Document:

exv10w1

EXHIBIT 10.1

 

AUFHEBUNGSVERTRAG / TERMINATION AGREEMENT

 

zwischen / between

TEKELEC GERMANY GMBH

und / and

WOLRAD CLAUDY

 

 

Aufhebungsvertrag / Termination Agreement

zwischen / between:

Tekelec Germany GmbH, Ecos Office Centre, Im Leuschnerpark 4, D-64347 Griesheim Germany

 - nachfolgend “Gesellschaft” / “Company” -

und / and

Wolrad Claudy, Roemerhofstr. 15, D-64823 Gross Umstadt, Germany

 - nachfolgend “Geschäftsführer” / “Managing Director” -

	 	 	 

	Herr Claudy ist Geschäftsführer der Gesellschaft. Sein
Anstellungsverhältnis wurde durch Vertrag vom
22.08.2008 begründet.

	 	Mr. Claudy is director of the Company. His
service relationship has been established by
contract of 22.08.2008.

	 
	 	 
	Dieses Anstellungsverhältnis wird wie folgt beendet:

	 	This service relationship ends as follows:

 

 

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	§ 1

Niederlegung des Amtes

	 	§ 1

Resignation from Office as Director
	 
	 	 
	Der Geschäftsführer legt auf Wunsch der Gesellschaft
bei der Unterzeichnung dieser Vereinbarung sein Amt als
Geschäftsführer der Gesellschaft sowie als
Geschäftsführer der iptelorg GmbH durch ein an die
Gesellschaft gerichtetes Schreiben nieder.

	 	On request by the Company, on signature of this
agreement the Managing Director shall resign from
office as director of the Company and as director
of iptelorg GmbH by way of a letter addressed to
the Company.

	 
	 	 
	An der Berichtigung der Handelsregister wirkt der
Geschäftsführer mit.

	 	The Managing Director shall cooperate with regard
to amendments of the commercial register.

	 
	 	 
	§ 2

Beendigung Dienstvertrag

	 	§ 2

Termination of the Service Contract
	 
	 	 
	Die Vertragsparteien sind sich einig, dass das zwischen
ihnen bestehende Anstellungsverhältnis auf
Veranlassung der Gesellschaft mit dem 31.10.2011 sein
Ende finden wird.

	 	The parties to the contract agree that the
service relationship existing between them shall
be terminated at the instigation of the Company
as of 31.10.2011.

	 
	 	 
	§ 3

Freistellung

	 	§ 3

Release from Duties
	 
	 	 
	(1)  Der Geschäftsführer wird sofort im
Anschluss an die Unterzeichnung dieses Vertrages für
den Zeitraum von drei Monaten widerruflich von der
Verpflichtung zur Erbringung der Arbeitsleistung unter
Fortzahlung der vereinbarten Vergütung gem. § 4
freigestellt. Während dieses Zeitraums hat er sich
für die bestimmte Aufgaben auf Abruf zur Verfügung zu
halten, insbesondere, aber nicht abschließend, für folgende
Aufgaben: Bericht über den aktuellen Status wichtiger Kundenbeziehungen, Übergabe von
Kundenbeziehungen inkl. Kundenbesuche,
 Einführung von
Tekelec Mitarbeitern bei wichtigen Kunden etc.

Nach Ablauf dieses Zeitraums von drei Monaten
bleibt die Freistellung

	 	(1)  The Managing Director shall be revocably
released from the duty to perform his work
immediately after signature of this Agreement and
for the duration of three months, while
continuing to receive the remuneration stipulated
in § 4. During this period he shall ensure that
he is on call for specific tasks, in particular,
but not exclusively for the following tasks: Status of customer accounts, transitions of
customer relationships including physically
visiting customers and introducing Tekelec
employees to important customers etc.

 After the expiry of this three months period, the
Managing Director shall remain re-

 

 

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	      unwiderruflich unter Fortzahlung der vereinbarten Vergütung gem. §
4 und unter Anrechnung noch bestehender
Urlaubsansprüche bis zum Beendigungstermin
aufrecht erhalten. Während der Zeit der
Freistellung finden § 615 Satz 2 und § 326
Abs. 2 Satz 2 BGB keine Anwendung.

	 	      leased from his obligation to perform his contractual duties
(placed on garden leave) irrevocably, while
continuing to receive the remuneration stipulated
in § 4. Any outstanding leave and/or time off in
lieu shall be deemed taken during this period.
While the Managing Director is on garden leave, §
615, second sentence and § 326 para. 2, second
sentence, of the German Civil Code (BGB) shall
not be applicable.

	 
	 	 
	(2)  Wettbewerbstätigkeit zu Lasten
der Gesellschaft ist
und bleibt der Geschäftsführer während der Freistellung
untersagt. Entsprechendes gilt für die Begründung oder
Beteiligung an einem Wettbewerb treibenden Unternehmen,
ausgenommen der Erwerb börsengängiger Wertpapiere im
Rahmen üblicher Kapitalanlage (bis max 5% des
Grundkapitals des jeweiligen Unternehmens).

	 	(2)  The Managing Director shall not engage in any
competitive
activity to the detriment of the
Company during the period in which he is released
from his duties. The same shall apply to the
establishment of or participation in a
competitive company with the exception of the
acquisition of securities in a listed company in
the scope of normal capital investments (up to a
maximum of 5% of the share capital in the
respective company).

	 
	 	 
	(3)  Der Geschäftsführer wird während
der Freistellung
beabsichtigte Erwerbstätigkeit oder unternehmerische
Tätigkeit der Gesellschaft jeweils unverzüglich und vor
deren Aufnahme schriftlich anzeigen und sie
unterlassen, soweit die Gesellschaft aus vorgenannten
Gründen widerspricht. Eine etwaige Vergütung aus
solcher Erwerbstätigkeit oder unternehmerischer
Tätigkeit ist nicht auf Vergütungsansprüche des
Geschäftsführers aus dieser Vereinbarung anzurechnen.

	 	(3)  The Managing Director shall notify the
Company in
writing without undue delay of any
gainful occupation or entrepreneurial activity in
which he intends to engage during the period for
which he is released from his duties before
commencing such activity and refrain therefrom
should the Company object for the above-mentioned
reasons. Any remuneration received from such
gainful occupation or entrepreneurial activity
shall not be offset against the claims for
remuneration of the Managing Director under this
Agreement.

	 
	 	 
	§ 4

Vertragliche Bezüge

	 	§ 4

Contractual Remuneration
	 
	 	 
	(1)  Der Geschäftsführer erhält monatlich
bis zum Ende
des Dienstvertrages seine festen vertraglichen Bezüge
in Höhe von EUR 16.250 brutto sowie die Pkw-Zulage in Höhe

	 	(1)  The Managing Director shall receive his fixed
contractual
base remuneration of EUR 16.250 gross
and car allowance of EUR 1.926,13 gross on a monthly basis until the

 

 

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	      von 1.926,13 EUR brutto. Die Gesellschaft wird bis
zum Ende des Dienstvertrages die
Sozialversicherungsbeiträge für den Geschäftsführer
weiterzahlen.

	 	      Service Contract ends.
The Company will continue to pay the social
security contributions for the Managing Director
until the Service Contract ends.

	 
	 	 
	(2)  Darüber hinaus hat der Geschäftsführer
bis zum Ende
des Dienstvertrages Anspruch auf die variable
Vergütung, die ihm gemäß des veröffentlichten 2011
Sales Compensation Plan for Wolrad Claudy zusteht.
Diese variabel Vergütung ist unverfallbar. Eine
einseitige Abänderung des Sales Compensation Plan for
Wolrad Claudy durch die Gesellschaft ist unzulässig.

	 	(2)  In addition the Managing Director is entitled
to receive
commissions deemed earned until the
Service Contract ends as described in the
publically filed 2011 Sales Compensation Plan for
Wolrad Claudy. This commission is
non-forfeitable. A unilateral change of the Sales
Compensation Plan for Wolrad Claudy by the Company is impermissible.

	 
	 	 
	§ 5

Abfindung, Officer Severance Plan

	 	§ 5

Severance Payment, Officer Severance Plan
	 
	 	 
	(1)  Die Gesellschaft zahlt dem
Geschäftsführer für den
Verlust der Anstellung gemäß § 2 dieser Vereinbarung
eine Abfindung, die auch die Fortzahlung sämtlicher
bisheriger von der Gesellschaft für den Geschäftsführer
getragenen Krankenversicherungsbeiträge beinhaltet und
deren Höhe und Dauer sich nach dem nachstehenden Absatz
(2) und ergänzend nach dem anwendbaren Officer
Severance Plan richtet. Die Gesellschaft bestätigt,
dass der Geschäftsführer zum Erhalt der Abfindung nach
dem anwendbaren Officer Severance Plan mit der Position
,,EVP” berechtigt ist. Die Gesellschaft bzw. ein
etwaiger Rechtsnachfolger der Gesellschaft ist
Schuldner dieser Abfindung. Tekelec Inc., 5200
Paramount Parkway, Morrisville, NC 27560, USA, oder ein
etwaiger Rechtsnachfolger wird für den
Abfindungsanspruch eine unbefristete, unwiderrufliche,
selbstschuldnerische Bürgschaft auf erstes Anfordern
gegenüber dem Geschäftsführer erklären. Der

	 	(1)  As compensation for the loss of his
employment pursuant
to § 2 of this Agreement the
Company shall pay the Managing Director a
severance payment which also includes continued
payment of Health Care Coverage paid by the
Company for the Managing Director up to now and
whose amount and period shall be determined
pursuant to paragraph (2) below and in addition
pursuant to the applicable Officer Severance
Plan. The Company confirms that the Managing
Directory is eligible to receive the severance
payment under the applicable Officer Severance
Plan with the position “EVP”. The Company or a
possible successor in title is debtor of the
severance payment. Tekelec Inc., 5200 Paramount
Parkway, Morrisville, NC 27560, USA, or a
possible successor in title shall provide an
unlimited, irrevocable, absolute declaration of
suretyship on first demand for the claim of
severance payment to the Managing Director. The
claim of the Managing Director for payment of the
severance payment is heritable at once.

 

 

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	      Anspruch
des Geschäftsführers auf Zahlung der Abfindung ist
sofort vererblich.

	 	 

	(2)  Die Abfindung ist wie folgt zu zahlen:

	 	(2)  The severance payment shall be paid as follows:

	 
	 	 
	       a)  Die monatlichen Raten in Höhe von je EUR
27.625 für die Monate November 2011, Dezember
2011 und Januar 2012 werden gemeinsam durch
eine Gesamtzahlung in Höhe von EUR 82.875 zum
bei der Gesellschaft üblichen
Zahlungszeitpunkt im Januar 2012, spätestens
am 31. Januar 2012, gezahlt.

	 	       a)  The monthly installments
in the amount of EUR
27,625 each, for the months of November 2011,
December 2011 and January 2012 will be jointly
paid as an aggregate payment in the amount of EUR
82,875 effective at the regular pay period date
of the Company in January 2012, at the latest on 31 January 2012.

	 
	 	 
	       b)  Die monatlichen Raten in Höhe von je EUR
27.625 für die Monate Februar 2012 bis
Oktober 2012 werden in den jeweiligen Monaten
zum bei der Gesellschaft in diesen Monaten
üblichen Zahlungszeitpunkt, spätestens
jeweils zum Monatsletzten, als Einzelraten in
Höhe von je EUR 27.625 gezahlt.

	 	       b)  The monthly
installments in the amount of EUR
27,625 each, for the months of February 2012 to
October 2012 will be paid each month effective at
the regular pay period date of the Company in the
respective month, at the latest on the last day of the respective month, as individual
installments in the amount of EUR 27,625 each.

	 
	 	 
	       c)  Die monatlichen Raten für die Monate
November 2012 bis April 2013 werden gemeinsam
durch eine Gesamtzahlung in Höhe von EUR
165.750 zum bei der Gesellschaft üblichen
Zahlungszeitpunkt im November 2012,
spätestens am 30. November 2012, gezahlt.

	 	       c)  The monthly
installments for the months of
November 2011 to April 2013 will be jointly paid
as an aggregate payment in the amount of EUR
165,750 effective at the regular pay period date
of the Company in November 2012, at the latest on 30 November 2012.

	 
	 	 
	       d)  Die Fortzahlung der bisherigen von der
Gesellschaft für den Geschäftsführer
getragenen Krankenversicherungsbeiträge
erfolgt durch eine pauschale Einmalzahlung in
Höhe von EUR 4.878,18 zum bei der
Gesellschaft üblichen Zahlungszeitpunkt im
Juni 2012, spätestens am 30. Juni 2012.

	 	       d)  Continued payment of the health insurance
contributions previously borne by the Company for
the managing director shall be effected by way of
a fixed one-time payment in the amount of EUR
4,878.18 effective at the regular pay period date
of the Company in June 2012 at the latest on 30 June 2012.

	 
	 	 
	(3) Die Gesellschaft übernimmt keine Gewähr
für die steuerliche Behandlung der 
	 	(3) The Company accepts no liability for the tax
treatment of the severance payment by the

 

 

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	      Abfindungszahlung
durch die Finanzbehörden. Etwaige anfallende Steuern
auf die Abfindung sind vom Geschäftsführer zu
tragen.
	 	      fiscal
authorities. Any taxes which are due on the
severance payment shall be borne
by the managing director.

	(4)  In Anwendung von Ziffer 7 des Attachment
I zum Officer Severance Plan, welches diesem Vertrag
vom Geschäftsführer unterschrieben als Anlage 1 beigefügt
ist, unterliegt der Geschäftsführer bis zum 30.04.2013
dem dort beschriebenen
Wettbewerbsverbot.

	 	(4)  In implementation of Clause 7 of the
Attachment I on the Officer Severance Plan, which
is attached to this contract signed by the
managing director as Annex 1, the managing
director shall be subject to the non-compete
clause described there until 30 April 2013.

	 
	 	 
	§ 6

Reisekosten

	 	§ 6

Travel Expenses
	 
	 	 
	(1)  Der Geschäftsführer reicht alle offenen
Reisekosten, die bis einschließlich 31.10.2011
angefallen sind, bis spätestens 31.10.2011 ein. Die
Auszahlung der dem Geschäftsführer vertragsgemäß
zustehenden Reisekosten durch die Gesellschaft erfolgt
unter Anrechnung eines etwaigen Reisekostenvorschusses.

	 	(1)  The Managing Director shall submit any
outstanding travel expenses incurred up to and
including 31 October 2011 no later than 31
October 2011. Any advance granted on travel
expenses shall be deducted from the payment of
any travel expenses due to the Managing Director under the contract.

	 
	 	 
	(2)  Weitere Reisekosten werden nicht
erstattet. Ein nicht durch erstattungsfähige
Reisekosten verbrauchter Reisekostenvorschuss ist
unverzüglich an die Gesellschaft zurückzuzahlen.

	 	(2)  No further travel expenses will be
reimbursed. Any advance on travel expenses which
has not been used up by reimbursable travel
expenses shall be paid back to the Company without undue delay.

	 
	 	 
	§ 7

Herausgabe

	 	§ 7

Return of Company Property
	 
	 	 
	Der Geschäftsführer wird der Gesellschaft alle ihm von
oder auf Veranlassung der Gesellschaft überlassenen,
nicht bestimmungsgemäß an Dritte
weitergegebenen/vernichteten Gegenstände, insbesondere
sämtliche Geschäftsunterlagen, einschließlich
Datenträger, private dienstliche Aufzeichnungen (auch
Kopien davon), spätestens zum 31.07.2011 in
ordnungsgemäßem Zustand

	 	The Managing Director shall return to the Company
any items provided to him by or at the
instigation of the Company which have not been
duly passed on to third parties/destroyed, in
particular all business documents, including data
carriers, private business records (including
copies thereof) no later than
31 July 2011 in a
proper condition to the Company for the attention
of Ms. Judith Bar-

 

 

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	am Sitz der Gesellschaft zu Händen Frau Judith Barnett zurückgeben. Schriftstücke
und Unterlagen, die sein persönliches
Vertragsverhältnis betreffen, dürfen von dem
Geschäftsführer einmal kopiert und als Kopie zur
Wahrnehmung seiner persönlichen Interessen behalten
werden. Der Geschäftsführer wird der Gesellschaft die
von ihm kopierten Dokumente schriftlich auflisten und
diese Dokumente gesondert von den übrigen Gegenständen
herausgeben. Soweit sich Unterlagen/Kopien auf privat
gehörenden EDV-Geräten/Datenträgern des
Geschäftsführers befinden, sind die Dateien auf
Datenträger zu überspielen, die Datenträger wie die
anderen Gegenstände an die Gesellschaft herauszugeben
und die Daten auf der privaten EDV unverzüglich zu
löschen. Zurückbehaltungsrechte sind ausgeschlossen.

	 	nett. The Managing Director may
make one copy of letters/documents concerning his
contractual relationship and retain a copy
thereof for the purpose of safeguarding his
personal interests. The Managing Director shall
provide the Company with a written list of the
documents which he has copied and return these
separately from the other items. Should there be
any documents/copies on privately owned IT
equipment/data carriers of the Managing Director
the files shall be copied onto discs, the discs
shall be returned to the Company in the same way
as the other items and the files on private IT
equipment shall be deleted without undue delay.
There shall be no rights of retention.

	 
	 	 
	§ 8

Laptop, Mobiltelefon

	 	§ 8

Laptop, Mobile Phone
	 
	 	 
	(1)  Während der Freistellung ist der Geschäftsführer
befugt, folgende Einrichtungen der Gesellschaft
kostenfrei zu nutzen: Laptop und Mobiltelefon. Er ist
verpflichtet, Laptop und Mobiltelefon spätestens am
31.07.2011 an die Gesellschaft zurückzugeben.
Zurückbehaltungsrechte sind ausgeschlossen.

	 	(1)  During the period for which he is released
from his duties the Managing Director shall be
authorized to use the following facilities of the
Company free of charge: laptop and mobile phone.
He is obliged to return laptop and mobile phone
to the Company on 31 July 2011 at the latest.
There shall be no rights of retention.

	 
	 	 
	(2)  Der Geschäftsführer ist berechtigt, seine bisher
dienstlich genutzte Mobilfunknummer auch nach dem
Rückgabetermin privat weiter zu nutzen. Dies ist nicht
mit Kosten für die Gesellschaft verbunden. Sollten –
auch nach dem Rückgabetermin – auf der Telefonnummer
des Geschäftsführers Anrufe für die Gesellschaft
eingehen, so verpflichtet sich der Geschäftsführer,
diese an die Gesellschaft weiterzuleiten.

	 	(2)  The Managing Director shall be entitled to
continue to privately use his cell phone number
previously used for business purposes also
subsequent to the date of return. This is not
associated with costs for the Company. Should
calls come in for the Company on the Managing
Director’s cell phone number - also subsequent to
the date of return -, the managing director gives
an undertaking to transfer such calls to the

 

 

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	 	 	     Company.

	 
	§ 9

Geheimhaltung

	 	§ 9

Confidentiality
	 
	 	 
	(1)  Die Vertragsparteien verpflichten sich hiermit,
über den Anlass der Amtsniederlegung sowie über den
Inhalt dieser Aufhebungsvereinbarung vorbehaltlich
nachfolgender Ziffern Stillschweigen zu wahren. Diese
Verschwiegenheitspflicht, die zeitlich unbegrenzt ist,
gilt nicht, soweit

	 	(1)  The contractual parties shall observe strict
confidentiality with regard to the reasons which
have occasioned the resignation from office and
the content of this termination agreement subject
to the following. This confidentiality
obligation, on which there is no time limitation, shall not apply if

	 
	 	 
	      a)  die Informationsweitergabe mit Zustimmung
des durch die Verschwiegenheit zu Schützenden
erfolgt oder in seinem Interesse zweifelsfrei
erforderlich ist;

	 	      a)  the information is disclosed with the consent
of the party to be protected by the
confidentiality or if such disclosure is
undoubtedly necessary and in its interest;

	 
	 	 
	      b)  eine gesetzliche Pflicht zur Auskunft
besteht (z. B. gegenüber Finanz-/Arbeitsamt,
Ehepartner);

	 	      b)  there is a statutory obligation to provide
information (e.g. towards the tax/employment
authorities, spouse);

	 
	 	 
	      c)  die jeweilige Information ohne Verletzung
der dem jeweiligen Vertragsteil obliegenden
Verschwiegenheitspflicht zum jeweiligen
Zeitpunkt bereits allgemein bekannt geworden
ist.
	 	      c)  the respective information is already
generally available without a breach of the
confidentiality obligation incumbent on the
respective party at the respective point in time.

	 
	 	 
	(2)  Der Geschäftsführer wird über alle ihm anlässlich
seiner Tätigkeit für die Gesellschaft zur Kenntnis
gelangten, nicht allgemein bekannten
geschäftlichen/persönlichen Angelegenheit der
Gesellschaft, der mit ihr verbundenen Unternehmen
und/oder von Mitarbeitern, Kunden und Lieferanten aller
vorgenannten Gesellschaften, auch soweit diese
Angelegenheit ihm gegenüber nicht ausdrücklich als
vertraulich bezeichnet

	 	(2)  The Managing Director shall observe
confidentiality vis-à-vis third parties with
regard to all business/personal matters of the
Company, all affiliated companies and/or
employees, customers and suppliers of all the
above-mentioned companies which have become known
to him in the course of his work for the Company
and which are not generally known, even if he has
not been expressly told that such matters are
confidential. This confidentiality obligation is
not 

 

 

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	      wurden, Dritten gegenüber
Stillschweigen bewahren. Auch diese
Verschwiegenheitspflicht ist zeitlich unbegrenzt und
vorbehaltlich der unter Abs. 1 Satz 2 geregelten
Ausnahmen.
	 	     subject to a time restriction either and is
subject to the exceptions set out under sentence
2 of para. (1).

	 
	§ 10

Zeugnis

	 	§10

Reference
	 
	 	 
	Der Geschäftsführer erhält von der Gesellschaft ein
wohlwollendes, qualifiziertes Schlusszeugnis. Auf
Verlangen wird ihm ein Zwischenzeugnis ausgestellt.

	 	The Company shall provide the Managing Director
with a favorable qualified final reference. On
request he will be issued with an intermediate
reference.

	 
	 	 
	§ 11

Company Pension Plan

	 	§ 11

Company Pension Plan
	 
	 	 
	Die Parteien sind sich darüber einig, dass der
Geschäftsführer die gemäß des Company Pension Plan
erworbenen Ansprüche gemäß den Bestimmungen des Company
Pension Plan ausüben kann.

	 	The parties agree that the Managing Director will
have access to vested monies in the company
pension plan per the terms of the plan.

	 
	 	 
	§ 12

Sozialleistungen

	 	§ 12

Social Benefits
	 
	 	 
	(1)  Dem Geschäftsführer ist bekannt, dass verbindliche
Auskunft über steuerrechtliche und
sozialversicherungsrechtliche Auswirkungen dieser
Vereinbarung, insbesondere auch der Freistellung, nur
die Sozialversicherungsträger und das Finanzamt
erteilen.

	 	(1)  The Managing Director is aware that binding
information on the tax and social insurance
implications of this agreement, in particular
release from duties, may only be provided by the
social insurance authority and the tax office.

	 
	 	 
	(2)  Dem Geschäftsführer ist bekannt, dass die
langfristige Freistellung zur Beendigung eines
sozialversicherungsrechtlichen
Beschäftigungsverhältnisses führen kann und die
Sozialversicherungsträger ihm gegenüber insoweit zur
Auskunft berufen

	 	(2)  The Managing Director is aware that a
long-term release from duties may lead to
termination of an employment relationship which
is subject to social insurance law and that the
social insurance authority may and is obliged to
require him to provide informa-

 

 

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	      und verpflichtet sind.
	 	      tion.

	 
	(3)  Dem Geschäftsführer ist insbesondere bekannt, dass
er sich gemäß § 38 Abs. 1 SGB III spätestens drei
Monate vor Beendigung des Arbeitsverhältnisses
persönlich bei der Agentur für Arbeit arbeitssuchend zu
melden hat. Liegen zwischen der Kenntnis des
Beendigungszeitpunkts und der Beendigung des
Arbeitsverhältnisses weniger als drei Monate, hat die
Meldung innerhalb von drei Tagen nach Kenntnis des
Beendigungszeitpunktes zu erfolgen. Andernfalls können
Nachteile beim Bezug von Arbeitslosengeld entstehen.

	 	(3)  The Managing Director has also been informed
that under § 38 subparagraph 1 of the Social Code
III (Sozialgesetzbuch III) he must report to the
employment agency (Agentur für Arbeit) in person
registering availability for employment three
months at the latest before the end of the
employment relationship. If there are less than
three months between when he gains knowledge of
the time when the employment relationship will
end and the end of the employment relationship
itself he/she must report as set out above within
three days of when he gains knowledge of the time
when the employment relationship will end.
Failure to do this could adversely affect your
entitlement to unemployment benefit.

	 
	 	 
	§ 13

Entlastung/Erledigungsklausel

	 	§ 13

Ratification of Acts/Settlement Clause
	 
	 	 
	Die Vertragsparteien sind sich darüber einig, dass mit
dieser Vereinbarung und den Regelungen, auf die diese
Vereinbarung Bezug nimmt, insbesondere dem Officer
Severance Plan, sämtliche Ansprüche der Parteien aus
oder im Zusammenhang mit dem Anstellungsverhältnis und
aus Anlass seiner Beendigung, gleich aus welchem
Rechtsgrund, abschließend geregelt und nicht geregelte
erledigt sind. Hiervon erfasst sind etwaige Ansprüche
des Herrn Claudy gegen Unternehmen, die mit der
Gesellschaft verbunden sind. Soweit hierin ein Verzicht
liegt, wird dieser wechselseitig erklärt und
angenommen.

	 	The parties to the agreement agree that any
claims of the parties arising from or associated
with the service relationship and its
termination, irrespective of legal reason, have
been finally regulated under this Agreement and
the provisions to which this Agreement refers, in
particular the Officer Severance Plan, and that
any which have not been regulated are also
settled. This also applies to any claims of the
Managing Director towards companies affiliated
with the Company. Should this entail a waiver
this shall be declared mutually and accepted.

	 
	 	 
	§ 14

Schlussbestimmungen

	 	§ 14

Final Provisions
	 
	 	 
	(1)  Eine Aufrechnung durch die Gesellschaft ist

	 	(1)  The Company may only make a set-off if its

 

 

Seite 11
     
     

	 	 	 

	      ausgeschlossen, es sei denn, die Gegenforderung der
Gesellschaft ist unbestritten oder rechtskräftig
festgestellt. Der Gesellschaft steht ein
Zurückbehaltungsrecht nur zu, soweit ihr Gegenanspruch
auf demselben Vertragsverhältnis beruht.

	 	      counterclaim is undisputed or has become final
and conclusive. The Company may only assert a
right of retention if its counterclaim is based
on the same contractual relationship.

	 
	 	 
	(2)  Die Kosten für die Rechtsberatung des
Geschäftsführers in Zusammenhang mit der Verhandlung
und dem Abschluss dieser Vereinbarung trägt die
Gesellschaft in Höhe von bis zu EUR 5.000.

	 	(2)  The costs for legal advice to the Managing
Director in connection with the negotiation and
conclusion of this Agreement shall be borne by
the Company up to EUR 5,000.

	 
	 	 
	(3)  Schriftform/Nebenabreden: Nebenabreden wurden nicht
getroffen. Etwaige früher getroffene Vereinbarungen
(insbesondere Arbeits- und Dienstverhältnisse) werden
hiermit gegenstandslos, es sei denn, auf diese wird in
dieser Vereinbarung Bezug genommen. Änderungen und
Ergänzungen dieses Vertrages bedürfen zu ihrer
Wirksamkeit der Schriftform; die elektronische Form und
die Textform sind ausgeschlossen. Satz 3 gilt auch für
die Aufhebung, Änderung oder Ergänzung des
Schriftformerfordernisses selbst. Individuelle
Vereinbarungen haben stets Vorrang und gelten auch ohne
Beachtung des Formerfordernisses (§ 305 b BGB).

	 	(3)  Written Form/Collateral Agreements: No
collateral agreements have been concluded. This
Agreement shall deprive any previously concluded
agreements (in particular, employment agreements
and management agreements) of legal force unless
this Agreement refers to it. Any amendments and
additions to this Agreement must be made in
written form to be valid; electronic form and
text form are ruled out. Sentence 3 shall also
apply to any revocation of, amendment to or
addition to the written form requirement itself.
Individual agreements shall always have priority
and shall apply regardless of the written form
requirement (§ 305 b of the Civil Code).

	 
	 	 
	(4)  Die deutsche Fassung dieses Vertrages ist
maßgeblich.

	 	(4)  The German version of this Agreement shall be
definitive.

	 
	 	 
	(5)  Salvatorische Klausel: Sollten einzelne
Bestimmungen dieses Vertrags ganz oder teilweise
nichtig oder unwirksam sein oder werden, so wird
dadurch die Wirksamkeit der übrigen Bestimmungen nicht
berührt. An die Stelle von nicht einbezogenen oder
unwirksamen Allgemeinen Geschäftsbedingungen tritt das
Gesetzesrecht (§ 306 Abs. 2 BGB). Im Übrigen werden die
Parteien anstelle der nichtigen oder unwirksamen
Bestimmung
	 	(5)  Severability clause: Should one or more
provisions of this Agreement be or become invalid
or unenforceable in whole or in part, this shall
not affect the validity and enforceability of the
remaining provisions of this Agreement. In place
of any Standard Terms of Business (Allgemeine
Geschäftsbedingungen) which are invalid or not
incorporated in the Agreement the statutory
provisions shall apply (§ 306 (2) of the German
Civil Code (BGB)). In all other cases, the

 

 

Seite 12
     
     

	 	 	 
	      eine wirksame Regelung treffen, die ihr
wirtschaftlich möglichst nahe kommt, soweit keine
ergänzende Vertragsauslegung vorrangig oder möglich
ist.
	 	      parties shall agree a valid provision to replace
the invalid or unenforceable provision which
reflects as closely as possible the original
economic purpose, provided a supplementary
interpretation of the Agreement (ergänzende
Vertragsauslegung) does not have precedence or is
not possible.

	(6)  Inkrafttreten: Dieser Aufhebungsvertrag tritt mit
Unterzeichnung in Kraft. Anlage 1 zu diesem
Aufhebungsvertrag tritt zum Beendigungstermin, mithin
mit Ablauf des 31.10.2011 in Kraft.

	 	(6)  Entering into effect: This Agreement takes
effect when signed by both parties. Annex 1 to
this Agreement takes effect when the Service
Contract ends, that is with expiration of 31
October 2011.

	 	 	 
	  N.C.     ,
  28 April 2011        
     
     
	 	  Griesheim
   , April 29th, ‘11        
     
     

	 
	Place, Date

	 	Place, Date
	 
	 	 
	  /s/ Stuart Kupinsky        
            
     

	 	  /s/ W. Claudy        
            
          
     
    

	Stuart Kupinsky

	 	Wolrad Claudy
	Representative of the Shareholders
	 	 

 

 

Annex 1

EMPLOYMENT SEPARATION AGREEMENT

     THIS EMPLOYMENT SEPARATION AGREEMENT (the “Agreement”), which includes Exhibit A incorporated
herein by this reference, is entered into by and between TEKELEC, a California corporation
(“Tekelec”), and Wolrad Claudy(“Former Employee”), and shall become effective when Wolrad Claudy
ceases to be an employee and officer of Tekelec (the “Effective Date”).

RECITALS

     A. Wolrad Claudy ceases to be an employee and officer of Tekelec on October 31, 2011 (the
“Termination Date”).

     B. Former Employee desires to receive severance benefits under Tekelec’s Officer Severance
Plan dated ___ (the “Severance Plan”), which benefits are stated in the Severance Plan to be
contingent upon, among other things, Former Employee’s entering into this Agreement and undertaking
the obligations set forth herein.

     C. Tekelec and Former Employee desire to set forth their respective rights and obligations
with respect to Former Employee’s separation from Tekelec and to finally and forever settle and
resolve all matters concerning Former Employee’s past services to Tekelec.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and
conditions set forth herein, the receipt and sufficiency of which are hereby acknowledged, Tekelec
and Former Employee hereby agree as follows:

1. DEFINITIONS

     As used herein, the following terms shall have the meanings set forth below:

     1.1. “Includes;” “Including.” Except where followed directly by the word “only,” the
terms “includes” or “including” shall mean “includes, but is not limited to,” and “including, but
not limited to,” respectively.

     1.2. “Severance Covered Period.” The term “Severance Covered Period” shall mean a
period of time commencing upon the effective date of this Agreement and ending on the last day of
the Change in Control Severance Period or General Severance Period, as applicable.

     1.3. Other Capitalized Terms. Capitalized terms (other than those specifically defined
herein) shall have the same meanings ascribed to them in the Severance Plan.

 

 

2. MUTUAL REPRESENTATIONS, WARRANTIES AND COVENANTS

     Each party hereto represents, warrants and covenants (with respect to itself/himself only) to
the other party hereto that, to its/his respective best knowledge and belief as of the date of each
party’s respective signature below:

     2.1. Full Power and Authority. It/he has full power and authority to execute, enter
into and perform its/his obligations under this Agreement; this Agreement, after execution by both
parties hereto, will be a legal, valid and binding obligation of such party enforceable against
it/him in accordance with its terms; it/he will not act or omit to act in any way which would
materially interfere with or prohibit the performance of any of its/his obligations hereunder, and
no approval or consent other than as has been obtained of any other party is necessary in
connection with the execution and performance of this Agreement.

     2.2. Effect of Agreement. The execution, delivery and performance of this Agreement
and the consummation of the transactions hereby contemplated:

     (a) will not interfere or conflict with, result in a breach of, constitute a default under or
violation of any of the terms, provisions, covenants or conditions of any contract, agreement or
understanding, whether written or oral, to which it/he is a party (including, in the case of
Tekelec, its bylaws and articles of incorporation each as amended to date) or to which it/he is
bound;

     (b) will not conflict with or violate any applicable law, rule, regulation, judgment, order or
decree of any government, governmental agency or court having jurisdiction over such party; and

     (c) has not heretofore been assigned, transferred or granted to another party, or purported to
assign, transfer or grant to another party, any rights, obligations, claims, entitlements, matters,
demands or causes of actions relating to the matters covered herein.

3. CONFIDENTIALITY OBLIGATIONS DO NOT TERMINATE

     Former Employee acknowledges that any confidentiality, proprietary rights or nondisclosure
agreement(s) in favor of Tekelec which he may have entered into in connection with his employment
(collectively, the “Nondisclosure Agreement”) with Tekelec is understood to be intended to survive,
and does survive, any termination of such employment, and accordingly nothing in this Agreement
shall be construed as terminating, limiting or otherwise affecting any such Nondisclosure Agreement
or Former Employee’s obligations thereunder. Without limiting the generality of the foregoing, no
time period set forth in this Agreement shall be construed as shortening or limiting the term of
any such Nondisclosure Agreement, which term shall continue as set forth therein.

 

 

4. BENEFITS

     4.1. Health Care Coverage Continuation.

     4.2. Tekelec (at its expense) will continue, for the duration of the Former Employee’s
Severance Period, health care coverage for the Former Employee and his/her family members who are
“qualified beneficiaries” (as such term is defined in the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) under Tekelec’s group health plan(s) generally available
during such period to employees participating in such plans(s) and at levels and contribution rates
and with coverage no greater than those provided to such Former Employee as of the Termination
Date. In the event the Former Employee and his or her family members become eligible for group
health care coverage elsewhere on terms generally no less favorable to the Former Employee during
the Severance Period, the Former Employee shall provide notice to Tekelec, and Tekelec reserves the
right to discontinue paying for such coverage under Tekelec’s group health plans. Upon exhaustion
of the later of the Former Employee’s Severance Period or the COBRA continuation period, or after
Tekelec ceases paying for coverage (if applicable), such Former Employee may elect coverage under a
conversion health plan available under Tekelec’s group health plan(s) from the Company’s health
insurance carrier if and to the extent he/she is entitled to do so as a matter of right under
federal or state law. Any expense associated with the continuation of any health care coverage
beyond the Former Employee’s Severance Period will be the sole responsibility of the Former
Employee.

     4.3. Other Benefit Plans. Except as otherwise expressly provided in this Section 4 or
as required by applicable law, Former Employee shall have no right to continue his participation in
any Tekelec benefit plan following such employee’s termination.

5. STOCK OPTIONS

     Exhibit A hereto sets forth any and all outstanding stock options, warrants and equity
incentives and other rights to purchase capital stock or other securities of Tekelec which have
been previously issued to Former Employee and which are outstanding as of the date hereof. Nothing
in this Agreement shall alter or affect any of such outstanding stock options, warrants, equity
incentives or rights or Former Employee’s rights or responsibilities with respect thereto,
including but not limited to Former Employee’s rights to exercise any of his options, warrants,
equity incentives or rights following the Termination Date.

6. [Not applicable, as regulated in the Termination Agreement]

 

 

7. NON-COMPETITION AND NON-SOLICITATION

     7.1. Subject and in addition to Former Employee’s existing fiduciary duties as a former
officer and employee of Tekelec to the extent such continues under applicable law after Former
Employee’s Termination Date, provided that Tekelec has not breached any of the terms of this
Agreement or any other currently existing written agreements between Tekelec and Former Employee,
Former Employee agrees until the earlier of (i) the completion of the Severance Covered Period or
(ii) such date as Tekelec may terminate this Agreement for default hereunder:

     (a) Not to engage, either directly or indirectly, in any Competing Business Activity (as
defined below) or be associated with a Competing Business Entity (as defined below) as an officer,
director, employee, principal, consultant, lender, creditor, investor, agent or otherwise for any
corporation, partnership, company, agency, person, association or any other entity; provided,
however, that nothing contained herein shall prevent Former Employee from owning not more than 5%
of the common equity and not more than 5% of the voting power of, or lending not more than $25,000
to, any Competing Business Entity or any business engaged in a Competing Business Activity;
provided, further, that for purposes of this agreement, any equity ownership, voting control or
lending activity of Former Employee shall be deemed to include that of (i) any family member or
(ii) person or entity controlled by Former Employee;

     (b) Not to call upon or cause to be called upon, or solicit or assist in the solicitation of,
in connection with any Competing Business Entity or Competing Business Activity, any entity,
agency, person, firm, association, partnership or corporation that is a customer or account of
Tekelec, currently and/or during the Severance Covered Period, for the purpose of selling, renting,
leasing, licensing or supplying any product or service that is the same as, similar to or
competitive with the products or services then being sold or developed by Tekelec;

     (c) Not to enter into an employment or agency relationship with a Competing Business Entity or
involving a Competing Business Activity with any person who, at the time of such entry, is an
officer, director, employee, principal or agent of or with respect to Tekelec; and

 

 

     (d) Not to induce or attempt to induce any person described in Section 7.1(c) to leave
his employment, agency, directorship or office with Tekelec.

     7.2. For purposes of this Section 7, a “Competing Business Activity” shall mean any business
activity of a person or entity (other than Tekelec) involving the development, design, manufacture,
distribution, marketing, licensing, renting, leasing or selling within the Territory (as defined
below) of products and services which are the same as, similar to or competitive with products or
services of Tekelec then in existence or under development. For purposes hereof, the Territory
shall include the United States of America, Canada, Central America, South America, Europe, Japan,
Australia, Singapore and such other countries in which Tekelec then distributes, markets, licenses,
rents, leases or sells its products or services. An entity as a whole shall be deemed to be a
Competing Business Entity if it has one or more business activities involving the development,
design, manufacture, distribution, marketing, licensing, renting, leasing or selling directly or
indirectly within the Territory of products or services which are the same as, similar to or
competitive with products or services of Tekelec then being sold or under development and if and
only if the revenues derived directly or indirectly from engaging in such business activities by
such entity represent either more than 3% of the entity’s revenues or at least $5 million in
aggregate sales, or both, for the then-preceding 12-month period.

     7.3. The parties acknowledge that the provisions and obligations set forth in this Section 7
are an integral part of this Agreement and that in the event Former Employee breaches any of the
provisions or obligations of this Section 7 or any other term, provision or obligation of this
Agreement, then Tekelec, in addition to any other rights or remedy it may have at law, in equity,
by statute or otherwise, shall be excused from its payment obligations to Former Employee under the
Severance Plan and this Agreement.

8. CONFIDENTIAL INFORMATION AND TRADE SECRETS

     8.1. Former Employee hereby recognizes, acknowledges and agrees that Tekelec is the owner of
proprietary rights in certain confidential sales and marketing information, programs, tactics,
systems, methods, processes, compilations of technical and non-technical information, records and
other business, financial, sales, marketing and other information and things of value. To the
extent that any or all of the foregoing constitute valuable trade secrets and/or confidential
and/or privileged information of Tekelec, Former Employee hereby further agrees as follows:

     (a) That, except with prior written authorization from Tekelec’s CEO, for purposes related to
Tekelec’s best interests, he will not directly or indirectly duplicate, remove, transfer, disclose
or utilize, nor knowingly allow any other person to duplicate, remove, transfer, disclose or
utilize, any property, assets, trade secrets or other things of value, including, but not limited
to, records, techniques, procedures, systems, methods, market research, new product plans and
ideas, distribution arrangements, advertising and promotional materials, forms, patterns, lists of
past, present or prospective customers, and data prepared for, stored in, processed by or obtained
from, an automated information system belonging to or in the possession of Tekelec which are not
intended for and have not been the subject of public disclosure. Former Employee agrees to
safeguard all Tekelec trade secrets in his possession or known to him at all times so that they are
not

 

 

exposed to, or taken by, unauthorized persons and to exercise his reasonable efforts to assure
their safekeeping. This subsection shall not apply to information that as of the date hereof is, or
as of the date of such duplication, removal, transfer, disclosure or utilization (or the knowing
allowing thereof) by Former Employee has (i) become generally known to the public or competitors of
Tekelec (other than as a result of a breach of this Agreement); (ii) been lawfully obtained by
Former Employee from any third party who has lawfully obtained such information without breaching
any obligation of confidentiality; or (iii) been published or generally disclosed to the public by
Tekelec. Former Employee shall bear the burden of showing that any of the foregoing exclusions
applies to any information or materials.

     (b) That all improvements, discoveries, systems, techniques, ideas, processes, programs and
other things of value made or conceived in whole or in part by Former Employee with respect to any
aspects of Tekelec’s current or anticipated business while an employee of Tekelec are and remain
the sole and exclusive property of Tekelec, and Former Employee has disclosed all such things of
value to Tekelec and will cooperate with Tekelec to insure that the ownership by Tekelec of such
property is protected. All of such property of Tekelec in Former Employee’s possession or control,
including, but not limited to, all personal notes, documents and reproductions thereof, relating to
the business and the trade secrets or confidential or privileged information of Tekelec has already
been, or shall be immediately, delivered to Tekelec.

     8.2. Former Employee further acknowledges that as the result of his prior service as an
officer and employee of Tekelec, he has had access to, and is in possession of, information and
documents protected by the attorney-client privilege and by the attorney work product doctrine.
Former Employee understands that the privilege to hold such information and documents confidential
is Tekelec’s, not his personally, and that he will not disclose the information or documents to any
person or entity without the express prior written consent of the CEO or Board of Tekelec unless he
is required to do so by law.

     8.3. Former Employee’s obligations set forth in this Section 8 shall be in addition to, and
not instead of, Former Employee’s obligations under any written Nondisclosure Agreement.

9. ENFORCEMENT OF SECTIONS 7 AND 8

     Former Employee hereby acknowledges and agrees that the services rendered by him to Tekelec in
the course of his prior employment were of a special and unique character, and that breach by him
of any provision of the covenants set forth in Sections 7 and 8 of this Agreement will cause
Tekelec irreparable injury and damages. Former Employee expressly agrees that Tekelec shall be
entitled, in addition to all other remedies available to it whether at law or in equity, to
injunctive or other equitable relief to secure their enforcement.

     The parties hereto expressly agree that the covenants contained in Sections 7 and 8 hereof are
reasonable in scope, duration and otherwise; however, if any of the restraints provided in said
covenants are adjudicated to be excessively broad as to geographic area or time or otherwise, said
restraint shall be reduced to whatever extent is reasonable and the restraint shall be fully
enforced in such modified form. Any provisions of said covenants not so reduced shall remain in
full force and effect.

 

 

10. PROHIBITION AGAINST DISPARAGEMENT

     10.1. Former Employee agrees that for a period of two years following the Effective Date any
communication, whether oral or written, occurring on or off the premises of Tekelec, made by him or
on his behalf to any person or entity (including, without limitation, any Tekelec employee,
customer, vendor, supplier, any competitor, any media entity and any person associated with any
media) which in any way relates to Tekelec (or any of its subsidiaries) or to Tekelec’s or any of
its subsidiaries’ directors, officers, management or employees: (a) will be truthful; and (b) will
not, directly or indirectly, criticize, disparage, or in any manner undermine the reputation or
business practices of Tekelec or its directors, officers, management or employees.

     10.2. The only exceptions to Section 10.1 shall be: (a) truthful statements privately made to
(i) the CEO of Tekelec, (ii) any member of Tekelec’s Board, (iii) Tekelec’s auditors, (iv) inside
or outside counsel of Tekelec, (v) Former Employee’s counsel or (vi) Former Employee’s spouse; (b)
truthful statements lawfully compelled and made under oath in connection with a court or government
administrative proceeding; and (c) truthful statements made to specified persons upon and in
compliance with prior written authorization from Tekelec’s CEO or Board to Former Employee
directing him to respond to inquiries from such specified persons.

11. COOPERATION

     Former Employee agrees that for a period of five years commencing with the Effective Date he
will cooperate fully and reasonably with Tekelec in connection with any future or currently pending
matter, proceeding, litigation or threatened litigation: (1) directly or indirectly involving
Tekelec (which, for purposes of this section, shall include Tekelec and each of its current and
future subsidiaries, successors or permitted assigns); or (2) directly or indirectly involving any
director, officer or employee of Tekelec (with regard to matters relating to such person(s) acting
in such capacities with regard to Tekelec business). Such cooperation shall include making himself
available upon reasonable notice at reasonable times and places for consultation and/or to testify
truthfully (at Tekelec’s expense for reasonable, pre-approved out-of-pocket travel costs plus a
daily fee equal to one-twentieth of his monthly severance compensation under Section 6.2 hereof for
each full or partial day during which Former Employee makes himself so available) in any action as
reasonably requested by the CEO or the Board of Directors. Former Employee further agrees to
immediately notify Tekelec’s CEO in writing in the event that he receives any legal process or
other communication purporting to require or request him to produce testimony, documents,
information or things in any manner related to Tekelec, its directors, officers or employees, and
that he will not produce testimony, documents, information or other things with regard to any
pending or threatened lawsuit or proceeding regarding Tekelec without giving Tekelec prior written
notice of the same and reasonable time to protect its interests with respect thereto. Former
Employee further promises that when so directed by the CEO or the Board of Directors, he will make
himself available to attend any such legal proceeding and will truthfully respond to any questions
in any manner concerning or relating to Tekelec and will produce all documents and things in his
possession or under his control which in any manner concern or relate to Tekelec. Former Employee
covenants and agrees that he will immediately notify Tekelec’s CEO in writing in the event that he
breaches any of the provisions of Sections 7, 8, 10 or 11 hereof.

 

 

12. SOLE ENTITLEMENT

     Former Employee acknowledges and agrees that his sole entitlement to compensation, payments of
any kind, monetary and nonmonetary benefits and perquisites with respect to his prior Tekelec
relationship (as an officer and employee) is as set forth in the Termination Agreement, the
Severance Plan, this Agreement, the Company’s bonus plan for officers as in effect from time to
time, stock option and warrant agreements, and COBRA.

13. RELEASE OF CLAIMS

     13.1. General. Former Employee does hereby and forever release and discharge Tekelec
and the predecessor corporation of Tekelec as well as the successors, current, prior or future
shareholders of record, officers, directors, heirs, predecessors, assigns, agents, employees,
attorneys, insurers and representatives of each of them, past, present or future, from any and all
cause or causes of action, actions, judgments, liens, indebtedness, damages, losses, claims,
liabilities and demands of any kind or character whatsoever, whether known or unknown, suspected to
exist or not suspected to exist, anticipated or not anticipated, whether or not heretofore brought
before any state or federal agency, court or other governmental entity which are existing on or
arising prior to the date of this Agreement and which, directly or indirectly, in whole or in part,
relate or are attributable to, connected with, or incidental to the previous employment of Former
Employee by Tekelec, the separation of that employment, and any dealings between the parties
concerning Former Employee’s employment existing prior to the date of execution of this Agreement,
excepting only those obligations expressly recited herein or to be performed hereunder. Nothing
contained in this Section 12 shall affect any rights, claims or causes of action which Former
Employee may have (1) with respect to his outstanding stock options, warrants or other stock
subscription rights to purchase Tekelec Common Stock or other securities under the terms and
conditions thereof; (2) as a shareholder of Tekelec; (3) to indemnification by Tekelec, to the
extent required under the provisions of Tekelec’s Articles of Incorporation, Tekelec’s Bylaws, the
California General Corporation Law, insurance or contracts, with respect to matters relating to
Former Employee’s prior service as a director, an officer, employee and agent of Tekelec; (4) with
respect to his eligibility for severance payments under the Severance Plan or the Termination
Agreement; and (5) to make claims against or seek indemnification or contribution from anyone not
released by the first sentence of this Section 12 with respect to any matter or anyone released by
the first sentence of this Section 12 with respect to any matter not released thereby; or (6) with
respect to Tekelec’s performance of this Agreement. Further, Former Employee waives specifically
any and all rights or claims Former Employee has or may have under the ADEA and/or the OWBPA, and
acknowledges that such waiver is given voluntarily in exchange for certain consideration included
in the severance benefits being paid pursuant to this Agreement.

     13.2. Waiver of Unknown Claims. Former Employee acknowledges that he is aware that he
may hereafter discover claims or facts different from or in addition to those he now knows or
believes to be true with respect to the matters herein released, and he agrees that this release
shall be and remain in effect in all respects a complete general release as to the matters released
and all claims relative thereto which may exist or may heretofore have existed, notwithstanding any
such different

 

 

or additional facts. Former Employee acknowledges that he has been informed of Section 1542 of
the Civil Code of the State of California, and does hereby expressly waive and relinquish all
rights and benefits which he has or may have under said Section (or any similar state statute),
which reads as follows:

“A general release does not extend to claims which the creditor 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 debtor.”

     13.3. Covenant Not to Sue on Matters Released. Former Employee covenants that he will
not make, assert or maintain against any person or entity that Former Employee has released in this
Agreement, any claim, demand, action, cause of action, suit or proceeding arising out of or in
connection with the matters herein released, including but not limited to any claim or right under
the ADEA, the OWBPA, or any other federal or state statute or regulation. Former Employee
represents and warrants that he has not assigned or transferred, purported to assign or transfer,
and will not assign or transfer, any matter or claim herein released. Former Employee represents
and warrants that he knows of no other person or entity which claims an interest in the matters or
claims herein released. Former Employee agrees to, and shall at all times, indemnify and hold
harmless each person and entity that Former Employee has released in this Agreement against any
claim, demand, damage, debt, liability, account, action or cause of action, or cost or expense,
including attorneys’ fees, resulting or arising from any breach of the representations, warranties
and covenants made herein.

14. ASSIGNMENT

     Former Employee represents and warrants that he has not heretofore assigned, transferred or
granted or purported to assign, transfer or grant any claims, entitlement, matters, demands or
causes of action herein released, disclaimed, discharged or terminated, and agrees to indemnify and
hold harmless Tekelec from and against any and all costs, expense, loss or liability incurred by
Tekelec as a consequence of any such assignment, transfer or grant.

15. [not applicable]

16. MISCELLANEOUS

     16.1. Notices. All notices and demands referred to or required herein or pursuant
hereto shall be in writing, shall specifically reference this Agreement and shall be deemed to be
duly sent and given upon actual delivery to and receipt by the relevant party (which notice, in the
case of Tekelec, must be from an officer of Tekelec) or five days after deposit in the U.S. mail by
certified

 

 

or registered mail, return receipt requested, with postage prepaid, addressed as follows (if,
however, a party has given the other party due notice of another address for the sending of
notices, then future notices shall be sent to such new address):

	 	 	 

	     (a) If to Tekelec:

	 	Tekelec

5200 Paramount Parkway

Morrisville, North Carolina 27560

Attn: Chief Executive Officer
	 
	 	 
	     With a copy to:

	 	General Counsel Tekelec

5200 Paramount Parkway

Morrisville, North Carolina 27560

-and-

Katherine Ashton

Bryan Cave LLP

120 Broadway, Suite 300

Santa Monica, California 90401-2386
	 
	 	 
	     (b) If to Former Employee:

     16.2. Legal Advice and Construction of Agreement. Both Tekelec and Former Employee have
received (or have voluntarily and knowingly elected not to receive) independent legal advice with
respect to the advisability of entering into this Agreement and with respect to all matters covered
by this Agreement and neither has been entitled to rely upon or has in fact relied upon the legal
or other advice of the other party or such other party’s counsel (or employees) in entering into
this Agreement.

     16.3. Parties’ Understanding. Tekelec and Former Employee state that each has
carefully read this Agreement, that it has been fully explained to it/him by its/his attorney (or
that it/he has voluntarily and knowingly elected not to receive such explanation), that it/he fully
understands its final and binding effect, that the only promises made to it/him to sign the
Agreement are those stated herein, and that it/he is signing this Agreement voluntarily.

     16.4. Recitals and Section Headings. Each term of this Agreement is contractual and
not merely a recital. All recitals are incorporated by reference into this Agreement. Captions and
section headings are used herein for convenience only, are not part of this Agreement and shall not
be used in interpreting or construing it.

     16.5. Entire Agreement. This Agreement together with the Termination Agreement
constitutes a single integrated contract expressing the entire agreement of the parties with
respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written
agreements and discussions with respect to the subject matter hereof. Notwithstanding the
foregoing, the parties understand and agree that any Nondisclosure Agreement and all other written
agreements between Former Employee and

 

 

Tekelec are separate from this Agreement and, subject to the terms and conditions of each such
agreement, shall survive the execution of this Agreement, and nothing contained in this Agreement
shall be construed as affecting the rights or obligations of either party set forth in such
agreements.

     16.6. Severability. In the event any provision of this Agreement or the application
thereof to any circumstance shall be determined by arbitration pursuant to Section 16.10 of this
Agreement or held by a court of competent jurisdiction to be invalid, illegal or unenforceable, or
to be excessively broad as to time, duration, geographical scope, activity, subject or otherwise,
it shall be construed to be limited or reduced so as to be enforceable to the maximum extent
allowed by applicable law as it shall then be in force, and if such construction shall not be
feasible, then such provision shall be deemed to be deleted herefrom in any action before that
court, and all other provisions of this Agreement shall remain in full force and effect.

     16.7. Amendment and Waiver. This Agreement and each provision hereof may be amended,
modified, supplemented or waived only by a written document specifically identifying this Agreement
and signed by each party hereto. Except as expressly provided in this Agreement, no course of
dealing between the parties hereto and no delay in exercising any right, power or remedy conferred
hereby or now or hereafter existing at law, in equity, by statute or otherwise, shall operate as a
waiver of, or otherwise prejudice, any such rights, power or remedy.

     16.8. Cumulative Remedies. None of the rights, powers or remedies conferred herein
shall be mutually exclusive, and each such right, power or remedy shall be cumulative and in
addition to every other right, power or remedy, whether conferred herein or now or hereafter
available at law, in equity, by statute or otherwise.

     16.9. Specific Performance. Each party hereto may obtain specific performance to
enforce its/his rights hereunder and each party acknowledges that failure to fulfill its/his
obligations to the other party hereto would result in irreparable harm.

     16.10. Arbitration. Except for the right of either party to apply to a court of
competent jurisdiction for a Temporary Restraining Order to preserve the status quo or prevent
irreparable harm, any dispute or controversy between Tekelec and Former Employee under this
Agreement involving its interpretation or the obligations of a party hereto shall be determined by
binding arbitration in accordance with the commercial arbitration rules of the American Arbitration
Association, in the County of Wake, State of North Carolina.

     Arbitration may be conducted by one impartial arbitrator by mutual agreement. In the event
that the parties are unable to agree on a single arbitrator within 30 days of first demand for
arbitration, the arbitration shall proceed before a panel of three arbitrators, one of whom shall
be selected by Tekelec and one of whom shall be selected by Former Employee, and the third of whom
shall be selected by the two arbitrators selected. All arbitrators are to be selected from a panel
provided by the American Arbitration Association. The arbitrators shall have the authority to
permit discovery, to the extent deemed appropriate by the arbitrators, upon request of a party. The
arbitrators shall have no power or authority to add to or, except as otherwise provided by Section
16.6 hereof, to detract from the agreements of the parties, and the prevailing party shall recover
costs and attorneys’ fees incurred in arbitration. The arbitrators shall have the authority to
grant

 

 

injunctive relief in a form substantially similar to that which would otherwise be granted by
a court of law. The arbitrators shall have no authority to award punitive or consequential damages.
The resulting arbitration award may be enforced, or injunctive relief may be sought, in any court
of competent jurisdiction. Any action arising out of or relating to this Agreement may be filed
only in the Superior Court of the County of Wake, North Carolina or the United States District
Court for the Eastern District of North Carolina.

     16.11. North Carolina Law and Location. This Agreement was negotiated, executed and
delivered within the State of North Carolina, and the rights and obligations of the parties hereto
shall be construed and enforced in accordance with and governed by the internal (and not the
conflict of laws) laws of the State of North Carolina applicable to the construction and
enforcement of contracts between parties resident in North Carolina which are entered into and
fully performed in North Carolina. Any action or proceeding arising out of, relating to or
concerning this Agreement that is not subject to the arbitration provisions set forth in Section
16.10 above shall be filed in the state courts of the County of Wake, State of North Carolina or in
a United States District Court for the Eastern District of North Carolina and in no other location.
The parties hereby waive the right to object to such location on the basis of venue.

     16.12. Attorneys’ Fees. In the event a lawsuit is instituted by either party
concerning a dispute under this Agreement, the prevailing party in such lawsuit shall be entitled
to recover from the losing party all reasonable attorneys’ fees, costs of suit and expenses
(including the reasonable fees, costs and expenses of appeals), in addition to whatever damages or
other relief the injured party is otherwise entitled to under law or equity in connection with such
dispute.

     16.13. Force Majeure. Neither Tekelec nor Former Employee shall be deemed in default
if its/his performance of obligations hereunder is delayed or become impossible or impracticable by
reason of any act of God, war, fire, earthquake, strike, civil commotion, epidemic, or any other
cause beyond such party’s reasonable control.

     16.14. Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     16.15. Successors and Assigns. Neither party may assign this Agreement or any of its
rights or obligations hereunder (including, without limitation, rights and duties of performance)
to any third party or entity, and this Agreement may not be involuntarily assigned or assigned by
operation of law, without the prior written consent of the non-assigning party, which consent may
be given or withheld by such non-assigning party in the sole exercise of its discretion, except
that Tekelec may assign this Agreement to a corporation acquiring: (1) 50% or more of Tekelec’s
capital stock in a merger or acquisition; or (2) all or substantially all of the assets of Tekelec
in a single transaction; and except that Former Employee may transfer or assign his rights under
this Agreement voluntarily, involuntarily or by operation of law upon or as a result of his death
to his heirs, estate and/or personal representative(s). Any prohibited assignment shall be null and
void, and any attempted assignment of this Agreement in violation of this section shall constitute
a material breach of this Agreement and cause for its termination by and at the election of the
other party hereto by notice.

 

 

This Agreement shall be binding upon and inure to the benefit of each of the parties hereto
and each person or entity released pursuant to Section 12 hereof and, except as otherwise provided
herein, their respective legal successors and permitted assigns.

     16.16. Payment Procedure. Except as otherwise explicitly provided herein or in the
Severance Plan, all payments by Tekelec to Former Employee or by Former Employee to Tekelec due
hereunder may be by, at the paying party’s election, cash, wire transfer or check. Except as
explicitly provided herein or in the Severance Plan, neither party may reduce any payment or
obligation due hereunder by any amount owed or believed owed to the other party under any other
agreement, whether oral or written, now in effect or hereafter entered into.

     16.17. Survival. The definitions, representations and warranties herein as well as
obligations set forth in Sections 7, 8 and 10-16 shall survive any termination of this Agreement
for any reason whatsoever.

     16.18. No Admission. Neither the entry into this Agreement nor the giving of
consideration hereunder shall constitute an admission of any wrongdoing by Tekelec or Former
Employee.

     16.19. Limitation of Damages. Except as expressly set forth herein, in any action or
proceeding arising out of, relating to or concerning this Agreement, including any claim of breach
of contract, liability shall be limited to compensatory damages proximately caused by the breach
and neither party shall, under any circumstances, be liable to the other party for consequential,
incidental, indirect or special damages, including but not limited to lost profits or income, even
if such party has been apprised of the likelihood of such damages occurring.

     16.20. Pronouns. As used herein, the words “he”, “him”, “his” and “himself” shall be
deemed to refer to the feminine as the identity of the person referred to and the context may
require.

17. [not applicable]

 

 

	 	 	 	 	 	 	 
	TEKELEC	 	 	 	Wolrad Claudy
	 
	 	 	 	 	 	 
	By:

	 	/s/ Stuart Kupinsky
 

	 	 	 	Signature: /s/ W. Claudy 
 

	Print Name: Stuart Kupinsky	 	 	 	 
	Print Title: General Counsel	 	 	 	 
	Date: 28 April , 2011	 	 	 	Date: April 29th , 2011

 

 

EXHIBIT A

OUTSTANDING STOCK PURCHASE RIGHTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Maximum	 	 	 	 
	 	 	 	 	 	 	 	 	Number of	 	 	 	 
	 	 	 	 	 	 	 	 	Shares	 	 	 	 
	Type of Security	 	 	 	 	 	Currently	 	 	 	 
	[e.g., stock option, SAR, RSU	 	 	 	 	 	Purchasable or	 	Purchase Price	 	Termination
	warrant, etc.]	 	Date Issued	 	Issuable	 	Per Share	 	Dateexv10w1

Exhibit 10.1

Director Compensation Program

     Under our director compensation program, we pay our non-employee directors retainers in cash.
Each non-employee director receives a cash retainer for service on the board of directors and for
service on each committee on which the director is a member. These fees are payable quarterly in
arrears and are as follows:

Cash Fees

	 	 	 	 	 	 	 	 	 
	 	 	Member	 	Chairman
	 	 	Annual Fee	 	Annual Fee
	Board of Directors
	 	$	35,000	 	 	$	60,000	 
	Audit Committee
	 	$	7,000	 	 	$	15,000	 
	Compensation Committee
	 	$	7,000	 	 	$	15,000	 
	Nominating and Corporate Governance Committee
	 	$	3,500	 	 	$	7,500	 
	Scientific Committee
	 	$	3,500	 	 	$	7,500	 

The Lead Independent Director of the Board of Directors receives an annual fee of $17,500 for
service as Lead Independent Director in addition to any other fees such Lead Independent Director
is entitled to for service on the Board of Directors.

Equity Fees

     Our director compensation program also includes a stock-for-fees policy, under which directors
have the right to elect to receive common stock in lieu of cash fees. The number of shares to be
issued to participating directors is determined on a quarterly basis by dividing the cash fees to
be issued in common stock by the fair market value of our common stock, which is the closing price
of our common stock, on the first business day of the quarter following the quarter in which the
fees were earned.

     Under our director compensation program, upon their initial election to the board of
directors, new non-employee directors receive an option grant for 30,000 shares and all
non-employee directors receive an annual option grant for 20,000 shares. The annual grants are
made on the date of the annual meeting of stockholders. These options vest quarterly over three
years from the date of grant, subject to continued service as a director, and are granted under our
2008 Stock Incentive Plan. These options are granted with exercise prices equal to the fair market
value of our common stock, which is the closing price of our common stock, on the date of grant and
become immediately exercisable in full if there is a change in control of our company.

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