Amendment No. 1 to Offer Letter between Arbinet-thexchange, Inc. and Robert Barbiere
This amendment updates the original offer letter between Arbinet-thexchange, Inc. and Robert Barbiere, specifically revising the terms related to termination of employment. It clarifies the severance and benefits Robert Barbiere will receive if his employment is terminated without cause or after a change of control, including salary, COBRA reimbursement, and retirement contributions, subject to certain limits. The amendment also defines key terms like "Change of Control" and "Good Reason." All other terms of the original offer letter remain unchanged.
EXHIBIT 10.1
March 16, 2007
Robert Barbiere
12 Stratford Drive
Randolph, New Jersey 07869
| RE: | Amendment No. 1 to Offer Letter (the “Amendment”) |
Dear Bob:
In connection with the Offer Letter dated May 9, 2001 (the “Letter”) by and between Arbinet-thexchange, Inc., a Delaware corporation (the “Company”), and you, you and the Company desire to amend certain provisions of the Letter as follows:
| 1. | Section 7 of the Letter is amended by deleting such section in its entirety and substituting therefore the following: |
| “7. | Termination of Employment. |
| a. | In the event that your employment hereunder is terminated by the Company (A) without cause or (B) within six (6) months following a Change of Control (as defined below) by you for Good Reason (as defined below), the Company will pay you, subject to your compliance with Sections 8 and 9 below (i) any unpaid base salary through the date of termination and any accrued vacation; (ii) severance pay equal to one (1) year’s base salary at the rate in effect on the date of termination and (iii) an amount reimbursing you for the applicable premium payment for any COBRA coverage payable under a Company health or welfare plan for you and your dependents during the one (1) year period following the date of termination (the “One Year Period”); and (iv) an amount equal to any employer contribution that would have been made by the Company pursuant to any retirement plan of the Company on your behalf and you remained employed by the Company during the One Year Period assuming you contributed the maximum amount to such plan. Notwithstanding the foregoing, the amounts paid to you pursuant to subsections (iii) and (iv) of this Section 7(a) shall not exceed $25,000. |
| b. | In the event your employment hereunder is terminated for any other reason, the Company will pay you any unpaid base salary and compensation for accrued vacation through the date of termination. |
| c. | In addition, in all termination events, except as specifically provided in Section 5 hereof, the Company will pay you any other amounts or benefits owning to you under the then applicable employee benefit plans and programs of the Company in accordance with such plans and programs. |
| d. | For purposes of this letter, “Change of Control” shall mean a change in ownership or control of the Company effected through any of the following transactions: |
| (I) | a merger, consolidation or other reorganization approved by the Company’s stockholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Company’s outstanding voting securities immediately prior to such transaction, or |
| (II) | a stockholder-approved sale, transfer or other disposition of all or substantially all of the Company’s assets, or |
| (III) | the closing of any transaction or series of related transactions pursuant to which any person or any group of persons comprising a “group” within the meaning of Rule 13d-5(b)(1) of the Securities Exchange Act of 1934 Act (other than the Company or a person that, prior to such transaction or series of related transactions, directly or indirectly controls, is controlled by or is under common control with, the Company) becomes directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934) of securities possessing (or convertible into or exercisable for securities possessing) more than fifty percent (50%) of the total combined voting power of the Company’s securities (as measured in terms of the power to vote with respect to the election of Board members) outstanding immediately after the consummation of such transaction or series of related transactions, whether such transaction involves a direct issuance from the Company or the acquisition of outstanding securities held by one or more of the Company’s existing stockholders. |
| e. | For purposes of this letter, “Good Reason” means, without your written consent: |
| (I) | a material adverse change in your title or the duties assigned to you; |
| (II) | any material failure by the Company to comply with the provisions of this letter; or |
| (III) | any requirement by the Company that your primary office location be other than in the states of New York, New Jersey or Connecticut.” |
2. Except as specifically amended by this Amendment, the Letter shall remain in full force and effect in accordance with its terms.
3. This Amendment may be executed in counterparts, each of which will be deemed an original, but all of which taken together will constitute one and the same instrument.
[SIGNATURE PAGE FOLLOWS]
If the foregoing accurately reflects the understanding of the parties hereto, please so indicate by executing both originals of this Amendment in the space provided below and returning one executed original to us.
| ARBINET-THEXCHANGE, INC. | ||
| By: | /s/ J. Curt Hockemeier
| |
| Name: | J. Curt Hockemeier | |
| Title: | President and Chief Executive Officer | |
AGREED AND ACCEPTED:
| /s/ Robert Barbiere
|
| Robert Barbiere |
