between 
                                                                  
(“Executive”) and SYMMETRICOM, INC. (the “Company”). 
This Agreement is intended to provide Executive with the compensation
and benefits described herein upon the occurrence of specific events.

 

Certain capitalized terms used in this Agreement are defined below, in Article 5.

 

The Company and Executive hereby agree as follows:

 

ARTICLE 1

 

SCOPE OF
AND CONSIDERATION FOR THIS AGREEMENT

 

1.1          Position and Duties.  Executive is
currently employed by the Company as
                              .  Executive reports directly to the Company’s
Chief Executive Officer.

 

1.2          Restrictions.  During his employment by the Company,
Executive agrees to the best of his ability and experience that he will at all
times loyally and conscientiously perform all of the duties and obligations
required of and from him as
                                              .  During the term of his employment, Executive
further agrees that he will devote all of his business time and attention to
the business of the Company, the Company will be entitled to all of the
benefits and profits arising from or incident to all such work, services and
advice, Executive will not render commercial or professional services of any
nature to any person or organization, whether or not for compensation, without
the prior written consent of the Board or its authorized designee, and
Executive will not directly or indirectly engage or participate in any business
that is competitive in any manner with the business of the Company.  Nothing in this Agreement will prevent
Executive from accepting speaking or presentation engagements in exchange for
honoraria or from service on boards of charitable organizations or otherwise
participating in civic, charitable or fraternal organizations, or from owning
no more than one percent (1%) of the outstanding equity securities of a
corporation whose stock is listed on a national stock exchange.

 

1.3          Confidential Information and Invention
Assignment Agreement. 
Executive acknowledges that he has previously executed and delivered to
an officer of the Company the Company’s Confidentiality and Invention
Assignment Agreement (the “Confidentiality
Agreement”) and that the
Confidentiality Agreement remains in full force and effect.

 

1.4          Confidentiality of Terms.  Executive agrees to follow the Company’s
strict policy that except as mandated by applicable law employees must not
disclose, either directly or indirectly, any information, including any of the
terms of this Agreement, regarding salary, bonuses, or stock purchase or option
allocations to any person, including other employees of the Company; provided, however, that
Executive may discuss such terms with members of his immediate family and any
legal, tax or accounting specialists who provide Executive with individual
legal, tax or accounting advice, and Executive may discuss such terms with
other 

 

 

employees of
the Company on a need to know basis if required to carry out Executive’s
duties, or at the request of the Board or any other superior officer of the
Company.

 

1.5          Consideration.  The
duties and obligations of the Company to Executive under this Agreement shall
be in consideration for Executive’s past services to the Company, Executive’s
continued employment with the Company, and Executive’s execution of a release
in accordance with Section 3.1.

 

1.6          Prior Agreement.  This Agreement shall
supersede any other agreement relating to severance benefits in the event of
Executive’s severance from employment.

 

ARTICLE 2

 

SEVERANCE BENEFITS

 

2.1          Severance Benefits.  A Covered Termination of Executive’s
employment prior to or more than twelve (12) months following the effective
date of a Change of Control entitles Executive to receive the benefits set
forth in this Section 2.1.

 

(a)           Base Salary and
Bonus.  The
Company shall pay to Executive an amount (the “Severance
Amount”) equal to the sum of Base Salary plus the excess, if any, of
(i) Executive’s target annual bonus for the fiscal year during which the
Covered Termination occurs, with such bonus determined assuming that all of the
performance objectives for such fiscal year have been attained, over (ii) any
portion of Executive’s annual bonus for the fiscal year in which the Covered
Termination occurs that has been paid to Executive prior to the date of the
Covered Termination, prorated by the Severance Period.  Such Severance Amount shall be paid  over
the Severance Period commencing
on the date of termination in substantially equal installments in
accordance with the Company’s regular payroll practices and shall be subject to
all required tax withholding; provided, however, that any such payments that
would otherwise have been made before the first normal payroll payment date
falling on or after the First Payment Date shall be made on the First Payment
Date.

 

(b)           Health Benefits.  Provided that Executive elects continued
coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”), the Company shall pay the
premiums of Executive’s group health insurance coverage and Executive’s “Exec-U-Care”
or similar secondary health insurance coverage, including coverage for
Executive’s eligible dependents, until the earlier of the expiration of the
Severance Period or the applicable COBRA continuation period; provided, however, that the Company shall pay premiums for
Executive’s eligible dependents only for coverage for which those eligible
dependents were enrolled immediately prior to the Covered Termination; provided, further, that
Executive shall be solely responsible for all matters relating to his
continuation of coverage pursuant to COBRA, including, without limitation, the
election of such coverage.  For the
balance of the period that Executive is entitled to coverage under federal
COBRA law, if any, Executive shall be entitled to maintain such coverage at
Executive’s own expense.

 

2

 

2.2          Change of Control Severance Benefits.  A Covered Termination of Executive’s
employment within twelve (12) months following the effective date of a Change
of Control entitles Executive to receive the benefits set forth in this Section 2.2.

 

(a)           Base Salary.  The Company shall pay to Executive an amount
equal to twelve (12) months’ Base Salary. 
Such severance amount shall be paid over a period of twelve (12) months
commencing on the date of termination in substantially equal installments in
accordance with the Company’s regular payroll practices and shall be subject to
all required tax withholding; provided, however, that any such payments that
would otherwise have been made before the first normal payroll payment date
falling on or after the First Payment Date shall be made on the First Payment
Date.

 

(b)           Bonus.  The Company shall pay to Executive an amount
equal to the sum of (x) the excess, if any, of (i) Executive’s target
annual bonus for the fiscal year during which the Covered Termination occurs,
with such bonus determined assuming that all of the performance objectives for
such fiscal year have been attained, over (ii) any portion of Executive’s
annual bonus for the fiscal year in which the Covered Termination occurs that
has been paid to Executive prior to the date of the Covered Termination,
prorated by the portion of the fiscal year that the Executive was employed by
the Company and (y) Executive’s target annual bonus for the fiscal year
during which the Covered Termination occurs, with such bonus determined
assuming that all of the performance objectives for such fiscal year have been
attained (i.e., Executive shall be entitled to receive a prorated target bonus
for the current year and an additional year’s target bonus).  Such severance amount shall be paid over a
period of twelve (12) months commencing on the date of termination in
substantially equal installments in accordance with the Company’s regular
payroll practices and shall be subject to all required tax withholding;
provided, however, that any such payments that would otherwise have been made
before the first normal payroll payment date falling on or after the First
Payment Date shall be made on the First Payment Date.

 

(c)           Covered Termination Stock Award
Acceleration.  In
the event of a Covered Termination of Executive’s employment within twelve (12)
months following the effective date of a Change of Control:

 

(i)            if the applicable Change of Control
occurs within twelve (12) months after the date on which Executive commenced
employment with the Company (the “Employment Commencement
Date”), the vesting and/or exercisability of fifty percent (50%) of
Executive’s outstanding unvested Stock Awards shall be automatically
accelerated on the date of termination; or

 

(ii)           if the applicable Change of Control
occurs on or after the first anniversary of the Employment Commencement Date,
the vesting and/or exercisability of one hundred percent (100%) of Executive’s
outstanding Stock Awards shall be automatically accelerated on the date of
termination.

 

(d)           Health Benefits.  Provided that Executive elects continued
coverage under federal COBRA law, the Company shall pay the premiums of
Executive’s group health insurance coverage, including coverage for Executive’s
eligible dependents, until the earlier of 

 

3

 

the expiration of the twelve
(12) month period following the Covered Termination or the applicable COBRA
continuation period; provided, however,
that the Company shall pay premiums for Executive’s eligible dependents only
for coverage for which those eligible dependents were enrolled immediately
prior to the Covered Termination; provided, further, that Executive shall be solely responsible for all
matters relating to his continuation of coverage pursuant to federal COBRA law,
including, without limitation, the election of such coverage.  For the balance of the period that Executive
is entitled to coverage under federal COBRA law, if any, Executive shall be
entitled to maintain such coverage at Executive’s own expense.

 

(e)           No Duplication of Benefits.  The payments and
benefits provided for in this Section 2.2 shall only be payable in the
event of a Covered Termination of Executive’s employment within twelve (12)
months following the effective date of a Change of Control.  In the event of a Covered Termination of
Executive’s employment prior to or more than twelve (12) months following a
Change Control, then Executive shall receive the payments and benefits
described in Section 2.1 and shall not be eligible to receive any of the
payments and benefits described in this Section 2.2.

 

2.3          Other Terminations.  If Executive’s employment is terminated by
the Company for Cause, by Executive other than pursuant to a Constructive
Termination or as a result of Executive’s death or disability, the Company
shall not have any other or further obligations to Executive under this
Agreement (including any financial obligations) except that Executive shall be
entitled to receive (a) Executive’s fully earned but unpaid base salary,
through the date of termination at the rate then in effect, and (b) all
other amounts or benefits to which Executive is entitled under any
compensation, retirement or benefit plan or practice of the Company at the time
of termination in accordance with the terms of such plans or practices,
including, without limitation, any continuation of benefits required by federal
COBRA law or applicable law.  The
foregoing shall be in addition to, and not in lieu of, any and all other rights
and remedies which may be available to the Company under the circumstances,
whether at law or in equity.

 

2.4          Mitigation.  Except as otherwise specifically provided
herein, Executive shall not be required to mitigate damages or the amount of
any payment provided under this Agreement by seeking other employment or
otherwise, nor shall the amount of any payment provided for under this
Agreement be reduced by any compensation earned by Executive as a result of
employment by another employer or by any retirement benefits received by
Executive after the date of the Covered Termination.

 

2.5          Exclusive Remedy.  Except as otherwise expressly required by law
(e.g., COBRA) or as specifically provided herein, all of Executive’s rights to
salary, severance, benefits, bonuses and other amounts hereunder (if any)
accruing after the termination of Executive’s employment shall cease upon such
termination.  In the event of a
termination of Executive’s employment with the Company, Executive’s sole remedy
shall be to receive the payments and benefits described in this Agreement.

 

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ARTICLE 3

 

LIMITATIONS
AND CONDITIONS ON BENEFITS

 

3.1          Release Prior to
Payment of Benefits. 
Upon the occurrence of a Covered Termination of Executive’s employment,
and prior to the payment of any benefits under this Agreement on account of
such Covered Termination, Executive shall execute and not revoke a release (the
“Release”) in the form attached
hereto and incorporated herein as Exhibit A or Exhibit B, as
applicable.  Executive shall execute and
deliver such Release to the Company no later than fifty (50) days following the
date of the Covered Termination.  Such
Release shall specifically relate to all of Executive’s rights and claims in
existence at the time of such execution and shall confirm Executive’s
obligations under the Confidentiality Agreement.  It is understood that, as specified in the applicable
Release, Executive has a certain number of calendar days to consider whether to
execute such Release, and Executive may revoke such Release within seven (7) calendar
days after execution.  In the event
Executive does not execute such Release within the applicable period, or if
Executive revokes such Release within the subsequent seven (7) day period,
no benefits shall be payable under this Agreement.

 

3.2          Termination of Benefits.  Benefits under this Agreement shall terminate
immediately if the Executive, at any time, violates any proprietary information
or confidentiality obligation to the Company, including, without limitation,
the Confidentiality Agreement.

 

3.3          Code
Section 409A.  Notwithstanding
any provision to the contrary in the Agreement, if the Executive is deemed by
the Company at the time of his Separation from Service to be a “specified
employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to
the extent delayed commencement of any portion of the termination benefits to
which Executive is entitled under this Agreement is required in order to avoid
a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code,
such portion of Executive’s termination benefits shall not be provided to
Executive prior to the earlier of (a) the expiration of the six-month
period measured from the date of the Executive’s Separation from Service with
the Company or (b) the date of Executive’s death.  Upon the first business day following the
expiration of the applicable Code Section 409A(a)(2)(B)(i) deferral
period, all payments deferred pursuant to this Section 3.3 shall be paid
in a lump sum to the Executive, and any remaining payments due under the
Agreement shall be paid as otherwise provided herein, with all such payments to
be subject to all required tax withholding. 
For purposes of Section 409A of the Code (including, without
limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)),
Executive’s right to receive the installment payments payable pursuant to Article 2
(the “Installment Payments”) shall be treated as a right to receive a series of
separate payments and, accordingly, each Installment Payment shall at all times
be considered a separate and distinct payment.

 

ARTICLE 4

 

PARACHUTE PAYMENTS

 

4.1          Parachute Payment Cut-Back.  Anything in this
Agreement to the contrary notwithstanding, in the event it shall be determined
that any Payment under this Agreement would, when combined with all other
Payments Executive receives from the Company or any 

 

5

 

successor or parent or
subsidiary thereof, but for this Article 4, be considered an “excess
parachute payment” under Section 280G of the Code, then such Payments
shall be reduced (with cash payments being reduced before Stock Award
compensation) as would result in no portion of the payments being considered “excess
parachute payments” under Section 280G of the Code.

 

4.2          Determinations.  All determinations
required to be made under this Article 4, including whether and to what
extent the Payments shall be reduced and the assumptions to be utilized in arriving
at such determination, shall be made by the nationally recognized certified
public accounting firm used by the Company immediately prior to the Change of
Control or, if such firm declines to serve, such other nationally recognized
certified public accounting firm as may be designated by the Executive (the “Accounting Firm”).  The Accounting Firm shall provide detailed
supporting calculations both to the Company and the Executive at such time as
is requested by the Company.  All fees
and expenses of the Accounting Firm shall be borne solely by the Company.  Any determination by the Accounting Firm shall
be binding upon the Company and the Executive. 
For purposes of making the calculations required by this Article 4,
the Accounting Firm may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good-faith
interpretations concerning the application of Sections 280G and 4999 of the
Code.

 

ARTICLE 5

 

DEFINITIONS

 

For purposes
of the Agreement, the following terms are defined as follows:

 

5.1          “Base Salary”
means Executive’s annual base salary as in effect during the last regularly
scheduled payroll period immediately preceding the Covered Termination.

 

5.2          “Board” means
the Board of Directors of the Company.

 

5.3          The Company
shall have “Cause” to terminate the Executive’s
employment hereunder upon:

 

(a)           The
Executive’s willful failure to substantially perform the duties set forth in this
Agreement (other than any such failure resulting from the Executive’s
Disability) which is not remedied within 30 days after receipt of written
notice from the Company specifying such failure;

 

(b)           The
Executive’s willful failure to carry out, or comply with, in any material
respect any lawful and reasonable directive of the Board or the appropriate
individual to whom Executive reports not inconsistent with the terms of this
Agreement, which is not remedied within 30 days after receipt of written notice
from the Company specifying such failure;

 

(c)           The
Executive’s commission at any time of any act or omission that results in, or
that may reasonably be expected to result in, a conviction, plea of no contest
or imposition of unadjudicated probation for any felony or crime involving
moral turpitude;

 

6

 

(d)           The
Executive’s unlawful use (including being under the influence) or possession of
illegal drugs on the Company’s premises or while performing the Executive’s
duties and responsibilities under this Agreement; or

 

(e)           The
Executive’s commission at any time of any act of fraud, embezzlement,
misappropriation, material misconduct, or breach of fiduciary duty against the
Company (or any predecessor thereto or successor thereof).

 

5.4          “Change of Control”
means and includes each of the following:

 

(a)           the acquisition, directly or
indirectly, by any “person” or “group” (as those terms are defined in Sections
3(a)(9), 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended, and the rules thereunder) of “beneficial ownership” (as
determined pursuant to Rule 13d-3 under the Securities Exchange Act of
1934, as amended) of securities entitled to vote generally in the election of
directors (“voting securities”) of the Company
that represent fifty percent (50%) or more of the combined voting power of the
Company’s then outstanding voting securities, other than:

 

(i)            an acquisition by a trustee or other
fiduciary holding securities under any employee benefit plan (or related trust)
sponsored or maintained by the Company or any person controlled by the Company
or by any employee benefit plan (or related trust) sponsored or maintained by
the Company or any person controlled by the Company, or

 

(ii)           an
acquisition of voting securities by the Company or a corporation owned,
directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of the stock of the Company;

 

Notwithstanding
the foregoing, the following event shall not constitute an “acquisition” by any
person or group for purposes of this Section: an acquisition of the Company’s
securities by the Company that causes the Company’s voting securities
beneficially owned by a person or group to represent fifty percent (50%) or
more of the combined voting power of the Company’s then outstanding voting
securities; provided, however,
that if a person or group shall become the beneficial owner of fifty percent
(50%) or more of the combined voting power of the Company’s then outstanding
voting securities by reason of share acquisitions by the Company as described
above and shall, after such share acquisitions by the Company, become the
beneficial owner of any additional voting securities of the Company, then such
acquisition shall constitute a Change of Control; or

 

(b)           the consummation by the Company
(whether directly involving the Company or indirectly involving the Company
through one or more intermediaries) of (x) a merger, consolidation,
reorganization, or business combination or (y) a sale or other disposition
of all or substantially all of the Company’s assets or (z) the acquisition
of assets or stock of another entity, in each case other than a transaction
which results in the Company’s voting securities outstanding immediately before
the transaction continuing to represent (either by remaining outstanding or by
being converted into voting securities of the Company or the person that, as a
result of the transaction, controls, directly or indirectly, the Company or
owns, directly or indirectly, all or substantially all of the Company’s assets
or otherwise succeeds to the 

 

7

 

business of the Company (the
Company or such person, the “Successor Entity”)) directly or indirectly, at least a
majority of the combined voting power of the Successor Entity’s outstanding
voting securities immediately after the transaction.

 

5.5          “Code” means the Internal Revenue Code of
1986, as amended from time to time and the Treasury Regulations thereunder.

 

5.6          “Company”
means Symmetricom, Inc. or, following a Change of Control, the surviving
entity resulting from such transaction, including the acquirer of substantially
all the Company’s assets.

 

5.7          “Constructive Termination”
means that Executive voluntarily terminates employment after any of the
following are undertaken without Executive’s express written consent:

 

(a)           A
material diminution in the nature or scope of the Executive’s responsibilities,
title, duties or authority;

 

(b)          
Failure of the Company to make any material payment or provide any material
benefit under an agreement pursuant to which the Executive performs services
for the Company; or

 

(c)           A
relocation of Executive’s place of employment by more than thirty (30) miles
from such Executive’s place of employment on the Effective Date;

 

provided,
however, that notwithstanding the foregoing the Executive may not resign
his employment as a Constructive Termination unless:  (A) the Executive provides the Company
with at least 30 days prior written notice of his intent to resign as a
Constructive Termination (which notice is provided not later than the 30th day following the occurrence of the event
constituting Constructive Termination), and (B) the Company has not
remedied the alleged violation(s) within the 30-day period.  The termination of Executive’s employment as
a result of Executive’s death or disability will not be deemed to be a
Constructive Termination.

 

5.8          “Covered Termination”
means an Involuntary Termination Without Cause or a Constructive Termination,
provided that such termination constitutes a Separation from Service.

 

5.9          “Excise Tax” means the excise tax imposed by
Section 4999 of the Code, together with any interest or penalties imposed
with respect to such excise tax.

 

5.10        “First
Payment Date” means the date on which the Release
becomes irrevocable.

 

5.11        “Involuntary Termination Without Cause” means Executive’s
dismissal or discharge by the Company other than for Cause.  The termination of Executive’s employment as
a result of Executive’s death or disability will not be deemed to be an
Involuntary Termination Without Cause.

 

8

 

5.12        A
“Payment” shall mean any payment
or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of
the Code) to or for the benefit of the Executive, whether paid or payable
pursuant to this Agreement or otherwise.

 

5.13        “Separation
from Service” means a termination of Executive’s
employment with the Company which constitutes a separation from service within
the meaning of Section 409A of the Code and the regulations promulgated
thereunder, including Treasury Regulation Section 1.409A-1(h).

 

5.14        “Severance
Period” shall be determined as follows:

 

(a)           If,
as of the date of his Covered Termination, Executive has been employed by the
Company for less than one year, the Severance Period shall be six (6) months;

 

(b)           If,
as of the date of his Covered Termination, Executive has been employed by the
Company for one year or more, but less than three years, the Severance Period
shall be nine (9) months;

 

(c)           If,
as of the date of his Covered Termination, Executive has been employed by the
Company for three years or more, the Severance Period shall be twelve (12) months.

 

5.15        “Stock Awards”
means all stock options, restricted stock and such other awards granted
pursuant to the Company’s stock option and equity incentive award plans or
agreements and any shares of stock issued upon exercise thereof.

 

ARTICLE 6

 

GENERAL
PROVISIONS

 

6.1          Employment Status.  This Agreement does not constitute a contract
of employment or impose upon Executive any obligation to remain as an employee,
or impose on the Company any obligation (a) to retain Executive as an
employee, (b) to change the status of Executive as an at-will employee, or
(c) to change the Company’s policies regarding termination of employment.

 

6.2          Notices.  Any notices provided hereunder must be in
writing, and such notices or any other written communication shall be deemed
effective upon the earlier of personal delivery (including personal delivery by
facsimile) or the third day after mailing by first class mail to the Company at
its primary office location and to Executive at Executive’s address as listed
in the Company’s payroll records.  Any
payments made by the Company to Executive under the terms of this Agreement
shall be delivered to Executive either in person or at the address as listed in
the Company’s payroll records.

 

6.3          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 

 

9

 

affect any other provision or
any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable
provisions had never been contained herein.

 

6.4          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.

 

6.5          Arbitration.  Any dispute, claim or controversy based on,
arising out of or relating to Executive’s employment or this Agreement shall be
settled by final and binding arbitration in Santa Clara County, California,
before a single neutral arbitrator in accordance with the National Rules for
the Resolution of Employment Disputes (the “Rules”)
of the American Arbitration Association, and judgment on the award rendered by
the arbitrator may be entered in any court having jurisdiction.  Arbitration may be compelled pursuant to the
California Arbitration Act (Code of Civil Procedure §§ 1280 et  seq.).  If the parties are unable to agree upon an
arbitrator, one shall be appointed by the AAA in accordance with its
Rules.  Each party shall pay the fees of
its own attorneys, the expenses of its witnesses and all other expenses
connected with presenting its case; however,
Executive and the Company agree that, to the extent permitted by law, the arbitrator
may, in his discretion, award reasonable attorneys’ fees to the prevailing
party.  Other costs of the arbitration,
including the cost of any record or transcripts of the arbitration, AAA’s
administrative fees, the fee of the arbitrator, and all other fees and costs,
shall be borne by the Company.  This Section 6.5
is intended to be the exclusive method for resolving any and all claims by the
parties against each other for payment of damages under this Agreement or
relating to Executive’s employment; provided, however, that neither this Agreement nor the submission to
arbitration shall limit the parties’ right to seek provisional relief,
including, without limitation, injunctive relief, in any court of competent
jurisdiction pursuant to California Code of Civil Procedure § 1281.8 or any
similar statute of an applicable jurisdiction. 
Seeking any such relief shall not be deemed to be a waiver of such party’s
right to compel arbitration.  Both
Executive and the Company expressly waive their right to a jury trial. Pursuant
to California Civil Code Section 1717, each party warrants that it was
represented by counsel in the negotiation and execution of this Agreement,
including the attorneys’ fees provision herein.

 

6.6          Complete Agreement.  This Agreement, including Exhibit A and Exhibit B,
constitutes the entire agreement between Executive and the Company and is the
complete, final, and exclusive embodiment of their agreement with regard to
this subject matter, wholly superseding all written and oral agreements with
respect to severance benefits to Executive in the event of employment
termination.  It is entered into without
reliance on any promise or representation other than those expressly contained
herein.  Notwithstanding anything herein
to the contrary, this Agreement shall not supersede any indemnification
agreement between Executive and the Company.

 

6.7          Amendment or Termination of Agreement.  This Agreement may be changed or terminated
only upon the mutual written consent of the Company and Executive.  The written consent of the Company to a
change or termination of this Agreement must be signed by an executive officer
of the Company after such change or termination has been approved by the Board.

 

10

 

6.8          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.

 

6.9          Headings.  The headings of the Articles and Sections
hereof are inserted for convenience only and shall not be deemed to constitute
a part hereof nor to affect the meaning thereof.

 

6.10        Successors and Assigns.  This Agreement is intended to bind and inure
to the benefit of and be enforceable by Executive, and the Company, and any
surviving entity resulting from a Change of Control and upon any other person
who is a successor by merger, acquisition, consolidation or otherwise to the
business formerly carried on by the Company, and their respective successors,
assigns, heirs, executors and administrators, without regard to whether or not
such person actively assumes any rights or duties hereunder; provided, however, that Executive may not assign any duties
hereunder and may not assign any rights hereunder without the written consent
of the Company, which consent shall not be withheld unreasonably.

 

6.11        Choice of Law.  All questions concerning the construction,
validity and interpretation of this Agreement will be governed by the law of
the State of California, without regard to such state’s conflict of laws rules.

 

6.12        Non-Publication.  The parties mutually agree not to disclose
publicly the terms of this Agreement except to the extent that disclosure is
mandated by applicable law or regulation or to their respective advisors (e.g., attorneys, accountants).

 

6.13        Construction of Agreement.  In the event of a conflict between the text
of the Agreement and any summary, description or other information regarding
the Agreement, the text of the Agreement shall control.

 

(Signature
Page Follows)

 

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IN WITNESS WHEREOF,
the parties have executed this Agreement on the Effective Date written above.

 

 

	
  SYMMETRICOM, INC.

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
						

 

 

Exhibit A:  Release
(Individual Termination)

Exhibit B:  Release (Group
Termination)

 

12

 

EXHIBIT A

 

RELEASE

(INDIVIDUAL TERMINATION)

 

Certain capitalized terms used in this
Release are defined in the Executive Severance Benefits Agreement (the “Agreement”) which I have executed and of
which this Release is a part.

 

I hereby confirm my obligations under the
Company’s proprietary information and inventions agreement.

 

I acknowledge that I have read and understand
Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or her
settlement with the debtor.” 
I hereby expressly waive and relinquish all rights and benefits under
that section and any law of any jurisdiction of similar effect with respect to
my release of any claims I may have against the Company.

 

Except as otherwise set forth in this
Release, I hereby release, acquit and forever discharge the Company, its
parents and subsidiaries, and their officers, directors, agents, servants,
employees, shareholders, successors, assigns and affiliates, of and from any
and all claims, liabilities, demands, causes of action, costs, expenses,
attorneys fees, damages, indemnities and obligations of every kind and nature,
in law, equity, or otherwise, known and unknown, suspected and unsuspected,
disclosed and undisclosed (other than any claim for indemnification I may have
as a result of any third party action against me based on my employment with
the Company), arising out of or in any way related to agreements, events, acts
or conduct at any time prior to the date I execute this Release, including, but
not limited to:  all such claims and
demands directly or indirectly arising out of or in any way connected with my
employment with the Company or the termination of that employment, including
but not limited to, claims of intentional and negligent infliction of emotional
distress, any and all tort claims for personal injury, claims or demands
related to salary, bonuses, commissions, stock, stock options, or any other
ownership interests in the Company, vacation pay, fringe benefits, expense
reimbursements, severance pay, or any other form of disputed compensation;
claims pursuant to any federal, state or local law or cause of action
including, but not limited to, the federal Civil Rights Act of 1964, as
amended; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the federal Employee Retirement
Income Security Act of 1974, as amended; the federal Americans with
Disabilities Act of 1990; the California Fair Employment and Housing Act, as
amended; tort law; contract law; statutory law; common law; wrongful discharge;
discrimination; fraud; defamation; emotional distress; and breach of the
implied covenant of good faith and fair dealing; provided,
however, that nothing in this paragraph shall be construed in any
way to release the Company from its obligation to indemnify me pursuant to the
Company’s indemnification obligation pursuant to agreement or applicable law.

 

1

 

I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under ADEA.  I also acknowledge that the consideration
given under the Agreement for the waiver and release in the preceding paragraph
hereof is in addition to anything of value to which I was already entitled.  I further acknowledge that I have been advised
by this writing, as required by the ADEA, that:  (A) my
waiver and release do not apply to any rights or claims that may arise on or
after the date I execute this Release; (B) I have the right to consult with
an attorney prior to executing this Release; (C) I have twenty-one (21) days 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 by the parties
to revoke the Release; and (E) this
Release shall not be effective until the date upon which the revocation period
has expired, which shall be the eighth day after this Release is executed by
me.

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

2

 

EXHIBIT B

 

RELEASE

(GROUP TERMINATION)

 

Certain capitalized terms used in this
Release are defined in the Executive Severance Benefits Agreement (the “Agreement”) which I have executed and of
which this Release is a part.

 

I hereby confirm my obligations under the
Company’s proprietary information and inventions agreement.

 

I acknowledge that I have read and understand
Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or her
settlement with the debtor.” 
I hereby expressly waive and relinquish all rights and benefits under
that section and any law of any jurisdiction of similar effect with respect to
my release of any claims I may have against the Company.

 

Except as otherwise set forth in this
Release, I hereby release, acquit and forever discharge the Company, its
parents and subsidiaries, and their officers, directors, agents, servants,
employees, shareholders, successors, assigns and affiliates, of and from any
and all claims, liabilities, demands, causes of action, costs, expenses,
attorneys fees, damages, indemnities and obligations of every kind and nature,
in law, equity, or otherwise, known and unknown, suspected and unsuspected,
disclosed and undisclosed (other than any claim for indemnification I may have
as a result of any third party action against me based on my employment with
the Company), arising out of or in any way related to agreements, events, acts
or conduct at any time prior to the date I execute this Release, including, but
not limited to:  all such claims and
demands directly or indirectly arising out of or in any way connected with my
employment with the Company or the termination of that employment, including
but not limited to, claims of intentional and negligent infliction of emotional
distress, any and all tort claims for personal injury, claims or demands
related to salary, bonuses, commissions, stock, stock options, or any other
ownership interests in the Company, vacation pay, fringe benefits, expense
reimbursements, severance pay, or any other form of disputed compensation;
claims pursuant to any federal, state or local law or cause of action
including, but not limited to, the federal Civil Rights Act of 1964, as
amended; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the federal Employee Retirement
Income Security Act of 1974, as amended; the federal Americans with
Disabilities Act of 1990; the California Fair Employment and Housing Act, as
amended; tort law; contract law; statutory law; common law; wrongful discharge;
discrimination; fraud; defamation; emotional distress; and breach of the
implied covenant of good faith and fair dealing; provided,
however, that nothing in this paragraph shall be construed in any
way to release the Company from its obligation to indemnify me pursuant to the
Company’s indemnification obligation pursuant to agreement or applicable law.

 

1

 

I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under ADEA.  I also acknowledge that the consideration
given under the Agreement for the waiver and release in the preceding paragraph
hereof is in addition to anything of value to which I was already
entitled.  I further acknowledge that I
have been advised by this writing, as required by the ADEA, that: 
(A) my waiver and release do not apply to any rights
or claims that may arise on or after the date I execute this Release; (B) I have the
right to consult with an attorney prior to executing this Release; (C) I have
forty-five (45) days 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 by the parties to revoke the Release; (E) this Release
shall not be effective until the date upon which the revocation period has
expired, which shall be the eighth day after this Release is executed by me;
and (F) I have received with this Release a detailed list of the job
titles and ages of all employees who were terminated in this group termination
and the ages of all employees of the Company in the same job classification or
organizational unit who were not terminated.

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

2Exhibit 10.3

 

AMENDED
AND RESTATED

EMPLOYMENT AND EXECUTIVE SEVERANCE AGREEMENT

 

This AMENDED AND RESTATED EMPLOYMENT AND EXECUTIVE SEVERANCE AGREEMENT
(this “Agreement”), effective as of  October 30, 2008, is entered into by
and between, THOMAS W. STEIPP (“Executive”) and SYMMETRICOM, INC. (the “Company”).

 

RECITALS

 

WHEREAS, Executive is currently employed by the Company as President
and Chief Executive Officer;

 

WHEREAS, the parties now desire to supersede and replace the Employment
and Executive Severance Agreement dated September 14, 2007 (the “Prior
Agreement”), and any other agreement relating to Executive’s employment with
the Company or Executive’s severance benefits in the event of his severance
from employment with the terms and provisions set forth herein;

 

WHEREAS, it is expected that the Company from time to time will
consider the possibility of an acquisition by another company or other change
of control, and the Board of Directors of the Company (the “Board”) recognizes
that such consideration can be a distraction to the Executive and can cause the
Executive to consider alternative employment opportunities;

 

WHEREAS, the Board has determined that it is in the best interests of
the Company and its stockholders to assure that the Company will have the
continued dedication and objectivity of the Executive, notwithstanding the
possibility, threat or occurrence of a Change of Control (as defined below) of
the Company;

 

WHEREAS, the Board believes that it is in the best interests of the
Company and its stockholders to provide the Executive with an incentive to
continue his employment and to motivate the Executive to maximize the value of
the Company upon a Change of Control for the benefit of its stockholders; and

 

WHEREAS, the Board believes that it is imperative to provide the
Executive with retention/severance benefits following a Change of Control which
provides the Executive with enhanced financial security and provides incentive
and encouragement to the Executive to remain with the Company notwithstanding
the possibility of a Change of Control.

 

AGREEMENT

 

The parties, intending to
be legally bound, agree as follows:

 

1.                                      EMPLOYMENT
PERIOD.

 

1.1                               Basic
Term.   The Company shall employ
Executive from the date of this Agreement through December 31, 2008 (the “Term
Date”), or such later date through which this 

 

 

Agreement may be extended
under Section 1.2, unless Executive is terminated sooner in accordance
with Section 4.

 

1.2                               Renewal.  Unless terminated sooner in accordance with Section 4,
this Agreement shall be renewed for an additional one (1) year period on
the Term Date and on each anniversary thereof, unless one party gives to the
other advance written notice of nonrenewal at least 60 days prior to such
date.  The Company may elect not to renew
this Agreement only for Cause, within the meaning of Section 12.1.

 

2.                                      POSITION
AND RESPONSIBILITIES.

 

2.1                               Position.  Executive accepts employment with the Company
as Chief Executive Officer and shall perform all services appropriate to that
position.

 

2.2                               Outside
Activity.  Except upon the prior
written consent of the Company, Executive, during his employment with the
Company, shall not engage, directly or indirectly, in any other business,
commercial, or professional activity (whether or not pursued for pecuniary
advantage) that is or may be competitive with the Company, create a conflict of
interest with the Company, or otherwise interfere with the business of the
Company or any of its affiliates.

 

3.                                      COMPENSATION
AND BENEFITS.

 

3.1                               Base
Salary.  Executive’s base salary
shall be at the annual rate of $500,000 for fiscal 2009 (the year ending June 30,
2009). At or near each fiscal year thereafter, Executive’s annual base salary
shall be increased by an amount mutually determined by Executive and the Board or
its Compensation Committee.

 

3.2                               Incentive
Compensation.  Executive shall
participate in the Company’s Management Incentive Plan, the terms of which
shall be determined each fiscal year by the Board or the Compensation
Committee. For fiscal year 2009 Executive shall be eligible to earn up to 75%
of Executive’s Base Salary as Incentive Compensation (“Target Bonus”).  The maximum Target Bonus may be adjusted from
time to time by the Compensation Committee in their sole discretion.  The exact amount of the Target Bonus awarded
the Executive in any given year shall be determined by the Compensation
Committee in their sole discretion.

 

3.3                               Equity
Compensation.  The parties
acknowledge that Executive has the same right to participate in the Company’s
current 2006 Incentive Award Plan and in future equity incentive plans as other
Company executives.

 

3.4                               Relocation
Assistance.  The parties acknowledge
that the Company provided Executive certain assistance in relocating to the San
Francisco Bay Area from Atlanta, Georgia, including the extension of two loans,
the principal terms and conditions of which are as follows:

 

(a)           Interest-Bearing Loan.
In March 1998, the Company loaned Executive the principal amount of
$400,000, with an interest rate of 6.0% (the “Interest-Bearing Loan”), and
agreed to forgive such principal and interest in four equal installments. The
four forgiveness installments were made on June 30, 1998, 1999, 2000 and
2001.

 

2

 

(b)           Interest-Free Loan.  In March 1998, the Company loaned
Executive the principal amount of $500,000, free of interest (the “Interest-Free
Loan”). This loan is intended to qualify as a relocation loan under Section 7872
of the Internal Revenue Code and has been fully repaid as of the effective date
of this Agreement.

 

3.5                               Benefits.  Executive shall receive the following
benefits.

 

(a)           eligibility to
participate in the SymmetriCom Executive Medical Plan;

 

(b)           long-term
disability insurance coverage;

 

(c)           life insurance
coverage;

 

(d)           eligibility to
participate in the Company’s retirement and deferred compensation plans; and

 

(e)           four weeks’ annual
paid vacation.

 

3.6                               Business
Equipment.  The Company shall furnish
Executive with such computers, software, peripheral equipment and Internet
access as Executive shall reasonably require for his business and home offices,
and shall pay the associated monthly maintenance and access costs
therefor.  The Company also shall furnish
Executive with a cellular telephone, and shall pay the monthly telephone bill
therefor.

 

4.                                      TERMINATION
OF EMPLOYMENT.

 

4.1                               By
Death.  Executive’s employment shall
terminate upon his death. In the event of such termination, the Company
shall:  (a) pay to Executive’s
estate each month through the end of the second month following the month in
which Executive’s death occurred an amount equal to the monthly salary to which
Executive was entitled under Section 3.1 at the time of his death; (b) promptly
transfer to Executive’s estate any accrued but unpaid incentive compensation to
which Executive may have been entitled under Section 3.2; and (c) promptly
reimburse Executive’s estate for any outstanding reasonable business expenses
incurred by Executive prior to his death.   Thereafter, the Company’s
obligations hereunder shall terminate. This Section shall not affect
entitlement of Executive’s estate or beneficiaries to death benefits under any
benefit provided to Executive by the Company.

 

4.2                               By
Disability.  This Agreement shall
terminate as of the end of the calendar month in which Executive: (a) is
and has been during each of the immediately preceding five (5) or more
consecutive whole calendar months unable to perform his duties under this
Agreement because of mental or physical illness or injury; and (b) has
been determined by the insurer that issued the Company’s long-term disability
policy in effect pursuant to Section 3.5 to be eligible to commence
receiving long-term disability benefits (“Disability”). In the event of such
termination, the Company shall: (i) pay Executive the salary to which he
is entitled pursuant to Section 3.1 through the date of termination; (ii) promptly
transfer to Executive’s estate any accrued but unpaid incentive compensation to
which Executive may have been entitled under Section 3.2; and (iii) promptly
reimburse Executive for any outstanding reasonable business expenses incurred
by Executive prior to his termination. 
Thereafter, the obligations of the 

 

3

 

Company shall terminate.
This Section shall not in any way diminish Executive’s right to receive
disability insurance proceeds.

 

4.3                               By
the Company for Cause.  The  Company may terminate Executive’s employment for Cause (as
defined in Section 12) without notice at any time after the written
warning and minimum cure period have been provided in accordance with Section 12.
In the event of such termination, the Company shall: (a) pay Executive the
salary to which he is entitled pursuant to Section 3.1 through the date of
termination; (b) promptly transfer to Executive any accrued but unpaid
incentive compensation to which he is entitled pursuant to Section 3.2;
and (c) promptly pay any outstanding reasonable business expenses incurred
by Executive prior to such termination.  Thereafter, the obligations of the
Company shall terminate.

 

4.4                               By
the Company Other Than for Cause (Including Non-Renewal) or By Executive for
Good Reason.  Except as expressly
provided in Section 4.2 or 4.5, if Executive is terminated by the Company
other than for Cause (or death or Disability), or if the Company fails to renew
this Agreement other than for Cause, or if Executive resigns from the Company
for Good Reason within 90 days following the event constituting Good Reason,
and such termination constitutes a Separation from Service, then the Company
shall:

 

(a)           within 30 days
following such termination, pay Executive a lump sum equal to the sum of (i) Executive’s
annual base salary as in effect as of the date of such termination, and (ii) 100%
of Executive’s Target Bonus for the year prior to the year in which the
termination occurs; and

 

(b)           provide to
Executive 100% Company-paid health, dental, vision and life insurance coverage
at the same level of coverage as was provided to Executive immediately prior to
the date of termination (the “Company-Paid Coverage”). If such coverage
included the Executive’s dependents immediately prior to the date of
termination, such dependents shall also be covered at the Company’s expense.
Company-Paid Coverage shall continue until the earlier of: (i) the end of
the 18th month following the month in which the date of termination occurred,
or (ii) the date that the Executive and his dependents become covered
under another employer’s group health, dental, vision and life insurance plans
that provide Executive and his dependents with comparable benefits and levels
of coverage.  For purposes of Title X of
the Consolidated Budget Reconciliation Act of 1985 (“COBRA”), the date of the “qualifying
event” for Executive and his dependents shall be the date upon which the
Company-Paid Coverage terminates.

 

4.5                               By
Executive Other Than For Good Reason. At any time after the Term Date,
Executive may terminate his employment, other than for Good Reason, by
providing the Company at least sixty (60) days’ advance written notice.  The Company shall have the option, in its
complete discretion, to make Executive’s termination effective at any time
prior to the end of such notice period. Should Executive terminate his
employment under this provision, the Company shall pay Executive all salary and
incentive compensation earned through the last day actually worked, plus an
amount equal to the base salary Executive would have earned through the balance
of the above notice period, not to exceed 60 days. Thereafter, except as set
forth herein, all of the Company’s obligations under this Agreement shall
cease.

 

4

 

4.6                               By
Change of Control.  Notwithstanding
Sections 4.1 — 4.5, if there is a Change of Control, payments to Executive upon
termination of employment shall be determined in accordance with this Section 4.6.

 

(a)                                  Involuntary
Termination other than for Cause, Death or Disability or Voluntary Termination
for Good Reason Within 12 Months Following A Change of Control.  If Executive’s
employment with the Company terminates within 12 months following a Change of
Control by virtue of (x) an involuntary termination by the Company other
than for Cause, (y) Executive’s death or Disability, or (z) a
voluntary termination for Good Reason within 90 days following the event
constituting Good Reason, and such termination constitutes a Separation from
Service, then the Company shall provide Executive with the following benefits:

 

(i)            Base Salary and Target Bonus Payment.
Within 30 days following such termination, pay Executive a lump sum equal to
three times the sum of (x) Executive’s annual base salary as in effect as
of the date of such termination, and (y) 100% of Executive’s Target Bonus
for the year prior to the year in which the payment occurs;

 

(ii)           Equity Compensation Vesting.
Immediately and fully vest Executive’s outstanding Stock Awards;

 

(iii)         COBRA and Life Insurance.
Provide to Executive, upon his termination of employment with the Company, with
Company-Paid Coverage (as defined in Section 4.4(b) above).  If such coverage included the Executive’s
dependents immediately prior to the date of termination, such dependents shall
also be covered at the Company’s expense. Company-Paid Coverage shall continue
until the earlier of (x) the end of the 18th month following the month in
which the date of termination occurred, or (y) the date that the Executive
and his dependents become covered under another employer’s group health,
dental, vision and life insurance plans that provide Executive and his
dependents with comparable benefits and levels of coverage. For purposes of
Title X of COBRA, the date of the “qualifying event” for Executive and his
dependents shall be the date upon which the Company-Paid Coverage terminates.

 

(b)                                  Voluntary
Resignation; Termination for Cause. If the Executive’s employment
terminates by reason of the Executive’s voluntary resignation (and is not a
voluntary termination for Good Reason), or if the Executive is terminated for
Cause, then the Executive shall not be entitled to receive severance or other
benefits except for those (if any) as may then be established under the Company’s
then existing severance and benefits plans or pursuant to other written
agreements with the Company, except that Executive shall receive the
Company-Paid Coverage if he remains employed with the Company for 12 months
following a Change of Control.

 

(c)                                  Termination
After the 12 Month Period Following a Change of Control. In the event the
Executive’s employment is terminated for any reason after the 12 month period
following a Change of Control, then the Executive shall be entitled to receive
severance and any other benefits only as may then be established under the
Company’s existing severance and benefits plans or pursuant to other written
agreements with the Company.

 

5

 

5.                                      TAXATION OF SEVERANCE BENEFITS.

 

In the event that
the benefits provided for in Section 4.6 of this Agreement or otherwise
payable to the Executive constitute “parachute payments” within the meaning of Section 280G
of the Internal Revenue Code of 1986, as amended (the “Code”), and will be
subject to the excise tax imposed by Section 4999 of the Code, then the
Company shall pay Executive an amount (“Gross-Up Payment”) such that after
payment by the Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including, without limitation, any income
taxes and excise tax imposed upon the Gross-Up Payment, the Executive retains
an amount of the Gross-Up Payment equal to the excise tax imposed upon the
Payments. Such Gross-Up Payment shall be paid to the Executive by the end of
the calendar year next following the calendar year in which the Executive or
the Company remits the excise tax imposed by Section 4999 of the
Code.  Unless the Company and Executive
otherwise agree in writing, any determination required under this Section 5
shall be made in writing by independent public accountants agreed to by the
Company and Executive(the “Accountants”), whose determination shall be
conclusive and binding upon Executive and the Company for all purposes. For
purposes of making the calculations required by this Section 5, the
Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. The Company
and Executive shall furnish to the Accountants such information and documents
as the Accountants may reasonably request in order to make a determination
under this Section 5. The Company shall bear all costs the Accountants may
reasonable incur in connection with any calculations contemplated by this Section 5.

 

6.                                      NO SOLICITATION/RAIDING OF
EMPLOYEES.

 

Executive acknowledges
and agrees that the Company has invested substantial time and effort in
assembling its staff.  Accordingly,
Executive agrees and covenants that, for a period of 18 months following the
termination of his employment with Company pursuant to Section 4.4, above,
Executive will not, directly or indirectly, attempt to recruit, induce or
solicit any employee to leave his/her employment with the Company.

 

7.                                      NON-DISCLOSURE.

 

Executive agrees to
maintain in strict confidence any confidential and proprietary information
pertaining to the business of the Company, its agents, representatives,
officers, staff and all related entities.

 

8.                                      CONSIDERATION FOR NO
SOLICITATION/RAIDING OF EMPLOYEES AND NON-DISCLOSURE.

 

In consideration of
Executive’s covenants and promises herein contained in Sections 6 and 7, and
notwithstanding any provision in the 2006 Incentive Award Plan (or any other
applicable equity incentive plan or agreement evidencing a Stock Award), 1/3 of
the shares subject to unvested Stock Awards held by Executive shall be vested
immediately upon the termination of his employment with the Company pursuant to
Section 4.4 above.  Executive shall
have until the first anniversary of the date of termination (or, if earlier,
the expiration of the full 

 

6

 

term of such Stock Award) to exercise any such Stock
Awards which are options or stock appreciation rights as to which the vesting
shall have been accelerated in accordance with this Section 8.

 

9.                                      SUCCESSORS.

 

9.1                               Company’s
Successors. Any successor to the Company (whether direct or indirect and
whether by purchase, merger, consolidation, liquidation or otherwise) to all or
substantially all of the Company’s business and/or assets shall assume the
obligations under this Agreement and agree expressly to perform the obligations
under this Agreement in the same manner and to the same extent as the Company
would be required to perform such obligations in the absence of a succession.
For all purposes under this Agreement, the term “Company” shall include any
successor to the Company’s business and/or assets which executes and delivers
the assumption agreement described in this Section 9.1 or which becomes
bound by the terms of this Agreement by operation of law.

 

9.2                               Executive’s
Successors. The terms of this Agreement and all rights of the Executive
hereunder shall inure to the benefit of, and be enforceable by, the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees.

 

10.                               NOTICES.

 

10.1                        General.
Notices and all other communications contemplated by Agreement shall be in
writing and shall be deemed to have been duly given when personally delivered,
one day following mailing via Federal Express or similar overnight courier
service, upon facsimile transmission, after confirmation of receipt of such
transmission, or as of five business days after deposit in the United States
mail in a sealed envelope, registered or certified, with postage prepaid. In
the case of the Executive, mailed notices shall be addressed to him at the home
address that he most recently communicated to the Company in writing. In the
case of the Company, mailed notices shall be addressed to its corporate
headquarters, and all notices shall be directed to the attention of its
Secretary.

 

10.2                        Notice
of Termination. Any termination by the Company for Cause or by Executive
pursuant to a Voluntary Termination for Good Reason shall be communicated by a
notice of termination to the other party hereto given in accordance with Section 10.1,
above, and after the period for cure, as required by Section 12, has been
provided. Such notice shall indicate the specific termination provision in this
Agreement relied upon, set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination under the provision so
indicated and specify the termination date, which shall be not more than 30
days after the giving of such notice. The failure by Executive to include in
the notice any fact or circumstance which contributes to a showing of a
voluntary termination for Good Reason shall not waive any right of Executive
hereunder or preclude Executive from asserting such fact or circumstance in
enforcing his rights hereunder.

 

7

 

11.                               MISCELLANEOUS PROVISIONS.

 

11.1                        No
Duty to Mitigate. Executive shall not be required to mitigate the value of
any benefits contemplated by the Agreement, nor shall any such benefits be
reduced by any earnings or benefits that Executive may receive from any other
source.

 

11.2                        Waiver.
No provision of this Agreement shall be modified, waived or discharged unless
the modification, waiver or discharge is agreed to in writing and signed by the
Executive and an authorized officer of the Company (other than Executive). No
waiver by either party of any breach of, or of compliance with, any condition
or provision of this Agreement by the other party shall be considered a waiver
of any other condition or provision or of the same condition or provision at
another time.

 

11.3                        Entire
Agreement. No agreements, representations or understandings whether oral or
written, express or implied) which are not expressly set forth or referenced in
this Agreement have been made or entered into by either party with respect to
the subject matter hereof. This Agreement represents the entire understanding
of the parties hereto with respect to the subject matter hereof.  To the extent the terms of this Agreement
conflict in any way with the terms of any other agreement between the Company
and the Executive, the terms of this Agreement shall control.  Effective upon the effective date hereof, the
Prior Agreement shall be terminated and of no further force or effect.

 

11.4                        Choice
of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California, with the
exception of its conflict of laws provisions.

 

11.5                        Severability.
The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other
provision hereof, which shall remain in full force and effect.

 

11.6                        Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same
document.

 

11.7                        Attorneys’
Fees. In the event of a controversy arising in connection with the
interpretation or enforcement of this Agreement, the prevailing party shall be
entitled to receive the cost of his or its reasonable attorney’s fees from the
non-prevailing party.

 

11.8                        Withholding.  All amounts and benefits payable pursuant to
this Agreement will be subject to withholding of applicable income and
employment taxes.

 

12.                               DEFINITIONS.

 

The following terms
referred to in this Agreement shall have the following meanings:

 

12.1                        Cause.
Termination shall be for “Cause” if:

 

8

 

(a)           Executive grossly
neglects significant duties he is required to perform or egregiously violates a
material written policy of the Company, other than as a result of incapacity
due to physical or mental illness, and, after (i) being warned in writing,
and (ii) having had a reasonable opportunity to cure (the length of such
cure period to be determined by taking into account the nature of the conduct
resulting in the warning, but in no event to be less than 30 days), continues
to grossly neglect such duties or egregiously violate the specified Company policy;

 

(b)           Executive commits a
material act of dishonesty or fraud; or

 

(c)           Executive is
convicted of any serious felony.

 

12.2                        Good
Reason. “Good Reason” means any one or more of the following events which
the Company fails to cure by the Company within the 30-day period immediately
following written notice from Executive to the Company of the occurrence of
such event:

 

(a)           a significant
reduction in Executive’s title, authority, duties or reporting relationships;
provided, however, that “Good Reason” shall not exist merely by reason of a
Change of Control to the extent that after such Change of Control, Executive is
the Chief Executive Officer of the Company;

 

(b)           without Executive’s
express written consent, the relocation of Executive’s principal place of employment
to a location more than 30 miles from Executive’s current residence;

 

(c)           any failure by the
Company or its affiliates to pay, or any reduction by the Company or its
affiliates of, Executive’s base salary, incentive compensation, equity compensation
or benefits received by Executive (prior to any Change of Control if Section 4.6
is applicable).

 

12.3                        Other
than for Cause. Involuntary termination shall be “other than for Cause”
unless Executive is terminated for engaging in conduct described in Section 12.1.

 

12.4                        Change
of Control. “Change of Control” means:

 

(a)           the sale, lease,
conveyance or other disposition of all or substantially all of the Company’s
assets as an entirety or substantially as an entirety to any person, entity or
group of persons acting in concert;

 

(b)           any transaction or
series of related transactions that results in any Person (as defined in Section 13(h)(8)(E) under
the Securities Exchange Act of 1934) becoming the beneficial owner (as defined
in Rule 13d-3 under the Securities Exchange Act of 1934), directly or
indirectly, of more than 45% of the aggregate voting power of all classes of
common equity of the Company, except if such Person is (i) a subsidiary of
the Company, (ii) an employee stock ownership plan for employees of the
Company or (iii) a company formed to hold the Company’s common equity
securities and whose shareholders constituted, at the time such company became
such holding company, substantially all the shareholders of the Company;

 

9

 

(c)           a change in the
composition of the Board occurring within a two-year period, as a result of
which fewer than a majority of the directors are Incumbent Directors. “Incumbent
Directors” shall mean directors who either (i) are directors of the
Company as of the date hereof, or (ii) are elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of the
Incumbent Directors at the time of such election or nomination (but shall not
include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the
Company;

 

(d)           the consummation of
a merger or consolidation of the Company with any other corporation other than
a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity) at least 55% of the total voting power represented by the
voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation.

 

12.5                        Separation
from Service.  “Separation from
Service” means a termination of Executive’s employment with the Company which
constitutes a separation from service within the meaning of Section 409A
of the Code and the regulations promulgated thereunder, including Treasury
Regulation Section 1.409A-1(h).

 

12.6                        Stock
Award. “Stock Award” means all stock options, restricted stock and such
other awards granted pursuant to the Company’s stock option and equity
incentive award plans or agreements and any shares of stock issued upon
exercise thereof.

 

13.          SECTION 409A.

 

Notwithstanding any
provision to the contrary in the Agreement, if Executive is deemed by the
Company at the time of his Separation from Service to be a “specified employee”
for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent
delayed commencement of any portion of the termination benefits to which
Executive is entitled under this Agreement is required in order to avoid a
prohibited distribution under Section 409A(a)(2)(B)(i) of the Code,
such portion of Executive’s termination benefits shall not be provided to
Executive prior to the earlier of (a) the expiration of the six-month
period measured from the date of the Executive’s Separation from Service with
the Company or (b) the date of Executive’s death.  Upon the first business day following the
expiration of the applicable Code Section 409A(a)(2)(B)(i) deferral
period, all payments deferred pursuant to this Section 13 shall be paid in
a lump sum to the Executive (or his estate), and any remaining payments due
under the Agreement shall be paid as otherwise provided herein.  To the extent that any reimbursements payable
pursuant to this Agreement are subject to the provisions of Section 409A
of the Code, any reimbursements payable to Executive (or his estate) shall be
paid no later than December 31 of the year following the year in which the
cost was incurred, the amount of expenses reimbursed in one year shall not
affect the amount eligible for reimbursement in any subsequent year, and
Executive right to reimbursement under this Agreement will not be subject to
liquidation or exchange for another benefit.

 

10

 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by its duly authorized officer, as of the day and year
set forth below.

 

 

	
   

  	
  THOMAS
  W. STEIPP

  
	
   

  	
   

  
	
   

  	
  /s/ Thomas W. Steipp

  
	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  October 30, 2008

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SYMMETRICOM,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bill Minor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bill Minor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Vice President, Global
  Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  October 30, 2008

  
							

 

11

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