Compensation Determinations for Officers.

On June 20, 2006, the Compensation Committee (the “Committee”) of the Board of Directors of 3Com Corporation (“3Com”) made the following compensation determinations for 3Com’s officers:

The following table and accompanying text describes in further detail the compensation determinations discussed above:

Fiscal 2007 Officer Bonus Targets and First Half 2007 Financial Metrics. The Committee established a target bonus opportunity for each of the officers for fiscal 2007 expressed as a percentage of base salary. The Committee set metrics for the first half of fiscal 2007 - defining when bonus payouts would be earned - based on the achievement of specified financial goals with respect to (1) 3Com’s operating profit on a non-GAAP basis and (2) various segment and divisional financial results in the following categories: revenue; non-GAAP operating profit; and contribution margin (defined as gross margin minus research and development expenses, adjusted for certain items). For each officer, the metrics were weighted between 20%-60% of a total 100% potential bonus opportunity. Each metric could be earned individually and independent of attainment of thresholds for other metrics, provided that no payouts are permitted unless the segment non-GAAP operating profit metric is achieved at “threshold level” or higher.

Although the “target” bonus amounts are set forth in the table above, the bonus potential ranges from 50%-200% of target amounts, based on the degree of attainment of financial metrics. For each metric described above, the Committee set goals for payouts of bonus at three levels: “threshold” (the achievement of which would result in a payout of 50% of target bonus amounts), “target” (the achievement of which would result in a payout of 100% of target bonus amounts) and “maximum” (the achievement of which would result in a payout of 200% of target bonus amounts). The actual payout would be based on a sliding scale for achievement attained in between specified levels, although no payouts would result unless, at a minimum, “threshold” achievement levels were attained. No payouts above 200% of target are permitted.

Officer bonuses are earned and paid semi-annually. Amounts calculated as per the methodology described above would therefore be divided by two for each bonus period.

Fiscal 2007 Sales Bonus Targets and First Quarter 2007 Financial Metrics - Dechant. In addition to the officer bonus described above, the Committee established a target sales bonus opportunity for Mr. Dechant for fiscal 2007 expressed as a percentage of base salary. The target is set forth in the table above. The Committee set metrics for the first quarter of fiscal 2007 - defining when Mr. Dechant’s sales bonus payout would be earned - based on the achievement of specified financial goals with respect to specified divisional financial results in the following categories: revenue; adjusted gross margin; and sales direct margin (defined as gross margin minus sales and marketing expense). These metrics were weighted between 10%-70% of a total 100% potential bonus opportunity. Each metric could be earned individually and independent of attainment of thresholds for other metrics.

Although the “target” sales bonus amount is set forth in the table above, the bonus potential ranges from 75%-200% of target amounts, based on the degree of attainment of financial metrics. For each metric described above, the Committee set goals for payouts of bonus at various levels. These goals were expressed as target ranges that correspond to pay-outs at one of the following bonus amounts: 75% of target amount, 100% (target), 125% of target amount, 150% of target amount and 200% of target amount. No payouts would result unless, at a minimum, specified threshold achievement levels were attained for the relevant metric. No payouts above 200% of target are permitted. In addition, no payout above 100% for the revenue metric will be permitted unless adjusted gross margin achieves a minimum specified threshold.

Sales bonus for Mr. Dechant is earned and paid quarterly. Amounts calculated as per the methodology described above would therefore be divided by four for each bonus period.

Other. The Committee may, in its discretion, make bonus payouts irrespective of whether financial metrics have been attained. In addition, certain officers are entitled to guaranteed minimum payments based on previously-disclosed employment arrangements.

Increase in Retainer for Chair of Audit and Finance Committee. On March 28, 2006, the Committee increased the annual retainer of the Chairman of the Audit and Finance Committee of the Board of Directors of 3Com from $2,500 to $5,000, effective September 2006.