Document:

EXHIBIT 10.2

 

SEVERANCE AGREEMENT

 

This
Severance Agreement (“Agreement”) is made as of the
                  
day of June, 2010, between Ezenia! Inc.,
a Delaware corporation (the “Company”),
and                                           
(the “Executive”).

 

WHEREAS, the Company desires to
provide the Executive with severance protection in the event of his involuntary
termination.

 

NOW, THEREFORE,  in
consideration of the mutual covenants and agreements herein contained and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

 

Termination.  The Executive’s employment by the Company is
at-will and may be terminated without any breach of this Agreement under the
following circumstances:

 

Death.  The Executive’s employment hereunder shall
terminate upon his death.

 

Disability.  The Company may terminate the Executive’s
employment if he is disabled and unable to perform the essential functions of
the Executive’s then existing position or positions under this Agreement with
or without reasonable accommodation for a period of 180 days (which need not be
consecutive) in any 12-month period.  If
any question shall arise as to whether during any period the Executive is
disabled so as to be unable to perform the essential functions of the Executive’s
then existing position or positions with or without reasonable accommodation,
the Executive may, and at the request of the Company shall, submit to the
Company a certification in reasonable detail by a physician selected by the
Company to whom the Executive or the Executive’s guardian has no reasonable
objection as to whether the Executive is so disabled or how long such
disability is expected to continue, and such certification shall for the
purposes of this Agreement be conclusive of the issue.  The Executive shall cooperate with any
reasonable request of the physician in connection with such certification.  If such question shall arise and the
Executive shall fail to submit such certification, the Company’s determination
of such issue shall be binding on the Executive.  Nothing in this Section 1(b) shall
be construed to waive the Executive’s rights, if any, under existing law
including, without limitation, the Family and Medical Leave Act of 1993, 29
U.S.C. §2601 et seq. and the
Americans with Disabilities Act, 42 U.S.C. §12101 et seq.

 

Termination
by Company for Cause.   The Company may terminate the Executive’s
employment hereunder for Cause.  For
purposes of this Agreement, “Cause” shall mean: 
(i) conduct by the Executive constituting a material act of
misconduct in connection with the performance of his duties, including, without
limitation, misappropriation of funds or property of the Company or any of its
subsidiaries or affiliates other than the occasional, customary and de minimis
use of Company property for personal purposes; (ii) the commission by the
Executive of any felony or a misdemeanor involving moral turpitude, deceit,
dishonesty or fraud, or any conduct by the Executive that would reasonably be
expected to result in material injury or reputational harm to the Company or
any of its subsidiaries and affiliates if he were retained in his position; (iii) continued
non-performance by the Executive of his duties to the Company (other than by
reason of the Executive’s physical or mental illness, incapacity or disability)
which has continued for more than 30 days following written notice of such
non-performance from the Chief Executive Officer; (iv) a material
violation by the Executive of the Company’s written employment policies; or (v) failure to cooperate with a
bona fide internal investigation or an investigation by regulatory or law
enforcement authorities, after being instructed by the Company to cooperate, or
the willful destruction or failure to preserve documents or other materials
known to be relevant to such investigation or the inducement of others to fail
to cooperate or to produce documents or other materials in connection with such
investigation.

 

Termination
Without Cause.  The Company
may terminate the Executive’s employment hereunder at any time without
Cause.  Any termination by the Company of
the Executive’s employment under this Agreement which does not constitute a
termination for Cause under Section 1(c) and does not result from the
death or disability of the Executive under Section 1(a) or (b) shall
be deemed a termination without Cause.

 

Termination
by the Executive.  The Executive may terminate his employment
hereunder at any time for any reason, including but not limited to Good
Reason.  For purposes of this Agreement, “Good
Reason” shall mean that the Executive has complied with the “Good Reason
Process” (hereinafter defined) following the occurrence of any of the following
events:  (i) a material diminution
in the Executive’s 

 

1

 

responsibilities,
authority or duties; (ii) a material diminution in the Executive’s Base
Salary except for across-the-board salary reductions based on the Company’s
financial performance similarly affecting all or substantially all senior
management employees of the Company; (iii) a material change in the
geographic location at which the Executive provides services to the Company,
which change is initiated by the Company and not agreed to by the Executive; or
(iv) the material breach of this Agreement by the Company.  “Good Reason Process” shall mean that (i) the
Executive reasonably determines in good faith that a “Good Reason” condition
has occurred; (ii) the Executive notifies the Company in writing of the
first occurrence of the Good Reason condition within 60 days of the first
occurrence of such condition; (iii) the Executive cooperates in good faith
with the Company’s efforts, for a period not less than 30 days following such
notice (the “Cure Period”), to remedy the condition; (iv) notwithstanding
such efforts, the Good Reason condition continues to exist; and (v) the
Executive terminates his employment within 60 days after the end of the Cure
Period.  If the Company cures the Good
Reason condition during the Cure Period, Good Reason shall be deemed not to
have occurred.

 

Compensation Upon Termination.

 

Termination Generally.  If the Executive’s employment with the
Company is terminated for any reason, the Company shall pay or provide to the
Executive (or to his authorized representative or estate) any earned but unpaid
base salary, incentive compensation earned but not yet paid, unpaid expense
reimbursements, accrued but unused vacation and any vested benefits the
Executive may have under any employee benefit plan of the Company (the “Accrued
Benefit”) on or before the time required by law but in no event more than 30
days after the Executive’s date of termination.

 

Termination by the Company
Without Cause or by the Executive with Good Reason.  If the Executive’s employment is terminated
by the Company without Cause as provided in Section 1(d), or the Executive
terminates his employment for Good Reason as provided in Section 1(e),
then the Company shall, through the date of termination, pay the Executive his
Accrued Benefit.  In addition, subject to
the Executive signing a general release of claims in favor of the Company and
related persons and entities in a form and manner satisfactory to the Company
(the “Release”) within the 21-day period following the date of termination and
the expiration of the seven-day revocation period for the Release, the Company
shall pay the Executive an amount equal to 50 percent of the Executive’s then annual base salary (the “Severance
Amount”).  The Severance Amount shall be
paid out in substantially equal installments in accordance with the Company’s
payroll practice over six months,
beginning on the first payroll date that occurs 30 days after the date of
termination; provided that if the Executive commences any employment or
self-employment prior to the completion of such six-month period, payment of
the Severance Amount as provided herein shall cease effective as of the date of
commencement of such employment or self-employment; and provided  further
that payment of the Severance Amount shall cease immediately upon the death of
the Executive.  Solely for purposes of Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), each installment
payment is considered a separate payment. 
Subject to the Executive’s copayment of premium amounts at the active
employees’ rate, the Executive may continue to participate in the Company’s
group health, dental and vision program for six months; provided, however,
that the continuation of health benefits under this Section shall reduce
and count against the Executive’s rights under the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”); and provided  further
that if the Executive commences any employment or self-employment prior to the
completion of such six-month period, the continuation of health benefits as
provided herein shall cease effective as of the date of commencement of such
employment or self-employment.  The
Executive shall give prompt notice to the Company of the date of commencement
of any employment or self-employment, and shall respond promptly to any
reasonable inquiries from the Company concerning any employment or
self-employment, in which the Executive engages while benefits are payable by
the Company hereunder.

 

Section 409A.

 

Anything in this Agreement to the contrary
notwithstanding, if at the time of the Executive’s separation from service
within the meaning of Section 409A of the Code, the Company determines
that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of
the Code, then to the extent any payment or benefit that the Executive becomes
entitled to under this Agreement on account of the Executive’s separation from
service would be considered deferred compensation subject to the 20 percent
additional tax imposed pursuant to Section 409A(a) of the Code as a
result of the application of Section 409A(a)(2)(B)(i) of the Code,
such payment shall not be payable and such benefit shall not be provided until
the date that is the earlier of (A) six months and one day after the
Executive’s separation from service, or (B) the Executive’s death.  If any such delayed cash payment is 

 

2

 

otherwise
payable on an installment basis, the first payment shall include a catch-up
payment covering amounts that would otherwise have been paid during the
six-month period but for the application of this provision, and the balance of
the installments shall be payable in accordance with their original schedule.

 

To the extent that any payment or benefit described
in this Agreement constitutes “non-qualified deferred compensation” under Section 409A
of the Code, and to the extent that such payment or benefit is payable upon the
Executive’s termination of employment, then such payments or benefits shall be
payable only upon the Executive’s “separation from service.”  The determination of whether and when a
separation from service has occurred shall be made in accordance with the
presumptions set forth in Treasury Regulation Section 1.409A-1(h).

 

The parties intend that this Agreement will be
administered in accordance with Section 409A of the Code.  To the extent that any provision of this
Agreement is ambiguous as to its compliance with Section 409A of the Code,
the provision shall be read in such a manner so that all payments hereunder
comply with Section 409A of the Code. 
The parties agree that this Agreement may be amended, as reasonably
requested by either party, and as may be necessary to fully comply with Section 409A
of the Code and all related rules and regulations in order to preserve the
payments and benefits provided hereunder without additional cost to either
party.

 

The Company makes no representation or warranty and
shall have no liability to the Executive or any other person if any provisions
of this Agreement are determined to constitute deferred compensation subject to
Section 409A of the Code but do not satisfy an exemption from, or the
conditions of, such Section.

 

Withholding.  All payments made by the Company to the
Executive under this Agreement shall be net of any tax or other amounts
required to be withheld by the Company under applicable law.

 

Amendment.  This Agreement may be amended or modified
only by a written instrument signed by the Executive and by a duly authorized
representative of the Company.

 

Governing Law.  This contract shall be construed under and be
governed in all respects by the laws of the State of New Hampshire, without
giving effect to the conflict of laws principles of such State.  With respect to any disputes concerning
federal law, such disputes shall be determined in accordance with the law as it
would be interpreted and applied by the United States Court of Appeals for the
First Circuit.

 

Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall be taken to
be an original; but such counterparts shall together constitute one and the
same document.

 

Successor
to Company.  The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business or assets of the Company expressly
to assume and agree to perform this Agreement to the same extent that the
Company would be required to perform it if no succession had taken place.  Failure of the Company to obtain an
assumption of this Agreement at or prior to the effectiveness of any succession
shall be a material breach of this Agreement.

 

Gender
Neutral.  Wherever used herein, a pronoun in the
masculine gender shall be considered as including the feminine gender unless
the context clearly indicates otherwise.

 

3

 

IN WITNESS WHEREOF, the parties have executed
this Agreement effective on the date and year first above written.

 

	
   

  	
  EZENIA!
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
  [EXECUTIVE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name]

  

 

4EXHIBIT 10.3

 

NON-QUALIFIED STOCK OPTION AGREEMENT

UNDER the

EZENIA! INC. 2004 Equity Incentive Plan

 

Name of Optionee:

No. of Option Shares:

Option Exercise Price per Share:                              $

 

	
  Grant
  Date:

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
   

  

 

Pursuant
to the Ezenia! Inc. 2004 Equity Incentive Plan (the “Plan”), Ezenia! Inc. (the “Company”)
hereby grants to the Optionee named above an option (the “Stock Option”) to
purchase on or prior to the Expiration Date specified above all or part of the
number of shares of Stock of the Company specified above at the Option Exercise
Price per Share specified above subject to the terms and conditions set forth
herein and in the Plan.  This Stock
Option is not intended to be an “incentive stock option” under Section 422
of the Internal Revenue Code of 1986, as amended.

 

1.        Exercisability Conditions.  No portion of this Stock Option may be
exercised until such portion shall have become exercisable. 
                  [insert
# that represents 50% of the Option Shares] Option Shares shall become
exercisable if the Committee certifies in early 2011 that the Company has
achieved 85 percent of its 2010 budget in both revenue and operating
profit.  For every percentage point that
the Committee certifies that the Company has exceeded 85 percent of its 2010
budget in either revenue or operating profit,
                  additional
Option Shares [insert # that represents 1/60th of the Option Shares] shall become
exercisable.  The portion of this Stock
Option that does not become exercisable as provided above shall be forfeited
and cancelled as of the date of the Committee meeting in early 2011.

 

2.        Manner of Exercise.  

 

(a) The Optionee may
exercise this Stock Option only in the following manner:  from time to time on or prior to the Expiration
Date of this Stock Option, the Optionee may give notice to the Committee of his
or her election to purchase some or all of the Option Shares purchasable at the
time of such notice.  This notice shall
specify the number of Option Shares to be purchased.

 

Payment
of the purchase price for the Option Shares may be made by one or more of the
following methods:  (i) in cash, by
certified or bank check or other instrument acceptable to the Committee; or
(ii) by the Optionee delivering to the Company a properly executed
exercise notice together with irrevocable instructions to a broker to promptly
deliver to the Company cash or a check payable and acceptable to the Company to
pay the option purchase price, provided that in the event the Optionee chooses to
pay the option purchase price as so provided, the Optionee and the broker shall
comply with such procedures and enter into such agreements of indemnity and
other agreements as the Committee shall prescribe as a condition of such
payment procedure.  Payment instruments
will be received subject to collection.

 

1

 

(b) The shares of Stock purchased upon exercise
of this Stock Option shall be transferred to the Optionee on the records of the
Company or of the transfer agent upon compliance to the satisfaction of the
Committee with all requirements under applicable laws or regulations in
connection with such issuance and with the requirements hereof and of the
Plan.  The determination of the Committee
as to such compliance shall be final and binding on the Optionee.  The Optionee shall not be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any shares
of Stock subject to this Stock Option unless and until this Stock Option shall
have been exercised pursuant to the terms hereof, the Company or the transfer
agent shall have transferred the shares to the Optionee, and the Optionee’s
name shall have been entered as the stockholder of record on the books of the
Company.  Thereupon, the Optionee shall
have full voting, dividend and other ownership rights with respect to such
shares of Stock.

 

(c) Notwithstanding any other provision hereof
or of the Plan, no portion of this Stock Option shall be exercisable after the
Expiration Date hereof.

 

3.        Termination of Employment or Service Relationship.  

 

(a) If the Optionee’s employment by the Company or one of its
subsidiaries is terminated, the period within which to exercise the Stock
Option may be subject to earlier termination as set forth below.

 

(i)      Termination Due to Death.  If the Optionee’s employment terminates by
reason of the Optionee’s death, any portion of this Stock Option outstanding on
such date may be exercised, to the extent exercisable on the date of death, by
the Optionee’s legal representative or legatee for a period of 12 months from
the date of death or until the Expiration Date, if earlier.

 

(ii)    Termination Due to Disability.  If the Optionee’s employment terminates by
reason of the Optionee’s disability (as determined by the Committee), any
portion of this Stock Option outstanding on such date may be exercised by the
Optionee, to the extent exercisable on the date of termination, for a period of
12 months from the date of termination or until the Expiration Date, if earlier.

 

(iii)   Termination for Cause.  If the Optionee’s employment terminates for
Cause, any portion of this Stock Option outstanding on such date shall
terminate immediately and be of no further force and effect.  For purposes hereof, “Cause” shall mean a determination
by the Committee that the Optionee shall be dismissed as a result of (i) any
material breach by the Optionee of any agreement between the Optionee and the
Company; (ii) the conviction of, indictment for or plea of nolo contendere
by the Optionee to a felony or a crime involving moral turpitude; or (iii) any
material misconduct or willful and deliberate non-performance (other than by
reason of disability) by the Optionee of the Optionee’s duties to the Company.

 

(iv)    Other Termination.  If the Optionee’s employment terminates for
any reason other than the Optionee’s death, the Optionee’s disability or Cause,
and unless otherwise determined by the Committee, any portion of this Stock
Option outstanding on such date may be exercised, to the extent exercisable on
the date of termination, for a period of 90 days from the date of termination
or until the Expiration Date, if earlier.

 

The
Committee’s determination of the reason for termination of the Optionee’s
employment shall be conclusive and binding on the Optionee and his or her
representatives or legatees.

 

(b)     If the Optionee is a non-employee Director and his service
relationship with the Company is terminated, the period within which to
exercise the Stock Option may be subject to earlier termination as follows: (i)
if the Optionee’s service relationship terminates by reason of the Optionee’s
death, any portion of this Stock Option outstanding on such date may be
exercised, to the extent exercisable on the date of death, by the Optionee’s
legal representative or legatee for a period of 12 months from the date of
death or until the Expiration Date, if earlier; and (ii) if the Optionee’s
service relationship terminates for any reason other than the Optionee’s death,
and unless otherwise determined by the Committee, any portion of this Stock
Option outstanding on such date may be exercised, to the extent exercisable on
the date of termination, for a period of 90 days from the date of termination
or until the Expiration Date, if earlier.

 

4.        Incorporation of Plan.  Notwithstanding anything herein to the
contrary, this Stock Option shall be subject to and governed by all the terms
and conditions of the Plan, including the powers of the Committee set forth in Section 5
of the Plan.  Capitalized terms in this
Agreement shall have the meaning specified in the Plan, unless a different
meaning is specified herein.

 

5.        Transferability.  This Agreement is personal to the Optionee,
is non-assignable and is not transferable in any manner, by operation of law or
otherwise, other than by will or the laws of descent and distribution.  This Stock Option is exercisable, during the
Optionee’s lifetime, only by the Optionee, and thereafter, only by the Optionee’s
legal representative or legatee.

 

6.        Tax Withholding.  To the extent applicable, the Optionee shall,
not later than the date as of which the exercise of this Stock Optionbecomes a
taxable event for Federal income tax purposes, pay to the Company or make
arrangements satisfactory to the Committee for payment of any Federal, state,
and local taxes required by law to be withheld on account of such taxable
event.  The Company shall have the
authority to cause the minimum required tax withholding obligation, if any, to
be satisfied, in whole or in part, by withholding from shares of Stock to be
issued to the Optionee a number of shares of Stock with an aggregate Market
Value that would satisfy the withholding amount due. \

 

2

 

7.        No Obligation to Continue Employment or Service
Relationship.  Neither the
Company nor any of its subsidiaries is obligated by or as a result of the Plan
or this Agreement to continue the Optionee in employment and neither the Plan
nor this Agreement shall interfere in any way with the right of the Company or
any Subsidiary to terminate the employment of the Optionee at any time. Neither
the Plan nor this Agreement confers upon the Optionee any rights to continue as
a director.

 

8.        Notices.  Notices hereunder shall be mailed or
delivered to the Company at its principal place of business and shall be mailed
or delivered to the Optionee at the address on file with the Company or, in
either case, at such other address as one party may subsequently furnish to the
other party in writing. The undersigned specifically acknowledge that the stock
option will become fully exercisable in the event of a change in control unless
otherwise determined by the compensation committee.

 

	
   

  	
  EZENIA!
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

The
foregoing Agreement is hereby accepted and the terms and conditions thereof
hereby agreed to by the undersigned.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Optionee’s
  Signature

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Optionee’s
  name and address:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]