Document:

exhibit10-2.htm

    Exhibit
10.2

    

    

    Description
of Mr. Talwalkar's Housing Allowance

    

    

    Through May 23, 2009, Mr. Talwalkar
will receive a $5,000 per month housing allowance plus an amount equal to any
income and employment taxes due as a result of the housing
allowance.exhibit10-3.htm

    Exhibit
10.3

    

 

    

    

    LSI
Corporation

    Severance
Policy For Executive Officers

    

    Effective
June 1, 2008

    

    

    Administration.  This
Severance Policy (the “Policy”) for employees who
from time to time comprise the executive leadership team
(“Executive Officers”)
of the Company became effective June 1, 2008 (the “Effective Date”) following
approval by the Compensation Committee (the “Committee”) of the Board of
Directors (the “Board”)
of LSI Corporation (the “Company”) and may be amended,
revised, revoked or terminated at the Board’s or Committee’s discretion. The
Committee may take such action as is necessary to interpret, implement and
administer this Plan.

    

    Eligibility. This Policy
applies to Executive Officers of the Company (“Participants”) and supersedes
and replaces all other policies and plans with respect to severance; provided, however, that Participants
who are covered under a contractual severance arrangement that ends after the
Effective Date shall continue to be covered by such separate arrangement until
the expiration of that contract.

    

    Qualifying
Separation.  A Participant will be deemed to have incurred a
“Qualifying Separation”
for purposes of this Policy if he or she (1) is involuntarily terminated
without Cause or following a CIC (as defined below) terminates his or her
employment for Good Reason (as defined below); and (2) executes a
separation agreement, including a full release of claims, non-compete,
non-solicitation and non-disparagement for the term of the severance period, in
a form satisfactory to the Company, within 45 days following termination of
employment.

    

    Cause. For purposes of this
Policy, “Cause” shall
mean a Participant’s:

     

    
      	
              §  

            	
              material
      neglect (other than as a result of illness or disability) of his or her
      duties or responsibilities to the Company;
or

            

    

    

    
      	
              §  

            	
              conduct
      (including action or failure to act) that is not in the best interest of,
      or is injurious to, the Company.

            

    

     

    The
determination of whether or not a Participant shall be deemed to have engaged in
conduct constituting Cause under this Policy shall be made by the members of the
Committee in their sole and absolute discretion.

    

    A
Qualifying Separation shall specifically exclude termination of employment due
to Cause, death or disability or termination by a Participant (other than a
termination for Good Reason following a Change-in-Control (as defined pursuant
to Section 409A of the Internal Revenue Code, a “CIC”)).

    

    Good Reason. For purposes of
this Policy, “Good
Reason”, means any of the following actions following a CIC, without the
Participant’s written consent:

    
      
         

      

      
        Page 1 of
3

        
          

        

      

      
         

      

    

    
      	
              §  

            	
              a
      material reduction of a Participant’s duties or responsibilities, relative
      to the Participant’s duties or responsibilities as in effect immediately
      prior to such reduction, or the assignment to a Participant of such
      reduced duties or responsibilities;

            

    

    

    
      	
              §  

            	
              a
      material reduction in a Participant’s base salary as in effect immediately
      prior to such reduction; or

            

    

    

    
      	
              §  

            	
              a
      material relocation of a Participant’s principal office to a facility or a
      location; provided that a relocation of less than fifty (50) miles from a
      Participant’s then present office location will not be deemed
      material.

            

    

    

    In
addition to meeting the definition of Good Reason above, in order for a
termination to be for Good Reason (A) the Participant must assert any
termination for Good Reason by written notice to the Company within three (3)
months of the initial existence of the condition or event that constitutes Good
Reason, (B) the Participant must provide notice to the Company of the condition
or event that constitutes Good Reason within 30 days of its occurrence and (C)
the Company shall have been given a period of no less than 30 days to remedy the
event or condition that constitutes Good Reason and have failed to do
so.

    

    Severance Benefit – No CIC.
Participants are eligible for the following severance benefits in the event of a
Qualifying Separation that is not, in the case of the President and Chief
Executive Officer, preceded by a CIC within 18 months of such Qualifying
Separation, and in the case of all other Participants, that is not preceded by a
CIC within 12 months of such Qualifying Separation:

    

    Cash
Payment

    

    
      	
              §  

            	
              For
      the President and Chief Executive Officer, a lump sum severance payment in
      an amount equal, before taxes and other withholdings, to 1.5 times the sum
      of (i) his or her annual base salary as in effect immediately before
      termination of employment (“Base Salary”) and
      (ii) average annualized cash bonus under the applicable short-term
      bonus plan for three years’ worth of performance periods ending with the
      performance period most recently ended prior to termination of
      employment (“Average
      Bonus”);

            

    

    

    
      	
              §  

            	
              For
      all other Participants, a lump sum severance payment in an amount equal,
      before taxes and other withholdings, to 1 times his or her Base
      Salary.

            

    

    

    Equity
Awards

    

    
      	
              §  

            	
              For
      the President and Chief Executive Officer, 18 months accelerated vesting
      of then outstanding, unvested equity awards with any such awards that have
      annual time-based installment vesting instead deemed to vest (for this
      purpose only) in monthly installments at the same overall rate and with
      such vesting acceleration to be measured beginning from the day
      immediately following the immediately preceding annual vesting
      date.

            

    

    

    Other
Benefits

    

    
      	
              §  

            	
              For
      the President and Chief Executive Officer, reimbursement for the Company’s
      share of COBRA premiums paid for continued health benefits under the
      Company’s health plans for
18 months.

            

    

    

    
      
        
        

      

      
        Page 2 of
3

        
          

        

      

      
        
        

      

    

    
      	
              §  

            	
              For
      all other Participants, reimbursement for the Company’s share of COBRA
      premiums paid for continued health benefits under the Company’s health
      plans for 12 months.

            

    

    

    Severance Benefit – CIC.
Participants are eligible for the following severance benefits in the event of a
Qualifying Separation that is, in the case of the President and Chief Executive
Officer, preceded by a CIC within 18 months of such Qualifying Separation, and
in the case of all other Participants, that is preceded by a CIC within 12
months of such Qualifying Separation:

    

    Cash
Payment

    

    
      	
               
      

            	
              •
       

            	
              For
      the President and Chief Executive Officer, a lump sum severance payment in
      an amount equal, before taxes and other withholdings, to 2.75 times the
      sum of (i) his or her Base Salary and (ii) Average
      Bonus;

            

    

     

    
      	
               
      

            	
              • 

            	
              For
      all other Participants, a lump sum severance payment in an amount equal,
      before taxes and other withholdings, to 2 times the sum of (i) his or
      her Base Salary and (ii) Average
Bonus.

            

    

    

    
      	
               
      

            	
              Equity
      Awards

            

    

    

    
      	
              §  

            	
              For
      all Participants, full accelerated vesting of all of his or her then
      outstanding, unvested equity
awards.

            

    

    

    Tax
Gross-Up

    

    
      	
              §  

            	
              In
      the event that a Participant’s "parachute payments" are
      subject to the excise tax imposed by Section 4999 of the Internal Revenue
      Code, then the Company shall make a supplemental payment to the
      Participant in an amount that equals the excise tax on the parachute
      payments, plus any additional excise tax and federal, state and local and
      employment income taxes, on such supplemental payment.  However,
      the total supplemental payment shall not exceed the sum of the
      Participant’s (i) Base Salary immediately prior to the CIC, and (ii)
      target bonus for the year in which the CIC
  occurs.

            

    

    

    Other
Benefits

    

    
      	
              §  

            	
              For
      the President and Chief Executive Officer, reimbursement for COBRA
      premiums paid for continued health benefits under the Company’s health
      plans for 18 months.

            

    

    

    
      	
              §  

            	
              For
      all other Participants, reimbursement for COBRA premiums paid for
      continued health benefits under the Company’s health plans for
      18 months.

            

    

    

    Timing of
Payments.  Any payments hereunder shall be made immediately
following a Participant’s Qualifying Separation, and in no case later than March
15th of the year following the year after which the Qualifying Separation
occurred such that any such payment shall come within the "short term deferral" rule of
Section 409A of the Internal Revenue Code.

    

    Effect on Other Benefits/At Will
Status.  All other compensation and benefits shall be governed
by the applicable Company plan or agreement.  This Policy is not intended
to, and does not, create an employment relationship for any fixed
term.

    

    
      
         

      

      
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