Document:

Letter Agreement regarding severance benefits of James McCluney

 Exhibit 10.4 

 

							
	 

	  	 3333 Susan Street
 Costa Mesa,
CA 92626
	  	 T (714) 662-5600
 F
(714)241-0792
	  	emulex.com

 August 21, 2012 
 Mr. James M. McCluney 
 [Home Address] 

Dear Mr. McCluney: 
 This
letter agreement, effective January 1, 2013 (this “Agreement”), is intended to memorialize our prior understanding regarding your severance benefits in the event of a qualifying termination of your employment with Emulex
Corporation (“Emulex”) outside of the change in control context. Accordingly, we agree as follows: 
  

	1.	Termination of Employment. In the event that your employment is terminated by Emulex without “Cause” (as such term is defined in that certain
Key Employee Retention Agreement between you and Emulex, effective as of January 1, 2013 (the “KERA”), or by you for “Good Reason” (as such term is defined in the KERA), and in either case at a time during
which (a) Emulex is not party to an agreement, the consummation of the transactions contemplated by which would result in the occurrence of a “Change in Control” (as such term is defined in the KERA) and (b) a Change in
Control has not occurred within the preceding 24 months, then, subject to the terms and conditions set forth in this Agreement, you will be eligible to receive the Accrued Rights and the Severance Benefits (in each case, as defined below).

  

	2.	Accrued Rights. For purposes of this Agreement, “Accrued Rights” means (a) your base salary then in effect, prorated to the date of
termination, payable in accordance with the normal payroll practices of Emulex; (b) any unreimbursed business expenses incurred through the date of termination, payable in accordance the applicable expense reimbursement policy of Emulex; and
(c) all other compensation and benefits accrued through the date of termination, including, without limitation, any vested equity compensation awards and any unused accrued vacation time, payable in accordance with the terms of the applicable
Emulex program or policy. 

  

	3.	 Severance Benefits. For purposes of this Agreement, “Severance Benefits” means: (i) a lump sum cash amount equal to one
year of your base salary (at the rate in effect at the time of your termination of employment (or, if greater, as in effect immediately prior to the occurrence of an event or condition constituting Good Reason); (ii) any deferred incentive
bonuses1; (iii) a lump sum cash amount equal to 12
multiplied by the full monthly cost of maintaining health, dental and vision benefits for you (and your spouse and eligible dependents) as of the date of your termination of employment under a group health plan of Emulex for purposes of the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended; and (iv) subject to your continued compliance with the terms of 

  
  

	1 	 Emulex does not currently offer any “deferred incentive bonuses” under its Executive Incentive Plan, but may do so in the future.
“Deferred incentive bonus” means any annual incentive bonus (based on performance criteria) that is deferred based on mutual agreement between you and the Emulex Board Compensation Committee (as originally defined in section 2.2 of your
prior employment agreement with Vixel Corporation, effective April 26, 1999). 

	 	
your Employee Creation and Non-Disclosure Agreement with Emulex, one year of continued time vesting with respect to any outstanding time-based equity awards previously granted to you by Emulex,
with each applicable stock option remaining exercisable for three months following the date on which such stock option vests (the “Continued Vesting”). 

 

	4.	 Timing & Release. Any Severance Benefits to which you are entitled pursuant to this Agreement will be paid or provided to you on the
60th day following your termination of employment (the
“Severance Pay Date”); provided that (a) you execute a general release of claims substantially in the form attached to the KERA (the “Release”) and (b) the executed Release becomes effective (with
all periods for revocation therein having expired) prior to the Severance Pay Date; and provided further that no Continued Vesting will occur prior to the Severance Pay Date (but any Continued Vesting that would otherwise have occurred prior
to the Severance Pay Date in the absence of this proviso will be deemed to have occurred on the Severance Pay Date). 

  

	5.	Section 409A. 

Delay for Specified Employees. Notwithstanding any provision of this Agreement to the contrary, if you are a “specified
employee” (within the meaning of Reg. 1.409A-1(i) and determined pursuant to procedures adopted by Emulex) at the time of your separation from service, and if any portion of the payments or benefits to be received by you under this Agreement
upon your separation from service would be considered nonqualified deferred compensation under Section 409A of the U.S. Internal Revenue Code of 1986 (the “Code”) and any proposed, temporary or final regulation, or any other
guidance, promulgated with respect to Section 409A of the Code by the U.S. Department of Treasury or the Internal Revenue Service (“Section 409A”), then each portion of such payments that would otherwise be payable pursuant to
this Agreement during the six-month period immediately following your separation from service shall instead be paid or made available on the earlier of (i) the first day of the seventh month following the date you incur a separation from
service, or (ii) your death. 
 Separation from Service. A termination of employment shall not be deemed to have
occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or following a termination of employment unless such termination is also a “separation from
service” (within the meaning of Section 409A). 
 Reimbursement. With respect to any amount of expenses eligible
for reimbursement or the provision of any in-kind benefits under this Agreement, to the extent such payment or benefit would be considered deferred compensation under Section 409A or is required to be included in your gross income for federal
income tax purposes, such expenses (including, without limitation, expenses associated with in-kind benefits) will be reimbursed by Emulex no later than December 31st of the year following the year in which you incur the related expenses. In no
event shall the reimbursements or in-kind benefits to be provided by Emulex in one taxable year affect the amount of reimbursements or in-kind benefits to be provided in any other taxable year, nor shall your right to reimbursement or in-kind
benefits be subject to liquidation or exchange for another benefit. 

  
 -2-

 Separate Payments. Each payment under this Agreement shall be considered a
“separate payment” and not one of a series of payments for purposes of Section 409A. 
  

	6.	Entire Agreement. This Agreement constitutes the entire agreement between you and Emulex with respect to the subject matter hereof, and (except for the KERA)
supersedes all prior agreements and understandings relating to the subject matter hereof (including, without limitation, your employment offer letter from Emulex and the addendum to that offer letter, dated as of November 14, 2003).

  

	7.	General Provisions. 

Governing Law. This Agreement will be governed by and construed and enforced according to the laws of the State of California,
without regard to conflicts of laws principles thereof. 
 Amendment. This Agreement may not be amended or modified except
by an instrument in writing signed by both parties to this Agreement. 
 No Mitigation or Offset. You will not be required
to seek other employment or otherwise mitigate damages in order to receive any amount due to you following termination of employment, and amounts payable to you will not be offset by any other compensation earned by you following your termination of
employment. 
 Binding Effect. This Agreement will inure to the benefit of and be binding upon the heirs, executors,
administrators, successors and assigns of the parties, including, without limitation, any successor to Emulex. If you die while any amount(s) would still be payable to you hereunder if you had continued to live, all such amounts, unless otherwise
provided herein, will be paid in accordance with the terms of this Agreement to the executor, personal representative or administrators of your estate. If you are unable to care for your affairs when a payment is due under this Agreement, payment
may be made directly to your legal guardian or personal representative. 
 Assignment. Except as otherwise provided herein
or by applicable law: (a) none of your rights or interests under this Agreement will be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including, without limitation, by execution, levy,
garnishment, attachment, pledge or in any other manner; (b) no attempted assignment or transfer thereof will be effective; and (c) none of your rights or interests under this Agreement will be liable for, or subject to, any of your
obligations or liabilities. 
 Severability. If any provision of this Agreement is held invalid or unenforceable, such
invalidity or unenforceability will not affect any other provisions hereof, and this Agreement will be construed and enforced as if such provisions had not been included. 

  
 -3-

 Notices. Any notice or other communication required or permitted pursuant to the
terms of this Agreement shall have been duly given when delivered or mailed by United States Mail, first class, postage prepaid, addressed to the intended recipient at his, her or its last known address. 

Withholding. All payments pursuant to this Agreement will be reduced by applicable tax and other withholding, and will be subject
to applicable tax reporting, as determined by Emulex. 
 Headings. This Agreement’s headings and captions are
provided for reference and convenience only, will not be considered part of this Agreement, and will not be employed in the construction of this Agreement. 
 Counterparts. This Agreement may be executed in one or more identical counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

  

			
	Very truly yours,
	
	EMULEX CORPORATION
		
	By:	 	 /s/ MICHAEL ROCKENBACH

		 	Name: Michael Rockenbach
		 	Title: Chief Financial Officer

  

			
	 Accepted and Agreed to:

	
	 JAMES M. MCCLUNEY

		
	 By:
	 	 /s/ JAMES M. MCCLUNEY

		
	 Date:
	 	August 21, 2012

  
 -4-Amended Emulex Corporation Change in Control Retention Plan

 Exhibit 10.5 

 

			
	 

	  	CHANGE IN CONTROL RETENTION PLAN

 
 1. Introduction. This Emulex Corporation Change in Control Retention Plan (this
“Plan”) was approved by the Board of Directors of Emulex Corporation, a Delaware corporation (“ELX”), on August [    ], 2012, to be effective on January 1, 2013 (the “Effective
Date”). This Plan shall be binding on the Company (as defined below). The purpose of this Plan is to provide severance benefits to certain employees of the Company in the event their employment is terminated by the Company involuntarily
without Cause or is resigned by them for Good Reason, and to encourage them to continue as employees of the Company in the event of a Change in Control. Except as otherwise stated herein, as of the Effective Date, this Plan supersedes any severance
benefit plan, policy or practice previously maintained by the Company between any Eligible Employee and the Company. This Plan document also is the Summary Plan Description for this Plan. 
 2. Eligibility for Benefits. 
 (a) General Rules. Subject to the
requirements set forth in this Section, the Company will grant severance benefits under this Plan to Eligible Employees. 

(i) “Eligible Employees” are all employees of the Company (A) who are designated to participate in this Plan by
the Plan Administrator, (B) whose employment with the Company is either (i) involuntarily terminated by the Company for a reason other than Cause or (ii) resigns for Good Reason (each, a “Termination Event”), in
either case during the Change in Control Period and in either case provided that such Termination Event constitutes a “separation from service” within the meaning of Section 409A of the Code (“Separation From
Service”), (C) who are not a party to an individual Key Employee Retention Agreement (“KERA”) as of the date of termination of employment or, if later, the effective date of the Change in Control, and (D) who
otherwise meet all criteria for eligibility set forth herein. 
 (ii) In order to be eligible to receive cash benefits under
this Plan, an Eligible Employee must (A) execute a general waiver and release of all employment-related claims against the Company substantially in the form attached to this Plan (the “Release”), and deliver the effective
Release (with all periods for revocation therein having expired) to the Company within fifty-nine (59) days after the Termination Date and (B) comply throughout the Change in Control Period and at all applicable times thereafter with the
covenants set forth in Section 7 of this Plan. 
 (iii) Any Termination Event that triggers the payment of benefits under
this Plan must occur during the term of this Plan, as specified in Section 10(b); provided that, in any event, this Plan shall remain in effect after the expiration of its term with respect to those Eligible Employees who became entitled
to receive benefits hereunder in order to ensure that such Eligible Employees receive all of the benefits to which they are entitled under this Plan. 
 (b) Ineligible Terminations. For avoidance of doubt, an employee will not receive benefits under this Plan in any of the following circumstances: 

(i) The employee is involuntarily terminated for Cause. 
 (ii) The employee voluntarily terminates employment with the Company for a reason other than Good Reason or for no reason. Voluntary terminations include death, Disability, resignation, retirement, or
failure to return from a leave of absence on the scheduled date.

 3. Definitions. 
 Capitalized terms used in this Plan, unless defined elsewhere in this Plan, shall have the following meanings: 
 (a) “Beneficial Owner” or “Beneficially Owned” has the definition given in Rule 13d-3 promulgated under the Exchange Act. 

(b) “Board” means the Board of Directors of ELX. 

(c) “Cause” means (i) an Eligible Employee’s continued failure to substantially perform the material duties
of his or her office (other than as a result of total or partial incapacity due to physical or mental illness), (ii) embezzlement or theft by an Eligible Employee of the Company’s property that is materially injurious to the financial
condition of the Company, (iii) the commission of any act or acts on an Eligible Employee’s part resulting in the conviction of such Eligible Employee of a felony under the laws of the United States or any state, (iv) an Eligible
Employee’s willful malfeasance or willful misconduct in connection with such Eligible Employee’s duties to the Company or any other act or omission which is materially injurious to the financial condition or business reputation of ELX or
any of its subsidiaries or Affiliates, or (v) a material breach by an Eligible Employee of any of the material provisions of (A) this Plan, (B) any non-compete, non-solicitation or confidentiality provisions to which such Eligible
Employee is subject or (C) any policy of the Company to which such Eligible Employee is subject, including policies regarding proprietary information. However, no termination shall be deemed for Cause under clause (i), (iv) or
(v) unless the Eligible Employee is first given written notice by the Company of the specific acts or omissions which the Company deems constitute grounds for a termination for Cause, is provided with at least thirty (30) days after such
notice to cure the specified deficiency (to the extent curable), and fails to substantially cure such deficiency within such time frame in the reasonable determination of the Plan Administrator. 

(d) “Change in Control” means the occurrence of any of the following events: 

(i) The sale, exchange, lease or other disposition of all or substantially all of the assets of the Company to a person or group of
related persons (as such terms are defined or described in Sections 3(a)(9) and 13(d)(3) of the Exchange Act, a “Person”) that will continue the business of the Company in the future; or 

(ii) A merger, consolidation or similar transaction involving the Company and at least one other entity in which the voting securities
of the Company Beneficially Owned by the shareholders of the Company immediately prior to such merger, consolidation or similar transaction do not represent, after conversion if applicable, more than fifty percent (50%) of the total voting power of
the surviving controlling entity outstanding immediately after such merger, consolidation or similar transaction; provided that any Person who (A) was a Beneficial Owner of the voting securities of the Company immediately prior to such
merger, consolidation or similar transaction, and (B) is a Beneficial Owner of more than 20% of the securities of the Company or the surviving controlling entity immediately after such merger, consolidation or similar transaction, shall be
excluded from the list of “shareholders of the Company immediately prior to such merger, consolidation or similar transaction” for purposes of the preceding calculation; or

 

  

			
	 Change in Control Retention Plan
	  	1

 
 (iii) Any Person is or becomes the Beneficial Owner, directly or indirectly, of more than
fifty percent (50%) of the total voting power of the voting stock of the Company (including by way of merger, consolidation or otherwise); or 
 (iv) During any period of two (2) 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 ELX was approved by a vote of a majority of the directors of ELX 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; or 
 (v) A dissolution or
liquidation of the Company, 
 provided that, as to each of events (i) to (v), and for avoidance of doubt, no
Change in Control will be deemed to have occurred as a result of any transaction that takes place solely between or among ELX and its Affiliates, including (a) a transfer of assets between or among ELX and its Affiliates or a transfer of assets
between or among the Affiliates themselves, (b) a merger of ELX and any one or more Affiliates or a merger of one or more Affiliates with each other, (c) the dissolution or liquidation of one of the Affiliates of ELX without the
dissolution or liquidation of all of the Affiliates of ELX, or (d) the transfer of ownership of one of the Affiliates of ELX to another Affiliate of ELX. 
 (e) “Change in Control Period” means either (i) a period when ELX is party to an agreement, the consummation of the transactions contemplated by which would result in the occurrence
of a Change in Control or (ii) within twenty-four (24) months following a Change in Control. 
 (f)
“Code” means the Internal Revenue Code of 1986, as amended. 
 (g)
“Company” means Emulex Corporation (a Delaware corporation), its Affiliates, and any successor as provided in Section 10(c) hereof. “Affiliates” shall have the meaning set forth in the Delaware General
Corporations Law, Section 203(c). 
 (h) “Disability” means the physical or mental incapacitation such
that for a period of six (6) consecutive months or for an aggregate of nine (9) months in any twenty-four (24) month consecutive period, an Eligible Employee is unable to substantially perform his or her duties. Any question as to the
existence of that Eligible Employee’s physical or mental incapacitation as to which the Eligible Employee or the Eligible Employee’s representative and the Company cannot agree shall be determined in writing by a qualified independent
physician mutually acceptable to the Eligible Employee and the Company. If the Eligible Employee and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third
who shall make such determination in writing. The determination of a “Disability” made in writing to the Company and the Eligible Employee shall be final and conclusive for all purposes of the benefits under this Plan. 

(i) “Emulex Option” means each option to purchase shares of the Company that is granted to the Eligible Employee prior
to a Change in Control and each option to purchase shares of the stock of the Company’s successor (by purchase of assets, merger, consolidation, reorganization or otherwise) that is granted to the Eligible Employee by such successor in
connection with or after a Change in Control, whether in exchange or substitution for an option granted to the Eligible Employee by the Company prior to the Change in Control or otherwise.

 (j) “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
 (k) “Good Reason” means an Eligible Employee’s resignation of his or her employment with the
Company as a result of the occurrence of one or more of the actions listed below, which such action or actions remain uncured for at least thirty (30) days following written notice from such Eligible Employee to the Company describing the
occurrence of such action or actions and asserting that such action or actions constitute grounds for a Good Reason resignation which notice must be provided by the Eligible Employee no later than ninety (90) days after the initial existence of
such condition, provided that such resignation occurs no later than sixty (60) days after the expiration of the cure period. The listed actions are the following, if they occur without the Eligible Employee’s express written consent:
(i) any material diminution in the level of such Eligible Employee’s authority, responsibilities or duties; (ii) a reduction of ten percent (10%) or more in the level of the base salary, target bonus, or employee benefits to be
provided to such Eligible Employee; (iii) the relocation of such Eligible Employee to a principal place of employment that increases such Eligible Employee’s one-way commute by more than thirty-five (35) miles from such Eligible
Employee’s current principal place of employment; or (iv) the failure of any successor to the business of the Company or to substantially all of the assets and/or business of the Company to assume the Company’s obligations under this
Plan as required by Section 10(c). 
 (l) “IRS” means the Internal Revenue Service. 

(m) “Pay” means the Eligible Employee’s monthly base pay at the rate in effect on the Termination Date (or if
greater, the last regularly scheduled payroll period immediately preceding a Change in Control) and inclusive of the Eligible Employee’s target bonus level (expressed as a percentage of base pay) with respect to the fiscal year prior to the
Termination Date. One-time bonuses paid by the Company that are not paid under a bonus plan adopted by the Company shall be excluded from Pay for purposes of this Plan. Examples of such one-time bonuses are sign-on bonuses or special recognition
bonuses. 
 (n) “Severance Period” means twelve (12) months. 

(o) “Stock Award” means shares of restricted stock, and restricted stock units, stock appreciation rights, and other
equity-based awards which are awarded to the Eligible Employee prior to a Change in Control; and each share of restricted stock, each restricted stock unit, each stock appreciation right, and each other equity-based award of the Company’s
successor (by purchase of assets, merger, consolidation, reorganization or otherwise) which is awarded to the Eligible Employee by such successor in connection with or after a Change in Control, whether in exchange or substitution for restricted
stock, restricted stock units, stock appreciation rights, or other equity-based award granted to the Eligible Employee by the Company prior to the Change in Control or otherwise; which shares or units are subject to a substantial risk of forfeiture
and restrictions on transferability during a specified vesting period. 
 (p) “Termination Date” means the
last date on which the Eligible Employee is in active employment status with the Company. 
 4. Amount of Benefit. Upon a Termination
Event during the Change in Control Period, the Eligible Employees will receive a cash severance payment equal to Pay multiplied by the Severance Period, payable as provided in Section 6 of this Plan as well as the other severance benefits
described in Section 8 of this Plan. 

 

  

			
	 Change in Control Retention Plan
	  	2

 5. Emulex Options and Stock Awards. 

(a) Vesting Acceleration. Upon a Termination Event during the Change in Control Period, the vesting of an Eligible
Employee’s right to exercise each Emulex Option, and vest in the Stock Awards held by the Eligible Employee as of the Termination Date will be fully accelerated as of the Termination Date so that the Eligible Employee will have the right to
exercise such Emulex Option in full at any time during its remaining term and all grants of Stock Awards received by the Eligible Employee shall thereafter be fully vested and non-forfeitable (and with any performance-based Stock Awards vesting at a
minimum of the target achievement level). 
 (b) Exercise Extension. In addition to the acceleration described above in
Section 5(a), following a Termination Event during the Change in Control Period, Eligible Employees will be permitted to exercise any Emulex Option for a period of twelve (12) months following the Termination Date, but in no event later
than ten (10) years following the date of grant. 
 6. Time of Payment and form of benefit, no mitigation. 

(a) Subject to Section 14, the cash severance payment under this Plan shall be paid in a lump sum on the
sixtieth (60th) day following the Termination Date.

 (b) No Eligible Employee will be obligated to seek employment or otherwise mitigate the severance payment or other benefits
provided hereunder. Severance payments will not be reduced by other compensation earned by an Eligible Employee from another employer following termination. 
 7. Eligible Employee Covenants. 
 (a) Scope of Covenants. The cash
severance payment, the option acceleration, and the other severance benefits provided for under this Plan are subject to the covenants made by each Eligible Employee (the “Covenants”) in the Employee Creation and Nondisclosure
Agreement previously signed by the Eligible Employee. 
 (b) Compliance Determinations. It is expressly understood and
agreed that, although each Eligible Employee and the Company consider the restrictions contained in the Covenants to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any
other restriction contained in the Covenants is an unenforceable restriction against an Eligible Employee, for which injunctive relief is unavailable, the provisions of the Covenants shall not be rendered void but shall be deemed amended to apply as
to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Furthermore, such a determination shall not limit the Company’s ability to cease providing payments or benefits
during the remainder of any Severance Period, if applicable, unless a court of competent jurisdiction has expressly declared that action to be unlawful. Alternatively, if any court of competent jurisdiction finds that any restriction contained in
the Covenants is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained in the Covenants or other provisions of this Plan.

 (c) No Right to Severance Payment; Benefit Termination. An Eligible Employee’s right to the cash severance
payment, the option acceleration, and the other severance benefits under this Plan will terminate immediately if the Eligible Employee, at any time, violates any Covenants.

 8. Continuation of Employment Benefits. 
 Following a Termination Event during the Change in Control Period, Eligible Employees shall receive the severance benefits described in this Section. 

(a) Health Benefit Payment. Subject to Section 14, on the sixtieth (60th) day following the Termination Date, a lump sum cash amount
equal to the Severance Period multiplied by the full monthly cost of maintaining health, dental and vision benefits for each Eligible Employee (and the Eligible Employee’s spouse and eligible dependents) as of the Termination Date under a group
health plan of the Company for purposes of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), or, with respect to any Eligible Employee domiciled outside of the United States, such other comparable,
applicable law, if any, in such jurisdiction at the time of the Eligible Employee’s termination of employment. Notwithstanding the foregoing, no provision of this Plan will affect the continuation coverage rules under COBRA or any other
applicable law. 
 (b) Other Employee Benefits. All non-health benefits (such as life insurance and
disability coverage) terminate as of the Eligible Employee’s Termination Date (except to the extent that any conversion privilege is available thereunder). 
 (c) Outplacement Services. A payment of up to USD $15,000 (payable in equivalent local currency with respect to Eligible Employees outside the United States) for reimbursement of the cost of
outplacement services utilized by the Eligible Employee within twelve (12) months after the Termination Date, such reimbursement to be paid not later than the end of the calendar year following the year in which the expense is incurred. In no
event shall the reimbursements or in-kind benefits to be provided by the Company in one taxable year affect the amount of reimbursements or in-kind benefits to be provided in any other taxable year, nor will an Eligible Employee’s right to
reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit. 
 9. Excise Taxes. 

        (a) After Tax Amount. In the event that any benefits payable to an Eligible Employee pursuant to
this Plan or any other plan, program, agreement or arrangement (“Payments”) (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) but for this Section 9 would be
subject to the excise tax imposed by Section 4999 of the Code, or any comparable successor provisions (the “Excise Tax”), then the Eligible Employee’s payments hereunder shall be either (a) provided to the Eligible
Employee in full, or (b) provided to the Eligible Employee as to such lesser extent which would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing amounts, when taking into account applicable
federal, state, local and foreign income and employment taxes, the Excise Tax, and any other applicable taxes, results in the receipt by the Eligible Employee, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or
some portion of such benefits may be taxable under the Excise Tax. In the case of a reduction in payments, the payments shall be reduced in the following order: (A) the payments that are payable in cash that are valued at full value under
Treasury Regulation Section 1.280G-1, Q&A 24(a) shall be reduced (if necessary, to zero), with amounts that are payable last reduced first; (B) payments and benefits due in respect of any equity valued at full value under Treasury
Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) shall next be reduced; (C) the payments that are payable in cash
that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that

 

  

			
	 Change in Control Retention Plan
	  	3

 
are payable last reduced first, shall next be reduced; (D) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1,
Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) shall next be reduced; and (E) all other non-cash benefits not otherwise described in clauses
(B) or (D) shall be next reduced pro-rata. Unless the Company and the Eligible Employee otherwise agree in writing, any determination required under this Section 9 shall be made in writing in good faith by a recognized accounting firm
selected by the Company (the “Accountants”). For purposes of making the calculations required by this Section 9, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of the Code and other applicable legal authority. The Company and the applicable Eligible Employee shall furnish to the Accountants such information and documents as the Accountants
may reasonably request in order to make a determination under this Section 9. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 9. 

(b) IRS Determinations. If, notwithstanding any reduction described in Section 9(a), the IRS determines that an Eligible
Employee is liable for the Excise Tax as a result of the receipt of any Payments, then the Eligible Employee shall be obligated to pay back to the Company, within thirty (30) days after a final IRS determination or in the event that the
Eligible Employee challenges the final IRS determination, a final judicial determination, a portion of the Payments equal to the Repayment Amount. The “Repayment Amount” shall be the smallest such amount, if any, as shall be
required to be paid to the Company so that the Eligible Employee’s net after-tax proceeds with respect to the Payments (after taking into account the payment of the Excise Tax and all other applicable taxes imposed on such benefits) shall be
maximized. The Repayment Amount shall be zero if a Repayment Amount of more than zero would not result in the Eligible Employee’s net after-tax proceeds with respect to the Payments being maximized. If the Excise Tax is not eliminated pursuant
to this Section 9(b), the Eligible Employee shall pay the Excise Tax. 
 (c) Company Payment. Notwithstanding any
other provision of this Section 9, if (i) there is a reduction in the payments to an Eligible Employee as described in this Section 9, (ii) the IRS later determines that the Eligible Employee is liable for the Excise Tax, the
payment of which would result in the maximization of the Eligible Employee’s net after-tax proceeds (calculated as if the Eligible Employee’s benefits had not previously been reduced), and (iii) the Eligible Employee pays the Excise
Tax, then the Company shall pay to the Eligible Employee those payments which were reduced pursuant to this Section 9 as soon as administratively possible after the Eligible Employee pays the Excise Tax so that the Eligible Employee’s net
after-tax proceeds with respect to the Payments are maximized. 
 10. Right to Interpret Plan; Amend and Terminate; Other Arrangements;
Binding Nature of Plan. 
 (a) Exclusive Discretion. The “Plan Administrator” shall be the
Compensation Committee of the Board. The Plan Administrator shall have the exclusive discretion and authority to establish rules, forms, and procedures for the administration of this Plan, and to construe and interpret this Plan and to decide any
and all questions of fact, interpretation, definition, computation or administration arising in connection with the operation of this Plan, including, eligibility to participate in this Plan, the amount of benefits paid under this Plan, the timing
of payments under this

 
Plan and the scope and applicability of the covenants contained in the Release and Covenant Documents. The rules, interpretations, computations and other actions of the Plan Administrator shall
be binding and conclusive on all persons. The Plan Administrator’s decisions shall not be subject to review unless they are found to be unreasonable or not to have been made in good faith. The Plan Administrator may appoint one or more
individuals and delegate such of its powers and duties as it deems desirable to any such individual(s), in which case every reference herein made to the Plan Administrator shall be deemed to mean or include the appointed individual(s) as to matters
within their jurisdiction. 
 (b) Term Of Plan; Amendment Or Termination. 

(i) This Plan shall be effective until December 31, 2013 and shall be extended thereafter for successive one-year periods unless
the Company, by resolution of the Board, in its sole discretion, elects not to renew this Plan at least twelve (12) months prior to the date that this Plan is then scheduled to expire. 

(ii) The Company reserves the right to amend or terminate this Plan or the benefits provided hereunder (through action of the Plan
Administrator) at any time; provided, however, that (A) no such amendment or termination shall affect the rights of an unpaid benefit owing to an Eligible Employee on account of a termination of employment that occurred before
such amendment or termination, (B) no such amendment or termination is permitted after the occurrence of a Change in Control, and (C) the Plan Administrator cannot revoke a designation of eligibility from an Eligible Employee after the
occurrence of a Change in Control, and, provided, further, that no adverse amendment or termination shall take effect for twelve (12) months following the date of such action. Subject to the foregoing, this Plan establishes and vests in
each Eligible Employee a contractual right to the benefits to which such Eligible Employee is entitled hereunder, enforceable by the Eligible Employee against the Company. 
 (iii) Any action amending or terminating this Plan shall be in writing and approved by the Plan Administrator of the Company, except to the extent that this Plan specifies that such action shall be taken
by the Board. 
 (iv) Notwithstanding anything herein to the contrary, this Plan may not be terminated during the Change in
Control Period, nor may this Plan be amended during the Change in Control Period if such amendment would be adverse to the interests of any Eligible Employee, without the consent of such Eligible Employee. 

(c) Other Arrangements. The terms of any prior plans, policies or agreements relating to the subject matter hereof are hereby
superseded and replaced by this Plan, provided that this Plan shall not supersede any severance provisions set forth in any applicable contract of employment between an Eligible Employee and the Company, except that in order to avoid a
duplication of benefits, the Eligible Employee shall not be entitled to any severance payments or benefits under such contract of employment if the Eligible Employee is entitled to severance payments and benefits under this Plan. 

(d) Binding Effect On Successor To Company. This Plan shall be binding upon any successor or assignee, whether direct or
indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Company, or upon any successor to the Company as the result of a Change in Control, and any such successor or assignee shall be
required to perform the Company’s obligations under this Plan, in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment or Change in Control had taken place. In such event, the
term “Company,” as 

 

  

			
	 Change in Control Retention Plan
	  	4

 
used in this Plan, shall mean the Company as defined in this Plan and any successor or assignee as described above which by reason hereof becomes bound by the terms and provisions of this Plan.

 11. No Implied Employment Contract. This Plan shall not be deemed (a) to give any employee or other person any right to be
retained in the employ of the Company or (b) to interfere with the right of the Company to discharge any employee or other person at any time and for any reason, which right is hereby reserved. 

12. Legal Construction. This Plan is intended to be governed by and shall be construed in accordance with the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”) and, to the extent not preempted by ERISA, the laws of the State of California with respect to those Eligible Employees domiciled in the United States and the laws of the applicable jurisdiction
with respect to those Eligible Employees domiciled outside of the United States. For the avoidance of doubt, in the event that any applicable law provides for severance benefits in excess of, or in addition to, those severance benefits to be
provided under this Plan, such applicable law shall supersede this Plan and the Eligible Employee shall receive such enhanced severance benefits and no severance benefits otherwise payable under this Plan shall be provided to such Eligible Employee.
This Plan is intended to be (a) an employee welfare benefit plan as defined in Section 3(1) of ERISA and (b) a “top-hat” plan that is unfunded and is maintained for the benefit of a select group of management or highly
compensated employees of the Company. 
 13. Claims, Inquiries, and Appeals. 

(a) Applications For Benefits And Inquiries. Any application for benefits, inquiries about this Plan or inquiries about present
or future rights under this Plan must be submitted to the Plan Administrator in writing. The Plan Administrator is: 
 The Compensation
Committee of the Board of Directors of 
 Emulex Corporation 
 3333 Susan Street 
 Costa Mesa, California 92626 

(b) Denial Of Claims. In the event that any application for benefits is denied in whole or in part, the Plan Administrator must
notify the applicant, in writing, of the denial of the application, and of the applicant’s right to review the denial. The written notice of denial will be set forth in a manner designed to be understood by the employee, and will include
specific reasons for the denial, specific references to the Plan provision upon which the denial is based, a description of any information or material that the Plan Administrator needs to complete the review and an explanation of this Plan’s
review procedure. This written notice will be given to the employee within ninety (90) days after the Plan Administrator receives the application, unless special circumstances require an extension of time, in which case, the Plan Administrator
has up to an additional ninety (90) days for processing the application. If an extension of time for processing is required, written notice of the extension will be furnished to the applicant before the end of the initial ninety (90)-day
period. This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the application. If written notice of denial of the application for
benefits is not furnished within the specified time, the application shall be deemed to be denied. The applicant will then be permitted to appeal the denial in accordance with the Review Procedure described below. 

(c) Request For A Review. Any person (or that person’s authorized representative) for whom an application for benefits is
denied (or deemed denied), in whole or in part, may appeal the

 
denial by submitting a request for a review to the Plan Administrator within sixty (60) days after the application is denied (or deemed denied). The Plan Administrator will give the
applicant (or his or her representative) an opportunity to review pertinent documents in preparing a request for a review. A request for a review shall be in writing and shall be addressed to: 

Plan Administrator for the Change in Control Retention Plan 
 Emulex Corporation 
 3333 Susan Street 
 Costa Mesa, California 92626 
 A request for review must set forth all of the grounds on which it
is based, all facts in support of the request and any other matters that the applicant feels are pertinent. The Plan Administrator may require the applicant to submit additional facts, documents or other material as it may find necessary or
appropriate in making its review. 
 (d) Decision On Review. The Plan Administrator will act on each request for review
within sixty (60) days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for processing the request for a review. If an extension for review is required,
written notice of the extension will be furnished to the applicant within the initial sixty (60) day period. The Plan Administrator will give prompt, written notice of its decision to the applicant. In the event that the Plan Administrator
confirms the denial of the application for benefits in whole or in part, the notice will outline, in a manner calculated to be understood by the applicant, the specific Plan provisions upon which the decision is based. If written notice of the Plan
Administrator’s decision is not given to the applicant within the time prescribed in this Subsection (d), the application will be deemed denied on review. 
 (e) Rules And Procedures. The Plan Administrator will establish rules and procedures, consistent with this Plan and with ERISA, as necessary and appropriate in carrying out its responsibilities in
reviewing benefit claims. The Plan Administrator may require an applicant who wishes to submit additional information in connection with an appeal from the denial (or deemed denial) of benefits to do so at the applicant’s own expense.

 (f) Exhaustion Of Remedies. No legal action for benefits under this Plan may be brought until the claimant
(i) has submitted a written application for benefits in accordance with the procedures described by Section 13(a) above, (ii) has been notified by the Plan Administrator that the application is denied (or the application is deemed
denied due to the Plan Administrator’s failure to act on it within the established time period), (iii) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 13(c)
above, and (iv) has been notified in writing that the Plan Administrator has denied the appeal (or the appeal is deemed to be denied due to the Plan Administrator’s failure to take any action on the claim within the time prescribed by
Section 13(d) above). 
 14. Effect of Section 409A of the Code. If an Eligible Employee is deemed on the Termination Date to
be a “specified employee” (as such term is defined under Section 409A of the Code and the regulations and other Treasury Department guidance promulgated thereunder, and as determined pursuant to any policies adopted by the Company
consistent with Section 409A of the Code), then with regard to any payment or the provision of any benefit that is considered deferred compensation under Section 409A of the Code payable on account of a Separation From Service, to the
extent required to avoid any taxes imposed under Section 409A(a)(1) of

 

  

			
	 Change in Control Retention Plan
	  	5

 
the Code, such payment or benefit shall be made or provided at the date which is no more than fifteen (15) days following the earlier of (i) the expiration of the six (6) month
period measured from the date of such Separation From Service of such Eligible Employee, and (ii) the date of such Eligible Employee’s death. Each payment under this Plan is intended to be a “separate payment” and not one

 
of a series of payments for purposes of Section 409A of the Code. Notwithstanding anything to the contrary in this Plan, no particular tax result for an Eligible Employee with respect to any
income recognized by such Eligible Employee in connection with this Plan is guaranteed. 

 

  
 15. Construction. Unless the
context otherwise requires, (a) the term “including,” “include,” “includes,” and other similar constructions mean such terms without limitation and (b) unless otherwise specified, to the extent the term
“day” or “days” is used, it will mean calendar days. 
 16. ERISA Rights. Attached hereto is the statement of ERISA
Rights that is required by ERISA to accompany this Plan. 
 17. Execution. To record the adoption of this Plan as set forth herein,
effective as of the Effective Date, the Company has caused its duly authorized officer to execute the same this [    ] day of August, 2012, intending so to bind the Company. 

 

			
	 EMULEX CORPORATION

		
	 By:
	 	  

	 Name:
	 	James McCluney
	 Title:
	 	Chief Executive Officer

  

			
	 Change in Control Retention Plan
	  	6

			
	 

	  	GENERAL WAIVER AND RELEASE FORM

 
 1. In return for payment of severance benefits pursuant to the Emulex Corporation Change in Control
Retention Plan (the “Plan”), I hereby generally and completely release the Company (as defined in the Plan) and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, insurers, and
assigns (collectively the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my
signing this general release (this “Release”). This Release includes, but is not limited to: (1) all claims arising out of or in any way related to my employment with the Company or the termination of that employment;
(2) all claims related to my compensation or benefits from the Company, including without limitation wages, salary, bonuses, commissions, vacation pay, expense reimbursements (to the extent permitted by applicable law), severance pay, fringe
benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims,
including, without limitation, claims for fraud, defamation, emotional distress, and discharge in violation of public policy; (5) all federal, state, and local statutory claims, including without limitation claims for discrimination,
harassment, retaliation, attorneys’ fees and costs, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967
(as amended) (“ADEA”), the Older Worker Benefit Protection Act (“OWBPA”), the federal Worker Adjustment and Retraining Notification Act (as amended) and similar laws in other jurisdictions, the Employee Retirement
Income Security Act of 1974 (as amended), the Family and Medical Leave Act of 1993, and California Fair Employment and Housing Act (as amended), the California Family Rights Act (as amended), California Labor Code section 1400 et. seq. and any
similar laws in other jurisdictions; and (6) any and all claims for violation of the federal, or any state, constitution; provided, however, that this Release does not waive, release or otherwise discharge any claim or cause of action arising
after the date I sign this Release, nor does this Release extend to any obligation incurred under the Plan or any right to enforce my rights under the Plan. 
 2. This Release includes a release of claims of discrimination or retaliation on the basis of workers’ compensation status, but does not include workers’ compensation claims. Excluded from this
Release are any claims which by law cannot be waived in a private agreement between employer and employee, including, but not limited to, claims under California Labor Code section 2802 and the right to file a charge with or participate in an
investigation conducted by the Equal Employment Opportunity Commission (“EEOC”) or any state or local fair employment practices agency. I waive, however, any right to any monetary recovery or other relief should the EEOC or any
other agency pursue a claim on my behalf. 
 3. I acknowledge and represent that I have not suffered any age or other discrimination,
harassment, retaliation, or wrongful treatment by any of the Released Parties. I also acknowledge and represent

 that I have not been denied any rights including, but not limited to, rights to a leave or reinstatement
from a leave under the Family and Medical Leave Act of 1993, the California Family Rights Act, the Uniformed Services Employment and Reemployment Rights Act of 1994, or any similar law of any jurisdiction. 

4. I agree that I am voluntarily executing this Release. I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have
under the ADEA and that the consideration given for this Release is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my waiver
and release specified in this paragraph does not apply to any rights or claims that may arise after the date I sign this Release; (b) I have been advised to consult with an attorney prior to signing this Release; (c) I have at least
twenty-one (21) days to consider this Release (although I may choose to sign it any time on or after my Termination Date (as defined in the Plan)); (d) I have seven (7) calendar days after I sign this Release to revoke it
(“Revocation Period”); and (e) this Release will not be effective until I have signed it and returned it to the Company’s Human Resources Department and the Revocation Period has expired. I further acknowledge that, upon
executing this Release, I have used all or as much of the twenty-one (21) day period as I deem necessary to fully consider this Release, and, if I have used less than the full twenty-one (21) day period, I waive the portion not used. In
addition, if my termination of employment has occurred in connection with a layoff or exit incentive program, I acknowledge that (x) I have received a disclosure from the Company that includes a description of the class, unit or group of
individuals covered by such layoff or exit incentive program, the eligibility factors for such program, and any time limits applicable to such program and a list of job titles and ages of all employees selected for this group termination and ages of
those individuals in the same job classification or organizational unit who were not selected for termination (“Disclosures”); and (y) I have at least forty-five (45) days after I have received the Disclosures to consider
this Release (although I may choose to sign it any time on or after my Termination Date) in lieu of the twenty-one (21) day period described above. 
 5. I UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. In giving this Release, which includes claims which may be unknown to me at present, I acknowledge that I
have read and understand Section 1542 of the California Civil Code, which states: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my
release of any unknown or unsuspected claims that I may have against the Company. 

 

  

	
	 Employee Signature (to be signed only after the Termination Date):

	
	 Employee Name:

	
	 Date Signed:

  

			
	 Change in Control Retention Plan - Exhibit
	  	

 ERISA RIGHTS STATEMENT 

As a participant in the Emulex Corporation Change in Control Retention Plan (the “Plan”), you are entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974 – commonly called ERISA. ERISA provides that all Plan participants will be entitled to: 
 Receive Information About Your Plan and Benefits 
 Examine, without charge,
at the Plan Administrator’s office or at other specified locations, such as worksites, all documents governing the Plan. Copies of all documents filed on behalf of the Plan with the U.S. Department of Labor, such as the latest annual report
(Form 5500 Series), are also available for you to review at the Plan Administrator’s office. 
 Obtain, upon written
request to the Plan Administrator, copies of documents governing the operation of the Plan, including copies of the latest annual report (Form 5500 Series) and updated summary plan description. The Plan Administrator may charge a reasonable fee for
the copies. 
 Prudent Actions by Fiduciaries 
 In addition to creating rights for Plan participants, ERISA imposes duties on the Plan fiduciaries – the people responsible for operating the Plan. Plan fiduciaries may include employees who make
certain discretionary decisions about the management or administration of the Plan. 
 Fiduciaries have a duty to operate the
Plan prudently and in the interest of you and other Plan participants and beneficiaries. Fiduciaries that violate ERISA may be removed and/or required to make good on losses that they caused the Plan. 

No one may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights
under ERISA. 
 Enforce Your Rights 
 If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any
denial, all within certain time schedules. 
 Under ERISA, there are several steps you can take to enforce your rights. For
instance, if you request Plan materials and you do not receive them within 30 days, you may file suit in federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you
receive the materials unless the materials were not sent for a reason beyond the control of the Plan Administrator. 
 If you
have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court. If a fiduciary misuses the Plan’s money, or if you are discriminated against for asserting your rights, you may seek
assistance from the U.S. Department of Labor, or you may file suit in federal court. 
 In addition to deciding what damages, if
any, should be awarded, the court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you sued to pay them. If you lose, the court may order you to pay these costs and fees (for example, if it
finds your claim to be frivolous). 
 Assistance to Your Questions 

If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about your rights under
ERISA or about this statement outlining your rights, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest regional office of the Employee Benefits Security Administration (formerly known as the
Pension and Welfare Benefits Administration), U.S. Department of Labor, listed in your telephone directory. You may also contact the Division of Technical Assistance and Inquiries, Employee Benefits Security Administrator (formerly known as the
Pension and Welfare Benefits Administration), U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications
hotline of the Employee Benefits Security Administration. 

  

			
	 Change in Control Retention Plan - Exhibit
	  	

 PLAN INFORMATION 

 

			
	 Name of Plan:
	  	Emulex Corporation Change in Control Retention Plan
		
	 Name and Address of Plan Sponsor:
	  	 Plan Administrator for the Change in Control Retention Plan
 Emulex Corporation
 3333 Susan Street
 Costa Mesa, California 92626

		
	 Tax Identification Number of Plan Sponsor:
	  	95-3342259
		
	 Plan Number:
	  	[501]
		
	 Type of Plan:
	  	Welfare – Severance Pay Plan
		
	 Type of Administration:
	  	Self-Administered
		
	 Plan Administrator’s Name and Business Telephone Number:
	  	 Emulex Corporation
 3333 Susan
Street
 Costa Mesa, California 92626

(714) 885-3044

		
	 Agent for Service of Legal Process:
	  	Plan Administrator for the Change in Control Retention Plan
		
	 Address of Agent for Service of Legal Service:
	  	 c/o Emulex Corporation
 3333
Susan Street
 Costa Mesa, California 92626

  

			
	 Change in Control Retention Plan - Exhibit

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