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Prepared by MERRILL CORPORATION

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Exhibit 10.17    
  

 
 

CONTINUING GUARANTY    
  

    This CONTINUING GUARANTY, dated as of November 28, 2001, is made by 3COM CORPORATION, a Delaware
corporation ("Guarantor"), in favor of the Lenders (as defined below) and BANK OF AMERICA, N.A., as
agent for the Lenders (in such capacity as agent, together with its successors and assigns, the "Agent"), in light of the following: 

 
 

R E C I T A L S    
  

    WHEREAS, 3Com Technologies, an exempted limited liability company incorporated in the Cayman Islands ("3Com
Technologies") and 3Com Europe Limited, a company incorporated in England and Wales with registered number 2600346 ("3Com UK"
and, collectively with 3Com Technologies, the "Borrowers") are currently entering into that certain Credit Agreement, of even date herewith (as amended,
supplemented, or otherwise modified from time to time, the "International Credit Agreement") with various financial institutions (together with their
successors and assigns, the "Lenders"), Bank of America, N.A., as "Bank" and
"Issuing Bank" thereunder and as security trustee ("Trustee") and Agent (collectively, the Lenders,
Bank, Issuing Bank, Trustee, and Agent are referred to herein as the "Credit Parties"); 

    WHEREAS,
3Com Technologies is an indirect wholly-owned subsidiary of Guarantor, and 3Com UK is an indirect wholly-owned subsidiary of 3Com Technologies; 

    WHEREAS,
Guarantor will derive substantial, direct and indirect benefit from the transactions contemplated by the International Credit Agreement; and 

    WHEREAS,
as a condition to the Credit Parties extending certain financial accommodations to Borrowers pursuant to the International Credit Agreement, the Credit Parties have required
that Guarantor guarantee the Guaranteed Obligations (as defined below). 

    FOR
GOOD AND VALUABLE CONSIDERATION, Guarantor irrevocably and unconditionally undertakes and agrees for the benefit of the Credit Parties as follows: 

 
 

A G R E E M E N T    
  

    1.  DEFINITIONS AND CONSTRUCTION.  

    1.1  Definitions.  All initially capitalized terms used
but not defined in this Guaranty shall have the meanings set forth in the International Credit Agreement. In addition, the following terms shall have the following meanings: 

    "Bankruptcy Code" means any applicable bankruptcy or insolvency act or law, including the US Bankruptcy Code, now or hereafter
existing, and any and all rules issued or promulgated in connection therewith. 

    "Borrowers" has the meaning set forth in the recitals hereto, and includes all successors-in-interest of each
such corporation by operation of law or otherwise, including any "Trustee" (as defined in the Bankruptcy Code) or debtor-in-possession, and any
successor-in-interest arising out of any merger or reorganization involving each such corporation. 

    "Credit Parties" has the meaning set forth in the recitals hereto. 

    "Guaranteed Obligations" means all present and future loans, advances, liabilities, obligations, covenants, duties, and Debt owing by
Borrowers to the Credit Parties, arising under or relating to the International Credit Agreement or any other Loan Document, whether or not evidenced by 

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any note, or other instrument or document, whether arising from an extension of credit, opening of a letter of credit, reimbursement obligations relating to Letters of Credit, acceptance, loan,
guaranty, indemnification or otherwise, whether direct or indirect (including, without limitation, those debts of Borrowers arising under or related to the International Credit Agreement or any other
Loan Document acquired by assignment from others, and any participation by the Credit Parties in Borrowers' debts arising under or related to the International Credit Agreement or any other Loan
Document), absolute or contingent, due or to become due, primary or secondary, as principal or guarantor, and including, without limitation, all interest (including interest that, but for the filing
of a petition under the Bankruptcy Code with respect to any Borrower, would have accrued on any such obligations, indebtedness, or liabilities), charges, reasonable expenses, fees, attorneys' and
paralegals' fees and disbursements, filing fees and any other sums chargeable to Borrowers under the International Credit Agreement or under another Loan Document, whether made, incurred, or created
before or after any entry of order for relief with respect to any Borrower in a case under the Bankruptcy Code and whether recovery is or hereafter becomes barred by any statue of limitations or
otherwise becomes unenforceable for any reason whatsoever, including any act or failure to act by the Credit Parties. 

    "Guarantor" has the meaning set forth in the introduction hereto. 

    "Guaranty" means this Continuing Guaranty, any concurrent or subsequent exhibits or schedules hereto, and any extensions, supplements,
amendments, or modifications to or in connection with this Continuing Guaranty, or to any such schedules or exhibits. 

    "Lender" has the meaning set forth in the introduction hereto. 

    "International Credit Agreement" has the meaning set forth in the recitals hereto. 

    "US Bankruptcy Code" means the Bankruptcy Reform Act of 1978 (11 U.S.C. Sections 101-1330), as amended or supplemented from
time to time, and any successor statute, and any and all rules issued or promulgated in connection therewith. 

    "US Credit Agreement" means that certain Credit Agreement, of even date herewith, among Guarantor, Agent, Bank, and certain other
financial institutions signatory thereto. 

    1.2  Construction.  Unless the context of this Guaranty
clearly requires otherwise: (a) references to the plural include the singular and references to the singular include the plural; (b) references to any gender include the other gender;
(c) the terms "include" and "including" are not limiting; and (d) the term "or" has the inclusive meaning represented by the phrase "and/or." The terms "hereof," "herein," "hereby," and
"hereunder," and other similar terms in this Guaranty, refer to this Guaranty as a whole and not to any particular provision of this Guaranty. References in this Guaranty to any "determination," or
any matter being "determined," by the Credit Parties include good faith estimates
(in the case of quantitative determinations), and good faith beliefs (in the case of qualitative determinations) by the Credit Parties and mean that any such determination so made shall be conclusive
absent manifest error. Unless otherwise specified, section and subsection references are to this Guaranty. Any reference to any statute, law, or regulation shall include all amendments thereto and
revisions thereof. Any reference herein to any of the Loan Documents includes any and all alterations, amendments, extensions, modifications, renewals, or supplements thereto or thereof, as
applicable. If there exists any inconsistency between the terms of the US Credit Agreement and this Agreement or if the terms, conditions, or obligations under this Agreement are any more restrictive
on Guarantor than those provided with respect to Guarantor under the US Credit Agreement, then the terms of the US Credit Agreement shall prevail, so that nothing herein contained shall impose any
greater or more onerous liability or restriction on Guarantor than is imposed under the US Credit Agreement. To the extent any provision of the US Credit Agreement addresses the same subject matter
covered by a provision hereunder, actions or omissions which are expressly permitted or not prohibited 

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by the terms of the US Credit Agreement shall not constitute a breach of the express or implied terms of this Agreement. 

    2.  GUARANTY BY GUARANTOR.  

    2.1  Promise to Pay and Perform.  Guarantor
unconditionally and irrevocably guarantees to the Credit Parties the payment and performance of the Guaranteed Obligations when and as the same shall become due and payable (whether at stipulated date
of maturity or any accelerated or earlier date (including the date of any required prepayment)). It is Guarantor's intent that this Guaranty is a guaranty of payment and not a guaranty of collection.
If any Borrower fails to pay or perform any Guaranteed Obligation on or before the date when due (whether at the stipulated date of maturity or any accelerated or earlier date (including the date of
any required prepayment)), Guarantor shall unconditionally and immediately make such payment or render such performance upon demand therefor by the Agent. 

    2.2  Cumulative Obligations.  The obligations of
Guarantor hereunder are in addition to any other obligations of Guarantor under any other guaranties of the Guaranteed Obligations or other obligations of any Borrower or any other Person at any time
given to any Credit Party. This Guaranty shall not affect or invalidate any such other guaranties. 

    2.3  Continuing Guaranty.  This Guaranty is a continuing
guaranty and shall remain in full force and effect notwithstanding the fact that, at any particular time, no Guaranteed Obligations may be outstanding. This Guaranty includes Guaranteed Obligations
arising under successive transactions continuing, compromising, extending, increasing, modifying, releasing, or renewing the Guaranteed Obligations, changing the interest rate, payment terms, or other
terms and conditions thereof, or creating new or additional Guaranteed Obligations after prior Guaranteed Obligations have been satisfied in whole or in part. 

    2.4  Joint and Several Obligation; Independent
Obligation.  Guarantor is directly, jointly and severally with all other guarantors of the Guaranteed Obligations or any portion thereof, liable to the Credit
Parties. The obligations of Guarantor hereunder are direct and primary and are independent of the obligations of Borrowers or any other such guarantor, and a separate action may be brought against
Guarantor irrespective of whether an action is brought against Borrowers or any other such other guarantor or whether any Borrower or any such other guarantor is joined in such action. Guarantor's
liability hereunder shall not be contingent upon the exercise or enforcement by any Credit Party of any remedies it may have against any Borrower or any other guarantor or the enforcement of any Lien
or realization upon any security the Credit Parties may at any time possess. Any release which may be given by the Credit Parties to any Borrower or any other guarantor shall not release Guarantor.
Guarantor acknowledges that the Credit Parties shall have the right to seek recourse against Guarantor to the fullest extent provided for herein and no election by the Credit Parties to proceed in one
form of action or proceeding, or against any party or on any obligation, shall constitute a waiver of the Credit Parties' right to proceed in any other form of action or proceeding or against other
parties unless they have expressly waived such right in writing. 

    3.  PAYMENTS.  

    3.1  Nature and Application of Payments.  Guarantor shall
make all payments hereunder in immediately available lawful money of the United States, without deduction or withholding (whether for taxes (whether income, excise, or otherwise) or offset). Without
regard to the form in which received, the Credit Parties may apply any payment with respect to the Guaranteed Obligations or any other amounts due hereunder in such order as is provided for in  Section 3.8 of the International Credit Agreement, irrespective of any contrary instructions received from any other Person.
 

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    3.2  Revival.  In the event that, for any reason, all or
any portion of any payment to the Credit Parties is set aside or restored, including, but not limited to, payments subject to a right of any Person whomsoever, including any Borrower, any Borrower as
debtor in possession, or any trustee (whether appointed under the Bankruptcy Code or otherwise) of Borrower's assets to invalidate or set aside such payments, to seek to recoup the amount of such
payments or any portion thereof, or to declare same to be fraudulent or preferential, whether voluntarily or involuntarily, and repaid by the Credit Parties for any reason after being made by
Guarantor, the amount so set aside shall be revived as a Guaranteed Obligation and Guarantor shall be liable for the full amount the Credit Parties are required to repay plus all costs and expenses
(including attorneys' fees, costs, and expenses) incurred by them in connection therewith. 

    4.  REPRESENTATIONS AND WARRANTIES OF GUARANTOR.  

    Guarantor
represents and warrants as follows (which representations and warranties shall be true, correct, and complete in all respects at all times): 

    4.1  Reliance by Guarantor; Financial Condition of
Borrowers.  This Guaranty is not made by Guarantor in reliance on any representation or warranty, express or implied, by the Credit Parties concerning the
financial condition of Borrowers, the nature, value, or extent of any security for the Guaranteed Obligations, or any other matter. Guarantor is presently informed of the financial condition of
Borrowers and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Guaranteed Obligations. Guarantor has read and reviewed each of the
Loan Documents and understands the terms and conditions thereof. 

    4.2  Adequate Consideration.  The consideration given or
provided, or to be given or provided, by the Credit Parties in connection with this Guaranty is adequate and satisfactory in all respects, and represents reasonably equivalent value, to support this
Guaranty and Guarantor's obligations hereunder. 

    5.  COVENANTS OF GUARANTOR.  

    5.1  Borrower's Financial Condition.  Guarantor shall
keep informed of Borrower's financial condition, the status of any guarantors or of any security for the Guaranteed Obligations, and all other changes, potential changes or circumstances which affect,
or bear upon the risk of nonpayment of, the Guaranteed Obligations. 

    5.2  Further Assurances.  Guarantor shall, from time to
time, at the expense of Guarantor, promptly execute and deliver all further documents and take all further action that may be necessary, or that the Credit Parties may reasonably request, to enable
the Credit Parties to exercise and enforce their rights and remedies hereunder. 

    6.  ACKNOWLEDGMENTS AND AGREEMENTS OF GUARANTOR.  

    6.1  Modifications to Loan Documents and Guaranteed
Obligations.  Guarantor acknowledges and agrees that, without notice to Guarantor and without affecting or impairing the obligations of Guarantor hereunder, in
accordance with the terms of the International Credit Agreement, the Credit Parties may, by action or inaction, compromise or settle, extend the period of duration or the time for the payment, or
discharge the performance of, or may refuse to, or otherwise not enforce, or may, by action or inaction, release all or any one or more parties to, any one or more of the Loan Documents or otherwise
with respect to the Guaranteed Obligations or may grant other indulgences to Borrowers in respect thereof, or may amend or modify in any manner and at any time (or from time to time) any one or more
of the Loan Documents or otherwise with respect to the Guaranteed Obligations, or may,
by action or inaction, release or substitute any guarantor, if any, of the Guaranteed Obligations, or may enforce, exchange, release, 

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or waive, by action or inaction, any security for the Guaranteed Obligations or any guaranty of the Guaranteed Obligations, or any portion thereof. 

    6.2  The Agent as Guarantor's
Attorney-in-Fact.  Guarantor irrevocably appoints the Agent as Guarantor's attorney-in-fact, with full authority
in the place and stead and name of Guarantor, from time to time at the Agent's discretion but only following the occurrence and during the continuation of an Event of Default, to take any action and
to execute any instrument which the Credit Parties may, in accordance with the provisions of the Loan Documents or this Guaranty, require as necessary or advisable to accomplish the purposes of this
Guaranty. 

    7.  CERTAIN WAIVERS BY GUARANTOR.  

    GUARANTOR
MAKES THE FOLLOWING WAIVERS WITH FULL KNOWLEDGE AND UNDERSTANDING THAT WERE SUCH WAIVERS NOT MADE, GUARANTOR MIGHT BE ABLE TO AVOID OR LIMIT GUARANTOR'S LIABILITY HEREUNDER
EITHER IN WHOLE OR IN PART. 

    7.1  Notices.  Guarantor absolutely, unconditionally,
knowingly, and expressly waives: (a) notice of the acceptance by the Credit Parties of this Guaranty; (b) notice of any loans or other financial accommodations consisting of Guaranteed
Obligations; (c) notice of the amount of the Guaranteed Obligations, subject, however, to Guarantor's right to make inquiry, at any reasonable time, of the Agent to ascertain the amount of the
Guaranteed Obligations owing to the Credit Parties; (d) notice of any adverse change in the financial condition of Borrowers, of any change in value, or the release, of any Collateral, or of
any other fact that might increase Guarantor's risk hereunder; (e) notice of presentment for payment, demand, protest, and notice thereof as to any instrument; (f) notice of any default;
and (g) all other notices (except if such notice is to be given to Guarantor under the express terms of this Guaranty or any of the other Loan Documents to which Guarantor is a party, or the
International Credit Agreement) and demands to which Guarantor might otherwise be entitled. 

    7.2  Revocation.  Guarantor absolutely, unconditionally,
knowingly, and expressly waives any right to revoke Guarantor's guaranty obligation hereunder as to future Guaranteed Obligations and, in light thereof, all protection afforded Guarantor under
Section 2815 of the California Civil Code. Guarantor fully realizes and understands that, upon execution of this Guaranty, Guarantor will not have any right to revoke this Guaranty as to any
future indebtedness and, thus, may have no control over Guarantor's ultimate responsibility for the Guaranteed Obligations. 

    7.3  Defenses of Borrowers.  Guarantor absolutely,
unconditionally, knowingly, and expressly waives any defense arising by reason of any disability or other defense (other than the defense that the Guaranteed Obligations shall have been fully and
finally performed and paid) of Borrowers or by reason of the cessation from any cause whatsoever (including any act or failure to act by Borrowers or the Credit Parties) of the liability of Borrowers
in respect thereof, including any such defense or cessation of liability arising from or as a result of: (a) any lack of power or authority of Borrowers or any person acting or purporting to
act on Borrower's behalf; or (b) any claim of fraudulent transfer or preference. 

    7.4  Suretyship and Certain Other Rights and Defenses of
Guarantor.  Guarantor absolutely, unconditionally, knowingly, and expressly waives: 

    (a) any
right to assert against the Credit Parties any defense (legal or equitable), set-off, counterclaim, or claim which Guarantor may now or at any time
hereafter have against Borrowers or any other Person liable to the Credit Parties; 

    (b) any
defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection,
sufficiency, validity, or enforceability 

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of any of the Guaranteed Obligations or any security therefor, or from any failure of the Credit Parties to act in a commercially reasonable manner; 

    (c) any
defense arising by reason of or deriving from (i) any claim or defense based upon an election of remedies by the Credit Parties (including a nonjudicial
foreclosure sale of any real property collateral which destroys, diminishes, or otherwise adversely affects Guarantor's rights of subrogation, reimbursement, indemnity, or contribution or other rights
against Borrowers or any other Person), including any defense based upon an election of remedies by the Credit Parties under the provisions of Sections 580a, 580b, 580d, and 726 of the California Code
of Civil Procedure or any similar law of California or any other jurisdiction; or (ii) any election by the Credit Parties under US Bankruptcy Code Section 1111(b) to limit the amount of
or collateral securing its claim against Borrowers. Pursuant to California Civil Code Section 2856(b): 

    "Guarantor
waives all rights and defenses arising out of an election of remedies by the creditor, even though that election of remedies, such as a nonjudicial foreclosure with respect
to security for a guaranteed obligation, has destroyed Guarantor's rights of subrogation and reimbursement against Borrowers by the operation of Section 580(d) of the California Code of Civil
Procedure or otherwise. 

    "Guarantor
waives all rights and defenses that Guarantor may have because Borrower's Obligations are secured by real property. This means, among other things: 

    "(1)
Credit Parties may collect from Guarantor without first foreclosing on any real or personal property collateral pledged by Borrowers. 

    "(2)
If Credit Parties foreclose on any real property collateral pledged by Borrowers: 

    (A)
The amount of the Guaranteed Obligation may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the
sale price. 

    (B)
Credit Parties may collect from Guarantor even if Credit Parties, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect from
Borrowers. 

    "This
is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have because Borrower's Obligations are secured by real property. These rights and defenses
include, but are not limited to, any rights or defenses based upon Section 580a, 580b, 590d, or 726 of the California Code of Civil Procedure." 

    In
making these waivers, Guarantor specifically acknowledges that it understands and is aware that, under Sections 580b and 580d of the California Code of Civil Procedure, if the
Credit Parties conducted a nonjudicial foreclosure sale of real property collateral, absent these waivers: (A) the Credit Parties would lose the right to pursue one or more of the Borrowers for
any deficiency that might remain following such sale; (B) if Guarantor were to pay such deficiency following such sale, Guarantor would be precluded from pursuing one or more of the Borrowers
for reimbursement; and (C) as a result, the Credit Parties might be prevented from pursuing Guarantor for such deficiency following such sale; 

    (d) the
benefit of any statue of limitations affecting Guarantor's liability hereunder (or the enforcement thereof) and any act which shall defer or delay the operation
of any statute of limitations applicable to the Guaranteed Obligations shall similarly operate to defer or delay the operation of such statute of limitations applicable to Guarantor's liability
hereunder; 

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    (e) any defense based on any alteration, impairment, or release of the Guaranteed Obligations or any security therefor, irrespective of whether resulting from any act
or failure to act by the Credit Parties; 

    (f)  any
right to require the Credit Parties: (i) to institute suit or otherwise proceed against Borrowers or any other Person; or (ii) to exhaust any
rights and remedies which the Credit Parties may have against Borrowers or any other Person; and 

    (g) any
other defense (other than indefeasible payment in full) available to Borrowers or Guarantor under applicable law. 

    7.5  Marshaling.  Guarantor absolutely, unconditionally,
knowingly, and expressly waives any rights it has to require the Credit Parties to marshal, foreclose upon, sell, or otherwise realize upon or collect or apply any particular part of any other assets
securing any of the Guaranteed Obligations (including any rights arising by virtue of Sections 2899 and 3433 of the California Civil Code). 

    7.6  Claims Against Borrowers And Others.  To the extent
of any claim of preference liability with respect to any Collateral upon which the Agent acquires a Lien within a year preceding the filing of a petition in bankruptcy under the Bankruptcy Code with
respect to any Borrower, Guarantor absolutely, unconditionally, knowingly, and expressly waives; and in all other cases, until such time as the Guaranteed Obligations have been fully, finally, and
indefeasibly paid in full, in cash, Guarantor postpones: (a) any right of subrogation, indemnity, or contribution Guarantor has or may have as against Borrowers or any other Person with respect
to any of the Guaranteed Obligations; (b) any right to proceed against Borrowers or any other Person, now or hereafter, for contribution, indemnity, reimbursement, or any other suretyship
rights and claims (irrespective of whether direct or indirect, liquidated or contingent) with respect to any of the Guaranteed Obligations; and (c) any right to proceed or to seek recourse
against or with respect to any assets of Borrowers or any other Person with respect to any of the Guaranteed Obligations. Guarantor specifically acknowledges and agrees that, in light of the waivers
contained in this subsection, Guarantor shall not be a "creditor" (as that term is defined in the US Bankruptcy Code or otherwise) of Borrowers or any other Person (whether for purposes of application
of Sections 547 or 550 of the US Bankruptcy Code or otherwise) with respect to any of the Guaranteed Obligations. 

    7.7  Certain Additional Statutory Rights.  Without
limiting the generality of any other waiver or other provision set forth in this Guaranty, Guarantor absolutely, unconditionally, knowingly, and expressly waives any and all benefits or defenses, if
any, arising directly or indirectly under any one or more of Sections 2792, 2793, 2799, 2806, 2808, 2809, 2810, 2815, 2819, 2820, 2821, 2822, 2825, 2838, 2839, 2845, 2848, 2849, 2850 and 2855 of the
California Civil Code, Sections 580a, 580b, 580c, 580d, and 726 of the California Code of Civil Procedure, and Sections 3116, 3118, 3119, 3419, 3605, 9610, 9611, 9612, 9613, 9614, 9615, 9616, 9617,
9618, 9619, 9620, 9621, 9622, 9623, 9624, 9625, 9626 and 9627 of the California Uniform Commercial Code. 

    8.  GENERAL PROVISIONS.  

    8.1  Cumulative Remedies.  The enumeration herein of the
Credit Parties' rights and remedies is not intended to be exclusive, and such rights and remedies are in addition to and not by way of limitation of any other rights or remedies that the Credit
Parties may have under the Loan Documents, the California Uniform Commercial Code or other applicable law. The Credit Parties shall have the right, in their sole discretion, to determine which rights
and remedies are to be exercised by the Credit Parties and in which order. The exercise of one right or remedy shall not preclude the exercise of any others, all of which shall be cumulative. 

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    8.2  No Implied Waivers.  No failure by the Credit
Parties to exercise any right, remedy, or option under this Guaranty or any present or future Loan Document, or delay by any Credit Party in exercising the same, will operate as a waiver thereof. No
waiver by the Credit Parties will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by the Credit Parties on any occasion shall affect or diminish the
Credit Parties' rights thereafter to require strict performance by the Guarantor of any provision of this Agreement. The Credit Parties may proceed directly to collect the Guaranteed Obligations
without any prior recourse to any Collateral therefor. The Credit Parties' rights under this Agreement will be cumulative and not exclusive of any other right or remedy which the Agent, Security
Trustee or any Credit Party may have. 

    8.3  Severability.  The illegality or unenforceability of
any provision of this Guaranty or any Loan Document or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions
of this Guaranty or any instrument or agreement required hereunder. 

    8.4  Governing Law; Choice of Forum; Service of Process; Jury Trial
Waiver.  

    (a) THIS
GUARANTY SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICT
OF LAWS PROVISIONS PROVIDED THAT PERFECTION ISSUES WITH RESPECT TO ARTICLE 9 OF THE UCC MAY GIVE EFFECT TO APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTH IN ARTICLE 9 OF THE UCC) OF THE STATE OF
CALIFORNIA; PROVIDED THAT THE CREDIT PARTIES SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 

    (b) ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA OR OF THE UNITED STATES
OF AMERICA LOCATED IN SANTA CLARA COUNTY, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE GUARANTOR CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS. THE GUARANTOR IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS GUARANTY OR ANY DOCUMENT RELATED HERETO. NOTWITHSTANDING THE FOREGOING: (1) THE CREDIT PARTIES
SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE GUARANTOR OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION THE CREDIT PARTIES DEEM NECESSARY OR APPROPRIATE IN ORDER TO
REALIZE ON THE COLLATERAL OR OTHER SECURITY FOR THE GUARANTEED OBLIGATIONS AND (2) GUARANTOR ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE IMMEDIATELY PRECEDING SENTENCE MAY
HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE JURISDICTIONS. 

    (c) THE
GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL (RETURN
RECEIPT REQUESTED) DIRECTED TO THE GUARANTOR AT ITS ADDRESS SET FORTH IN SECTION 8.8 AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO
DEPOSITED IN THE U.S. MAILS 

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POSTAGE PREPAID. NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF CREDIT PARTIES TO SERVE LEGAL PROCESS BY ANY OTHER MANNER PERMITTED BY LAW. 

    (d) NOTWITHSTANDING
ANY OTHER PROVISION OF THIS AGREEMENT TO THE CONTRARY, ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE GUARANTOR AND THE CREDIT PARTIES, ARISING OUT
OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT INCLUDING ANY CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL AT THE REQUEST OF EITHER PARTY BE DETERMINED BY BINDING ARBITRATION. The
arbitration shall be conducted in accordance with the United States Arbitration Act (Title 9, U.S. Code), notwithstanding any choice of law provision in this GUARANTY, and under the Commercial Rules
of the American Arbitration Association ("AAA"). The arbitrator(s) shall give effect to statutes of limitation in determining any claim. Any controversy concerning whether an issue is arbitrable shall
be determined by the arbitrator(s). Judgment upon the arbitration award may be entered in any court having jurisdiction. The institution and maintenance of an action for judicial relief or pursuant to
a provisional or ancillary remedy shall not constitute a waiver of the right of either party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests
such action for judicial relief. 

    (e) Notwithstanding
the provisions of (d) above, no controversy or claim shall be submitted to arbitration without the consent of all parties if, at the time of
the proposed submission, such controversy or claim arises from or related to an Guaranteed Obligation which is secured by real property collateral (exclusive of real estate space lease assignments).
If all the parties do not consent to submission of such a controversy or claim to arbitration, the controversy or claim shall be determined as provided in Section 8.4(f). 

    (f)  At
the request of either party a controversy or claim which is not submitted to arbitration as provided and limited in Section 8.4(d) and (e) shall
be determined by judicial reference. If such an election is made, the parties shall designate to the court a referee or referees selected under the auspices of the AAA in the same manner as
arbitrators are selected in AAA-sponsored proceedings. The presiding referee of the panel, or the referee if there is a single referee, shall be an active attorney or retired judge.
Judgment upon the award rendered by such referee or referees shall be entered in the court in which such proceeding was commenced. 

    (g) No
provision of Sections (d) through (g) shall limit the right of the Credit Parties to exercise self-help remedies such as setoff,
foreclosure against or sale of any real or personal property collateral or security, or obtaining provisional or ancillary remedies from a court of competent jurisdiction before, after, or during the
pendency of any arbitration or other proceeding. The exercise of a remedy does not waive the right of either party to resort to arbitration or reference. At the Agent's and/or Trustee's option,
foreclosure under a deed of trust or mortgage may be accomplished either by exercise of power of sale under the deed of trust or mortgage or by judicial foreclosure. 

    8.5  WAIVER OF JURY TRIAL.  SUBJECT TO THE PROVISIONS OF
SECTION 8.4(d), THE GUARANTOR IRREVOCABLY WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS GUARANTY, OR THE TRANSACTIONS
CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH
RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE GUARANTOR AGREES THAT ANY SUCH CLAIM 

9

 

OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE GUARANTOR FURTHER AGREES THAT ITS RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS A GUARANTY OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS GUARANTY. 

    8.6  Survival of Representations and Warranties.  All of
Guarantor's representations, and warranties contained in this Guaranty shall survive the execution, delivery and acceptance thereof by the parties, notwithstanding any investigation by the Credit
Parties or any of their agents. 

    8.7  Fees and Expenses.  Guarantor shall pay to the
Credit Parties on demand all reasonable costs and expenses that the Agent pays or incurs in connection with the negotiation, preparation, consummation, administration, enforcement, and termination of
this Guaranty and the other Loan Documents, including, without limitation: (a) Agent's attorneys' and paralegals' fees and disbursements; (b) costs and expense (including Agent's
attorneys' and paralegals' fees and disbursements) for any amendment, supplement, waiver, consent, or subsequent closing in connection with this Guaranty and the transactions contemplated thereby; and
(c) costs and expenses (including Agent's attorneys' and paralegals' fees and disbursements) paid or incurred to obtain payment of the Guaranteed Obligations and otherwise enforce the
provisions of this Guaranty, or to defend any claims made or threatened against the Credit Parties arising out of the transactions contemplated hereby (including without limitation, preparations for
the consultations concerning any such matters). The foregoing shall not be construed to limit any other provisions of the Loan Documents regarding costs and expenses to be paid by Guarantor. 

    8.8  Notices.  Except as otherwise provided herein, all
notices, demands and requests that any party is required or elects to give to any other shall be in writing, or by a telecommunications device capable of creating a written record, and any such notice
shall become effective (a) upon personal delivery thereof, including, but not limited to, delivery by overnight mail and courier service, (b) four (4) days after it shall have
been mailed by United States mail, first class, certified or registered, with postage prepaid, or (c) in the case of notice by such a telecommunications device, when properly transmitted, in
each case addressed to the party to be notified as follows: 

	 	 	If to the Credit Parties:	 	Bank of America, N.A.

55 South Lake Avenue, Suite 900

Pasadena, California 91101

Attention: Stephen King

Facsimile: (626) 578-6143
	

 	
 	

With copies to:	
 	

Buchalter, Nemer, Fields & Younger

601 South Figueroa, Suite 2400

Los Angeles, California 90017-5704

Attention: Robert Davidson

Facsimile: (213) 896-0400

10

 

	

 	
 	

If to Guarantor:	
 	

3Com Corporation

5400 Bayfront Plaza

Santa Clara, California 95052

Attention: Chief Financial Officer

Facsimile: (408) 326-6857
	

 	
 	

 	
 	

with a copy to the attention of the

General Counsel

Facsimile: (408) 326-6434
	

 	
 	

With copies to:	
 	

Gray Cary Ware & Freidenrich LLP

400 Hamilton Avenue

Palo Alto, California 94301

Attention: Craig Tighe, Esq.

Facsimile: (650) 833-2001

or
to such other address as each party may designate for itself by like notice. Failure or delay in delivering copies of any notice, demand, request, consent, approval, declaration or other
communication to the persons designated above to receive copies shall not adversely affect the effectiveness of such notice, demand, request, consent, approval, declaration or other communication. 

    8.9  Waiver of Notices.  No notice to or demand on
Guarantor which the Credit Parties may elect to give shall entitle Guarantor to any or further notice or demand in the same, similar or other circumstances. 

    8.10  Binding Effect; Assignment.  This Guaranty shall be
binding upon Guarantor's successors and assigns and shall inure to the benefit of the successors and assigns of the Credit Parties; provided, however, Guarantor shall not assign this Guaranty or
delegate any of its duties hereunder without the Credit Parties' prior written consent. Any assignment without the consent of the Credit Parties shall be absolutely void. In the event of any
assignment or other transfer of rights by any of the Credit Parties, the rights and benefits herein conferred upon the assignor/transferor shall automatically extend to and be vested in such assignee
or other transferee. 

    8.11  Ambiguities.  To the extent permitted by applicable
law, neither this Guaranty nor any uncertainty or ambiguity herein shall be construed or resolved using any presumption against either Guarantor or the Credit Parties, whether under any rule of
construction or otherwise. On the contrary, this Guaranty has been reviewed by each of Guarantor, the Credit Parties and their respective counsel. To the extent permitted by applicable law, in case of
any ambiguity or uncertainty, this Guaranty shall be construed and interpreted according to the ordinary meaning of the words used to accomplish fairly the purposes and intentions of all parties
hereto. 

    8.12  Modification.  This Guaranty is intended by
Guarantor and the Credit Parties to be the final, complete, and exclusive expression of the agreement between them. This Guaranty supersedes any and all prior oral or written agreements relating to
the subject matter hereof. No modification, rescission, waiver, release or amendment of any provision of this Guaranty shall be made, except by a written agreement signed by Guarantor and a duly
authorized officer of the Agent on behalf of the Credit Parties. 

    8.13  Captions.  The captions contained in this Guaranty
are for convenience only, are without substantive meaning and should not be construed to modify, enlarge or restrict any provision. 

11

 

    IN
WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed by Guarantor's duly authorized officers as of the date first written above. 

	GUARANTOR:	 	3COM CORPORATION,

a Delaware corporation
	

 	
 	

By	
 	

	 	 	Title:	 	

NOTICE: THIS GUARANTY CONTAINS WAIVERS OF VARIOUS RIGHTS, BENEFITS, AND DEFENSES WHICH THE PARTY EXECUTING THIS GUARANTY POSSESSES. THESE RIGHTS, BENEFITS, AND DEFENSES, IF NOT
SO WAIVED, MIGHT OTHERWISE ALLOW THE PARTY EXECUTING THIS GUARANTY TO AVOID OR LIMIT SUCH PARTY'S LIABILITY UNDER THIS GUARANTY EITHER IN WHOLE OR IN PART. THIS GUARANTY ALSO CONTAINS A WAIVER BY THE
PARTY EXECUTING THIS GUARANTY OF SUCH PARTY'S RIGHT TO TRIAL BY JURY.

12

QuickLinks

Exhibit 10.17

CONTINUING GUARANTY

R E C I T A L S

A G R E E M E N TPrepared by MERRILL CORPORATION

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Exhibit 10.18    
  

 
 

INTERCOMPANY SUBORDINATION AGREEMENT    
  

    THIS INTERCOMPANY SUBORDINATION AGREEMENT (this "Agreement"),
dated as of November 28, 2001, is made among the Obligors (as defined below), and BANK OF AMERICA, N.A., as agent
("Agent") for itself and the lenders ("Lenders") party to the Credit Agreements (as defined below), in
light of the following: 

    WHEREAS, 3Com Corporation, a Delaware corporation ("3Com"), on the one hand, and Agent
and Lenders (collectively, and together with any successors or assigns of any of the foregoing, the "Credit Parties"), on the other hand, are parties to
that certain Credit Agreement, dated as of even date herewith (as amended, modified, renewed, extended, or replaced from time to time, the "US Credit
Agreement"), pursuant to which the Credit Parties have agreed to make certain financial accommodations to 3Com; 

    WHEREAS, 3Com Technologies, an exempted limited liability company incorporated in the Cayman Islands ("3Com
Tech"), and 3Com Europe Limited, a company incorporated in England and Wales with registered number 2600346 ("3Com Europe"), on
the one hand, and the Credit Parties, on the other hand, are parties to that certain Credit Agreement, dated as of even date herewith (as amended, modified, renewed, extended, or replaced from time to
time, the "International Credit Agreement"; the International Credit Agreement, together with the US Credit Agreement, are collectively referred to
herein as the "Credit Agreements"), pursuant to which the Credit Parties have agreed to make certain financial accommodations to 3Com Tech and 3Com
Europe; 

    WHEREAS, each Obligor has made or may make certain loans or advances from time to time to one or more other Obligors, or such other
Obligors may otherwise be indebted to such Obligor; and 

    WHEREAS, each Obligor has agreed to subordinate in favor of the Credit Parties all indebtedness of the other Obligors owing to such
Obligor, upon the terms and subject to the conditions set forth in this Agreement. 

    NOW, THEREFORE, in consideration of the mutual promises, covenants, conditions, representations, and warranties set forth herein and
for other good and valuable consideration, the parties hereto agree as follows: 

    SECTION
1.  Definitions; Interpretation.  

    (a)  Terms Defined in Credit Agreements.  All capitalized terms used in this Agreement and not otherwise
defined herein shall have the meanings assigned to them in the Credit Agreements. 

    (b)  Certain Defined Terms.  As used in this Agreement, the following terms shall have the following
meanings: 

    "Insolvency Events" has the meaning set forth in Section 3. 

    "Non-US Obligors" means, individually and collectively, all Obligors that are not US Obligors. 

    "Obligors" means, individually and collectively, 3Com, 3Com Tech, 3Com Europe, 3Com Holdings Limited, 3Com Asia Pacific Rim
Pte. Ltd., 3Com IFSC (Ireland), 3Com Ventures, Inc., 3Com U.K Holdings Limited, and any Subsidiary acquired or created after the Closing Date and designated to the Agent as a Restricted
Subsidiary by Borrower. 

    "Senior Debt" means: (a) as applied to any US Obligor, the Obligations on a cumulative basis under both Credit Agreements; and
(b) as applied to any Non-US Obligor, the Obligations under the International Credit Agreement only. 

    "Subordinated Debt" means, with respect to each Obligor, all indebtedness, liabilities, and other obligations of the other Obligors
(individually and jointly with other Obligors) owing to 

 

such Obligor in respect of any and all loans or advances made by such Obligor to such other Obligor, or any other indebtedness of such other Obligor to such Obligor (other than trade debt), whether
now existing or hereafter arising, and whether due or to become due, absolute or contingent, liquidated or
unliquidated, determined or undetermined, including all fees and all other amounts payable by such other Obligor to such Obligor under or in connection with any documents or instruments related
thereto. The foregoing notwithstanding, "Subordinated Debt" shall not include any indebtedness, liabilities and other obligations that a US Obligor owes to any Non-US Obligor. 

    "Subordinated Debt Payment" means any payment or distribution by or on behalf of any Obligor, directly or indirectly, for or on account
of any Subordinated Debt, including, without limitation, any payment or distribution of assets of such Obligor of any kind or character, whether in cash, property, or securities, made in connection
with a purchase, redemption, or other acquisition of Subordinated Debt, made as a result of any collection, sale, or other disposition of Collateral, or made by setoff, exchange, or in any other
manner. 

    "US Obligors" means, individually and collectively, all Obligors organized under the laws of any jurisdiction of the United States. 

    (c)  Interpretation.  Unless the context of this Agreement clearly requires otherwise, references to the
plural include the singular, references to the singular include the plural, the term "including" is not limiting, and the term "or" has, except where otherwise indicated, the inclusive meaning
represented by the phrase "and/or." The words "hereof," "herein," "hereby," "hereunder," and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of
this Agreement. Section, subsection, clause, schedule, and exhibit references are to this Agreement unless otherwise specified. References to agreements and other contractual instruments shall be
deemed to include all subsequent amendments and other modifications thereto. References to statutes or regulations are to be construed as including all statutory and regulatory provisions
consolidating, amending, or replacing the statute or regulation referred to. The captions and headings are for convenience of reference only and shall not affect the construction of this Agreement. If
there exists any inconsistency between the terms of either Credit Agreement and this Agreement or if the terms, conditions, or obligations under this Agreement are any more restrictive on any Obligor,
then the terms of the applicable Credit Agreement shall prevail, so that nothing herein contained shall impose any greater or more onerous liability or restriction on any Obligor than is imposed on
any Obligor under the applicable Credit Agreement. To the extent any provision of the applicable Credit Agreement addresses the same subject matter covered by a provision hereunder, actions or
omissions which are expressly permitted or not prohibited by the terms of such Credit Agreement shall not constitute a breach of the express or implied terms of this Agreement. 

    SECTION
2.  Subordination to Payment of Senior Debt.  Except as otherwise provided herein, as to each
Obligor, all payments on account of the Subordinated Debt shall be subject, subordinate, and junior, in right of payment and exercise of remedies, to the extent and in the manner set forth herein, to
the prior payment, in full, in cash or cash equivalents, of the Senior Debt applicable to each Obligor. 

    SECTION
3.  Subordination Upon Any Distribution of Assets of the Obligors.  As to each Obligor, if, after
a Liquidity Trigger Event, there shall be any payment or distribution of assets of any other Obligor to such Obligor of any kind or character, whether in cash, property, or securities, upon the
dissolution, winding up, or total or partial liquidation or reorganization, readjustment, arrangement, or similar
proceeding relating to such other Obligor or its property, whether voluntary or involuntary, or in bankruptcy, insolvency, receivership, arrangement, or similar proceedings or upon an assignment for
the benefit of creditors, or upon any other marshaling or composition of the assets and liabilities of such other Obligor, or otherwise (such events, collectively, the
"Insolvency Events"): (i) all amounts 

2

 

owing on account of the Senior Debt applicable to such Obligor shall first be paid, in full, in cash, or payment provided for in cash or in cash equivalents, before any Subordinated Debt Payment is
made; and (ii) to the extent permitted by applicable law, any Subordinated Debt Payment to which such Obligor would be entitled except for the provisions hereof, shall be paid or delivered by
the trustee in bankruptcy, receiver, assignee for the benefit of creditors, or other liquidating agent making such payment or distribution directly to Agent, for the ratable benefit of the Credit
Parties, for application to the payment of the Senior Debt applicable to such Obligor in accordance with clause (i), after giving effect to any concurrent payment or distribution or provision
therefor to Agent in respect of such Senior Debt applicable to such Obligor. 

    SECTION
4.  Payments on Subordinated Debt.  

    (a)  Permitted Payments.  So long as no Liquidity Trigger Event has occurred and is continuing, each
Obligor may make, and each other Obligor shall be entitled to accept and receive, any Subordinated Debt Payment. 

    (b)  No Payment Upon Liquidity Trigger Event.  Upon the occurrence of a Liquidity Trigger Event, and
until such Liquidity Trigger Event is cured or waived, each Obligor shall not make, and each other Obligor shall not accept or receive, any Subordinated Debt Payment. Notwithstanding anything to the
contrary in this Agreement, from and after a Liquidity Trigger Event, no US Obligors shall make any payments to any Non-US Obligor, on account of any indebtedness, liabilities and other
obligations of such US Obligor to such Non-US Obligor. 

    SECTION
5.  Subordination of Remedies.  Until all Senior Debt, as applicable to each Obligor, has been
repaid in full, in cash or cash equivalents, and all commitments of Agent or any member of the Credit Parties to extend credit under the Credit Agreements and the other Loan Documents have been
irrevocably terminated, such Obligors shall not, after a Liquidity Trigger Event, without the prior written consent of Agent: 

    (a) accelerate,
make demand, or otherwise make due and payable prior to the original due date thereof any Subordinated Debt or bring suit or institute any other actions
or proceedings to enforce its rights or interests in respect of the obligations of any other Obligor owing to such Obligor; 

    (b) exercise
any rights under or with respect to guaranties of the Subordinated Debt by any Obligor, if any; 

    (c) exercise
any rights to set-offs and counterclaims in respect of any indebtedness, liabilities, or obligations of such Obligor to any other Obligor
against any of the Subordinated Debt; or 

    (d) commence,
or cause to be commenced, or join with any creditor other than a member of the Credit Parties in commencing, any bankruptcy, insolvency, or receivership
proceeding against any other Obligor. 

    SECTION
6.  Payment Over to Agent.  In the event that, notwithstanding the provisions of  Sections 3, 4, and 5, any Subordinated Debt Payments
shall be received in contravention of such Sections 3, 4, and 5
by any Obligor before all Senior Debt applicable to such Obligor is paid, in full, in cash or cash equivalents, such Subordinated Debt Payments shall be held in trust for the
benefit of the Credit Parties and shall be paid over or delivered to Agent for the ratable benefit of the Credit Parties for application to the payment, in full, in cash or cash equivalents of all
Senior Debt remaining unpaid to the extent necessary to give effect to such Sections 3, 4, and 5, after giving effect to any concurrent payments or
distributions to Agent in respect of the Senior Debt applicable to such Obligor. 

    SECTION
7.  Authorization to Agent.  If, while any Subordinated Debt is outstanding, there is an
occurrence and continuation of an Event of Default with respect to any other Obligor or its property: (i) to the extent of any outstanding Senior Debt, as applicable to each Obligor, each
Obligor hereby 

3

 

irrevocably authorizes and empowers Agent (in the name of such Obligors or otherwise), but Agent shall have no obligation, to demand, sue for, collect, and receive every payment or distribution in
respect of such Obligors' respective Subordinated Debt and give acquittance therefor and to file claims and proofs of claim and take such other action (including voting the Subordinated Debt) as it
may deem necessary or advisable for the exercise or enforcement of any of the rights or interests of the Credit Parties; and (ii) to the extent of any outstanding Senior Debt, as applicable to
each Obligor, each Obligor shall promptly take such action as Agent reasonably may request (A) to collect the Subordinated Debt for the account of the Credit Parties and to file appropriate
claims or proofs of claim in respect of the Subordinated Debt, (B) to execute and deliver to Agent such powers of attorney, assignments, and other instruments as it may request to enable it to
enforce any and all claims with respect to the Subordinated Debt, and (C) to collect and receive any and all Subordinated Debt Payments. 

    SECTION
8.  Certain Agreements of Each Obligor.  

    (a)  No Benefits.  Each Obligor understands that there may be various agreements between the Credit
Parties and any other Obligor evidencing and governing the Senior Debt applicable to each Obligor, and each Obligor acknowledges and agrees that such agreements are not intended to confer any benefits
on such Obligor and that neither Agent nor any member of the Credit Parties shall have any obligation to such Obligor or any other Person to exercise any rights, enforce any remedies, or take any
actions which may be available to them under such agreements. 

    (b)  No Interference.  Each Obligor acknowledges that certain, but not all, of the other Obligors have
granted to Agent on behalf of the Credit Parties a security interest in certain portions of such Obligor's assets, and agrees not to interfere with or in any manner oppose a disposition of any
Collateral by Agent for the ratable benefit of the Credit Parties in accordance with applicable law. 

    (c)  Reliance by Credit Parties.  Each Obligor acknowledges and agrees that the Credit Parties will have
relied upon and will continue to rely upon the subordination provisions provided for herein and the other provisions hereof in entering into the applicable Loan Documents and making or issuing the
Advances thereunder. 

    (d)  Waivers.  Except as provided under the applicable Credit Agreement, each Obligor waives any and all
notice of the incurrence of the Senior Debt applicable to such Obligor or any part thereof and any right to require marshaling of assets. 

    (e)  Obligations of Each Obligor Not Affected.  Each Obligor agrees that at any time and from time to
time, without notice to or the consent of such Obligor, without incurring responsibility to such Obligor, and without impairing or releasing the subordination provided for herein or otherwise
impairing the rights of Agent or the Credit Parties hereunder: (i) the time for any other Obligor's performance of or compliance with any of its agreements contained in the applicable Loan
Documents may be extended or such performance or compliance may be waived by Agent; (ii) the agreements of any other Obligor with respect to the applicable Loan Documents may from time to time
be modified by such other Obligor and Agent for the purpose of adding any requirements thereto or changing in any manner the rights and obligations of such other Obligor or Agent thereunder;
(iii) the manner, place, or terms for payment of Senior Debt or any portion thereof may be altered or the terms for payment extended, or the Senior Debt may be renewed in whole or in part;
(iv) the maturity of the Senior Debt may be accelerated in accordance with the terms of any present or future agreement by any other Obligor and any member of the Credit Parties; (v) any
Collateral may be sold, exchanged, released, or substituted and any Lien in favor of Agent on behalf of the Credit Parties may be terminated, subordinated, or fail to be perfected or become
unperfected; (vi) any Person liable in any manner for Senior Debt may be discharged, released, or substituted; and (vii) all other rights against the other Obligors, any other Person, or 

4

 

with respect to any Collateral may be exercised (or Agent may waive or refrain from exercising such rights). 

    (f)  Rights of Credit Parties Not to Be Impaired.  No right of the Credit Parties to enforce the
subordination provided for herein or to exercise its other rights hereunder shall at any time in any way be prejudiced or impaired by any act or failure to act by any Obligor or any member of the
Credit Parties hereunder or under or in connection with the other applicable Loan Documents or by any noncompliance by such other Obligor with the terms and provisions and covenants herein or in any
other applicable Loan Document, regardless of any knowledge thereof the Credit Parties may have or otherwise be charged with. 

    (g)  Financial Condition of the Obligors.  Except as provided under the applicable Credit Agreement, each
Obligor shall not have any right to require Agent or any member of the Credit Parties to obtain or disclose any information with respect to: (i) the financial condition or character of any
other Obligor or the ability of such other Obligor to pay and perform Senior Debt; (ii) the Senior Debt; (iii) the Collateral or other security for any or all of the Senior Debt;
(iv) the existence or nonexistence of any guarantees of, or any other subordination agreements with respect to, all or any part of the Senior Debt; or (v) any action or inaction on the
part of Agent or any other Person; or (vi) any other matter, fact, or occurrence whatsoever. 

    (h)  Acquisition of Liens or Guaranties.  Each Obligor shall not, without the prior consent of Agent,
acquire any Lien against any Collateral (other than Permitted Liens) not owned by such Obligor. Each Obligor shall not, without prompt notice to Agent, accept any guaranties for the Subordinated Debt
which are not currently existing or being entered into in connection with the transactions contemplated by the applicable Loan Documents. 

    SECTION
9.  Subrogation.  

    (a)  Subrogation.  Until the payment and performance in full of all Senior Debt applicable to such
Obligor, each Obligor shall not directly or indirectly exercise any rights that it may acquire by way of subrogation under this Agreement, by any payment or distribution to Agent hereunder or
otherwise. Upon the payment and performance in full of all Senior Debt applicable to such Obligor, each Obligor shall be subrogated to the rights of the Credit Parties to receive payments or
distributions applicable to the Senior Debt until the Subordinated Debt shall be paid in full. For the purposes of the foregoing subrogation, no payments or distributions by any Obligor to Agent, for
the ratable benefit of the Credit Parties, of any cash, property, or securities to which any other Obligor would be entitled except for the provisions of Section 3, 4,
or 5 shall, as among such Obligor, its creditors (other than the Credit Parties), and the other Obligors, be deemed to be a payment by such Obligor to or on account of the
Senior Debt. 

    (b)  Payments Over to the Obligors.  If any payment or distribution to which any Obligor would otherwise
have been entitled but for the provisions of Section 3, 4, or 5 shall have been applied pursuant to the
provisions of Section 3, 4, or 5 to the payment of all amounts payable under the Senior Debt applicable to such Obligor, such Obligor shall be
entitled to receive from Agent any payments or distributions received by Agent in excess of the amount sufficient to pay in full all amounts payable under or in respect of such Senior Debt. If any
such excess payment is made to Agent, Agent shall promptly remit such excess to such Obligor and until so remitted shall hold such excess payment for the benefit of such Obligor. To the extent Agent
remits any payments to an Obligor hereunder, such Obligor shall indemnify the Agent and the Credit Parties and hold the Agent and the Credit Parties harmless from and against any claims made by any
Person (including a trustee in bankruptcy) to recover from Agent or any member of the Credit Parties such payment or distribution that gave rise to the remittance made to the Obligor. 

5

 

    SECTION
10.  Continuing Agreement; Reinstatement.  

    (a)  Continuing Agreement.  This Agreement is a continuing agreement of subordination and shall continue
in effect and be binding upon each Obligor until payment and performance in full of the Senior Debt applicable to such Obligor and: (i) with respect to Non-US Obligors, termination
of the International Credit Agreement, and with respect to US Obligors, termination of each Credit Agreement. The subordinations, agreements, and priorities set forth herein shall remain in full force
and effect regardless of whether any party hereto in the future seeks to rescind, amend, terminate, or reform, by litigation or otherwise, its respective agreements with any other Obligor. 

    (b)  Reinstatement.  This Agreement shall continue to be effective or shall be reinstated, as the case
may be, if, for any reason, any payment of the Senior Debt by or on behalf of the other Obligor shall be rescinded or must otherwise be restored by Agent, whether as a result of an Insolvency Event or
otherwise. 

    SECTION
11.  Transfer of Subordinated Debt.  Each Obligor may not assign or transfer its rights and
obligations in respect of the Subordinated Debt without: (i) prior written notice to Agent, and (ii) such non-Obligor transferee or assignee, as a condition to acquiring an
interest in the Subordinated Debt, shall agree to be bound hereby, in form satisfactory to Agent. 

    SECTION
12.  Obligations of the Obligors Not Affected.  The provisions of this Agreement are intended
solely for the purpose of defining the relative rights of each Obligor against the other Obligors, on the one hand, and of the Credit Parties against such other Obligors, on the other hand. Nothing
contained in this Agreement shall (i) impair, as between each Obligor and each other Obligor, the obligation of such other Obligor to pay its obligations with respect to the Subordinated Debt
as and when the same shall become due and payable, or (ii) otherwise affect the relative rights of each Obligor against each other Obligor, on the one hand, and of the creditors (other than the
Credit Parties) of such other Obligor against such other Obligor, on the other hand. 

    SECTION
13.  Endorsement of Obligor Documents; Further Assurances and Additional Acts.  

    (a)  Endorsement of Obligor Documents.  At the request of Agent, all documents and instruments evidencing
any of the Subordinated Debt, if any, shall be endorsed with a legend noting that such documents and instruments are subject to this Agreement, and each Obligor shall promptly deliver to Agent
evidence of the same. 

    (b)  Further Assurances and Additional Acts.  Each Obligor shall execute, acknowledge, deliver, file,
notarize, and register at its own expense all such further agreements, instruments, certificates, financing statements, documents, and assurances, and perform such acts as Agent reasonably shall deem
necessary or appropriate to effectuate the purposes of this Agreement, and promptly provide Agent with evidence of the foregoing reasonably satisfactory in form and substance to Agent. 

    SECTION
14.  Notices.  All notices and other communications provided for hereunder shall, unless
otherwise stated herein, be in writing (including by facsimile transmission) and shall be mailed, sent, or delivered in accordance with the notice provisions contained in the applicable Credit
Agreement. For the purposes hereof, the address of each party hereto shall be as set forth in the applicable Credit Agreement or, as to any such party, such other address as shall be designated by
such party in a written notice to the other parties hereto. 

    SECTION
15.  No Waiver; Cumulative Remedies.  No failure on the part of Agent to exercise, and no delay
in exercising, any right, remedy, power, or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power, or privilege preclude any
other or further exercise thereof or the exercise of any other right, remedy, power, or privilege. 

6

 

The rights and remedies under this Agreement are cumulative and not exclusive of any rights, remedies, powers, and privileges that may otherwise be available to Agent. 

    SECTION
16.  Costs and Expenses.  

    (a)  Payments by the Obligors.  Each of the Obligors jointly and severally agrees to pay to Agent on
demand all reasonable costs and expenses of Agent or the Credit Parties, and the reasonable fees and disbursements of counsel, in connection with the negotiation, preparation, execution, delivery,
administration, enforcement or attempted enforcement of, and preservation of rights or interests under, this Agreement (including any amendments, modifications, or waivers of the terms hereof),
including
any losses, costs and expenses sustained by Agent or the Credit Parties as a result of any failure by any Obligor to perform or observe its obligations contained in this Agreement. 

    SECTION
17.  Survival.  All covenants, agreements, representations and warranties made in this Agreement
shall, except to the extent otherwise provided herein, survive the execution and delivery of this Agreement, and shall continue in full force and effect so long as any Senior Debt remains unpaid.
Without limiting the generality of the foregoing, the obligations of each Obligor under Section 16 shall survive the satisfaction of the Senior
Debt. 

    SECTION
18.  Benefits of Agreement.  This Agreement is entered into for the sole protection and benefit
of the parties hereto and their successors and assigns, and no other Person shall be a direct or indirect beneficiary of, or shall have any direct or indirect cause of action or claim in connection
with, this Agreement. 

    SECTION
19.  Binding Effect.  This Agreement shall be binding upon, inure to the benefit of and be
enforceable by each Obligor and Agent and their respective successors and permitted assigns. 

    SECTION
20.  Governing Law; Choice of Forum; Service of Process.  

    (i)  THIS
AGREEMENT SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO THE
CONFLICT OF LAWS PROVISIONS PROVIDED THAT PERFECTION ISSUES WITH RESPECT TO ARTICLE 9 OF THE UCC MAY GIVE EFFECT TO APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTH IN ARTICLE 9 OF THE UCC) OF THE
STATE OF CALIFORNIA; PROVIDED THAT THE CREDIT PARTIES SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 

    (ii) ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA OR OF THE UNITED STATES OF AMERICA LOCATED IN
SANTA CLARA COUNTY, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE OBLIGORS, THE AGENT, AND THE LENDERS CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE OBLIGORS, THE AGENT, AND THE LENDERS IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON
THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO.
NOTWITHSTANDING THE FOREGOING: (1) THE CREDIT PARTIES SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OBLIGOR, OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION THE
CREDIT PARTIES DEEM NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE 

7

 

COLLATERAL OR OTHER SECURITY FOR THE SENIOR DEBT AND (2) EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE IMMEDIATELY PRECEDING SENTENCE MAY HAVE TO BE
HEARD BY A COURT LOCATED OUTSIDE THOSE JURISDICTIONS. 

    (iii) EACH
OF THE OBLIGORS HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL
(RETURN RECEIPT REQUESTED) DIRECTED TO SUCH OBLIGOR AT ITS ADDRESS SET FORTH IN SECTION 14 AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO
DEPOSITED IN THE U.S. MAILS POSTAGE PREPAID. NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF CREDIT PARTIES TO SERVE LEGAL PROCESS BY ANY OTHER MANNER PERMITTED BY LAW. 

    (iv) NOTWITHSTANDING
ANY OTHER PROVISION OF THIS AGREEMENT TO THE CONTRARY, ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES, ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER APPLICABLE LOAN DOCUMENT INCLUDING ANY CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL AT THE REQUEST OF EITHER PARTY BE DETERMINED BY BINDING ARBITRATION. The arbitration
shall be conducted in accordance with the United States Arbitration Act (Title 9, U.S. Code), notwithstanding any choice of law provision in this AGREEMENT, and under the Commercial Rules of the
American Arbitration Association ("AAA"). The arbitrator(s) shall give effect to statutes of limitation in determining any claim. Any controversy concerning whether an issue is arbitrable shall be
determined by the arbitrator(s). Judgment upon the arbitration award may be entered in any court having jurisdiction. The institution and maintenance of an action for judicial relief or pursuant to a
provisional or ancillary remedy shall not constitute a waiver of the right of either party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such
action for judicial relief. 

    (v) Notwithstanding
the provisions of (d) above, no controversy or claim shall be submitted to arbitration without the consent of all parties if, at the time of
the proposed submission, such controversy or claim arises from or related to an Guaranteed Obligation which is secured by real property collateral (exclusive of real estate space lease assignments).
If all the parties do not consent to submission of such a controversy or claim to arbitration, the controversy or claim shall be determined as provided in Section 20(v). 

    (vi) At
the request of either party a controversy or claim which is not submitted to arbitration as provided and limited in Section 20(iv) and
(v) shall be determined by judicial reference. If such an election is made, the parties shall designate to the court a referee or referees selected under the auspices of the AAA in the same
manner as arbitrators are selected in AAA-sponsored proceedings.
The presiding referee of the panel, or the referee if there is a single referee, shall be an active attorney or retired judge. Judgment upon the award rendered by such referee or referees shall be
entered in the court in which such proceeding was commenced. 

    (vii) No
provision of Sections (iv) through (vii) shall limit the right of the Credit Parties to exercise self-help remedies such as setoff,
foreclosure against or sale of any real or personal property collateral or security, or obtaining provisional or ancillary remedies from a court of competent jurisdiction before, after, or during the
pendency of any arbitration or other proceeding. The exercise of a remedy does not waive the right of either party to resort to arbitration or reference. At the Agent's and/or Security Trustee's
option, foreclosure under a 

8

 

deed of trust or mortgage may be accomplished either by exercise of power of sale under the deed of trust or mortgage or by judicial foreclosure. 

    SECTION
21.  WAIVER OF JURY TRIAL.  SUBJECT TO THE PROVISIONS OF SECTION 20(iv), THE OBLIGORS, THE AGENT,
AND THE LENDERS EACH IRREVOCABLY WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED
HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO
CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE OBLIGORS, THE AGENT, AND THE LENDERS EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING
THE FOREGOING, THE PARTIES FURTHER AGREE THAT ITS RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART,
TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS A AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. 

    SECTION
22.  Entire Agreement; Amendments and Waivers.  

    (a)  Entire Agreement.  This Agreement constitutes the entire agreement of each of the Obligors and Agent
on behalf of the Credit Parties with respect to the matters set forth herein and supersedes any prior agreements, commitments, drafts, communications, discussions, and understandings, oral or written,
with respect thereto. 

    (b)  Amendments and Waivers.  No amendment to any provision of this Agreement shall in any event be
effective unless the same shall be in writing and signed by each of the Obligors and Agent; and no waiver of any provision of this Agreement, or consent to any departure by any Obligor therefrom,
shall in any event be effective unless the same shall be in writing and signed by Agent. Any such amendment, waiver, or consent shall be effective only in the specific instance and for the specific
purpose for which given. 

    SECTION
23.  Conflicts.  In case of any conflict or inconsistency between any terms of this Agreement, on
the one hand, and any documents or instruments in respect of the Subordinated Debt, on the other hand, then the terms of this Agreement shall control. 

    SECTION
24.  Severability.  Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under all applicable laws and regulations. If, however, any provision of this Agreement shall be prohibited by or invalid under any such law or regulation in
any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall
be ineffective and invalid only to the extent of such prohibition or invalidity without affecting the remaining provisions of this Agreement or the validity or effectiveness of such provision in any
other jurisdiction. 

    SECTION
25.  Interpretation.  This Agreement is the result of negotiations between, and has been reviewed
by the respective counsel to, the Obligors and Agent and is the product of all parties hereto. Accordingly, this Agreement shall not be construed against any party merely because of such party's
involvement in the preparation hereof. 

    SECTION
26.  Counterparts; Telefacsimile Execution.  This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and 

9

 

the same agreement. Delivery of an executed counterpart of this Agreement by telefacsimile shall be equally effective as delivery of an executed original counterpart of this Agreement. Any party
delivering an executed counterpart of this Agreement by telefacsimile also shall deliver an original executed counterpart but the failure to deliver an original executed counterpart shall not affect
the validity, enforceability, and binding effect of this Agreement. This Agreement shall become effective as to each Obligor upon the execution and delivery of a counterpart hereof by such Obligor
(whether or not a counterpart hereof shall have been executed and delivered by any other Obligor). 

    SECTION
27.  Termination of Agreement.  Upon final payment and performance in full, in cash or cash
equivalents, of the Senior Debt, this Agreement shall terminate and Agent shall promptly execute and
deliver to each Obligor such documents and instruments as shall be necessary to evidence such termination; provided, however, that the obligations of
each Obligor under Section 16 shall survive such termination until satisfaction thereof. 

[Signature
page to follow.] 

10

 

    IN WITNESS WHEREOF, the undersigned has executed and delivered this Agreement as of the date first written above. 

	 	 	3COM CORPORATION,
 a Delaware corporation
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	

 	
 	
3COM TECHNOLOGIES,
 an exempted limited liability company incorporated in the Cayman Islands
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	

 	
 	
3COM EUROPE LIMITED,
 a company incorporated in England and Wales with registered number 2600346
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	

 	
 	
3COM HOLDINGS LIMITED.,
 
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	

 	
 	
3COM ASIA PACIFIC RIM PTE. LTD.,
 
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	

 	
 	
3COM IFSC (IRELAND),
 
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	

 	
 	
3COM VENTURES, INC.,
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

11

 

	

 	
 	
3COM U.K HOLDINGS LIMITED,
 
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	

 	
 	
BANK OF AMERICA, N.A.,
 as Agent and a Lender
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

12

QuickLinks

Exhibit 10.18

INTERCOMPANY SUBORDINATION AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}]]