THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Enterasys Networks, Inc. (Retired) (ETS.X)

4/21/2005 Proxy Information

In connection with the resignation and termination of employment of Cosmo Santullo, the Company’s former Executive Vice President of Worldwide Sales, effective as of March 8, 2004, the Company and Mr. Santullo entered into a Separation Agreement and Release. Pursuant to the agreement, the Company agreed to pay Mr. Santullo twelve months of severance payments at his then current base rate of pay, payable in the form of bi-weekly payments of $15,385 over the ensuing twelve months.

In connection with the resignation and termination of employment of Kimberly Buxton, the Company’s former Vice President of Human Resources, effective as of August 13, 2004, the Company and Ms. Buxton entered into a Separation Agreement and Release. Pursuant to the agreement, the Company agreed to pay Ms. Buxton twelve months of severance payments at her then current base rate of pay, payable in the form of bi-weekly payments of $8,319 over the ensuing twelve months.

5/3/2004 Proxy Information

On February 21, 2003, an investor group led by Silver Lake Partners, L.P. notified the Company of their intention to exercise their right to redeem their shares of Series D and E Preferred Stock effective as of February 23, 2002. On March 3 2003, the Company redeemed all of the outstanding shares of Series D and E Preferred Stock for approximately $98.6 million in cash. James Davidson, now a former director of the Company, was a director of the Company at the time of the redemption and a founder and principal of Silver Lake Partners.

4/23/2003 Proxy Information

On February 21, 2003, an investor group led by Silver Lake Partners, L.P. (“Silver Lake”) notified the Company of their intention to exercise their right to redeem their shares of Series D and E Preferred Stock effective as of February 23, 2002. On March 3 2003, the Company redeemed all of the outstanding shares of Series D and E Preferred Stock for approximately $98.6 million in cash. James Davidson, one of the Company’s directors, is a founder and principal of Silver Lake.

On August 23, 1999, the Company entered into an interest-free promissory note with Mr. Fiallo, former Chief Executive Officer of the Company, in the amount of $100,000. The outstanding principal balance on the note of $100,000 was forgiven by the Company in connection with Mr. Fiallo’s resignation and termination of employment in April 2002. On January 1, 2000, the Company entered into an interest-free promissory note with Mr. Fiallo for the principal amount of $125,000. Pursuant to the terms of the note, the Company forgave 25% of the original principal balance of the note on January 1, 2001 and forgave the remaining original principal balance of $93,500 in connection with the merger of the Enterasys Subsidiary into the Company in August 2001.