Document:

exv10w25

Exhibit 10.25

FIRST AMENDMENT

TO

CHRISTOPHER BOLIN 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 Christopher
Bolin, an individual (the “Executive”).

WITNESSETH:

     WHEREAS, on or about October 1, 2004, 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 4, Compensation, is amended as follows:

	 	(i)	 	Section 4(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 4(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 4 (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 incurred in
accordance with Company policy 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 (60% 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 4(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 10 of this
Agreement, (1) Executive shall receive payments equal to the sum of (A) Executive’s Base
Salary for six months and (B) in addition to any portion of a Target Bonus paid pursuant
to Section 4(c)(i). either (i) if Executive’s Target Bonus measuring period is
quarterly, the Target Bonus for two quarters, or (ii) if Executive’s Target Bonus
measuring period is annual, or a combination of quarterly and annual, Executive’s Target
Bonus for six months; less applicable withholding, and otherwise in accordance with
Section 4(c)(v). (2) the Company shall pay Executive cash equal to the pre-tax
cost to the Company of

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	 	 	 	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 six (6)
months from the date of Executive’s termination of employment, and (3) if, and only if,
such termination is within six (6) months following a Change in Control, or 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 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) The cross-reference in Section 4(c)(iii) to “Section 6(c)(i)” is corrected to read
“Section 4(c)(i)”

(v) Section 4(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;

(vi) A new Section 4(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 4(c)(ii) shall be
paid as follows: (1) one-sixth of the total amount due under Section 4(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 4(c)(ii)
have not been paid by March 1 of the calendar year following the calendar year in
which Executive’s

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employment with the Company terminated, then the remaining
amounts due under Section 4(c)(ii) shall be immediately
due and payable on that date. For purposes of the Target Bonus
calculation under this Section 4(c) 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.

(vii) A new Section 4(e) 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) 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 4(d) or 4(e) of the Employment
Agreement between the Executive and the Company dated October 1,
2004, as amended on May 21, 2005.

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

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

	 	 	 	 	 	 	 
	MCAFEE, INC.	 	EXECUTIVE
	 
	 	 	 	 	 	 
	By: 

Name:

	 	/s/ Kent H. Roberts
 

Kent H. Roberts
	 	/s/ Christopher Bolin
 

Name: Christopher Bolin
	 	 
	Title:

	 	Executive Vice President and General Counsel	 	 	 	 

5exv10w32

Exhibit 710.32.01

McAfee, Inc.

Stock Option Agreement

NAME

Pursuant to the terms and conditions of the Company’s NAME OF OPTION PLAN (the “Plan”), OPTIONEE
(the “Optionee”) has been granted a nonstatutory stock option to purchase XX,XXX shares (the
“Option”) of stock as outlined below. In general, the latest date this option will expire is
MM/DD/YY (the “Expiration Date”). However, as provided in the Plan, this option may expire earlier
than the Expiration Date.

			
	 	 	 
	Grant Date:MM/DD/YY
	 	Option Price per Share: US     $XX.XX
	Options Granted:      XX,XXX	 	 

Vesting Schedule

	 	 	 
	Number of Shares to vest	 	Vesting Date
	XX,XXX
	 	MM/DD/YY

25% of the Shares subject to the Option shall vest on the Vesting Date, and 1/48th of the Shares

subject to the Option shall vest each month thereafter.

	 	 	 
	Upon one of the following events:	 	Your stock option will expire after:
	Termination of Service (except as shown below)

	 	90 Days
	 
	 	 
	Termination of Service due to Retirement

	 	90 Days
	 
	 	 
	Termination of Service due to Disability

	 	12 months
	 
	 	 
	Termination of Service due to Death

	 	12 months

Should the Optionee cease service with the Company for any reason prior to vesting in one or more
Shares subject to this Option, then the Option will be immediately cancelled with respect to those
unvested Shares, and the Optionee shall thereupon cease to have any right or entitlement to receive
any such cancelled portion of the Option. By your signature and the signature of the Company’s
representative below, you and the Company agree that this Option is granted under and governed by
the terms and conditions of the Plan and this Option Agreement. Optionee has reviewed the Plan and
this Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel
prior to executing this Option Agreement and fully understands all provisions of the Plan and
Option Agreement. Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator upon any questions relating to the Plan and Option
Agreement.

McAfee, Inc.

[NAME]

[TITLE]

	 	 	 	 	 
	 

	 	 

OPTIONEE
	 	 

 

 

McAfee, Inc.

Stock Option Agreement

	1.	 	Grant of Option. The Plan Administrator of the Company hereby grants to the
Optionee named in the Stock Option Notification (the “Notice”) attached as Part I of this
Agreement (the “Optionee”) an option (the “Option”) to purchase the number of Shares, as
set forth in the Notice, at the option price per share set forth in the Notice (the “Option
Price”), subject to the terms and conditions of the Plan, which is incorporated herein by
reference. In the event of a conflict between the terms and conditions of the Plan and the
terms and conditions of the Notice, the terms and conditions of the Plan shall prevail.
	 
	2.	 	Exercise of Option.

	 	(a)	 	Right to Exercise. This Option is exercisable during its term in
accordance with the Vesting Schedule set out in the Notice and the applicable
provisions of the Plan and this Notice.
	 
	 	(b)	 	Method of Exercise. This Option is exercisable by delivery of an
exercise notice which shall state the election to exercise the Option, the number of
Shares in respect of which the Option is being exercised (the “Exercised Shares”), and
such other representations and agreements as may be required by the Company pursuant
to the provisions of the Plan. The exercise notice shall be completed by the Optionee
and delivered to Stock Administration. The exercise notice shall be accompanied by
payment of the aggregate Exercise Price as to all Exercised Shares. This Option shall
be deemed to be exercised upon receipt by the Company of such fully executed exercise
notice accompanied by such aggregate Option Price. If an exercise notice is not
completed, Stock Administration will execute the exercises on a FIFO basis according
to grant date. No shares shall be issued pursuant to the exercise of the Option unless
such issuance and exercise complies with Applicable Laws. Assuming such compliance,
for income tax purposes and Exercised Shares shall be considered transferred to the
Optionee on the date the Option is exercised with respect to such Exercised Shares.

	3.	 	Method of Payment. Payment of the aggregate Option Price shall be by any of the
following, or a combination thereof, at the election of the Optionee:

	 	(a)	 	cash;
	 
	 	(b)	 	check;
	 
	 	(c)	 	consideration received by the Company under a cashless exercise program
implemented by the company in connection with the Plan; or surrender of other Shares
which (i) in the case of Shares acquired upon exercise of an option, have been owned
by the Optionee for more than six (6) months on the date of surrender, and (ii) have a
Fair Market Value on the date of surrender equal to the aggregate Option Price of the
Exercised Shares.

	4.	 	Non-Transferability of Option. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent and distribution and may be exercised during
the lifetime of Optionee only by the Optionee. The terms of the Plan and this Notice shall be
binding upon the executors, administrators, heirs, successors and assigns of the Optionee.
	 
	5.	 	Term of Option. This Option may be exercised only within the term set out in the
Notice, and may be exercised during such term only in accordance with the Plan and the terms
of this Notice.
	 
	6.	 	Tax Consequences. Some of the federal tax consequences relating to this Option, as
of the date of this Option, are set forth below. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND
THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER
BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

	 	(a)	 	Exercising the Option. The Optionee may incur regular federal income
tax liability upon exercise of an NSO. The optionee will be treated as having
received compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the Fair

 

 

McAfee, Inc.

Stock Option Agreement

	 	 	 	Market Value of the Exercised Shares on the date of exercise over their aggregate
Option Price. If the Optionee is an Employee or a former Employee, the Company
will be required to withhold from his or her compensation or collection from
Optionee and pay to the applicable taxing authorities an amount in cash equal to a
percentage of this compensation income at the time of exercise, and may refuse to
honor the exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.
	 
	 	(b)	 	Disposition of Shares. If the Optionee holds NSO shares for at least
one year, and gain realized on disposition of the Shares will be treated as long-term
capital gain for federal income tax purposes.

	7.	 	Entire Agreement: Governing Law. The Plan is incorporated herein by reference. The
Plan and this Notice constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and agreements of
the Company and Optionee with respect to the subject matter hereof, and may not be modified
adversely to the Optionee’s interest except by means of a writing signed by the Company and
Optionee. This agreement is governed by the internal substantive laws, but not the choice of
law rules, of California.

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