Document:

RubinBaum LLP Document

EXHIBIT 4.1

 

AGREEMENT

 

AGREEMENT (this “Agreement”),

dated as of May 14, 2002, between Wave Three Software, Inc., a Delaware

corporation (“Wave3”), and TeraGlobal Communications, Corp., a Delaware

corporation (“TeraGlobal”).

 

WHEREAS, Wave3 is a wholly-owned

subsidiary of TeraGlobal;

 

WHEREAS, Wave3 and TeraGlobal

have entered into an Assignment and Assumption Agreement, dated May 14, 2002,

pursuant to which, subject to the terms thereof, TeraGlobal assigned,

transferred, conveyed and delivered to Wave3 and Wave3 accepted the Assets (as

defined therein) and assumed the Liabilities (as defined therein);

 

WHEREAS, TeraGlobal desires to

cause Wave3 to enter into a Securities Purchase Agreement (the “Purchase

Agreement”) with, among others, WallerSutton 2000, L.P., a Delaware

limited partnership (together with the other purchasers named therein, the “Purchasers”);

 

WHEREAS, in order to induce the

Purchasers to enter into the Purchase Agreement with Wave3, TeraGlobal has

represented to the Purchasers that Wave3 and TeraGlobal will enter into this

Agreement and effect the transactions contemplated hereby.

 

NOW, THEREFORE, in

consideration of the premises and the mutual covenants herein contained and

other good and valuable consideration, the receipt and sufficiency of which are

hereby acknowledged, the parties hereby agree as follows:

 

1.     TeraGlobal hereby covenants to Wave3 that:

 

(a)   Prior to the Closing (as defined in the

Purchase Agreement, the “Closing”), TeraGlobal shall deliver to

Wave3 evidence (in the form of a proposed amendment to TeraGlobal’s Certificate

of Incorporation) that the Board of Directors of TeraGlobal has approved a

Going Private Transaction in the form of a reverse stock split of its common

stock on a 1,000 for 1 basis, which provides for a cash payment in lieu of the

issuance of any fractional shares resulting therefrom of an amount equal to

$290 per share (as adjusted for the 1,000 for 1 reverse stock split the “Fractional

Share Payment”).  For

purposes hereof, a “Going Private Transaction” means any

transaction or occurrence (including, without limitation, a reverse stock split

of TeraGlobal’s common stock), pursuant to or following which TeraGlobal will

have fewer than 300 stockholders of record and which would entitle TeraGlobal

to suspend or terminate its obligations to file reports under Sections 13 and

15 of the Securities Exchange Act of 1934.

 

(b)   At the Closing, TeraGlobal shall deliver to

Wave3 copies of a preliminary Information Statement (Schedule 14C) relating to

the Going Private Transaction and of a Schedule 13E-3 relating thereto

(collectively, the “Schedules”) to be filed by TeraGlobal with

the Securities and Exchange Commission (“SEC”) simultaneously with the Closing;

 

(c)   Simultaneously with the Closing, TeraGlobal

will file with the SEC the Schedules; and that TeraGlobal will promptly respond

to any comments received from the SEC with respect to the Schedules;

 

 

(d)   TeraGlobal will as soon as permitted under

SEC rules, file a final Schedule 13E-3 with the SEC and mail to all of its

stockholders a copy of the final Information Statement;

 

(e)   Neither the Information Statement nor the

Schedule 13E-3, when filed and/or delivered, will contain any untrue statement

of a material fact or omit to state a material fact required to be stated

therein or necessary in order to make the statements therein, in light of the

circumstances under which they were made, not misleading.

 

2. Each of Wave3 and TeraGlobal agree that

Wave3 will provide TeraGlobal with (a) the funds needed to make the Fractional

Share Payment by redeeming from TeraGlobal shares of its Class A Common Stock

held by TeraGlobal and (b) up to $200,000 of the funds needed pay the

transaction expenses that may arise from time to time as a result of the

Going-Private Transaction, the Purchase Agreement, or the other transactions

consummated in connection therewith (provided that such transactional expenses

shall have been approved by WallerSutton 2000, L.P.), by redeeming from

TeraGlobal the shares of its Class B Common Stock held by TeraGlobal, each of

which series of Common Stock will be deemed repurchased at a price of $9.27 per

share.

 

3.  Each of Wave3 and TeraGlobal

represents and warrants with respect to itself that all corporate action

necessary for the authorization, execution, delivery and performance by it of

this Agreement has been taken. This Agreement is a legal, valid and binding

obligation, enforceable against it in accordance with its terms.

 

4.  This Agreement may be

amended by a written instrument signed by both parties hereto.

 

IN WITNESS WHEREOF, the parties hereto have

executed this Agreement as of the date first written above.

 

	

   

  	

  WAVE THREE SOFTWARE, INC.

  	 

	

   

  	

   

  	 

	

   

  	

  By: 

  	

  ROBERT E RANDALL

  
	

   

  	

   

  	

  Name: Robert E. Randall

  
	

   

  	

   

  	

  Title:  

  President

  
	

   

  	

   

  	 

	

   

  	

  TERAGLOBAL COMMUNICATIONS, CORP.

  	 

	

   

  	

   

  	 

	

   

  	

  By: 

  	

  ROBERT E RANDALL

  	 

	

   

  	

   

  	

  Name: Robert E. Randall

  	 

	

   

  	

   

  	

  Title:  

  President

  	 

					

 

2form Offer Letter-Full-time Exempt

Exhibit

10.2

January 4, 2002

Mr. Timothy Rogers

840 East Meadow Drive

Palo Alto, CA 94303

 

Re:          Employment

Terms

Dear Mr. Rogers:

First Virtual

Communications  (the “Company”)  is pleased to offer you the

position of Chief Financial Officer, Senior Vice President of Finance and

Treasurer, pursuant to the terms of this letter agreement (“Agreement”),

subject to the satisfactory review of your references. Your start date will be

January 7, 2002.

1.             Duties

You will be

expected to perform various duties consistent with your position.  You will report to the Company’s CEO, Mr.

Killko Caballero unless otherwise assigned by the Company.

2.             Base

Salary

Your base salary will be $215,000 per year, less payroll deductions and

all required withholdings.  You will be

paid bi-weekly and you will be eligible for the following standard Company

benefits: medical insurance, paid time off, and holidays.  Details about these benefit plans are

available for your review.  You will

also be eligible to receive up to $40,000.00 per year based on your achievement

of Company target goals and MBO’s (Management by Objectives) related to your

specific job function. The Company may modify benefits and compensation from

time to time, as it deems necessary.

 

 

3.             Stock Options

Upon commencement of employment and subject to

approval of the Company’s Board of Directors, you will be granted a Stock

Option under the Company’s 1997 Equity Incentive Plan to purchase 250,000

shares of the Company’s Common Stock (the “Stock Option”).  The Stock Option will be governed by and

granted pursuant to a separate Stock Option Agreement.  The exercise price per share of the Stock

Option will be equal to the fair market value of the Common Stock established

on the date of grant, subject to approval by the Board of Directors.  The Stock Option will be subject to vesting

so long as you continue to be employed with the Company, according to the

following schedule: twelve and a half percent (12 1⁄2%) of the shares

subject to the Stock Option will vest on the last day of the sixth full

calendar month of your employment after the date of grant and the remaining

shares subject to the Stock Option will vest in equal installments at the end

of each monthly period thereafter.

If you have questions

regarding the tax implications of the Stock Option or any part of your

compensation package, please consult with your own tax advisor.

4.             Termination

Employment at First

Virtual Communications is “at will”. 

The Company may terminate your employment at any time and for any or no

reason, with or without Cause or advance notice by giving written notice of

such termination.  Similarly, you may

terminate your employment with the Company at any time at your election, in

your sole discretion, for any or no reason upon notice to the Company. The term

of your employment relationship may not be modified except by a written

agreement signed by the Chief Executive Officer or President of the Company.

Notwithstanding the

above, if the company terminates your employment without Cause, then upon your

furnishing to the Company an executed release and waiver of claims, you shall

be entitled to receive severance payment in the form of continuation of your

base salary in effect at the time of your termination, subject to the standard

payroll deductions and withholdings, for a period of six (6) months after the

date of termination. During the severance period, assuming that you are

eligible for COBRA,   you shall be

entitled to receive medical  benefits

for yourself and eligible dependents paid for by the company  until the earlier or (a) six (6) months

after the date of termination, or (b) the date that you become eligible to

receive medical benefits from another company or business entity.

“Cause” means Executive’s:  (i) gross negligence or willful misconduct in connection with the

performance of Executive’s duties to the Company that in the written

determination of a majority of the Board has not been cured within thirty (30)

days following receipt by Executive of written notice from the Board identifying

such acts of gross negligence or willful misconduct; (ii) commission of a

felony (other than a traffic-related offense) that in the written determination

of a majority of the Board has caused material injury to the Company’s

business; (iii) dishonesty with respect to a significant matter relating to the

Company’s business and intended to result in personal enrichment of Executive

or his or her family at the expense of the Company; or (iv) material breach of

any agreement by and between Executive and the Company, which material 

 

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breach has not been cured within thirty (30) days

following receipt by Executive of written notice from the Board identifying

such material breach.

 

If your employment is

terminated for Cause, or you voluntarily terminate your employment from the

Company, all compensation and benefits will cease immediately and you will

receive no additional payment from the Company other than your accrued base

salary and accrued and unused vacation benefits earned through your date of

termination.

5.             Company

Policy

As a Company employee,

you will be expected to abide by the Company’s policies, procedures, rules and

regulations and acknowledge in writing that you have read the Company’s

Employee Handbook, which will govern the terms and conditions of your

employment.  The Company’s Employee

Handbook may be modified from time to time at the sole discretion of the

Company.

Normal working hours are

from 8:00 a.m. to 5:00 p.m., Monday through Friday.  As an exempt salaried employee, you will be expected to work

additional hours as required by the nature of your work assignments.

6.             Proprietary

Information and Inventions Agreement

As a condition of

employment, you will be required to sign and comply with the Proprietary

Information and Inventions Agreement, which prohibits unauthorized use or

disclosure of the Company’s proprietary information, among other things.

In your work for the

Company, you will be expected not to use or disclose any confidential information,

including trade secrets, of any former employer or other person to whom you

have an obligation of confidentiality. 

Rather, you will be expected to use only that information which is

generally known and used by persons with training and experience comparable to

your own, which is common knowledge in the industry or otherwise legally in the

public domain, or which is otherwise provided or developed by the Company.  During our discussions about your proposed

job duties, you assured us that you would be able to perform those duties

within the guidelines just described.

You agree that you will

not bring onto Company premises any unpublished documents or property belonging

to any former employer or other person to whom you have an obligation of

confidentiality.

7.             Change of Control

Upon confirmation by the Board of Directors of your status as a Section

16 officer of the company you will also be covered by the company’s executive

officer’s change of control plan, which is attached to this agreement as Exhibit

A.

 

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8.             Entire

Agreement

This Agreement, together

with your Proprietary Information and Inventions Agreement and the stock

documents referred to herein, forms the complete and exclusive statement of the

terms of your employment with the Company. 

The employment terms in this Agreement supersede any other agreements or

promises made to you by anyone, whether oral or written.  The terms of this Agreement cannot be

modified, except in a writing signed by the Company’s Chief Executive Officer

or President.

9.             Governing

Law

This Agreement

will be governed by and construed according to the laws of the State of

California.  You hereby expressly

consent to the personal jurisdiction of the state and federal courts located in

Santa Clara, California for any lawsuit filed there against you by the Company

arising from or related to this Agreement.

10.          Successors

and Assigns.  This Agreement will be binding upon your

heirs, executors, administrators and other legal representatives and will be

for the benefit of the Company, its successors, and its assigns.

As required by law, this

offer is subject to satisfactory proof of your right to work in the United

States.

Please sign and date this

Agreement, and return it to the Company’s Human Resources Department prior to

your commencement of employment, if you wish to accept employment with the

Company under the terms described above.

We look forward to your

favorable reply and to a productive and enjoyable work relationship.

Sincerely,

 

First Virtual Communications

	

  By:

  	

  /s/ Tammy Polanco

  
	

   

  	

  Tammy Polanco

  
	

   

  	

  Director, Human

  Resources

  
	

   

  	

   

  
	

  Accepted:

  
	

   

  	

   

  
	

  /s/ Timothy A. Rogers

  
	

  Employee

  
	

   

  	

   

  
	

  January 7, 2002

  
	

  Date

  

 

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