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Werner Heid
December 24, 2008
Page 2
 

In addition, we will recommend that the Compensation Committee of Logitech International's Board of Directors approve the entry into with you of a Change of Control Severance Agreement, in the form substantially as entered into with other Logitech non-CEO executive officers.

For your information, Logitech's performance reviews are conducted at the same time each year for all employees. It is also important for you to know that all of our compensation plans and programs are reviewed each year and may be subject to change. Logitech reserves the right to cancel or change the benefit plans and programs it offers to its employees, including its executive officers, at any time. Any adjustment to your base salary or your target incentive bonus and other compensation shall be in the sole discretion of the Logitech International Board of Directors or the Compensation Committee of the Board.

Federal regulations require us to verify your legal eligibility to work in the United States. Enclosed is the employment eligibility verification form, which lists the acceptable types of identification. Please bring one type from "List A", or one each from "List B" and "List C" with you on your first day.

While it is our sincere hope and belief that our working relationship will be mutually beneficial, we also want to advise you that Logitech is an at-will employer. Consequently, either Logitech or you can terminate the employment relationship at-will, at any time, with or without cause, and with or without advance notice. However it is understood that if a separation from service (as defined in the regulations under Section 409A of the Internal Revenue Code of 1986, as amended (the "Code") because your employment is terminated by Logitech without cause, and not as a result of your death or disability (meaning that you are unable to perform your duties for any 90 days in any one-year period as a result of a physical and/or mental impairment). and if you sign a general release of known and unknown claims in form satisfactory to Logitech, you will receive severance payments equal to nine months of your current base salary plus seventy-five percent (75%) of your current annual targeted bonus amount, less applicable withholdings. Severance payments representing base salary will be made periodically in accordance with Logitech's normal payroll schedule, and the severance payment representing seventy-five percent (75%) of your annual targeted bonus amount will be made in one lump sum at the end of the nine-month severance period, less applicable withholding. Logitech will deliver the form of release to you within 30 days after your separation from service. You must execute and return the release within the period set forth in the prescribed form. The salary continuation payments will commence within 30 days after you return the release.

For purposes of Section 409A of the Code, each salary continuation payment under the paragraph immediately above is hereby designated as a separate payment. If Logitech determines that you are a "specified employee" under Section 409A(a)(2)(B)(i) of the Code at the time of your separation from service, then (i) the salary continuation payments under the paragraph immediately above, to the extent that they are subject to Section 409A of the Code, will commence during the seventh month after your separation from service and (ii) the installments that otherwise would have been paid during the first six months after your separation from service will be paid in a lump sum when the salary continuation payments commence.