June 5, 2002
Mr. XXXXX XXXXXXX
Vice President, Global Business Development
SilverStream Software, Inc.
Two Federal Street
Billerica, MA XXXXX-XXXX
Dear XXXXX:
As you know, Novell is currently negotiating with SilverStream to enter into a
merger agreement with SilverStream and Novell, Inc. Subsidiary, a wholly-owned
subsidiary of Novell ("Novell Subsidiary") (the "Merger Agreement"), pursuant to
which Novell Subsidiary will make a cash tender offer to acquire all of the
outstanding stock of SilverStream (the "Offer"). After consummation of the
Offer, Novell Subsidiary will be merged with and into SilverStream, with
SilverStream becoming the surviving corporation and a wholly-owned subsidiary of
Novell (the "Merger").
The purpose of this letter agreement is to (i) confirm the terms of your
continued employment with SilverStream OR Novell after consummation of the
Merger, (ii) confirm your reaffirmation of the terms of SilverStream's Standard
Employee Agreement, as set forth on Exhibit A (the "SilverStream Agreement"),
or, if you have not previously executed the SilverStream Agreement, your
agreement to the terms of the SilverStream Agreement, in either case as further
modified by this letter, and (iii) confirm your agreement to waive your rights
to accelerated vesting and exercisability under the terms of any of your stock
option agreements and any amendment to your outstanding stock option agreements;
provided, however, that the foregoing shall not become effective if the Merger
is not consummated. More specifically, in consideration of the position and
benefits outlined in this letter, to induce Novell to enter into the Merger
Agreement and to perform its obligations thereunder, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, by signing this letter, you agree (i) to the reaffirmation of the
SilverStream Agreement, or, in the event you have not previously executed the
SilverStream Agreement, to execute the SilverStream Agreement, in either case as
further modified by this letter, and (ii) that immediately prior to execution of
the Merger Agreement by Novell, your rights to the accelerated vesting
and exercisability of your stock options, as set forth in your stock option
agreements, any amendment to your stock option agreements or otherwise, will be
of no further force and effect; provided, however, that the foregoing shall not
become effective if the Merger is not consummated. You will have the following
title and be eligible for the following benefits after the Merger:
- After consummation of the Merger, you will be employed by SilverStream
OR Novell in the position of Vice President, Global Business
Development with a rate of pay equal to $7,500.00 semi-monthly (less
applicable withholding), which is $180,000.00 annualized (less
applicable withholding), payable in accordance with SilverStream's
payroll practices. Such rate of pay is exclusive of bonuses,
commissions and other incentive pay you may receive during your
employment. In this position you will report to David Litwack.
- In addition to your base salary, you will also be eligible to
participate in the SilverStream Incentive Plan (the "Incentive Plan")
after consummation of the Merger. Under the Incentive Plan, as an
eligible employee, you may receive an annual incentive award that will
be at $70,000 annualized run rate through October 31, 2002. Your
incentive for fiscal year 2003 will be no less than your current
SilverStream incentive potential.
- After consummation of the Merger, subject to approval by Novell's
Board of Directors, you will be granted a nonqualified stock option to
purchase 10,000 shares of Novell common stock at an exercise price
equal to the fair market value (as determined in accordance with the
applicable Novell stock option plan) of the stock on the date of
grant. Your stock option will vest and become exercisable according to
the following schedule:
Options vest and become exercisable over a 4 year period; with 25%
vesting and becoming exercisable one year from the date of grant and
monthly vesting thereafter.
- Your outstanding SilverStream stock options, whether or not vested or
exercisable as of the date of the consummation of the Merger, will be
assumed by Novell and converted into stock options to acquire Novell
stock (subject to the Merger's exchange ratio, as will be set forth in
the Merger Agreement), with continued vesting and exercisability in
such options on the vesting and exercisability schedule effective
immediately prior to their assumption and not subject to any
accelerated vesting and exercisability as a result of the consummation
of the Merger.
- You will become eligible to participate in the Novell Limited
Severance Plan after consummation of the Merger. Your severance
protection will be equivalent to that provided to a similarly-situated
Novell employee. As a participant, if you are permanently laid off for
a reason other than cause, you
will be eligible to receive the greater of either (i) 6 months (of
monthly pay) or (ii) 2 months (of monthly pay) plus 1 week (of weekly
pay) for every 1 year of service calculated at your then current base
salary.
- Novell intends to continue SilverStream's current employee benefits
programs after the Merger through December 31, 2002, and, thereafter,
you will become eligible to participate in Novell's employee benefits
programs at the same levels and with the same benefits as other
similarly-situated Novell employees. These programs include, but are
not limited to, medical, dental, life insurance, disability benefits,
401(k) plan, paid holidays, and flexible time off.
- Novell will honor the agreement you entered into with SilverStream
relative to your move from the United Kingdom to the United States.
- As a condition to receiving the title and benefits described above in
connection with your continued employment with SilverStream OR Novell
after consummation of the Merger, you must reaffirm your acceptance to
the terms of the SilverStream Agreement in its entirety, or, if you
have not previously executed the SilverStream Agreement, you agree to
execute the SilverStream Agreement, except that in either case, the
SilverStream Agreement shall be amended to provide that (i) the
non-solicitation period in Section 3 thereof shall continue for a
period of two years after your termination or cessation of employment
for any reason, (ii) the term "Company" shall be amended to mean the
Company and all of its subsidiary and affiliated companies as they may
exist from time to time, whether or not you are employed by any such
subsidiary or affiliated companies, (iii) the second sentence of
Section 6(d) shall be deleted, and (iv) the term "Development" shall
be amended to include intellectual property owned by you, or in which
you have an interest, that is or has been incorporated in a Company
product, service, process, software or other property. In addition,
after consummation of the Merger, you will be required to execute
Novell's Code of Business Ethics, which is required for all employees
of Novell and its subsidiaries.
Please signify acceptance of this offer of continued employment with
SilverStream or Novell, as well as your reaffirmation of the SilverStream
Agreement, or, in the event you have not previously executed the SilverStream
Agreement, you execute the SilverStream Agreement, in either case as further
modified by this letter, and your waiver of any provision under your stock
option agreements and any amendment to your stock option agreements that
provides for the accelerated vesting and exercisability of your outstanding
SilverStream stock options as a result of the Merger, by executing this letter
agreement. You must return an executed copy of this letter agreement and an
executed copy of the SilverStream Agreement, if you have not previously executed
such
agreement, to Alan Friedman at Novell's headquarters in Cambridge, MA no later
than FRIDAY, JUNE 7, 2002. Please understand that your employment with
SilverStream or Novell constitutes at-will employment.
If you have any questions or wish to discuss this letter, please contact me.
Sincerely,
/s/ Alan J. Friedman
Alan J. Friedman
Senior Vice President, People
ACKNOWLEDGED AND AGREED
-----------------------
XXXXX XXXXXXX
Dated: June 7, 2002.
EXHIBIT A
SILVERSTREAM STANDARD EMPLOYEE AGREEMENT
SILVERSTREAM STANDARD EMPLOYEE AGREEMENT
This agreement is made between SilverStream Software Inc. (the "Company"), and
__________________________________________ (the "Employee").
In consideration of the employment or the continued employment of the Employee
by the Company, the Company and the Employee agree as follows:
1. PROPRIETARY INFORMATION
a) The Employee agrees that all information, whether or not in writing, of a
private, secret or confidential nature concerning the Company's business,
business relationships or financial affairs (collectively, "Proprietary
Information") is and will continue to be the exclusive property of the
Company. In order to illustrate this definition, Proprietary Information may
include, without limitation, inventions, products, processes, methods,
techniques, formulas, compositions, compounds, projects, developments, plans,
research data, clinical data, financial data, personnel data, computer
programs, customer and supplier lists, and contact at or knowledge of
customers or prospective customers of the Company, as well as materials and
tangible property of customers of the Company or suppliers to the Company.
The Employee will not communicate any Proprietary Information to any person
or entity other than employees of the Company or use Proprietary Information
for any purpose (other than in the performance of his/her duties as an
employee of the Company) without written approval by an officer of the
Company, either during or after his/her employment with the Company, unless
and until such Proprietary Information has become public knowledge without
activity by the Employee.
b) The Employee agrees to return promptly to the Company, upon (i) a request by
the Company or (ii) termination of his/her employment, whichever is earlier,
all Proprietary Information and all tangible property furnished to or
prepared by the Employee in the course of or relating to his/her employment.
After such delivery, the Employee shall not keep any Proprietary Information
or copies of Proprietary Information or any such tangible property.
2. DEVELOPMENTS
a) The Employee will make full and prompt communication to the Company of all
inventions, improvements, discoveries, methods, developments, software, and
works of authorship, whether patentable or not, which are created, made,
conceived or reduced to practice by him/her or under his/her direction or
jointly with others during his/her employment by the Company, whether or not
during normal working hours or on the premises of the Company (collectively,
"Developments").
b) The Employee agrees to transfer and does hereby transfer to the Company (or
any person or entity designated by the Company) all his/her rights, title and
interest in and to all Developments and all related patents, patent
applications, copyrights and copyright applications. However, this paragraph
2(b) shall not apply to Developments which do not relate to the present or
planned business or research and development of the Company and which are
made by the Employee not during normal working hours, not on the Company's
premises and not using the Company's tools, devices, equipment or Proprietary
Information. If this Agreement is interpreted under the laws of any state
that does not permit a requirement in an employee agreement to assign certain
classes of inventions made by an employee, this paragraph 2b will be
interpreted not to apply to any invention which a court rules and/or the
Company agrees falls within such classes.
c) In the event that the Company decides that any Development is copyrightable
or patentable or otherwise registrable, the Employee agrees to assist the
Company (at its expense) in obtaining and maintaining letters, patents, or
other applicable registrations and in vesting the Company with full title. If
the Company is unable to obtain the signature of the Employee on any document
necessary to apply for, prosecute, obtain, or enforce any patent, copyright,
or other right or protection relating to any Development, the Employee
irrevocably appoints the Company and each of its authorized officers and
agents as the Employee's agent to
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do all lawfully permitted acts to further the prosecution, issuance, and
enforcement of patents, copyrights, or other rights or protection with the
same force and effect as if executed and delivered by the Employee.
3. NON-SOLICITATION AND NON-COMPETITION
While the Employee is employed by the Company and for a period of one year
after the termination or cessation of such employment for any reason, the
Employee will not directly or indirectly
a) recruit, solicit, hire or engage as an independent contractor, any employee
of the Company, or induce or attempt to induce any employee of the Company
to terminate his/her employment with the Company;
b) solicit, divert or take away, or attempt to divert or to take away any of
the clients, customers or accounts, or prospective clients, customers or
accounts, of the Company which were contacted, solicited or served by the
Employee while employed by the Company.
In addition, if the Employee is a Vice President-, Director- or Senior
Developer-level employee, then, for a period of one year after the termination
or cessation of such employment for any reason, the Employee will not directly
or indirectly in the geographic territory or territories where the Company does
business, as an individual proprietor, partner, officer, employee, director,
joint venturer, consultant or in any other capacity whatsoever (other than as
the holder of not more than one percent of the combined voting power of the
outstanding stock of a publicly held company), develop, design, produce,
market, sell or render (or assist any other person in developing, designing,
producing, marketing, selling or rendering) products or services competitive
with those developed, designed, produced, marketed, sold or rendered by the
Company while the Employee was employed by the Company;
If any restriction set forth in this Section is found by any court of competent
jurisdiction to be unenforceable because it extends for too long a period of
time or over too great a range of activities or in too broad a geographic area,
it shall be interpreted to extend only over the maximum period of time, range
of activities or geographic area as to which it may be enforceable.
4. OTHER AGREEMENTS
The Employee hereby states that, except as the Employee has disclosed in
writing to the Company, the Employee is not obligated by the terms of any
agreement with any previous employer or other party to not use or communicate
any trade secret or confidential or proprietary information in the course of
his/her employment with the Company or to not compete, directly or indirectly,
with the business of such previous employer or any other party. The Employee
further states that he/she will not disclose to the Company, or use, or induce
the Company to use, any proprietary information or trade secrets of others.
5. NOT EMPLOYMENT CONTRACT
The Employee understands that this Agreement is not a contract of employment
and does not mean that his/her employment will continue for any period of time.
The Employee understands that all employment with the Company is on an "at
will" basis.
6. MISCELLANEOUS
a) Even if one or more of the provisions of this Agreement is found to be
unenforceable or invalid, the remainder will remain valid and enforceable.
b) This Agreement replaces all previous agreements, written or oral, between
the Employee and the Company relating to the subject matter of this
Agreement. This Agreement may not be modified, changed, or terminated in
whole or in part, except by an agreement in writing signed by the Employee
and the Company.
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c) No failure to exercise or delay in exercising any right under this Agreement
by the Company or the Employee will be a waiver of this Agreement.
d) This Agreement will be binding upon the Employee's heirs, executors and
administrators and may be assigned by the Company and its successors and
assigns. The Employee expressly consents to be bound by the provisions of
this Agreement for the benefit of the Company or any subsidiary or affiliate
of the Company to whom the Employee may be transferred without the necessity
that this Agreement be re-executed at the time of such transfer.
e) The restrictions contained in this Agreement are necessary for the protection
of the business and goodwill of the Company and are considered by the
Employee to be reasonable for such purpose. The Employee agrees that any
breach of this Agreement is likely to cause the Company substantial and
irrevocable damage and therefore, in the event of any such breach, the
Employee agrees that the Company, in addition to such other remedies which
may be available, shall be entitled to specific performance and other
injunctive relief.
f) This Agreement is to be interpreted by the laws of the Commonwealth of
Massachusetts. Any legal proceeding which is commenced to resolve any
dispute arising under this Agreement shall be commenced only in a court of
the Commonwealth of Massachusetts (or, if appropriate, a federal court
located within Massachusetts), and the parties consent to the jurisdiction of
such court.
THE EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT AND
UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.
WITNESS SILVERSTREAM SOFTWARE INC.
Date: By:
_________________ ____________________________________
Charles C. Cabot III, Vice President
Human Resources
EMPLOYEE:
_______________________________________
Signature
Date:
_________________________________
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Employment Agreement - Novell Inc. and Wayne Parslow
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