Document:

exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) made and effective as of the 6th day of March,
2006, by and between ENCORE MEDICAL CORPORATION, a Delaware corporation (the “Company”), and BRIAN
ENNIS (the “Employee”).

     In consideration of the mutual promises contained herein, and of other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the
Employee agree as follows:

ARTICLE 1

EMPLOYMENT

     1.1 Employment Term. The Company hereby employs the Employee for a primary term
commencing on the date set forth above and, subject to earlier termination as provided in Section
1.5 hereof, ending December 31, 2007 (the “Employment Term”). Employee agrees to accept such
employment and to perform the services specified herein, all upon the terms and conditions
hereinafter stated.

     1.2 Duties. The Employee shall serve in the dual capacity as President-Empi and
President — Compex Technologies (which entities are in the process of combining and integrating
their functions), or in such other capacity as the Company may in its sole discretion direct, and
shall report to, and be subject to the general direction and control of, the Chief Operating
Officer of the Company. It is understood that upon the integration of Empi and Compex
Technologies, there will be only one position that the Employee will be serving in. It is further
understood and agreed that any modification in or expansion of Employee’s duties hereunder shall
not, unless specifically agreed in writing by Company, result in any modification in, increase or
decrease of Employee’s compensation referred to in Section 1.4 hereof.

     1.3 Extent of Service. The Employee shall devote his full time, attention, and
energy to the business of the Company and, except as may be specifically permitted by the Company
and approved by the Chief Executive Officer of the Company, shall not be engaged in any other
business activity while in the employ of the Company. The Employee will be allowed to serve as a
director on the board of directors of at least one company as long as such company or companies do
not compete with the business of Encore.

     1.4 Compensation

          1.4.1 Salary. The Company shall pay to the Employee a base salary at a rate of not
less than Two Hundred Seventy-Five Thousand Dollars ($275,000) per year, or at such greater rate as
the Board of Directors of the Company shall from time to time determine (the “Base Salary”). The
Base Salary shall be subject to review on no less than an annual basis. Such salary is to be
payable in installments in accordance with the payroll policies of the Company in effect from time
to time during the Employment Term. It is agreed that as of January 1, 2007 or such sooner date as
Employee is responsible for the manufacturing functions for Empi based on

 

 

the determination of the Chief Operating Officer of the Company, Employee’s base salary will
increase to Three Hundred Thousand Dollars ($300,000) per year.

          1.4.2 Other Benefits. The Employee shall be entitled to such vacation days, sick
days, insurance and other fringe benefit programs (including pension, profit-sharing, bonus and
stock plans, if any) as are established for all other executive employees of the Company, on the
same basis as such other employees are entitled thereto, it being understood that the
establishment, termination, or change of any such program shall be at the instance of the Company,
in exercise of its sole discretion, from time to time, and any such termination or change in any
such program shall not affect this Agreement.

     1.5 Termination.

          1.5.1 Termination by Employee. At any time after one (1) year from the commencement
of the Employment Term, Employee may terminate this Agreement on thirty (30) days’ prior written
notice.

          1.5.2 Termination by Company. Prior to the end of the Employment Term, the Company
may upon thirty (30) days’ prior written notice discharge the Employee with or without cause at its
sole option without any further liability hereunder to the Employee or his estate; provided,
however, in the event such termination was without cause, the Company shall be required to pay the
Employee, at the time of his discharge, an amount equal to (i) if the termination is after one (1)
year from the effective date of this Agreement (a) one (1) year’s Base Salary and (b) an amount
equal to the bonus that the Employee earned in the prior fiscal year of the Company, in addition to
any accrued, but unpaid Base Salary, and (ii) if the termination is within one (1) year from the
effective date of this Agreement, an amount equal to the monthly Base Salary amount times the
number of months that Employee has served under this Agreement (i.e., if terminated seven (7)
months after commencement of this Agreement, then Employee will receive seven (7) months severance
pay). The Employee will have no further liability hereunder to the Company except pursuant to
Article 2 and Section 3.2 hereof. In the event such termination was with cause, the Company shall
only be required to pay the Employee, at the time of his discharge, an amount equal to any accrued,
but unpaid Base Salary. For purposes of this Agreement, a “discharge for cause” shall mean a
discharge resulting from Employee having (i) failed or refused to follow legal and reasonable
policies or directives established and previously given to Employee in writing by Company, (ii)
willfully failed to attend to his duties after ten (10) days prior written notice of failure to so
act, (iii) committed acts amounting to gross negligence or willful misconduct to the material
detriment of Company, or (iv) otherwise materially breached any of the terms or provisions of this
Agreement after ten (10) days prior written notice of such material breach and failure to cure such
breach. Employee shall be deemed to have been discharged for cause upon delivery to Employee of a
“Notice of Termination” stating the “Date of Termination” and specifying the particulars of the
conduct justifying discharge for cause.

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ARTICLE 2

NON-COMPETITION AND DISCLOSURE OF INFORMATION

     2.1 Non-competition. Employee acknowledges that his services to be rendered hereunder
are of a special and unusual character which have a unique value to Company, the loss of which
cannot adequately be compensated by damages in an action at law. In view of the unique value to
Company of the services of Employee for which Company has contracted hereunder, and because of the
confidential information to be obtained by or disclosed to Employee, and as a material inducement
to Company to enter into this Agreement, and to pay to Employee the compensation referred to in
Section 1.4 hereof, Employee covenants and agrees that during Employee’s employment hereunder and
for a period of one (1) year after he ceases to be employed by Company, Employee shall not (a)
directly or indirectly, solicit business from, divert business from, or attempt to convert to other
methods of using the same or similar products or services as provided by Company, any client,
account or location of Company with which Employee has had any contact as a result of his
employment by Company hereunder; (b) engage in or carry on, directly or indirectly, either for
himself, as a member of a partnership, or as a stockholder (except as limited partner or
stockholder of less than one percent (1%) of the issued and outstanding limited partnership
interests or stock of a publicly held partnership or corporation whose gross assets exceed
$l,000,000), as an investor, lender, guarantor, landlord, manager, officer, or director of any
person, partnership, corporation, or other entity (other than the Company or its subsidiaries), or
as an employee, agent, associate, broker, or consultant of any person, partnership, corporation, or
other entity (other than the Company or its subsidiaries), any business (or segment of a business
if such business operates in more than one segment of the orthopedic industry) that competes with
any operations of the Company, as they exist at the time of Employee’s termination, within an one
hundred (100)-mile radius of any geographic area where Company is actually engaged in business, or
maintains sales or service representatives or employees; or (c) directly or indirectly, solicit for
employment or employ any employee of Company; provided, however, said period of non-competition of
one year shall be reduced in the event termination without cause occurs within the first year of
the term of this Agreement to a period equal to the actual length of term of this Agreement.

     2.2 Disclosures of Information. The Employee acknowledges that in the course of his
employment by the Company, he will receive certain trade secrets, programs, methods of operation,
financial information, lists of customers, and other confidential information and knowledge
concerning the businesses of the Company (hereinafter collectively referred to as “Information”)
that the Company desires to protect. As a material inducement to Company to enter into this
Agreement, and to pay to Employee the compensation referred to in Section 1.4 hereof, Employee
covenants and agrees that he shall not, at any time during or following the term of his employment
hereunder, directly or indirectly, divulge or disclose, for any purpose whatsoever, any of such
Information which has been obtained by or disclosed to him as a result of his employment by
Company. The Employee further agrees that he will at no time use the Information in competing with
the Company. Upon termination of this Agreement, the Employee shall surrender to the Company all
lists, books, financial information, records, literature, products, papers, documents, writings,
and other property produced by him or coming into his possession by or through his employment
relating to the Information, and the Employee

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agrees that all such materials will at all times remain the property of the Company. In the event
of a breach or threatened breach by Employee of any of the provisions of this Article 2, Company,
in addition to and not in limitation of any other rights, remedies or damages available to Company
at law or in equity, shall be entitled to a permanent injunction in order to prevent or to restrain
any such breach by Employee, or by Employee’s partners, agents, representatives, servants,
employers, employees and/or any and all persons directly or indirectly acting for or with him.

     2.3 Accounting for Profits. Employee covenants and agrees that if he shall violate
any of his covenants or agreements under Article 2 hereof, Company shall be entitled to an
accounting and repayment of all profits, compensation, commissions, remunerations or benefits which
Employee directly or indirectly has realized and/or may realize as a result of, growing out of or
in connection with any such violation; such remedy shall be in addition to and not in limitation of
any injunctive relief or other rights or remedies to which Company is or may be entitled at law or
in equity or under this Agreement.

     2.4 Reasonableness of Restrictions.

          2.4.1 Employee has carefully read and considered the provisions of Article 2 hereof and,
having done so, agrees that the restrictions set forth in such Article (including, but not limited
to, the time period of restriction and the geographical areas of restriction set forth in Article 2
hereof) are fair and reasonable and are reasonably required for the protection of the interest of
Company, its officers, directors and other employees.

          2.4.2 In the event that, notwithstanding the foregoing, any of the provisions of Article 2
hereof shall be held to be invalid or unenforceable, the remaining provisions thereof shall
nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts had
not been included therein. In the event that any provision of Article 2 relating to time period
and/or areas of restriction shall be declared by a court of competent jurisdiction to exceed the
maximum time period or areas such court deems reasonable and enforceable, said time period and/or
areas of restriction shall be deemed to become and thereafter be the maximum time period and/or
areas which such court deems reasonable and enforceable.

ARTICLE 3

EMPLOYEE INVENTIONS

     3.1 Employee Inventions. Employee shall promptly disclose to the Company or its
designee any and all ideas, inventions, works of authorship (including, but not limited to computer
programs, software and documentation), improvements, discoveries, developments, or innovations
(hereinafter referred to as “said inventions”), whether patentable or unpatentable, copyrightable
or uncopyrightable, made, developed, worked on, or conceived by Employee, either solely or jointly
with others, whether or not reduced to drawings, written description, documentation, models, or
other tangible form: (a) during the Employment Term that relate to, or arise out of, any
developments, services, research, or products of, or pertain to the business of, the Company and
(b) for a period of six (6) months after termination of the Employment Term,

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said inventions that relate to, or arise out of, any developments, services, research, or products
that Employee has been concerned with during the term of his employment.

     3.2 Assignment. Employee hereby assigns and agrees to assign to the Company, its
successors and assigns, Employee’s entire right, title, and interest in and to any of said
inventions. All of said inventions shall forthwith and without further consideration become and be
the exclusive property of the Company, it successors and assigns.

     3.3 Cooperation. Employee shall, without further compensation, do all lawful things,
including, but not limited to, maintaining invention records that shall be the property of the
Company, rendering assistance, giving of evidence and testimony, and executing necessary documents,
as requested, to enable the Company to file and obtain patents in the United States and foreign
countries on any of said inventions, as well as to protect the Company’s interest in any of said
inventions.

ARTICLE 4

MISCELLANEOUS

     4.1 Notices. All notices, requests, consents, and other communications under this
Agreement shall be in writing and shall be deemed to have been delivered on the date personally
delivered or on the date mailed, postage prepaid, by certified mail, return receipt requested, or
telegraphed or telexed and confirmed if addressed to the respective parties as follows: (a) if to
the Employee to the address set forth below, and (b) if to the Company to Encore Medical
Corporation, 9800 Metric Blvd., Austin, Texas 78758 ATTENTION: Chief Executive Officer. Either
party hereto may designate a different address by providing written notice of such new address to
the other party hereto.

     4.2 Specific Performance. The Employee acknowledges that a remedy at law for any
breach or attempted breach of Section 1.3 and Article 2 of this Agreement will be inadequate, and
agrees that the Company shall be entitled to specific performance and injunctive and other
equitable relief in case of any such breach or attempted breach, and further agrees to waive any
requirement for the securing or posting of any bond in connection with the obtaining of any such
injunctive or any other equitable relief. In the event the Company brings legal action to enforce
its rights hereunder, the Employee shall pay all of the Company’s court costs and legal fees and
expenses arising out of such action if the Company prevails in such action.

     4.3 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

     4.4 Assignment. This Agreement may not be assigned by the Employee. Neither the
Employee nor his spouse shall have any right to commute, encumber, or otherwise dispose of any
right to receive payments hereunder, it being the intention of the parties that such payments and

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the rights thereto are nonassignable and nontransferable. This Agreement is only assignable by the
Company to a parent, subsidiary, successor or other affiliate of the Company.

     4.5 Binding Effect. Subject to the provisions of Section 4.4 of this Agreement, this
Agreement shall be binding upon and inure to the benefit of the parties hereto, the Employee’s
heirs and personal representatives, and the successors and assigns of the Company.

     4.6 Governing Law. This Agreement shall be construed and enforced in accordance with
and governed by the laws of the State of Texas.

     4.7 Entire Agreement; Amendment. This Agreement contains the entire understanding
between the parties, and there are no agreements or understandings among the parties except as set
forth herein. The Employee represents and warrants to the Company that at the time of execution of
this Agreement he is not a party to any other employment agreement except that Employee is still
bound by the non-compete, non-solicitation clauses contained in his Wright Medical Group, Inc.
Employment Agreement until August 1, 2007. Employee further represents and warrants that he neither
has any proprietary information of any other business nor is he providing any other business’
proprietary information to the Company. No alteration or modification of this Agreement shall be
valid except by subsequent written instrument executed by the parties hereto. No waiver by either
party of any breach by the other party of any provision or condition of this Agreement in one
circumstance shall be deemed a waiver of such provision or condition in any other circumstances or
be deemed a waiver of any other provision or condition. The section and paragraph headings in this
Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year
first above written.

	 	 	 	 	 
	 	COMPANY:

ENCORE MEDICAL CORPORATION,

a Delaware corporation

 	 
	 	By:  	/s/ Paul Chapman
 	 
	 	 	Paul Chapman, 	 
	 	 	Chief Operating Officer 	 
	 
	 	EMPLOYEE:

 	 
	 	/s/ Brian Ennis
 	 
	 	BRIAN ENNIS 	 
	 	Address:  1465 East Massey Road, Memphis TN 38120 	 
	 

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                                3COM CORPORATION

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (the "Agreement") is by and between 3Com
Corporation (the "Company) and Edgar Masri ("Executive") and is as of August 8,
2006.

         1.       Duties and Scope of Employment.

                  (a) Positions and Duties. As of August 18, 2006 (the
         "Effective Date"), Executive will serve as the Company's President and
         Chief Executive Officer. As soon as reasonably practicable thereafter,
         Executive will be appointed to the Board of its Huawei Joint Venture as
         its Chairman. Executive will report to the Company's Board of Directors
         (the "Board"). As of the Effective Date, Executive will render such
         business and professional services in the performance of his duties,
         consistent with Executive's position within the Company, as will
         reasonably be assigned to him by the Board. The period Executive is
         employed by the Company under this Agreement is referred to herein as
         the "Employment Term."

                  (b) Board Membership. Executive will be appointed to serve as
         a member of the Board as of the Effective Date. However, in the event
         that the Effective Date is prior to September 20, 2006, Executive will
         be appointed to serve as a member of the Board effective immediately
         following the Company's Fiscal Year 2006 Annual Shareholders' Meeting
         which is scheduled for September 20, 2006. Thereafter, at each annual
         meeting of the Company's stockholders during the Employment Term, the
         Company will nominate Executive to serve as a member of the Board.
         Executive's service as a member of the Board will be subject to any
         required stockholder approval. Upon the termination of Executive's
         employment for any reason, unless otherwise requested by the Board,
         Executive will be deemed to have resigned from the Board (and all other
         positions held at the Company and its affiliates, including (without
         limitation) the Huawei Joint Venture) voluntarily, without any further
         required action by Executive, as of the end of Executive's employment
         and Executive, at the Board's request, will execute any documents
         necessary to reflect his resignation.

                  (c) Obligations. During the Employment Term, Executive will
         devote Executive's full business efforts and time to the Company and
         will use good faith efforts to discharge Executive's obligations under
         this Agreement to the best of Executive's ability and in accordance
         with each of the Company's corporate guidance and ethics guidelines,
         conflict of interests policies and code of conduct. For the duration of
         the Employment Term, Executive agrees not to actively engage in any
         other employment, occupation, or consulting activity, including
         membership of boards of directors, for any direct or indirect
         remuneration without the prior approval of the Board (which approval
         will not be unreasonably withheld); provided, however, that Executive
         may, without the approval of the Board, serve in any capacity with any
         civic, educational, or charitable organization, provided such services
         do not interfere with Executive's obligations to Company.

<PAGE>

                     (i) Executive hereby represents and warrants to the Company
that Executive is not party to any contract, understanding, agreement or policy,
written or otherwise, that would be breached by Executive's entering into, or
performing services under, this Agreement. Executive further represents that as
of the date of this Agreement there are no threatened, pending, or actual claims
against Executive of which he is aware as a result of his employment with his
current employer (or any other previous employer) or his membership on any
boards of directors.

                  (d) Other Entities. Executive agrees to serve and may be
         appointed, without additional compensation, as an officer and director
         for each of the Company's subsidiaries, partnerships, joint ventures,
         limited liability companies and other affiliates, including entities in
         which the Company has a significant investment as determined by the
         Company. As used in this Agreement, the term "affiliates" will include
         any entity controlled by, controlling, or under common control of the
         Company.

         2.       At-Will Employment. Executive and the Company agree that
Executive's employment with Company constitutes "at-will" employment. Executive
and the Company acknowledge that this employment relationship may be terminated
at any time, upon written notice to the other party, with or without Cause or
Good Reason (as each such term is defined in Section 10 below), at the option
either of the Company or the Executive. However, as described in this Agreement,
Executive may be entitled to severance benefits depending upon the circumstances
of Executive's termination of employment.

         3.       Compensation.

                  (a) Base Salary. As of the Effective Date, the Company will
         pay Executive an annual salary of $650,000.00 as compensation for his
         services (such annual salary, as is then effective, to be referred to
         herein as "Base Salary"). The Base Salary will be paid periodically in
         accordance with the Company's normal payroll practices and be subject
         to the usual, required withholdings.

                  (b) Annual Incentive. Executive will be eligible to receive
         annual cash incentives payable for the achievement of performance goals
         established by the Board or by the Committee. During the Employment
         Term, Executive's target annual incentive ("Target Annual Incentive")
         will be not less than 100% of Base Salary, with a maximum potential
         opportunity of 200% of Base Salary, subject to the terms of the bonus
         plan approved by the Committee. The actual earned annual cash
         incentive, if any, payable to Executive for any performance period will
         depend upon the extent to which the applicable performance goal(s)
         specified by the Committee are achieved or exceeded and will be
         adjusted for under- or over-performance. Any incentive earned during
         the first half of fiscal 2007 will be pro-rated based on the Effective
         Date (calculated by multiplying any incentive earned by Executive by a
         fraction with a numerator equal to the number of days between the
         Effective Date and the close of the first half of the fiscal year and a
         denominator equal to 182). The Company will notify Executive of the
         performance goals in respect of fiscal 2007 within 60 days after the
         Effective Date.

<PAGE>

                  (c) Stock Options.

                      (i) Executive will be granted nonstatutory stock options
to purchase 3,500,000 shares of Company common stock (the "Initial Options").
The exercise price will be at a per share exercise price equal to the closing
price per share of Company common stock on Nasdaq Global Select Market
("Nasdaq") on the first Tuesday in the month immediately succeeding the month in
which Executive commences employment with the Company (the "First Tuesday
Exercise Price"). The Initial Option will be granted under and subject to the
terms, definitions and provisions of the Company's 2003 Stock Plan, as amended
(the "2003 Plan"), except that the terms of this Agreement shall control to the
extent that this Agreement provides for more favorable terms with respect to the
stock option grants. The stock option grants will be scheduled to vest at a rate
of 25% on each anniversary of the grant over four (4) years assuming Executive's
continued employment with the Company on each scheduled vesting date, and will
have the maximum term permitted in the 2003 Plan. Except as provided in this
Agreement, the Initial Option will be subject to the Company's standard terms
and conditions for options granted under the 2003 Plan.

                      (ii) Executive will be granted nonstatutory stock options
to purchase eight million five hundred thousand (8,500,000) shares of Company
common stock (the "Stand-Alone Grant"). Two million five hundred thousand
(2,500,000) shares of Company common stock subject to the Stand-Alone Grant will
be granted with a per share exercise price equal to the First Tuesday Exercise
Price. Three million (3,000,000) shares of Company common stock subject to the
Stand-Alone Grant will be granted with a per share exercise price equal to a 20%
premium to the First Tuesday Exercise Price. An additional three million
(3,000,000) shares of Company common stock subject to the Stand-Alone Grant will
be granted with a per share exercise price equal to a 30% premium to the First
Tuesday Exercise Price. The Stand-Alone Grant will be granted under a
non-stockholder approved arrangement outside of any Company equity plan pursuant
to Nasdaq's "inducement exception." Executive agrees that the granting of the
Stand-Alone Grant is an inducement material to his decision to enter into this
Agreement and accept employment with the Company. Subject to the provisions of
this Agreement, the terms and conditions of the Stand-Alone Grant will be
identical to those of the Initial Option (except that they will not be granted
under a Company equity plan) and will be scheduled to vest at a rate of 25% on
each anniversary of the grant over four (4) years assuming Executive's continued
employment with the Company on each scheduled vesting date.

                      (iii) The Company will use its commercially reasonable
best efforts to register all shares covered by the Initial Option, the
Stand-Alone Option, and the Restricted Stock Grant on Form S-8 as soon as
administratively practicable following the Effective Date.

                      (iv) As of the Effective Date, Executive will be granted
500,000 shares of restricted stock (the "Restricted Stock Grant"). The
Restricted Stock Grant will be granted under and subject to the terms,
definitions and provisions of the Company's 2003 Plan, will vest in three equal
installments on each anniversary date of the grant over three (3) years assuming
Executive's continued employment with the Company on each scheduled vesting
date. Except as provided in this Agreement, the Restricted Stock Grant will be
subject to the Company's standard terms and conditions for restricted stock
granted under the 2003 Plan.
<PAGE>

                      (v) The parties anticipate that the Initial Option, the
Stand-Alone Option, and the Restricted Stock Grant are being granted in lieu of
any additional individualized equity grants for a four (4) year period
commencing on the Effective Date, except that should the Company and/or
Executive significantly overperform, additional equity grants may be made at the
discretion of the Company.

         4.       Employee Benefits.

                  (a) Generally. Executive will be eligible to participate in
         accordance with the terms of all Company employee benefit plans,
         policies and arrangements that are applicable to other executive
         officers of the Company, as such plans, policies and arrangements may
         exist from time to time.

                  (b) Vacation. Executive will be entitled to receive paid
         annual vacation in accordance with Company policy for other senior
         executive officers. In no event will Executive receive less than four
         (4) weeks of paid vacation time per calendar year.

                  (c) Life Insurance. Upon the Effective Date and throughout the
         duration of Executive's employment with the Company, the Company will
         purchase and maintain a $10,000,000.00 term life insurance policy for
         the benefit of Executive or his estate. Executive will assist the
         Company in procuring such insurance by submitting to typical
         examinations and by completing such applications and other instruments
         as may be required by the insurance carriers to which application is
         made for any such insurance. Notwithstanding the preceding, in no event
         will the Company be required to pay more than $30,000.00 for any annual
         premium for the policy. The Company's obligation to maintain this
         policy will terminate immediately upon Executive's voluntary
         termination of employment or his termination for Cause. In the event of
         a termination without Cause, a resignation for Good Reason, or a
         termination following a Change of Control, the Company will keep the
         policy in effect for a period equal to the earlier of one (1) year
         after such termination, or the date on which Executive becomes eligible
         for coverage under another employer's life insurance plan.

         5.       Expenses. The Company will reimburse Executive for reasonable
travel, entertainment and other expenses incurred by Executive in the
furtherance of the performance of Executive's duties hereunder, in accordance
with the Company's expense reimbursement policy as in effect from time to time.

         6.       Term and Termination of Employment. In the event Executive's
employment with the Company terminates for any reason, Executive will be
entitled to any (a) unpaid Base Salary accrued up to the effective date of
termination; (b) unpaid, but earned and accrued annual incentive for any
completed fiscal year as of his termination of employment; (c) pay for accrued
but unused vacation; (d) benefits or compensation as provided under the terms of
any employee benefit and compensation agreements or plans applicable to
Executive; (e) unreimbursed business expenses required to be reimbursed to
Executive; and (f) rights to indemnification Executive may have under the
Company's Articles of Incorporation, Bylaws, the Agreement, or separate
indemnification agreement, as applicable. In addition, if the termination is by
the Company without Cause or Executive resigns for Good Reason, Executive will
be entitled to amounts and benefits specified in Section 8.

<PAGE>

         7.       Survival of Covenants.

                  (a) Non-solicitation and Non-competition. The Executive agrees
         that during the Employment Term and for twelve (12) months thereafter,
         Executive will not (i) solicit any employee of the Company (other than
         Executive's personal assistant) for employment other than at the
         Company or one of its subsidiaries or affiliates, or (ii) directly or
         indirectly engage in, have any ownership interest in or participate in
         any entity that as of the date of termination, competes with the
         Company in any substantial business of the Company or any business
         reasonably expected to become a substantial business of the Company.
         Executive's passive ownership of not more than 1% of any publicly
         traded company and/or 5% ownership of any privately held company will
         not constitute a breach of this Section 7(a).

                  (b) Nondisparagement. During the Employment Term and for
         twelve (12) months thereafter, Executive will not knowingly and
         materially disparage, criticize, or otherwise make any derogatory
         statements regarding the Company, and the members of the Chief
         Executive staff and the Board will not knowingly and materially
         disparage, criticize, or otherwise make any derogatory comments
         regarding Executive. Notwithstanding the foregoing, nothing contained
         in this Agreement will be deemed to restrict Executive, the Company or
         any of the Company's current or former officers and/or directors from
         providing information to any governmental or regulatory agency (or in
         any way limit the content of any such information) to the extent they
         are requested or required to provide such information pursuant to
         applicable law or regulation.

                  (c) Confidentiality. During the Employment Term and
         thereafter, Executive will continue to comply with the terms of the
         Restrictive Covenant Agreement.

         8.       Severance.

                  (a) Termination Without Cause or Resignation for Good Reason
         other than in Connection with a Change of Control. If Executive's
         employment is terminated by the Company without Cause or if Executive
         resigns for Good Reason, and such termination is not in Connection with
         a Change of Control, then, subject to Section 8(d), Executive will
         receive: (i) continued payment of the aggregate of executive's Base
         Salary plus the Target Annual Incentive for the year in which the
         termination occurs (less applicable tax withholdings) for twelve (12)
         months, such amounts to be paid out bi-weekly in accordance with the
         Company's normal payroll policies; (ii) twelve (12) months accelerated
         vesting with respect to Executive's then outstanding, unvested equity
         awards, other than performance-based awards, (iii) extension of the
         exercise period for all Executive's outstanding stock options to the
         earlier of 165 calendar days from the date of termination or the
         expiration date of the stock options (iv) reimbursement for premiums
         paid for continued health benefits for Executive (and any eligible
         dependents) under the Company's health plans until the earlier of (x)
         eighteen (18) months, payable when such premiums are due (provided
         Executive validly elects to continue coverage under the Consolidated
         Omnibus Budget Reconciliation Act ("COBRA"), or (y) the date upon which
         Executive and Executive's eligible dependents become covered under
         similar plans, and iv) any life insurance policy in accordance with
         Section 4(c) above.

<PAGE>

                  (b) Termination Without Cause or Resignation for Good Reason
         in Connection with a Change of Control. If Executive's employment is
         terminated by the Company without Cause or by Executive for Good
         Reason, and the termination is in Connection with a Change of Control,
         then, subject to Section 8(d), Executive will receive: (i) continued
         payment of two (2) year's Base Salary, less applicable tax
         withholdings, in accordance with the Company's normal payroll policies;
         (ii) two (2) payments each equal to 100% of Executive's Target Annual
         Incentive for the year in which the termination occurs, less applicable
         tax withholdings, paid in two equal annual installments in accordance
         with the Company's normal schedule for the payment of annual cash
         incentives; (iii) full vesting with respect to Executive's then
         outstanding unvested equity awards, other than performance-based
         awards; (iv) extension of the exercise period for all Executive's
         outstanding stock options to the earlier of 165 calendar days from the
         date of termination or the expiration date of the stock options; (v)
         reimbursement for premiums paid for continued health benefits for
         Executive (and any eligible dependents) under the Company's health
         plans until the earlier of (x) eighteen (18) months, payable when such
         premiums are due (provided Executive validly elects to continue
         coverage under COBRA), or (y) the date upon which Executive and
         Executive's eligible dependents become covered under similar plans, and
         (vi) any life insurance policy in accordance with Section 4(c) above.

                  (c) Voluntary Termination Without Good Reason or Termination
         for Cause. If Executive's employment is terminated voluntarily,
         including due to death or Disability, without Good Reason or is
         terminated for Cause by the Company, then, except as provided in
         Section 6, (i) all further vesting of Executive's outstanding equity
         awards will terminate immediately; (ii) all payments of compensation by
         the Company to Executive hereunder will terminate immediately; and
         (iii) Executive will be eligible for severance benefits only in
         accordance with the Company's then established plans.

                  (d) Separation Agreement and Release of Claims. The receipt of
         any severance or other benefits pursuant to this Section 8 will be
         subject to Executive signing and not revoking a separation agreement
         and release of claims appended hereto as Exhibit B. No severance or
         other benefits will be paid or provided until the separation agreement
         and release agreement becomes effective.

                  (e) No Duty to Mitigate. Executive will not be required to
         mitigate the amount of any payment contemplated by this Agreement, nor
         will any earnings that Executive may receive from any other source
         reduce any such payment.

         9.       Excise Tax Gross-Up. In the event that the benefits provided
for in this Agreement constitute "parachute payments" within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the "Code") and
will be subject to the excise tax imposed by Section 4999 of the Code, then
Executive will receive (i) a payment from the Company sufficient to pay such
excise tax, and (ii) an additional payment from the Company sufficient to pay
the federal and state income and employment taxes and additional excise taxes
arising from the payments made to Executive by the Company pursuant to this
sentence. However, the Company may elect not to make payments under the
preceding sentence to the extent it reasonably determines that (a) the
"parachute payments" arise from the acceleration of options with exercise prices
exceeding the price at which the underlying shares could be sold on the date of
the Change in Control and (b) any payments under the preceding sentence would
not significantly benefit the Executive. Unless Executive and the

<PAGE>

Company agree otherwise in writing, the determination of Executive's excise tax
liability, if any, and the amount, if any, required to be paid under this
Section 9 will be made in writing by a certified public accounting firm selected
by the Company and reasonably acceptable to the Executive (the "Accountants").
For purposes of making the calculations required by this Section 9, 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. Executive and
the Company agree to furnish such information and documents as the Accountants
may reasonably request in order to make a determination under this Section 9.
The Company will bear all costs the Accountants may reasonably incur in
connection with any calculations contemplated by this Section 9.

         10.      Definitions.

                  (a) Cause. For purposes of this Agreement, "Cause" will mean:

                      (i)   Executive's willful and continued failure to perform
the duties and responsibilities of his position after there has been delivered
to Executive a written demand for performance from the Board which describes in
reasonable detail the basis for the Board's belief that Executive has not
substantially performed his duties and provides Executive the opportunity to
present to the Board his good faith reasons for not so performing and, if the
Board does not agree with such reasons, with thirty (30) days to take corrective
action;

                      (ii)  Any act of personal dishonesty taken by Executive in
connection with his responsibilities as an employee of the Company with the
intention or reasonable expectation that such action may result in the
substantial personal enrichment of Executive;

                      (iii) Executive's conviction of, or plea of nolo
contendere to, a felony that the Board reasonably believes has had or will have
a material detrimental effect on the Company's reputation or business;

                      (iv)  A breach of any fiduciary duty owed to the Company
by Executive that has a material detrimental effect on the Company's reputation
or business;

                      (v)   Executive being found liable in any Securities and
Exchange Commission or other civil or criminal securities law action or entering
any cease and desist order with respect to such action (regardless of whether or
not Executive admits or denies liability);

                      (vi)  Executive (A) obstructing or impeding; (B)
endeavoring to influence, obstruct or impede, or (C) failing to materially
cooperate with, any investigation authorized by the Board or any governmental or
self-regulatory entity (an "Investigation"). However, Executive's failure to
waive attorney-client privilege relating to communications with Executive's own
attorney in connection with an Investigation will not constitute "Cause"; or

                      (vii) Executive's disqualification or bar by any U.S.
governmental or self-regulatory authority from serving in the capacity
contemplated by this Agreement or Executive's loss of any U.S. governmental or
self-regulatory license that is reasonably necessary for Executive to perform
his responsibilities to the Company under this Agreement, if (A) the
disqualification, bar or loss continues for more than thirty (30) days, and (B)
during that period the Company uses its good

<PAGE>

faith efforts to cause the disqualification or bar to be lifted or the license
replaced. While any disqualification, bar or loss continues during Executive's
employment, Executive will serve in the capacity contemplated by this Agreement
to whatever extent legally permissible and, if Executive's employment is not
permissible, Executive will be placed on leave (which will be paid to the extent
legally permissible).

                  (b) Change of Control. For purposes of this Agreement, "Change
         of Control" will mean the occurrence of any of the following events:

                      (i)   The consummation by the Company of a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50% of the total voting power represented by the
voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation;

                      (ii)  The approval by the stockholders of the Company, or
if stockholder approval is not required, approval by the Board, of a plan of
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company's assets;

                      (iii) Any "person" (as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended) becoming the
"beneficial owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing 50% or more of the total
voting power represented by the Company's then outstanding voting securities; or

                      (iv)  A change in the composition of the Board within any
twelve (12) month period during the Term and pursuant to a plan in which the
proponent proposes alternative directors to the Board, and as a result of which
fewer than a majority are Incumbent Directors. "Incumbent Directors" will mean
directors who either (A) are directors of the Company as of the date hereof, or
(B) are elected, or nominated for election, to the Board with the affirmative
votes of at least a majority of those directors whose election or nomination was
not in connection with any transactions described in subsections (i), (ii), or
(iii) or in connection with an actual or threatened proxy contest relating to
the election of directors of the Company.

                  (c) Disability. For purposes of this Agreement, "Disability"
         will mean Executive's absence from his responsibilities with the
         Company on a full-time basis for 120 calendar days in any consecutive
         twelve (12) months period as a result of Executive's mental or physical
         illness or injury.

                  (d) Good Reason. For purposes of this Agreement, "Good Reason"
         means the occurrence of any of the following, without Executive's
         express written consent:

                      (i)   A significant reduction of Executive's duties,
position, or responsibilities, relative to Executive's duties, position, or
responsibilities in effect immediately prior to such reduction;

<PAGE>

                      (ii)  A substantial reduction by the Company of the
facilities and perquisites (including office space and location) available to
Executive immediately prior to such reduction;

                      (iii) A material reduction in the kind or level of
employee benefits to which Executive is entitled immediately prior to such
reduction with the result that Executive's overall benefits package is
significantly reduced other than pursuant to a reduction that also is applied to
substantially all other executive officers of the Company and that reduces the
level of employee benefits by a percentage reduction that is no greater than
15%;

                      (iv)  A reduction in Executive's Base Salary or annual
cash incentive as in effect immediately prior to such reduction other than
pursuant to a reduction that also is applied to substantially all other
executive officers of the Company and which reduction reduces the Base Salary
and/or annual cash incentive by a percentage reduction that is no greater than
15%;

                      (v)   The relocation of Executive to a facility or
location more than fifty (50) miles from his current place of employment; or

                      (vi)  The failure of the Company to obtain the assumption
of the employment agreement by a successor and an agreement that Executive will
retain the same role and responsibilities in the merged or surviving parent
company as he had prior to the merger under Section 1 of this Agreement.

The failure of the Company's stockholders to elect or reelect Executive to the
Board will not constitute Good Reason for purposes of this Agreement.

                  (e) In Connection with a Change of Control. For purposes of
         this Agreement, a termination of Executive's employment with the
         Company is "in Connection with a Change of Control" if Executive's
         employment is terminated within three (3) months prior or twelve (12)
         months following a Change of Control.

         11.      Indemnification. Subject to applicable law, Executive will be
provided indemnification to the maximum extent permitted by the Company's
Articles of Incorporation or Bylaws, including, if applicable, any directors and
officers insurance policies, with such indemnification to be on terms determined
by the Board or any of its committees, but on terms no less favorable than
provided to any other Company executive officer or director and subject to the
terms of any separate written indemnification agreement.

         12.      Confidential Information. Executive will execute the Company's
standard form of confidential information, intellectual property,
non-competition and non-solicitation agreement, appended hereto as Exhibit A
(the "Restrictive Covenant Agreement").

         13.      Assignment. This Agreement will be binding upon and inure to
the benefit of (a) the heirs, executors and legal representatives of Executive
upon Executive's death, and (b) any successor of the Company. Any such successor
of the Company will be deemed substituted for the Company under the terms of
this Agreement for all purposes. For this purpose, "successor" means any person,
firm, corporation, or other business entity which at any time, whether by
purchase, merger, or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of

<PAGE>

the Company. None of the rights of Executive to receive any form of compensation
payable pursuant to this Agreement may be assigned or transferred except by will
or the laws of descent and distribution. Any other attempted assignment,
transfer, conveyance, or other disposition of Executive's right to compensation
or other benefits will be null and void.

         14.      Notices. All notices, requests, demands and other
communications called for hereunder will be in writing and will be deemed given
(a) on the date of delivery if delivered personally; (b) one (1) day after being
sent overnight by a well-established commercial overnight service, or (c) four
(4) days after being mailed by registered or certified mail, return receipt
requested, prepaid and addressed to the parties or their successors at the
following addresses, or at such other addresses as the parties may later
designate in writing:

                  If to the Company:

                  Attn: Chairman of the Compensation Committee
                  c/o Corporate Secretary
                  3Com Corporation
                  350 Campus Drive
                  Marlborough, MA 01752-3064

                  If to Executive:

                  at the last residential address known by the Company

                  With a copy to:

                  Convergent GC, LLC
                  100 Cummings Center, Suite 325K
                  Beverly, MA 01915
                  Attention:  Audrey M. Roth, Esq.

         15.      Severability. If any provision hereof becomes or is declared
by a court of competent jurisdiction to be illegal, unenforceable, or void, this
Agreement will continue in full force and effect without said provision.

         16.      Arbitration.

                  (a) Except as provided below, any dispute arising out of or
         relating to this Agreement or the breach, termination or validity
         hereof shall be finally settled by binding arbitration conducted
         expeditiously in accordance with the J.A.M.S./Endispute Streamlined
         Arbitration Rules and Procedures (the "J.A.M.S. Rules"). The
         arbitration shall be governed by the United States Arbitration Act, 9
         U.S.C. Sections 1-16, and judgment upon the award rendered by the
         arbitrators may be entered by any court having jurisdiction thereof.
         The place of arbitration shall be Boston, Massachusetts.

                  (b) The parties covenant and agree that the arbitration shall
         commence within 60 days of the date on which a written demand for
         arbitration is filed by either party hereto. The parties (or their
         legal representatives) will promptly confer to select a single
         arbitrator mutually

<PAGE>

         acceptable to both parties. The arbitrator must be a licensed attorney,
         primarily engaged as a practicing lawyer in the field of employment law
         and related litigation for at least ten (10) years, or primarily
         engaged in the practice of arbitrating or mediating executive
         employment law disputes for at least ten (10) years, and must not have
         any existing or prior relationship with the Company or any of its
         subsidiaries or affiliates, on the one hand, or Executive, on the other
         hand. If the parties are unable to agree upon an arbitrator, one will
         be selected, meeting the above criteria, in accordance with the
         J.A.M.S. Rules. In connection with the arbitration proceeding, the
         arbitrator shall have the power to order the production of documents by
         each party and any third-party witnesses. In addition, each party may
         take up to three (3) depositions as of right, and the arbitrator may in
         his or her discretion allow additional depositions upon good cause
         shown by the moving party. However, the arbitrator shall not have the
         power to order the answering of interrogatories or the response to
         requests for admission. In connection with any arbitration, each party
         shall provide to the other, no later than seven (7) business days
         before the date of the arbitration, the identity of all persons that
         may testify at the arbitration and a copy of all documents that may be
         introduced at the arbitration or considered or used by a party's
         witness or expert. The arbitrator's decision and award shall be made
         and delivered within six (6) months of the selection of the arbitrator.
         The arbitrator's decision shall set forth a reasoned basis for any
         award of damages or finding of liability. The arbitrator shall not have
         power to award damages in excess of actual compensatory damages and
         shall not multiply actual damages or award punitive damages or any
         other damages that are specifically excluded under this Agreement, and
         each party hereby irrevocably waives any claim to such damages.

                  (c) The parties covenant and agree that they will participate
         in the arbitration in good faith. This Section 16 applies equally to
         requests for temporary, preliminary or permanent injunctive relief,
         except that in the case of temporary or preliminary injunctive relief
         any party may proceed in court without prior arbitration for the
         limited purpose of avoiding immediate and irreparable harm.

                  (d) Each of the parties hereto (i) hereby irrevocably submits
         to the jurisdiction of any United States District Court of competent
         jurisdiction for the purpose of enforcing the award or decision in any
         such proceeding, (ii) hereby waives, and agrees not to assert, by way
         of motion, as a defense, or otherwise, in any such suit, action or
         proceeding, any claim that it is not subject personally to the
         jurisdiction of the above-named courts, that its property is exempt or
         immune from attachment or execution (except as protected by applicable
         law), that the suit, action or proceeding is brought in an inconvenient
         forum, that the venue of the suit, action or proceeding is improper or
         that this Agreement or the subject matter hereof may not be enforced in
         or by such court, and hereby waives and agrees not to seek any review
         by any court of any other jurisdiction which may be called upon to
         grant an enforcement of the judgment of any such court. Each of the
         parties hereto hereby consents to service of process by registered mail
         at the address to which notices are to be given. Each of the parties
         hereto agrees that its or his submission to jurisdiction and its or his
         consent to service of process by mail is made for the express benefit
         of the other party hereto. Final judgment against either party hereto
         in any such action, suit or proceeding may be enforced in other
         jurisdictions by suit, action or proceeding on the judgment, or in any
         other manner provided by or pursuant to the laws of such other
         jurisdiction.

<PAGE>

         17.      Legal and Tax Expenses. The Company will reimburse Executive
up to $15,000.00 for reasonable and actual legal and tax advice expenses
incurred by him in connection with the negotiation, preparation and execution of
this Agreement.

         18.      Integration. This Agreement, together with the Restrictive
Covenant Agreement and the standard forms of equity award grant that describe
Executive's outstanding equity awards, represents the entire agreement and
understanding between the parties as to the subject matter herein and supersedes
all prior or contemporaneous agreements whether written or oral, including but
not limited to the Company's Section 16 Officer Severance Plan and the Company's
form of Management Retention Agreement. No waiver, alteration, or modification
of any of the provisions of this Agreement will be binding unless in a writing
and signed by duly authorized representatives of the parties hereto. In entering
into this Agreement, no party has relied on or made any representation,
warranty, inducement, promise, or understanding that is not in this Agreement.
To the extent that any provisions of this Agreement conflict with those of any
other agreement, including the standard Restrictive Covenant Agreement to be
signed upon Executive's hire, the terms in this Agreement will prevail.

         19.      Waiver of Breach. The waiver of a breach of any term or
provision of this Agreement, which must be in writing, will not operate as or be
construed to be a waiver of any other previous or subsequent breach of this
Agreement.

         20.      Survival. The Restrictive Covenant Agreement and Sections 6
through 13, 15, 16, 18 through 23, and 26 will survive the termination of this
Agreement.

         21.      Headings. All captions and Section headings used in this
Agreement are for convenient reference only and do not form a part of this
Agreement.

         22.      Tax Withholding. All payments made pursuant to this Agreement
will be subject to withholding of applicable taxes.

         23.      Governing Law. This Agreement will be governed by the laws of
the Commonwealth of Massachusetts without regard to its conflict of laws
provisions.

         24.      Acknowledgment. Executive acknowledges that he has had the
opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement.

         25.      Conditions. This offer is conditioned upon Executive providing
to Company references relating to Executive's employment in a form acceptable to
the Company, and Company's satisfactory review of such references.

         26.      Code Section 409A. Notwithstanding anything to the contrary in
this Agreement, if the Company reasonably determines that Section 409A of the
Code will result in the imposition of additional tax to an earlier payment of
any severance or other benefits otherwise due to Executive on or within the six
(6) month period following Executive's termination, the severance benefits will
accrue during such six (6) month period and will become payable in a lump sum
payment on the date

<PAGE>

six (6) months and one (1) day following the date of Executive's termination.
All subsequent payments, if any, will be payable as provided in this Agreement.

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

<PAGE>

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

COMPANY:

3COM CORPORATION

/S/ NEAL D. GOLDMAN                                 Date: August 8, 2006
--------------------------------------------

By:  Neal D. Goldman, Senior Vice President

Management Services, General Counsel and Secretary

EXECUTIVE:

/S/ EDGAR MASRI                                     Date: August 8, 2006
--------------------------------------------
Edgar Masri

                  [SIGNATURE PAGE TO CEO EMPLOYMENT AGREEMENT]

<PAGE>

                                    EXHIBIT A

                         RESTRICTIVE COVENANT AGREEMENT

         IN CONSIDERATION OF and as a condition to, my employment at will with
3Com Corporation, its subsidiaries, joint ventures, divisions, affiliates and/or
successors, this Restrictive Covenant Agreement ("Agreement") is made by and
between 3Com and the undersigned Employee ("I" or "me") and shall be effective
as of the date signed by the Employee.

         I understand and agree that 3Com is engaged in the highly competitive
networking and managed services industry and competes in a worldwide market. I
further understand and agree that 3Com operates a continuous program of
research, development, sales and production relating to its business, present
and future. My position with 3Com will be and is a position of importance and
trust. In the course of and due to my employment with 3Com, I will develop and
have access to and responsibility for proprietary and confidential information
of 3Com. I understand and agree that I am obligated to act in the best interests
of 3Com with respect to such proprietary and confidential information and
inventions which I develop during my employment.

         I agree to comply with 3Com's rules, policies, practices and Code of
Ethics and Business Conduct at all times and will faithfully and diligently
devote my business time, skills, energy, abilities and best efforts to further
the business and interests of 3Com. I understand and agree that my employment
with 3Com is at will, and that I or the Company can terminate my employment at
any time, with or without notice, for any reason or no reason.

         In consideration for my employment at will with 3Com, and in
consideration for my receipt of confidential information and compensation from
the Company, which I agree is good and valuable consideration for the promises,
representations, covenants and agreements contained herein, I hereby agree as
follows:

         1. DEFINITION OF 3COM. For purposes of this Agreement, the terms "3Com"
or the "Company" shall include 3Com Corporation and its present and future
subsidiaries, joint ventures, divisions, branch offices, affiliates and
successors. I agree that if I accept a transfer to another division or any
parent, subsidiary, joint venture, division, branch office or affiliate of 3Com,
this Agreement will remain in full force and effect and will continue to define
my obligations to 3Com and any such related corporation regarding the promises,
covenants and agreements contained herein, except to the extent prohibited by
the applicable law.

         2. CONFIDENTIALITY.

         2.1 I will maintain in strictest confidence and will not directly or
indirectly disclose or use, either during or after the term of my employment,
any proprietary, trade secret or confidential information or know-how belonging
to 3Com ("Confidential Information"), whether or not in written form and whether
or not marked as confidential, except to the extent required to perform duties
on behalf of 3Com and authorized by 3Com. Confidential Information refers to any
information not generally known which is obtained from 3Com, or which is
learned, discovered, developed, conceived, originated or prepared by me, whether
in whole or in part, during or as a result of my employment with 3Com. Such
Confidential Information includes, but is not limited to, information relating
to the following (whether or not reduced to writing): 3Com's proprietary
information, trade secrets, inventions, hardware, software, source code, object
code or other products or technologies, technical data, research and
development, production processes, manufacturing and engineering processes,
machines and equipment, products, product pricing (including rebates or special
price quotes), market and sales information, customer names and other customer
information, marketing and development plans, production and future business
plans, employee records and personnel information (including compensation),
finances. business information and any other information which is identified or
treated as confidential or proprietary by 3Com. Confidential Information also
includes any information belonging to third parties, including, but not limited
to, customers and suppliers of 3Com, who may have disclosed such information
directly or indirectly to me as the result of my status as an employee of 3Com
under an obligation of confidentiality and I agree to comply with any and all
contracts and agreements pertaining to such information.

         2.2 I will not, during my employment with the Company, unlawfully or in
violation of any contractual obligation or other duty, disclose to 3Com or use
in the course of my employment with 3Com any confidential or

<PAGE>

proprietary information or trade secrets of any former employer or other person
or entity, without the prior written consent of such employer, person or entity,
which consent will be presented to 3Com prior to any such disclosure or use.

         2.3 I also agree to comply with all United States (and applicable local
country) laws, regulations and orders and all 3Com policies and practices
concerning export and/or reexport of technology, software, source code, object
code or other products or technologies acquired by me through any means while
employed by or associated with 3Com.

         3. RETURN OF CONFIDENTIAL INFORMATION AND OTHER MATERIALS. I agree
that, immediately upon the request of the Company, but in no event later than
termination of my employment with 3Com, I will deliver to 3Com all equipment,
hardware, software and written and tangible material and information (including,
without limitation, records, notes. correspondence, memos, emails, reports,
drawings, codes, spreadsheets and other data and/or documents) recorded or
stored on any electronic, optical or other recording/storage medium, including
all copies thereof, in my possession or control that incorporates or reflects
the Confidential Information, and permanently destroy all copies that cannot be
delivered. If original Confidential Information cannot be delivered, I will
contact 3Com to enable transfer of such Confidential Information to 3Com before
I permanently destroy it.

         4. INVENTIONS.

         4.1 Definition of Inventions. I understand that the term "Inventions",
as used in this Agreement, means any new or useful idea, art, discovery, design,
contribution, finding or improvement, whether or not patentable, and all related
know-how and Confidential Information, and that inventions include, but are not
limited to, all designs, discoveries, formulae, processes, codes, manufacturing
techniques, mask works, semiconductor designs, computer software, inventions,
marks, logos, improvements, works of authorship and ideas.

         4.2 Disclosure and Assignment of Inventions. Except for Prior
Inventions (described in Section 4.3 below), I will promptly disclose and
describe to 3Com all Inventions which I may solely or jointly conceive, create,
develop, or reduce to practice during the period of my employment with 3Com or
within one (1) year after the termination of my employment with 3Com (i) which
relate to 3Com's business, research or development or 3Com's anticipated
business, research or development, (ii) which are developed in whole or in part
on 3Com's time or with the use of any of 3Com's equipment, supplies, facilities,
proprietary information or trade secrets, or (iii) which are suggested by or
result from any task assigned to me by or work I perform for 3Com. I agree to
promptly disclose to 3Com all Inventions developed by me to permit a
determination as to whether or not the Inventions should be the property of
3Com. If 3Com and I disagree as to whether or not the Inventions should be the
property of 3Com, it will be my responsibility to prove that it should not be
3Com's property. I agree to assign, and do hereby assign, to 3Com my full and
entire right, title and interest worldwide in and to such Inventions, except
those which I prove to 3Com's reasonable satisfaction are not 3Com's property,
and in all worldwide intellectual property rights based upon such Inventions. I
will, on 3Com's request, promptly execute a specific assignment of title to 3Com
and take such further actions, as more fully set forth in Subsection 4.4 below,
to secure, perfect, protect and enforce 3Com's rights, title and interest in and
to such Inventions.

         4.3 Prior Inventions. Set forth on Exhibit A are all Inventions made by
me prior to my employment with 3Com which relate to 3Com's business, research or
development or 3Com's anticipated business, research or development ("Prior
Inventions"). I understand that patents issued and patent applications fled
prior to the commencement of my employment with 3Com (including its predecessor
organizations) need not be listed. I hereby affirm that Exhibit A contains no
confidential information. If no Prior Inventions are listed in Exhibit A, I
represent that I have no Prior Inventions in which I have any right, title or
interest and all Inventions are assigned to 3Com pursuant to Section 4.2 above
except for patent applications and issued patents that have been fled prior to
the commencement of my employment with 3Com.

         4.4 Execution of Documents. I agree to perform, during and after my
employment with 3Com, all acts deemed necessary or desirable to enable 3Com, at
its own expense, to secure, perfect, protect, enforce and transfer all benefits,
enjoyment, rights, interests and title throughout the world in the Inventions
assigned to 3Com hereunder. Such acts may include, but are not limited to, my
execution and delivery of documents and instruments and my assistance and
cooperation in the registration and enforcement of applicable patents,
copyrights or other forms of

<PAGE>

protection, or other legal proceedings. I understand that my obligations
hereunder will survive the termination of my employment with 3Com. If, at any
time, my cooperation is required to enable 3Com to secure, perfect, protect,
enforce or transfer its right, title or interest in an Invention and I fail to
respond within fourteen (14) calendar days to a written request from 3Com for
action sent by 3Com to the last address for me maintained by the Company, I
hereby appoint 3Com as my attorney, and grant 3Com my power of attorney to
execute in good faith, commercially reasonable applications, releases,
assignments, or other documents or agreements reasonably required to secure,
perfect, protect, enforce or transfer its right, title or interest.

         4.5 Non-Assignable Inventions. The obligation to assign under Section
4.2 of this Agreement does not apply to an Invention that qualifies fully under
the provisions of Section 2870 et seq. of the California Labor Code. I
understand that this limited exclusion does not apply to 3Com employees outside
the State of California or to any patent or Invention covered by a contract
between 3Com and the United States or any of its agencies requiring full title
to such patent or Invention to be in the United States. A copy of the statute
will be made available to California employees upon a written request.

         5. CONFLICT OF INTEREST/COMPETITIVE EMPLOYMENT. During my employment
with 3Com, I will not engage in any work, employment, occupation, consulting or
other business activity (regardless of whether it is paid or unpaid) for myself
or any other person, entity or concern that is the same or similar to, in any
way competitive with or which may in any way be or appear to be in conflict with
3Com's business, research or development or 3Com's anticipated business,
research or development, without the prior written consent of 3Com's Senior Vice
President of Human Resources. I understand that I am obligated to promptly
disclose to 3Com Human Resources any actual, potential or perceived conflict of
interest or competitive employment and all relevant information relating
thereto.

         6. PUBLICATIONS. I agree that I will, no later than thirty (30) days
prior to submission for publication, provide the Company with copies of all
writings and materials which I propose to publish during my employment with 3Com
and within one (1) year thereafter. I also agree that I will remove or cause to
be removed from the writings and materials any Confidential Information (as
reasonably determined by the Company in its sole discretion) and/or any
reference to 3Com, upon the Company's request.

         7. NON-SOLICITATION, I understand and agree that certain restrictions
on my activities during and after my employment with 3Com are necessary to
protect 3Com's business interests, Confidential Information, goodwill and other
legitimate interests. Therefore, I agree to comply with the following
restrictions during the term of my employment with 3Com and for a period of one
(1) year thereafter (the "Restrictive Period"). This covenant shall cover my
activities worldwide.

         7.1 I agree that, during the Restrictive Period, I will not (and will
not encourage, cause or assist others to) solicit, hire, or offer employment to
any employee of 3Com, for any reason, directly or indirectly, for the purpose of
or with the effect of causing the employee to terminate employment with 3Com or
to violate any employee's obligations to 3Com.

         7.2 I agree that, during the Restrictive Period, I will not (and will
not encourage, cause or assist others to) solicit or divert any past, present or
prospective business opportunity, client, customer, account, distributor or
vendor of 3Com: (i) to stop or decrease doing business with or through 3Com, or
(ii) to do business with any other person, firm, partnership, corporation or
other entity that provides products or services materially similar to or
competitive with those provided by 3Com.

         7.3 I understand and agree that if I breach any of the preceding
provisions of this Section 7, the one (1) year Restrictive Period shall be
tolled and shall be extended by the period of time during which I remain in
breach.

         7.4 I understand and agree that the restrictions set forth in this
Section 7 are fair, reasonable and reasonably required for the protection of the
Company. Should any court or tribunal determine that such restrictions are
unreasonable or unenforceable under applicable law, I agree that this Section 7
shall be construed in such a manner as to impose on me such restrictions as may
then be reasonable and enforceable and sufficient to provide the Company with
the intended benefits and protections of this Section 7.

<PAGE>

         8. EQUITABLE RELIEF/SPECIFIC PERFORMANCE. I agree that a breach of any
of the promises, representations, covenants and agreements contained herein will
result in irreparable and continuing damage to 3Com for which there will be no
adequate remedy at law and no adequate method of calculating the Company's
damages. I agree that if I breach any of the promises, representations,
covenants and agreements contained herein 3Com shall be entitled to seek
injunctive relief and/or a decree for specific performance (with no obligation
to post a bond or other security), in addition to any such other relief as may
be available or proper (including monetary damages, costs and attorneys fees if
appropriate), at its sole discretion.

         9. NO CONFLICTING OBLIGATIONS. I represent that my execution of and
compliance with this Agreement are not a violation or breach of any other
agreement between me and any other person or entity. I agree that I will not
enter into any agreement, whether written or oral, in conflict with the
provisions of this Agreement.

         10. SURVIVAL. Notwithstanding the termination of my employment, I
understand and agree that Sections 2, 3, 4, 6, 7 and 10 shall survive such
termination. This Agreement shall not be interpreted as a contract for continued
employment and does not alter my at will employment relationship with 3Com.

         11. NONWAIVER. Any failure by 3Com or Ito demand performance of an
obligation or to complain of a breach of failure to perform will not operate or
be construed as a waiver of our respective rights or remedies under this
Agreement.

         12. SEVERABILITY. If any part of this Agreement is determined to be
invalid or unenforceable, that part will be amended to achieve as nearly as
possible the same effect as the original provision and the remainder of this
Agreement will remain in full force and effect.

         13. GOVERNING LAW. This Agreement shall be construed in accordance
with, and all disputes hereunder shall be governed by, the laws of the
Commonwealth of Massachusetts without regard to conflict of laws rules
thereunder. I hereby consent to the jurisdiction and venue of the United States
District Court for the District of Massachusetts (sitting in Boston,
Massachusetts) or the Business Litigation Session of the Suffolk County Superior
Court (sitting in Boston, Massachusetts) for all disputes arising under this
Agreement I will accept service of process by registered mail or such means as
are permitted by the court sent to me at the last address for me maintained by
the Company.

         14. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between 3Com and I relating to the subject matter contained herein and
supersedes all prior or simultaneous representations, discussions, negotiations
and agreements, whether written or oral. This Agreement is binding upon the
legal representatives, heirs, successors and assigns of the parties hereto. This
Agreement may be amended or modified only with the written consent of both me
and 3Com's Senior Vice President of Human Resources.

         15. ASSIGNMENT. This Agreement may be assigned by 3Com. I may not
assign or delegate my duties under this Agreement without written consent of
3Com's Senior Vice President of Human Resources.

I CERTIFY AND ACKNOWLEDGE THAT I HAVE CAREFULLY READ ALL OF THE PROVISIONS OF
THIS AGREEMENT AND THAT I UNDERSTAND AND WILL FULLY AND FAITHFULLY COMPLY WITH
ITS PROVISIONS.

3COM CORPORATION                            EMPLOYEE

By: __________________________________      Signature:_______________________

Print Name: __________________________      Print Name:______________________

Title:________________________________      Date:____________________________

Date: _______________________________

<PAGE>

                                    EXHIBIT B

                   SEPARATION AGREEMENT AND RELEASE OF CLAIMS

This SEPARATION AGREEMENT AND RELEASE OF CLAIMS (this "Release Agreement"),
dated as of [DATE], between 3Com Corporation (the "Company") and Edgar Masri
(the "Executive").

WHEREAS, in exchange for the promises and obligations provided in the Employment
Agreement, dated August 8, 2006 (the "Employment Agreement") between the Company
and the Executive, the Executive and the Company agreed to sign and comply with
the terms and conditions of this Separation Agreement and Release of Claims (the
"Release Agreement"), including, without limitation, each party releasing the
other from any and all claims arising from or relating to the Executive's
employment with the Company and the termination thereof; and

WHEREAS, the Executive's employment with the Company was terminated on or about
[INSERT] (the "Termination Date");

NOW, THEREFORE, in consideration of the mutual promises contained in the
Employment Agreement (the defined terms of which are incorporated herein unless
otherwise provided) and this Release Agreement, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereby agree as follows:

1.       Termination of Employment. The Executive understands and agrees that
         his employment with the Company terminated as of the Termination Date
         and that he has no further duties, responsibilities, powers, or
         authority with respect to the Company, its business or financial
         operations, except as expressly provided herein.

2.       Payment of Salary, Wages and Benefits. The Company agrees to comply
         fully with its agreements and obligations contained in the Employment
         Agreement including, without limitation, the payment to the Executive
         of all severance pay and benefits as set forth in Section 8 of the
         Employment Agreement (subject to Section 7 of the Employment
         Agreement). The Company also agrees to pay the Executive all expense
         reimbursements up to and including the Termination Date no later than
         thirty (30) days after the Termination Date provided that the Executive
         submits any outstanding expense reports within thirty (30) days of the
         Termination Date.

3.       Release of Claims by the Executive. In consideration of the executive
         severance benefits set forth in Section 8 of the Employment Agreement,
         the sufficiency of which are hereby acknowledged, and as a material
         inducement to the Company to enter into the Employment Agreement and
         this Release Agreement, the Executive hereby irrevocably and
         unconditionally releases the Company and its parents, subsidiaries,
         predecessors, successors, affiliates and joint ventures, and all of
         their directors, officers, employees, representatives, attorneys,
         agents, insurers, assigns, employee benefit programs (and the trustees,
         administrators, fiduciaries, and insurers of such programs), and any
         other persons acting by, through, under, or in concert with any of the
         persons or entities identified above (the "Company Released Parties")
         from all known and unknown claims, promises, debts, obligations, causes
         of action, or similar rights of any type, in law or in equity, that the
         Executive has, had or may have had arising from or relating to his
         employment with the Company and the termination thereof ("Executive
         Claims"). The Executive understands that the Executive Claims that he
         is hereby releasing include, but are not limited to:

                  a.       Any and all Executive Claims that in any way arise
                           from or relate to the Executive's employment with the
                           Company or the termination of that employment, such
                           as claims for compensation, bonuses, commissions,
                           benefits, reimbursements, lost wages, or unused
                           accrued PTO, other than as set forth in Section 8 of
                           the Employment Agreement;

                                       1
<PAGE>

                  b.       Any and all Executive Claims that in any way arise
                           from or relate to the design or administration of any
                           employee benefit program;

                  c.       Any and all Executive Claims that arise from or
                           relate to any severance or similar benefits or to
                           post-employment health or group insurance benefits
                           not expressly set forth in Section 8 of the Severance
                           Agreement, including without limitation any and all
                           Executive Claims to benefits or compensation under
                           the Company's Section 16 Officer Severance Plan; and

                  d.       Any and all Executive Claims based on a contract, any
                           employment or wrongful discharge claims or tort
                           claims, and any and all Executive Claims based on a
                           federal, state or local law, regulation or ordinance,
                           including, but not limited to, the Age Discrimination
                           in Employment Act, the Older Workers Benefit
                           Protection Act, Title VII of the Civil Rights Act of
                           1964, the Americans with Disabilities Act, the
                           Employee Retirement Income Security Act, the Fair
                           Labor Standards Act, Massachusetts General Laws chs.
                           149 and 151B, all as may have been amended, and any
                           other federal, state, or local common law, statute,
                           regulation, or ordinance of any other type or kind.

         The Executive understands that he is hereby releasing Executive Claims
         that he may not know about. Notwithstanding anything to the contrary
         contained in this Release Agreement, the Executive's release of
         Executive Claims under this Section 3 does not constitute a waiver by
         the Executive of any rights or benefits that he may have pursuant to
         (i) the Employment Agreement, (ii) the Company's 401(k) Plan, (iii)
         this Release Agreement, and (iv) any right of indemnification or
         contribution against the Company under any applicable agreements, or
         any insurance policies, statutory laws or Company by-laws to the same
         extent available to any other officer of the Company for any
         third-party claim against him arising from his employment as an officer
         of the Company.

4.       Release of Claims by the Company. In consideration of the Executive's
         agreement to act as Chief Executive Officer of the Company, and his
         agreement to enter into the Release Agreement upon his termination for
         any reason, the sufficiency of which are hereby acknowledged, and as a
         material inducement to the Executive to enter into the Employment
         Agreement and this Release Agreement, the Company hereby irrevocably
         and unconditionally releases the Executive and his representatives,
         attorneys, agents, insurers, and any other persons acting by, through,
         under, or in concert with any of the persons or entities identified
         above (the "Executive Released Parties") from all known and unknown
         claims, promises, debts, obligations, causes of action, or similar
         rights of any type, in law or in equity, that the Company has, had or
         may have had arising from or relating to the Executive's employment
         with the Company and the termination thereof ("Company Claims").
         Notwithstanding anything to the contrary contained in this Section 4,
         the Company does not release the Executive from any of his obligations
         under this Release Agreement or in connection with any derivative claim
         by or right in the Company; provided that nothing contained herein
         shall affect Executive's rights under any indemnification agreements or
         insurance policies.

5.       Acknowledgement of Waiver of Claims Under ADEA. The Executive
         acknowledges that he is waiving and releasing any rights he may have
         under the Age Discrimination in Employment Act of 1967 ("ADEA") and
         that this waiver and release is knowing and voluntary. The Executive
         and the Company agree that this waiver and release does not apply to
         any rights or claims that may arise under ADEA after the Effective Date
         of this Agreement. The Executive acknowledges that the consideration
         given for this waiver and Release Agreement is in addition to any of
         the value to which the Executive was already entitled. The Executive
         further acknowledges that he has been advised by this writing that

                  a.       he should consult with an attorney prior to executing
                           this Release Agreement;

                  b.       he has been given the opportunity to consider this
                           Release Agreement for a period of up to twenty-one
                           (21) days;

                                       2
<PAGE>

                  c.       he has seven (7) days following his execution of this
                           Release Agreement to revoke this Release Agreement;

                  d.       this Release Agreement shall not be effective until
                           the revocation period has expired; and

                  e.       nothing in this Release Agreement prevents or
                           precludes the Executive 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.

 5.      Covenant Not to Sue. Each of the Company and the Executive expressly
         warrants and agrees that it has not as of the date of this Release
         Agreement filed or maintained and will not in the future file or
         maintain any lawsuit, claim or action of any kind whatsoever against
         the Executive Released Parties or the Company Released Parties, as the
         case may be, nor will the Company or the Executive cause or knowingly
         permit any such lawsuit, claim or action to be field or maintained on
         its or his behalf in any federal, state or municipal court,
         administrative agency or other tribunal relating to any Claim(s)
         released pursuant to Section 3 or 4 of this Release Agreement, to the
         fullest extent permitted by law.

 6.      Return of Company Property. The Executive hereby warrants and confirms
         that he has returned to the Company all Company property and equipment
         in his possession or control, including but not limited to all files,
         documents, data and records (whether on paper or in tapes, disks, or
         other machine-readable form), office equipment, credit cards, and
         employee identification cards. The Executive further warrants and
         confirms that he has left intact all electronic Company documents,
         including those that he developed or helped develop during his
         employment. To the extent that the Executive had electronic Company
         documents in his possession or control through a personal computer, he
         further warrants and certifies that he has permanently destroyed all
         such files, other than copies of the Employment Agreement, this Release
         Agreement, and any other documents and/or instruments to which he
         personally was a party.

 7.      Effective Date. This Release Agreement shall be effective after it has
         been signed by the Executive and after eight (8) days have passed since
         the Executive signed the Release Agreement (the "Effective Date"),
         unless revoked by the Executive within seven (7) days after the Release
         Agreement was signed by him.

 8.      Knowing Release. The Executive acknowledges and agrees that he has read
         this Release Agreement, has carefully considered its provisions, has
         had an opportunity to discuss it with an attorney, and attests that he
         is fully competent to execute this Release Agreement and that he fully
         understands and knowingly accepts its terms and conditions in their
         entirety and without reservation.

 9.      Miscellaneous.

                  a.       Assignment. This Agreement will be binding upon and
                           inure to the benefit of (a) the heirs, executors and
                           legal representatives of Executive upon Executive's
                           death, and (b) any successor of the Company. Any such
                           successor of the Company will be deemed substituted
                           for the Company under the terms of this Agreement for
                           all purposes. For this purpose, "successor" means any
                           person, firm, corporation, or other business entity
                           which at any time, whether by purchase, merger, or
                           otherwise, directly or indirectly acquires all or
                           substantially all of the assets or business of the
                           Company. None of the rights of Executive to receive
                           any form of compensation payable pursuant to this
                           Agreement may be assigned or transferred except by
                           will or the laws of descent and distribution. Any
                           other attempted assignment, transfer, conveyance, or
                           other disposition of Executive's right to
                           compensation or other benefits will be null and void.

                  b.       Notices. All notices, requests, demands and other
                           communications called for hereunder

                                       3
<PAGE>

                           will be in writing and will be deemed given (a) on
                           the date of delivery if delivered personally; (b) one
                           (1) day after being sent overnight by a
                           well-established commercial overnight service, or (c)
                           four (4) days after being mailed by registered or
                           certified mail, return receipt requested, prepaid and
                           addressed to the parties or their successors at the
                           following addresses, or at such other addresses as
                           the parties may later designate in writing:

                           If to the Company:

                                    Attn: Chairman of the Compensation Committee
                                    c/o Corporate Secretary
                                    3Com Corporation
                                    350 Campus Drive
                                    Marlborough, MA 01752-3064

                           If to Executive:

                                    at the last residential address known by the
                                    Company

                           With a copy to:

                                    Convergent GC, LLC
                                    100 Cummings Center, Suite 325K
                                    Beverly, MA 01915
                                    Attention:  Audrey M. Roth, Esq.

                  c.       Severability. If any provision hereof becomes or is
                           declared by a court of competent jurisdiction to be
                           illegal, unenforceable, or void, this Agreement will
                           continue in full force and effect without said
                           provision.

                  d.       Arbitration.

                           i.       Except as provided below, any dispute
                                    arising out of or relating to this Agreement
                                    or the breach, termination or validity
                                    hereof shall be finally settled by binding
                                    arbitration conducted expeditiously in
                                    accordance with the J.A.M.S./Endispute
                                    Streamlined Arbitration Rules and Procedures
                                    (the "J.A.M.S. Rules"). The arbitration
                                    shall be governed by the United States
                                    Arbitration Act, 9 U.S.C. ss.ss.1-16, and
                                    judgment upon the award rendered by the
                                    arbitrators may be entered by any court
                                    having jurisdiction thereof. The place of
                                    arbitration shall be Boston, Massachusetts.

                           ii.      The parties covenant and agree that the
                                    arbitration shall commence within 60 days of
                                    the date on which a written demand for
                                    arbitration is filed by either party hereto.
                                    The parties (or their legal representatives)
                                    will promptly confer to select a single
                                    arbitrator mutually acceptable to both
                                    parties. The arbitrator must be a licensed
                                    attorney, primarily engaged as a practicing
                                    lawyer in the field of employment law and
                                    related litigation for at least ten (10)
                                    years, or primarily engaged in the practice
                                    of arbitrating or mediating executive
                                    employment law disputes for at least ten
                                    (10) years, and must not have any existing
                                    or prior relationship with the Company or
                                    any of its subsidiaries or affiliates, on
                                    the one hand, or Executive, on the other
                                    hand. If the parties are unable to agree
                                    upon an arbitrator, one will be selected,
                                    meeting the above criteria, in accordance
                                    with the J.A.M.S. Rules. In connection with
                                    the arbitration proceeding, the arbitrator
                                    shall have the power to order the production
                                    of documents by each party and any
                                    third-party witnesses. In addition, each
                                    party may take up to three (3) depositions
                                    as of right, and the arbitrator may in his
                                    or her discretion allow

                                       4
<PAGE>
                                    additional depositions upon good cause shown
                                    by the moving party. However, the arbitrator
                                    shall not have the power to order the
                                    answering of interrogatories or the response
                                    to requests for admission. In connection
                                    with any arbitration, each party shall
                                    provide to the other, no later than seven
                                    (7) business days before the date of the
                                    arbitration, the identity of all persons
                                    that may testify at the arbitration and a
                                    copy of all documents that may be introduced
                                    at the arbitration or considered or used by
                                    a party's witness or expert. The
                                    arbitrator's decision and award shall be
                                    made and delivered within six (6) months of
                                    the selection of the arbitrator. The
                                    arbitrator's decision shall set forth a
                                    reasoned basis for any award of damages or
                                    finding of liability. The arbitrator shall
                                    not have power to award damages in excess of
                                    actual compensatory damages and shall not
                                    multiply actual damages or award punitive
                                    damages or any other damages that are
                                    specifically excluded under this Agreement,
                                    and each party hereby irrevocably waives any
                                    claim to such damages.

                            iii.    The parties covenant and agree that they
                                    will participate in the arbitration in good
                                    faith. This Section 9(d) applies equally to
                                    requests for temporary, preliminary or
                                    permanent injunctive relief, except that in
                                    the case of temporary or preliminary
                                    injunctive relief any party may proceed in
                                    court without prior arbitration for the
                                    limited purpose of avoiding immediate and
                                    irreparable harm.

                           iv.      Each of the parties hereto (i) hereby
                                    irrevocably submits to the jurisdiction of
                                    any United States District Court of
                                    competent jurisdiction for the purpose of
                                    enforcing the award or decision in any such
                                    proceeding, (ii) hereby waives, and agrees
                                    not to assert, by way of motion, as a
                                    defense, or otherwise, in any such suit,
                                    action or proceeding, any claim that it is
                                    not subject personally to the jurisdiction
                                    of the above-named courts, that its property
                                    is exempt or immune from attachment or
                                    execution (except as protected by applicable
                                    law), that the suit, action or proceeding is
                                    brought in an inconvenient forum, that the
                                    venue of the suit, action or proceeding is
                                    improper or that this Agreement or the
                                    subject matter hereof may not be enforced in
                                    or by such court, and hereby waives and
                                    agrees not to seek any review by any court
                                    of any other jurisdiction which may be
                                    called upon to grant an enforcement of the
                                    judgment of any such court. Each of the
                                    parties hereto hereby consents to service of
                                    process by registered mail at the address to
                                    which notices are to be given. Each of the
                                    parties hereto agrees that its or his
                                    submission to jurisdiction and its or his
                                    consent to service of process by mail is
                                    made for the express benefit of the other
                                    party hereto. Final judgment against either
                                    party hereto in any such action, suit or
                                    proceeding may be enforced in other
                                    jurisdictions by suit, action or proceeding
                                    on the judgment, or in any other manner
                                    provided by or pursuant to the laws of such
                                    other jurisdiction.

                  e.       Integration. This Release Agreement, together with
                           Employment Agreement and the standard forms of equity
                           award grant that describe Executive's outstanding
                           equity awards, represents the entire agreement and
                           understanding between the parties as to the subject
                           matter herein and supersedes all prior or
                           contemporaneous agreements whether written or oral,
                           including but not limited to, the Company's Section
                           16 Officer Severance Plan and the Company's form of
                           Management Retention Agreement. No waiver,
                           alteration, or modification of any of the provisions
                           of this Agreement will be binding unless in a writing
                           and signed by duly authorized representatives of the
                           parties hereto. In entering into this Agreement, no
                           party has relied on or made any representation,
                           warranty, inducement, promise, or understanding that
                           is not in this Agreement. To the extent that any
                           provisions of this Agreement conflict with those of
                           any other agreement, including the standard
                           Restrictive Covenant Agreement to be signed upon
                           Executive's hire, the terms in this Employment
                           Agreement will prevail.

                                       5
<PAGE>

                  f.       Waiver of Breach. The waiver of a breach of any term
                           or provision of this Agreement, which must be in
                           writing, will not operate as or be construed to be a
                           waiver of any other previous or subsequent breach of
                           this Agreement.

                  g.       Headings. All captions and Section headings used in
                           this Release Agreement are for convenient reference
                           only and do not form a part of this Release
                           Agreement.

                  h.       Governing Law. This Agreement will be governed by the
                           laws of the Commonwealth of Massachusetts without
                           regard to its conflict of laws provisions.

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

IN WITNESS WHEREOF, the parties hereto have executed this Release Agreement as
of [DATE].

                                        3COM CORPORATION

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        ----------------------------------------
                                                      Edgar Masri

                                       6

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