Document:

EXHIBIT 10.2

                                  May 22, 2000

PERSONAL AND CONFIDENTIAL                                            VIA HAND

Paul J. Pucino
3654 Barham Blvd.
Los Angeles, CA   90068

Dear Paul:

      On behalf of Tekelec, I am pleased to offer you employment as Vice
President and Chief Financial Officer, on the terms and conditions set forth in
this letter. As Vice President and Chief Financial Officer you will report
directly to Tekelec's Chief Executive Officer, will be principally responsible
for Tekelec's financial matters and will have such other duties and
responsibilities as may be delegated to you from time to time by the Chief
Executive Officer and/or the Board of Directors. You may choose your employment
start date so long as it is on or before June 5, 2000.

      Your compensation and benefits will be as follows:

      1.    Your starting annual base salary will be $230,000 (i.e., $8,846.15
            per bi-weekly period).

      2.    You will be eligible to participate in Tekelec's 2000 Officer Bonus
            Plan, under which you will be eligible to receive up to 70% of your
            annual base salary earned during 2000 as a cash bonus if Tekelec
            achieves certain financial milestones in 2000. For 2000, you will be
            guaranteed a minimum bonus of $50,000 which will be paid during the
            first quarter of 2001. This represents half of the bonus for which
            you would be eligible based on your participation in the Plan for
            seven months of 2000.

      3.    You will be entitled to a $20,000 report to work bonus payable on
            your first check.

      4.    You will be entitled to take four weeks personal time annually.

<PAGE>

                                                                    EXHIBIT 10.2

      5.    You will receive applicable benefits, including health, dental,
            vision, long-term disability and life insurance, as are generally
            provided to Tekelec's executive officers.

      6.    You will be offered the opportunity to participate in Tekelec's
            Employee Stock Purchase Plan and 401(k) Plan upon your satisfaction
            of the eligibility requirements for such plans.

      7.    You will be covered by Tekelec's Officer Severance Plan (a copy of
            which is enclosed).

      8.    The Compensation Committee of Tekelec will grant to you stock
            options (incentive stock options to the maximum extent permitted
            under law, with the balance being nonstatutory stock options) under
            Tekelec's 1994 Stock Option Plan (the "Plan") to purchase 225,000
            shares of Tekelec Common Stock ("Options"), effective as of the
            later of your start date or the date of the Compensation Committee's
            action granting such options (the "grant date"). The exercise price
            of your Options will be equal to the closing price of Tekelec's
            Common Stock on the grant date (as reported in THE WALL STREET
            JOURNAL on the first business day following the grant date). Your
            Options will vest to the extent of 56,250 shares on the one-year
            anniversary of your start date. The remaining 168,750 shares will
            vest and become exercisable cumulatively in 12 equal quarterly
            installments of 14,062.5 shares each, with the first installment
            vesting on September 30, 2001 and one additional installment vesting
            on the last day of each calendar quarter thereafter as long as you
            remain an employee of Tekelec. Your Options will expire, to the
            extent previously unexercised, upon the earlier of ten years from
            the date of grant or a date not less than three months after you
            cease to be a Tekelec employee as determined in accordance with the
            terms of the Plan. The Options will in all respects be subject to
            the terms and provisions of the Plan and the stock option agreement
            evidencing the grant of the Options. In addition to the foregoing
            grant, it is anticipated that the Compensation Committee will
            periodically, typically annually, consider whether additional
            options should be granted to you while you remain an officer of the
            Company.

      You are aware that Tekelec prohibits employees from unlawfully using
confidential or proprietary information belonging to any other person or entity.
By signing the enclosed copy of this letter, you agree not to disclose or use or
induce Tekelec or any of its employees to use any trade secrets or confidential
or proprietary information belonging to any of your former employers.

      As a condition of commencing your employment with Tekelec, you will be
required to sign Tekelec's standard "Confidentiality and Non-Disclosure
Agreement and Assignment of Rights" (a copy of which is enclosed). As with every
Tekelec employee, you

<PAGE>

                                                                    EXHIBIT 10.2

reserve the right to terminate your employment at any time for any reason, and
we similarly reserve the right to terminate your employment at any time, with or
without cause. We hope and expect, however, that this will be a long and
mutually beneficial relationship.

      This letter agreement contains our entire understanding with respect to
your employment with Tekelec and supercedes and replaces in its entirety that
certain employment offer letter dated May 9, 2000 previously sent to you. The
provisions of this letter may be amended only by a writing signed by you and
Tekelec. If you have any questions about the meaning of any of the terms or
provisions included herein, please let me know at your earliest convenience.
This letter agreement shall be construed under the laws of California.

      Paul, we believe that Tekelec can provide you with opportunities for
professional growth and financial return. We look forward to working with you
and to a mutually fulfilling and rewarding relationship.

      If this letter agreement is acceptable to you, then please acknowledge
your acceptance by signing and dating the enclosed copy of this letter agreement
where indicated below and then faxing (fax number: 818.880.0176) and returning
such signed copy to me for receipt no later than May 24, 2000.

                                          Sincerely,

                                          Michael L. Margolis
                                          Chief Executive Officer and President

Acknowledged and Accepted:

____________________________________      Date:  May ___, 2000
Paul PucinoSecured Party Bill of sale
                             -------------------------

           THE CIT GROUP/COMMERCIAL SERVICES, INC., having an office at 1211
  Avenue of the Americas, New York, New York 10036, as a secured party in
  possession ("Secured Party"), as of this 30th day of June, 2000, hereby sells,
  transfers and conveys all of the rights, title and interest of Secured Party
  and of Ann Travis, Inc. ("Debtor") to DONNKENNY APPAREL, INC., having an
  office at 1411 Broadway, New York, New York 10018 ("Purchaser"), its
  successors and assigns, in and to certain property (collectively, the "Assets)
  described on Exhibit A, attached hereto and made a part hereof, for an
  aggregate purchase price of One Million One Hundred Forty Thousand Dollars
  ($1,140,000), the receipt and sufficiency of which is hereby acknowledged.

           Secured Party represents and warrants to Purchaser that (a) it holds
  a perfected first security interest in the Assets, (b) it has taken possession
  of the Assets, (c) the sale of the Assets is being made in a commercially
  reasonable manner pursuant to Section 9-504 of the New York Commercial Code,
  (d) the inventory portion of the Assets has a cost value of not less than One
  Million Dollars ($1,000,000), (e) upon consummation of such sale, the Assets
  are free and clear of any liens or security interests or adverse claim, (f)
  upon consummation of such sale, the Purchaser has the sole and exclusive right
  to possession of the Assets, and (g) upon consummation of such sale, Purchaser
  will have valid and marketable title to the Assets, but only to the same
  extent that Debtor had valid and marketable title to the Assets immediately
  prior to the Second Party's taking possession of the Assets.

           Notwithstanding anything herein or otherwise to the contrary, Secured
  Party hereby agrees that, in connection with the transactions contemplated
  hereby, Purchaser is not assuming any liability or obligation of the Debtor.

           Secured Party hereby agrees to indemnify and hold Purchaser harmless
  from and against any and all claims, actions, causes of action, losses,
  damages, liabilities and expenses (including reasonable attorneys' fees and
  expenses) arising out of (a) a breach of any representation or warranty made
  by Secured Party herein or (b) any claim of any third party (the "Claim") in
  any way relating to transactions occurring at, prior to or contemplated by the
  delivery of this Bill of Sale (the "Indemnity"). Purchaser shall promptly
  notify Secured Party in writing if a third party makes a Claim ("Notice of
  Claim"); provided that any such failure to so notify the Secured Party shall
  only relieve the Secured Party of its obligations hereunder to the extent that
  the Secured Party is materially and adversely prejudiced thereby. In any such
  event, Purchaser shall promptly deliver to Secured Party all relevant
  communications and documentation pertaining to such Claim. Upon receipt of a
  Notice of Claim, Secured Party shall promptly with

<PAGE>

        counsel of its choice defend against the Claim to the extent covered by
        the Indemnity and identified in the Notice of Claim. If Secured Party
        shall fail to act promptly as aforesaid and shall further fail to so act
        promptly after written notice for Purchaser to Secured Party specifying
        Secured Party's failure to so act ("Default Notice"), Purchaser shall
        have the right to undertake the defense of such Claim itself, with
        counsel of its choice and shall be reimbursed by Secured Party for its
        reasonable attorneys' fees and expenses in connection therewith. Subject
        to the immediately preceding sentence, Secured Party shall have the
        exclusive right to defend and/or proceed with and prosecute all
        proceedings, negotiations, settlements and compromises involving Claims
        covered in whole or in part by the Indemnity with counsel of its choice,
        and in the case of settlements and compromises, on terms reasonably
        acceptable solely to Secured Party provided that to the extent
        Purchaser's access to possession, use and ability to dispose of the
        Assets are actually being interfered with Purchaser shall have the
        right, at the Secured Party's expense, to employ counsel of its own
        choice and in such event and to such extent, Secured Party's counsel and
        Purchaser's counsel shall cooperate with respect to the defense of any
        Claim covered in whole or in part by the Indemnity.

                 Purchaser hereby agrees to reimburse Secured Party for any
        amounts paid to a third party by the Secured Party on behalf of Debtor
        prior to the closing of the purchase and sale transaction being effected
        hereby, provided that (i) such amounts relate directly to the cost of
        the inventory that is part of the Assets that are being purchased hereby
        and (ii) Secured Party provides satisfactory documentation to the
        Purchaser regarding the requirement described in clause (i) hereof.

                 In addition, the Purchaser agrees to post letters of credit in
        favor of the Secured Party in an aggregate amount equal to $479,911 to
        serve as back-to-back letters of credit to the letters of credit listed
        on Exhibit E as to which the Debtor is the account party.

                                       -2-

<PAGE>

           EXCEPT AS SPECIFICALLY PROVIDED ABOVE, THE SALE, TRANSFER AND
  CONVEYANCE OF ALL OF THE ASSETS BY SECURED PARTY TO PURCHASER AND PURCHASER'S
  PURCHASE OF THE ASSETS IS MADE "AS IS" AND "WHERE IS" AND WITHOUT ANY
  WARRANTIES BY, REPRESENTATIONS BY OR RECOURSE TO SECURED PARTY OF ANY KIND,
  NATURE OF DESCRIPTION WHATSOEVER, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES
  AND/OR REPRESENTATIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
  PHYSICAL CONDITION, QUANTITY OR VALUE.

           IN WITNESS WHEREOF, Secured Party has executed and delivered this
  Bill of Sale on the date first above written.

                                                THE CIT GROUP/COMMERCIAL
                                                SERVICES, INC.

                                                /s/
                                                --------------------------
                                                By:
                                                Title:

      READ AND AGREED:

      DONNKENNY APPAREL, INC.

      /s/Daniel H. Levy
      ------------------------
      By: Daniel H. Levy
      Title:CHARIMAN OF THE BOARD
            CHIEF EXECUTIVE OFFICER

                                      -3-
<PAGE>

                                    EXHIBIT A
                                       TO
                                  Bill of Sale
                                     between
                     THE CIT GROUP/COMMERCIAL SERVICES, INC.
                                       and
                             DONNKENNY APPAREL, INC.

           The Assets being sold hereunder consist of the following property
  presently owned by Ann Travis, Inc. (a) all inventory; (b) all general
  intangibles, including, but not limited to, all open purchase orders, all
  transferable license agreements (including , to the extent transferable, the
  license agreement with Delta Burke, but excluding the license agreement with
  Eileen West) and the tradenames "Decade Designs" and "A.Q. Collection"; and
  (c) the books and records relating to the foregoing.

           This sale excludes all other property whatsoever of whatsoever kind
  and nature owned by Ann Travis, Inc., including, but not limited to all
  accounts and the goods represented thereby including but not limited to all
  returns from customers of Ann Travis, Inc.

<PAGE>

                                    EXHIBIT B
                                       To
                                  Bill of Sale
                                     between

                     THE CIT GROUP/COMMERCIAL SERVICES, INC.
                                       and
                             DONNKENNY APPAREL, INC.

  <TABLE>
  <CAPTION>

          Letter of

          Credit No.             Amount             Expiration          Issuer        Beneficiary
          ----------             ------             ----------          ------        ----------
  <S>                            <C>                <C>                 <C>           <C>
          A-202293               $453,047           8/2/00              Chase         Cotton Land
          A-299835               $26,864            7/7/00              Chase         Jiangsu Silk I/E
                                                                                      Group Corp.
</TABLE>

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