Logitech 2010 Annual Report Download - page 103

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The PRSU and RSU award agreements for named executive officers other than Tom Fergoda provide for the
acceleration of vesting of the RSUs and PRSUs subject to the award agreements under the same circumstances
and conditions as under the Change of Control Agreements; namely, if the named executive officer is subject to an
involuntary termination within 12 months after a change of control because his or her employment is terminated
without cause or the executive resigns for good reason. In the event of such an involuntary termination:
• All shares subject to the RSUs will vest.
• 100% of the shares subject to the PRSUs will vest if the change of control occurs within 1 year after
the grant date of the PRSUs. If the change of control occurs more than 1 year after the grant date of
the PRSUs, the number of shares subject to the PRSU that will vest will be determined by applying the
performance criteria under the PRSUs as if the performance period had ended on the date of the change
of control.
To determine the level of benefits to be provided under each change of control agreement and other agreements,
the Committee considered the circumstances of each type of severance, the impact on shareholders, and market
practices.
On June 8, 2010, after the end of fiscal year 2010, we entered into a resignation and severance agreement with
David Henry in connection with his resignation from the Company, which is expected to be effective October 1,
2010 or within 60 days thereafter. Under the agreement, subject to Mr. Henry’s execution of a general release of
claims, and that release becoming irrevocable, Mr. Henry will be entitled to receive on his resignation a lump-sum
payment of $460,000, a pro-rated half-year bonus up to $149,500, outplacement services in an amount of up to
$15,000, health insurance coverage premium payments for a period of up to one year, and, if the effective date of his
resignation is October 1, 2010 or later, he will be entitled to receive an additional lump-sum payment of $508,000,
in all cases less applicable withholdings.
The terms of the agreement with Mr. Henry are a result of individual negotiations with him in consideration
for his service to Logitech, to incent him to remain with Logitech to lead the marketing department for a reasonable
period until his successor is found, and as consideration for the potential length of time until subsequent employment
is secured. No amounts are payable to Mr. Henry if he is terminated for cause.
After the end of fiscal year 2010, we entered into a severance agreement effective July 1, 2010 with Tom
Fergoda in connection with his resignation from the Company. Under the agreement, subject to Mr. Fergoda’s
execution of a general release of claims, and that release becoming irrevocable, Mr. Fergoda will be entitled to
receive the equivalent of two months’ of his fiscal year 2010 salary in a lump sum, and continuation of health
insurance coverage premiums for two months.
Perquisites
Logitech’s executive officer benefit programs are substantially the same as for all other eligible employees.
Mr. Quindlen was provided with personal tax preparation services in fiscal year 2010. Expenses related to these
services are imputed as income to Mr. Quindlen and the additional tax liabilities are paid by Logitech as a gross-
up payment. The aggregate amounts of these services plus the gross-up payment are reflected in the Summary
Compensation Table below under the heading “All Other Compensation.”
Other Benefits
Logitech’s executive officers are eligible to receive the same benefits as all other employees, including the
following:
• Company contributions to defined contribution retirement programs, such as the Logitech Inc. 401(k).
• Health,welfareandlifeinsurancebenefits.
• OpportunityforparticipationintheLogitechEmployeeSharePurchasePlans.