Amendment to Employment Agreement between Sonus Networks, Inc. and Raymond P. Dolan (2013 Salary in Restricted Stock)
Sonus Networks, Inc. and Raymond P. Dolan have agreed to amend Dolan's employment terms for 2013. Instead of receiving his base salary in cash, Dolan will receive an equivalent value in restricted stock, which will vest at the end of the year. If his employment ends early under certain conditions, a portion of the stock will vest; otherwise, it will be forfeited. The amendment also clarifies how certain equity awards are defined and vest. All other terms of Dolan's original employment agreement remain unchanged.
Exhibit 10.1
Sonus Networks, Inc.
4 Technology Park Drive
Westford, MA 01886
February 15, 2013
Mr. Raymond P. Dolan
By electronic delivery
Dear Ray:
Based on your desire to demonstrate your support for the Company and its prospects, the Compensation Committee has considered and will agree to your request to forgo the payment of your salary for 2013, and to accept a grant of shares of restricted stock instead.
As discussed, the October 8, 2010 letter (as previously amended by letters dated February 14, 2011 and August 7, 2012, your Agreement) outlining the terms and conditions of your employment by Sonus Networks, Inc. is hereby amended as follows:
You have elected, in lieu of your Base Salary from January 1, 2013 through December 31, 2013, to accept shares of restricted stock (2013 Salary Shares), which will vest on December 31, 2013. The 2013 Salary Shares will be granted on February 15 and the number of 2013 Salary Shares granted will equal your Base Salary for the year divided by the closing price of the Companys shares, both as of the date of grant. If, before December 31, 2013, your employment is terminated by you with Good Reason or by the Company without Cause, a pro rata portion of the 2013 Salary Shares will vest on the date of such termination. If, before December 31, 2013, your employment is terminated by you without Good Reason or by the Company for Cause, you will forfeit the 2013 Salary Shares.
Additionally, the parties hereto agree to clarify that: (i) all references to the defined term Options in Sections 3(e)(i)(A) and 8(a)(v) of the Agreement shall be replaced with the term options, such that all unvested options granted to you will be entitled to accelerated vesting pursuant to the terms set forth in Sections 3(e)(i)(A) and 8(a)(v), as opposed to applying solely to specific awards described in the Agreement; (ii) all references to the defined term Restricted Shares in Sections 3(e)(i)(C), 8(a)(vi) and 8(b)(ii) of the Agreement shall be replaced with the phrase restricted shares, such that all unvested restricted shares granted to you will have accelerated vesting pursuant to the terms set forth in Sections 3(e)(i)(C), 8(a)(vi) and 8(b)(ii) of the Agreement, as opposed to applying solely to the specific awards described in the Agreement; (iii) all references to the defined term Performance Shares in Sections 3(e)(i)(B) and 8(b) of the Agreement shall be replaced with the term performance shares, such that all unvested performance shares granted to you will have accelerated vesting pursuant to the terms set forth in Sections 3(e)(i)(B) and 8(b) of the Agreement, as opposed to applying solely to the specific awards described in the Agreement; and (iv) all references to the defined term Performance Period in Sections 3(e)(i)(B), 3(e)(i)(C), and 8(b) of the Agreement shall be replaced with the term performance period, such that the performance period relates to various applicable time intervals as determined by the Compensation Committee of the Board of Directors of the Company, as opposed one specific time period described in the Agreement.
Except as modified by the terms of this letter, the terms of the Agreement will remain in full force and effect. Capitalized terms not defined in this letter have the same definitions given to them in the Agreement.
Very truly yours,
/s/ John Schofield |
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John Schofield |
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Chair, Compensation Committee |
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ACCEPTED: |
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/s/ Raymond P. Dolan |
| 2/15/2013 |
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Raymond P. Dolan |
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