EMPLOYMENT LETTER (JAEGER)

EX-10.36 15 b44681enexv10w36.txt EMPLOYMENT LETTER (JAEGER) EXHIBIT 10.36 Cabletron Systems, Inc. August 3, 2001 Eric Jaeger 51 Evans Road Madbury, VT 03820 Eric: We have agreed that the terms below will govern your relationship with Cabletron going forward. If these terms are acceptable to you, please sign and return a copy of this letter to me, at which point it will become a binding agreement between you and Cabletron. 1. CURRENT SALARY. You will be paid your current base salary through Sept. 2, 2001. 2. TRANSFORMATION BONUS. You will be paid a transformation bonus of $100,000 on Aug. 3, 2001. Also on Aug. 3, 2001, you will receive your normal quarterly bonus of $48,000 for Q2 on Sept. 9. 3. ADDITIONAL COMPENSATION. We agree to pay you additional compensation equal to one year salary plus bonus. One-half of the Additional Compensation shall be paid on Aug. 3. The other half of the Additional Compensation will be paid to you on Jan 2. 2002; this amount shall be placed in an escrow account to be released on Jan. 2 unless you have materially breached the confidentiality provision set forth below. At such time as you cease to be an employee of the Company, you will be paid a lump sum based upon your unused vacation time at your current base salary. 4. CONFIDENTIALITY. You agree not to disclose any material confidential information of the Company or its subsidiaries to any third parties under circumstances that one would reasonably expect to cause material harm to the Company or its subsidiaries. 5. STOCK OPTIONS. Your Cabletron stock options will be treated the same as other employees, that is, the vesting on you Cabletron stock options will be accelerated through Feb. 28, 2002 and you will receive Riverstone rainbow options using the same ratio used with respect to Cabletron stockholders. With respect to your Aprisma, Enterasys, and Riverstone stock options, the remaining restrictions that prevent the transfer of the shares issued on exercise of the options will be lifted as of Aug. 6. This will not affect the exercisability of the stock options. 6. EXISTING LOAN. For purposes of your existing loan from Cabletron, as of August 6, 2001 you will be deemed to satisfy the conditions for complete forgiveness of the loan. You will not be required to repay any portion of the loan as a result of sales of Cabletron, Riverstone or Enterasys shares either prior to or after the date of this letter agreement. Cabletron Systems, Inc. /s/ Eric Jaeger By: /s/ Piyush Patel -------------------------- --------------------------- Eric Jaeger Piyush Patel CEO and President