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Exhibit 10.28
SEVERANCE BENEFITS AGREEMENT
This Severance Benefits Agreement (the "Agreement") is made and entered
into by and between James Hamilton (the "Executive") and 3Com Corporation
("3Com" or the "Company"), effective as of the date of the Executive's signature
below (the "Effective Date"). 3Com and the Executive shall each individually be
referred to herein as a "Party" and together as the "Parties."
WHEREAS, the Executive is currently employed by the Company as its
President, TippingPoint Division and is eligible to receive severance benefits
pursuant to the Company's Above Grade Severance Plan (as amended, the "Plan");
and
WHEREAS, the Executive's Severance Benefit Agreement dated February 3, 2006
is scheduled to terminate by its express terms on February 2, 2007; and
WHEREAS, the Company seeks to renew and reconfirm the Executive's
eligibility for severance benefits to ensure the continued dedication and
objectivity of the Executive and to provide the Executive with additional
financial security.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree to the terms and
conditions set forth in this Agreement.
1. Interpretation/Administration. The terms of this Agreement shall be
governed by and administered pursuant to the provisions of the Plan. To the
extent that there is any conflict between this Agreement and the terms of the
Plan, the Plan provisions shall supersede and control; provided however that,
notwithstanding the current Plan provisions or any amendments to the Plan after
the Effective Date, the terms of eligibility and the severance benefits for
which the Executive is eligible shall not be less than those set forth in this
Agreement.
2. Term of Agreement. This Agreement shall be effective as of the Effective
Date and shall terminate upon the Executive's last date of employment with the
Company (the "Termination Date").
3. Eligibility to Receive Severance Benefits. The Company shall provide the
Executive with the severance benefits described in Section 4 below upon the
Company's involuntary termination of the Executive's employment with 3Com
without Cause or the Executive's Voluntary Termination for Good Reason, as such
terms are defined under the Plan, provided that the Executive signs and does not
revoke an agreement (the "Release Agreement") including, without limitation: (i)
a release of claims against the Company, its affiliates and representatives,
(ii) a non-solicitation provision prohibiting the Executive's solicitation or
hire of any Company employee, business opportunity, client, customer, account,
distributor or vendor for a period of one (1) year following the Termination
Date, (iii) a non-competition provision prohibiting the Executive from directly
or indirectly engaging in, participating in or having a material ownership
interest in a business in competition with the Company for a period of one (1)
year following the Termination Date, and (iv) a non-disparagement provision. The
form and language of the Release Agreement shall be determined by the Company in
its sole discretion.
4. Severance Benefits. If the conditions provided in Section 3 above are
fully satisfied, the Executive will be entitled to receive the following
severance benefits:
1
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A. Severance Amounts.
1. One (1) year of the Executive's annualized base salary as of
the Termination Date, subject to all applicable taxes and withholdings, paid
through the Company's regular payroll practices for twelve (12) months, provided
that the Executive has executed and has not revoked the Release Agreement and
the Executive continues to comply with all terms and conditions of the Release
Agreement during the twelve (12) month period; and
2. A pro-rated amount of the Executive's earned incentive bonus
for the bonus period in which the Termination Date occurs, to be calculated by
multiplying the earned bonus amount (based on the Company's actual attainment of
applicable performance metrics) by a fraction, the numerator of which shall be
the number of calendar days between the beginning of the applicable bonus period
and the Termination Date and the denominator of which shall be the number of
calendar days within the applicable bonus period, payable through the Company's
regular bonus payment practices and subject to all applicable taxes and
withholdings.
B. Health, Dental & Vision Benefits. Continuation of coverage under
the Company's health, dental, and vision insurance plans ("Health Care Plans")
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA")
at the same level of coverage as was provided to and elected by the Executive as
of the Termination Date. If the Executive timely and properly elects to continue
coverage under the Company's Health Care Plans in accordance with COBRA, the
Company shall continue to pay the Company-paid portion of the premiums for the
Executive's elected coverage under the Health Care Plans until the earlier of:
(i) one (1) year from the Termination Date, or (ii) the date upon which the
Executive becomes eligible for coverage under another employer's group health,
dental, or vision insurance plan(s). The Executive will remain obligated to pay
the unsubsidized portion of the applicable premium(s) in order to continue
Company-sponsored coverage. The Company-paid portion of any premium(s) is
subject to change at the Company's discretion. To be eligible for continuation
of coverage under the Health Care Plans, the Executive must be actively enrolled
in the applicable Health Care Plan(s) as of the Termination Date. For purposes
of Title X of COBRA, the date of the "qualifying event" for the Executive and
his covered dependents shall be the Termination Date, and each month of
Company-sponsored coverage continuation provided hereunder shall offset a month
of coverage continuation otherwise due under COBRA. Upon the expiration of the
one (1) year period, the Executive will be required to pay 102% of the premium
to continue Company-sponsored coverage. Any continuation of Company-sponsored
coverage shall be governed by COBRA and the terms and conditions of the
applicable plan documents.
C. Life Insurance. Conversion of the Executive's basic term life
insurance in effect immediately prior to the Termination Date to continue
coverage until the earlier of (i) one (1) year from the Termination Date, or
(ii) the date upon which the Executive becomes eligible for coverage under
another employer's life insurance plan.
D. Equity Compensation.
1. Six (6) months of accelerated vesting of outstanding stock
options, restricted stock, and restricted stock units issued






