Document:

exv10w22

 

Exhibit 10.22

EXECUTIVE SEVERANCE AGREEMENT

February 27, 2007

	 	 	 
	Keith Lambert
	 	 
	1706 NW Potters Court
	 	 
	Portland, OR 97229

	 	Executive
	 
	 	 
	RadiSys Corporation, an Oregon corporation 
	 	 
	5445 NE Dawson Creek Parkway
	 	 
	Hillsboro, OR 97124

	 	the Company

     1. Employment Relationship. Executive is currently employed by the Company as Vice President
of Manufacturing Operations. Executive and the Company acknowledge that either party may terminate
this employment relationship at any time and for any or no reason, provided that each party
complies with the terms of this Agreement.

     2. Release of Claims. In consideration for and as a condition precedent to receiving the
severance benefits outlined in this Agreement, Executive agrees to execute a Release of Claims in
the form attached as Exhibit A (“Release of Claims”). Executive promises to execute and deliver
the Release of Claims to the Company within the later of (a) 21 days (or, if required by applicable
law, 45 days) from the date Executive receives the Release of Claims or (b) the last day of
Executive’s active employment.

     3. Additional Compensation Upon Involuntary Termination.

          3.1 Involuntary Termination. In the event of a Termination of Executive’s Employment (as
defined in Section 6.1) other than for Cause (as defined in Section 6.2), death or Disability (as
defined in Section 6.3), and contingent upon Executive’s execution of the Release of Claims without
revocation and compliance with Section 9, Executive shall be entitled to the following benefits:

          (a) As severance pay and in lieu of any other compensation for periods subsequent to the date
of termination, the Company shall pay Executive, in a lump sum, an amount equal to nine (9) months
of Executive’s annual base pay at the rate in effect immediately prior to the date of termination;
provided, such lump sum amount shall not exceed two times the lesser of (i) the sum of Executive’s
annual compensation (as defined in Treasury regulation section 1.415-2(d) for services provided to
the Company as an employee for the calendar year preceding the calendar year of the Termination of
Executive’s Employment, or (ii) the maximum amount that may be taken into account under a qualified
plan pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended (the “Code”),
or any successor provision. Severance pay that is payable under this Agreement shall be paid to
Executive within 30 days following the “Effective Date” (as such term is defined in the Release of
Claims) of the Release of Claims.

          (b) As an additional severance benefit, the Company will provide Executive with up to nine (9)
months of continued coverage pursuant to COBRA under the Company’s

 

 

group health plan at the level of benefits (whether single or family coverage) previously elected
by Executive immediately before the Termination of Executive’s Employment and to the extent that
Executive elects to continue coverage during such 9-month period.

          (c) The Company shall pay Executive his incentive compensation plan payout, if any, for the
first six months of the calendar year in which occurs the Termination of Executive’s Employment at
the same time as other executive employees and no later than December 31 of such calendar year,
provided that Executive has been employed by the Company through June 1 of such calendar year.

          (d) The Company will provide resume preparation assistance to Executive for up to three (3)
months following Termination of Executive’s Employment.

     4. Withholding; Subsequent Employment.

          4.1 Withholding. All payments provided for in this Agreement are subject to applicable
withholding obligations imposed by federal, state and local laws and regulations.

          4.2 Offset. The amount of any payment provided for in this Agreement shall not be reduced,
offset or subject to recovery by the Company by reason of any compensation earned by Executive as
the result of employment by another employer after termination.

     5. Other Agreements. Executive shall not be entitled to any benefits under this Agreement if
severance benefits are payable to Executive under the Amended and Restated Executive Change of
Control Agreement by and between Executive and the Company dated February 27, 2007.

     6. Definitions.

          6.1 Termination of Executive’s Employment. Termination of Executive’s Employment means that
the Company has terminated Executive’s employment with the Company (including any subsidiary of the
Company) other than for Cause (as defined in Section 6.2), death or Disability (as defined in
Section 6.3).

          6.2 Cause. Termination of Executive’s Employment for “Cause” shall mean termination upon (a)
the willful and continued failure by Executive to perform substantially Executive’s reasonably
assigned duties with the Company (other than any such failure resulting from Executive’s incapacity
due to physical or mental illness) after a demand for substantial performance is delivered to
Executive by the Board of Directors, the Chief Executive Officer or the President of the Company
which specifically identifies the manner in which the Board of Directors believes that Executive
has not substantially performed Executive’s duties or (b) the willful engaging by Executive in
illegal conduct which is materially and demonstrably injurious to the Company. No act, or failure
to act, on Executive’s part shall be considered “willful” unless done, or omitted to be done, by
Executive without reasonable belief that Executive’s action or omission was in, or not opposed to,
the best interests of the Company. Any act, or failure to act, based upon authority given pursuant
to a resolution duly adopted by the Board of Directors shall be
conclusively presumed to be done, or omitted to be done, by Executive in the best interests of
the Company.

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          6.3 Disability. “Disability” means Executive’s absence from Executive’s full-time duties with
the Company for 180 consecutive days as a result of Executive’s incapacity due to physical or
mental illness, unless within 30 days after notice of termination by the Company following such
absence Executive shall have returned to the full-time performance of Executive’s duties. This
Agreement does not apply if the Executive is terminated due to Disability.

     7. Successors; Binding Agreement. This Agreement shall be binding on and inure to the benefit
of the Company and its successors and assigns. This Agreement shall inure to the benefit of and be
enforceable by Executive and Executive’s legal representatives, executors, administrators and
heirs.

     8. Entire Agreement. The Company and Executive agree that the foregoing terms and conditions
constitute the entire agreement between the parties relating to the matters covered by this
Agreement, that this Agreement supersedes and replaces any prior agreements relating to the matters
covered by this Agreement, and that there exist no other agreements between the parties, oral or
written, express or implied, relating to any matters covered by this Agreement.

     9. Resignation of Corporate Offices. Executive will resign Executive’s office, if any, as a
director, officer or trustee of the Company, its subsidiaries or affiliates and of any other
corporation or trust of which Executive serves as such at the request of the Company, effective as
of the date of termination of employment. Executive agrees to provide the Company such written
resignation(s) upon request and that no severance pay or other benefits will be paid until after
such resignation(s) are provided.

     10. Governing Law. This Agreement shall be construed in accordance with and governed by the
laws of the State of Oregon, without regard to its conflicts of laws provisions.

     11. Amendment. No provision of this Agreement may be modified unless such modification is
agreed to in writing signed by Executive and the Company.

     12. Severability. If any of the provisions or terms of this Agreement shall for any reason be
held invalid or unenforceable, such invalidity or unenforceability shall not affect any other terms
of this Agreement, and this Agreement shall be construed as if such unenforceable term had never
been contained in this Agreement.

     13. Code Section 409A. The parties intend that this Agreement and the severance pay and other
benefits provided hereunder comply with Code Section 409A to the extent applicable thereto.
Notwithstanding any provision of this Agreement to the contrary, this Agreement shall be
interpreted and construed consistent with this intent, and the Company reserves the right to amend
or modify this Agreement without the consent of Executive to the extent deemed necessary or
appropriate to effectuate this intent or otherwise to comply with Code Section 409A, provided that
the Company shall use reasonable efforts to provide written notice to Executive within ten (10)
days of the date an amendment pursuant to this Section 13 is adopted by the Company, which notice
shall include a copy of the amendment and shall provide a general description of the terms of the
amendment and of the basis for the determination that such amendment is necessary or appropriate to
comply with Code Section 409A.

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	RADISYS CORPORATION	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	/s/ Scott Grout	 	 	 	/s/ Keith Lambert	 	 
	 

	 	 

Scott Grout, President and CEO
	 	 	 	 

Keith Lambert 

	 	 

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EXHIBIT A

RELEASE OF CLAIMS

1. Parties.

     The parties to Release of Claims (hereinafter “Release”) are Keith Lambert and RadiSys
Corporation, an Oregon corporation, as hereinafter defined.

     1.1 Executive and Releasing Parties.

          For the purposes of this Release, “Executive” means Keith Lambert, and Releasing Parties
means Executive and his attorneys, heirs, legatees, personal representatives, executors,
administrators, assigns, and spouse.

     1.2 The Company.

          For the purposes of this Release, the “Company” means RadiSys Corporation, an Oregon
corporation, and “Released Parties” means the Company and its predecessors and successors,
affiliates, and all of each such entity s officers, directors, employees, insurers, agents,
attorneys or assigns, in their individual and representative capacities.

2. Background And Purpose.

          Executive was employed by the Company. Executive’s employment is ending effective
                    
under the conditions described in Section 3.1 of the Executive Severance Agreement
(“Agreement”) by and between Executive and the Company dated February 27, 2007.

          The purpose of this Release is to settle, and the parties hereby settle, fully and finally,
any and all claims the Releasing Parties may have against the Released Parties, whether asserted or
not, known or unknown, including, but not limited to, claims arising out of or related to
Executive’s employment, any claim for reemployment, or any other claims whether asserted or not,
known or unknown, past or future, that relate to Executive’s employment, reemployment, or
application for reemployment.

3. Release.

          In consideration for the payments and benefits set forth in Section 3.1 of the Agreement and
other promises by the Company all of which constitute good and sufficient consideration, Executive,
for and on behalf of the Releasing Parties, waives, acquits and forever discharges the Released
Parties from any obligations the Released Parties have and all claims the Releasing Parties may
have as of the Effective Date (as defined in Section 4 below) of this Release, including but not
limited to, obligations and/or claims arising from the Agreement or any other document or oral
agreement relating to employment, compensation, benefits, severance or post-employment issues.
Executive, for and on behalf of the Releasing Parties, hereby releases the Released Parties from
any and all claims, demands, actions, or causes of action,

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whether known or unknown, arising from or related in any way to any employment of or past failure
or refusal to employ Executive by the Company, or any other past claim that relates in any way to
Executive’s employment, compensation, benefits, reemployment, or application for employment, with
the exception of any claim Executive may have against the Company for enforcement of the Agreement.
This Release includes any and all claims, direct or indirect, which might otherwise be made under
any applicable local, state or federal authority, including but not limited to any claim arising
under state statutes dealing with employment, discrimination in employment, Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, the Americans With Disabilities Act, the Family
and Medical Leave Act of 1993, the Equal Pay Act of 1963, Executive Order 11246, the Rehabilitation
Act of 1973, the Uniformed Services Employment and Reemployment Rights Act of 1994, the Age
Discrimination in Employment Act (“ADEA”), the Older Workers Benefit Protection Act, the Fair Labor
Standards Act, the Oregon Fair Employment Practices Act, OR ST Section 659.030 et seq., Oregon wage
and hour laws, OR ST Section 652.010 et seq., the Oregon Family Leave Act, OR ST Section 659A.150
et seq., state wage and hour statutes, all as amended, any regulations under such authorities, and
any applicable contract (express or implied), tort, or common law theories. Further, Executive,
for and on behalf of the Releasing Parties, waives and releases the Released Parties from any
claims that this Release was procured by fraud or signed under duress or coercion so as to make the
Release not binding. Executive is not relying upon any representations by the Company’s legal
counsel in deciding to enter into this Release. Executive understands and agrees that by signing
this Release Executive, for and on behalf of the Releasing Parties, is giving up the right to
pursue any legal claims that Executive or the Releasing Parties may have against the Released
Parties. Provided, nothing in this provision of this Release shall be construed to prohibit
Executive from challenging the validity of the ADEA release in this Section of the Release or from
filing a charge or complaint with the Equal Employment Opportunity Commission or any state agency
or from participating in any investigation or proceeding conducted by the Equal Employment
Opportunity Commission or state agency. However, the Released Parties will assert all such claims
have been released in a final binding settlement.

     3.1
IMPORTANT INFORMATION REGARDING ADEA RELEASE. Executive understands and agrees that:

	 	a.	 	this Release is worded in an understandable way; 
	 
	 	b.	 	claims under the ADEA
that may arise after the date of this Release are not waived;
	 
	 	c.	 	the rights and claims waived in this Release are in exchange for additional
consideration over and above any consideration to which Executive was already
undisputedly entitled;
	 
	 	d.	 	Executive has been advised to consult with an attorney prior to executing
this Release and has had sufficient time and opportunity to do so;
	 
	 	e.	 	Executive has been given a period of time of 21 days (or, if required by
applicable law, 45 days) (the Statutory Period ), if desired, to consider this
Release and understands that Executive may revoke his waiver and release of any ADEA

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	 	 	 	claims covered by this Release within seven (7) days from the date Executive
executes this Release. Notice of revocation must be in writing and received by
RadiSys Corporation, 5445 NE Dawson Creek Drive, Hillsboro, Oregon 97124 Attention:
Vice President, Human Resources within seven (7) days after Executive signs this
Release;
	 
	 	f.	 	any changes made to this Release, whether material or immaterial, will not
restart the running of the Statutory Period.

     3.2 Reservations Of Rights.

          This Release shall not affect any rights which Executive may have under any medical insurance,
disability plan, workers’ compensation, unemployment compensation, indemnifications, applicable
company stock incentive plan(s), or the 401(k) plan maintained by the Company.

     3.3 No Admission Of Liability.

          It is understood and agreed that the acts done and evidenced hereby and the release granted
hereunder is not an admission of liability on the part of Executive or the Company or the Released
Parties, by whom liability has been and is expressly denied.

4. Effective Date.

          The “Effective Date” of this Release shall be the eighth day after it is signed by Executive.

5. No Disparagement.

          Executive agrees that henceforth Executive will not disparage or make false or adverse
statements about the Company or the Released Parties. The Company should report to Executive any
actions or statements that are attributed to Executive that the Company believes are disparaging.
The Company may take actions consistent with breach of this Release should it determine that
Executive has disparaged or made false or adverse statements about the Company or the Released
Parties.

          The Company agrees that henceforth the Company’s officers and directors will not disparage or
make false or adverse statements about Executive. Executive should report to the Company any
actions or statements that are attributed to the Company’s officers and directors that Executive
believes are disparaging. Executive may take actions consistent with breach of this Release should
it determine that the Company’s officers and directors have disparaged or made false or adverse
statements about Executive.

6. Confidentiality, Proprietary, Trade Secret And Related Information

          Executive acknowledges the duty and agrees not to make unauthorized use or disclosure of any
confidential, proprietary or trade secret information learned as an employee about the Company, its
products, customers and suppliers, and covenants not to breach that duty.

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Moreover, Executive acknowledges that, subject to the enforcement limitations of applicable law,
the Company reserves the right to enforce the terms of Executive’s Employee Agreement with the
Company and any section(s) therein. Should Executive, Executive’s attorney or agents be requested
in any judicial, administrative, or other proceeding to disclose confidential, proprietary or trade
secret information Executive learned as an employee of the Company, Executive shall promptly notify
the Company of such request by the most expeditious means in order to enable the Company to take
any reasonable and appropriate action to limit such disclosure.

7. Scope Of Release.

          The provisions of this Release shall be deemed to obligate, extend to, and inure to the
benefit of the parties; the Company’s parents, subsidiaries, affiliates, successors, predecessors,
assigns, directors, officers, and employees; and each party’s insurers, transferees, grantees,
legatees, agents, personal representatives and heirs, including those who may assume any and all of
the above-described capacities subsequent to the execution and Effective Date of this Release.

8. Entire Release.

          This Release and the Agreement signed by Executive contain the entire agreement and
understanding between the parties and, except as reserved in Sections 3 and 6 of this Release,
supersede and replace all prior agreements, written or oral, prior negotiations and proposed
agreements, written or oral. Executive and the Company acknowledge that no other party, nor agent
nor attorney of any other party, has made any promise, representation, or warranty, express or
implied, not contained in this Release concerning the subject matter of this Release to induce this
Release, and Executive and the Company acknowledge that they have not executed this Release in
reliance upon any such promise, representation, or warranty not contained in this Release.

9. Severability.

          Every provision of this Release is intended to be severable. In the event any term or
provision of this Release is declared to be illegal or invalid for any reason whatsoever by a court
of competent jurisdiction or by final and unappealed order of an administrative agency of competent
jurisdiction, such illegality or invalidity should not affect the balance of the terms and
provisions of this Release, which terms and provisions shall remain binding and enforceable.

10. References.

          The Company agrees to follow the applicable policy(ies) regarding release of employment
reference information.

11. Parties May Enforce Release.

          Nothing in this Release shall operate to release or discharge any parties to this Release or
their successors, assigns, legatees, heirs, or personal representatives from any rights,

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claims, or causes of action arising out of, relating to, or connected with a breach of any
obligation of any party contained in this Release.

12. Governing Law.

          This Release shall be construed in accordance with and governed by the laws of the State of
Oregon, without regard to its conflicts of laws provisions.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Dated:
	 	 	 	 	, 	 	 	 
	 

 

	 	 	 	 	 	 

	 	 

	 	 

	 	 
	 

Keith Lambert

	 	 	 	 	 	 

	 	 

	 	 

	 	 

	 	 	 	 	 	 	 
	STATE OF OREGON	 	)	 	 
	 

	 	 	 	)	 	 
	County of

	 	 	 	)
	 	 
	 

	 	 	 	 	 	 

     Personally appeared the above named Keith Lambert and acknowledged the foregoing instrument to
be his voluntary act and deed.

	 	 	 	 	 	 	 	 	 
	     Before me:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	NOTARY PUBLIC — OREGON	 	 	 	 
	 

	 	 	 	My commission expires:
 

	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	RADISYS CORPORATION	 	 	 	 	 	 	 	 
	 
	By:

	 	 	 	 	 	Dated:	 	 	 	 
	Its:

	 	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	On Behalf of RadiSys Corporation and “Company”	 	 	 	 	 	 	 	 

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Exhibit 10.23

INDEMNITY AGREEMENT

     THIS AGREEMENT is made as of                     , 200___, by and between RadiSys Corporation, an
Oregon corporation (“Company”), and                      (“Indemnitee”), an officer or director of the
Company.

RECITALS

     A. It is essential to the Company to retain and attract as directors and officers the most
capable persons available.

     B. It continues to be the express policy of the Company to indemnify its directors and
officers so as to provide them with the maximum possible protection permitted by law from the costs
and expenses of such litigation risks. Each of the Second Restated Articles of Incorporation of
the Company (“Articles”) and the Restated Bylaws of the Company (“Bylaws”) require indemnification
of the directors of the Company to the fullest extent permitted by law. The Articles, Bylaws and
the Oregon Business Corporation Act (“Act”) expressly provide that the indemnification provisions
set forth in the Articles, Bylaws and the Act are not exclusive, and thereby contemplate that
contracts may be entered into between the Company and members of its board of directors and
officers with respect to indemnification of directors and officers.

     C. The Company and Indemnitee recognize the substantial increase in corporate litigation in
general, subjecting directors, officers, employees, agents and fiduciaries to expensive litigation
risks resulting from their service to the Company, at the same time as the availability and scope
of coverage of directors’ and officers’ liability insurance provide increasing challenges for the
Company.

     D. Indemnitee does not regard the protection available under the Articles, Bylaws and
insurance adequate in the present circumstances, and may not be willing to serve or continue to
serve as a director or officer without adequate protection, and the Company wants Indemnitee to
serve in that capacity free from undue concern from claims for damages arising out of or related to
such services to the Company.

     E. The Board of Directors of the Company (“Board”) has determined that the increased
difficulty in attracting and retaining highly qualified persons such as Indemnitee is detrimental
to the best interests of the Company’s shareholders and the Company should act to assure such
persons that there will be increased certainty of such protection in the future.

     NOW, THEREFORE, in consideration of the respective covenants and agreements provided in this
Agreement and for other good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged) the Company and Indemnitee agree as follows:

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     1. Services to the Company. Indemnitee will serve or continue to serve, at the will of the
Company, as a director or officer of the Company for so long as Indemnitee is duly elected or
appointed or until Indemnitee tenders a resignation in writing.

     2. Definitions. As used in this Agreement:

     (a) The term “Proceeding” shall include any actual, threatened, pending or completed
action or suit, investigation, inquiry, hearing or any other actual, threatened, pending or
completed proceeding, whether brought in the right of the Company or otherwise, whether
formal or informal, and whether of a civil, criminal, judicial, administrative, legislative
or investigative nature, in which Indemnitee may be or may have been involved as a party or
otherwise by reason of the fact that Indemnitee is or was a director or officer of the
Company or is or was serving at the request of the Company as a director, officer, or agent
of another corporation, partnership, joint venture, trust or other enterprise, whether or
not serving in such capacity at the time any liability or expense is incurred for which
indemnification or reimbursement can be provided under this Agreement.

     (b) The term “Expenses” includes, without limitation, expense of investigations,
whether formal or informal, judicial, legislative or administrative Proceedings or appeals,
attorneys’ fees, expenses customarily incurred in connection with preparing to prosecute,
defend, investigate or being or preparing to be a witness in, or otherwise participating in
a Proceeding, and disbursements and any expenses of establishing a right to indemnification
under Section 11 of this Agreement. Expenses shall also include expenses incurred in
connection with any appeal resulting from any Proceeding, including, without limitation, the
premium, security for, and other costs relating to any cost bond, supersedes bond, other
appeal bond or its equivalent. Expenses, however, shall not include amounts paid in
settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

     (c) References to “other enterprise” shall include employee benefit plans; references
to “fines” shall include any excise tax assessed with respect to any employee benefit plan;
reference to “serving at the request of the Company” shall include any service as a
director, officer, employee or agent of the Company which imposes duties on, or involves
services by, such director, officer, employee or agent with respect to an employee benefit
plan, its participants or beneficiaries; and a person who acted in good faith and in a
manner reasonably believed to be in the interest of an employee benefit plan shall be deemed
to have acted in a manner “not opposed to the best interests of the Company” as referred to
in this Agreement.

     (d) For purposes of any determination of good faith, Indemnitee shall be deemed to have
acted in good faith if Indemnitee’s action is based on the records or books of account of
the Company or other enterprise, including financial statements, or on information supplied
to Indemnitee by the officers of the Company or other enterprise in the course of their
duties, or on the advice of legal counsel for the Company or legal counsel to the applicable
other enterprise or the Board or counsel selected by any committee of the Board or on
information or records given or reports made to the

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Company or other enterprise by a certified public accountant or by an appraiser,
investment banker, compensation consultant, or other expert selected by the Company, the
other enterprise or the Board or any committee of the Board. The provisions of this Section
2(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in
which the Indemnitee may be deemed to have met the applicable standard of conduct.

     3. Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance
with the provisions of this Section 3 if Indemnitee is a party to or threatened to be made a party
to any Proceeding (other than a Proceeding by or in the right of the Company to procure a judgment
in its favor) against all Expenses, judgments, fines and amounts paid in settlement actually and
reasonably incurred by Indemnitee in connection with the Proceeding, but only if Indemnitee acted
in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the
best interests of the Company and, in the case of a criminal proceeding, in addition, had no
reasonable cause to believe that Indemnitee’s conduct was unlawful.

     4. Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is a party to or
threatened to be made a party to any Proceeding by or in the right of Company to procure a judgment
in its favor against all Expenses actually and reasonably incurred by Indemnitee in connection with
the defense or settlement of the Proceeding, but only if Indemnitee acted in good faith and in a
manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the
Company. No indemnification for Expenses shall be made under this Section 4 in respect of any
claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be
liable to the Company, unless and only to the extent that any court in which the Proceeding was
brought shall determine upon application that, despite the adjudication of liability but in view of
all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity.

     5. Indemnification of Expenses of Successful Party. Notwithstanding any other provisions of
this Agreement, to the extent that Indemnitee has been successful, on the merits or otherwise, in
defense of any Proceeding or in defense of any claim, issue or matter therein, including the
dismissal of an action without prejudice, the Company shall indemnify Indemnitee against all
Expenses incurred in connection therewith.

     6. Additional Indemnification.

     (a) Notwithstanding any limitation in Sections 3, 4 or 5, the Company shall indemnify
Indemnitee to the fullest extent permitted by law if Indemnitee is a party to or threatened
to be made a party to any Proceeding (including a Proceeding by or in the right of the
Company to procure a judgment in its favor) against all Expenses, judgments, fines and
amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with
the Proceeding. No indemnity shall be made under this Section 6(a) on account of
Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty of loyalty to the
Company or its shareholders or is an act or omission not in good faith or which involves
intentional misconduct or a knowing violation of the law.

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     (b) Notwithstanding any limitation in Sections 3, 4, 5 or 6(a), the Company shall
indemnify Indemnitee to the fullest extent permitted by law if Indemnitee is a party to or
threatened to be made a party to any Proceeding (including a Proceeding by or in the right
of the Company to procure a judgment in its favor) against all Expenses, judgments, fines
and amounts paid in settlement actually and reasonably incurred by Indemnitee in connection
with the Proceeding.

     (c) For purposes of Sections 6(a) and 6(b), the meaning of the phrase “to the fullest
extent permitted by law” shall include, but not be limited to:

     (i) to the fullest extent permitted by the provision of the Act that authorizes
or contemplates additional indemnification by agreement, or the corresponding
provision of any amendment to or replacement of the Act, and

     (ii) to the fullest extent authorized or permitted by any amendments to or
replacements of the Act adopted after the date of this Agreement that increase the
extent to which a corporation may indemnify its officers and directors.

     7. Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be
obligated under this Agreement to make any indemnity in connection with any claim made against
Indemnitee:

     (a) for which payment has actually been made to or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect to any excess beyond the
amount paid under any insurance policy or other indemnity provision;

     (b) for any transaction from which Indemnitee was adjudged liable on the basis that
Indemnitee derived an improper personal benefit;

     (c) for an accounting of profits made from the purchase and sale (or sale and purchase)
by Indemnitee of securities of the Company within the meaning of Section 16(b) of the
Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or
common law;

     (d) if a court having jurisdiction in the matter shall finally determine that such
indemnification is not lawful under any applicable statute or public policy; or

     (e) in connection with any Proceeding (or part of any Proceeding) initiated by
Indemnitee, or any Proceeding by Indemnitee against the Company or its directors, officers,
employees or other indemnitees, unless (i) the Company is expressly required by law to make
the indemnification, (ii) the Proceeding was authorized by the Board, (iii) the Company
provides the indemnification, in its sole discretion, pursuant to the powers vested in the
Company under applicable law, or (iv) Indemnitee initiated the Proceeding pursuant to
Section 11 of this Agreement and Indemnitee is successful in whole or in part in the
Proceeding.

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     8. Advances of Expenses. The Company shall pay all Expenses incurred by Indemnitee in any
Proceeding in advance, prior to the final disposition thereof, at the written request of
Indemnitee, if Indemnitee:

     (a) furnishes the Company a written affirmation in the form attached as Exhibit A or
such other form as meets the requirements of ORS 60.397 or successor statutes covering the
same subject matter of the Indemnitee’s good faith belief that Indemnitee is entitled to be
indemnified by the Company under this Agreement; and

     (b) furnishes the Company a written undertaking in the form attached as Exhibit A or
such other form as meets the requirements of ORS 60.397 or successor statutes covering the
same subject matter to repay the advance to the extent that it is ultimately determined by a
court of competent jurisdiction that Indemnitee is not entitled to be indemnified by the
Company. Advances shall be made without regard to Indemnitee’s ability to repay the
Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under
the other provisions of this Agreement.

     (c) Indemnitee’s right to advancement of Expenses pursuant to this Section 8 is not
subject to the satisfaction of any standard of conduct. Without limiting the generality or
effect of the foregoing, within five business days after any request by Indemnitee, the
Company shall, in accordance with such request (but without duplication), (a) pay such
Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to
pay such Expenses or (c) reimburse Indemnitee for such Expenses.

     9. Notification and Defense of Claim. Not later than forty-five (45) days after receipt by
Indemnitee of notice of the commencement of any Proceeding, Indemnitee will, if a claim in respect
of the Proceeding is to be made against the Company under this Agreement, notify the Company of the
commencement of the Proceeding. The omission to notify the Company will not relieve the Company
from any liability which it may have to Indemnitee otherwise than under this Agreement. With
respect to any Proceeding as to which Indemnitee notifies the Company of the commencement:

     (a) The Company will be entitled to participate in the Proceeding at its own expense.

     (b) Except as otherwise provided below, the Company may, at its option and jointly with
any other indemnifying party similarly notified and electing to assume such defense, assume
the defense of the Proceeding, with legal counsel reasonably satisfactory to the Indemnitee.
Indemnitee shall have the right to use separate legal counsel selected at Indemnitee’s sole
discretion in the Proceeding, but the Company shall not be liable to Indemnitee under this
Agreement, including Section 8 above, for the fees and expenses of separate legal counsel
incurred after notice from the Company of its assumption of the defense, unless (i)
Indemnitee reasonably concludes that there may be a conflict of interest between the Company
and Indemnitee in the conduct of the defense of the Proceeding or (ii) the Company does not
use legal counsel to assume the defense of such Proceeding. The Company shall not be
entitled to assume the defense of any Proceeding

5

 

brought by or on behalf of the Company or as to which Indemnitee shall have made the
conclusion provided for in (i) above.

     (c) If two or more persons who may be entitled to indemnification from the Company,
including the Indemnitee, are parties to any Proceeding, the Company may require Indemnitee
to use the same legal counsel as the other parties. Indemnitee shall have the right to use
separate legal counsel in the Proceeding, but the Company shall not be liable to Indemnitee
under this Agreement, including Section 8 above, for the fees and expenses of separate legal
counsel incurred after notice from the Company of the requirement to use the same legal
counsel as the other parties, unless the Indemnitee reasonably concludes that there may be a
conflict of interest between Indemnitee and any of the other parties required by the Company
to be represented by the same legal counsel.

     (d) The Company shall not be liable to indemnify Indemnitee under this Agreement for
any amounts paid in settlement of any Proceeding effected without its written consent, which
shall not be unreasonably withheld. Indemnitee shall permit the Company to settle any
Proceeding the defense of which it assumes, except that the Company shall not settle any
action or claim in any manner which would impose any penalty or limitation on Indemnitee
without Indemnitee’s written consent, which may be given or withheld in Indemnitee’s sole
discretion.

     10. Procedure Upon Application for Indemnification. Any indemnification under Sections 3, 4,
5 or 6 of this Agreement shall be made no later than 45 days after receipt of the written request
of Indemnitee for indemnification and shall not require that a determination be made in accordance
with the Act by the persons specified in the Act that indemnification is required under this
Agreement. However, unless it is ordered by a court in an enforcement action under Section 11 of
this Agreement, no such indemnification shall be made if a determination is made within such 45-day
period by (a) the Board by a majority vote of a quorum consisting of directors who were not parties
to the Proceeding, or (b)independent legal counsel in a written opinion (which counsel shall be
appointed if a quorum is not obtainable), that the Indemnitee is not entitled to indemnification
under this Agreement.

     11. Enforcement.

     (a) Any right to indemnification or advances granted by this Agreement to Indemnitee
shall be enforceable by or on behalf of Indemnitee in any court of competent jurisdiction if
(a) the Company denies the claim for indemnification or advances, in whole or in part, or
(b) the Company does not dispose of the claim within 45 days of a written request for
indemnification or advances. Indemnitee, in the enforcement action, if successful in whole
or in part, shall be entitled to be paid also the expense of prosecuting the claim. It
shall be a defense to any such enforcement action (other than an action brought to enforce a
claim for advancement of Expenses pursuant to Section 8 above, if Indemnitee has tendered to
the Company the required affirmation and undertaking) that Indemnitee is not entitled to
indemnification under this Agreement, but the burden of proving this defense shall be on the
Company. Neither a failure of the Company (including its Board or its shareholders) to make
a determination prior to the commencement of the enforcement action that indemnification of
Indemnitee is proper in

6

 

the circumstances, nor an actual determination by the Company (including its Board or
its shareholders) that indemnification is improper shall be a defense to the action or
create a presumption that Indemnitee is not entitled to indemnification under this Agreement
or otherwise. The termination of any Proceeding by judgment, order of court, settlement,
conviction or upon a plea of nolo contendere, or its equivalent, shall not, of itself,
create a presumption that Indemnitee is not entitled to indemnification under this Agreement
or otherwise.

     (b) In making any determination concerning Indemnitee’s right to indemnification, there
shall be a presumption that Indemnitee has satisfied the applicable standard of conduct, and
the Company may overcome such presumption only by its adducing clear and convincing evidence
to the contrary. Any determination concerning Indemnitee’s right to indemnification that is
adverse to Indemnitee may be challenged by the Indemnitee in the applicable court. No
determination by the Company (including without limitation by its directors or any
independent counsel) that Indemnitee has not satisfied any applicable standard of conduct
shall be a defense to any Claim by Indemnitee for indemnification or reimbursement or
advance payment of Expenses by the Company hereunder or create a presumption that Indemnitee
has not met any applicable standard of conduct.

     (c) The knowledge and/or actions, or failure to act, of any director, officer, agent or
employee of the Company or the Company itself shall not be imputed to Indemnitee for
purposes of determining the right to indemnification under this Agreement.

     12. Partial Indemnification. If Indemnitee is entitled under any provisions of this Agreement
to indemnification by the Company for some or part of the Expenses, judgments, fines and amounts
paid in settlement actually and reasonably incurred by Indemnitee in the investigation, defense,
appeal or settlement of any Proceeding but not, however, for the total amount, the Company shall
indemnify Indemnitee for the portion of the Expenses, judgments, fines and amounts paid in
settlement to which Indemnitee is entitled.

     13. Nonexclusivity and Continuity of Rights. The indemnification provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under the
articles of incorporation, the bylaws, any other agreement, any vote of shareholders or directors,
the Act, or otherwise, both as to action in Indemnitee’s official capacity and as to action in
other capacity while holding office. The indemnification under this Agreement shall continue as to
Indemnitee even though Indemnitee ceases to be a director or officer and shall inure to the benefit
of the heirs and personal representatives of Indemnitee.

     14. Maintenance of Liability Insurance. For the duration of Indemnitee’s service as a
director and/or officer of the Company, and thereafter for so long as Indemnitee shall be subject
to any pending or possible claim, the Company shall use commercially reasonable efforts (taking
into account the scope and amount of coverage available relative to the cost thereof) to cause to
be maintained in effect policies of directors’ and officers’ liability insurance providing coverage
for directors and/or officers of the Company that is at least substantially comparable in scope and
amount to that provided by the Company’s current policies of directors’ and officers’

7

 

liability insurance. The minimum AM Best rating for the insurance carriers of such insurance
carrier shall be not less than A- VI. The Company shall provide Indemnitee with a copy of all
directors’ and officers’ liability insurance applications, binders, policies, declarations,
endorsements and other related materials, and shall provide Indemnitee with a reasonable
opportunity to review and comment on the same. Without limiting the generality or effect of the
requirement to use best efforts to obtain insurance and give directors and chance to review the
proposal, the Company shall not discontinue or significantly reduce the scope or amount of coverage
from one policy period to the next without the prior approval thereof by a majority vote of the
directors, even if less than a quorum.

     15. Business Combinations. If any person or group (as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended) acquires the legal right to elect a majority of the
Board in a transaction or series of transactions that has not received the prior approval of the
Board, (a) the Company or its successor, as the case may be, shall, for a period of two years
following the date that such legal right is acquired (the “Trigger Date”), maintain any and all
directors and officers’ liability insurance in effect prior to the Trigger Date that covers
Indemnitee and (b) this Agreement shall remain in full force and effect and shall be binding on the
Company and any successor in accordance with its terms.

     16. Information Sharing. To the extent permitted by applicable law the Company shall promptly
provide to Indemnitee a complete copy of any information, filing, response to discovery request
(whether formal or informal), or other similar delivery of information Company has made to any
third party concerning any investigation, whether formal or informal, relating to Indemnitee.

     17. Severability. If this Agreement or any portion of it is invalidated on any ground by any
court of competent jurisdiction, the Company shall indemnify Indemnitee as to Expenses, judgments,
fines and amounts paid in settlement with respect to any Proceeding to the full extent permitted by
any applicable portion of this Agreement that is not invalidated or by any other applicable law.

     18. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee.
Indemnitee shall execute all documents required and shall do all acts that may be necessary to
secure such rights and to enable the Company effectively to bring suit to enforce such rights.

     19. Modification and Waiver. No supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by both parties. No waiver of any of the provisions of this
Agreement shall constitute a waiver of any other provisions of this Agreement (whether or not
similar) nor shall any waiver constitute a continuing waiver, unless expressly stated in any
waiver.

     20. Notices. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given (a) upon delivery if delivered by
hand to the party to whom the notice or other communication shall have been directed or (b) if
mailed by certified or registered mail with postage prepaid, on the third business day after the
date on which it is so mailed:

8

 

     (i) If to Indemnitee, at the address indicated on the signature page of this
Agreement, or to such other address as may have been furnished to the Company by
Indemnitee.

     (ii) If to the Company to

      RadiSys Corporation

      5445 NE Dawson Creek Drive

      Hillsboro, OR 97124

      Attention: CEO

     or to any other address as may have been furnished to Indemnitee by the Company.

     21. Counterparts. The parties may execute this Agreement in any number of counterparts, each
of which shall constitute the original.

     22. Applicable Law. This Agreement shall be governed by and construed in accordance with the
law of the state of Oregon.

     23. Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns.

     24. Entire Agreement. This Agreement (which term shall include any exhibits and schedules
hereto) constitutes the entire agreement of the parties hereto and supersedes and replaces any and
all prior agreements and understandings, both written and oral, between the parties with respect to
the subject matter hereof.

     25. Compliance with Code Section 409A. To the extent that the Board determines that any
indemnification or advances granted by this Agreement are subject to Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), this Agreement shall incorporate the terms and
conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code. To the
extent applicable, this Agreement shall be interpreted and construed in compliance with Section
409A of the Code and Department of Treasury regulations and other interpretive guidance issued
thereunder. Notwithstanding any provision of this Agreement to the contrary, in the event that the
Board determines that any indemnification or advances granted by this Agreement may be subject to
Code Section 409A, the Board may, without the consent of Indemnitee, adopt such supplements,
modifications and amendments to this Agreement or adopt other policies and procedures (including
supplements, modifications, amendments, policies and procedures with retroactive effect), or take
any other actions, that the Board determines are necessary or appropriate to (i) exempt the
indemnification and advances from Code Section 409A or (ii) comply with the requirements of Code
Section 409A and Department of Treasury regulations and other interpretive guidance issued
thereunder, provided that the Board shall provide written notice to Indemnitee within ten (10) days
of the date of any action taken by the Board pursuant to this Section 25, which notice shall
describe in reasonable detail the action taken (including, if applicable, provision of a copy of
any written supplement, modification, amendment, policy or procedure adopted) and the basis for the
determination that such action is necessary or appropriate.

9

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 	 	 
	RADISYS CORPORATION	 	 	 	INDEMNITEE  
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By: 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	Name:	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Address: 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

10

 

Exhibit A

Undertaking to Reimburse Advanced Expenses

     I,                    , hereby provide this undertaking pursuant to the requirements of ORS
60.391 and my contract of indemnity with RadiSys Corporation.

     I am involved in a proceeding covered by my Indemnity Agreement with RadiSys Corporation I
request that RadiSys Corporation pay for the reasonable expenses I incur in advance of the final
disposition of that proceeding, and that RadiSys Corporation reimburse me any reasonable expenses I
advance myself in the course of that proceeding.

     In support of my request, I affirm as follows:

     1. I believe in good faith that I have met the standard of conduct described in ORS 60.391;

     2. I undertake here the general and unlimited obligation to repay advances if it is ultimately
determined by a court that I did not meet the standard of conduct.

     This undertaking is intended to meet, and shall be construed to meet, the requirements for an
undertaking under ORS Section 60.397, and shall not be construed as extending beyond those
requirements.

	 	 	 	 	 	 	 
	Signed:

	 	 
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

11

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