CIENA CORPORATION AMENDED AND RESTATED CHANGE IN CONTROL SEVERANCE AGREEMENT
Exhibit 10.23
This Amended and Restated Change in Control Severance Agreement (the “Agreement”) is
made by and between Ciena Corporation, a Delaware corporation (as hereinafter defined, the
“Company”) and Xxxx X. Xxxxx (the “Executive”), and shall become effective on the
date of its execution by the Executive.
WHEREAS, the Company considers it essential to xxxxxx the continuous employment of key
management personnel and recognizes that the possibility of a Change in Control (as hereinafter
defined) of the Company exists and that such possibility, and the uncertainty that it may cause,
may result in the departure or distraction of key management personnel of the Company, to the
detriment of the Company and its stockholders;
WHEREAS, the Executive is a key management employee of the Company;
WHEREAS, the Company desires to encourage the continued employment of the Executive by the
Company and wants assurance that it will have the continued dedication, loyalty and service of,
and the availability of objective advice and counsel from, the Executive notwithstanding the
possibility, threat or occurrence of a Change in Control; and
WHEREAS, in the event that the Company and the Executive are parties to an existing Amended
and Restated Change in Control Severance Agreement (the “Original Agreement”), this
Agreement will be deemed to amend and restate the Original Agreement so that the Original Agreement
will be terminated and superseded in its entirety by this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and representations contained herein
and the mutual benefits derived herefrom, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Executive hereby agree as
follows:
1. Certain Definitions. In addition to those terms defined elsewhere herein, when used herein, the
following capitalized terms shall have the meanings indicated:
1.1. “Board” means the Board of Directors of the Company, as constituted from time to time.
1.2. “Cause” means the occurrence of any one or more of the following:
(i) the Executive’s willful and continued failure substantially to perform the
duties
of the Executive’s position (other than as a result of Disability or as a result of
termination by the Executive for Good Reason) after written notice to the Executive by the
Governance and Nominations Committee of the Board (or any other special committee or
subcommittee appointed by the Board for such purpose) (the “Governance Committee”)
specifying such failure, provided that such “cause” shall have been found by a majority
vote of the Governance Committee after at least seven days’ written notice to the Executive
specifying the failure on the part of the Executive and after an opportunity for the
Executive to be heard at a meeting of the
Governance Committee;
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(ii) any willful act or omission by the Executive in connection with his or her
responsibilities as an employee of the Company constituting dishonesty, fraud or other
malfeasance, immoral conduct or gross misconduct;
(iii) any willful material violation by the Executive of the Company’s Code of
Business Conduct and Ethics or the Proprietary Information, Inventions and Non-Solicitation
Agreement between the Company and the Executive; or
(iv) the Executive’s conviction of, or plea of nolo contendere to, a felony or a
crime of moral turpitude under the laws of the United States or any state thereof or any
other jurisdiction in which the Company conducts business.
For purposes of this definition, no act or failure to act by the Executive shall be deemed
“willful” unless effected by the Executive not in good faith and without a reasonable belief that
such act or failure to act was in or not opposed to the Company’s best interests.
1.3. “Change in Control” means the occurrence of any one of the following events:
(i) the direct or indirect sale or exchange by the stockholders of the Company of
all
or substantially all of the stock of the Company where the stockholders of the Company
before such sale or exchange do not retain, directly or indirectly, at least a majority of
the beneficial interest in the voting stock of the surviving, continuing, successor, or
purchasing corporation or parent corporation thereof, as the case may be (the
“Acquiring Company”) after such sale or exchange;
(ii) a merger or consolidation where the stockholders of the Company before such
merger or consolidation do not retain, directly or indirectly, at least a majority of the
beneficial interest in the voting stock of the Acquiring Company after such merger or
consolidation;
(iii) the sale, exchange, or transfer of all or substantially all of the assets of the
Company (other than a sale, exchange, or transfer to one or more subsidiary corporations of
the Company);
(iv) a change in the composition of the Board occurring within a two year period, as a
result of which less than a majority of the directors are Incumbent Directors. “Incumbent
Directors” shall mean directors who either (A) are directors of the Company as of the date
hereof or (B) are elected, or nominated for election, to the Board with the affirmative
votes of at least a majority of the directors of the Company at the time of such election
or nomination (but will not include an individual whose election or nomination is in
connection with an actual or threatened proxy contest relating to the election of directors
to the Company);
(v) a liquidation or dissolution of the Company; or
(vi) any other event that the Board, in its sole discretion, shall determine
constitutes a Change in Control.
In each case the determination of whether or not a “Change in Control” is deemed to have
taken place shall be made without regard to whether such events or occurrences constituting the
Change in Control were hostile or against the position of the Board, or were approved or
concurred in by the Board.
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1.4. “Code” means the Internal Revenue Code of 1986, as amended.
1.5. “Company” means Ciena Corporation, its affiliates and subsidiaries, and any successor as
provided in Section 7.5.
1.6. “Disability” means either (i) “total disability” as defined for purposes of the Company’s
long-term disability benefit plan; or (ii) the Executive’s inability, as a result of physical or
mental incapacity, to perform the Executive’s duties for a period of six consecutive months or for
an aggregate of six months in any twelve consecutive month period.
1.7. “Effective Date” means the date on which a Change in Control becomes effective. In the
event of a subsequent Change in Control within one year of the prior Change in Control, “Effective
Date” shall be adjusted to mean the date on which the subsequent Change in Control occurs. Anything
in this Agreement to the contrary notwithstanding, if a Change in Control occurs, and if the
Executive’s employment with the Company had terminated prior to the date on which the Change in
Control occurred, and if it is reasonably demonstrated by the Executive that such termination of
employment either was at the request of a third party who had taken steps reasonably calculated to
effect the Change in Control or otherwise arose in connection with or in anticipation of the
Change in Control, then, for all purposes of this Agreement, the term “Effective Date” shall mean,
with respect to such Executive only, the date immediately prior to the date of such termination of
employment.
| 1.8. | “Good Reason” means; |
(i) removal from, or failure to be reappointed or reelected to the Executive’s
principal position immediately prior to the Effective Date (other than as a result of a
promotion);
(ii) material diminution in the Executive’s position, duties or responsibilities, or
the assignment to the Executive of duties that are inconsistent, in a material respect,
with the scope of duties and responsibilities associated with the Executive’s position
immediately prior to the Effective Date;
(iii) material reduction in base salary or award opportunity under any corporate
incentive plan (or any successor to any such plan), or a material reduction in the level of
participation in long-term incentive, benefit and other plans for senior executives as in
effect immediately preceding the Effective Date, or their equivalents;
(iv) relocation of the Executive’s principal workplace without the Executive’s
consent to a location which is more than 50 miles from the Executive’s principal workplace
on the Effective Date; or
(v) any failure by the Company to comply with and satisfy the requirements of Section
7.5, provided that the successor shall have received at least ten days’ prior written
notice from the Company or the Executive of the requirements of Section 7.5;
provided, however, that (A) the Executive has provided notice to the Company of
any of the foregoing conditions within 90 days of the initial existence of the condition;
(B) the Company has been given at least 30 days to cure such condition; and (C) the
Executive actually terminates employment within two years following the initial existence of
the condition.
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1.9. “Options” means the Executive’s options to purchase common stock of the Company (or
to receive cash or property the amount or value of which is determined by reference to the price of
the Company’s common stock) that are validly issued under any of the Company’s equity incentive or
stock option plans and outstanding as of the Effective Date.
1.10. “Performance-Adjusted Restricted Stock” means the Executive’s restricted stock
(including “restricted stock units” or other rights to receive common stock of the Company) that
is validly issued under any of the Company’s equity incentive plans, outstanding as of the
Effective Date and subject to time-based vesting combined with the possibility of accelerated
vesting if performance-based targets are achieved.
1.11. “Performance-Based Restricted Stock” means the Executive’s restricted stock (including
“restricted stock units” or other rights to receive common stock of the Company) that is validly
issued under any of the Company’s equity incentive plans, outstanding as of the Effective Date and
subject to performance-based vesting.
1.12 “Time-Based Restricted Stock” means the Executive’s restricted stock (including
“restricted stock units” or other rights to receive common stock of the Company) that is validly
issued under any of the Company’s equity incentive plans, outstanding as of the Effective Date and
subject to time-based vesting.
1.13. “Triggering Event” means termination of the Executive’s employment with the Company
without Cause by the Company, or for Good Reason by the Executive, on or within one year after the
Effective Date. For purposes of this definition, an Executive’s employment with the Company will
be deemed to have terminated on the earlier of the date the Executive’s employment with the
Company ceases or the date that written notice of any such termination is received by the
Executive or by the Company, as the case may be, even though the parties may agree in connection
therewith that the Executive’s employment with the Company will continue for a specified period
thereafter. The failure by the Executive or the Company to set forth in any such notice sufficient
facts or circumstances showing Good Reason or Cause, as the case may be, shall not waive any right
of the Executive or the Company or preclude either party from asserting such facts or
circumstances in the enforcement of any such right.
2. Term of Agreement.
This Agreement shall commence on the date of its execution by the Executive and shall
continue in effect through October 31, 2013 (the “Term”), and may be extended upon mutual
written consent of the Executive and the Company (as authorized by the Board or the Compensation
Committee of the Board). Notwithstanding the foregoing:
(a) the Term shall be automatically extended without any further action if the Company is
in active negotiations for, or has entered into, a definitive agreement regarding a Change
in Control (a “Pending Transaction”), until the earliest to occur of (i) the date
on which such negotiations have terminated without entry into a definitive agreement, (ii)
the date on which such definitive agreement has terminated pursuant to its terms without
occurrence of a Change in Control, or (iii) 12 months following the Effective Date of such
Pending Transaction;
(b) in the event that a Change in Control occurs during the Term, this Agreement shall
continue in effect for a period of 12 months following the Effective Date; and
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(c) if the Executive becomes entitled to severance benefits under Section 3 during the
Term, this Agreement will not terminate until all of the obligations of the parties hereto
with respect to this Agreement have been satisfied.
3. Severance Benefits Upon Triggering Event.
Upon a Triggering Event, and provided that the Executive satisfies the conditions precedent
set forth in Sections 4.1 and 4.2 hereof, the Company shall (in addition to any compensation or
benefits to which the Executive may otherwise be entitled under any other agreement, plan or
arrangement with the Company, other than amounts excluded by Section 6.2) pay the Executive the
following amounts and provide the Executive with the following benefits:
3.1 Salary and Bonus. The Company shall pay to the Executive a lump sum amount,
subject to any applicable payroll or other taxes required to be withheld, equal to two and
one-half times the sum of (i) the Executive’s base salary as in effect immediately prior to either
the date of the Executive’s termination of employment with the Company or the Effective Date,
whichever is higher, and (ii) the Executive’s bonus amount(s) under any incentive plan(s) or
program(s) in which the Executive participated immediately prior to either the date of the
Executive’s termination of employment with the Company or the Effective Date, whichever is higher.
The above bonus amount shall be based on an assumed achievement of 100% of the targeted
performance goal(s) for such award. Upon receipt of the above bonus amount, neither the Executive
nor any other person claiming any payment by reason of the Executive’s participation in the
applicable annual bonus plan shall have any right to any payment under such plan(s) or program(s)
with respect to any applicable award thereunder;
3.2 Welfare Benefit and D&O Insurance. The Company shall continue the Executive’s
(and, where applicable, the Executive’s spouse and eligible dependents’) participation in the
group medical, dental and vision plans maintained by the Company, on substantially the same basis
as if the Executive were an employee of the Company, until the earlier of 18 months following the
Executive’s termination of employment with the Company or the last day of the month in which the
Executive commences employment with another employer following the Executive’s termination of
employment with the Company (the “Coverage Period”). In the event that the Company is
unable for any reason to provide for the Executive’s (and, where applicable, the Executive’s
spouse and eligible dependents’) continued participation in one or more of such plans during the
Coverage Period, the Company shall pay or provide at its expense equivalent benefit coverage for
the remainder of the Coverage Period. The Coverage Period shall be taken into account as a period
of continuation coverage for purposes of Part 6 of Title I of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), and for purposes of any other obligation of the
Company to provide any continued coverage to the Executive (and, where applicable, the Executive’s
spouse and eligible dependents) under any group medical, dental or vision plan. The Company shall
continue to maintain director and officer insurance covering the Executive, and shall maintain in
effect any indemnification agreements providing for indemnification of the Executive by the
Company, until the applicable statute of limitations has ended;
3.3 Options and Restricted Stock. Notwithstanding the terms of any plan, program or
arrangement maintained by the Company,
| (a) | upon the Effective Date, (i) the Executive’s Options that are subject to performance-based vesting, to the extent unvested, shall immediately be converted into Options with time-based vesting conditions, and (ii) the Executive’s Performance-Based Restricted Stock, Performance-Adjusted Restricted Stock and any other similar |
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| instruments of equity-based compensation that are subject to performance-based vesting, to the extent unvested, shall immediately be converted into Time-Based Restricted Stock; in each case, with vesting as to the equity awards converted above being deemed to have commenced on the date of grant and vesting as to 1/16th of the grant at the end of each three-month period following the date of grant; | |||
| (b) | upon a Triggering Event, all of the Executive’s Options and Time-Based Restricted Stock (including any performance-based equity awards converted pursuant to Section 3.3(a) above), to the extent unvested, shall become immediately vested and exercisable in full; and | ||
| (c) | upon a Triggering Event, the Executive must elect to exercise any unexercised and exercisable Options within the time period set forth in the applicable plan, program or arrangement under which they were granted, subject to the following requirements: |
| (i) | If the exercise of any Option within the time period described in this Section 3.3 is prevented by the requirements of federal or state securities laws or as provided under the terms of the applicable plan, program or arrangement, then the Option shall remain exercisable until three months after the date the Executive is notified by the Company that the Option is exercisable, but in no event later than ten years after the date of grant of the Option; and | ||
| (ii) | If the exercise of any Option within this time period would subject the Executive to suit under Section 16(b) of the Securities Exchange Act of 1934, the period for exercise shall be extended until the earliest to occur of (a) the tenth day following the date on which the Executive would no longer be subject to such suit, (b) the 190th day after the end of the salary continuation period, or (c) ten years after the date of grant of the Option. |
3.4 Exclusivity. The severance benefits provided by the Company pursuant to this
Section 3 shall be deemed to be inclusive of any notice, payments or benefits to which the
Executive may be entitled under the federal Worker Adjustment and Retraining Notification (WARN)
Act or other applicable plant or facility closing or mass layoff law, the Employment Standards
Act, 2000 or other applicable employment standards legislation, or any other statutory or
regulatory requirement to provide notice of employment termination or entitlement to severance
payments.
3.5 Savings Clause. Each of the cash payments provided pursuant to Article 3 of the
Agreement shall be treated for purposes of Section 409A of the Code as a right to a series of
separate and distinct payments. If the Executive is a “specified employee,” as such term is
defined pursuant to Section 409A of the Code and the regulations and guidance issued thereunder,
and an amount payable under this Agreement constitutes deferred compensation (within the meaning
of Section 409A of the Code) the payment of which is required to be delayed pursuant to the
six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties
thereunder, then such payments shall not be made until the earlier of the Executive’s death or six
months and one day after the Executive’s last day of employment.
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| 4. | Conditions Precedent. |
4.1.
Release and Waiver. The parties agree that, as a condition to the Executive’s
right to receive the severance benefits set forth in Section 3, the Executive shall execute a
general waiver and release (a “Release”), in form and substance reasonably satisfactory to
the Company, within 45 days following the last day of the Executive’s employment with the Company,
of all claims relating to the Executive’s employment by the Company and the termination of such
employment, including but not limited to discrimination claims, employment-related tort claims,
contract claims and claims under this Agreement (other than claims with respect to benefits under
the Company’s tax-qualified retirement plans, continuation of coverage or benefits solely as
required by Part 6 of Title I of ERISA, or any obligation of the Company to provide future
performance under Section 3). No severance benefits will be paid or provided until after the last
day on which the Executive could rescind all or any part of the Release and the Release has become
effective, and the Company will make the lump sum severance payment pursuant to Section 3.1 within
ten days thereafter.
4.2. Non-Competition and Non-Solicitation. The parties agree that, as a condition to
the Executive’s right to receive the severence benefits set forth in Section 3, the Executive
agrees that, for a period of 18 months following the Executive’s last day of employment with the
Company, the Executive will not, whether alone or as a partner, officer, director, consultant,
agent, employee or stockholder of any company or other commercial enterprise, directly or
indirectly, without the prior written consent of the Company:
(a) be employed or engaged by or associated with, or engage or invest in, own,
manage, operate, finance, control or participate in the ownership, management,
operation, financing or control of, any business or other commercial activity whose
products compete, in whole or in part, with the products of the Company; provided,
that the Executive may purchase or otherwise acquire as a passive investment up to
(but not more than) one percent of any class of security of any enterprise (but
without otherwise participating in the activities of such enterprise) if such
securities are listed on any national or regional securities exchange or have been
registered under Section 12(g) of the Securities Exchange Act of 1934; or
(b)
(i) solicit or induce any employee of the Company to leave the
employ of the
Company, (ii) solicit business of the same or similar type being carried on by the
Company from any person known by to the Executive to have purchased products or
services from the Company within the 12 months prior to the Executive’s last day of
employment with the Company, (iii) unlawfully interfere with the Company’s
relationship with any person, including any person who was an employee, contractor,
supplier or customer of the Company, or (iv) disparage the Company or any of its
shareholders, directors, officers, employees or agents.
4.3. Construction. Section 4.2 is intended to provide the greatest restriction
allowable under Cal. Bus. & Prof. Code §16601. In the event any provision hereof is determined by
a court of competent jurisdiction to violate any provision of Cal. Bus. & Prof. Code §16601, that
provision shall be modified to the least extent necessary to render it enforceable and the
remainder of the Agreement shall remain in full force and effect.
4.4.
Remedies. In the event of a breach of Section 4.2 by the Executive, then the
Executive shall immediately reimburse the Company the entire gross amount of the severance
benefits paid to the Executive pursuant to Section 3 up to the date of such breach. The forfeiture
provisions of this Section
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4.4 shall be in addition to, and not in limitation of, any other remedies available to the
Company at law or in equity.
| 5. | Limitation on Payments by the Company. |
5.1. In the event it shall be determined that any payment or distribution by the Company to
or for the benefit of the Executive (whether paid or payable or distributed or distributable
pursuant to the
terms of this Agreement or otherwise) (“Payment” or “Payments”) (i)
constitutes a “parachute payment”
within the meaning of Section 280G of the Code and (ii) but for this Section 5, would be
subject to the
excise tax imposed by Section 4999 of the Code, or any interest or penalties with respect to
such excise
tax (such excise tax, together with any such interest or penalties, are hereinafter
collectively referred to
as the “Excise Tax”), then the Payments shall be either:
| (i) | paid or distributed in full, or | ||
| (ii) | paid or distributed as to such lesser extent which would result in no portion of such Payments being subject to the Excise Tax, |
whichever of the foregoing amounts, taking into account the applicable federal, state and local
income taxes and the Excise Tax, results in the receipt by the Executive (on an after-tax basis)
of the greatest amount of Payments, notwithstanding that all or some portion of such Payments may
be taxable under Section 4999 of the Code.
5.2. Unless the Company and the Executive otherwise agree in writing, all determinations
required to be made under this Section 5 shall be made in writing by the independent public
accountants
appointed for this purpose by the Company (the “Accountants”) immediately prior to
the Triggering
Event, whose determination shall be conclusive and binding upon the Company and the Executive
for all
purposes. For purposes of making the calculation required by this Section 5, the Accountants
may make
reasonable assumptions and approximations concerning applicable taxes and may rely on
reasonable,
good faith interpretations concerning the application of Sections 280G and 4999 of the Code.
The Company and the Executive shall furnish to the Accountants such information and documents as
the
Accountants may reasonably request in order to make a determination under this Section 5. The
Company shall bear all costs the Accountants may reasonably incur in connetion with any
calculations
contemplated by this Section 5.
| 6. | Terms and Conditions of Participation. |
6.1. At-Will Employment Status. The Executive acknowledges and agrees that except as
may otherwise be expressly provided under any other executed agreement between the Executive and
the Company, nothing contained in this Agreement (including, but not limited to using the term
“Cause” to determine benefits under this Agreement) is intended to change the fact that the
employment of the Executive by the Company is “at will” and may be terminated by either the
Executive or the Company at any time.
6.2. Non-Duplication. Notwithstanding any other agreement to the contrary, the
Executive acknowledges and agrees that (i) subject to Section 3.3, the payments under this
Agreement shall be the only severance or similar payments that are payable by the Company under
any plan, program, policy or agreement, and (ii) except for amounts payable under any retirement
plans or stock purchase plans of the Company in which the Executive may participate, the payments
under this Agreement are in full and
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complete satisfaction of all liabilities of the Company with respect to the Executive under all
such other plans, programs and agreements.
| 7. | General. |
7.1.
Prior Agreements; Inconsistent Provisions. If applicable, this Agreement shall
replace and supersede in its entirety the Original Agreement, which agreement is hereby terminated
and of no further force and effect. With that exception, this Agreement shall be in addition to,
and have no effect on, the provisions of any other agreements, including without limitation
indemnification agreements and proprietary information, inventions and non-solicitation agreements
that may exist between the Company and the Executive. Notwithstanding the foregoing, to the extent
that the terms and conditions of this Agreement are inconsistent with those found in any other
agreement or plan to which the Company and the Executive are each a party, the terms and
conditions of this Agreement shall control.
7.2. Amendment. This Agreement may not be amended or terminated after the Effective
Date. Prior to the Effective Date, the Board may, in its sole discretion, modify or amend this
Agreement in any respect, provided such actions do not reduce the amount or defer the receipt of
any payment or benefit provided under this Agreement.
7.3.
Payment Obligations; Overdue Payments. Subject to satisfaction of the conditions
precedent set forth in Sections 4.1 and 4.2, the Company’s obligations to make the payments and
provide the benefits to the Executive under this Agreement shall be absolute and unconditional and
shall not be affected in any way by any circumstances, including, without limitation, any offset,
counterclaim, recoupment, defense or other right which the Company may have against the Executive
or anyone else. Each and every payment made hereunder by the Company shall be final and the
Company will not seek to recover all or any part of such payment from the Executive or from
whosoever may be entitled thereto, except as otherwise provided in Section 4.4. The Executive
shall be entitled to receive interest at the prime rate of interest published from time to time by
The Wall Street Journal on any payments under this Agreement that are 30 days overdue,
provided, however, that no payments shall be deemed to be overdue
until the Executive executes the
Release and any rescission period with respect to such Release has
expired.
7.4. No Mitigation. The Executive shall not be obligated to seek other employment in
mitigation of the amounts payable or arrangements made under any provision of this Agreement, and
the obtaining of any such other employment shall in no event effect any reduction of the Company’s
obligations to make the payments and provide the benefits required under this Agreement, except as
provided in the first sentence of Section 3.2.
7.5. Successors. All rights under this Agreement are personal to the Executive and,
without the prior written consent of the Company, shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable in the event of the Executive’s death or disability by the
Executive’s legal representative. This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns. The Company will require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to assume expressly and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform it if no such
event resulting in a successor had taken place.
7.6. Controlling Law. This Agreement shall in all respects be governed by, and
construed in accordance with, the laws of the State of Delaware (without regard to the principles
of conflicts of laws).
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7.7. Arbitration. DISPUTES REGARDING THE EXECUTIVE’S EMPLOYMENT WITH THE COMPANY,
INCLUDING, WITHOUT LIMITATION, ANY DISPUTE HEREUNDER, WHICH CANNOT BE RESOLVED BY NEGOTIATIONS
BETWEEN THE COMPANY AND THE EXECUTIVE SHALL BE SUBMITTED TO, AND SOLELY DETERMINED BY, FINAL AND
BINDING ARBITRATION CONDUCTED BY JUDICIAL ARBITRATION AND MEDIATION SERVICES (“JAMS”) OR ANY
SUCCESSOR THERETO, IN ACCORDANCE WITH JAMS’ ARBITRATION RULES FOR EMPLOYMENT DISPUTES THEN IN
EFFECT, AND THE PARTIES AGREE TO BE BOUND BY THE FINAL AWARD OF THE ARBITRATOR IN ANY SUCH
PROCEEDING. THE ARBITRATOR SHALL APPLY THE LAWS OF THE STATE OF DELAWARE WITH RESPECT TO THE
INTERPRETATION OR ENFORCEMENT OF ANY MATTER RELATING TO THIS AGREEMENT. ARBITRATION MAY BE HELD IN
BALTIMORE, MARYLAND OR SUCH OTHER PLACE AS THE PARTIES HERETO MAY MUTUALLY AGREE, AND SHALL BE
CONDUCTED SOLELY BY A FORMER JUDGE. JUDGMENT UPON THE AWARD BY THE ARBITRATOR MAY BE ENTERED IN ANY
COURT HAVING JURISDICTION THEREOF. THE PREVAILING PARTY IN THE ARBITRATION, AS DETERMINED BY THE
ARBITRATOR, SHALL BE ENTITLED TO REIMBURSEMENT OF REASONABLE ATTORNEY’S FEES AND DISBURSEMENTS
INCURRED IN SUCH PROCEEDINGS BY THE NON-PREVAILING PARTY. BY SIGNING THIS AGREEMENT, THE PARTIES
ARE GIVING UP ANY RIGHT THEY MIGHT HAVE TO XXX EACH OTHER IN COURT AND HAVE THEIR CASE DECIDED BY A
JUDGE OR JURY, AND AGREE TO RESOLVE ANY AND ALL DISPUTES BY ARBITRATION.
7.8. Severability. Any provision in this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the
extent of such prohibition or unenforceability without invalidating or affecting the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.
7.9. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which together will constitute one and the same
instrument.
IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the date
written below.
| CIENA CORPORATION | EXECUTIVE | ||||
BY:
|
/s/ Xxxxx X. Xxxxxxxxxxx | /s/ Xxxx X. Xxxxx | |||
Name: |
Xxxxx X. Xxxxxxxxxxx | Xxxx X. Xxxxx | |||
Title:
|
Senior VP & General Counsel | ||||
| 20 Dec. 2010 | |||||
| Date | |||||
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