Document:

exv10w1

 

Exhibit 10.1

SECOND AMENDMENT

TO

AMENDED AND RESTATED GEORGE SAMENUK EMPLOYMENT AGREEMENT

     THIS AMENDMENT, dated May 21, 2005, is made and entered into by and between McAfee,
Inc., a Delaware corporation (formerly Networks Associates, Inc.) (the “Company”) and George
Samenuk, an individual (the “Executive”).

W I T N E S S E T H:

     WHEREAS, on or about October 9, 2001, Company and Executive entered an Amended and Restated
Employment Agreement (the “Original Agreement”); and

     WHEREAS, the Original Agreement has been amended by that certain George Samenuk Employment
Agreement Amendment, entered into January 20, 2004, between the Company and Executive (said
Original Agreement, as so amended, being herein referred to as the “Agreement”); and

     WHEREAS, the parties desire to amend the Agreement in certain respects.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

     1. Definitions. Unless otherwise provided herein, capitalized terms used herein shall
have the same meaning as provided in the Agreement. Effective April 19, 2005, Executive’s Target
Bonus percentage is 147%, payable annually.

     2. Modifications. The parties hereby amend the Agreement as follows:

(a) Section 7, Compensation, is amended as follows:

(i) Section 7(g)(i), Termination For Any Reason, is amended to
read in its entirety as follows:

Termination For Any Reason. Notwithstanding Executive’s
entitlement to severance benefits under certain circumstances
discussed below in this Section 7(g), upon the termination of
Executive’s employment for any reason, the Company shall pay
Executive all Base Salary, Target Bonus, and accrued but unpaid
vacation earned through the date of termination, reimburse
Executive for all necessary and reasonable expenses in accordance
with Section 4 and for any other expenses pursuant to this
Agreement for which reimbursement is still due, and continue
Executive’s

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benefits under the Company’s then-existing benefit plans and
policies for so long as provided under the terms of such plans and
policies and as required by applicable law. For purposes of
calculating the Target Bonus earned through the date of
termination, the Company shall pay Executive the portion of the
Target Bonus derived by multiplying one hundred per cent (or such
higher percentage as the Company may have established for the
Target Bonus for the year in which the termination occurs) of
Executive’s Base Salary by the quotient of (A) the number of days
in the year in which Executive is terminated through the date of
termination, divided by (B) 365, less any amounts previously paid
by the Company in respect of the Target Bonus for the year in
which Executive is terminated.

(ii) Section 7(g)(ii), Upon Termination Other Than for Cause or
Resignation for Good Reason Prior to Change of Control, is amended to
read in its entirety as follows:

Upon Termination Other Than for Cause or Resignation for Good
Reason. If Executive resigns his Employment with the Company
for Good Reason or Executive’s employment is terminated by the
Company other than for (x) Cause, (y) Executive’s death, or (z)
Executive’s Total Disability, then, subject to Executive executing
and not revoking, the Mutual Release of Claims attached hereto as
Exhibit A with the Company and not materially breaching
the provisions of Section 17 hereof, (1) Executive’s Stock Options
and Executive’s Restricted Stock, as well as any other stock
options or restricted stock that he is granted by the Company,
shall vest immediately and if applicable, the Company’s right to
repurchase all of the same such shares immediately shall lapse,
(2) Executive shall receive payments equal to the sum of twice
Executive’s Base Salary plus twice his Target Bonus for the year
in which employment terminated, less applicable withholding, and
otherwise in accordance with Section 7(i) hereof, (3) the Company
shall pay Executive cash equal to the pre-tax cost of providing
group health, dental and vision plans continuation coverage
premiums for Executive and his covered dependents under Title X of
the Consolidated Budget Reconciliation Act of 1985, as amended
(“COBRA”) for eighteen (18) months from the date of Executive’s
termination of employment, and (4) the Company shall pay Executive
cash equal to the pre-tax cost of providing all other Company
welfare plan and fringe

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benefits and continued life insurance and long-term disability
coverage (including the Prior Life and LTD coverage), in which
Executive participated prior to his termination for eighteen (18)
months from the date of Executive’s termination of employment.
For purposes of the Target Bonus calculation under this Section
7(g)(ii) regarding Target Bonus measuring periods ending
subsequent to the termination of Executive’s employment, the
Target Bonus shall be deemed to be the same as for the Target
Bonus measuring period during which Executive’s employment
terminated, and the goals shall be deemed to be fully met.

(iii) Section 7(g)(iii), Upon Termination Other Than for Cause or
Resignation for Good Reason On or At Any Time Following a Change of
Control, is amended to read in its entirety as follows:

Deleted.

(iv) Section 7(g)(iv), Upon Termination Due to Death, is amended
to read in its entirety as follows:

Deleted.

(v) A new Section 7(i) is hereby added to the Agreement, which new Section
shall read in its entirety as follows:

Payments. To the extent benefits are due to Executive
pursuant to Section 7(g)(i) of the Agreement, at the Company’s
sole election and if allowed by law, in lieu of providing benefits
under the Company’s then-existing benefit plans and policies for
so long as required, the Company may pay Executive the dollar
amount equal to the pre-tax cost to the Company of providing all
such promised benefits in a cash lump sum within thirty (30) days
of Executive’s termination of employment with the Company. To the
extent benefits are due to Executive pursuant to Sections
7(g)(ii)(3) and (4) of the Agreement, in lieu of paying the group
health, dental and vision plan continuation coverage premiums for
Executive and his covered dependents and providing Executive with
all other welfare plan and fringe benefits, continued life
insurance and long-term disability coverage, the Company shall pay
Executive the dollar amount equal to the pre-tax cost to the
Company of providing all such promised benefits. For purposes of
the calculation of the cost of continuation

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coverage premiums for the health, dental and vision plans and
providing Executive with all other welfare plan and fringe
benefits, continued life insurance and long-term disability
coverage, it shall be assumed that no similar coverage or benefits
are obtained by Executive or his dependents prior to the
expiration of the eighteen (18) month period. All cash payments
due under Section 7(g)(ii) shall be paid as follows: (1) 1/24 of
the total amount due under Sections 7(g)(ii)(2) plus 1/18 of the
total amount due under Sections 7(g)(ii)(3) and (4) shall be
payable on the last calendar day of the month in which Executive’s
employment with the Company terminated, and (2) a like amount
shall be payable on the last calendar day of each month thereafter
until such amount is paid in full; provided, however, that if any
payments due under Section 7(g)(ii) have not been paid by March 1
of the calendar year following the calendar year in which
Executive’s employment with the Company terminated, then the
remaining amounts due under Section 7(g)(ii) shall be immediately
due and payable on that date. All cash payments due under Section
7(h) shall be paid to Executive within thirty (30) days of demand
therefore but in no event prior to Executive’s termination of
employment with the Company.

(vi) A new Section 7(j) is hereby added to the Agreement, which new
Section shall read in its entirety as follows:

409A Applicability. It is not the parties’ intention for
any payment under this Agreement to create or constitute a
“nonqualified deferred compensation plan” within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended (a
“Deferred Compensation Plan”). In the event that this Agreement
or any compensation payable under this Agreement (the “Payment”)
is determined to be a Deferred Compensation Plan causing Executive
to owe any additional federal income tax, the Company agrees to
pay to Executive an additional sum (the “Gross Up”) in an amount
such that the net amount retained by Executive after receiving
both the Payment and the Gross Up and after paying: (i) any
additional federal income tax on the Payment and the Gross Up, and
(ii) any federal, state, and local income taxes on the Gross Up,
is equal to the amount of the Payment. Notwithstanding the above,
in the event payment of the Gross Up is or becomes the sole reason
for this Agreement to be a Deferred Compensation Plan, the

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preceding sentence shall be void and no Gross Up shall be paid.

(b) The last paragraph of Section 3 of Exhibit A, which paragraph is unnumbered and
immediately follows subsection (g), is amended to read in its entirety as follows:

“Nothing in this Release is intended to relieve the Company of its
obligations under Labor Code Section 2802. Employee and the Company agree
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 and shall not relieve the Company from any
obligations incurred under sections 7(g), 7(h), 7(i), 11 or 21 of the
Employment Agreement, and/or under the Indemnification Agreement between
the Employee and the Company dated January 2, 2001, as amended.”

     3. Confirmation. Except as amended hereby, the Agreement is ratified and confirmed in
accordance with its terms.

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first
above written.

	 	 	 	 	 	 	 
	McAFEE, INC.	 	 	 	EXECUTIVE
	 
	 	 	 	 	 	 
	By:
	 	/s/ Kent H. Roberts	 	 	 	 
	

	 	 	 	 	 	 
	Name:
	 	Kent H. Roberts 	 	 	 	/s/ George Samenuk 
	

	 	 
	 	 	 	 
	Title:

	 	EVP and General Counsel 	 	 	 	Name: George Samenuk
	

	 	 	 	 	 	 

5exv10w2

 

Exhibit 10.2

FIRST AMENDMENT

TO

VERNON GENE HODGES EMPLOYMENT AGREEMENT

     THIS AMENDMENT, dated May 21, 2005, is made and entered into by and between McAfee, Inc.,
a Delaware corporation (formerly Networks Associates, Inc.) (the “Company”) and Vernon Gene
Hodges, an individual (the “Executive”).

W I T N E S S E T H:

     WHEREAS, on or about December 3, 2001, Company and Executive entered an Employment Agreement
(the “Agreement”); and

     WHEREAS, the parties desire to amend the Agreement in certain respects.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

     1. Definitions. Unless otherwise provided herein, capitalized terms used herein shall
have the same meaning as provided in the Agreement.

     2. Modifications. The parties hereby amend the Original Agreement as follows:

(a) Section 6, Compensation, is amended as follows:

(i) Section 6(b) is amended to read in its
entirety as follows:

Bonuses. Executive shall be eligible to earn a target
bonus (the “Target Bonus”) according to the terms and
conditions of the executive incentive bonus program (as the same
may be amended by the Board of Directors of the Company from time
to time) with respect to a Target Bonus measuring period. The
phrase “Target Bonus measuring period” shall mean three months if
the executive incentive bonus program provides for quarterly
bonuses for Executive and twelve months if the executive incentive
bonus program provides for annual bonuses or a combination of
annual and more frequent bonuses.

(ii) Section 6(c)(i) is amended to read in its entirety as follows:

Termination For Any Reason. Notwithstanding Executive’s
entitlement to severance benefits under certain circumstances
discussed below in this Section 6(c), upon

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termination of Executive’s employment for any reason, the Company
shall pay Executive all Base Salary and accrued but unpaid
vacation earned through the date of termination, reimburse
Executive for all necessary and reasonable expenses in accordance
with Section 4 and continue Executive’s benefits under the
Company’s then-existing benefit plans and policies for so long as
required by applicable law. In addition, the Company shall also
pay Executive a portion of the Target Bonus derived by multiplying
Executive’s Base Salary by the then-current Target Bonus
percentage (105% for 2005, payable annually) and multiplying the
result by the quotient of (A) the number of days in the Target
Bonus measuring period through the date of termination, divided by
(B) the number of days in the Target Bonus measuring period. At
the Company’s sole election and if allowed by law, in lieu of
providing benefits under the Company’s then-existing benefit plans
and policies for so long as required, the Company may pay
Executive within thirty (30) days of Executive’s termination of
employment with the Company a cash lump sum equal to the pre-tax
cost to the Company of providing such benefits.

(iii) Section 6(c)(ii) is amended to read in its entirety as follows:

Termination Due to Total Disability, Death, Resignation for
Good Reason and Involuntary Termination Other Than for Cause.
If (A) Executive dies, (B) Executive resigns his/her employment
with the Company due to a Total Disability, (C) Executive resigns
his/her employment with the Company for Good Reason, or (D)
Executive’s employment with the Company is terminated by the
Company other than for Cause, then, subject to Executive
executing, and not revoking, the Release of Claims attached hereto
as Exhibit A with the Company and complying with Section 13 of
this Agreement, (1) Executive shall receive payments equal to the
sum of (A) Executive’s Base Salary for twelve months and (B) in
addition to any portion of a Target Bonus paid pursuant to Section
6(c)(i), either (i) if Executive’s Target Bonus measuring period
is quarterly, the Target Bonus for four quarters, or (ii) if
Executive’s Target Bonus measuring period is annual, or a
combination of quarterly and annual, Executive’s Target Bonus for
twelve months; less applicable withholding, and otherwise in
accordance with Section 6(c)(v), (2) the Company shall pay
Executive cash equal to the pre-tax cost to the

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Company of providing the portion of the group health, dental and
vision plan continuation coverage premiums for Executive and
his/her covered dependents under Title X of the Consolidated
Budget Reconciliation Act of 1985, as amended (“COBRA”), that
would have been paid by the Company were he/she still employed by
the Company for twelve (12) months from the date of Executive’s
termination of employment, and (3) all of Executive’s remaining
unvested stock options and shares of restricted stock shall vest
immediately, and, if applicable, the Company’s right to repurchase
all of the same such shares immediately shall lapse.

(iv) Section 6(c)(iv)(2)(A) is amended to read in its entirety as follows:

the acquisition by any individual, entity, or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act),
other than by the Company or any Affiliate thereof immediately
prior to such acquisition, of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 50%
or more of the combined voting power or economic interests of the
then outstanding voting securities of the Company entitled to vote
generally in the election of directors;

(v) A new Section 6(c)(v) is hereby added to the Agreement, which new
Section shall read in its entirety as follows:

Payments; Target Bonus. All payments due under Section
6(c)(ii) shall be paid as follows: (1) one-twelfth of the total
amount due under Section 6(c)(ii) shall be payable on the last
calendar day of the month in which Executive’s employment with the
Company terminated, and (2) a like amount shall be payable on the
last calendar day of each month thereafter until such amount is
paid in full; provided, however, that if any payments due under
Section 6(c)(ii) have not been paid by March 1 of the calendar
year following the calendar year in which Executive’s employment
with the Company terminated, then the remaining amounts due under
Section 6(c)(ii) shall be immediately due and payable on that
date. For purposes of the Target Bonus calculation under this
Section 6(c) regarding Target Bonus measuring periods ending
subsequent to the termination of Executive’s employment,

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the Target Bonus shall be deemed to be the same as for the Target
Bonus measuring period during which Executive’s employment
terminated, and the goals shall be deemed to be fully met.

(vi) Section 6(d) is amended to read in its entirety as follows:

Acceleration of Vesting of Option Upon a Change in
Control. If Executive is employed by the Company on the date
of a Change in Control, or if Executive is terminated without
Cause prior to a Change in Control during the pendency of a merger
agreement or tender offer which would result in a Change in
Control, then, in addition to any other compensation and benefits
provided under this Agreement, all of Executive’s remaining
unvested stock options and shares of restricted stock shall vest
immediately, and, if applicable, the Company’s right to repurchase
the same such shares immediately shall lapse.

(vii) A new Section 6(f) is hereby added to the Agreement, which new
Section shall read in its entirety as follows:

409A Applicability. It is not the parties’ intention for
any payment under this Agreement to create or constitute a
“nonqualified deferred compensation plan” within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended (a
“Deferred Compensation Plan”) In the event that this Agreement or
any compensation payable under this Agreement (the “Payment”) is
determined to be a Deferred Compensation Plan causing Executive to
owe any additional federal income tax, the Company agrees to pay
to Executive an additional sum (the “Gross Up”) in an amount such
that the net amount retained by Executive after receiving both the
Payment and the Gross Up and after paying: (i) any additional
federal income tax on the Payment and the Gross Up, and (ii) any
federal, state, and local income taxes on the Gross Up, is equal
to the amount of the Payment. Notwithstanding the above, in the
event payment of the Gross Up is or becomes the sole reason for
this Agreement to be a Deferred Compensation Plan, the preceding
sentence shall be void and no Gross Up shall be paid.

     (b) Recognizing the modifications to the business of the Company since the Agreement
was entered, the phrase “network management software” is

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deleted from the first and fourth sentences of Section 13(a) and the second sentence
is amended such that Section 13(a) reads in its entirety as follows:

Covenant Not to Compete. Upon Executive’s resignation for any reason
after a Change in Control has occurred or termination by the Company for any reason
after a Change in Control has occurred, Executive agrees that until the end of the
twelve (12) month period following the date of the termination of his/her
employment, Executive will not directly engage in (whether as an employee,
consultant, proprietor, shareholder, owner, partner, director or otherwise), or
have any ownership interest in, or participate in the financing, operation,
management, or control of, any Subject Entity that is engaged in the design,
development, marketing, distribution, or sale of anti-virus network security
software or hardware anywhere in the world. For purposes of this Section
13, the term “Subject Entity” means any entity engaged in the design,
development, marketing, distribution, or sale of anti-virus or network security
software or hardware, including but not limited to the following entities: Cisco
Systems (security business unit only), Computer Associates, Microsoft Corporation,
Dr. Ahn’s, Fortinet, Fsecure, Internet Security Systems, Intrusion Inc., Juniper
Networks, Inc., Panda, RSA, Secure Computing, Sophos, Sourcefire, Symantec, 3Com
(including, but not limited to, its TippingPoint division), and Trend Micro or any
successor of any of the foregoing. Executive understands and agrees that the
Company may delete from, add to or otherwise amend the entities included in the
preceding sentence as Subject Entities from time to time, and the company will
provide written notice to Executive of any such deletion, addition or amendment.
Notwithstanding the foregoing provisions to the contrary, nothing in this
Section 13(a) shall prevent Executive from being employed by, or providing
services to, any division or business unit of any Subject Entity if that division
or business unit is not involved in the design, development, marketing,
distribution, or sale of anti-virus network security software or hardware, as long
as Executive has no responsibilities or duties for any division or business unit of
such Subject Entity that is involved in the design, development, marketing,
distribution or sale of anti-virus network security software or hardware.
Ownership of less than 3% of the outstanding voting stock of a Subject Entity shall
not constitute a violation of this Section 13(a).

     (c) A new Section 8 is hereby added to Exhibit A of the Agreement, which new Section
shall read in its entirety as follows:

This Release does not extend to and shall not relieve the Company from any
obligations incurred under Sections 6(e) or 6(f) of the Employment Agreement
between the Executive and the Company dated December 3, 2001, as amended on
May 21, 2005.

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     3. Confirmation. Except as amended hereby, the Agreement is ratified and confirmed in
accordance with its terms.

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first
above written.

	 	 	 	 	 	 	 
	McAFEE, INC.	 	 	 	EXECUTIVE
	 
	 	 	 	 	 	 
	By:
	 	/s/ Kent H. Roberts	 	 	 	 
	

	 	 	 	 	 	 
	Name:
	 	Kent H. Roberts	 	 	 	/s/ Gene Hodges
	

	 	 
	 	 	 	 
	Title:

	 	EVP & General Counsel	 	 	 	Name: Vernon Gene Hodges
	

	 	 	 	 	 	 

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