Document:

Executive Incentive Plan

 Exhibit 10.1 
 

 
 Executive Incentive Plan 
 EFFECTIVE DATE: 
 This Executive Incentive Plan (EIP) begins on the first day of applicable fiscal year. Participants
in this Plan are Managers, Directors, Vice Presidents and above, or any other senior individuals designated by the CEO and CFO with respect to the applicable period. 
 OBJECTIVES: 
  

	 	•	 	To promote teamwork within the management group of Avici and to develop a strong sense of management identity with corporate and division/function results. 

 

	 	•	 	To reward the achievement of well defined financial and/or non-financial company and/or individual goals as established or approved by the Compensation Committee of the Avici Board
of Directors. 

  

	 	•	 	To promote communication of individual achievement against goals. 

  

	 	•	 	To reward management with total direct compensation commensurate with comparable companies whenever Avici achieves or exceeds established goals. 

 ELIGIBILITY: 
 Participants in this Plan are Managers, Directors, Vice
Presidents and above, or any other senior individuals designated by the CEO and CFO with respect to the applicable period. Those chosen hold jobs which directly impact the success of the corporation through the management of other employees or
through ongoing responsibility for managing programs or projects and who are not participating in any other Avici cash incentive plans. Participants in Sales or Systems Engineering Incentive Plans, if applicable, or any other special incentive plans
are not eligible. Participation in the Plan in any given year does not guarantee participation in future years. 
 PARTICIPATION and PLAN DESIGN:

 Each participant is assigned a payout percentage as defined below. The Plan is targeted at a percent of base pay as of the end of the applicable award
period within the fiscal year and is based on position level. Participants who join the Plan during the applicable award period may receive pro-rated awards based on the eligibility date. The targeted percentages are as follows: 
  

				
	 Position
	  	Payout at
Target	 
	 CEO, CFO & SVP
	  	35	%
	 VP levels
	  	20	%
	 Directors
	  	15	%
	 Sr. Managers
	  	10	%
	 Managers/Consulting Eng.
	  	7	%

  

	•	 	The award pool will be funded on attainment of the targets established or approved by the Company’s Compensation Committee. 

  

	•	 	Target and payment periods (e.g., quarterly, semi-annual, annual) will be established or approved by the Company’s Compensation Committee. 

  

	•	 	Incentives will be paid on a periodic basis, if targets are attained, following the applicable period. 

 DETERMINATION OF AWARDS: 
 Achievement of the approved targets will be used to fund the award pool and the
determination of the Compensation Committee regarding the attainment of any target or any matter associated with this Plan shall be final. 
 PAYMENT OF
AWARDS: 
 For an award to be earned by an employee he/she must be employed by the Company on the closing date of the applicable award period unless
otherwise determined by the Compensation Committee.

 Any employee joining the EIP during an interim period will be
pro-rated based on time in program. 
 NOT AN EMPLOYMENT CONTRACT: 
 Nothing contained in this document or the EIP creates any right for participants to continued employment or shall otherwise affect the participant’s status as an employee at will. 
 OPERATION AND INTERPRETATION OF THE PLAN: 
 The CEO and CFO of Avici
or the Compensation Committee can modify, cancel or suspend operation of the Plan without prior notice at any time. The Compensation Committee has the responsibility for the general administration of the Plan and shall be the final authority
regarding judgments, structuring and implementation of the Executive Incentive Program.Severance Pay Agreement with William J. Leighton

 Exhibit 10.2 
 SEVERANCE PAY AGREEMENT 
 This agreement is entered into by and between Avici Systems Inc. (the “Company”)
and William Leighton (“you”) effective as of March 15, 2006. 
 SEVERANCE PAY

 You will receive severance pay if you are terminated from employment with the Company without Cause or if you resign for Good Reason. 
 The amount of the severance pay will be twelve (12) months of your base salary at the rate in effect on your separation date, less applicable taxes. In addition,
you will continue to participate in the Company’s group health, dental, and vision insurance plans, and, to the fullest extent permitted by the plans and applicable law, the Company’s 401k plan and the Company-paid life insurance plan, at
the levels in effect on your separation date, for up to twelve (12) months. During this continuation period, the Company will pay the same percentage of your monthly group health, dental, vision, and life insurance premiums that it pays for
active employees. At the end of the twelve (12) month period, you will, to the fullest extent permitted by the plans and applicable law, be eligible to continue your group health, dental, and vision coverage for up to an additional eighteen
(18) months under COBRA. If you elect COBRA coverage you will be solely responsible for the full premium amounts. 
 To receive severance pay, you will
be required to sign a mutual release of claims (which will not require you to release any rights under this agreement, rights to indemnification or exculpation or rights under any applicable insurance policies, nor prohibit you from any form of
future employment with a competitive entity) in a form reasonably acceptable to you and the Company. Severance pay will be paid in accordance with the Company’s regular payroll practices beginning promptly after your signed release of claims
goes into effect. 
 STOCK OPTIONS 
 If you are terminated without Cause prior to a Change of Control, the vesting of your remaining unvested Company options will accelerate by six (6) months. 
 In the event of a Change of Control, you will receive accelerated vesting on 50% of your remaining unvested options. 
 If, in connection with or following a Change of Control, you are terminated without Cause or you resign for Good Reason, the vesting on all of your remaining unvested
options will be accelerated such that 100% of your options will become fully vested. 
 DEFINITIONS; OTHER

 A termination for “Cause” as used herein means your being terminated by the Company due to (a) willful misconduct or violation of
Company policy which causes material harm 

 
to the Company, (b) willful breach of an employment or other agreement with the Company which causes material harm to the Company, or (c) being
convicted of any felony. 
 A resignation for “Good Reason” as used herein means you resign because, following or at the time of a Change of
Control, (a) you are transferred to a different position or suffer a reduction in responsibility; (b) your compensation is decreased; (c) you are required to relocate more than fifty (50) miles from your work location immediately
prior to the Change of Control; or (d) you are excluded from any material compensatory or benefit plan or arrangement made available to similarly situated employees of the acquiring party. 
 “Change of Control” as used herein means the closing of (a) the sale of the Company by merger, consolidation or purchase of outstanding capital
stock in which the shareholders of the Company, as such, no longer own a majority of the outstanding equity securities of the Company or its successor; (b) any sale of all or substantially all of the assets of the Company, other than in a
spin-off or similar transaction; or (c) any other acquisition or disposition of the business or assets of the Company, as determined by the Board. 
 Assignment. This agreement will be binding on and inure to the benefit of the parties and the Company’s successors and assigns. 
 Employment at Will. This agreement is not an employment contract. Nothing in this agreement modifies your status as an employee at will or guarantees employment for any length of time. 
 Entire Agreement; Modification; Governing Law. Except as otherwise provided herein, this agreement constitutes the only agreement between you and the Company with
respect to the subject matter hereof, superseding in all respects any and all prior oral or written agreements or understandings pertaining to the subject matter hereof. This agreement may be amended or modified only in a writing signed by both you
and the Company. Any dispute concerning this agreement will be governed by the internal laws of Massachusetts. 
  
  

									
	AVICI SYSTEMS INC., by:	 		 	WILLIAM LEIGHTON
					
	Print name:	 	  
	 		 	 Print name:
	 	  

	Signature:	 	 /s/ Paul Brauneis
	 		 	Signature:	 	 /s/ William LeightonSeverance Pay Agreement with Paul F. Brauneis

 Exhibit 10.3 
 SEVERANCE PAY AGREEMENT 
 This agreement is entered into by and between Avici Systems Inc. (the “Company”)
and Paul Brauneis (“you”) effective as of March 15, 2006. 
 SEVERANCE PAY 

You will receive severance pay if, prior to, in connection with or following a Change of Control, you are terminated from employment by the Company or an acquiring
party without Cause or if you resign for Good Reason. 
 The amount of the severance pay will be twelve (12) months of your base salary at the rate in
effect on your separation date, less applicable taxes. In addition, you will continue to participate in the Company’s group health, dental, and vision insurance plans, and, to the fullest extent permitted by the plans and applicable law, the
Company’s 401k plan and Company-paid life insurance plan, at the levels in effect on your separation date, for up to twelve (12) months. During this continuation period, the Company will pay the same percentage of your monthly group
health, dental, vision, and life insurance premiums that it pays for active employees. At the end of the twelve (12) month period, you will, to the fullest extent permitted by the plans and applicable law, be eligible to continue your group
health, dental and vision coverage for up to an additional eighteen (18) months under COBRA. If you elect COBRA coverage, you will be solely responsible for the full premium amounts. 
 To receive severance pay, you will be required to sign a mutual release of claims (which will not require you to release any rights under this agreement, rights to
indemnification or exculpation or rights under any applicable insurance policies, nor prohibit you from any form of future employment with a competitive entity) in a form reasonably acceptable to you and the Company. Severance pay will be paid in
accordance with the Company’s regular payroll practices beginning promptly after your signed release of claims goes into effect. 
 STOCK OPTIONS 
 If you are terminated without Cause or resign for Good Reason prior to a Change of Control, the
vesting of your remaining unvested Company options will accelerate by six (6) months. 
 In the event of a Change of
Control, you will receive accelerated vesting on 50% of your remaining unvested options. 
 If, in connection with or following a Change of Control, you are
terminated without Cause or you resign for Good Reason, the vesting on all of your remaining unvested options will be accelerated such that 100% of your options will become fully vested. 

 DEFINITIONS; OTHER 
 A termination for “Cause” as used herein means your being terminated by the Company due to (a) willful misconduct or violation of Company policy which causes material harm to the Company,
(b) willful breach of an employment or other agreement with the Company which causes material harm to the Company, or (c) being convicted of any felony. 
 A resignation for “Good Reason” as used herein means you resign because (a) you are transferred to a different position or suffer a reduction in responsibility with the Company or an acquiring party; (b) your
compensation is decreased; (c) you are required to relocate more than fifty (50) miles; or (d) you are excluded from any material compensatory or benefit plan or arrangement made available to similarly situated employees. 

“Change of Control” as used herein means the closing of (a) the sale of the Company by merger, consolidation or purchase of outstanding capital
stock in which the shareholders of the Company, as such, no longer own a majority of the outstanding equity securities of the Company or its successor; (b) any sale of all or substantially all of the assets of the Company, other than in a
spin-off or similar transaction; or (c) any other acquisition or disposition of the business or assets of the Company, as determined by the Board. 
 Assignment. This agreement will be binding on and inure to the benefit of the parties and the Company’s successors and assigns. 
 Employment at Will. This agreement is not an employment contract. Nothing in this agreement modifies your status as an employee at will or guarantees employment for any length of time. 
 Entire Agreement; Modification; Governing Law. Except as otherwise provided herein, this agreement constitutes the only agreement between you and the Company with
respect to the subject matter hereof, superseding in all respects any and all prior oral or written agreements or understandings pertaining to the subject matter hereof. This agreement may be amended or modified only in a writing signed by both you
and the Company. Any dispute concerning this agreement will be governed by the internal laws of Massachusetts. 
  
  

									
	AVICI SYSTEMS INC., by:	 		 	PAUL BRAUNEIS
					
	Print name:	 	  
	 		 	 Print name:
	 	  

	Signature:	 	 /s/ William Leighton
	 		 	Signature:	 	 /s/ Paul Brauneis

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