Document:

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                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "AGREEMENT") is made and entered into as
of May 1, 2002, by and between Enterasys Networks, Inc., a Delaware corporation
(the "Company"), and Yuda Doron (the "Executive").

         1.       Term of Employment; Executive Representation.

                  (a)      Employment Term. Executive shall be employed by the
Company in the capacity described in Section 2 of this Agreement for a term
commencing on May 1, 2002 (the "Effective Date") and ending December 31, 2002.

                  (b)      Executive Representation. Executive hereby represents
to the Company that the execution and delivery of this Agreement by Executive
and the performance by Executive of his duties hereunder shall not constitute a
breach of, or otherwise contravene, the terms of any statute, law, regulation,
or of any employment agreement or other agreement or policy to which Executive
is a party or otherwise bound. Executive further agrees and represents that he
will duly, punctually and faithfully perform and observe any and all rules and
regulations that the Company may now or shall hereafter establish governing the
conduct of its business and/or the performance of Executive's duties hereunder.

         2.       Position.

                  (a)      While employed hereunder, Executive shall serve as
the Company's President and shall report directly to the Company's Interim Chief
Executive Officer (the "CEO"). In such position, Executive shall have such
authority as is customarily associated with the position of President at other
publicly held companies similar to the Company and shall have such duties,
consistent with his position, as may be assigned from time to time by the CEO.

                  (b)      While employed hereunder, Executive will devote
Executive's full business time and best efforts to the performance of
Executive's duties hereunder and will not engage, either directly or indirectly,
in any other business, profession or occupation for compensation or otherwise
that would conflict with the rendering of such services, without the prior
written consent of the Company. Executive may be an outside board member for
other companies that do not compete with the Company, its subsidiaries and/or
affiliates, provided that such services do not interfere with Executive's
responsibilities to the Company, with the prior written approval of the Company,
which shall be in the Company's sole discretion, provided that approval shall
not be unreasonably withheld.

         3.       Base Salary. While employed hereunder, the Company shall pay
Executive a base salary (the "Base Salary") at the monthly rate of $80,000,
payable in regular installments in accordance with the Company's usual payment
practices. Executive shall be entitled to such increases in Executive's Base
Salary, if any, as may be determined from time to time by the Board. In the
event that Executive remains employed by Company beyond the first
<PAGE>
anniversary of the Effective Date, Executive's basic compensation structure will
be adjusted to be competitive with overall compensation packages for the office
of President at comparable publicly traded companies, which may include a change
in Executive's annualized base salary and which likely would include an annual
cash incentive bonus and/or a sales commission plan.

         4.       Equity Arrangements. Within thirty (30) days following the
Effective Date, Executive shall be granted a stock option (the "Option") to
purchase 400,000 shares of the Company's Common Stock ("Common Stock"). Except
as otherwise provided herein, the Option shall in all respects be subject to
terms and conditions substantially similar to the Company's 1998 Equity
Incentive Plan. The per share exercise price of the Option shall be equal to the
fair market value of a share of Common Stock on the grant date of the Option. At
such time as the Company is eligible to utilize Form S-8, it will use its best
efforts to file and cause to become effect a registration statement on Form S-8
to register shares issuable upon exercise of the Options.

    The Option shall vest and become exercisable in twelve (12) equal monthly
installments, beginning upon the last day of May, 2002 and in equal monthly
installments over the succeeding ten (10) months of continued service with the
Company. The vesting and exercisability of the Option shall be accelerated in
the following circumstances:

                  (a)      If for any of the Company's last three fiscal
quarters of the Company's 2002 fiscal year the Company achieves its Revenue
target for such quarter as set forth in the Enterasys Performance Incentive
Plan, the Option shall vest as to 80,000 shares as of the last day of such
quarter and any portion of the option so vested shall become exercisable upon
the determination by the Board of Directors of the Company (in their sole
discretion) that the Company has achieved the applicable Revenue target. For the
avoidance of doubt, the maximum possible cumulative acceleration pursuant to the
immediately preceding sentence is 240,000 shares. For purposes of this
Paragraph, "Revenue" shall have the meaning set forth in the Enterasys
Performance Incentive Plan, a copy of which is attached hereto as Exhibit A, and
"Revenue Target" shall mean the revenue target for the period in question as set
forth in the Fiscal Year 2002 Addendum dated June, 2002 to the Enterasys
Performance Incentive Plan, a copy of which is attached hereto as Exhibit B.

                  (b)      The Option shall become vested as to 64,000 shares if
the Company achieves break-even or positive Cash Flow from Operations in any of
the last three quarters of its 2002 fiscal year and any portion of the option so
vested shall become exercisable upon the determination by the Board of Directors
of the Company (in their sole discretion) that the Company has achieved such
Cash Flow from Operations target. For purposes of the foregoing sentence, "Cash
Flow from Operations" shall have the meaning set forth in the Enterasys
Performance Incentive Plan attached hereto as Exhibit A.

                  (c)      The Option shall become vested as to 56,000 shares if
the Company achieves break-even or positive Operating Income in any of the last
three quarters of the Company's 2002 fiscal year and any portion of the option
so vested shall become exercisable upon the determination by the Board of
Directors of the Company, or by the Audit Committee thereof, (in their sole
discretion) that the Company has achieved such Operating Income target.
<PAGE>
For purposes of the foregoing sentence, "Operating Income" shall have the
meaning set forth in the Enterasys Performance Incentive Plan attached hereto as
Exhibit A.

                  (d)      The shares, if any, as to which the Option vests on
an accelerated basis pursuant to subsections (a), (b) or (c) above shall be
those as to which the Option otherwise would have vested last in time based upon
continued service to the Company.

                  (e)      Notwithstanding the foregoing, the Option shall
immediately vest and become exercisable in the event of a Change in Control (as
defined below). No more than a total of 400,000 shares may become vested under
the Option.

         The scheduled term of the Option shall be ten (10) years, subject to
earlier termination in the event that Executive terminates continued service to
the Company. In the event that Executive is no longer serving as an employee and
is not a consultant to the Company or a member of the Board of Directors of the
Company (the "Board") prior to the tenth (10th) anniversary of the grant date of
the Option, the Option shall terminate on the last to occur of the following
dates: (i) the first anniversary of Executive's termination of service as an
employee, consultant and member of the Board, or (ii) December 31, 2004.
Notwithstanding the terms of the previous sentence, in no event shall the Option
be exercisable subsequent to the tenth (10th) anniversary of the grant date of
the Option.

         As used in this Section 4, the term "Change in Control" shall mean the
occurrence of any of the following events:

                  (a)      the sale or disposition, in one or a series of
related transactions, of all or substantially all, of the assets of the Company
to any "person" or "group" (as such terms are defined in Sections 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended, or any successor
thereto) (the "Act") other than the Permitted Holders (as defined below);

                  (b)      any person or group, other than the Permitted
Holders, is or becomes the Beneficial Owner (as such term is defined in Rule
13d-3 under the Act or any successor rule thereto, except that a person shall be
deemed to have "beneficial ownership" of all shares that any such person has the
right to acquire, whether such right is exercisable immediately or only after
the passage of time), directly or indirectly, of more than 50% of the total
voting power of the voting stock of the Company (or any entity which controls
the Company), including by way of merger, consolidation, tender or exchange
offer or otherwise; or

                  (c)      during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board (together
with any new directors whose election by such Board or whose nomination for
election by the shareholders of the Company was approved by a vote of a majority
of the directors of the Company, then still in office, who were either directors
at the beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
Board, then in office.

         As used in this Section 4, the term "Permitted Holders" shall mean, as
of the date of determination, (i) an employee benefit plan (or trust forming a
part thereof) maintained by the
<PAGE>
Company, its parent, subsidiary or affiliates, or (ii) Silver Lake Partners its
parent, subsidiary and/or affiliates.

         5.       Employee Benefits. During the Employment Term, Executive shall
be entitled to participate in the Company's employee benefit plans, including
non-qualified programs, as in effect from time to time (collectively "Employee
Benefits"), commensurate with his position and compensation level, in accordance
with the requirements and terms of such Employee Benefits plans, programs and
arrangements; provided, however, that Executive shall at all times be entitled
to Employee Benefits on a basis that is no less favorable in the aggregate than
is provided to any other senior executive of the Company. Beginning on the
Effective Date and continuing for the period of Executive's employment by the
Company, Executive shall accrue paid vacation time and personal days in
accordance with Company policies applicable to it senior executives. In
addition, Executive shall be entitled to the perquisites and other fringe
benefits made available to senior executives of the Company.

         6.       Business Expenses. Executive is authorized to incur reasonable
expenses in carrying out his duties and responsibilities under this Agreement,
including, without limitation, expenses for travel and similar items related to
such duties and responsibilities. The Company will reimburse Executive for all
such expenses upon presentation by Executive from time to time of appropriately
itemized (consistent with the Company's policy) accounts of such expenditures.

         7.       Relocation Benefits. Executive shall be entitled to
participate in the Company's relocation program on a basis, which is no less
favorable in the aggregate than is provided to any other senior executive of the
Company. Alternatively, for a period not to exceed one year, the Company will
provide temporary housing, mutually acceptable to the Executive and the Company.

         8.       Termination. The Employment Term and Executive's employment
hereunder may be terminated by either party at any time and for any reason or no
reason. Notwithstanding any other provision of this Agreement, the provisions of
this Section 8 shall exclusively govern Executive's rights upon termination of
employment with the Company and its affiliates.

                  (a)      By the Company For Cause.

                           (i)      For purposes of this Agreement, "Cause"
shall be defined as (i) the Executive's continued failure substantially to
perform the material duties of his office (other than as a result of total or
partial incapacity due to physical or mental illness) if such failure continues
following Executive's receipt of written notice from the Company and a period of
thirty (30) days to cure such failure, (ii) the embezzlement or theft by the
Executive of the property of the Company, its subsidiaries or affiliates, (iii)
the commission of any act or any omission on the Executive's part resulting in
the conviction of Executive or a plea of nolo contendre with respect to a
felony, a crime involving moral turpitude, or a crime that materially adversely
affects the performance or the reputation of the Company, its subsidiaries or
affiliates, (iv) Executive's willful malfeasance or willful misconduct in
connection with Executive's duties to the Company, its subsidiaries or
affiliates or any other act or omission which is materially
<PAGE>
injurious to the financial condition or business reputation of the Company, its
subsidiaries or affiliates, or (v) a material breach by Executive of the terms
of this Agreement, or any non-compete, non-disclosure, or non-solicitation
provisions to which Executive is subject.

                           (ii)     If Executive's employment is terminated by
the Company for Cause, Executive shall be entitled to receive, reduced by any
amounts owed to the Company by Executive, the amounts described in the following
clauses (A) through (C) set forth below:

                                    (A)      the Base Salary through the date of
     termination;

                                    (B)      reimbursement for any unreimbursed
     business expenses properly incurred by Executive in accordance with Company
     policy prior to the date of Executive's termination; and

                                    (C)      such employee benefits, if any, as
     to which Executive may be entitled under the Employee Benefits plans (the
     amounts described in clauses (A) through (C) hereof, reduced by any amounts
     owed to the Company by Executive, being referred to as the "Accrued
     Rights").

         Following such termination of Executive's employment by the Company for
Cause, except as set forth in this Section 8(a), Executive shall have no further
rights to any compensation or any other benefits under this Agreement.

                  (b)      By the Company Without Cause Prior to December 31,
2002.

                           (i)      The Executive's employment hereunder may be
terminated by the Company without Cause.

                           (ii)     If Executive's employment is terminated by
the Company without Cause (other than by reason of total or partial incapacity
due to physical or mental illness) prior to January 1, 2003, then contingent
upon Executive's full compliance with the provisions set forth in Section 9 of
this Agreement and contingent upon Executive's execution of an effective release
of all claims against the Company in a form reasonably satisfactory to the
Company, Executive shall be entitled to receive:

                                    (A)      the Accrued Rights; and

                                    (B)      continued payment of the Base
         Salary through December 31, 2002;

         Executive shall not be required to mitigate the amount of any payments
or benefits provided for pursuant to this Section 8(b) by seeking other
employment. Following such termination of Executive's employment by the Company
without Cause prior to January 1, 2003, except as set forth in this Section
8(b), Executive shall have no further rights to any compensation or any other
benefits under this Agreement. The benefits described in this Section 8(b) shall
not survive beyond December 31, 2002. In the event that Executive remains
employed by the Company subsequent to December 31, 2002, Executive will not be
entitled to the benefits
<PAGE>
described in this Section 8(b) unless such benefits are the subject of a
separate agreement between the parties.

                  (c)      Notice of Termination. Any purported termination of
employment by the Company (other than due to Executive's death) shall be
communicated by written Notice of Termination to the other party hereto in
accordance with Section 12(g) hereof. For purposes of this Agreement, a "Notice
of Termination" shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of employment under the provision so indicated.

         9.       Nondisclosure of Confidential Information; Non-Competition.

                  (a)      At any time during or after Executive's employment
with the Company, Executive shall not, without the prior written consent of the
Company, use, divulge, disclose or make accessible to any other person, firm,
partnership, corporation or other entity any Confidential Information (as
hereinafter defined) pertaining to the business of the Company or any of its
subsidiaries or affiliates, except (i) while employed by the Company, in the
business of and for the benefit of the Company, or (ii) when required to do so
by a court of competent jurisdiction, by any governmental agency having
supervisory authority over the business of the Company, or by any administrative
body or legislative body (including a committee thereof) with jurisdiction to
order Executive to divulge, disclose or make accessible such information. For
purposes of this Section 9(a), "Confidential Information" shall mean information
(whether or not in written form) which relates to Silver Lake Partners, the
Company or any of their respective subsidiaries or affiliates, or any of their
respective businesses or products (including, without limitation, their
financial data, strategic business plans, and other proprietary information) or
to this Agreement, and which is not known to the public generally (excluding
public knowledge which occurs as a result of Executive's breach of this covenant
or the wrongful acts of others who were under confidentiality obligations as to
the item or items involved), except in the conduct of the business of the
Company, as in existence as of the date of Executive's termination of
employment.

                  (b)      As President of the Company, Executive will acquire
knowledge of Confidential Information and trade secrets. Executive acknowledges
that the Confidential Information and trade secrets that the Company has
provided and will provide to Executive could play a significant role were
Executive to directly or indirectly be engaged in any business in competition
with the Company or its subsidiaries. For so long as the Executive is employed
by the Company and continuing for eighteen (18) months thereafter, (A) Executive
shall not, directly or indirectly, as a sole proprietor, member of a
partnership, stockholder or investor (other than a stockholder or investor
owning not more than a 5% interest), officer or director of a corporation, or as
an employee, associate, consultant or agent of any person, partnership,
corporation or other business organization or entity other than the Company or
any of its subsidiaries, render any service to or in any way be affiliated with
a competitor (or any person or entity that is reasonably anticipated (to the
general knowledge of the Executive or the public) to become a competitor) of the
Company or any of its subsidiaries or affiliates in the business in which the
Company or any of its subsidiaries or affiliates is engaged and (B) Executive
shall not, on Executive's own behalf or on behalf of any person, firm or
company, directly or indirectly,
<PAGE>
solicit or offer employment to any person who has been employed by the Company
or its subsidiaries at any time during the 12 months immediately preceding such
solicitation. Notwithstanding anything contained in this Section 9(b) to the
contrary, the period of applicability of this Section 9(b) shall be extended an
additional day for each day on which the Executive is in breach of this Section
9(b).

                  (c)      The results and proceeds of Executive's services
hereunder, including, without limitation, any works of authorship resulting from
Executive's services during Executive's employment with the Company, its
subsidiaries and/or its affiliates and any works in progress, will be
works-for-hire and the Company will be deemed the sole owner throughout the
universe of any and all rights of whatsoever nature therein, whether or not now
or hereafter known, existing, contemplated, recognized or developed, with the
right to use the same in perpetuity in any manner the Company determines in its
sole discretion without any further payment to Executive whatsoever. If, for any
reason, any of such results and proceeds will not legally be a work-for-hire
and/or there are any rights which do not accrue to the Company under the
preceding sentence, then Executive hereby irrevocably assigns and agrees to
assign any and all of Executive's right, title and interest thereto, including,
without limitation, any and all copyrights, patents, trade secrets, trademarks
and/or other rights of whatsoever nature therein, whether or not now or
hereafter known, existing, contemplated, recognized or developed, to the
Company, and the Company will have the right to use the same in perpetuity
throughout the universe in any manner the Company determines without any further
payment to Executive whatsoever. Executive will, from time to time as may be
requested by the Company, (i) during the term of Executive's employment without
further consideration, and (ii) thereafter at Executive's then current hourly
rate, do any and all things which the Company may deem useful or desirable to
establish or document the Company's exclusive ownership of any and all rights in
any such results and proceeds, including, without limitation, the execution of
appropriate copyright and/or patent applications or assignments. To the extent
Executive has any rights in the results and proceeds of Executive's services
that cannot be assigned in the manner described above, Executive unconditionally
and irrevocably waives the enforcement of such rights. This subsection is
subject to and will not be deemed to limit, restrict, or constitute any waiver
by the Company of any rights of ownership to which the Company may be entitled
by operation of law by virtue of the Company being Executive's employer.

         10.      Specific Performance. Executive and the Company agree that the
covenants set forth in this Agreement are reasonable covenants under the
circumstances, and further agree that if in the opinion of any court of
competent jurisdiction such restraints are not reasonable in any respect, such
court shall have the right, power and authority to excise or modify such
provision or provisions of such covenant as to the court shall appear not
reasonable and to enforce the remainder of the covenant as so amended. Executive
agrees that any breach of the covenants contained in Section 9 would irreparably
injure the Company. Accordingly, Executive agrees the Company's remedies at law
for a breach or threatened breach of any of the provisions of Section 9 would be
inadequate and, in recognition of this fact, Executive agrees that, in the event
of such a breach or threatened breach, the Company may, without posting any
bond, in addition to pursuing any other remedies it may have in law or in
equity, cease making any payments otherwise required by this Agreement and
obtain equitable relief in the form of specific performance, temporary
restraining order, temporary or permanent injunction or any
<PAGE>
other equitable remedy which may then be available against Executive from any
court having jurisdiction over the matter, restraining any further violation of
the covenants set forth in Section 9 by Executive.

         11.      Payment of Legal Fees. The Company agrees to pay Executive's
reasonable legal fees associated with entering into this Agreement upon
receiving an invoice for such legal services.

         12.      Miscellaneous.

                  (a)      Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of New Hampshire, without
regard to conflicts of laws principles thereof.

                  (b)      Entire Agreement/Amendments. This Agreement and the
other documents referenced in this Agreement contain the entire understanding of
the parties with respect to the employment of Executive by the Company. There
are no restrictions, agreements, promises, warranties, covenants or undertakings
between the parties with respect to the subject matter herein other than those
expressly set forth herein. This Agreement may not be altered, modified, or
amended except by written instrument signed by the parties hereto. This
Agreement supersedes all prior agreements and understandings (including verbal
agreements) between Executive and the Company regarding the terms and conditions
of Executive's employment with the Company, its subsidiaries and/or its
affiliates (collectively, the "Prior Agreements").

                  (c)      No Waiver. The failure of a party to insist upon
strict adherence to any term of this Agreement on any occasion shall not be
considered a waiver of such party's rights or deprive such party of the right
thereafter to insist upon strict adherence to that term or any other term of
this Agreement.

                  (d)      Severability. The parties intend that the covenants
and agreements contained in the provisions of this Agreement shall be deemed to
be a series of separate covenants and agreements. If, in any judicial
proceeding, a court shall refuse to enforce all of the separate covenants deemed
included in the provisions of this Agreement, then such unenforceable covenants
shall be deemed eliminated from the provisions of this Agreement for the purpose
of such proceeding to the extent necessary to permit the remaining separate
covenants to be enforced in such proceeding. If any one or more of the covenants
contained in this Agreement is for any reason held to be excessively broad as to
duration, geographical scope, activity or subject, it will be construed by
limiting and reducing it, so as to be enforceable to the extent compatible with
the applicable law as it then appears.

                  (e)      Assignment. This Agreement shall not be assignable by
Executive. This Agreement may be assigned by the Company to a company that is a
successor in interest to substantially all of the business operations of the
Company. Such assignment shall become effective when the Company notifies the
Executive of such assignment or at such later date as may be specified in such
notice. Upon such assignment, the rights and obligations of the Company
hereunder shall become the rights and obligations of such successor company,
<PAGE>
provided that any assignee expressly assumes the obligations, rights and
privileges of this Agreement.

                  (f)      Successors; Binding Agreement. This Agreement shall
inure to the benefit of and be binding upon personal or legal representatives,
executors, administrators, successors, heirs, distributes, devises and legatees.

                  (g)      Notice. For the purpose of this Agreement, notices
and all other communications provided for in the Agreement shall be in writing
and shall be deemed to have been duly given if (1) personally delivered, (2)
transmitted by facsimile (with written confirmation), (3) delivered by an
express courier (with written confirmation), or (4) mailed by United States
registered mail (in which case notice shall be deemed given on the third day
after such mailing), return receipt requested, postage prepaid, to the parties
at the addresses set forth below, or to such other address as either party may
have furnished to the other in writing in accordance herewith, except that
notice of change of address shall be effective only upon receipt.

                           If to the Company:

                           Enterasys Networks, Inc.
                           50 Minuteman Road
                           Andover, MA 01810
                           Attention: Chief Legal Officer

                           If to Executive:

                           To the most recent address of Executive
                           set forth in the personnel records of the Company.

                  (h)      Withholding. The Company may withhold from any
amounts payable under this Agreement such Federal, state and local taxes or
other amounts as may be required to be withheld pursuant to any applicable law,
regulation or other authority to which the Company is subject.

                  (i)      Counterparts. This Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

                            [Signatures on next page]
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                       ENTERASYS NETWORKS, INC.

                                       By: /s/ Gerald M. Haines II
                                          -------------------------
                                       Name: Gerald M. Haines II
                                       Title: EVP

                                       EXECUTIVE:

                                         /s/ Yuda Doron
                                       ----------------------------
                                       Yuda Doron

                                       ____________________________

                                       ____________________________
                                       Address<PAGE>

                                                                    EXHIBIT 10.3

                                  April 5, 2002

Mr. Enrique P. Fiallo
c/o Enterasys Networks, Inc.
35 Industrial Way
Rochester, NH 03867

         Re:      Separation Agreement and Release

Dear Henry:

         As we have discussed, your employment with Enterasys Networks, Inc.
(the "Company") will terminate effective today April 5, 2002 (the "Separation
Date"). The purpose of this letter is to confirm the agreement between you and
the Company concerning your severance arrangements, as follows:

         1.       RESIGNATION. You have resigned, on the Separation Date, your
employment and all positions, offices and directorships held with the Company or
any of its Affiliates (as defined below) and your resignation has been accepted
by the Company on its own behalf and on behalf of its Affiliates. You agree to
sign and return any additional documentation which the Company may request to
confirm your resignation.

         2.       FINAL SALARY AND VACATION PAY AND OUTSTANDING BUSINESS
EXPENSES. You will be paid, at your current base rate, for all work you have
performed for the Company during the current payroll period, through the
Separation Date, to the extent not previously paid, as well as pay, at your
final base rate of pay, for any paid time off you had earned, but not used, as
of the Separation Date. If you have outstanding business expenses incurred prior
to the Separation Date which are eligible for reimbursement under Company
policy, they will be reimbursed, provided that you submit the required
documentation and substantiation on or before April 30, 2002.

         3.       SEVERANCE BENEFITS. In consideration of your acceptance of
this Agreement and subject to your meeting in full your obligations under it and
under the agreement between you and the Company captioned
Confidentiality/Non-Disclosure Agreement which you signed on May 27, 2001 (the
"Confidentiality Agreement"), the Company will provide you the following
severance pay and benefits:

                  (a)      The Company will pay you your salary, at your final
base rate of pay, for the period of twelve months following the Separation Date
(the "Severance Pay Period"). Payments will made in the form of salary
continuation and will begin on the next regular Company payday which is at least
five business days following the later of the effective date of this Agreement
or the date it is received by the Company. The first payment will be retroactive
to the day following the Separation Date.
<PAGE>
                  (b)      If you were enrolled in the Company's medical and
dental plans on the Separation Date, you may elect to continue your
participation and that of your eligible dependents in those plans for a period
of time under the federal law known as "COBRA." If you do so by signing and
returning the COBRA election form no later than the date you sign and return
this Agreement, then, until the conclusion of the Severance Pay Period or, if
earlier, until the date you become eligible for coverage under the health plan
of another employer, the Company will contribute to the premium cost of your
coverage and that of your eligible dependents under those plans the same amount
that it contributes to the premium cost of coverage of active employees and
their eligible dependents. To be eligible for these Company premium
contributions, however, you must pay the remainder of the premium cost by
payroll deduction. You agree to notify the Company immediately if you become
eligible for coverage under the health plan of another employer during the
Severance Pay Period and to repay promptly any excess contributions made by the
Company. After the Company's contributions end, you may continue coverage for
the remainder of the COBRA period, if any, by paying the full premium cost plus
a small administrative fee.

                  (c)      The loan to you in the amount of $100,000 evidenced
by a Promissory Note dated August 23, 1999, together with any interest accrued
on that loan, shall be forgiven in its entirety on the effective date of this
Agreement.

                  (d)      The Company will pay the reasonable cost of services
to you by an outplacement firm selected by the Company to which you have no
reasonable objection, such services to be provided from the effective date of
this Agreement until the earlier of date you accept full-time employment or the
expiration of one year from the Separation Date.

                  (e)      On the effective date of this Agreement, the Company
will transfer ownership to you of the IBM X21 laptop computer which it
previously provided for your business use. You agree to provide an electronic
copy of all documents related to the business of the Company and its Affiliates
on the computer and then permanently remove those documents from the computer.

         4.       WITHHOLDING. All payments made by the Company under this
Agreement shall be reduced by any tax or other amounts required to be withheld
by the Company under applicable law and all other deductions authorized by you.

         5.       ACKNOWLEDGEMENT OF FULL PAYMENT. You acknowledge and agree
that the payments to be provided in accordance with paragraph 2 of this
Agreement are in complete satisfaction of any and all compensation due to you
from the Company, whether for services provided to the Company or otherwise,
through the Separation Date and that, except as expressly provided under this
Agreement, no further compensation is owed to you. Further, it is agreed that
severance pay and other benefits to which you are entitled under Paragraph 3 of
this Agreement shall be reduced by any other payments or benefits to which you
may be entitled under applicable law as a result of termination of your
employment, including without limitation any federal, state or local law with
respect to plant closings, mass layoffs or group benefit plan
<PAGE>
continuation following termination or the like, but exclusive of any
unemployment benefits to which you are eligible under applicable law.

         6.       D&O INSURANCE. This will confirm that directors and officers
are included within the coverage provided under the existing Director and
Officer Insurance policies of the Company.

         7.       INDEMNIFICATION. You shall have such rights to
indemnification, including rights to payment or reimbursement of legal fees, as
are provided under the Company's charter.

         8.       STATUS OF EMPLOYEE BENEFITS, PAID TIME OFF AND STOCK OPTIONS.
Except as otherwise expressly provided in paragraph 3(b) of this Agreement, your
participation in all employee benefit plans of the Company will end as of the
Separation Date, in accordance with the terms of those plans. You will not
continue to earn paid time off after the Separation Date. Your rights and
obligations with respect to any stock options granted to you by the Company
which had vested as of the Separation Date shall be governed by the applicable
stock option plan and any agreements or other requirements applicable to those
options. All stock options which are unvested as of the Separation Date shall be
cancelled and shall terminate as of that date.

         7.       NON-COMPETITION, CONFIDENTIALITY AND NON-DISPARAGEMENT.

                  (a)      You agree that the following restriction on your
activities are necessary to protect the goodwill, Confidential Information (as
defined in the Confidentiality Agreement) and other legitimate business
interests of the Company :

                           (i)      You agree that, except with the prior
         written consent of the Board or its designee, for a period of one year
         following the Separation Date and provided that the Company fulfills
         its obligations pursuant to paragraphs 3 (a) and (b), you will not,
         directly or indirectly, compete, or undertake any planning to compete,
         with the Company or any of its Affiliates, anywhere in the world,
         whether as an owner, partner, investor, consultant, employee or
         otherwise. Specifically, but without limiting the foregoing, you agree
         not to work or provide services, in any capacity, whether as an
         employee, independent contractor or otherwise, whether with or without
         compensation, to any person or entity who is engaged in any business
         that is competitive with the business of the Company or any of its
         Affiliates for which you have provided services, as conducted or in
         active planning during your employment. It is agreed that the foregoing
         shall not prevent your passive ownership of five percent (5%) or less
         of the equity securities of any publicly traded company.

                           (ii)     You also acknowledge and agree that, were
         you to breach the provisions of the paragraph set forth immediately
         above, the harm to the Company would be irreparable. You therefore
         agree that in the event of such a breach or threatened breach the
         Company shall, in addition to any other remedies available to it, have
         the right to obtain preliminary and permanent injunctive relief against
         any such breach without having to post bond. You further agree that, in
         the event that any provision of the paragraph immediately above shall
         be
<PAGE>
         determined by any court of competent jurisdiction to be unenforceable
         by reason of its being extended over too great a time, too large a
         geographic area or too great a range of activities, such provision
         shall be deemed to be modified to permit its enforcement to the maximum
         extent permitted by law.

                  (b)      You agree that you will not disclose this Agreement
or any of its terms or provisions, directly or by implication, except (i) to
members of your immediate family and to your legal and tax advisors, and then
only on condition that they agree not to further disclose this Agreement or any
of its terms or provisions to others, or (ii) as required by law (in which case,
prior to such disclosure you will give the Company notice and an opportunity to
obtain a protective order against such disclosure). You also agree that, during
the Severance Pay Period and thereafter, you will not disparage or criticize the
Company or its Affiliates, their business, management or products, and that you
will not otherwise do or say anything that could reasonably be expected to harm
the business interests or reputation of the Company or its Affiliates.

         8.       RETURN OF COMPANY DOCUMENTS AND OTHER PROPERTY. In signing
this Agreement, you represent and warrant that you have returned to the Company
any and all documents, materials and information (whether in hardcopy, on
electronic media or otherwise) related to business (whether present or
otherwise) of the Company or any of its Affiliates and all keys, access cards,
credit cards, computer hardware and software, telephones and telephone-related
equipment and all other property of the Company and its Affiliates in your
possession or control, excluding the IBM X22 laptop computer to which reference
is made in paragraph 3(e) above. Further, you represent and warrant that you
have not retained any copy of any Company documents, materials or information
(whether in hardcopy, on electronic media or otherwise). You acknowledge that
you have disclosed to the Company all passwords necessary or desirable to enable
the Company to access all information which you have password-protected on any
of its computer equipment or on its computer network or system.

         9.       EMPLOYEE COOPERATION.

                  (a)      You agree that, during the Severance Pay Period, and
without additional compensation, you will provide advice and consultation to the
Company upon request with respect to your former duties and responsibilities and
otherwise support the Company's management transition and that you will be
supportive of the Company's policies and operational and sales activities.

                  (b)      You also agree, during the Severance Pay Period and
thereafter, to cooperate with the Company hereafter with respect to all matters
arising during or related to your employment, including but not limited to all
matters in connection with any governmental investigation, litigation or
regulatory or other proceeding which may have arisen or which may arise
following the signing of this Agreement. As part of the cooperation agreed to
herein, you shall provide complete and truthful information to the Companies and
their attorneys with respect to any matter arising during or related to your
employment. Specifically, you shall make yourself available to meet with the
Companies' personnel and attorneys and shall provide to the Companies and their
attorneys any and all documentary or other physical evidence pertinent to any
such matter. Finally, you shall promptly notify the Companies, within three
business days,
<PAGE>
of your receipt from any third party or governmental entity of a
request for testimony and/or documents, whether by legal process or otherwise,
relating to any matter arising during or relating to your employment. You will
not be entitled to additional compensation for your compliance with your
obligations hereunder, but the Company will reimburse your out-of-pocket
expenses incurred in complying with Company requests hereunder, provided such
expenses are authorized by the Company in advance.

         10.      RELEASE OF CLAIMS.

                  (a)      In exchange for the special severance pay and
benefits provided you under this Agreement, to which you would not otherwise be
entitled, on your own behalf and that of your heirs, executors, administrators,
beneficiaries, personal representatives and assigns, you agree that this
Agreement shall be in complete and final settlement of any and all causes of
action, rights or claims of every type and description, whether known or
unknown, that you have had in the past, now have, or might now have, in any way
related to, connected with or arising out of your employment or its termination
or pursuant to Title VII of the Civil Rights Act, the Americans with
Disabilities Act, the Age Discrimination in Employment Act, the fair employment
practices statutes of the state or states in which you have provided services to
the Company or any of its Affiliates or any other federal, state or local law,
regulation or other requirement and you hereby release and forever discharge the
Company and its Affiliates all of their respective past and present directors,
shareholders, officers, members, managers, partners, joint venturers, employees,
agents and representatives, their successors and assigns, and all others
connected with any of them, both individually and in their official capacities,
from any and all such causes of action, rights or claims.

                  (b)      This Agreement, including the release of claims set
forth immediately above, creates legally binding obligations and the Company
advises you to consult an attorney before signing this Agreement. In signing
this Agreement, you give the Company assurance that you have signed it
voluntarily and with a full understanding of its terms; that you have had
sufficient opportunity, before signing this Agreement, to consider its terms and
to consult with an attorney, if you wished to do so, or to consult with any
other of those persons to whom reference in made in the first sentence of
paragraph 7(b) above; and that, in signing this Agreement, you have not relied
on any promises or representations, express or implied, that are not set forth
expressly in this Agreement.

         11.      MISCELLANEOUS.

                  (a)      This Agreement constitutes the entire agreement
between you and the Company and supersedes all prior and contemporaneous
communications, agreements and understandings, whether written or oral, with
respect to your employment, its termination and all related matters, excluding
only the Confidentiality Agreement and your obligations with respect to the
securities of the Company, all of which shall remain in full force and effect in
accordance with their terms.

                  (b)      This Agreement may not be modified or amended, and no
breach shall be deemed to be waived, unless agreed to in writing by you and the
Chairman of the
<PAGE>
Board of the Company or his expressly authorized designee. The captions and
headings in this Agreement are for convenience only and in no way define or
describe the scope or content of any provision of this Agreement.

                  (c)      The obligation of the Company to make payments to you
or on your behalf under this Agreement is expressly conditioned upon your
continued full performance of your obligations under this Agreement and under
the Confidentiality Agreement.

         If the terms of this Agreement are acceptable to you, please sign, date
and return it to me within twenty-one days of the date you receive it. You may
revoke this Agreement at any time during the seven-day period immediately
following the date of your signing. If you do not revoke it, then, at the
expiration of that seven-day period, this letter will take effect as a
legally-binding agreement between you and the Company on the basis set forth
above. The enclosed copy of this letter, which you should also sign and date, is
for your records.

                                            Sincerely,
                                            ENTERASYS NETWORKS, INC.

                                            By:   /s/ Gerald M. Haines II
                                                ------------------------------
                                                Gerald M. Haines II
                                                Executive Vice President

Accepted and agreed:

Signature:   /s/ Enrique P. Fiallo
          ----------------------------

Date:         April 22, 2002
     ---------------------------------

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