Document:

exv10w35

 

EXHIBIT 10.35

AMENDMENT

     This Amendment (the “Amendment”) to that certain Employment Agreement dated July 22, 2005 (the
“Employment Agreement”) by and between Mark Richman (the “Employee”) and Terayon Communication
Systems, Inc., a Delaware corporation (the “Company”), is entered into by and between the Employee
and the Company on May 10, 2007. Capitalized terms used in this Amendment that are not otherwise
defined herein shall have the respective meanings set forth in the Employment Agreement.

     Whereas, the Employment Agreement provides for, among other provisions, the payment
of severance to the Employee upon an Involuntary Termination that includes an amount equal to a
multiple of the greater of (i) the Employee’s annual performance bonus (excluding any one-time
retention or hiring bonuses) for the most recent calendar year completed prior to the effective
date on which the Employee’s employment is terminated or (ii) the Employee’s target performance
bonus in effect for the year in which the Employee’s employment is terminated; and

     Whereas, the Company has elected to defer the adoption of the Company’s 2007
Corporate Bonus Program and 2007 Section 16 Officer Plan (collectively, the “Bonus Plans”) at the
request of Motorola, Inc., a Delaware corporation (“Parent”), in connection with that certain
Merger Agreement, dated as of April 21, 2007 (the “Merger Agreement”), by and among the Company,
Parent and Motorola GTG Subsidiary VI Corp., a Delaware corporation and wholly-owned subsidiary of
Parent (“Merger Sub”), and the transactions contemplated thereby, including, among other things,
the merger of Merger Sub with and into Company, with the Company continuing as a surviving
corporation and wholly-owned subsidiary of Parent (the “Merger”); and

     Whereas, the Company has determined that deferral of the adoption of the Bonus Plans
may adversely impact the formulation used to calculate severance payable under the Employment
Agreement in the event of an Involuntary Termination, and to preserve the original intent of the
Employment Agreement as described in the first recital to this Amendment, the Company now finds it
in the best interests of the Company to amend such formulation on the terms set forth in this
Amendment; and

     Whereas, the Company and the Employee intend that this Amendment be conditioned upon,
and effective immediately prior to, the consummation of the Merger; and

     Whereas, the Employee is agreeable to the Amendment and now wishes to manifest his
consent to the Amendment.

     NOW, THEREFORE, in consideration of the foregoing and for good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the
Employee agree as follows:

 

 

I. Amendments to Employment Agreement. The Employment Agreement is hereby amended in the following
respects:

     A. Section 6(b)(ii) of the Employment Agreement is hereby deleted in its entirety and replaced
and superseded by the following:

“(ii) the greater of (A) the Employee’s annual performance bonus (excluding any
one-time retention or hiring bonuses) paid with respect to calendar year 2006 or (B)
the 2007 Target Bonus Amount.”

     B. The following newly created defined term is hereby incorporated into the Employment
Agreement as Section 11(a) thereto:

“(a) Definition of ‘2007 Target Bonus Amount.’ For purposes of Section 6(b) and
Section 6(c) hereof, “2007 Target Bonus Amount” shall mean:

An amount equal to 75 percent of the Employee’s Base Salary that is in effect for
the calendar year 2007.” For the avoidance of doubt, the 2007 Target Bonus Amount
shall mean $225,000.

     C. Prior to giving effect to this Amendment, the section of the Employment Agreement
identified as Section 11(a) of the Agreement, and each other section of the Employment Agreement
that is affected by the Amendment (the “Former Section Numbers”), shall be amended to reflect a new
section number, and all other sections of the Employment Agreement making reference to the Former
Section Numbers shall be revised accordingly to give effect to this Amendment.

II. Effectiveness of Amendment. The Company and the Employee hereby acknowledge and agree that the
Amendment is conditioned upon, and shall not become effective until immediately prior to, the
consummation of the Merger. In the event that the Merger Agreement is terminated in accordance
with its terms, the Company and the Employee hereby agree that this Amendment shall terminate
effective as of the date of such termination and without any further action of the parties hereto,
and neither party shall have any liability to the other with respect to the provisions contained
herein.

III. Employee’s Consent. The Employee hereby acknowledges, is agreeable to and hereby consents to
the amendments to the Employment Agreement contemplated by this Amendment.

IV. Scope of Amendment. Except and only to the extent specifically contemplated herein, all of the
terms and conditions of the Employment Agreement are hereby ratified and confirmed and shall remain
in full force and effect. In case of any conflict or inconsistency between the provisions of this
Amendment and the Employment Agreement, this Amendment shall control. This Amendment may be
executed in multiple counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF, each of the parties has executed this Amendment, in the case of the
Company by its duly authorized officer, as of the day and year first above written.

	 	 	 	 	 
	 	/s/ Mark Richman 	 
	 	Mark Richman	 
	 
	 	TERAYON COMMUNICATION SYSTEMS, INC.

 	 
	 	By:  	/s/
Jerry Chase 	 
	 	 	Name:  	Jerry
Chase 	 
	 	 	Title:  	Chief Executive Officerexv10w1

 

Exhibit 10.1   

May 9, 2007

Jay Zager

[PERSONAL INFORMATION OMITTED]

Dear Jay:

It is my pleasure to extend to you an offer of employment with 3Com Corporation (“3Com” or the
“Company”) as Executive Vice President and Chief Financial Officer of the Company. You will work
out of the Company’s Marlborough office, reporting directly to Edgar Masri, President and Chief
Executive Officer. Your expected start date is to be mutually agreed upon. Subject to the
approval of the 3Com Board of Directors, the Company expects to designate you as a Section 16
officer of 3Com, and thus you would be subject to the reporting requirements of Section 16 of the
U.S. Securities Exchange Act of 1934 and the regulations relating thereto.

Your annualized base salary will be $400,000, paid bi-weekly in accordance with the Company’s
regular payroll practices and subject to applicable taxes and withholding. You will be eligible to
participate in the Company’s discretionary bonus program, 3Bonus. Your 3Bonus target amount will
be 65% of your base salary, payable semi-annually. Payments under the 3Bonus plan are
discretionary and are based on various factors, including Company and individual performance. The
Company reserves the right to amend, modify and/or terminate the 3Bonus program and other incentive
compensation programs at its discretion, subject to all applicable laws and regulations.

3Com also offers a competitive complement of benefits. You will be eligible to accrue 20 days of
Paid Time Off per year, subject to the terms and conditions of the Company’s Paid Time Off policy.
3Com also has eleven (11) Company-recognized/assigned paid holidays and provides employees with up
to two (2) personal floating holidays, subject to the terms of the 3Com Holiday Policy. In
addition, you will be eligible to participate in the Company’s standard benefit plans, including
Company-sponsored insurance plans, the Company’s Employee Stock Purchase Plan, and the Company’s
401(k) Plan, subject to the terms and conditions of the policies and/or plan documents governing
those benefit programs. The Company reserves the right to amend, modify and/or terminate its
benefit programs at its discretion, subject to all applicable laws and regulations.

We are pleased to offer you a one-time sign-on bonus of $200,000, payable within thirty (30) days
of your start date. By signing below, you agree that if you voluntarily terminate your employment
with the Company within one (1) year of your start date, you will reimburse the Company for the
gross amount of the sign-on bonus paid to you and, further, you hereby authorize the Company to
deduct the amount owed to the Company from any and all amounts payable to you by 3Com as of your
last date of employment, including without limitation, your final paychecks.

As an inducement to accept this position, you will receive an employee stock option grant of
500,000 shares of 3Com common stock, subject to the required Company and NASDAQ approvals. If
approved, the effective date of the stock option grant will be the first Tuesday of the calendar
month immediately

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following your first day of employment with the Company or, if the applicable NASDAQ market is
closed on that date, the first trading day following that date. However, the stock option grant
shall not be deemed to have been accepted until you have signed the Company’s stock option
agreement. The option price for the shares subject to this stock option grant will be the closing
stock price of 3Com common stock on the effective date of the grant. The stock options will vest
in four (4) equal, annual installments, with the initial vesting date on the first anniversary of
the effective date. Your stock option grant is subject to the terms and conditions comparable to
the 3Com Corporation 2003 Stock Plan and applicable Company policies.

As an additional inducement, you will receive a grant of 300,000 shares of 3Com restricted stock,
subject to the required Company and NASDAQ approvals. If approved, the effective date of the
restricted stock grant will be the first Tuesday of the calendar month immediately following your
first day of employment with the Company or, if the applicable NASDAQ market is closed on that
date, the first trading day following that date. However, the grant shall not be deemed to have
been accepted until you have signed the Company’s restricted stock agreement. The restricted stock
will vest in four equal, annual installments, with the initial vesting date on the first
anniversary of the effective date of the grant. Your grant is subject to the terms and conditions
comparable to the 3Com Corporation 2003 Stock Plan and applicable Company policies.

As a Section 16 Officer of the Company, you will be eligible for severance benefits under the
Company’s Section 16 Officer Severance Benefit Plan and the enclosed Severance Benefits Agreement.
In addition, you will receive a Management Retention Agreement enclosed with this letter regarding
change of control benefits.

This offer of employment is conditioned upon your signing the Company’s Restrictive Covenant
Agreement (to be provided under separate cover) regarding, among other things, confidentiality,
non-solicitation and assignment of inventions. In addition, this offer of employment is contingent
upon your providing the Company with documentation of your ability to work in the United States, as
required by the federal Immigration Reform and Control Act (as amended), no later than three (3)
days after your first day of employment. This offer is also contingent upon the successful results
of a background investigation. You will be required to sign an authorization for this purpose as
part of the Company’s employment application form, if you have not done so already. Providing
false or fraudulent information to the Company may result in withdrawal of the offer or termination
of employment, if hired.

While we are confident that we will have a mutually beneficial employment relationship, your
employment with 3Com is on an at-will basis. This means that both you and 3Com can terminate the
employment relationship at any time, for any reason or no reason, without notice. Nothing in
this offer letter is intended to or shall be construed as a contract of employment for any fixed
time.

The terms and conditions of this offer letter supersede any previous written or oral
representations concerning conditions of employment. This offer of employment is valid for a
period of five (5) business days from the date of this offer letter.

Please confirm your acceptance by signing and returning this letter. By signing this offer letter,
you represent that you have reviewed and understand the letter, that you are not subject to any
restrictions or covenants that would prevent or impede your performance of the duties and
responsibilities of your position with 3Com, and that your employment with 3Com will not violate or
conflict with the terms of any employment, non-competition or other agreement with any previous
employer or other entity.

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Let me close by reaffirming our belief that the skill and background you bring to 3Com will be
instrumental to the future success of the Company. 3Com believes that the single most important
factor in our success has been our people. I look forward to working with you.

Sincerely,

/s/ Neal D. Goldman

Neal D. Goldman

Executive Vice President

Chief Administrative and Legal Officer

I accept 3Com’s offer of employment based on the terms and conditions described in this offer
letter.

	 	 	 
	/s/ Jay Zager

	 	                    5/9/07
	 

	 	 
	Jay Zager

	 	Date: May 9, 2007

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