Document:

Option Cancellation Agreement

 Exhibit 10.21 
  
 OPTION CANCELLATION AGREEMENT 
  
 THIS OPTION CANCELLATION AGREEMENT (this “Agreement”) is
entered into as of January 31, 2005 among Science Applications International Corporation, a Delaware corporation (“SAIC”), Telcordia Technologies, Inc., a Delaware corporation (“Telcordia”) and Matthew J. Desch (“Option
Holder”). 
  
 R E C I T A L S 
  
 WHEREAS, Option Holder is an employee of Telcordia or one of its subsidiaries
and holds options to purchase SAIC Class A common stock (“SAIC Stock”), which options were issued pursuant to SAIC’s 1999 Stock Incentive Plan. 
  

WHEREAS, SAIC owns one hundred percent (100%) of the outstanding capital stock of Telcordia, and SAIC intends to complete a sale of all or a
controlling interest in Telcordia (the “Transaction”). 
  
 WHEREAS, if a Transaction is completed in accordance with the definitive agreement or agreements relating thereto (the “Closing”), Telcordia will no longer be a subsidiary or an affiliate of SAIC effective upon the date of the
Closing (the “Termination Date”). 
  
 WHEREAS, because
Telcordia will no longer be affiliated with SAIC upon the Closing, all vested options held by Option Holder as of the Termination Date (the “Vested Options”) will have to be exercised within the thirty (30) day period following notice to
Option Holder from SAIC or, at the end of such thirty (30) day period, all Vested Options which have not been exercised will terminate. All unvested options issued to Option Holder will be forfeited as of the Termination Date. 
  
 WHEREAS, Option Holder may exercise vested options by either payment of cash
or by exchanging vested SAIC Stock that Option Holder owns; provided, however that shares acquired through the exercise of a stock option must be owned for at least six months before they may be used as payment to exercise an option. 
  
 WHEREAS, in the event a Transaction is completed, SAIC is allowing Option
Holder to elect to cancel all the Vested Options in exchange for the right to receive a cash payment in an amount equal to (A) the product of (1) the number of shares of SAIC Stock issuable upon the exercise of each of the Vested Options and (2) the
price per share of SAIC Stock as of the Closing minus the per share exercise price for each such Option, and minus (B) all applicable federal, state and local taxes required to be withheld in respect of such payment. 
  
 A G R E E M E N T 
  
 NOW, THEREFORE, the parties, intending to be legally bound, agree as follows:

  
 1. Cancellation of Vested Options. Option Holder agrees
and is hereby surrendering all Vested Options outstanding as of the Closing for cancellation effective immediately after the Closing. In exchange for the cancellation of the Vested Options, Option Holder shall be entitled to receive an amount in
cash equal to (A) the product of (1) the number of shares of SAIC Stock issuable upon the exercise of each of the Vested Options and (2) the price per share of SAIC Stock as of the Closing minus the per share exercise price for each such Option, and
minus (B) all applicable federal, state and local taxes required to be withheld in respect of such payment (the “Payment”). For example, assuming that price per share of SAIC Stock as of the Closing is $38.14, cancellation of 500
options with a per share exercise price of $29.52 and 1000 options with a per share exercise price of $30.83 would result in a payment of $11,620, less applicable tax withholdings. [(500 x [$38.14 – $29.52]) + (1000 x [$38.14 – $30.83]) =
$11,620]. All unvested options held by Option Holder as of the Closing are forfeited as of the Closing. All stock option agreement(s) that govern the terms of the Vested Options and any unvested options shall be terminated effective immediately
after the Closing. 
  

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 2. Agreement Not to Exercise. Option Holder’s election to receive cash in exchange for
cancellation shall apply to all Vested Options held by Option Holder as of the Closing. Option Holder agrees not to exercise any of the Vested Options on or after the Termination Date and further agrees that any attempt to exercise any of the Vested
Options on or after the Termination Date shall be null and void. 
  
 3. Representations and Warranties of Option Holder. Option Holder hereby represents, warrants and covenants that: (a) Option Holder is the sole beneficial and record owner and holder of the Vested Options, which Vested Options are
free and clear of any liens, claims, options, charges, third party rights or other encumbrances (including, without limitation, restrictions on rights of disposition other than those imposed by applicable laws); (b) Option Holder has full power and
authority to make, enter into and carry out the terms of this Agreement; (c) Option Holder has duly executed and delivered this Agreement; and (d) this Agreement constitutes a valid and binding obligation of Option Holder. 
  
 4. Further Assurances. Option Holder hereby covenants and
agrees to execute and deliver any additional documents and take any other actions necessary or desirable to carry out the purpose and intent of this Agreement, including, without limitations, any actions required to cancel the Vested Options.

  
 5. Payment and Withholding.  
  
 (a) The Payment shall be made by Telcordia to Option Holder promptly
after Closing but in no event later than 30 days after the Termination Date. Option Holder agrees that Telcordia, SAIC, or their respective successors or affiliates, shall be entitled to deduct and withhold from the Payment such amounts that
Telcordia, SAIC, their respective successors or affiliates are required to deduct and withhold with respect to the making of such payment under the Internal Revenue Code, Treasury Regulations or any provision of state, local or foreign tax law. To
the extent that amounts are so withheld, such amounts shall be treated for all purposes of this Agreement as having been paid to Option Holder in respect of which such deduction and withholding was made. 
  
 (b) SAIC shall reimburse Telcordia for the amount of the payment made to the
Option Holder prior to Option Holder’s tax withholdings no later than the date Payment is made by Telcordia to the Option Holder. Telcordia shall make all required tax withholdings from the Payment to Option Holder and submit all taxes due with
respect to the Payment to the proper taxing authorities in a timely manner. 
  
 6. Release. In return for part of the consideration provided to Option Holder pursuant to this Agreement, Option Holder hereby waives, releases and forever discharges SAIC, Telcordia, their respective
subsidiaries, affiliates, successors and assigns and their current and former officers, directors, stockholders, agents, employees, attorneys, representatives and employee benefit programs (including the trustees, administrators, fiduciaries and
insurers of such programs) (collectively referred to as the “Releasees”) from any claims and potential claims for relief, causes of action and liabilities, known or unknown, that Option Holder may have against Releasees or relating to (i)
the employment relationship between Option Holder and Telcordia, (ii) Option Holder’s affiliation with SAIC and the termination of that affiliation, including any and all claims, rights and any personal gain with respect to any claim arising
under the provisions of the False Claims Act, 3 1 U.S.C. 3730 and (iii) Option Holder’s ownership of SAIC stock or options or Option Holder’s participation in any SAIC or Telcordia benefit or stock plan. This release applies to all such
claims relating to any event, state of facts, circumstance or condition occurring or existing on or prior to the Termination Date, and this release will be effective as of the Effective Date (as defined herein). The foregoing release shall
not be a release of Option Holder’s rights under the Executive Change in Control, Incentive and Severance Agreement dated September 20, 2004 between Option Holder and Telcordia, or any rights Option Holder may have to indemnification or
directors and officers liability insurance coverage. Any dispute of any nature arising out of or relating to this Agreement or any dispute which may arise in the future shall be settled in a final and binding arbitration administered by Judicial
Arbitration and Mediation Services, Inc. (JAMS). 
  

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 7. Entire Agreement. This Agreement constitutes the final, complete and exclusive agreement and
understanding of the parties hereto in respect of the subject matter contained herein, and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by an officer,
employee or representative of any party hereto. 
  
 8.
Governing Law. This Agreement shall be deemed to have been entered into in the State of California, and all questions of the validity, interpretation, or performance of any of its terms or of any rights or obligations of the parties to this
Agreement shall be governed by California law. 
  
 9.
Amendment. This Agreement may be amended, modified and supplemented only by written agreement between the parties hereto which states that it is intended to be a modification of this Agreement. 
  
 10. Notices. Any notice required or permitted to be given to any party
under this Agreement shall be in writing and shall be deemed to have been given when delivered personally, delivered by reputable overnight courier or received by registered or certified mail, postage prepaid, return receipt requested, addressed to
the party to whom such notice is to be given at the party’s address set forth below or as such party shall otherwise direct by written notice given pursuant to this Section 10: 
  

			
	 To SAIC:
	  	 Science Applications International Corporation

	 	  	 10260 Campus Point Drive, M/S F1

	 	  	 San Diego, California 92121

	 	  	 Attention: Director Stock Programs

		
	 With copy to:
	  	 Science Applications International Corporation

	 	  	 10260 Campus Point Drive, M/S F3

	 	  	 San Diego, California 92121

	 	  	 Attention: General Counsel

		
	 To Telcordia:
	  	 Telcordia Technologies, Inc.

	 	  	 1 Telcordia Drive, Room 5J100

	 	  	 Piscataway, New Jersey 08854

	 	  	 Attention: Joseph Giordano, Esq.

		
	 To Option Holder:
	  	 At Option Holder’s address of record with SAIC

	 	  	 Stock Programs

  
 11. Effective
Date. This Agreement shall not become effective unless and until the following: (a) the Closing occurs; (b) Option Holder is an employee of Telcordia or one of its subsidiaries on the Termination Date; (c) as of the Termination Date, Option
Holder holds Vested Options (the “Effective Date”). 
  
 12. Termination. If the Effective Date has not occurred on or prior to September 30, 2005, this Agreement shall terminate in its entirety and be of no further force or effect. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Option Cancellation Agreement to be executed as
of the day and year first above written. 
  
 “Option Holder”

  
 /s/    MATTHEW J.
DESCH                         
 Signature 
  
 Printed Name: Matthew J.
Desch                 
  
 Account Number:_XXX-XX-5094-01             
  
 Email Address: mdesch@telcordia.com           
  
 Date: Jan. 19, 2005   
  
 SCIENCE APPLICATIONS 
 INTERNATIONAL CORPORATION 
  
 By: /s/    DOUGLAS E.
SCOTT                         
 Name: Douglas E.
Scott                                       
 Title:  Senior Vice President, Secretary 
       and General Counsel 
  
 TELCORDIA
TECHNOLOGIES, INC. 
  
 By: /s/    JOSEPH L.
WALSH                             
 Name: Joseph L. Walsh 
 Title:  Senior Vice President 
       and Chief Financial Officer 
  

 4 of 4Memorandum of Understanding

 Exhibit 10.24 
  
 [LOGO OF SAIC] 
  
 SCIENCE APPLICATIONS INTERNATIONAL CORPORATION 
 MEMORANDUM of
UNDERSTANDING 
  
 Confidential 
  

	DATE:	January 25, 2005 

  

	TO:	Randy Walker 

  

	FROM:	Bernie Theule 

  

	SUBJECT:	Severance Benefits & Release 

  
 This memorandum of understanding (MOU) describes the severance benefits and release of claims associated with your separation from SAIC. 
  

	1.	Your current salary and benefits will be continued through February 25, 2005. SAIC will accept your resignation from the SAIC Board of Directors and from your position as Corporate
Executive Vice President effective February 1, 2005. 

  

	2.	SAIC will provide you with a lump sum separation payment of $1,045,039.00, less payroll tax withholdings, within ten working days following the end of the revocation period
described in paragraph 10 of this MOU. The benefits conferred upon you pursuant to this MOU are in lieu of the severance and other benefits you otherwise would have received pursuant to the terms of your employment offer letter from SAIC.

  

	3.	Effective February 26, 2005, you will be transferred to Consulting Employee (CE) status. As a CE, you will receive the following: 

  

	 	(a)	You will be paid at the rate of $210 per hour worked.1 The pay you actually receive will be determined by the number of approved hours you work on specific projects, as assigned by your sponsoring manager2 or their designee. The CE hours you are authorized to work, if any, will be determined at the sole discretion of SAIC management. 

  

	 	(b)	Following your transfer to Consulting Employee status you will be paid for all of your accrued, unused comprehensive leave. 

  

	 	(c)	As long as you are classified as a CE, you will be eligible to retain the SAIC stock you now hold and your vesting stock and/or options will continue on their normal vesting
schedule. You will be continued as a CE until June 10, 2006, at which time you will be terminated.3 Upon your
termination as a CE, you will be eligible to retain your vested SAIC stock for up to three more years provided that you sign a Stock Repurchase Deferral Agreement not later than 30 days following your termination from CE status.

  

	 	(d)	Notwithstanding the terms of paragraph 3 (c) of this MOU, SAIC at its sole discretion, may terminate your CE status at any time if SAIC has a reasonable basis to conclude that you
have (i) solicited SAIC employees to leave the Company and/or (ii) violated the provisions of paragraph 5 of this MOU. 

  

	1	This rate would be equivalent to approximately $435k for 2080 hours. 

	2	As a CE, your Sponsoring Manager will be SAIC’s CEO. 

	3	Your termination will be considered to be a “resignation”. 

							
	 Initials:
	 	  /s/ RIW  	  	 	 	  /s/ BLT  
	 	 	RIW	  	 	 	BLT

  
  

	 	(e)	Your access to ISSAIC and the SAIC e-mail system will be continued until the end of your CE status or until you secure a position with another employer, whichever occurs first. Your
retirement account balances may be maintained in SAIC Retirement Programs provided that you maintain the required minimum account balances and subject to the terms and conditions of such programs. 

  

	 	(f)	Following your transfer to CE status, you may convert your Company provided group life insurance coverage to a whole life policy. In addition, you will be eligible to retain any
voluntary term life insurance coverage you currently have, by paying the required premiums. Your participation in any such term life insurance program available to you is on and subject to the terms and conditions of the insurer.

  

	 	(g)	As a CE, you will no longer be eligible for SAIC group medical and dental benefits. Federal law (COBRA) provides that you may continue your group medical and dental benefits for up
to eighteen months, following your separation, by paying the required premiums. 

  

	4.	In return for the consideration provided to you pursuant to this MOU, you agree to waive, release and forever discharge SAIC, its directors, stockholders, agents, subsidiaries,
affiliates, successors, assigns, employees, attorneys and representatives (collectively referred to as the “Releasees”) from any claims and potential claims for relief, causes of action and liabilities, known or unknown, that you may have
against Releasees or relating to the employment relationship between you and SAIC and the termination of that relationship, including any claims for compensation from the Company pursuant to your employment offer letter dated June 19, 2002, or
otherwise, and all claims and rights under the Age Discrimination in Employment Act of 1967, 29 U.S.C. 621, and any personal gain with respect to any claim arising under the provisions of the False Claims Act, 31 U.S.C. 3730.

  

	5.	You agree that during the course of your relationship with the Company you were exposed to various Company proprietary technologies, pricing strategies, cost estimation
methodologies, marketing plans and strategic business initiatives as well as unique opportunities, special needs and requirements of the Company’s customers. You understand that the Company considers such information to be proprietary
information or trade secrets, subject to the terms of the Invention, Copyright and Confidentiality Agreement (“ICCA”) that you executed with the Company. You agree that the Company would suffer immediate and irreparable harm if any of
these trade secrets and proprietary information were disclosed to others or utilized by you on behalf of others, especially on behalf of any of the Company’s competitors. 

  
 As a consequence, you agree that you will not: 1) take or retain any
proprietary documentation or electronic information either created by you or made available to you or during the course of your employment at the Company; 2) disclose to any third party, especially to any competitor of the Company, any of the trade
secrets or other proprietary information of the Company; and 3) use any of the Company’s trade secrets or other proprietary information to provide services or assistance to any other company. 
  

	6.	You are presently unaware of any injuries that you may have suffered as a result of working at SAIC and have no present intention of filing a workers’ compensation claim.
Should any such claim arise in the future, you waive and release any right to proceed against SAIC for such a claim. 

  

	7.	You have been advised that section 1542 of the California Civil Code, provides that a general release does not extend to claims the releasor does not know or suspect to exist in his
favor at the time of executing the release, which if known by him, must have materially affected his settlement with the releasees. You hereby agree to waive your right to any claims unknown to you or suspected to exist in your favor as of the date
of this MOU. 

  

	8.	You hereby agree to indemnify the Company and hold the Company and all other Releasees harmless from and against any and all losses, costs, judgments, damages or expenses,
including, without limitation, attorneys’ fees, costs and expenses, incurred by Releasees in defending any claim or cause of action brought or asserted by you, which claims or cause of action was discharged by virtue of paragraphs 4, 6, and/or
7 herein. 

	

							
	 Initials:
	 	  /s/ RIW  	  	 	 	  /s/ BLT  
	 	 	RIW	  	 	 	BLT

  
  

	9.	You acknowledge that you have been informed that you have the right to consider whether or not to enter into this MOU for twenty-one (21) days. 

  

	10.	You understand that for a period of seven (7) days from the date you sign this MOU, you may revoke this MOU and that the MOU shall not become effective or enforceable until the
revocation period has expired. 

  

	11.	Neither party shall, directly or indirectly make disparaging remarks about the other party. For purposes of this provision, SAIC shall be responsible for remarks made by the
Company’s Executive Officers and its Human Resource staff, and remarks of other employees or representatives of the Company will not be attributed to SAIC.  

  

	12.	Both parties agree not to disclose the terms of this MOU to any third party other than family members, financial or legal advisors, or those with a legitimate “need to
know”, or pursuant to an order by an administrative tribunal or court, or as required by applicable law including the Securities Laws. You understand that the Company will disclose the terms of this MOU in an SEC 8-K filing.

  

	13.	You acknowledge that you have had the opportunity to seek the advice of an attorney of your choice with regard to this MOU and that there are no agreements, written or oral, express
or implied, between you and SAIC, other than this MOU. Furthermore, the terms of this MOU may not be modified without the written agreement of all of the signatories hereto. 

  

	14.	Any dispute, claim or controversy of any kind or nature, including but not limited to the issue of arbitrarability, arising out of or relating to this MOU, shall be settled in a
final and binding arbitration conducted by an independent arbitrator pursuant to the SAIC Employment Arbitration Rules & Procedures.4 

  
 If you wish to accept the Severance
Benefits and the terms described in this MOU, please signify your agreement by signing your name in the space provided on two copies of this MOU. Please return both signed documents to me not later than February 25, 2005. Once all of the signatures
have been obtained, one original copy of the MOU will be returned to you. 
  
 AGREED: 
  

			
	/s/ RANDY I. WALKER

	  	 2/9/05

	R.I. Walker	  	Date

  
 For SAIC: 
  

			
	/s/ B.L. THEULE

	  	 2/9/05

	B. L. Theule	  	Date

  

	4	At your request, SAIC will provide you with information from the on how claims are filed and how the arbitration process works.

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