EXECUTIVE SEVERANCE AGREEMENT February 27, 2007
Exhibit 10.22
February 27, 2007
Xxxxx Xxxxxxx |
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0000 XX Xxxxxxx Xxxxx |
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Xxxxxxxx, XX 00000
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Executive | |
RadiSys Corporation, an Oregon corporation |
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0000 XX Xxxxxx Xxxxx Xxxxxxx |
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Xxxxxxxxx, XX 00000
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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/ Xxxxx Xxxxx | /s/ Xxxxx Xxxxxxx | ||||||
Xxxxx Xxxxxxx
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EXHIBIT A
RELEASE OF CLAIMS
1. Parties.
The parties to Release of Claims (hereinafter “Release”) are Xxxxx Xxxxxxx and RadiSys
Corporation, an Oregon corporation, as hereinafter defined.
1.1 Executive and Releasing Parties.
For the purposes of this Release, “Executive” means Xxxxx Xxxxxxx, 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, 0000 XX Xxxxxx Xxxxx Xxxxx, Xxxxxxxxx, Xxxxxx 00000 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: | , | |||||||||||
| STATE OF OREGON | ) | |||||
| ) | ||||||
County of
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) | |||||
Personally appeared the above named Xxxxx Xxxxxxx and acknowledged the foregoing instrument to
be his voluntary act and deed.
Before me: |
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| NOTARY PUBLIC — OREGON | ||||||||
| My commission expires:
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| RADISYS CORPORATION | ||||||||||
By:
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Dated: | |||||||||
Its:
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| On Behalf of RadiSys Corporation and “Company” | ||||||||||
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