Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
On January 29, 2020, Ribbon Communications Inc. (the "Company") and Ribbon
Communications Operating Company, Inc., a Delaware corporation and the Company's
wholly-owned subsidiary, entered into a Severance Agreement with each of Steven
Bruny, the Company's Interim Co-President and Chief Executive Officer and its
Executive Vice President, Global Sales and Services (the "Bruny Severance
Agreement"), and Anthony Scarfo, the Company's Executive Vice President,
Products, Research and Development, Support and Supply Chain (the "Scarfo
Severance Agreement" and together with the Bruny Severance Agreement, the
"Severance Agreements").
Each of the Severance Agreements is subject to a three-year term, with automatic
one-year renewals thereafter unless six months' prior written notice of
non-renewal is given before the term automatically renews. In no event will
either of the Severance Agreements end before the first anniversary of the date
of the closing of a Change of Control (as such term is defined in the respective
Severance Agreements) of the Company.
Under each of the Severance Agreements, if the Company terminates the employment
of either Mr. Bruny or Mr. Scarfo without Cause (as such term is defined in the
respective Severance Agreements of Messrs. Bruny and Scarfo) (other than due to
death or Disability (as such term is defined in the respective Severance
Agreements of Messrs. Bruny and Scarfo)) or if either executive officer
terminates his employment with Good Reason (as such term is defined in the
respective Severance Agreements of Messrs. Bruny and Scarfo) outside of a Change
of Control Protection Period (such term is defined as the period beginning on
the date of the closing of a Change in Control and ending on the first
anniversary of such Change in Control), each of Messrs. Bruny and Scarfo will be
entitled, less applicable withholdings, to receive: (i) continued payment of his
then-current base salary for a period of twelve months following the termination
date; (ii) a one-time lump sum cash amount equal to his pro-rated annual bonus,
payable at the same time annual bonuses are paid, if at all, to other executive
officers of the Company; provided that such termination occurs more than six
months into a calendar year; (iii) a one-time lump sum cash amount equal to the
aggregate sum of the Company's share of medical, dental and vision insurance
premiums for such executive officer and his dependents for the twelve-month
period following the termination date; (iv) accelerated vesting of the executive
officer's unvested time-based equity awards that are scheduled to vest within
twelve months following his termination date; and (v) continued eligibility to
pro-rata vest unvested performance-based equity awards subject to the Company's
actual achievement of applicable performance conditions for the portion of the
performance period through the executive officer's termination date.
If the Company terminates the employment of either Mr. Bruny or Mr. Scarfo
without Cause (other than as a result of his death or Disability) or if either
executive officer terminates his employment with Good Reason during a Change in
Control Period, then such executive officer will be entitled to receive: (i) a
one-time lump sum cash amount equal to twelve months of his then-current base
salary; (ii) a one-time lump sum cash amount equal to his then-target annual
bonus; (iii) a one-time lump sum cash amount equal to his pro-rated annual
bonus, payable at the same time annual bonuses are paid, if at all, to other
executive officers of the Company; provided that such termination occurs more
than six months into a calendar year; (iv) a one-time lump sum cash amount equal
to the aggregate sum of the Company's share of medical, dental and vision
insurance premiums for such executive officer and his dependents for the
twelve-month period following the termination date; (v) full accelerated vesting
of the executive officer's unvested time-based equity awards; and (vi) full
accelerated vesting of the executive officer's unvested performance-based equity
awards at a target level of achievement for each applicable performance
condition.
The foregoing description of the Severance Agreements is qualified in its
entirety by reference to the respective Severance Agreements, which are filed as
Exhibits 10.1 and 10.2 hereto and are incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number Description of Exhibits
10.1 Severance Agreement, dated as of January 29, 2020, among Ribbon
Communications Inc., Ribbon Communications Operating Company, Inc. and
Steven Bruny.
10.2 Severance Agreement, dated as of January 29, 2020, among Ribbon
Communications Inc., Ribbon Communications Operating Company, Inc. and
Anthony Scarfo.
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