exv10w1






Exhibit 10.1




McAFEE, INC.




CHANGE OF CONTROL AND RETENTION AGREEMENT




     This Change of Control and Retention Agreement (the “Agreement”) is made and entered
into by and between [Name of Executive] (the “Employee”) and McAfee, Inc. (the
“Company”), effective as of December 12, 2008 (the “Effective Date”).



RECITALS




     It is possible that the Company may from time to time receive acquisition proposals by other
entities. The Compensation Committee of the Board of Directors of the Company (the
“Committee”) recognizes that consideration of any such proposals can be a distraction to
the Employee and can cause the Employee to consider alternative employment opportunities. The
Committee has determined that it is in the best interests of the Company and its stockholders to
assure that the Company will have the continued dedication and objectivity of the Employee,
notwithstanding the possibility, threat or occurrence of a “Change of Control” (as defined
herein) of the Company.



     The Committee believes that it is in the best interests of the Company and its stockholders to
provide the Employee with an incentive to continue his or her employment and to motivate the
Employee to maximize the value of the Company upon a Change of Control for the benefit of its
stockholders.



     The Committee believes that it is imperative to provide the Employee with certain benefits
upon the Employee’s termination of employment following a Change of Control. These benefits will
provide the Employee with enhanced financial security and incentive and encouragement to remain
with the Company notwithstanding the possibility of a Change of Control.



     This Agreement also consolidates the documentation of severance benefits to which the Employee
may be entitled in the event of the Employee’s termination of employment with the Company under
specified circumstances not in connection with a Change of Control.



     Certain capitalized terms used in the Agreement are defined in Section 6 below.



AGREEMENT




     NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto
agree as follows:




	1.	 	Term of Agreement. The term of this Agreement shall commence on the Effective Date
and continue through February 15, 2010. If a Potential Change in Control Date has occurred
prior to the expiration of this Agreement, this Agreement shall remain in effect until the
earliest of:






	 	(a)	 	eighteen (18) months after the Change of Control Date, if a Change of Control
has been completed, and automatically terminate following the eighteen month
anniversary of the Change of Control Date, so long as all payments due under Section
3(c) and 4 of this Agreement have been made; or
	 
	 	(b)	 	twelve (12) months after the Potential Change of Control Date if no Change of
Control has been completed; provided, however, that in the event of a protracted
regulatory clearance




 









 






	 	 	 	process with respect to a Potential Change of Control, such term shall be extended so
long as the Company is pursuing the Potential Change of Control in good faith.






	2.	 	At-Will Employment. The Company and the Employee acknowledge that the Employee’s
employment is and shall continue to be at-will, as defined under applicable law, except as
otherwise may be provided specifically under the terms of any written formal employment
agreement or offer letter between the Company and the Employee (an “Employment
Agreement”). If the Employee’s employment terminates for any reason, including (without
limitation) any termination prior to a Change of Control, the Employee shall not be entitled
to any payments, benefits, damages, awards or compensation other than as provided by this
Agreement, or as may otherwise be available in accordance with the Company’s established
employee plans other than any Employment Agreement. To the extent the Employee has entered
into an employment agreement or other written employment related document with the Company,
its applicability will not be changed by this Agreement, except with respect to any provisions
that provide for payments or other benefits upon termination of employment.
	 
	3.	 	Severance Benefits.






	 	(a)	 	In addition to the benefits described below, the Employee will be entitled to
receive payment for:






	 	(i)	 	Accrued Salary and Vacation. All salary and accrued
vacation earned through the Termination Date, less applicable federal and state
withholding.






	 	(ii)	 	Expense Reimbursement. Within thirty (30) days of
submission of proper expense reports by the Employee, the Company shall
reimburse the Employee for all expenses incurred by the Employee, consistent
with past practices, in connection with the business of the Company prior to the
Employee’s termination of employment.






	 	(iii)	 	Employee Benefits. Benefits, if any, under any 401(k)
plan, nonqualified deferred compensation plan, employee stock purchase plan and
other Company benefit plans under which the Employee may be entitled to
benefits, payable pursuant to the terms of such plans.






	 	(b)	 	Involuntary Termination other than for Cause or Resignation for Good Reason
OTHER THAN During the Change of Control Period. If (i) the Employee resigns his or
her employment with the Company (or any parent or subsidiary of the Company) for
“Non-Change of Control Period Good Reason” (as defined herein), or (ii) the
Company (or any parent or subsidiary of the Company) terminates the Employee’s
employment for other than “Cause” (as defined herein), such termination is not
within the period ending eighteen (18) months following a Change of Control Date (the
“Change of Control Period”) and, the Employee (X) complies with the Company’s
sub-certification requirements that have been implemented to ensure compliance with the
Sarbanes Oxley Act 2002 in form and substance determined by the Company in its complete
discretion, and (Y) signs and does not revoke a standard release of claims with the
Company in a form substantially similar to that attached hereto as Exhibit A (a
“Release”), then the Employee shall receive the following severance benefits
from the Company:






	 	(i)	 	Severance Payment. The Employee shall receive a lump-sum
severance payment (less applicable tax withholding) equal to twelve (12) months
of the Employee’s Base Salary plus a pro rata fraction of [     ]% of the
Employee’s Base Salary with the




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	 	 	 	fraction determined as the number of days in the year to the date of
termination divided by 365.






	 	(ii)	 	Additional Severance Payment. If the Employee is covered
by the Company health care plan, the Employee shall receive a lump sum cash
payment equal to twelve (12) multiplied by the cost of a single month of COBRA
coverage at the rates in effect on the date of termination. If such coverage
included the Employee’s dependents immediately prior to the Employee’s
termination of employment with the Company, such payment shall also include the
cost of COBRA coverage for the Employee’s dependents.
	 
	 	(iii)	 	[DeWalt Agreement Only: Initial Restricted Stock Unit
Acceleration. Employee’s restricted stock unit granted on February 11, 2008
with respect to 125,000 shares of the Company’s stock shall have its vesting
accelerated as of the date of termination so that it is vested to the extent
that it would have been vested if Employee had remained employed through the
one-year anniversary of the date of termination Non-Performance Based Equity
Awards. All of the Employee’s then-outstanding equity awards covering shares
of the Company’s common stock (“Equity Awards”) that are not subject to
vesting based on performance shall vest one hundred percent (100%) as of the
date of termination.]






	 	(c)	 	Involuntary Termination Other than for Cause or Resignation for Good Reason
During the Change of Control Period. If within the Change of Control Period, (i)
the Employee resigns his or her employment with the Company (or any parent or
subsidiary of the Company) for “Change of Control Period Good Reason” (as
defined herein), or (ii) the Company (or any parent or subsidiary of the Company)
terminates the Employee’s employment for other than “Cause” (as defined
herein), the Employee’s death or the Employee’s Disability (as defined herein), and,
the Employee (X) complies with the Company’s sub-certification requirements that have
been implemented to ensure compliance with the Sarbanes Oxley Act 2002 in form and
substance determined by the Company in its complete discretion, and (Y) signs and does
not revoke a Release, then the Employee shall receive the following severance benefits
from the Company:






	 	(i)	 	Severance Payment. The Employee shall receive a lump-sum
severance payment (less applicable tax withholding) equal to [DeWalt agreement
only: twenty four (24) months] [twelve (12) months] of the Employee’s Base
Salary plus an amount equal to [DeWalt agreement only: 200% of
his Target Bonus] [
[     ]% of the
Employee’s Base Salary] for the fiscal year in which the Change of Control or the Employee’s termination occurs,
whichever is greater.
	 
	 	(ii)	 	Equity Awards. All of the Employee’s then-outstanding
equity awards covering shares of the Company’s common stock (“Equity
Awards”) shall vest one hundred percent (100%) as of the date of
termination.
	 
	 	(iii)	 	Additional Severance Payment. If the Employee is covered
by the Company health care plan, the Employee shall receive a cash payment equal
to twelve (12) multiplied by the cost of a single month of COBRA coverage at the
rates in effect on the date of termination. If such coverage included the
Employee’s dependents immediately prior to the Employee’s termination of
employment with the Company, such payment shall also include the cost of COBRA
coverage for the Employee’s dependents.










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	 	(iv)	 	Special Termination. Notwithstanding the foregoing, if
the Employee’s employment is terminated by the Company without Cause prior to
the Change of Control Date but on or after a Potential Change of Control Date,
then the Company will provide to the Employee the payments and benefits as
provided in Section 3(c), in lieu of Section 3(b); provided, however, that if
the Company reasonably demonstrates that the Employee’s termination of
employment (X) was not at the request of a third party who has taken steps
reasonably calculated to effect a Change of Control, and (Y) would have occurred
absent the Change of Control, then Section 3(b) shall apply in lieu of Section
3(c). Solely for purposes of determining the timing of payments and the
provision of benefits under the circumstances described in this Section
3(c)(iv), the Employee’s date of termination shall be deemed to be the Change of
Control Date.






	 	(d)	 	Timing of Severance Payments. Other than with respect to the payments
made under Section 3(a), the severance payments to which the Employee is entitled will
be subject to the Employee signing and not revoking the Release and provided that such
Release is effective within sixty (60) days following the termination of employment.
Such payments will be made to the Employee in cash and in full, not later than seven
(7) calendar days after the effective date of any Release. In the event the termination
occurs at a time during the calendar year where it would be possible for the Release to
become effective in the calendar year following the calendar year in which the
Employee’s termination occurs, any severance that would be considered Deferred
Compensation Separation Benefits (as defined in Section 3(g)) will be paid on the first
payroll date to occur during the calendar year following the calendar year in which
such termination occurs, or such later time as required by the payment schedule
applicable to each payment or benefit, or Section 3(g).
	 
	 	(e)	 	Voluntary Resignation; Termination for Cause, Death or Disability. If
the Employee’s employment with the Company terminates (i) voluntarily by the Employee
other than for Good Reason or Disability, (ii) for Cause by the Company, or (iii)
pursuant to the Employee’s death or Disability, then the Employee shall not be entitled
to receive severance or other benefits except for those (if any) as may then be
established under the Company’s then existing severance and benefits plans and
practices or pursuant to other written agreements with the Company.
	 
	 	(f)	 	Exclusive Remedy. In the event of a termination of the Employee’s
employment, the provisions of this Section 3 are intended to be and are exclusive and
in lieu of any other rights or remedies to which the Employee or the Company may
otherwise be entitled, whether at law, tort or contract, in equity, or under this
Agreement. The Employee shall be entitled to no benefits, compensation or other
payments or rights upon termination of employment other than those benefits expressly
set forth in this Section 3.
	 
	 	(g)	 	Code Section 409A.






	 	(i)	 	Notwithstanding anything to the contrary in this Agreement, if
the Employee is a “specified employee” within the meaning of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”) and the final
regulations and any guidance promulgated thereunder (“Section 409A”) at
the time of the Employee’s termination (other than due to death) or resignation,
then the severance payable to the Employee, if any, pursuant to this Agreement,
when considered together with any other severance payments or separation
benefits that are considered deferred compensation under Section 409A (together,
the “Deferred Compensation Separation Benefits”)




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	 	 	 	that are payable within the first six (6) months following the Employee’s
termination of employment, will become payable on the first payroll date that
occurs on or after the date six (6) months and one (1) day following the date
of the Employee’s termination of employment. All subsequent Deferred
Compensation Separation Benefits, if any, will be payable in accordance with
the payment schedule applicable to each payment or benefit. Notwithstanding
anything herein to the contrary, if the Employee dies following his or her
termination but prior to the six (6) month anniversary of his or her
termination, then any payments delayed in accordance with this paragraph will
be payable in a lump sum as soon as administratively practicable after the
date of the Employee’s death and all other Deferred Compensation Separation
Benefits will be payable in accordance with the payment schedule applicable
to each payment or benefit. Each payment and benefit payable under this
Agreement is intended to constitute a separate payment for purposes of
Section 1.409A-2(b)(2) of the Treasury Regulations.






	 	(ii)	 	Any amount paid under this Agreement that satisfies the
requirements of the “short-term deferral” rule set forth in Section
1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred
Compensation Separation Benefits for purposes of clause (i) above.
	 
	 	(iii)	 	Any amount paid under this Agreement that qualifies as a payment
made as a result of an involuntary separation from service pursuant to Section
1.409A-1(b)(9)(iii) of the Treasury Regulations that do not exceed the Section
409A Limit shall not constitute Deferred Compensation Separation Benefits for
purposes of clause (i) above. “Section 409A Limit” will mean the lesser
of two (2) times: (i) the Employee’s annualized compensation based upon the
annual rate of pay paid to the Employee during the Employee’s taxable year
preceding the Employee’s taxable year of the Employee’s termination of
employment as determined under, and with such adjustments as are set forth in,
Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service
guidance issued with respect thereto; or (ii) the maximum amount that may be
taken into account under a qualified plan pursuant to Section 401(a)(17) of the
Code for the year in which the Employee’s employment is terminated.
	 
	 	(iv)	 	The foregoing provisions are intended to comply with the
requirements of Section 409A so that none of the severance payments and benefits
to be provided hereunder will be subject to the additional tax imposed under
Section 409A, and any ambiguities herein will be interpreted to so comply. The
Company and the Employee agree to work together in good faith to consider
amendments to this Agreement and to take such reasonable actions which are
necessary, appropriate or desirable to avoid imposition of any additional tax or
income recognition prior to actual payment to the Employee under Section 409A.






	4.	 	Treatment of Performance-Based Equity. Upon the occurrence of a Change of Control,
all of the Employee’s outstanding Equity Awards scheduled to vest based on performance shall
convert to be awards with time-based vesting. As of the date of the Change of Control, the
awards will be vested as to the extent that they would have been vested if they had been
granted originally with a four year time-based vesting schedule with annual vesting. The
vesting of such Equity Awards will continue after the Change of Control, assuming continuous
service, based upon the same time-based vesting schedule. To the extent that such Equity
Awards are not fully vested at the 18-month anniversary of the Change of Control, on such 18
month anniversary they will be 100% vested. The acceleration




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	 	 	provisions of Section 3 will govern any terminations of employment prior to the 18-month
anniversary of the Change of Control.






	5.	 	Golden Parachute Excise Tax Best Results. In the event that the severance and other
benefits provided for in this agreement or otherwise payable to the Employee (X) constitute
“parachute payments” within the meaning of Code Section 280G, and (Y) would be subject to the
excise tax imposed by Section 4999 of the Code, then such benefits shall be either:






	 	(a)	 	delivered in full, or
	 
	 	(b)	 	delivered as to such lesser extent which would result in no portion of such
severance benefits being subject to excise tax under Section 4999 of the Code,
whichever of the foregoing amounts, taking into account the applicable federal, state
and local income and employment taxes and the excise tax imposed by Section 4999,
results in the receipt by the Employee, on an after-tax basis, of the greatest amount
of benefits, notwithstanding that all or some portion of such benefits may be taxable
under Section 4999 of the Code. Unless the Company and the Employee otherwise agree in
writing, the determination of the Employee’s excise tax liability and the amount
required to be paid under this Section 5 shall be made in writing by a
nationally-recognized independent accounting firm selected by the Company (the
“Accountants”). For purposes of making the calculations required by this
Section 5, the Accountants may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. The Company and the
Employee shall furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this Section.
The Company shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this Section 5. Any reduction in payments and/or
benefits required by this Section 5 shall occur in the following order: (1) reduction
of cash payments; (2) reduction of acceleration of vesting of equity awards; and (3)
reduction of other benefits paid to the Employee. In the event that acceleration of
vesting of equity awards is to be reduced, such acceleration of vesting shall be
cancelled in the reverse order of the date of grant for the Employee’s equity awards.






	6.	 	Definition of Terms. The following terms referred to in this Agreement shall have the
following meanings:






	 	(a)	 	Base Salary. Base Salary means:






	 	(i)	 	with respect to payments set forth in Section 3(c) above, the
rate of annual base salary paid to the Employee immediately prior to a Change of
Control, provided that such amount shall in no event be less than the highest
rate of annual base salary paid to the Employee during the one (1) year period
immediately prior to the Change of Control; or
	 
	 	(ii)	 	with respect to payments set forth in Section 3(b) above, the
rate of annual base salary paid to the Employee immediately prior to the
termination of the Employee’s employment, provided that such amount shall in no
event be less than the highest rate of annual base salary paid to the Employee
during the one (1) year period immediately prior to the termination of
employment.






	 	(b)	 	Cause. Cause means:




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	 	(i)	 	The Employee’s commission of an act of material fraud or
dishonesty against the Company;
	 
	 	(ii)	 	Any intentional refusal or willful failure to carry out the
reasonable instructions of the Chief Executive Officer or the Board of
Directors;
	 
	 	(iii)	 	The Employee’s conviction of, guilty plea or “no contest” plea
to a felony or to a misdemeanor involving moral turpitude. Moral turpitude means
so extreme a departure from ordinary standards of honesty, good morals, justice,
or ethics as to be shocking to the moral sense of the community;
	 
	 	(iv)	 	The Employee’s gross misconduct in connection with the
performance of his or her duties;
	 
	 	(v)	 	The Employee’s improper disclosure of confidential information or
violation of material Company policy or the Company code of ethics;
	 
	 	(vi)	 	The Employee’s breach of his or her fiduciary duty to the
Company; or
	 
	 	(vii)	 	The Employee’s failure to cooperate with the Company in any
investigation or formal proceeding or the Employee being found liable in a
Securities and Exchange Commission enforcement action or otherwise being
disqualified from serving in his or her role.






	 	(c)	 	Change of Control. Change of Control means the occurrence of any of the
following, in one or a series of related transactions:






	 	(i)	 	Change in ownership of the Company;
	 
	 	(ii)	 	Change in effective control of the Company; or
	 
	 	(iii)	 	Change in the ownership of a substantial portion of the
Company’s assets (with an asset value change in ownership exceeding more than
50% of the total gross fair market value replacing the 40% default rule);






	 	 	 	all as defined under Code Section 409A and the final Treasury Regulations thereunder.






	 	(d)	 	Change of Control Date. Change of Control Date means the date on which
a Change of Control occurs.
	 
	 	(e)	 	Disability. Disability means:






	 	(i)	 	the Employee has been incapacitated by bodily injury, illness or
disease so as to be prevented thereby from engaging in the performance of the
Employee’s duties;
	 
	 	(ii)	 	such total incapacity shall have continued for a period of six
(6) consecutive months; and
	 
	 	(iii)	 	such incapacity will, in the opinion of a qualified physician,
be permanent and continuous during the remainder of the Employee’s life.










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	 	(f)	 	Change of Control Period Good Reason. During the Change of Control
Period, Good Reason means any of the following that occur without the Employee’s
consent:






	 	(i)	 	a material reduction of the Employee’s Base Salary below the
amount set forth in his or her offer letter agreement or as increased during the
course of his or her employment with the Company;
	 
	 	(ii)	 	a material reduction in the Employee’s Target Bonus below the
amount set forth in the offer letter agreement or as increased during the course
of his or her employment with the Company;
	 
	 	(iii)	 	a material reduction in the Employee’s duties, authority,
reporting relationship or responsibilities, including:






	 	(1)	 	the assignment of responsibilities, duties,
reporting relationship or position that are not at least the substantial
functional equivalent of the Employee’s position occupied immediately
preceding the Change of Control, including the assignment of
responsibilities, duties, reporting relationship or position that are
not in a substantive area that is consistent with the Employee’s
experience and the position occupied prior to the Change of Control; or
	 
	 	(2)	 	a material diminution in the budget and number of
subordinates over which the Employee retains authority;






	 	(iv)	 	requiring the Employee to relocate to a location more than
thirty-five (35) miles from his or her then current office location;
	 
	 	(v)	 	material violation of material term of any employment, severance,
or change of control agreement between the Employee and the Company; or
	 
	 	(vi)	 	failure by successor entity to assume agreement.






	 	 	 	provided, however, that Good Reason shall not exist unless the Employee has provided
the Company with written notice of the purported grounds for such Good Reason within
ninety (90) days of its initial existence and such purported grounds, after good
faith negotiations, are not cured within thirty (30) days of the Company’s receipt of
such written notice.






	 	(g)	 	Non-Change of Control Period Good Reason. Other than during the Change
of Control Period, Good Reason means any of the following that occur without the
Employee’s consent:






	 	(i)	 	a material reduction of the Employee’s Base Salary below the
amount set forth in his or her offer letter agreement or as increased during the
course of his or her employment with the Company, excluding any reduction
generally applicable to senior executives;
	 
	 	(ii)	 	a material reduction in the Employee’s Target Bonus below the
amount set forth in his or her offer letter agreement or as increased during the
course of employment with the Company, excluding any reduction generally
applicable to senior executives;
	 
	 	(iii)	 	a material reduction in the Employee’s title;










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	 	(iv)	 	a material reduction in the Employee’s duties or
responsibilities; or
	 
	 	(v)	 	requiring the Employee to relocate to a location more than
thirty-five (35) miles from his or her then current office location,






	 	 	 	provided, however, that Good Reason shall not exist unless the Employee has provided
the Company with written notice of the purported grounds for such Good Reason within
ninety (90) days of its initial existence and such purported grounds, after good
faith negotiations, are not cured within thirty (30) days of the Company’s receipt of
such written notice.






	 	(h)	 	Potential Change of Control. Potential Change of Control means the
earliest to occur of






	 	(i)	 	the execution of a definitive agreement or letter of intent, in
which the consummation of the transactions described would result in a Change of
Control;
	 
	 	(ii)	 	the approval by the Board of a transaction or series of
transactions, the consummation of which would result in a Change of Control; or
	 
	 	(iii)	 	the public announcement of a tender offer for the Company’s
voting stock, the completion of which would result in a Change of Control;






	 	 	 	provided, that no such event shall be a “Potential Change of Control” unless






	 	(iv)	 	in the case of any agreement or letter of intent described in
clause (i), the transaction described therein is subsequently consummated by the
Company and the other party or parties to such agreement or letter of intent and
thereupon constitutes a “Change of Control”;
	 
	 	(v)	 	in the case of any Board-approved transaction described in clause
(ii), the transaction so approved is subsequently consummated and thereupon
constitutes a “Change of Control”; or
	 
	 	(vi)	 	in the case of any tender offer described in clause (iii), such
tender offer is subsequently completed and such completion thereupon constitutes
a “Change of Control”.






	 	(i)	 	Potential Change of Control Date. Potential Change of Control Date
means the date on which a Potential Change of Control occurs.
	 
	 	(j)	 	Target Bonus. Target Bonus means the bonus amount (percentage
multiplied by salary or dollar figure) established for the Employee by the Compensation
Committee or other party with the authority to establish such bonus amount.






	7.	 	Successors.






	 	(a)	 	The Company’s Successors. Any successor to the Company (whether direct
or indirect and whether by purchase, merger, consolidation, liquidation or otherwise),
shall assume the obligations under this Agreement and agree expressly to perform the
obligations under this Agreement in the same manner and to the same extent as the
Company would be required to perform such obligations in the absence of a succession.
For all purposes under this Agreement, the term “Company” shall include any successor
to the Company’s business




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	 	 	 	and/or assets which executes and delivers the assumption agreement described in this
Section 7(a) or which becomes bound by the terms of this Agreement by operation of
law.






	 	(b)	 	The Employee’s Successors. The terms of this Agreement and all rights
of the Employee hereunder shall inure to the benefit of, and be enforceable by, the
Employee’s personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees.






	8.	 	Notice.






	 	(a)	 	General. All notices and other communications required or permitted
hereunder shall be in writing, shall be effective when given, and shall in any event be
deemed to be given upon receipt or, if earlier, (a) five (5) days after deposit with
the U.S. Postal Service or other applicable postal service, if delivered by registered
mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one (1) business
day after the business day of deposit with Federal Express or similar overnight
courier, freight prepaid, or (d) one (1) business day after the business day of
facsimile transmission, if delivered by facsimile transmission with copy by first class
mail, postage prepaid, and shall be addressed (i) if to the Employee, at his or her
last known residential address, and (ii) if to the Company, at the address of its
principal corporate offices (attention: General Counsel), or in any such case at such
other address as a party may designate by ten (10) days’ advance written notice to the
other party pursuant to the provisions above.
	 
	 	(b)	 	Notice of Termination. Any termination by the Company for Cause or
resignation by the Employee voluntarily or for Good Reason shall be communicated by a
notice of termination to the other party hereto given in accordance with Section 8(a)
of this Agreement. Such notice shall indicate the specific termination provision in
this Agreement relied upon, shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination under the provision so
indicated, and shall specify the termination date (which shall be not more than thirty
(30) days after the giving of such notice). The failure by the Employee to include in
the notice any fact or circumstance which contributes to a showing of Good Reason shall
not waive any right of the Employee hereunder or preclude the Employee from asserting
such fact or circumstance in enforcing his or her rights hereunder.






	9.	 	Miscellaneous Provisions.






	 	(a)	 	Confidentiality. The Employee shall retain in confidence under the
conditions of the Company’s confidentiality agreement with the Employee any proprietary
or other confidential information known to the Employee concerning the Company and its
business so long as such information is not publicly disclosed and disclosure is not
required by an order of any governmental body or court. If required, the Employee shall
return to the Company any memoranda, documents or other materials proprietary to the
Company. The Employee shall be specifically required to continue to comply with the
terms of any Employee Inventions and Proprietary Rights Assignment Agreement including
its provisions regarding the use of the Company’s trade secrets and/or confidential
information to directly or indirectly request, induce or attempt to influence any past,
current or future customer of the Company, or any current or future supplier of goods
or services to the Company, to avoid, curtail or cancel any business it transacts with
the Company and such agreement is hereby incorporated by reference.




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	 	(b)	 	Non-Solicitation. While employed by the Company and for a period of two
(2) years following the termination of such employment after a Change of Control, the
Employee shall not directly or indirectly request, induce or attempt to influence any
current or future employee of, or independent contractor or consultant to, the Company
to terminate his or her employment with or services to the Company.
	 
	 	(c)	 	The Employee acknowledges that a breach of any of the covenants contained in
Sections 9(a) and (b) may result in material irreparable injury to the Company for
which there is no adequate remedy at law, that it may not be possible to measure
damages for such injuries precisely and that, in the event of such a breach, any
payments remaining under the terms of this Agreement shall cease and the Company may be
entitled to obtain a restraining order and/or an injunction restraining the Employee
from engaging in activities prohibited by these Sections 9(a) and (b) or such other
relief as may be required to specifically enforce any of the covenants in these
Sections 9(a) and (b). This Section 9(c) shall survive any termination of this
Agreement.
	 
	 	(d)	 	Conflict in Benefits; Nonduplication of Benefits.






	 	(i)	 	No Limitation of Regular Benefit Plans. Except as
provided in Section 9(d)(ii) below, this Agreement is not intended to and shall
not affect, limit or terminate any plans, programs, or arrangements of the
Company that are regularly made available to a significant number of employees
or officers of the Company, including, without limitation, the Company’s stock
option plans.
	 
	 	(ii)	 	Nonduplication of Benefits. The Employee may not
accumulate cash severance payments, and/or equity vesting under both this
Agreement and another plan or policy of the Company. If the Employee has any
other binding written agreement with the Company which provides that upon a
termination of employment or change of control the Employee shall receive
termination or change of control benefits, then the Employee’s execution of this
Agreement is a complete and unconditional waiver of such rights to such
benefits. If the Employee is entitled to any payments or benefits by operation
of a statute or government regulations, any severance payable pursuant to this
Agreement will be reduced by such payments or benefits.






	 	(e)	 	No Duty to Mitigate. The Employee shall not be required to mitigate
the amount of any payment contemplated by this Agreement, nor shall any such payment be
reduced by any earnings that the Employee may receive from any other source.
	 
	 	(f)	 	Waiver. No provision of this Agreement shall be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing and
signed by the Employee and by an authorized officer of the Company (other than the
Employee). No waiver by either party of any breach of, or of compliance with, any
condition or provision of this Agreement by the other party shall be considered a
waiver of any other condition or provision or of the same condition or provision at
another time.
	 
	 	(g)	 	Headings. All captions and section headings used in this Agreement are
for convenient reference only and do not form a part of this Agreement.
	 
	 	(h)	 	Entire Agreement. This Agreement constitutes the entire agreement of
the parties hereto and supersedes in their entirety all prior representations,
understandings, undertakings or agreements (whether oral or written and whether
expressed or implied) of the parties, and




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	 	 	 	shall specifically supersede any severance payment provisions of any Offer Letter
entered into between the Employee and Company, and this Agreement with respect to the
subject matter hereof.






	 	(i)	 	No Oral Modification. This Agreement may only be amended in writing
signed by the Employee and the [DeWalt agreement only: Chair of the Compensation
Committee of the Company’s board of directors] [CEO of the Company] or his or her
designee.
	 
	 	(j)	 	Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of California.
The Superior Court of Santa Clara County and/or the United States District Court for
the Northern District of California shall have exclusive jurisdiction and venue over
all controversies in connection with this Agreement. Any provision in this Agreement
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective only to the extent of such prohibition or unenforceability
without invalidating or affecting the remaining provisions hereof in such jurisdiction,
and any such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.
	 
	 	(k)	 	Arbitration. Any dispute, controversy or claim between the parties
arising out of or relating to this Agreement (whether based in contract or tort, in law
or equity), or any breach or asserted breach thereof, shall be determined and settled
exclusively by arbitration in San Jose, California, in accordance with the rules for
dispute resolution of JAMS. Judgment on the award may be entered in any court of
competent jurisdiction. Notwithstanding this Section 9(k), the parties may apply to any
court of competent jurisdiction for a temporary restraining order, preliminary
injunction or other interim or provisional relief as may be necessary, without breach
of this Agreement and without abridgment of the powers of the arbitrator. The parties
hereby submit themselves to the Superior Court of California in and for the County of
Santa Clara as the sole and exclusive venue for the purpose of enforcing this
Agreement. This Section 9(k) shall survive any termination of this Agreement.
	 
	 	(l)	 	Severability. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of any
other provision hereof, which shall remain in full force and effect.
	 
	 	(m)	 	Withholding. All payments made pursuant to this Agreement will be
subject to withholding of applicable income and employment taxes.
	 
	 	(n)	 	Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together will constitute one and
the same instrument.





     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year set forth below.



	 	 	 	 	 	 	 	 	 	 	 
	McAFEE, INC.  	 	[NAME OF EXECUTIVE]  
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	Signature: 	 	 	 	 
	 	 

	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 






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EXHIBIT A




McAFEE, INC.




RELEASE OF CLAIMS




     This Release of Claims (“Agreement”) is made by and between McAfee, Inc. (the “Company”), and
                                         (“Employee”).



     WHEREAS, Employee has agreed to enter into a release of claims in favor of the Company upon
certain events specified in the Change of Control and Retention Agreement by and between Company
and Employee (the “Change of Control Agreement”);



     NOW, THEREFORE, in consideration of the mutual promises made herein, the Parties hereby agree
as follows:



     1. Termination. Employee’s employment from the Company terminated on                                         .



     2. Confidential Information. Employee shall retain in confidence under the conditions
of the Company’s confidentiality agreement with Employee any proprietary or other confidential
information known to Employee concerning the Company and its business so long as such information
is not publicly disclosed and disclosure is not required by an order of any governmental body or
court. If required, Employee shall return to the Company any memoranda, documents or other
materials proprietary to the Company. Employee shall be specifically required to continue to comply
with the terms of any Employee Inventions and Proprietary Rights Assignment Agreement and such
agreement is hereby incorporated by reference.



     3. Payment of Salary. Employee acknowledges and represents that the Company has paid
all salary, wages, bonuses, accrued vacation, commissions and any and all other benefits due to
Employee.



     4. Release of Claims. Except as set forth in the last paragraph of this Section 4,
Employee agrees that the foregoing consideration represents settlement in full of all outstanding
obligations owed to Employee by the Company. Employee, on behalf of him- or herself, and Employee’s
respective heirs, family members, executors and assigns, hereby fully and forever releases the
Company and its past, present and future officers, agents, directors, employees, investors,
shareholders, administrators, affiliates, divisions, subsidiaries, parents, predecessor and
successor corporations, and assigns, from, and agrees not to sue or otherwise institute or cause to
be instituted any legal or administrative proceedings concerning any claim, duty, obligation or
cause of action relating to any matters of any kind, whether presently known or unknown, suspected
or unsuspected, that Employee may possess arising from any omissions, acts or facts that have
occurred up until and including the Effective Date of this Agreement including, without limitation,



          (a) any and all claims relating to or arising from Employee’s employment relationship with the
Company and the termination of that relationship;




          (b) any and all claims relating to, or arising from, Employee’s right to purchase, or actual
purchase of shares of stock of the Company, including, without limitation, any claims for fraud,
misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law,
and securities fraud under any state or federal law;




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          (c) any and all claims for wrongful discharge of employment; termination in violation of
public policy; discrimination; breach of contract, both express and implied; breach of a covenant
of good faith and fair dealing, both express and implied; promissory estoppel; negligent or
intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent
or intentional interference with contract or prospective economic advantage; unfair business
practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of
privacy; false imprisonment; and conversion;




          (d) any and all claims for violation of any federal, state or municipal statute, including,
but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the
Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, the Fair
Labor Standards Act, the Employee Retirement Income Security Act of 1974, The Worker Adjustment and
Retraining Notification Act, the California Fair Employment and Housing Act, and Labor Code section
201, et seq. and section 970, et seq. and all amendments to each such Act as well as the
regulations issued thereunder;




          (e) any and all claims for violation of the federal, or any state, constitution;




          (f) any and all claims arising out of any other laws and regulations relating to employment or
employment discrimination; and




          (g) any and all claims for attorneys’ fees and costs.




     Employee agrees that the release set forth in this section shall be and remain in effect in
all respects as a complete general release as to the matters released. This release does not extend
to any severance obligations due Employee under the Change of Control and Retention Agreement.
Nothing in this Agreement waives Employee’s rights to indemnification or any payments under any
fiduciary insurance policy, if any, provided by any act or agreement of the Company, state or
federal law or policy of insurance.



     5. Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges that Employee
is waiving and releasing any rights Employee may have under the Age Discrimination in Employment
Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary. Employee and the
Company agree that this waiver and release does not apply to any rights or claims that may arise
under the ADEA after the Effective Date of this Agreement. Employee acknowledges that the
consideration given for this waiver and release Agreement is in addition to anything of value to
which Employee was already entitled. Employee further acknowledges that Employee has been advised
by this writing that (a) Employee should consult with an attorney prior to executing this
Agreement; (b) Employee has at least twenty-one (21) days within which to consider this Agreement;
(c) Employee has seven (7) days following the execution of this Agreement by the parties to revoke
the Agreement; (d) this Agreement shall not be effective until the revocation period has expired;
and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a
determination in good faith of the validity of this waiver under the ADEA, nor does it impose any
condition precedent, penalties or costs for doing so, unless specifically authorized by federal
law. Any revocation should be in writing and delivered to the Vice-President of Human Resources at
the Company by close of business on the seventh day from the date that Employee signs this
Agreement.



     6. Civil Code Section 1542. Employee represents that Employee is not aware of any
claims against the Company other than the claims that are released by this Agreement. Employee
acknowledges that Employee has been advised by legal counsel and is familiar with the provisions of
California Civil Code 1542, below, which provides as follows:




A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN



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HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN
BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH
THE DEBTOR.



          Employee, being aware of said code section, agrees to expressly waive any rights Employee may
have thereunder, as well as under any statute or common law principles of similar effect.




     7. No Pending or Future Lawsuits. Employee represents that Employee has no lawsuits,
claims, or actions pending in Employee’s name, or on behalf of any other person or entity, against
the Company or any other person or entity referred to herein. Employee also represents that
Employee does not intend to bring any claims on Employee’s own behalf or on behalf of any other
person or entity against the Company or any other person or entity referred to herein.



     8. Application for Employment. Employee understands and agrees that, as a condition of
this Agreement, Employee shall not be entitled to any employment with the Company, its
subsidiaries, or any successor, and Employee hereby waives any right, or alleged right, of
employment or re-employment with the Company.



     9. No Cooperation. Employee agrees that Employee will not counsel or assist any
attorneys or their clients in the presentation or prosecution of any disputes, differences,
grievances, claims, charges, or complaints by any third party against the Company and/or any
officer, director, employee, agent, representative, shareholder or attorney of the Company, unless
under a subpoena or other court order to do so.



     10. No Admission of Liability. No action taken by the Company, either previously or in
connection with this Agreement shall be deemed or construed to be (a) an admission of the truth or
falsity of any claims heretofore made, or (b) an acknowledgment or admission by the Company of any
fault or liability whatsoever to the Employee or to any third party.



     11. Costs. The Parties shall each bear their own costs, expert fees, attorneys’ fees
and other fees incurred in connection with this Agreement.



     12. Authority. Employee represents and warrants that Employee has the capacity to act
on Employee’s own behalf and on behalf of all who might claim through him to bind them to the terms
and conditions of this Agreement.



     13. No Representations. Employee represents that Employee has had the opportunity to
consult with an attorney, and has carefully read and understands the scope and effect of the
provisions of this Agreement. Neither party has relied upon any representations or statements made
by the other party hereto which are not specifically set forth in this Agreement.



     14. Severability. In the event that any provision hereof becomes or is declared by a
court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue
in full force and effect without said provision.



     15. Entire Agreement. This Agreement, along with the Change of Control Agreement, the
Employee Inventions and Proprietary Rights Assignment Agreement, and Employee’s written Equity
Award agreements with the Company, represents the entire agreement and understanding between the
Company and Employee concerning Employee’s separation from the Company.



A-3 









 





     16. No Oral Modification. This Agreement may only be amended in writing signed by
Employee and the [DeWalt agreement only: Chair of the Compensation Committee of the Company’s board
of directors or his or her designee] [CEO of the Company].



     17. Governing Law. This Agreement shall be governed by the internal substantive laws,
but not the choice of law rules, of the State of California and its enforceability shall be subject
to Section 9(k) of the Change of Control Agreement.



     18. Effective Date. This Agreement is effective eight (8) days after it has been
signed by both Parties.



     19. Counterparts. This Agreement may be executed in counterparts, and each counterpart
shall have the same force and effect as an original and shall constitute an effective, binding
agreement on the part of each of the undersigned.



     20. Voluntary Execution of Agreement. This Agreement is executed voluntarily and
without any duress or undue influence on the part or behalf of the Parties hereto, with the full
intent of releasing all claims. The Parties acknowledge that:



          (a) They have read this Agreement;




          (b) They have had the opportunity of being represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of their own choice or that they have voluntarily
declined to seek such counsel;




          (c) They understand the terms and consequences of this Agreement and of the releases it
contains; and




          (d) They are fully aware of the legal and binding effect of this Agreement.




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     IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth
below.



	 	 	 	 	 	 	 
	 

	 	 	 	 	 	McAFEE, INC.
	 
	 	 	 	 	 	 
	Dated:                     , 20  

	 	 
	 	By
	 	 

	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	                                        , an individual
	 
	 	 	 	 	 	 
	Dated:                     , 20  

	 	 	 	 	 	 








A-5