Document:

exv10w54

Exhibit 10.54

FIRST AMENDMENT TO AMENDED

AND RESTATED CREDIT AND GUARANTY AGREEMENT

     THIS FIRST AMENDMENT TO THE AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT (this
“Amendment”) is dated as of June [18], 2008 and is entered into by and among H3C HOLDINGS LIMITED,
a limited liability company organized under the laws of the Cayman Islands (“Borrower”), H3C
TECHNOLOGIES CO., LIMITED, a company incorporated with limited liability under the laws of Hong
Kong (“H3C”), GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”), as Administrative Agent (“Administrative
Agent”), acting with the consent of the Requisite Lenders and, for purposes of Section IV hereof,
the GUARANTORS listed on the signature pages hereto, and is made with reference to that certain
AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT dated as of May 25, 2007 and effective as of May
31, 2007 (as amended through the date hereof, the “Credit Agreement”) by and among the Borrower,
H3C, the Holdco Guarantors, the Lenders, the Administrative Agent, the Collateral Agent and the
other Agents named therein. Capitalized terms used herein without definition shall have the same
meanings herein as set forth in the Credit Agreement after giving effect to this Amendment.

RECITALS

          WHEREAS, the Credit Parties have requested that Requisite Lenders agree to amend certain
provisions of the Credit Agreement as provided for herein; and

          WHEREAS, subject to certain conditions, Requisite Lenders are willing to agree to such
amendment relating to the Credit Agreement.

          NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

     SECTION I. AMENDMENTS TO CREDIT AGREEMENT

	1.1	 	Amendments to Section 1: Definitions.

          Section 1.1 of the Credit Agreement is hereby amended by adding the following definitions in
proper alphabetical sequence:

     “First Amendment” means that certain First Amendment Agreement to Amended and Restated
Credit and Guaranty Agreement dated as of June [   ], 2008 among the Borrower, H3C, the
Administrative Agent, the financial institutions and the Guarantors listed on the signature
pages thereto.

     “First Amendment Effective Date” means the date of satisfaction of the conditions
referred to in Section II of the First Amendment.

 

 

	1.2	 	Amendments to Section 5.1.

     (a) Section 5.1(a) is hereby amended and restated in its entirety as
follows:

     “(a) Summary Financial Information. (i) Upon the earlier to occur of
(1) 90 days after the end of each of the first three Fiscal Quarters of each Fiscal
Year or (2) 3Com’s public release of its financial statements which would include
the financial results of Borrower for the applicable Fiscal Quarter (other than the
fourth Fiscal Quarter), Borrower shall deliver Summary Financial Information for
Borrower and its Subsidiaries with respect to such Fiscal Quarter to the Public-Side
Lenders and (ii) on the same day Borrower delivers financial statements to the
Private-Side Lenders pursuant to Section 5.1(c) below, Borrower shall also deliver
Summary Financial Information for Borrower and its Subsidiaries with respect to the
same relevant period to the Public-Side Lenders;”

     (b) Section 5.1 is hereby further amended by inserting a new subclause (p)
as follows:

     “(p) Delivery. To the extent any notices, financial information or
other information required to be delivered hereunder is due on a day that is not a
Business Day, such information shall be required to be delivered on the immediately
next succeeding Business Day thereafter.”

     SECTION II. CONDITIONS TO EFFECTIVENESS

          This Amendment shall become effective as of the date hereof only upon the satisfaction of all
of the following conditions precedent (the date of satisfaction of such conditions being referred
to herein as the “First Amendment Effective Date”):

          A. Execution. The Administrative Agent shall have received (i) a counterpart signature
page of this Amendment duly executed by each of the Credit Parties and (ii) consent and
authorization (in a duly executed reply form) from the Requisite Lenders to execute this Amendment
on their behalf.

          B. Necessary Consents. Each Credit Party shall have obtained all material consents
necessary or advisable in connection with the transactions contemplated by this Amendment.

          C. Other Documents. The Administrative Agent and the Lenders shall have received such
other documents, information or agreements regarding the Credit Parties as the Administrative Agent
or the Collateral Agent may reasonably request.

     SECTION III. REPRESENTATIONS AND WARRANTIES

          In order to induce Lenders to enter into this Amendment and to amend the Credit Agreement in
the manner provided herein, each Credit Party which is a party hereto represents

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and warrants to each Lender that the following statements are true and correct in all material
respects:

          A. Corporate Power and Authority. Each Credit Party, which is party hereto, has all
requisite power and authority to enter into this Amendment and to carry out the transactions
contemplated by, and perform its obligations under, the Credit Agreement as amended by this
Amendment (the “Amended Agreement”) and the other Credit Documents.

          B. Authorization of Agreements. The execution and delivery of this Amendment and the
performance of the Amended Agreement and the other Credit Documents have been duly authorized by
all necessary action on the part of each Credit Party that is a party thereto.

          C. No Conflict. The execution and delivery by each Credit Party of this Amendment and the
performance by each Credit Party of the Amended Agreement and the other Credit Documents do not and
will not (i) violate (A) any provision of any law, statute, rule or regulation applicable to each
Credit Party, or of the certificate or articles of incorporation or partnership agreement, other
constitutive documents or by-laws of the Borrower or any Credit Party or (B) any applicable order
of any court or order of any Governmental Authority binding on any Credit Party, (ii) be in
conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both)
a default under any Contractual Obligation of the applicable Credit Party, where any such conflict,
violation, breach or default referred to in clause (i) or (ii) of this Section III.C., individually
or in the aggregate could reasonably be expected to have a Material Adverse Effect, (iii) except as
permitted under the Amended Agreement, result in or require the creation or imposition of any Lien
upon any of the properties or assets of each Credit Party (other than any Liens created under any
of the Credit Documents in favor of Administrative Agent on behalf of Lenders), or (iv) require any
approval of stockholders or partners or any approval or consent of any Person under any Contractual
Obligation of each Credit Party, except for such approvals or consents which will be obtained on or
before the First Amendment Effective Date and except for any such approvals or consents the failure
of which to obtain will not have a Material Adverse Effect.

          D. Governmental Consents. No action, consent or approval of, registration or filing with
or any other action by any Governmental Authority is or will be required in connection with the
execution and delivery by each Credit Party of this Amendment and the performance by the Borrower
and H3C of the Amended Agreement and the other Credit Documents, except for such actions, consents
and approvals the failure to obtain or make which could not reasonably be expected to result in a
Material Adverse Effect or which have been obtained and are in full force and effect.

          E. Binding Obligation. This Amendment and the Amended Agreement have been duly executed
and delivered by each of the Credit Parties party thereto and each constitutes a legal, valid and
binding obligation of such Credit Party to the extent a party thereto, enforceable against such
Credit Party in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, moratorium, reorganization or other similar laws affecting creditors’ rights generally
and except as enforceability may be limited by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

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          F. Incorporation of Representations and Warranties from Credit Agreement. The
representations and warranties contained in Section 4 of the Amended Agreement are and will be true
and correct in all material respects on and as of the First Amendment Effective Date (after giving
effect to the amendments and waivers contained herein) to the same extent as though made on and as
of that date, except to the extent such representations and warranties specifically relate to an
earlier date, in which case they were true and correct in all material respects on and as of such
earlier date.

          G. Absence of Default. No event has occurred and is continuing (after giving effect to
the amendments and waivers contained herein) or will result from the consummation of the
transactions contemplated by this Amendment that would constitute an Event of Default or a Default.

     SECTION IV. ACKNOWLEDGMENT AND CONSENT

          Each Guarantor hereby acknowledges that it has reviewed the terms and provisions of the Credit
Agreement and this Amendment and consents to the amendment of the Credit Agreement effected
pursuant to this Amendment. Each Guarantor hereby confirms that each Credit Document to which it
is a party or otherwise bound and all Collateral encumbered thereby will continue to guarantee or
secure, as the case may be, to the fullest extent possible in accordance with the Credit Documents
the payment and performance of all “Obligations” under each of the Credit Documents to which is a
party (in each case as such terms are defined in the applicable Credit Document).

          Each Guarantor acknowledges and agrees that any of the Credit Documents to which it is a party
or otherwise bound shall continue in full force and effect and that all of its obligations
thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or
effectiveness of this Amendment. Each Guarantor represents and warrants that all representations
and warranties contained in the Amended Agreement and the Credit Documents to which it is a party
or otherwise bound are true and correct in all material respects on and as of the First Amendment
Effective Date to the same extent as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in which case they were true
and correct in all material respects on and as of such earlier date.

          Each Guarantor acknowledges and agrees that (i) notwithstanding the conditions to
effectiveness set forth in this Amendment, such Guarantor is not required by the terms of the
Credit Agreement or any other Credit Document to consent to the amendments to the Credit Agreement
effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any
other Credit Document shall be deemed to require the consent of such Guarantor to any future
amendments to the Credit Agreement.

     SECTION V. MISCELLANEOUS

          A. Reference to and Effect on the Credit Agreement and the Other Credit Documents.

     (i) On and after the First Amendment Effective Date, each reference in the
Credit Agreement to “this Amendment”, “hereunder”, “hereof”, “herein” or

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words of like import referring to the Credit Agreement, and each reference in
the other Credit Documents to the “Credit Agreement”, “thereunder”, “thereof” or
words of like import referring to the Credit Agreement shall mean and be a reference
to the Credit Agreement as amended by this Amendment.

     (ii) Except as specifically amended by this Amendment, the Credit Agreement
and the other Credit Documents shall remain in full force and effect and are hereby
ratified and confirmed.

     (iii) The execution, delivery and performance of this Amendment shall not
constitute a waiver of any provision of, or operate as a waiver of any right, power
or remedy of any Agent or Lender under, the Credit Agreement or any of the other
Credit Documents.

          B. Headings. Section and Subsection headings in this Amendment are included
herein for convenience of reference only and shall not constitute a part of this Amendment for any
other purpose or be given any substantive effect.

          C. Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

          D. Counterparts. This Amendment may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to the same document.

[Remainder of this page intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered
by their respective officers thereunto duly authorized as of the date first written above.

	 	 	 	 	 
	BORROWER: 	H3C HOLDINGS LIMITED

 	 
	 	By:  	/s/ Jay Zager
 	 
	 	 	Name:  	Jay Zager 	 
	 	 	Title:  	Director 	 
	 
	GUARANTORS: 	H3C TECHNOLOGIES CO., LIMITED

 	 
	 	By:  	/s/ Jay Zager
 	 
	 	 	Name:  	Jay Zager 	 
	 	 	Title:  	Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GOLDMAN SACHS CREDIT PARTNERS L.P.,

As Administrative Agent and as a Lender

 	 
	 	By:  	/s/ Jessica Widdowson
 	 
	 	 	Authorized Signatoryexv10w3

     Exhibit 10.3

3COM CORPORATION

STAND ALONE STOCK OPTION AGREEMENT

     3Com Corporation has granted Eileen Nelson (the “Participant”) an Option to purchase
certain Shares in accordance with the Participant’s offer letter dated May 20, 2008 — Revised
(“Offer Letter”), subject to the following terms and conditions as set forth in this Award
Agreement. The “Effective Date” of this Award Agreement shall be June 3, 2008.

     1. Definitions. As used herein, the following definitions shall apply:

          (a) “Administrator” means the Board or any of its Committees as shall be administering
the Award.

          (b) “Applicable Laws” means the requirements relating to the administration of stock
option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any
stock exchange or quotation system on which the Common Stock is listed or quoted and any other
applicable laws.

          (c) “Award” means, individually or collectively, the grant of an Option under the
Award Agreement.

          (d) “Award Agreement” means this stand alone stock option agreement between the
Company and the Participant evidencing the terms and conditions of this Award.

          (e) “Board” means the Board of Directors of 3Com Corporation.

          (f) “Change of Control” shall have the meaning ascribed thereto (or to any similar
definition such as “Change in Control”) in the Management Retention Agreement between the Company
and the Participant effective as of May 20, 2008, as amended from time to time.

          (g) “Code” means the U.S. Internal Revenue Code of 1986, as amended.

          (h) “Committee” means a committee, which may consist of one or more persons whom may
or may not be Board members, as is consistent with the Applicable Laws, appointed by the Board.

          (i) “Common Stock” means the common stock of the Company.

          (j) “Company” shall mean 3Com Corporation and any successor corporation thereto.

          (k) “Consultant” means any person, including an advisor, engaged by the Company or a
Parent or Subsidiary as an independent contractor to render services to such entity.

          (l) “Date of Option Grant” shall mean the “Date of Grant” as set forth in the Notice
of Grant.

          (m) “Director” means a member 3Com’s Board of Directors.

          (n) “Disability” shall have the meaning ascribed thereto in the Management Retention
Agreement between the Company and the Participant effective as of May 20, 2008, as amended from
time to time.

          (o) “Employee” means any person, including Officers and Directors, employed by the
Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company or any leave for which a
return to employment is guaranteed under Applicable Laws, or (ii) transfers between locations of
the

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Company or between the Company, its Parent, any Subsidiary, or any successor. Neither service
as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute
“employment” by the Company.

          (p) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (q) “Initial Vesting Date” shall be the date occurring one (1) year after the Date of
Option Grant.

          (r) “Nonstatutory Stock Option” means any Option not intended to qualify as an
Incentive Stock Option within the meaning of Section 422 of the Code and the regulations
promulgated thereunder.

          (s) “Notice of Grant” shall mean the “NOTICE OF GRANT OF STOCK OPTION”. The Notice of
Grant is part of this Award Agreement.

          (t) “Number of Option Shares” shall mean the “Total Number of Option Shares Granted”
as set forth in the Notice of Grant.

          (u) “Officer” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

          (v) “Option” means this option to purchase Shares of Common Stock granted pursuant to
this Award Agreement.

          (w) “Optioned Stock” means the Common Stock subject to the Option.

          (x) “Option Termination Date” shall mean the date occurring seven (7) years after the
Date of Option Grant.

          (y) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

          (z) “Person” shall have the meaning ascribed to such term under Sections 13(d) and
14(d) of the Exchange Act.

          (aa) “Service Provider” means an Employee, Director or Consultant.

          (bb) “Share” means a share of the Common Stock, as adjusted in accordance with Section
10 of the Agreement.

          (cc) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing,
as defined in Section 424(f) of the Code and also include partnerships, limited liability companies
and other entities that are at least 30% owned by the Company.

          (dd)“Vested Ratio” means:

	 	 	 	 	 
	 	 	Vested Ratio	 
	 
	Prior to Initial Vesting Date
	 	 	0	 
	 
	On Initial Vesting Date, for each full year of the Participant’s remaining a Service
Provider from the Date of Option Grant until the Initial Vesting Date
	 	 	1/4	 
	 
	Plus
	 	 	 	 
	 
	For each subsequent full year thereafter of the Participant’s remaining a Service
Provider from the Initial Vesting Date
	 	 	1/4	 
	 
	In no event shall the Vested Ratio exceed 1/1.

	 	 	 	 

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     Notwithstanding the foregoing, the Participant shall receive accelerated vesting with respect
to all or a portion of the Participant’s then outstanding unvested portion of the Award, subject to
the terms and conditions specified in the Management Retention Agreement (“MRA”) and the
Severance Benefits Agreement (“SBA”), as the same may be amended from time to time, each by
and between the Company and the Participant effective May 20, 2008.

     2. Grant of Option. The Administrator hereby grants to the Participant the Option to
purchase the number of Shares set forth in the Notice of Grant, at the exercise price per Share set
forth in the Notice of Grant, subject to the provisions of this Award Agreement and the Notice of
Grant, which is incorporated herein by reference. The Option referenced herein are not intended to
qualify as Incentive Stock Options as defined in Section 422 of the Code and shall be treated as a
Nonstatutory Stock Option. The term of each Option shall be stated in the Notice of Grant and
shall be seven (7) years from the Date of Grant.

     3. Exercise of the Option.

          (a) Right to Exercise. The Option shall be exercisable during its terms in accordance
with the Notice of Grant and this Award Agreement and at such times and under such conditions as
determined by the Administrator. The Option shall first become exercisable on the Initial Vesting
Date. Each Option shall be exercisable on and after the Initial Vesting Date and prior to the
termination of the Option in the amount equal to the Number of Option Shares multiplied by the
Vested Ratio as set forth in Section 1(dd) above less the number of Shares previously acquired upon
exercise of the Option. In no event shall an Option be exercisable for more Shares than the Number
of Option Shares. Exercising an Option in any manner approved hereunder shall decrease the number
of Shares thereafter available for sale under the Option by the number of Shares as to which the
Option is exercised.

          (b) Method of Exercise. Each Option shall be exercisable by written or electronic
notice to the Company which shall state the election to exercise the Option, the number of Shares
being exercised, and such other representations and agreements as to the Participant’s investment
intent with respect to the Shares as may be required pursuant to the provisions of this Award
Agreement. Such notice shall be signed by the Participant or person entitled to exercise the
Option and shall be delivered to the Company’s Stock Administration Department, or other authorized
representative of the Company, prior to the termination of the Option as set forth in Section 5
below, accompanied by full payment of the option price for the number of Shares being purchased.

          (c) Form of Payment of Option Price. Subject to the Applicable Laws, such payment
shall be made (1) in cash, by check, or cash equivalent, (2) by tender of Shares of the Company’s
stock owned by the Participant and having a fair market value not less than the option price, which
(i) either have been owned by the Participant for more than six (6) months or were not acquired,
directly or indirectly from the Company, and (ii) have a fair market value not less than the
option price, (3) proceeds from a broker-assisted cashless exercise program acceptable to the
Company, in its sole discretion, or (4) by any combination of the foregoing.

          (d) Withholding. At the time the Option is exercised, in whole or in part, or at any
time thereafter as determined by the Company, the Company shall have the right to withhold the

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applicable minimum withholding taxes, including but not limited to federal tax, state tax, foreign
taxes, or social taxes, if any, which arise in connection with the Option including, without
limitation, obligations arising upon (i) the exercise of the Option in whole or in part, (ii) the
transfer, in whole or in part, of any Shares acquired on exercise of the Option, or (iii) the
lapsing of any restriction with respect to any Shares acquired on exercise of the Option. The
Participant shall make adequate provision for the Company to meet its minimum withholding
obligations.

          (e) Certificate Registration. The Shares as to which an Option shall be exercised
shall be issued in the the name of the Participant, the heirs of the Participant (if applicable),
or, if requested in writing by the Participant, in the name of the Participant and his or her
spouse. If payment of the option price is accomplished using a broker-assisted cashless exercise
program acceptable to the Company, in its sole discretion, the certificate or certificates may, at
the Company’s sole discretion be registered in the name of a nominee who is an authorized broker
for the Company’s same-day sale program. Until the Shares are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall
issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment
will be made for a dividend or other right for which the record date is prior to the date the
Shares are issued, except as provided in Section 10 herein.

          (f) Restriction on Grant of Option and Issuance of Shares. The grant of the Option
and the issuance of Shares pursuant to the Option shall be subject to compliance with all
Applicable Laws. The Option may not be exercised if the issuance of Shares upon such exercise
would constitute a violation of any Applicable Laws. In addition, no Option may be exercised
unless (i) a registration statement under the Securities Act of 1933, as amended, shall at the time
of exercise of any Option be in effect with respect to the Shares issuable upon exercise of the
Option, or (ii) in the opinion of legal counsel to the Company, the Shares issuable upon exercise
of any Option may be issued in accordance with the terms of an applicable exemption from the
registration requirements of said Act. As a condition to the exercise of any Option, the Company
may require the Participant to satisfy any qualifications that may be necessary or appropriate, to
evidence compliance with any Applicable Laws and to make any representation or warranty with
respect thereto as may be requested by the Company.

          (g) Fractional Shares. The Company shall not be required to issue fractional Shares
upon the exercise of the Option.

          (h) Survival of Award Agreement Provisions. To the extent contemplated herein, the
provisions of this Award Agreement shall survive any exercise of the Option and shall remain in
full force and effect.

     4. Non-Transferability of the Option. The Option may not be sold, pledged, assigned,
hypotencated, transferred or disposed of in any manner other than by will or by the laws of descent
or distribution and may be exercised, during the lifetime of the Participant, only by the
Participant. The
terms of this Award Agreement shall be binding upon the executors, administrators, heirs,
successors and assignees of the Participant.

     5. Termination of the Option. The Option shall terminate and may no longer be
exercised on the first to occur of (i) the Option Termination Date as defined above, (ii) the last
date for exercising the Option following termination as a Service Provider as described herein, or
as otherwise set forth in this Award Agreement.

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     6. Termination of the Participant’s Relationship as a Service Provider.

          (a) Termination of the Option. If the Participant ceases to be a Service Provider for
any reason except by reason of death or Disability, the Option, to the extent unexercised and
exercisable by the Participant on the date on which the Participant ceased to be a Service
Provider, may be exercised by the Participant within three (3) months after the date on which the
Participant’s relationship as a Service Provider terminates, but in any event no later than the
Option Termination Date. If the Participant’s Service Provider relationship is terminated because
of the death of the Participant or Disability of the Participant, the Option, to the extent
unexercised and exercisable by the Participant on the date on which the Participant ceased to be a
Service Provider, may be exercised by the Participant (or the Participant’s estate or legal
representative) at any time prior to the expiration of twelve (12) months from the date of such
termination, but in any event no later than the Option Termination Date. The Participant’s Service
Provider relationship shall be deemed to have terminated on account of death if the Participant
dies within three (3) months after the Participant’s termination of the Service Provider
relationship.

          (b) Disability of Optionee. If an Optionee ceases to be a Service Provider as a
result of the Optionee’s Disability, the Optionee may exercise his or her Option for twelve (12)
months following such termination (but in any event no later than the Option Termination Date) and
solely to the extent the Option is vested and exercisable on the date of termination. If, on the
date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

          (c) Extension of Option Exercise Period. Notwithstanding the above, in the event that
the Participant’s employment is terminated by the Company or by the Participant solely under the
specified and limited circumstances specified in the SBA and/or the MRA, as applicable, the Option,
to the extent unexercised and exercisable by the Participant on the date of the Participant’s
termination, may be exercised by the Participant until the earlier of (i) 165 calendar days after
the Participant’s date of termination or (ii) the Option Termination Date, provided that the
Participant complies with all of the terms and conditions set forth in the applicable SBA and/or
MRA.

          (d) Change in Status. Notwithstanding the above, in the event of the Participant’s
change in status from Consultant, Employee or Director to Employee, Consultant or Director (e.g.,
an Employee becoming a Consultant), the Participant’s’s status as a Service Provider shall continue
notwithstanding the change in status.

          (e) Exercise Prevented by Applicable Laws. Except as provided in this Section 6, the
Option shall terminate and may not be exercised after the Participant’s Service Provider
relationship terminates unless the exercise of the Option in accordance with this Section 6 would
constitute a
violation of any Applicable Laws. If the exercise of the Option is so prevented, the Option
shall remain exercisable until three (3) months after the date the Participant is notified by the
Company or its Parent or Subsidiary for whom the Participant provides service that the Option is
exercisable but in no event later than the Option Termination Date.

     7. Leaves of Absence. Unless the Administrator provides otherwise or as otherwise
required by Applicable Laws, the Option shall cease to vest on the 91st day of any
unpaid leave of absence and shall only recommence upon the Participant’s return to active service.

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     8. Rights as a Shareholder or Employee. The Participant shall have no rights as a
stockholder with respect to any Shares until the date of the issuance of a certificate or
certificates (or other appropriate method of delivery, in the Company’s discretion) for the Shares
for which the Option has been exercised. No adjustment shall be made for dividends or
distributions or other rights for which the record date is prior to the date such stock is so
issued.

     9. No Guarantee of Continued Service. THE PARTICIPANT ACKNOWLEDGES AND AGREES THAT
THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS AN
EMPLOYEE OR OTHER SERVICE PROVIDER AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED,
BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER). THE PARTICIPANT FURTHER ACKNOWLEDGES AND
AGREES THAT THIS AWARD AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE
SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN
EMPLOYEE OR OTHER SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT
INTERFERE IN ANY WAY WITH THE PARTICIPANT’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE THE
PARTICIPANT’S RELATIONSHIP AS AN EMPLOYEE OR OTHER SERVICE PROVIDER OF THE COMPANY AT ANY TIME,
WITH OR WITHOUT CAUSE OR NOTICE.

     10. Adjustments Upon Changes in Capitalization, Dissolution, Liquidation or
Change of Control.

          (a) Changes in Capitalization. Subject to any required action by the stockholders of
the Company, the number of shares of Common Stock covered by each outstanding Award, as well as the
price per share of Common Stock covered by each such outstanding Award, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from
a stock split, reverse stock split, stock dividend, combination or reclassification of the Common
Stock, or any other increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Administrator, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance
by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock subject to an Award.

          (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify the Participant as soon as practicable
prior to the effective date of such proposed transaction. The Administrator in its discretion may
provide for the Participant to have the right to exercise his or her Award until ten (10) days
prior to such transaction as to all of the stock covered thereby, including Shares as to which the
Award would not otherwise be vested or exercisable. To the extent it has not been previously
exercised, an Award will terminate immediately prior to the consummation of such proposed action.

 6 

 

          (c) Change of Control. In the event of a Change of Control, each outstanding Option
shall be assumed or an equivalent option substituted by the successor corporation or a Parent or
subsidiary of the successor corporation. In the event that the successor corporation refuses to
assume or substitute for the Option, the Participant shall fully vest in and have the right to
exercise the Option as to all of the Optioned Stock, including Shares as to which it would not
otherwise be vested or exercisable. If the Option becomes fully vested and exercisable in lieu of
assumption or substitution in the event of a Change of Control, the Administrator shall notify the
Participant in writing or electronically that the Option shall be fully vested and exercisable for
a period of fifteen (15) days from the date of such notice, and the Option shall terminate upon the
expiration of such period. For the purposes of this paragraph, an Option shall be considered
assumed if, following the Change of Control, the Option confers the right to purchase or receive,
for each Share of Optioned Stock subject to the Option immediately prior to the Change of Control,
the consideration (whether stock, cash, or other securities or property) received in the Change of
Control by holders of Common Stock for each Share held on the effective date of the transaction
(and if holders were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares); provided, however, that if such consideration
received in the Change of Control is not solely common stock of the successor corporation or its
Parent, the Administrator may, with the consent of the successor corporation, provide for the
consideration to be received upon the exercise of any Option, for each Share of Optioned Stock
subject to the Option, to be solely common stock of the successor corporation or its Parent equal
in fair market value to the per share consideration received by holders of Common Stock in the
Change of Control.

     11. Conditions Upon Issuance of Shares.

          (a) Legal Compliance. Shares shall not be issued pursuant to the exercise or vesting
of an Award unless the exercise or vesting of such Award and the issuance and delivery of such
Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel
for the Company with respect to such compliance.

          (b) Investment Representations. As a condition to the exercise of an Award, the
Company may require the Participant or any authorized person exercising such Award to represent and
warrant at the time of any such exercise that the Shares are being purchased only for investment
and without any present intention to sell or distribute such Shares if, in the opinion of counsel
for the Company, such a representation is required.

          (c) Inability to Obtain Authority. The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

     12. Legends. The Company may at any time place legends referencing any applicable
federal and/or state securities restrictions on all certificates representing shares of stock
subject to the
provisions of this Award Agreement. The Participant shall, at the request of the Company,
promptly present to the Company any and all certificates representing Shares acquired pursuant to
the Option in the possession of the Participant in order to effectuate the provisions of this
Section 12.

     13. Binding Effect. This Award Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors, administrators, successors and
assigns.

 7 

 

     14. Amendment or Termination. The Administrator may at any time amend, alter, suspend
or terminate the Agreement; provided, however, that no such amendment, alteration, suspension or
termination may adversely affect the Option or any unexercised portion hereof without the written
consent of the Participant. Termination of the Agreement shall not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to Awards granted under the
Agreement prior to the date of such termination.

     15. Entire Agreement; Applicable Law. This Award Agreement, along with the
Participant’s Offer Letter and the referenced SBA and MRA, constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and the Participant with respect to the subject matter
hereof. This Award 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 its conflict
of laws rules.

     16. Notices. Any notice to be given to the Company hereunder shall be in writing and
shall be addressed to the Company at its then current principal executive office or to such other
address as the Company may hereafter designate to the Participant. Any notice to be given to the
Participant hereunder shall be addressed to the Participant at the last address known to the
Company, or at such other address as the Participant may hereafter designate to the Company. A
notice shall be deemed to have been duly given when personally delivered or mailed by registered or
certified mail to the party entitled to receive it.

 8 

 

	 	 	 
	PARTICIPANT

	 	3COM CORPORATION
	 
	 	 
	 
	 	 
	 

	 	 
	Eileen Nelson 

SVP, Human Relations

	 	Neal D. Goldman

Executive Vice President and Chief Legal and

Administrative Officer
	 
	 	 
	 
	 	 
	 

	 	 
	Date

	 	Date

 9

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