Vice President, Human Resources Employment Agreement

January 13, 1999


PERSONAL AND CONFIDENTIAL - -------------------------


Teresa Pippin 101 Fountain Hills Road Garland, Texas 75044


Dear Teresa:


On behalf of Tekelec, I am pleased to offer you employment as Vice President, Human Resources of Tekelec, on the terms and conditions set forth in this letter. As Vice President, Human Resources, you will report directly to Tekelec's Chief Executive Officer, will be principally responsible for Tekelec's human resources matters and will have such other duties and responsibilities as may be delegated to you from time to time by the Chief Executive Officer or the Board of Directors. You may select your start date so long as it is on or before February 15, 1999.


Your compensation and benefits will be as follows:


1. Your starting annual base salary will be $200,000 (i.e., $7,692.31 per bi-weekly period).


2. You will be eligible to participate in Tekelec's 1999 Officer Bonus Plan, with your participation to be calculated as if you were a full time employee as of January 1, 1999 and determined in accordance with a percentage of your 1999 base salary. Under the terms of the 1999 Officer Bonus Plan, you will be eligible to receive up to 50% of your annual base salary as a cash bonus if Tekelec achieves certain financial milestones in 1999. For 1999, you will be guaranteed a minimum bonus of $50,000 which will be paid during the first quarter of 2000.


3. You will be entitled to take four weeks personal time annually.


4. You will receive applicable benefits, including health, dental, vision, long-term disability and life insurance, as are generally provided to Tekelec's executive officers.


5. You will be offered the opportunity to participate in Tekelec's Employee Stock Purchase Plan and 401(k) Plan upon your satisfaction of the eligibility requirements for such plans.


2


Teresa Pippin January 13, 1999 Page 2


6. You will be covered ...