Document:

Exhibit 10.2

 

FIRST AMENDMENT TO

CHANGE OF CONTROL AGREEMENT

 

This FIRST AMENDMENT TO CHANGE OF CONTROL
AGREEMENT is made and entered into as of the date noted on the last
page hereof to be effective as set forth below by and between Witness Systems,
Inc. (the “Company”), and [INSERT] (the
“Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Company
and the Executive previously entered into a “Change of Control Agreement” dated
[INSERT] (the “COC Agreement”); and

 

WHEREAS, in
accordance with provisions of Notice 2005-1 issued by the Internal Revenue
Service and extensions and modifications thereto contained in the preamble to
proposed regulations (70 F.R. 57930) issued by the Internal Revenue Service,
the Company and the Executive wish to amend certain provisions of the COC
Agreement either (1) to conform to the provisions of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”) with respect to amounts
subject to Code §409A, or (2) to provide a compensation arrangement that does
not provide for a deferral of compensation for purposes of Code §409A;

 

WHEREAS, the Company
and the Executive wish to amend certain provisions of the COC Agreement to
address recent changes in Georgia case law;

 

NOW, THEREFORE, the
Company and the Executive do hereby agree to amend the COC Agreement as follows
effective as of the “Effective Date” (which shall, for all purposes of this
First Amendment, be defined as noted in the COC Agreement):

 

I.

 

Section 1.7 of the COC Agreement is amended to read as follows effective
as of the Effective Date:

 

Section 1.7            CONFIDENTIAL INFORMATION shall mean (a) information of the Company, to the extent not
considered a Trade Secret under applicable law, that (i) relates to the
business of the Company, (ii) possesses an element of value to the Company,
(iii) is not generally known to the Company’s competitors, and (iv) would
damage the Company if disclosed, and (b) information of any third party
provided to the Company which the Company is obligated to treat as
confidential, including, but not limited to, information provided to the
Company by its licensors, suppliers, or customers. Confidential Information
includes, but is not limited to, (i) future business plans, (ii) the
composition, description, schematic or design of products, future products or
equipment of the Company or any third party, (iii) communication systems, audio
systems, system designs and related documentation, (iv) advertising or
marketing plans, (v) information regarding independent contractors, employees,
clients, licensors, suppliers, customers, or any

 

 

third party, including, but not limited to,
customer lists compiled by the Company, and customer information compiled by
the Company, and (vi) information concerning the Company’s or a third party’s
financial structure and methods and procedures of operation. Confidential
Information shall not include any information that (i) is or becomes generally
available to the public other than as a result of an unauthorized disclosure,
(ii) has been independently developed and disclosed by others without violating
this Agreement or the legal rights of any party, or (iii) otherwise enters the
public domain through lawful means.

 

II.

 

Section 1.9 of the COC Agreement is amended to read as follows
effective as of the Effective Date:

 

Section 1.9            CUSTOMER shall mean
any person or entity to whom the Company has (i) sold its products or services,
or (ii) solicited to sell its products or services.

 

III.

 

Section 1.11 of the COC Agreement is amended to read as follows
effective as of the Effective Date:

 

Section 1.11         EMPLOYEE shall mean
any person who (i) is employed by the Company at the time the Executive’s
employment with the Company ends, or (ii) was employed by the Company during
the last year of the Executive’s employment with the Company (or during the
Executive’s employment if employed less than a year).

 

IV.

 

Section 1.19 of the COC Agreement is amended to read as follows
effective as of the Effective Date:

 

Section 1.19         TRADE SECRETS shall
mean information of the Company, and its licensors, suppliers, clients, and
customers, without regard to form, including, but not limited to, technical or
nontechnical data, a formula, a pattern, a compilation, a program, a device, a
method, a technique, a drawing, a process, financial data, financial plans,
product plans, a list of actual customers, clients, licensors, or suppliers, or
a list of potential customers, clients, licensors, or suppliers which is not
commonly known by or available to the public and which information (i) derives
economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can obtain
economic value from its disclosure or use, and (ii) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy.

 

2

 

V.

 

Section 1.20 of the COC Agreement is amended to read as follows
effective as of the Effective Date:

 

Section 1.20         WORK PRODUCT shall
mean (a) any data, databases, materials, documentation, computer programs,
inventions (whether or not patentable), designs, and/or works of authorship,
including but not limited to, discoveries, ideas, concepts, properties,
formulas, compositions, methods, programs, procedures, systems, techniques,
products, improvements, innovations, writings, pictures, audio, video, images
of the Executive, and artistic works, and (b) any subject matter protected
under patent, copyright, proprietary database, trademark, trade secret, rights
of publicity, confidential information, or other property rights, including all
worldwide rights therein, that is or was conceived, created or developed in
whole or in part by the Executive while employed by the Company and that either
(i) is created within the scope of the Executive’s employment, (ii) is based
on, results from, or is suggested by any work performed within the scope of the
Executive’s employment and is directly or indirectly related to the Business of
the Company or a line of business that the Company may reasonably be interested
in pursuing, (iii) has been or will be paid for by the Company, or (iv) was
created or improved in whole or in part by using the Company’s time, resources,
data, facilities, or equipment.

 

VI.

 

Article 1 of the COC Agreement is amended by adding the following
Section effective as of the Effective Date:

 

Section 1.21         MATERIAL INTERACTION
shall mean any interaction between the Executive and an Employee which relates
or related, directly or indirectly, to the performance of the Executive’s
duties for the Company.

 

VII.

 

The first paragraph of Article 2 of the COC Agreement is amended by
striking the phrase:

 

is
employed by the Company as of the date of the first Change of Control occurring
after the Effective Date or was employed by the Company within the ninety (90)
day period immediately preceding such Change of Control

 

and inserting in lieu thereof the following phrase:

 

(A)
is employed by the Company as of the date of the first Change of Control
occurring after the Effective Date or (B) was employed by the within the
shorter of (1) the ninety (90) day period immediately preceding such Change of
Control, or (2) the period from January 1 of the calendar year during which
such Change of Control occurs to the date of such Change of Control

 

3

 

VIII.

 

Section 2.3 of the COC Agreement is amended to read as follows
effective as of the Effective Date:

 

Section 2.3             COBRA Premium Payments. Upon the Executive’s termination of employment
as of the date of, or following, such Change of Control, the Company shall pay
the following:

 

(a)           The Company shall pay an amount each month
equal to the COBRA Monthly Premiums to provide the Executive with COBRA
Continuation Coverage for the first eighteen (18) months following the
Executive’s becoming entitled to COBRA Continuation Coverage.

 

(b)           The Company shall pay a monthly amount equal
to (1) the monthly premium amount determined as of the Executive’s date of
termination of employment that would be necessary to provide the Executive and
any and all dependents of the Executive who are qualified beneficiaries with
COBRA Continuation Coverage for such month reduced by (2) the monthly premium
amount determined as of the Executive’s date of termination of employment that
would be necessary to provide the Executive alone with COBRA Continuation
Coverage for such month. Such monthly amount shall be paid as of the first day
of each calendar month for eighteen (18) consecutive months beginning with the
month immediately following the month during which the Executive’s termination
of employment occurs.

 

IX.

 

Section 2.4 of the COC Agreement is amended to read as follows
effective as of the Effective Date:

 

Section 2.4             LTD & Life Insurance
Premium Payments. Upon the
Executive’s termination of employment as of the date of, or following, such
Change of Control, the Company shall pay an amount each month equal to the sum
of (1) the monthly premium amount (whether paid previously by the Company
and/or the Executive) for the Executive’s long term disability coverage and (2)
the monthly premium amount (whether paid previously by the Company and/or the
Executive) for the Executive’s life insurance coverage, each as available under
the Company’s applicable employee welfare benefit plan providing such coverage
immediately prior to the Executive’s date of termination, with such premiums
amounts determined as of the Executive’s date of termination of employment (but
not less than such premiums amounts determined as of the date of such Change of
Control). Such monthly amounts shall be paid as of the first day of each
calendar month for [eighteen (18)]
[twenty-four (24)] consecutive months beginning with the month
immediately following the month during which the Executive’s termination of
employment occurs.

 

4

 

X.

 

Article 3 of the COC Agreement is amended to read as follows effective
as of the Effective Date:

 

Article
3        Golden
Parachute Gross Up Payments

 

Section 3.1            REQUEST FOR CALCULATION & DETERMINATION. If the
Executive (A) is employed by the Company as of the date of the first Change of
Control occurring after the Effective Date or (B) was employed by the Company
within the shorter of (1) the ninety (90) day period immediately preceding such
Change of Control, or (2) the period from January 1 of the calendar year during
which such Change of Control occurs to the date of such Change of Control,
then, as of the calendar year during which such Change of Control occurs, the Company
shall cause to be performed a calculation of any Code §4999 excise tax for such
calendar year and for each calendar year thereafter with respect to the
Executive based on any Parachute Payments made or to be made to the Executive
by the Company resulting from such Change of Control and based on the
assumption that all amounts taxable to the Executive will be taxed at the
highest marginal federal and state tax rates, and shall notify the Executive of
the result of any such calculation. If such tax is or will be due, the Company
shall pay to the Executive a Gross-Up Payment (as defined in Section 3.3
below); provided, however, that (1) the Executive must provide the Independent
Tax Counsel with all information necessary for the Independent Tax Counsel to
determine the proper amount of excise tax which should be paid by the
Executive, (2) the Executive must agree to the release of pertinent payment
information by the Company to the Independent Tax Counsel, and (3) the
Executive must comply with the terms of Section 6.1 below.

 

Section 3.2            SELECTION OF INDEPENDENT TAX CONSULTANT. An
Independent Tax Consultant shall be selected and engaged by the Company for the
purposes of making the calculations and determinations required by this Article
3. All fees, expenses and disbursements of the Independent Tax Consultant shall
be paid by the Company.

 

Section 3.3            DETERMINATIONS & CALCULATIONS OF INDEPENDENT TAX CONSULTANT. The
Independent Tax Counsel shall, upon being engaged by the Company to do so, make
a determination as to whether the amounts paid to the Executive by the Company
which constitute Parachute Payments resulting from such Change of Control would
be subject to the Code §4999 excise tax for the calendar year during which such
Change of Control occurs and for each calendar year thereafter. If the
Independent Tax Counsel determines that the Parachute Payments to the Executive
would be subject to the Code §4999 excise tax, then the Executive shall receive
a single additional lump sum cash payment (the “Gross-Up Payment”) from the
Company in an amount such that, based upon the aforementioned assumptions,
after payment by the Executive of all federal and state income taxes and any
Code §4999 excise taxes imposed upon the Gross-Up Payment, the Executive shall retain
from the Gross-Up Payment an amount equal to the Code §4999 excise taxes
imposed upon, or which will be imposed upon, the Parachute Payments. If the
Independent Tax Counsel shall determine that no Code §4999 excise tax is or
will be payable by the Executive, the Independent Tax Consultant shall furnish
the Executive with a written letter that the Executive has substantial
authority not to report any Code § 4999 excise tax due.

 

Section 3.4            TIMING OF GROSS-UP PAYMENT. The Gross Up Payment which is due to be
paid to the Executive shall be paid in a single lump sum cash payment which
shall be made as of the later of (1) December 31 of the calendar year during
which the Change of Control occurs, or (2) the date which is five (5) days
after the date on which the Independent Tax Counsel completes his calculations
and determinations with

 

5

 

respect to such Gross-Up
Payment, but in no event later than March 15th of the calendar year
following the calendar year during which the Change of Control occurs.

 

XI.

 

Section 4.3(b) of the
COC Agreement is amended to read as follows effective as of the Effective Date:

 

(b)           Non-Solicitation of Customers. During the Restricted Period, the Executive will not, directly or
indirectly, solicit any Customer of the Company for the purpose of selling or
providing any products or services competitive with the Business. The
restrictions set forth in this Section 4.3(b) apply only to Customers with whom
the Executive had Contact. Nothing in this Section 4.3(b) shall be construed to
prohibit the Executive from soliciting any Customer of the Company for the
purpose of selling or providing any products or services competitive with the
Business: (i) which the Executive never sold or provided while employed by the
Company; (ii) to a Customer that explicitly severed its business relationship
with the Company; or (iii) which product line or service line the Company no
longer offers.

 

XII.

 

Section 4.3(c) of the COC Agreement is amended to read as follows
effective as of the Effective Date:

 

(c)           Non-Recruit of Employees. During the Restricted Period, the Executive
will not, directly or indirectly, solicit, recruit, or induce any Employee to
(i) terminate his or her employment relationship with the Company, or (ii) work
for any other person or entity engaged in the Business. The restrictions set
forth in this Section 4.3(c) shall apply only to Employees (a) with whom the
Executive had Material Interaction, or (b) the Executive, directly or indirectly,
supervised.

 

XIII.

 

All other provisions of the COC Agreement are hereby ratified and
confirmed.

 

IN WITNESS WHEREOF,
the undersigned Company and the Executive have hereunto set forth their hands
and seals as of this           
day of                          ,
2005.

 

	
  COMPANY:

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
  WITNESS
  SYSTEMS, INC.

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  [INSERT]

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  

 

6Exhibit 10.1

Restricted Stock Agreement for

Outside Directors under
Assured Guaranty Ltd. 2004 Long-Term Incentive
Plan

THIS AGREEMENT, entered into as of the Grant Date (as
defined in paragraph 1), by and between the Director and Assured Guaranty
Ltd. (the “Company”):

WITNESSETH THAT:

WHEREAS, the Company maintains the Assured Guaranty
Ltd. 2004 Long-Term Incentive Plan (the “Plan”), and the Director
has been selected by the committee administering the Plan (the “Committee”) to
receive a Restricted Stock Award under the Plan; and

NOW, THEREFORE, IT IS AGREED, by and between the
Company and the Director, as follows:

1. Terms of Award. The following words and phrases
used in this Agreement shall have the meanings set forth in this paragraph 1:

(a)                                  The
“Director” is _______________.

(b)                              The “Grant Date” is                                                                                 .

(c)                                  The
number of “Covered Shares” shall be __________ shares of Stock.

Other words and phrases
used in this
Agreement are defined pursuant to paragraph 15 or elsewhere in this Agreement.

2. Restricted
Stock Award. This Agreement specifies the terms of the “Restricted
Stock Award” granted to the Director.

3. Restricted Period. Subject to the limitations of this Agreement, the “Restricted Period” for the
Covered Shares of the Restricted Stock Award shall begin on the Grant Date and
end on the day immediately prior to the next annual shareholders meeting during
which elections for directors are held following the Grant Date.

The Restricted Period shall end prior to the date specified above to
the extent set forth below:

(a)           The Restricted Period shall end on
the date the Director ceases
to be a director of the Company (and is not otherwise employed by the Company
or its Subsidiaries), if the Director ceases to be a director by reason of his
Disability or death. The Director shall be considered to have a “Disability” if
the Nominating and Governance Committee of the Board of Directors determines
that he is unable to serve as a Director as a result of a medically
determinable physical or mental impairment.

(b)           The Restricted Period shall end upon
a Change in Control (as defined in the Plan), provided that such Change in
Control occurs on or before the date the Director
ceases to be a director of the Company.

 

4. Transfer and Forfeiture of Shares. If the Restricted Period with respect to
the Covered Shares ends on or before the date the Director ceases to be a
director of the Company, then at the end of such Restricted Period, the Covered
Shares shall be transferred to the Director free of all restrictions. If the
Restricted Period with respect to the Covered Shares does not end on or before
the date the Director ceases to be a director of the Company, then as of the
date the Director ceases to be a director of the Company, the Director shall
forfeit all Covered Shares.(1)

 

5. Transferability. Except as otherwise provided by
the Committee, the Restricted Stock Award may not be sold, assigned,
transferred, pledged or otherwise encumbered during the Restricted Period.

6. Dividends. The Director shall be entitled to
receive any dividends paid with respect to the Covered Shares that become
payable during the Restricted Period. Any dividends shall be payable to the
Director in cash. The Director shall not be prevented from receiving dividends
and distributions paid on the Covered Shares of Restricted Stock merely because
those shares are subject to the restrictions imposed by this Agreement and the
Plan; provided, however that no dividends or distributions shall be payable to
or for the benefit of the Director with respect to record dates for such
dividends or distributions for any Covered Shares occurring on or after the
date, if any, on which the Director has forfeited those shares.

7. Voting. The Director shall not be prevented from
voting the Restricted Stock Award merely because those shares are subject to
the restrictions imposed by this Agreement and the Plan; provided, however,
that the Director shall not be entitled to vote Covered Shares with respect to
record dates for any Covered Shares occurring on or after the date, if any, on
which the Director has forfeited those shares.

8. Registration of Restricted Stock Award. Each
certificate issued in respect of the Covered Shares awarded under this
Agreement shall be registered in the name of the Director.

9. Heirs and Successors. This Agreement shall be
binding upon, and inure to the benefit of, the Company and its successors and
assigns, and upon any person acquiring, whether by merger, consolidation,
purchase of assets or otherwise, all or substantially all of the Company’s
assets and business. If any benefits deliverable to the Director under this Agreement have not been delivered at the time
of the Director’s death, such benefits shall be delivered to the Designated
Beneficiary, in accordance with the provisions of this Agreement and the Plan. The “Designated
Beneficiary” shall be the beneficiary or beneficiaries designated by the
Director in a writing filed with the Committee in such form and at such time as
the Committee shall require. If a deceased Director fails to designate a
beneficiary, or if the Designated Beneficiary does not survive the Director,
any rights that would have been exercisable by the Director and any benefits
distributable to the Director shall be distributed to the legal representative
of the estate

(1) The award will
not continue to vest if a person ceases to be a Director of the Company but
continues to be an employee of the Company.

 2
 

of the Director.
If a deceased Director designates a beneficiary and the Designated Beneficiary
survives the Director but dies before the complete distribution of benefits to
the Designated Beneficiary under this Agreement, then any
benefits distributable to the Designated Beneficiary shall be distributed to
the legal representative of the estate of the Designated Beneficiary.

10. Administration. The authority to manage and
control the operation and administration of this Agreement shall be vested in the Committee, and the
Committee shall have all powers with respect to this Agreement as it has with
respect to the Plan. Any interpretation of this Agreement by the Committee
and any decision made by it with respect to this Agreement is final and binding
on all persons.

11. Plan Governs. Notwithstanding anything in this Agreement to the contrary,
this Agreement shall be subject to the terms of the Plan, a copy of which may
be obtained by the Director from the office of the Secretary of the Company;
and this
Agreement is subject to all interpretations, amendments, rules and
regulations promulgated by the Committee from time to time pursuant to
the Plan.

12. Notices. Any written notices provided for in this Agreement
or the Plan shall be in writing and shall be deemed sufficiently given if
either hand delivered or if sent by fax or overnight courier, or by postage
paid first class mail. Notices sent by mail shall be deemed received three
business days after mailing but in no event later than the date of actual
receipt. Notices shall be directed, if to the Director, at the Director’s
address indicated by the Company’s records, or if to the Company, at the
Company’s principal executive office.

13. Fractional Shares. In lieu of issuing a fraction
of a share, resulting from an adjustment of the Restricted Stock Award pursuant
to the Plan or otherwise, the Company will be entitled to pay to the Director
an amount equal to the fair market value of such fractional share.

14. Amendment. This Agreement may be amended in accordance with the
provisions of the Plan, and may otherwise be amended by written agreement of
the Director and the Company without the consent of any other person.

15. Plan
Definitions. Except where the context clearly implies or indicates the
contrary, a word, term, or phrase used in the Plan is similarly used in this
Agreement.

IN WITNESS WHEREOF, the Director has executed the
Agreement, and the Company has caused these presents to be executed in its name
and on its behalf, all as of the Grant Date.

 

	
  

  	
  Assured Guaranty Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
  Director:

  	
   

  
				

 

 3

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