Document:

Blueprint

Exhibit 10.1 

Employment Agreement

 

This
Employment Agreement (“Agreement”) is made and
effective as of 10/4/2018 by and between Zoom Telephonics, Inc., a
Delaware company with offices currently located at 99 High Street,
Boston, MA 02110 (the “Company”), and Joseph Lee
Wytanis, an individual who resides at whose principal place of
residence is currently at (the “Executive”)
(collectively referred to herein as the
“Parties”).

 

WHEREAS, the Company desires to employ
Executive by engaging Executive to perform services under the terms
hereof; and

 

WHEREAS, Executive wishes to be employed
by the Company and provide full-time personal services to the
Company in return for the compensation and benefits detailed
herein.

 

Statement of Agreement

 

 

FOR AND IN CONSIDERATION of the mutual
promises and covenants set forth herein, each of the Company,
directly or through its subsidiaries, and Executive hereby agrees
to the employment of Executive on the following terms and
conditions and, except to the extent specifically superseded by
this Agreement, subject to all of the Company’s policy and
procedures regarding its employees.

 

1.

Employment.

 

1.1.

General

The
Company shall employ Executive as a full-time employee of the
Company effective as of October 29, 2018
(the “Start Date”), in the position set forth in
Section 1.2, and upon the other terms
and conditions herein provided. Executive agrees to devote his best
efforts, energies, and skill to the discharge of the
Responsibilities and Authorities set for in Section 1.3
below.

 

1.2.

Position

Executive shall
serve as the President and Chief Operating Officer of the Company,
with responsibilities and authority set forth in Section 1.3. Executive shall report to the CEO and,
when requested, the Board of Directors.

 

1.3.

Responsibilities and Authority

a)

Oversee budgets,
financial performance, staff, and other non-CEO executives in the
Company.

b)

Oversee all
contracts and commitments.

c)

Manage the Company
to achieve significant profitable growth.

d)

Manage the Company
for the benefit of its investors and employees.

e)

Work with staff,
other executives, and board members to plan & implement a
near/long term strategy for the Company.

f)

Meet with board
members and other executives to assess the direction of the Company
and ensure it is in line with the Company’s vision and
mission.

g)

Establish business
relationships with manufacturing partners and key component
suppliers.

h)

Assist Company
sales team to help increase profitable sales.

i)

Encourage business
investment as appropriate.

j)

Act as visionary
and provide leadership for the Company.

k)

Oversee complete
operation of the Company ensuring its objectives and goals are
met.

l)

Act as the face of
the Company when dealing with customers, partners, investors,
press, government, and community.

 

 

1

 

 

1.4.

Primary Place of Performance

Company’s
principal executive office currently located at 99 High Street,
Boston, MA 02110. Executive understands that the principal
executive office may change in the near future to a different
location nearby. In addition, the Company may from time to time
require Executive to travel temporarily to other domestic and
international locations on Company business.

 

1.5.

Term

The
term of this Agreement commences on the Start Date and continues
until employment terminates pursuant to Section 5 of this
Agreement.

 

2.

Compensation and Related Matters.

 

2.1.

Annual Base Salary

Executive shall
initially receive a base salary at the rate of US$200,000 per
annum, subject to withholdings and deductions, and paid
electronically to Executive’s designated bank accounts on a
bi-weekly basis. Annual base salary increases will be a minimum of
the prior year US inflation rate plus 2%.

 

2.2.

Annual Bonus

Commencing upon the
Start Date, Executive shall be entitled to performance bonuses,
determined and paid semi-annually according to the Company fiscal
year. Each bonus will be based on performance goals mutually agreed
upon by the Executive and the Company. The first semi-annual bonus
will be up to 25% of the Executive’s annual base salary, plus
any pro-rata amount, based on achievement of the mutually agreed
objectives. The second and on-going semi-annual bonus will be up to
25% of the Executive's then annual base salary, based on
achievement of mutually agreed objectives. All bonuses shall be
paid in a lump sum, subject to withholdings and deductions, and
paid electronically to Executive’s designated back
accounts.

 

2.3.

Signing Bonus

Executive shall be
entitled to a signing bonus in the gross amount, prior to
applicable withholding and deductions, of US$30,000 which shall be
paid by Company within 30 days of the Start Date.

 

2.4.

Living Expenses

While
Executive is employed by Company, Company will pay for
Executive’s lease of a fully furnished two (2) bedroom
apartment/condo near the Company’s principal office. The
total cost to Company, including furniture and utilities, will not
exceed US$8,500 per month.

 

 

2

 

 

2.5.

Travel and Expenses for Personal Visits Home

While
Executive is employed by Company, Company will pay for two (2)
round-trip economy class airline tickets per month for Executive to
visit his family at his home and/or for Executive’s family
members to visit Executive in Boston. Non-use of any round-trip
economy class airline travel within a given month will be forfeited
and will not be carried forward to the subsequent
month.

 

2.6.

Travel and Expenses for Business Trips

Domestic and
international travel will be according to Company Travel Policy
and/or normal business travel approach for Senior Executives. For
any international non-stop airline flight greater than six (6)
hours, Executive is entitled to Business Class
accommodations.

 

3.

Equity Awards.

 

3.1.

Initial
Stock Option

Upon or near the Executive’s Start Date, Executive will
receive an initial option grant to purchase 100,000 shares of the
Company’s common stock, at a purchase price equal to the fair
market value of the Company’s Common Stock on the date of
grant (such fair market value to be determined by the closing price
on the day prior to the date of grant ). The option will be subject
to the terms and conditions applicable to options granted under the
Company’s 2009 Stock Option Plan (the “Plan”), as
described in the Plan and the applicable option agreement Executive
will be required to sign. All shares subject to such option will
vest over two years from the grant date, the “Vesting
Commencement Date”). Twenty-five percent (25%) of the shares
subject to such option shall vest on the 6-month anniversary of the
Vesting Commencement Date and the remaining options shall vest in
equal 6-month installments over the two years. The initial stock
options will expire three years after the Vesting Commencement
Date.

 

3.2.

Additional Stock Option

Within 24 months of Executive’s
Start Date, Executive will receive an additional option grant to
purchase that number of shares of Company common stock calculated
by the cost per share as determined by the Black-Scholes pricing
model up to US$100,000 of Company expense totaled over the period
the expense will occur. The option will be subject to the terms,
conditions, vesting, and expiration timeframe listed above in
Section 3.1.

 

 

3

 

 

4.

Benefits and Perquisites.

 

4.1.

Benefits

Executive shall
participate in such full-time employee and executive benefit plans
and programs as the Company may from time to time offer, subject to
the terms and conditions of such plans. Executive benefits are to
begin on the Start Date.

 

4.2.

Life Insurance

Company
shall pay for Executive premiums of a Term Life Insurance policy,
up to a maximum of $5,000 annually, beginning on the Start
Date.

 

4.3.

401(k) Savings

Executive may
participate in the Company 401(k) savings program immediately on
the Start Date.

 

4.4.

Paid Vacation, Sick, and Holiday

Vacation and sick
time shall be in accordance with Company policies, with four (4)
weeks’ vacation and up to six (6) days sick time per
year.

 

4.5.

Computer and Cell Phone

On the
Executive’s Start Date, Executive will be provided an Apple
Mac laptop, four (4) monitors, two (2) dual monitor stands, two (2)
docking stations, and printer for use in Executive’s Company
office and his apartment/condo. Monthly Executive cell phone
charges for domestic and international calling will be reimbursed
by Company.

 

4.6.

Liability Protection

Executive will be
protected under the Company Officer’s and Director’s
liability insurance.

 

4.7.

Legal Fees

Company
shall promptly reimburse or directly pay on Executive’s
behalf, attorney fees and costs incurred by the Executive in
connection with the negotiation, drafting, and finalization of this
Agreement, up to an amount not to exceed $5,000.

 

4.8.

Allowed Activities

Executive is
allowed to participate on non-competing company, university, and/or
non-profit organization boards while working at Company full-time,
provided that Executive shall not engage in any activity which
would reasonably be expected to interfere with the performance of
Executive’s duties, services and responsibilities for the
Company.

 

 

4

 

 

5.

Termination.

 

5.1.

At-Will Employment

Subject
to the obligations of the Company in Section 5.2 and 5.3,
the Parties acknowledge that
Executive’s employment is and shall continue to be at-will,
as defined under applicable law. This means that it is not for any
specified period of time and can be terminated by Executive or by
the Company at any time, with or without advance
notice.

 

5.2.

Change
of Control

In the
event of “Change of Control” the Executive will receive
severance pay equal to six (6) months’ base salary if (a)
employment is terminated without Cause within six months after a
change-in-control, or (b) the Executive’s job
responsibilities, reporting status or compensation are materially
diminished and the named Executive leaves the employment of the
acquiring company within six months after the change-in-control. In
addition, in the event of a change-in-control of Company,
outstanding stock options granted to the Executive will become
immediately vested, with the right to be exercised at the option
grant price. For purposes of this Agreement, “Change of
Control” shall mean that any person, partnership or
corporation acquires all or substantially all of the assets and
business of the Company or a majority of the voting power
represented by the equity of the Company or any successor
thereto.

 

5.3.

Severance

If
Executive is terminated for any reason other than for Cause or
Change of Control, Executive will receive three (3) month base
salary pay to be paid in accordance with the Company’s
normally scheduled payroll and payment on a pro-rata basis of
annual bonus, and all outstanding stock options that have vested
(or that will ordinarily vest within six (6) months) will become
immediately vested and will be exercisable for a period of up to 30
days after termination.

 

5.4.

Voluntary Termination; For Cause Termination

If
Executive voluntarily terminates his employment with the Company or
if the Company terminates Executive’s employment for Cause,
then Executive shall not be entitled to any severance
compensation.

 

5.5.

Death or Disability

If this
Agreement terminates due to Executive Death or Disability, Company
shall pay Executive, or to Executive heirs or estate if applicable,
the Severance listed in Section 5.3.

 

 

5

 

 

5.6.

Cause Definition

“Cause”
means, for purposes of this agreement, any of the
following:

a)

Conviction of the
Executive of a felony or any other serious crimes;

b)

Commission by the
Executive of any act of theft, fraud, breach of fiduciary duty or
gross moral turpitude;

c)

Executive’s
gross negligence or willful misconduct in the performance of his
duties;

d)

Wrongful
misappropriation by the Executive of any Company, or Company
clients, money, assets, or other property; or

e)

Any material breach
of this Agreement that remains uncured for 30 days after notice of
such breach.

 

6.

Executive’s Restrictive
Covenants. Executive’s
employment with the Company is conditioned upon his signing the
Company’s Intellectual Property and Confidentiality Agreement
(“IPCA”), a copy of which is attached as Exhibit A to
this Agreement.

 

6.1.

Non-Compete

During
the term of Executive’s employment, and for any period while
severance is being paid in accordance with Section 5.3 above,
Executive shall not either alone or as a member of a partnership or
association, or as an officer, director, advisor, consultant,
agent, or employee of any other organization, be engaged in or
concerned with any other duties or pursuits requiring
Executive’s active personal services that will conflict with
Executive’s ability or objectivity in performing
Executive’s obligations under this Agreement. For this
purpose, Competition with the business of the Company includes
supplying products or providing services to any customer or client
with which the Company has done any business during the period
commencing one year prior to the date hereof and ending on the
termination of Executive’s employment with the
Company.

 

6.2.

Confidential Information

During
the term of Executive’s employment and thereafter, Executive
shall not make or cause to be made any unauthorized disclosure or
other use of any confidential information regarding the Company or
any of its activities and operations, except to the extent
reasonably necessary or appropriate in connection with the
performance by Executive of Executive’s authority and
responsibility under this Agreement or as may be legally required;
provided, however, that nothing herein contained shall preclude the
use or disclosure of any information known generally to the public.
Notwithstanding the foregoing,
Executive acknowledges and understand that he or she shall not be
held criminally or civilly liable under any Federal or State trade
secret law for the disclosure of a trade secret that (A) is made
(i) in confidence to a Federal. State. or local government
official, either directly or indirectly, or to an attorney; and
(ii) solely for the purpose of reporting or investigating a
suspected violation of law; or (B) is made in a complaint or other
document filed in a lawsuit or other proceeding, if such filing is
made under seal. Also, if Executive files a lawsuit for retaliation
by an employer for reporting a suspected violation of law,
Executive may disclose the trade secret to Executive's attorney and
use the trade secret information in the court proceeding, provided
that Executive files any document containing the trade seam under
seal and does not disclose the trade secret except pursuant to
court order.

 

 

 

6.3.

Non-Solicitation

During
the term of Executive’s employment and for a period of one
year thereafter, Executive shall not, either alone or in
conjunction with or assistance of another person, interfere with or
harm, or attempt to interfere with or harm, the business of the
Company (or any of its subsidiaries or affiliates) by offering
employment to any person who is employed by the
Company.

 

6.4.

Invention Assignment

During
the term of this agreement,
Executive hereby assigns to Company all right, title, and
interest in and to any Inventions Executive develops or creates,
individually or jointly, in connection with Executive's employment
relationship with Company.

 

6.5.

No Disparagement

During
the term of Executive’s employment and thereafter, Executive
shall not criticize, ridicule or make any statement which
disparages or is derogatory of the Company or any person affiliated
with the Company to any third party or in any public
statement.

 

6.6.

No Failure to Return Property

Upon
termination of employment, Executive is to immediately surrender to
the Company possession of all Company property in Executive’s
possession or control, tangible or intangible, including without
limitation equipment, trade secrets, confidential and proprietary
information and intellectual property in whatever embodiment or
form, and all copies and other reproductions and extracts thereof,
including those prepared by Executive. Executive also agrees to
destroy any copies of such property and to permanently delete any
electronic copies thereof.

 

7.

Resolution of Disputes.

 

7.1.

Negotiation

The
Parties shall attempt in good faith to resolve any such dispute
promptly by negotiation. Either may give the other written notice
of any dispute not resolved in the normal course of business,
stating that party’s position and proceed with negotiations.
Within five (5) business days after delivery of the disputing
party's notice, the Parties shall meet at a mutually acceptable
time and place, and thereafter as often as they reasonably deem
necessary, to attempt to resolve the dispute. All reasonable
requests for information made by one party to the other will be
honored.

 

 

6

 

 

7.2.

Arbitration

If any
issues in dispute are not resolved by such negotiation (or if any
party fails to participate in such negotiation), any party may, by
written notice to the other, demand that the dispute be resolved by
binding arbitration in Boston, MA, before a single arbitrator
pursuant to the national rules for the resolution of employment
disputes of the American Arbitration Association
(“AAA”). The arbitrator shall be instructed, and the
parties shall cooperate, with completing the arbitration with a
ruling, if possible, in writing on each issue in dispute within 60
days of the arbitrator’s appointment by the AAA. The
arbitrator shall have the power to award damages, equitable relief,
reasonable attorney's fees and expenses, and the fees and expenses
of the arbitrator and of the AAA, to any party. The
arbitrator’s rulings and awards shall be final and binding
upon the Parties and judgment thereon may be entered in any court
having competent jurisdiction. Unless otherwise ordered by the
arbitrator, the Company and Executive shall each pay an equal share
of the fees and expenses of the arbitrator and of the
AAA.

 

8.

Miscellaneous Provisions.

 

8.1.

Representation as to Limitations

Executive
represents and warrants that Executive is not under any contractual
or legal restraint that prevents or prohibits Executive from
entering into this Agreement or performing the duties and
obligations described in this Agreement.

 

8.2.

Assignment

Executive may not
assign this Agreement or any of its rights or obligations under
this Agreement without Company’s prior written consent.
Company may assign this Agreement or any of its rights and
obligations under this Agreement, effective upon written Notice to
Executive.

 

8.3.

Notices

Any
notice, request, claim, demand, document and other communication
hereunder to any Party shall be effective upon receipt (or refusal
of receipt) and shall be in writing and delivered personally or by
certified or registered mail, postage prepaid (or if it is sent
through any other method agreed upon by the Parties), as
follows:

a)

If to Company, at
the address set forth on the first page hereto, to the attention of
the CEO.

b)

If to Executive, at
the address set forth on the first page hereto, to the attention of
the Executive.

c)

Or at any other
address as any Party shall have specified by notice in writing to
the other Party.

 

 

7

 

 

8.4.

Headings

The
headings and captions are for convenience only and shall not be
deemed to limit, construe, affect, or alter the meaning of the
underlying provisions.

 

8.5.

Severability

If any
provision of this Agreement is or becomes invalid, illegal, or
unenforceable in any jurisdiction for any reason, such invalidity,
illegality, or unenforceability shall not affect the remainder of
this Agreement, and the remainder of this Agreement shall be
construed and enforced as if such invalid, illegal, or
unenforceable portion were not contained herein.

 

8.6.

Governing Law

This
Agreement shall be construed and enforced under and in accordance
with the laws of the Commonwealth of Massachusetts without giving
effect to the conflict of law principles thereof.

 

IN WITNESS WHEREOF, the Parties have
duly executed this Agreement as of the date and year first above
written.

 

 

8

 

 

 

 

 

	

Zoom Telephonics, Inc.

	
 

	

Executive

	
 

	
 

	
 

	

By:

	
 

	

By:

	

/s/
Frank
Manning

	
 

	

/s/ Joseph Lee Wytanis

	

Name: Frank Manning

Title: Chairman & CEO

	
 

	

Name: Joseph Lee Wytanis

	
 

	
 

	
 

	
 

 

 

9EX-10.1

 Exhibit 10.1 
  

 
 EMPLOYMENT AND CONFIDENTIAL INFORMATION AGREEMENT 

This Employment Agreement (the “Agreement”) by and between ServiceSource International, Inc.
(“ServiceSource” or the “Company”) and Richard G. Walker (“Executive”) is effective as of November 12, 2018 (the “Commencement Date”). 

1. EMPLOYMENT TERMS AND CONDITIONS.  ServiceSource hereby employs Executive as ServiceSource’s Chief Financial Officer,
and Executive hereby accepts such employment with ServiceSource, on the terms and conditions described in this Agreement, effective as of the Commencement Date. 

2. DUTIES. 

(a)    Responsibilities.  Executive’s shall report to ServiceSource’s Chief Executive Officer.
Executive shall be responsible for and expected to perform all duties and tasks typical for the Chief Financial Officer of a public company, and other tasks as directed by the CEO. In addition, Executive shall remain a member of the Company’s
Board of Directors for the remainder of his current term, and for subsequent terms if nominated by the Nominating & Corporate Governance Committee and elected by the Company’s stockholders. As an employee
(non-independent) director, Executive shall no longer be eligible for cash or equity compensation for Executive’s service on the Board of Directors effective as of the Commencement Date. 

(b)    Loyal and Full Time Performance of Duties.  While employed by ServiceSource, Executive shall not
directly or indirectly, engage in any Competitive Activity. For the purpose of this Agreement, “Competitive Activity” is any activity which is the same as or directly competitive with a principal line of business of ServiceSource
during Executive’s employment by ServiceSource. As of the date of this Agreement, Competitive Activities include the provision of outsourced renewals management, outsourced inside sales, and outsourced customer success business processes and
outcomes. 
 (c)    ServiceSource Policies.  Executive agrees to abide by ServiceSource’s rules,
regulations, policies and practices, as they may from time to time be adopted or modified by ServiceSource at its sole discretion, provided Executive first has been notified of such rules, regulations, policies and practices. ServiceSource’s
written rules, policies, practices and procedures shall be binding on Executive unless superseded by or in conflict with this Agreement. 

3. EMPLOYMENT AT-WILL.  Executive and ServiceSource acknowledge and agree that during
Executive’s employment with ServiceSource the parties intend to strictly maintain an at-will employment relationship. This means that at any time during the course of Executive’s employment with
ServiceSource, Executive is entitled to resign with or without cause and with or without advance notice. Similarly, ServiceSource specifically reserves the same right to terminate Executive’s employment at any time with or without cause and
with or without advance notice. Nothing in this Agreement or the relationship between the parties now or in the future may be construed or interpreted to create an employment relationship for a specific length of time or a right to continued
employment. Executive and ServiceSource understand and agree that only ServiceSource’s Chief Executive Officer possesses the authority to alter the at-will nature of Executive’s employment status,
and that any such change may be made only by an express written employment contract signed by ServiceSource’s Chief Executive Officer. No implied contract concerning any employment-related decision or term or condition of employment can be
established by any other statement, conduct, policy or practice. 

  
 1 

 

 
  

 4. CASH COMPENSATION. 

(a)    Base Salary and Bonus.  In consideration for the services and covenants described in this
Agreement, ServiceSource agrees to pay Executive an annual base salary of four hundred thousand dollars ($400,000) paid on ServiceSource’s normal payroll dates, subject to all applicable withholdings. In addition, for the 2019 calendar year and
subsequent years, Executive will be eligible for additional potential compensation pursuant to the Corporate Incentive Plan (“CIP”) equal to 75% of Executive’s annual base salary. 

(b)    CIP Details.  The CIP is a discretionary incentive program that ServiceSource funds based on the
achievement of business results and individual objectives established by ServiceSource and may also be subject to applicable performance requirements as determined by the Board of Directors or its Compensation Committee in their sole discretion. As
a direct report to the CEO, Executive will not be eligible to receive H1 (first half) CIP payment, and will be eligible for only one CIP payment per year. Except as otherwise specifically provided in this Agreement, Executive must be employed as of
the date of the scheduled CIP payment in order to be eligible to receive the CIP payment. 
 (c)    Changes to
Compensation.  Executive’s annual base salary and potential annual target CIP bonus amount may be changed from time to time by mutual agreement of Executive and ServiceSource, and any such mutually-agreed upon change shall be
deemed to supersede and replace this Section 4. 
 5. EQUITY COMPENSATION. 

(a)    Eligibility.  Executive will be eligible to participate in the ServiceSource International, Inc.
2011 Equity Incentive Plan (the “Equity Incentive Plan”) and the ServiceSource International, Inc. 2011 Employee Stock Purchase Plan, subject to the requirements of the applicable plan. 

(b)    Initial Restricted Stock Units Grant.  The Company will recommend to the Board of Directors (or
its Compensation Committee) that Executive be granted three hundred thousand (300,000) restricted stock units (“RSUs”) under the Equity Incentive Plan. The proposed RSUs will be scheduled to vest as follows: (i) twenty-five
percent (25%) of Executive’s RSUs will vest on the first anniversary of the Grant Date and (ii) the remaining RSUs will vest in three equal installments on each of the second, third and fourth anniversary of the Grant Date (the
“Standard Vesting”). Vesting shall be subject to Executive remaining as a Service Provider (as such term is defined in the Equity Incentive Plan) through each vesting date, subject to any acceleration of vesting as provided in this
Agreement. Note that the above grant and its terms remain subject to approval by the Board of Directors (or the Compensation Committee), and to the terms and conditions of the Equity Incentive Plan and related RSU agreement, and that any granted
shares will be subject to all applicable state and federal tax and securities laws. The date the equity compensation is approved by the Board of Directors (or Compensation Committee) is referred to in this Agreement as the “Grant
Date.” 
 (c)    Initial Stock Option Grant.  The Company will recommend to the Board
of Directors (or its Compensation Committee) that Executive be granted a nonqualified stock option to purchase up to five hundred thousand (500,000) shares of ServiceSource’s common stock (a “Share”) under the Equity Incentive Plan
(the “Option”), at an exercise price per share equal to the fair market value on the Grant Date of a single Share as determined under the Equity Incentive Plan. The Option will be scheduled to vest as follows: (i) twenty five
percent (25%) of the Shares underlying the Option shall vest on the first anniversary of the Grant Date and (ii) the remaining seventy five percent (75%) of the Shares underlying the Option shall vest monthly on a pro rata basis over the
following thirty six (36) 

  
 2 

 

 
  

 
months such that all Options would have vested in full within forty-eight (48) months after the Grant Date. Vesting shall be subject to Executive remaining as a Service Provider (as such
term is defined in the Equity Incentive Plan) through each vesting date, subject to any acceleration of vesting as provided in this Agreement. Note that the above grant and its terms remain subject to approval by the Board of Directors (or the
Compensation Committee), and to the terms and conditions of the Equity Incentive Plan and a related stock option agreement, and that any granted shares will be subject to all applicable state and federal tax and securities laws. 

(d)    Eligibility for Annual Grants.  Commencing in 2019, Executive will be eligible to participate in
the executive performance share program, as such program may be modified, superseded, or replaced by the Compensation Committee or the Board of Directors. Any applicable performance targets, and Executive’s performance against such targets,
shall be determined by the Board of Directors in its sole discretion. 
 (e)    Existing Equity Grants
from Board Service.  Executive’s equity compensation received prior to the Commencement Date in exchange for his service on the Board of Directors (collectively, the “Board Service Equity Grants”) shall continue to vest
in accordance with their terms. 
 6. BENEFITS.  As a full-time employee, Executive shall be entitled to all of the
benefits provided to ServiceSource employees, in accordance with any benefit plan or policy adopted by ServiceSource from time to time during the existence of this Agreement. Executive’s rights and those of Executive’s dependents under any
such benefit plan or policy shall be governed solely by the terms of such plan or policy. ServiceSource reserves the right to cancel or change the benefit plans and policies it offers to its employees at any time. ServiceSource reserves to itself or
its designated administrators exclusive authority and discretion to determine all issues of eligibility, interpretation and administration of each such benefit plan or policy. 

7. PAID TIME OFF.  Per Company policy, at Executive’s level, Executive will not accrue paid time off or be required to
track or report paid time off. Instead, time off is left to the mutual agreement of Executive and the CEO. 
 8. PROPRIETARY AND
CONFIDENTIAL INFORMATION (INCLUDING TRADE SECRETS).  Executive acknowledges that his employment with ServiceSource allows his access to Proprietary and Confidential Information. Executive understands that Proprietary and
Confidential Information includes customer and applicant lists, whether written or solely a function of memory, databases, business files, contracts and all other information used in the day-to-day operation of ServiceSource that is not known to persons not employed by ServiceSource and that ServiceSource undertakes efforts to maintain its secrecy. Executive understands and agrees that the
Proprietary and Confidential Information is confidential information that the law treats as privileged, therefore protecting an employer from use without consent. 

(a)    Definition.  “Proprietary and Confidential Information” is defined as all
information and any idea in whatever form, tangible or intangible, of a confidential or secret nature that pertains in any manner to the business of ServiceSource. As used in this Agreement, the term “Confidential Information”
includes any and all non-public information relating to ServiceSource or its business, operations, financial affairs, performance, assets, pricing and pricing strategies, technology, research and development,
processes, products, contracts, customers, licensees, sublicensees, suppliers, personnel, plans or prospects, whether or not in written form and whether or not expressly designated as confidential, including any such information consisting of or
otherwise relating to trade secrets, know-how, technology (including software and programs), designs, drawings, photographs, samples, processes, license or sublicense arrangements, formulae, proposals, product
specifications, customer lists or preferences, referral sources, marketing or sales techniques or plans, operating manuals, service manuals, financial information or projections, lists of suppliers or distributors or sources of supply. 

  
 3 

 

 
  

 Proprietary and Confidential Information includes both information developed by Executive for
ServiceSource and information Executive obtained while in ServiceSource’s employment. All Proprietary and Confidential Information, whether created by Executive or other employees, shall remain the property of ServiceSource. 

(b)    Non-Disclosure and Return.  Executive agrees that he will
not, under any circumstances, or at any time, whether as an individual, partnership, or corporation, or employee, principal, agent, partner or shareholder thereof, in any way, either directly or indirectly, divulge, disclose, copy, use, divert or
attempt to divulge, disclose, copy, use or divert ServiceSource’s Proprietary and Confidential Information, except to the extent authorized and necessary to carry out Executive’s responsibilities during employment with ServiceSource, or as
required by law. Upon termination of Executive’s employment with ServiceSource, Executive shall immediately return to ServiceSource all property in Executive’s possession or control that belongs to ServiceSource, including all property in
electronic form and all copies of Proprietary and Confidential Information. 
 (c)    Former Employer
Information.  Executive agrees that Executive will not, during Executive’s employment with ServiceSource, improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person
or entity and that Executive will not bring onto the premises of ServiceSource any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.
Executive represents and warrants to ServiceSource that Executive is not in breach of any agreement with any former Employer by accepting employment with ServiceSource. 

(d)    Third Party Information.  Executive recognizes that ServiceSource may have received and in the
future may continue to receive from third parties their confidential or proprietary information as they may so designate, subject to a duty on ServiceSource’s part to maintain the confidentiality of such information and to use it only for
certain limited purposes. Executive agrees to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out
Executive’s work for ServiceSource consistent with ServiceSource’s agreement with such third party. 

(e)    Notification to New Employer.  In the event that Executive’s employment with ServiceSource
ends, Executive consents to notification by ServiceSource to any subsequent employer of Executive’s rights and obligations under this Agreement. 

(f)    No Solicitation of Clients Using Proprietary and Confidential Information.  Executive acknowledges
and agrees that the names, addresses, and contact information of ServiceSource’s clients and all other confidential information relating to those clients, have been compiled by ServiceSource at great expense and represent a real asset of
ServiceSource. Executive further understands and agrees that this information is deemed confidential by ServiceSource and constitutes trade secrets of ServiceSource. Executive understands that this information has been and will be provided to
Executive in confidence, and Executive agrees that the sale or unauthorized use or disclosure of any of ServiceSource’s trade secrets obtained by Executive during employment with ServiceSource constitutes unfair competition. Executive agrees
and promises not to engage in any unfair competition with ServiceSource. Executive further agrees not to, directly or indirectly, during or after termination of employment, make known to any person, firm, or company any Proprietary and Confidential
Information concerning any of the clients of ServiceSource. In addition, Executive shall 

  
 4 

 

 
  

 
not use any such Proprietary and Confidential Information to solicit, take away, or attempt to call on, solicit or take away any of the clients of ServiceSource on whom Executive called or whose
accounts Executive had serviced during employment with ServiceSource, whether on Executive’s own behalf or for any other person, firm, or ServiceSource. 

(g)    No Solicitation of Employees.  Executive understands and acknowledges that as an employee of
ServiceSource he has certain fiduciary duties to ServiceSource that would be violated by the solicitation and/or encouragement of ServiceSource employees to leave the employ of ServiceSource. Executive therefore agrees that he will not, either
during his employment or for a period of one year after his employment has terminated, solicit any of ServiceSource’s employees for a competing business or otherwise induce or attempt to induce such employees to terminate employment with
ServiceSource, either directly or through any third parties. Executive agrees that any such solicitation during such one-year period would constitute unfair competition. 

(h)    Assignment of Rights.  All Proprietary and Confidential Information and all patents, patent
rights, copyrights, trade secret rights, trademark rights and other rights (including intellectual property rights) owned by or otherwise belonging to ServiceSource anywhere in the world in connection therewith, is and shall be the sole property of
the ServiceSource. Executive hereby assigns to ServiceSource any and all rights, title and interest Executive may have or acquire in ServiceSource’s Proprietary and Confidential Information and ServiceSource’s property. 

9. SEVERANCE BENEFITS. 

(a)    Termination Without Cause or Resignation for Good Reason.  If ServiceSource terminates
Executive’s employment without Cause or if Executive resigns for Good Reason (as such terms are defined below) then the following will apply: 

(i) Base Salary Severance.  Executive shall receive nine (9) months of Executive’s then-current
base salary, paid out in the Company’s normal pay cycle over the nine-month period following termination (the “Severance Period”) and subject to all applicable withholding requirements. This severance payment will only be paid so long
as Executive does not engage in any Competitive Activity during the Severance Period. 
 (ii) CIP
Payment.  Executive will be paid for CIP earned while an employee prior to the termination date and through the period nine (9) months following the termination date, even if not employed on the
pay-out date as required by the CIP plan. The CIP payment will be paid out per the normal pay cycle in or around February and will be based on Company achievement per the applicable plan, and accordingly all
such CIP payments shall be treated as “short-term deferrals” exempt from the requirements of Code Section 409A. 

(iii) Equity Acceleration.  Executive’s outstanding equity compensation awards (with the exception of
the Board Service Equity Grants) shall immediately have vesting accelerated twelve (12) months from the last date of employment. 

(iv) COBRA Coverage.  Executive shall be entitled to receive an additional
lump-sum payment (less applicable withholding taxes) equal to the product obtained by multiplying nine (9) by the amount of the monthly premium that would be required for the first month of coverage under
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended and all applicable regulations (referred to collectively as “COBRA”), with the premium calculated on the assumption that the Executive in fact elects coverage for
himself, and any eligible spouse and/or dependents of the Executive that were enrolled in the applicable 

  
 5 

 

 
  

 
Company health plan immediately prior to his last date of employment. Executive will be eligible for this payment without regard to whether he actually elects COBRA continuation coverage. Such
payments shall be made on the fifty-third (53rd) day following Executive’s employment termination date. 

(b)    Termination Without Cause or Resignation for Good Reason Following a Change in Control (Equity
Acceleration).  If ServiceSource or a successor should terminate Executive’s employment without Cause or Executive should resign from his employment for Good Reason, in either case within eighteen (18) months following a
“Change in Control” (as defined below), then in addition to the benefits set forth above in Section 9(a)(i) (Base Salary Severance), Section 9(a)(ii) (CIP Payment), and 9(a)(iv) (COBRA payments), all of Executive’s
outstanding equity compensation awards (with the exception of the Board Service Equity Grants) shall immediately have their vesting accelerated 100%, so as to become fully vested. 

(c)    Definitions: For purposes of this Section 9: 

(i) “Cause” shall mean the occurrence of any of the following events: (i) Executive’s commission of
any felony or any crime involving fraud or dishonesty under the laws of the United States or any state thereof; (ii) Executive’s commission of, or participation in, a fraud or act of dishonesty against ServiceSource;
(iii) Executive’s willful violation of any contract or agreement between Executive and ServiceSource or any statutory duty owed to ServiceSource; (iv) Executive’s unauthorized use or disclosure of Proprietary and Confidential
Information; or (v) Executive’s gross misconduct; and 
 (ii) “Good Reason” shall mean the
occurrence of any one of the following events, without Executive’s written consent: (1) a material adverse change in Executive’s job title as offered in this Agreement, including the assignment of the same job title at the divisional
level of any lesser organizational unit (for the avoidance of doubt, Executive having the same position as offered in this Agreement for a division or subsidiary of ServiceSource or of the surviving entity following a Change of Control, rather than
having that job title for the entire surviving parent entity, would be Good Reason); (2) a material adverse change in Executive’s duties, authorities or job responsibilities that is not commensurate with the role as offered in this Agreement;
(3) a relocation of Executive’s principal place of employment beyond the metropolitan area of Denver, Colorado (though frequent travel to ServiceSource’s global locations is an inherent part of the job); (4) a change in reporting
relationship to any individual other than ServiceSource’s Chief Executive Officer, or (5) any material reduction in Executive’s base salary, target bonus or aggregate level of benefits; provided that Executive has notified
ServiceSource in writing of the event described in (1), (2), (3), (4), or (5) above within ninety (90) days after the occurrence of such event, ServiceSource (or its successor) has within thirty (30) days thereafter failed to restore
Executive to the appropriate job title, duties, authorities, responsibility, location, reporting relationship, salary, target commissions or benefits and Executive actually terminates employment within thirty (30) days following the expiration
of ServiceSource’s thirty (30)-day cure period described above; and 
 (iii)
“Change of Control” shall mean the occurrence of one of the following events: a sale of all or substantially all of the shares of stock of ServiceSource; a merger, consolidation or similar transaction involving ServiceSource
following which the persons entitled to elect a majority of the members of the Board of Directors of ServiceSource immediately before the transaction are not entitled to elect a majority of the members of the Board of Directors of ServiceSource or
the surviving entity following the transaction; or a sale of all or substantially all of the assets of ServiceSource. As applied relative to a Change of Control, the Good 

  
 6 

 

 
  

 
Reason standards will all be based from terms in effect immediately prior to the Change of Control. Notwithstanding the foregoing, a transaction shall not constitute a Change of Control unless
the transaction qualifies as a “change in control event” within the meaning of Section 409A. 

(d)    Release.  Notwithstanding the foregoing, the severance benefits described in this Section 9
are subject to Executive’s execution and delivery of a binding general separation and release of claims agreement, which includes language consistent with Schedule A hereto, and such release shall become effective, binding and
irrevocable in accordance with its terms within fifty-two (52) days following the termination date. No severance payments or vesting acceleration under this Agreement shall be paid or provided unless and
until the release becomes effective. Any severance payment to which Executive is entitled that would otherwise be paid on or prior to the 52nd day following the termination date shall be withheld
and shall instead be paid by ServiceSource in full on the fifty-third (53rd) day following Executive’s employment termination date or such later date as is required to avoid the imposition of
additional taxes under Code Section 409A and the regulations and guidance thereunder, and any applicable state law equivalent (together, “Section 409A”). 

(e)    Section 409A Compliance.  Notwithstanding any provision to the contrary herein,
no Deferred Payments (as defined below) that become payable under this Agreement by reason of Executive’s termination of employment with ServiceSource (or any successor entity thereto) will be made unless such termination of employment
constitutes a “separation from service” within the meaning of Section 409A. Further, if Executive is a “specified employee” of ServiceSource (or any successor entity thereto) within the meaning of Section 409A on the
date of Executive’s termination of employment (other than a termination of employment due to death), then the Deferred Payments that are payable within the first six (6) months following Executive’s termination of employment, shall be
delayed until the first payroll date that occurs on or after the date that is six (6) months and one (1) day after the date of Executive’s termination of employment, when they shall be paid in full arrears. All subsequent Deferred
Payments, if any, will be paid in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following Executive’s employment termination but prior to the six
(6) month anniversary of his employment termination, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of death and all other Deferred Payments will
be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of
Section 409A-2(b)(2) of the Treasury Regulations (for avoidance of doubt, the foregoing shall be interpreted to provide as well that any payments to be made in installments shall be deemed to be a series
of separate payments). For the purposes of this Agreement, “Deferred Payment” means any severance pay or benefits to be paid or provided to Executive (or Executive’s estate or beneficiaries) pursuant to this Agreement and any
other severance payments or separation benefits, that in each case, when considered together, are considered deferred compensation under Section 409A. The foregoing provisions and all payments and benefits under this Agreement are intended to
be exempt from or comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous
terms herein will be interpreted to so comply or be exempt. ServiceSource and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable
to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. 

  
 7 

 

 
  

 (f)    Termination of Employment for Other Reasons.  The
above severance benefits in this Section 9 shall not be paid or provided in the event of the termination of Executive’s employment due to Executive’s death, disability or resignation (other than a resignation for Good Reason upon or
following a Change in Control as set forth above), or the termination of his employment by ServiceSource or its successor for Cause (as defined above). For purposes of clarity, a termination by reason of Executive’s death or disability shall
not be deemed a termination without “Cause” under this Agreement. 
 10. SEVERABILITY.  In the event that
any provision of this Agreement is determined by a court of competent jurisdiction to be illegal, invalid or unenforceable to any extent, such term or provision shall be enforced to the fullest extent permissible under the law and all remaining
terms and provisions hereof shall continue in full force and effect. 
 11. MODIFICATION OF AGREEMENT.  This
Agreement may be modified only in writing by mutual agreement of ServiceSource and Executive. Any such writing must specifically state that it is intended to modify the parties’ Agreement and state which specific provision or provisions this
writing intends to modify. Such written modification will only be effective if signed by ServiceSource’s Chief Executive Officer or General Counsel. Any attempt to modify this Agreement orally, or by a writing signed by any person other than
ServiceSource’s Chief Executive Officer or General Counsel, or by any other means, shall be null and void. This Agreement is intended to be the final and complete statement of the parties’ agreement concerning the legal nature of their
employment relationship in any and all disputes arising from that relationship. 
 12. COMPLETE AND VOLUNTARY
AGREEMENT.  This Agreement constitutes the entire understanding of the parties on the subject covered. The parties expressly warrant that they have read and fully understand this Agreement; that they have had the opportunity to
consult with legal counsel of their own choosing to have the terms of this Agreement fully explained to them; that they are not executing this Agreement in reliance on any promises, representations or inducements other than those contained herein;
and that they are executing this Agreement voluntarily, free of any duress or coercion. 
 13. DISPUTE
RESOLUTION.  This Agreement shall be governed by Colorado law, without regard to its principles of conflicts of laws. Any dispute arising from this Agreement shall be subject to the exclusive jurisdiction of state and federal
courts located in Denver, Colorado, and each party hereby waives any and all objections to that venue. The prevailing party in any such dispute shall recover its reasonable attorneys’ fees and costs from the losing party, including any fees or
costs arising from an appeal. 
 14. SUCCESSORS AND ASSIGNS.  This Agreement will be binding upon Executive’s
heirs, executors, administrators and other legal representatives and will be for the benefit of ServiceSource, its successors, and its assigns. 

15. GOLDEN PARACHUTE BEST AFTER TAX RESULTS.  If any of the payments to Executive (prior to any reduction, below) provided
for in this Agreement, together with any other payments which Executive has the right to receive from ServiceSource or any corporation which is a member of an “affiliated group” as defined in Section 1504(a) of the Internal Revenue
Code of 1986, as amended (“Code”), without regard to Section 1504(b) of the Internal Revenue Code), of which ServiceSource is a member (the “Payments”) would constitute a “parachute payment” (as
defined in Section 280G(b)(2) of the Code), and if the Safe Harbor Amount is greater than the Taxed Amount, as determined on a net, after-tax basis as described below, then the total amount of such
Payments shall be reduced to the Safe Harbor Amount. The “Safe Harbor Amount” is the largest portion of the Payments that would result in no portion of the Payments being subject to the excise tax set forth at Section 4999 of
the Code (“Excise Tax”). The “Taxed Amount” is the total amount of the Payments 

  
 8 

 

 
  

 
(without any reduction, above) notwithstanding that all or some portion of the Payments may be subject to the Excise Tax. Solely for the purpose of comparing which of the Safe Harbor Amount and
the Taxed Amount is greater, the determination of each such amount, shall be made on an after-tax basis, taking into account all applicable federal, state and local employment taxes, income taxes, and, if
applicable, the Excise Tax (all of which shall be computed at the highest applicable marginal rate regardless of Executive’s actual marginal rate). If a reduction of the Payments to the Safe Harbor Amount is necessary, then the reduction shall
occur in the following order: reduction of cash payments; cancellation of accelerated vesting of equity awards the value of which is not determined under Q&A 24(c) of the 280G Treasury Regulations; cancellation of accelerated
vesting of equity awards the value of which is determined under Q&A 24(c) of the 280G Treasury Regulations; and reduction of employee benefits. In the event that acceleration of vesting of a category of equity awards is to be
reduced, such acceleration of vesting shall be cancelled in the reverse order of the date on which awards of such category would have vested absent the change in control transaction. If two or more equity awards of the same category are granted on
the same date, and reduction of acceleration is required under this paragraph, each award will be reduced on a pro-rata basis. In no event shall Executive have any discretion with respect to the ordering of
payment reductions. ServiceSource and its tax advisors shall make all determinations and calculations required to be made to effectuate this paragraph at ServiceSource’s expense. 

 

									
	 SERVICESOURCE INTERNATIONAL, INC.
	 		 	 EXECUTIVE

					
	 By:
	 	/s/ Patricia Elias	 		 		 	/s/ Richard G. Walker
	Name:	 	 Patricia Elias
	 		 		 	 Richard G. Walker

	Title:	 	 EVP, General Counsel
	 		 		 	

  
 9 

 

 
  

 SCHEDULE A 

FORM OF RELEASE 

In exchange for the consideration provided by ServiceSource International, Inc. or its successor (the “Company”) to the undersigned current or
former employee of the Company (the “Employee”) under this Agreement or the employment agreement between the Company and the Employee, that Employee is not otherwise entitled to receive, and subject to the Company’s compliance with
its post-termination obligations to Employee, Employee hereby generally and completely releases the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities,
insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Agreement. This
general release includes: (1) all claims arising out of or in any way related to Employee’s employment with the Company or the termination of that employment; (2) all claims related to Employee’s compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful
termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and
local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the
federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the Family and Medical Leave Act; the Employee Retirement Income Security Act; any state labor code; the Equal Pay Act, of 1963, as amended.
Notwithstanding the above, it is understood and agreed to by the parties that neither party is waiving rights relative to compliance with those terms of the Employment Agreement and Company’s Proprietary Confidential Information Agreement that
impose duties on either party upon and following Employee’s termination of employment. 
 ADEA Waiver and Release.  Employee
acknowledges that Employee knowingly and voluntarily waives and releases any rights Employee may have under the ADEA, as amended. Employee also acknowledges that the consideration given for the waiver and release in the preceding paragraph hereof is
in addition to anything of value to which Employee was already entitled. Employee further acknowledges that Employee has been advised by this writing, as required by the ADEA, that: (a) this waiver and release does not apply to any rights or
claims that may arise after the execution date of this Agreement; (b) Employee has been advised that he has the right to consult with an attorney prior to executing this Agreement; (c) Employee has been given
twenty-one (21) days to consider this Agreement; (d) Employee has seven (7) days following the execution of this Agreement by the parties to revoke the Agreement; and (e) this Agreement
will not be effective until the date upon which the revocation period has expired, which will be the eighth day after this Agreement is executed by Employee, provided that the Company has also executed this Agreement by that date
(“Effective Date”). The parties acknowledge and agree that revocation by Employee of the ADEA Waiver and Release is not effective to revoke his waiver or release of any other claims pursuant to this Agreement. 

  
 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}]]