Document:

exv10w2

Exhibit 10.2

EMULEX CORPORATION

Amended Description of Compensation Arrangements for Certain Executive Officers

(September 1, 2008)

          The following is a description of the compensation arrangements for each of the Company’s
named executive officers listed in the Company’s Proxy Statement for the 2007 Annual Meeting of
Stockholders of Emulex Corporation, excepting for Mr. Michael E. Smith, who ceased to be an
employee of the Company on July 18, 2008. The compensation for these executive officers consists of
base salary and perquisites, long-term incentive compensation and annual cash bonus compensation.
Effective September 1, 2008, the following are the base salaries (on an annual basis) of the
Company’s named executive officers (as well as of Jeffrey W. Benck, the Company’s current Executive
V.P. and Chief Operating Officer, who does not currently meet the definition of a named executive
officer due to the fact that his employment with the Company did not commence until May 2008):

	 	 	 	 	 
	Name and Principal Position	 	New Base Salary
	Paul F. Folino,

Executive Chairman

	 	$	603,827	 
	 
	 	 	 	 
	James M. McCluney

Chief Executive Officer and President

	 	$	585,750	 
	 
	 	 	 	 
	Jeffrey W. Benck

Executive V.P. and Chief Operating Officer

	 	$	412,110	 
	 
	 	 	 	 
	Michael J. Rockenbach

Executive V.P. and Chief Financial Officer

	 	$	366,978	 
	 
	 	 	 	 
	Marshall D. Lee

Executive V.P. Engineering

	 	$	328,520	 

         Perquisites for each of the named executive officers include an out of pocket health care
expense reimbursement of up to $5,000 per year. Effective on September 1, 2008, the Company
eliminated reimbursement of tax preparation expenses of up to $2,500 per year for each of the named
executive officers. In addition, reimbursement for the following other compensation amounts were
eliminated: (a) for Mr. Folino, an automobile allowance of $10,800 per year; (b) for Mr. McCluney,
an automobile allowance of $ 10,800 per year; (c) for Mr. Benck, an automobile allowance of $9,600
per year; (d) for Mr. Rockenbach, an automobile allowance of $9,600 per year; and (e) for Mr. Lee,
an automobile allowance of $9,600 per year.

          The Company does not have employment agreements with any of its executive officers but
has executed key employee retention agreements with each of its named executive officers and
certain other officers and key employees of the Company. The Company’s agreement with

 

 

Mr. Folino entitles him to receive the following payments and benefits in the event of termination
of his employment by the Company without cause or by Mr. Folino because of a demotion (as defined
in such agreement) within 2 years after a change in control of the Company: (i) a severance payment
equal to the present value of 2 times the sum of Mr. Folino’s annual salary plus the highest annual
average of any 2 of his last 3 annual bonuses; (ii) continuation for 2 years following termination
of employment of his health and life insurance, and disability income (reduced to the extent
similar benefits are received by him from another employer); and (iii) acceleration of his right to
exercise his stock options and vesting of any restricted stock awards based on the length of his
continued employment following the grant of the option by one year upon the change in control of
the Company and full acceleration of such option exercise right and vesting of restricted stock
awards in the event of termination of his employment without cause or because of a demotion (as
defined in such agreement) within two years after the change in control.

          Mr. McCluney’s key employee retention agreement is substantially the same as Mr. Folino’s
agreement described above. Additionally, in the event that Mr. McCluney is terminated without cause
(regardless of whether a change in control has occurred), he will be entitled to severance in the
amount of one year’s base salary at the rate then in effect, any deferred incentive bonuses,
reimbursement of COBRA premiums, if any, for one year, and continued vesting of his stock options
for one year.

          The above descriptions are qualified in their entirety by the forms of Key Employee
Retention Agreements for Mr. Folino and Mr. McCluney which are incorporated herein by reference to
Exhibits 10.2 and 10.1, respectively, to the Company’s Current Report on Form 8-K filed on
September 6, 2006.

          The Company also has entered into similar agreements with each of the other named
executive officers (as well as Mr. Benck) which provide for benefits similar to those described
above, except that the severance payment is equal to the present value of one times the sum of the
employee’s annual salary plus the highest annual average of any 2 of the employee’s last 3 annual
bonuses; and continuation for one year following termination of employment of the employee’s health
and life insurance, disability income and tax assistance (reduced to the extent similar benefits
are received by the employee from another employer). The form of key employee retention agreement
for each of the other named executive officers is filed as Exhibit 10.7 to the Company’s Quarterly
Report on Form 10-Q for the quarterly period ended December 31, 2006.

          Additionally, the Company’s executive officers are entitled to participate in health and
welfare and retirement plans, perquisite, fringe benefit and other arrangements generally available
to other salaried employees. In addition, each officer is entitled to participate in the Emulex
Corporation Retirement Savings Plan, and receives group term life insurance premiums and health
care reimbursement paid with respect to the named executive.

          The Company’s executive officers are eligible for annual performance-based cash bonuses
under the Company’s Executive Bonus Plan. A description of the Executive Bonus Plan is contained
in Item 5.02 of the Company’s Current Report on Form 8-K of which this Exhibit 10.2

 

 

is a part. Such description is qualified in its entirety by the Executive Bonus Plan which is
filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K of which this Exhibit 10.2 is a
part.

          Long term incentives are provided to the Company’s executives in accordance with the
Company’s 2005 Equity Incentive Plan which is attached as Appendix A to the Company’s Definitive
Proxy Statement for the Annual Meeting of Stockholders held on November 15, 2007, as such plan may
be amended from time to time. In addition, the Company’s executive officers have previously
received options pursuant to option or other equity plans maintained by the Company prior to the
adoption of the 2005 Equity Incentive Plan in 2005.EX-10(A) EMPLOYMENT OFFER LETTER

Exhibit 10(a)

March 10, 2008

Terry R. Pillow

150 West 11th Street

New York, NY 10011

Dear Terry:

     We are pleased to offer you the position of Chief Executive Officer (CEO) of Oxford’s Tommy
Bahama Group, Inc. We would like for you to start on a mutually convenient date on which we can
agree.

     Your responsibilities will include overseeing the operation and management of Oxford’s Tommy
Bahama Group division and such other duties and responsibilities as may be assigned from time to
time. You will report directly to me.

     Your beginning base salary will be $750,000.00 annually, which is earned and paid on a
bi-weekly basis, subject to deductions for taxes and other withholdings as required by
law or the policies of the company. Your overall performance and achievement of your predetermined
goals are generally reviewed at the end of each fiscal year. The review process assists in
determining a salary increase and bonus payout. Salary increases, if warranted, are expected to be
effective at the beginning of April each year. Your first salary review will come in April 2009
after completion of our 2008 fiscal year.

     You will be eligible to participate in Oxford’s bonus program for fiscal 2008. Under the bonus
program, you will be eligible to earn and receive a cash bonus in an amount equal to 60% of your
annual base salary at target and 100% of your base salary at maximum. For fiscal 2008 only, your
bonus will be equal to the greater of 75% of your annualized base salary for fiscal 2008 (pro-rated
for the portion of fiscal 2008 during which you are employed by the company) or the amount earned
under the terms of the bonus program. Your bonus is expected to be paid in April 2009 and is
subject to the terms and conditions of the bonus program. For future years, the terms and
conditions of the bonus program may be modified. Information about this program will be sent to
you shortly after you join the company.

     You are eligible to participate in the Oxford Deferred Compensation Plan (“DCP”). The DCP
offers you the opportunity to defer up to 50% of your base salary plus 100% of your performance
based annual bonus. You will have 30 days from your date of employment to enroll in the plan. The
plan summary and enrollment information will be sent to you by the plan administrator shortly after
you join the company. Please note that the guaranteed portion of your fiscal 2008 bonus will not
be eligible for deferral due to the federal regulations governing this plan. However, to the
extent your bonus
actually earned for fiscal 2008 exceeds the 75% of your base salary which is guaranteed for
fiscal 2008, you may elect to defer part or all of such excess pursuant to the DCP.

 

 

     Upon employment, you will be nominated for a restricted stock grant of 50,000 shares of
Oxford’s common stock, all of which will be scheduled to vest on the third anniversary of the grant
date. This grant is subject to review and approval by Oxford’s Board of Directors or
Nominating, Compensation and Governance Committee and will be subject to the terms and conditions
of Oxford’s Long-Term Stock Incentive Plan and your continued employment with the company for the
duration of the vesting period.

     As an active, full-time employee, you will be eligible to elect coverage and participate in a
wide range of benefit programs as outlined in the 2008 Benefits brochures. The benefit plans will
be discussed with you in detail during new employee orientation. Please note that a few of these
programs have specified waiting periods before eligibility commences. You will also
receive four weeks of paid vacation per year, pro-rated for partial years. You will not be
entitled to any cash or other compensation for vacation time not taken during your employment.

     Should it be mutually determined that a relocation from New York to Seattle is in the best
interests of the business, Oxford will provide financial assistance that will include home sale
closing costs, home purchase closing costs, movement of household goods, and a miscellaneous
allowance. Additionally, we will provide you with transitional mortgage interest assistance on your
new Seattle residence by temporarily increasing your bi-weekly salary for the duration of the
period during which you own both your Woodstock, New York and Seattle residence or 18 months,
whichever is less, by an amount equal to:

     A. (i) the lesser of $2 million or the amount of the purchase price of your Seattle
residence multiplied by (ii) the lesser of the actual annual interest rate
you pay for a mortgage on your Seattle residence or the market interest rate published in
the Wall Street Journal for 30-year fixed rate “jumbo” mortgages on the date that you close
on your Seattle residence;
 
divided by

     B. 26.

     Details of this interest assistance will be determined in advance of such a move.

     In order to comply with US immigration laws, all persons employed by the company must provide
evidence of US citizenship or their right to work in the United States. You would be asked to
supply such proof on the first day of your employment. Acceptable evidence would include a US
driver’s license and a social security card or a US passport.

 

 

     This offer is contingent upon your passing a drug test and a background check which may
include work background, credit history, criminal history and verification of your academic record
including educational degrees. The drug screen form is enclosed. The drug screen must be completed
prior to commencement of your employment with Oxford.

     We look forward to developing our relationship with you and hope you will view this
opportunity as a chance to have a positive impact on our business. Nonetheless, please understand
that Oxford is an at-will employer. This means either you or Oxford are free to end the employment
relationship at any time, with or without notice, cause or justification. Nothing in this letter
or our policies or procedures either now or in the future are intended to change the at-will nature
of our relationship. The at-will nature of your employment cannot be altered or modified except in
writing by the Chief Executive Officer of Oxford Industries, Inc.

     If you have any questions at all, please do not hesitate to call Chris Cole, Human Resources
Vice President for Oxford, at 404-653-1358 or me at 404-653-1443.

     It is a dynamic, exciting time at Oxford, and we look forward to having you on our team.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/ J. Hicks Lanier
 	 
	 	J. Hicks Lanier 	 
	 	Chairman and Chief Executive Officer

Oxford Industries, Inc. 	 
	 

I hereby accept employment on the conditions set forth in this letter.

	 	 	 	 	 
	 	 	 
	/s/ Terry R. Pillow
 	 	 
	Signature of Candidate

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