Document:

Exhibit
10.B.20

April 17, 2006

Jon Rubinstein

J.R. Ruby Consulting Corp.

611 Washington Street Suite 2104

San Francisco, CA  94111

Re:                             Consulting
Services for Apple Computer, Inc. (“Apple”)

Dear Jon:

This will confirm that
following your resignation from Apple effective April 14, 2006, Apple has asked
you through your company J.R. Ruby Consulting Corp., a California corporation,
to perform certain consulting services, and that you have agreed to perform
such services (collectively, the “Services”), as and when requested by Apple,
all as set forth in this letter (the “Agreement”).  In general, the Services may consist of
advice regarding the design and development of personal computers, digital
music players, and cell phone devices, and related intellectual property
matters, as agreed between you and Steve Jobs or his designees from time to
time.

You agree to make
yourself available to perform the Services for up to 20% of general weekly
business hours (an average of one business day per week), as mutually scheduled.  You may also be requested to prepare and
provide to Apple certain Work Product (as defined below).  You expressly acknowledge and agree that the
Services, together with any Work Product, are intended to be used for Apple’s
benefit, to assist Apple in the conduct of its business.  Apple will have the right to use, reproduce
and adapt any such Work Product for that purpose.

By signing this
Agreement, you expressly acknowledge and agree that Apple:  (1) is not obligated to request any Services
from you pursuant to this Agreement, (2) has not guaranteed any level of
Services under this Agreement whatsoever, (3) may request you to perform any of
the Services or no Services, in Apple’s sole and absolute discretion.  (4) may procure similar or identical Services
from others, and (4) may also internally develop similar or identical Services
or Work Product.

In connection with your
performance of the Services, you are an independent contractor, and you have
represented the same to Apple.  You
understand and agree that you are not an employee of Apple, that you are
ineligible for any Apple employee benefits under this Agreement, and that no
employment relationship is created by this Agreement.

You will use your own
discretion in performing the Services and will in all respects control the
means and manner of your performance, subject to the express condition that you
will at all times comply with all applicable laws and Apple policies applicable
to the Services provided hereunder (such as business conduct policies).  You will supply all facilities, equipment and
supplies necessary for performance of the Services at no additional cost to
Apple, provided that Apple in its discretion may make a temporary office and
computer systems available to you at its headquarters in connection with your
providing the requested Services.  You
will not offer or give Apple, or any Apple subsidiary or affiliate, or any of
their respective employees or

 

agents, any gratuity, payment or other personal
benefit or inducement with a view toward securing business from Apple or
influencing the terms, conditions or performance of any Services under this
Agreement.

As material consideration
for Apple’s execution of this Agreement, you expressly acknowledge and agree
that (1) any nonpublic information you obtain in the course of performing the
Services under this Agreement, and any nonpublic information you obtained
during the term of your employment with Apple, with respect to potential, past
and current products and services of Apple (collectively, “Products”) shall be
deemed “Confidential Information” as that term is defined below, (2) you are
bound by the terms of the confidentiality and intellectual property agreements
you signed when you joined Apple with respect to all Confidential Information
you learned while you were employed by Apple, and (3) you will not at any time
during the term of this Agreement, directly or indirectly, solicit, entice,
request, divert, recruit or induce any current employee to leave Apple’s employ
or otherwise terminate that person’s relationship with Apple.  You further agree that during the term of
this Agreement, you will not become or be employed, directly or indirectly, by,
nor will you provide consulting services to, any of Intel Corporation, Dell
Inc., Hewlett-Packard Company, Sony Corporation, Motorola Inc., Nokia
Corporation, Samsung Group, Microsoft Corporation, or any other company that is
working on a final product that is a personal computer, digital music player,
or cell phone device, unless otherwise approved in advance by Apple in its sole
discretion.  You agree to provide
sufficient written disclosure of the nature of the employment or consulting
services you wish to render to any such entity so that Apple can evaluate your
requested waiver of this provision. 
Apple acknowledges that your service as a board member of Immersion
Corporation is outside the scope this non-compete.

The following terms and
conditions will govern your performance of the Services under this Agreement:

Term.  The term of this Agreement will begin at
12:01 A.M., Pacific Time, on April 17, 2006 and will continue for twelve months
thereafter until April 16, 2007.  The
parties may by mutual written agreement terminate this Agreement prior to the
expiration of the one-year term.

Fees and Expenses.  Apple will pay you a flat fee of $200,000 for
your performance of the Services during the term of this Agreement.  Such fee shall be payable in equal quarterly
installments of $50,000 within 45 days after the end of each calendar quarter,
upon receipt of your invoice for that quarter’s fee.

Apple will also reimburse
you for all actual and reasonable out-of-pocket travel and accommodation
expenses you incur in connection with your performance of the Services,
provided such expenses have been approved in advance by Steve Jobs, Peter
Oppenheimer, or their designees.  In
order to be reimbursed for any such expenses, you must present us with an
original itemized invoice for such amount. 
All such amounts will be due and payable net forty-five (45) days from
our receipt of the invoice.  If we
disagree with or dispute any expense or any amount on any invoice, we will
advise you promptly and will work with you diligently and in

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good faith to resolve any such dispute.  Apple will have no obligation to reimburse
you for any expenses submitted to us more than sixty (60) days after the
expense is incurred.

Except as set
forth above, Apple will have no obligation to pay or reimburse you for any
other amount with respect to your performance of the Services, and by your
execution of this Agreement, below, you acknowledge that the foregoing sets
forth our entire agreement with respect to compensation for your performance of
the Services.  You are obligated for any
taxes payable by or imposed upon you with respect to any amounts paid to you
under this Agreement, and Apple will have no obligation to withhold any such
taxes from amounts due to you under this Agreement.

Work Product.  (a) To the extent that you produce any
materials in performing the Services, including (but not limited to) notes,
reports, memoranda, analyses, documentation, drawings, computer programs
(source code, object code and listings), derivatives of pre-existing
copyrighted works which you claim, candidate, potential employee, consultant, customer
or prospect lists, inventions conceived or reduced to practice during your
performance of the Services or resulting from or based upon any Apple
Proprietary Information (defined below), creations, designs, trademarks, works
of any kind (including, by way of example only, movies and audio or visual
works), devices, masks, models, work-in-process, and deliverables, all such
materials shall be deemed Work Product. 
Apple will retain ownership of all intellectual property rights (such as
copyrights and trade secrets) in or to any information and/or materials that
Apple supplies to you, or that Apple develops in connection with this Agreement
(“Apple’s Materials”).

(b)                                 All
Work Product produced by you in the course of performing the Services pursuant
to this Agreement shall belong to Apple. 
However, you shall exclusively own any intellectual property rights
(such as copyrights and trade secrets) (i) owned by you prior to the
commencement of Services or (ii) developed or acquired by you independent of
the Services provided under this Agreement, if such intellectual property
rights are incorporated into any Work Product provided, however, that your
rights to these intellectual property rights will not extend to (i) any portion
of Apple’s Materials incorporated into any Work Product, or (ii) to any
information specific to any Products or Apple’s business operations.

(c)                                  You
agree to assign and do hereby expressly assign to Apple all right, title, and
interest in and to the Work Product including any and all moral rights you may
have in any part of the Work Product. 
You also hereby forever waive and agree never to assert any and all
moral rights you may have in any part of the Work Product even after
termination this Agreement.

During and after the term
of this Agreement, you will assist Apple in every reasonable way, at Apple’s
expense, to secure, maintain and defend for Apple’s benefit all copyrights,
patent rights, mask work rights, trade secret rights and other proprietary
rights in and to the Work Product.  You
will promptly notify Apple of any and all inventions conceived or reduced to
practice in the performance of any Services under this Agreement.

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Confidentiality.  You agree that the terms and conditions of
the Apple Computer, Inc. Intellectual Property Agreement executed by you on
February 3, 1997 and attached hereto as Exhibit A (the “IPA”) shall remain in
effect during the term of this Agreement and shall continue to govern your
receipt, use and disclosure of “Proprietary Information” (as defined in the
IPA).  Apple’s right to equitable relief
for your breach of the IPA shall be as specified in Section 5 of the IPA.  Section 3.0(a) of the IPA shall be of no
effect since you are no longer an employee of Apple.

Indemnification.  You agree to be responsible for your own
actions.  You agree to indemnify and hold
harmless Apple and its directors, officers, employees and agents from and
against all claims and losses of any type, including reasonable attorneys’
fees, in connection with, in whole or in part: 
(i) any negligent act or omission by, or any willful misconduct on the
part of, you in the performance of this Agreement; or (ii) your failure to
comply with any applicable Federal, state or local law.

(b)                                 EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, UNDER NO CIRCUMSTANCES, INCLUDING
NEGLIGENCE, SHALL EITHER PARTY HEREUNDER BE LIABLE FOR ANY INDIRECT,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES INCURRED OR SUFFERED BY THE OTHER
PARTY ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING WITHOUT
LIMITATION LOST REVENUE, LOSS OF INCOME, OR LOSS OF BUSINESS ADVANTAGE, EVEN IF
THE PARTY SUFFERING SUCH DAMAGES, OR AN AUTHORIZED REPRESENTATIVE OF SUCH
PARTY, HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Assignment.  You agree that you will not subcontract,
delegate, assign or otherwise engage the services of any subcontractor to
perform any portion of the Services under this Agreement without the express
prior written consent of Apple, which Apple may grant or withhold in its sole
discretion.  Subject to the foregoing
sentence, the rights and obligations of Apple and you under this Agreement
shall be binding upon and inure to the benefit of the parties’ respective
successors, executors and administrators, as the case may be.

Attorneys’ Fees.  If any action or proceeding, whether
regulatory, administrative, at law or in equity, is commenced or instituted to
enforce or interpret any of the terms and provisions of this Agreement, the
prevailing party in any such action or proceeding shall be entitled to recover
its reasonable attorneys’ fees, expert witness fees, costs of suit, and
expenses, in addition to any other relief to which such prevailing party may be
entitled.

Notices.  Any notice required or permitted hereunder
shall in writing, and shall be given to you at the address first set forth
above, and to Apple at 1 Infinite Loop, Cupertino, California 95014,
Attention:  General Counsel, or at such
other address as the party may hereafter specify in writing.  Such notice shall be deemed given:  upon personal delivery to the appropriate
address; or three (3) business days after the date of mailing if sent by
certified or registered mail; or one (1) business day after the date of
deposit with a commercial courier service offering next business day service
with confirmation of delivery.

 4
 

 

Complete
Understanding; Modification. 
This Agreement constitutes the full and complete understanding and
agreement between you and Apple relating to your performance of the Services,
and supersedes all prior understandings and agreements relating to such subject
matter.  Any waiver, modification or
amendment of any provision of this Agreement shall be effective only if in
writing and signed by you and an authorized representative of Apple.  The provisions of this Agreement shall
prevail over any conflicting provisions in any purchase order, acceptance
notice or other document generated by either of us except as expressly provided
in the preceding sentence.

Interpretation.  This Agreement has been negotiated by you and
Apple with advice, if desired, from our respective counsel.  This Agreement will be fairly interpreted in
accordance with its terms and without any strict construction in favor of or
against either party.  The headings and
captions herein are included for reference purposes only and shall not affect
the interpretation of the provisions hereof. 
When used herein, the word “including” will not be construed as
limiting.  This Agreement shall be read
with all changes of gender and number required by the context.  If any provision of this Agreement is found
by a court of competent jurisdiction to be unenforceable for any reason, the
remainder of this Agreement shall continue in full force and effect to the
maximum extent permitted by law.

Jurisdiction;
Venue; Dispute Resolution. 
This Agreement is governed by the laws of the State of California,
without regard to its conflict of laws principles.  Both Apple and you hereby consent to venue in
and the exclusive jurisdiction of the state and federal courts located in Santa
Clara County, California.  Any
controversy or claim arising out of or relating to the Services which cannot be
resolved by good faith discussions between us may be submitted to voluntary
non-binding mediation at the request of either of us, with each of us bearing
our own costs of such mediation and one-half the costs of the mediator (who
shall be acceptable to each of us).  If
mediation is not successful within a reasonable period of time, then either of
us can pursue any remedy available or appropriate, including litigation;
provided that Apple will be free to seek equitable relief for any breach by you
of the confidentiality obligations of this Agreement without first seeking to
resolve such matter pursuant to the provisions of this paragraph.

Survival of Terms.  Those provisions of this Agreement that, by
their nature, are intended to survive any expiration or termination of this
Agreement shall so survive.

Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

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If the foregoing
accurately sets forth your agreement with respect to your performance of the
Services, please sign the enclosed copy of this letter and return it to me.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  APPLE COMPUTER, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Danielle Lambert

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
    VP, HR

  	
   

  
	
   

  
	
   

  
	
  ACCEPTED AND AGREED

  
	
   

  
	
  J. R. Ruby Consulting Corp

  
	
   

  
	
  By:

  	
     /s/ Jon Rubinstein

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
     President

  	
   

  
						

 

 6Exhibit
10.1

December 26, 2006

[Name and Address of Officer/Director]

 

Dear [Name of Officer/Director]:

As you are aware, Sonus is reviewing its option grant
practices to determine whether the Company properly calculated the stock
compensation expense charges associated with those option grants.  Although our review is not yet complete, we
have determined that it appears likely that for certain options, the
measurement date used to prepare its historical financial statements will be
found to differ from the appropriate measurement date as determined for
accounting purposes.  While those options
had an exercise price that was equal to the fair market value of the Company’s
stock on the originally used measurement date, the exercise price may be less
than the fair market value of the stock on the re-determined measurement
date.  As a result, the Company would be
required to record compensation expense related to such stock option
grants.  We do not expect to complete our
review of these issues until after December 31, 2006.

Sonus is also considering the federal income tax
consequences that may arise should we conclude that the previously used
measurement date for certain options is not the appropriate measurement
date.  Recent changes to the U.S. tax
laws related to deferred compensation may result in adverse tax consequences to
you with respect to certain of your options listed on Schedule A
attached hereto or other options you have received that are not included on
Schedule A (the “Options”) unless you consent by December 31, 2006 to the
amendment of those Options to increase the exercise price to the fair market
value on the re-determined measurement date, in the manner and to the extent
described below.  You should read this
letter thoroughly and discuss the issues with your tax advisor.

Why may my Options
need to be amended?

In October 2004, Congress enacted Section 409A of the
Internal Revenue Code, which implements rigorous documentary and operational
rules related to nonqualified deferred compensation and imposes steep penalties
on U.S. individual income taxpayers for failure to comply with the new
law.  Stock options that have an exercise
price that is less than the fair market value of the stock on the date of grant
are subject to Section 409A.

If any of your Options are determined to have a
different measurement date than we originally used, and the exercise price of
the Option is less than the fair market value

 

of our stock on the re-determined date, you may be
subject to adverse tax consequences unless you agree to amend those Options as
described below.  Pursuant to transition
rules established by the Internal Revenue Service, such amendment must take
place no later than December 31, 2006. 
Because the results of our review may not be complete by December 31 of
this year, we are offering you the opportunity to irrevocably agree now that
the exercise price of your Options will be increased to the extent that it is
less than the fair market value of our stock on a re-determined measurement
date.

What amendment will
be made to my Options?

We are offering you the opportunity to irrevocably
agree that if the restated financial statements of Sonus included as part of
any amended Form 10-K filed with the Securities and Exchange Commission
(or any similar periodic SEC filing) after the date hereof include an
adjustment to the Company’s compensation expense with respect to any of your
Options, and such adjustment results from the fair market value of our common
stock on a re-determined measurement date being greater than your exercise
price, then with respect to any such Option, the exercise price will be
increased to be equal to the fair market value of our stock on the
re-determined date.

By agreeing to the amendment, you must agree that you
will not exercise your Options prior to the time that Sonus notifies you
whether there has been a re-determination of the measurement date with respect
to your Options.

When will Sonus
tell me whether the measurement date with respect to any of my Options has been
re-determined?

The Company will inform you of any re-determination of
the measurement date of any of your Options promptly after its filing an
amended Form 10-K (or similar periodic SEC filing) with the Securities and
Exchange Commission that reflects compensation expense with respect to any such
Option.

Will all of my
options need to be amended?

No, although it may be determined that some of your
options were granted at a discount from the original measurement date value,
they could be “grandfathered” from the new tax rules under Section 409A.  The effective date of the new tax rules is
January 1, 2005; therefore, options that vested prior to January 1, 2005 do not
need to be amended. All of the Options you have received could be affected by
the amendment.

Does my election
need to be completed by December 31, 2006 or 2007?

The Internal Revenue Service issued transition rules
governing the implementation of the new tax rules that extended the opportunity
for compliance from 2005 to 2006.  This
transition relief was again extended until December 31, 2007 for some
taxpayers.  However, the 2007 extension
specifically precludes its use for

 2
 

 

discounted options for certain persons.  Although IRS Notice 2006-79 will give most of
our employees until the end of 2007 to amend their options if necessary, it
specifically precludes “Section 16” persons from taking advantage of this
extended compliance date.  Therefore, you
will need to amend your Options by December 31, 2006, or you may be subject to
adverse tax consequences under Section 409A.

Are you proposing
to make any other amendments to my Options?

No.  Your
Options will continue to be governed by the Sonus stock plan under which they
were granted and your applicable option agreements.  All of your rights, and Sonus’ rights, with respect
to the Options will continue to be as set forth in the plan and agreement,
except as provided in this letter and the attached consent form.

Are there any
negative consequences to me of agreeing to the amendment?

If you agree to the amendment, the exercise price of
some or all of your Options may be increased. 
Moreover, the exercise price will be increased even if the value of our
common stock is currently, or subsequently falls below, that value.

In addition, even if you agree to an amendment to your
Options, there can be no assurance that the Internal Revenue Service (i) will
agree that the amendment set forth herein is sufficient to comply with the
transition rules under Section 409A and (ii) will not assert that the
measurement date is different than the date as we determine it.  As a result, the adverse tax consequences of
Section 409A may nevertheless apply to your Options. However, if you do
not agree to amend your Options, you may be subject to the adverse tax
treatment under Section 409A described below in the event of a re-determined
measurement date with respect to any of such Options.

Will Sonus
compensate me for the increase in the exercise price on my Options?

Yes. Sonus will either pay you in cash in 2008 (or
later, as and when the underlying Options vest that have had an increase in
exercise price), or pay you in restricted stock in 2007, with the choice of
payment remaining in the Company’s discretion. 
The payment for an impacted Option, whether in cash or stock, will be
calculated based on the difference between the original exercise price of the
Option and the increased exercise price based on the change in measurement date
multiplied by the number of shares in the Option. A payment will only be made
if you agree to amend your Options in the manner set forth above. Your right to
the cash or the restricted stock, as the case may be, will vest on January 1,
2008, if it is paid with respect to Options that have vested in 2007 or
earlier.  If such cash or restricted
stock is paid to you with respect to Options that have not vested by January 1,
2008, then these rights will vest as and when the underlying Options vest, and
the cash, if any, will be paid at such time. Whether we pay you in cash or
stock, the amount of the cash or the fair market value of any stock paid to
you, as the case may be, will be income to you for tax purposes when we pay the
cash or when the stock vests.  Sonus will
comply with all applicable wage withholding and reporting obligations with
respect to such amounts that are paid to you. 
Please note

 3
 

 

that the delay in payment or vesting until 2008 is
necessary to comply with IRS transition rules under Section 409A.

What happens if I
do not agree to amend my Options?

If you do not agree to amend your Options in the
manner set forth above, then your Options will remain outstanding and will be
subject to the same terms and conditions as are currently in effect.  If you do not agree to amend your Options
pursuant to this offer, you will not be compensated as set forth above. Also,
if you do not agree to amend your Options pursuant to this offer, you may be
subject to adverse taxation under Section 409A in the event of a re-determined
measurement date with respect to any of such Options.  On November 30, 2006, IRS issued Notice
2006-100, which set forth the following interim guidance concerning Section
409A consequences:

·                  For discounted
options that vested in 2005 and that continued to be held on December 31, 2005,
you would be required to include in income for 2005 an amount equal to the
excess of the fair market value of the underlying stock on December 31, 2005
over (i) the exercise price and (ii) any amount paid for the option.  This option spread is subject to regular
income and employment taxes, plus a 20 percent penalty tax and interest under
Section 409A.

·                  For discounted
options that vested in 2005 or 2006 and that continue to be held on December
31, 2006, you would be required to include in income for 2006 an amount equal
to the excess of the fair market value of the underlying stock on December 31,
2006 over (i) the exercise price, (ii) any amount paid for the option and (iii)
any amount previously included in income with respect to such discounted option
(for example, any option spread with respect to the option required to be
included in income in 2005).  This option
spread is subject to regular income and employment taxes, plus a 20 percent
penalty tax and interest under Section 409A.

Please note that for
discounted options that vest on or after January 1, 2005 similar inclusions and
Section 409A penalties and interest will be required in all future years in
which vested options are outstanding at the end of the year, until the time of
exercise or expiration of the discounted option, unless the IRS adopts a
different approach in final guidance with respect to these rules.

Please further note that
Sonus intends to comply with all reporting and withholding requirements under
Section 409A, including any such requirements established by the Internal
Revenue Service after the date hereof. 
Sonus will require you to satisfy any of your tax liabilities as a
result of these withholding rules.

The Section 409A transition rules that permit the
proposed amendment expire on December 31, 2006. 
As a result, there will be no future opportunity to amend your Options
to avoid the application of Section 409A.

 4
 

 

What do I need to
do to amend my Options?

If you want to irrevocably amend your Options, you
need to sign the attached consent form, acknowledging your understanding of,
and agreement with, the amendment to your Options.  The consent form must be signed and returned
to Charles Gray, Vice President and General Counsel no later than December 27,
2006.  Your agreement will be effective
upon our receipt of your signed consent. 
You may not revoke your consent.

If I agree to amend
my options, am I free from any negative tax consequence due to Section 409A?

As noted above, Sonus cannot guarantee the ultimate
outcome of this issue nor can it provide you with personal tax advice.  You should consult with your personal tax
advisor.

In addition, the transition rules of Section 409A
require your non-grandfathered options be corrected in a permissible
manner.  As such, if you have already
exercised some non-grandfathered options since December 31, 2004, you may have
already subjected yourself to a violation and you may be subject to Section
409A’s penalties.  You should consult
your tax advisor.

What if I have more
questions?

If you have additional questions, you can contact
Chris Colonero, or our tax counsel Bob Stack of WilmerHale at
202-663-6272.  However, the amendment is
being made for tax reasons and tax matters are very complicated.  We therefore encourage you to talk to your
personal tax advisor regarding whether you should consent to the proposed
amendment of your Options.

Sincerely,

 

Charles J. Gray

Vice President and General Counsel

 5
 

 

CONSENT FORM

PLEASE CHECK ONE BOX ONLY AND SIGN
BELOW

o   Consent
to Amendment.  I have read the
memorandum dated December 26, 2006 to me from Sonus.  I hereby irrevocably agree as of the date
hereof that if the restated financial statements of Sonus included as part of
any amended Form 10K filed with the Securities and Exchange Commission (or any
similar periodic SEC filing) after the date hereof include an adjustment to
Sonus’ compensation expense with respect to any of my Options, and such
adjustment results from the fair market value of our common stock on a
re-determined measurement date being greater than my exercise price, then with
respect to any such option, the exercise price of the option will be increased
to be equal to the fair market value of our stock on the re-determined
measurement date.

I understand and agree that:

·                  the amendment is
effective regardless of how high the fair market value of the stock is on the
re-determined measurement date;

·                  the amendment to
the stock options in no way provides me with any additional rights with respect
to my options;

·                  I may not
exercise any of the Options prior to the time that Sonus notifies me whether
there has been a re-determination of the measurement date with respect to any
of such options;

·                  my stock options
will remain subject to the terms of the plan under which they were granted and
my option agreements, except as provided in this Consent Form;

·                  Sonus shall have
no liability to me or any other party for any tax obligations arising with
respect to my stock options, whether imposed under Section 409A of the
Internal Revenue Code or otherwise;

·                  Sonus will
either make cash payment to me in 2008 (or later, as and when the underlying
options vest that have had an increase in exercise price), or pay me in
restricted stock in 2007, with the choice of payment remaining in the Company’s
discretion. The payment for an impacted Option, whether in cash or stock, will
be calculated based on the difference between the original exercise price of
the Option and the increased exercise price based on the change in measurement
date multiplied by the number of shares in the Option. My right to the cash or
the restricted stock, as the case may be, will vest on January 1, 2008, if it
is paid with respect to options that have vested in 2007 or earlier.  If such cash or restricted stock is paid to
me with respect to options that have not vested by January 1, 2008, then these
rights will vest as and when the underlying options vest, and the cash, if any,
will be paid at such time.

 6
 

 

o   No
Consent to Amendment.  I have read
the memorandum dated December 26, 2006 to me from Sonus.  I do NOT agree to any adjustment to the
exercise price of my stock options.  My
election is effective regardless of whether the restated financial statements
of Sonus included as part of any amended Form 10K filed with the Securities and
Exchange Commission (or any similar periodic SEC filing) after the date hereof
include an adjustment to Sonus’ compensation expense with respect to any of my
Options

I understand and agree that:

·                  the exercise
prices of my stock options will remain as is;

·                  my stock options
will remain subject to the terms of the plan under which they were granted and
my option agreements;

·                  Sonus may be
required to withhold income and employment taxes as my stock options vest or
otherwise in accordance with Section 409A of the Internal Revenue Code and
other applicable tax laws, and that Sonus intends to comply with all reporting
and withholding requirements under Section 409A, including any such
requirements established by the Internal Revenue Service after the date
hereof.  I understand that Sonus will
require me to satisfy any of my tax obligations under these withholding rules;

·                  I may be subject
to the 20% penalty tax and interest imposed under Section 409A as and when my
options vest on the amount of income determined under Section 409A; and

·                  Sonus shall have
no liability to me or any other party for any tax obligations arising with
respect to my stock options, whether imposed under Section 409A or
otherwise.

·                  If I do not
agree to amend my Options pursuant to this offer, I understand that I will not
be compensated as set forth above.

 

	
   

  	
  Very truly yours

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Sign Name 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date

  

 

 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]