April 8k Statement

On March 30, 2009, Polycom, Inc. (“Polycom” or the “Company”) entered into a Transition Agreement with David R. Phillips, the Company’s former head of Worldwide Sales (the “Transition Agreement.”) Pursuant to the terms of the Transition Agreement, Mr. Phillips’ employment with Polycom terminated on March 31, 2009. Mr. Phillips has agreed to non-competition and non-solicitation provisions for a period of one year following the termination of his employment. As consideration for Mr. Phillips’ execution and non-revocation of the legal release of claims set forth in the Transition Agreement and for the non-competition and non-solicitation provisions described above, Mr. Phillips will receive the following from Polycom: (1) a severance payment in the amount of $427,500, less applicable withholdings, payable in two installments of $320,625 on October 15, 2009 and $106,875 on April 1, 2010, upon the expiration of Mr. Phillips’ non-competition and non-solicitation obligations; (2) outplacement services for a period of six months, which are valued at approximately $6,000; (3) Company-paid COBRA insurance premiums for a period of twelve months, provided that Mr. Phillips timely elects such continuation coverage, which are valued at approximately $19,400; and (4) retention of Mr. Phillips’ Polycom-issued mobile phone, assigned telephone number, PDA and laptop computer. In addition, Polycom has agreed to reimburse Mr. Phillips for legal fees of up to $10,000. Pursuant to the terms of the Transition Agreement, in order to assist with transitioning the Company’s worldwide sales operations, Mr. Phillips worked on a part-time basis for the Company from February 17, 2009 to March 31, 2009. (that equates to about $17K for five weeks)

Not a bad deal. I am still so amazed at the amount of money Bob/Mike spend on "sales experiments". David was there approximately two years. Of which he was paid at least $700K in base pay..not sure as to how much bonus he received...and he received at least 100K shares of PLCM stock. So..my guess is all in all probably $2M investement and they didn't let it all play out. And...then on top of that... the fact that David axed several top people that not only were over performers but had been overperforming for several years at PLCM... I'm sorry, but it equalled a giant loss. Not only did they not let David move the ball forward... with all of his changes...he actually moved it backwards.