Document:

EXHIBIT 10.3

                  NOTEHOLDER PREFERRED SHARE EXCHANGE AGREEMENT

Dated for reference the 30th day of December, 2002

AMONG:

                        ECLIPSE ENTERTAINMENT GROUP, INC.
                             of 10520 Venice Blvd.,
                              Culver City, CA 90232
                                    ("ECLE")

                              ANCIENT WARRIORS LLC
                            of 2265A Westwood Blvd.,
                              Los Angeles, CA 90064
                                     ("AW")

                             ECLIPSE RELEASING, INC.
                             of 10520 Venice Blvd.,
                              Culver City, CA 90232
                                     ("ECR")

                         (collectively the "Companies")

                                       AND

                                  THOMAS HUDSON
                           of 16906 S.E. 58th Street,
                               Bellevue, WA 98006

                                 ROBERT S. ANGEL
                         of 1800 Westlake Avenue North,
                          Suite 102, Seattle, WA 98109

                               MICHAEL J. WIESMANN
                              of 2225 94th Ave. NE,
                               Bellevue, WA. 98004

                                 MARTIN MCCURRY
                             of 12935 169th Ave. NE,
                                Redmond, WA 98052

                                   JOEY FIORE
                             of 1 Green Meadow Lane,
                              Cincinnati, OH 45242

                                RONALD M. ROSELLA
                            of 1228 - 2nd Avenue N.,
                                Seattle, WA 98109

                          WESTERN PACIFIC FUNDING CORP.
                               12935 169th Ave. NE
                                Redmond, WA 98052
<PAGE>
                                THOMAS DE DONATO
                              of 10257 NE 64th St.
                               Kirkland, WA 98003

                                 RUSSELL K. NOMI
                             of 17450 S.E. 40th Pl.,
                               Bellevue, WA 98008

                                 FRANCO COLUMBU
                            of 2265A Westwood Blvd.,
                              Los Angeles, CA 90064

                                   ALEC ROSSA
                              of 3902 Gibson Court,
                           Victoria, BC Canada V8N 6E2

                                  BRENT NELSON
                             of 10900 NE 8th Street,
                               Bellevue, WA 98004

              (the "noteholder" or collectively the "noteholders")

WHEREAS:

     A.   Eclipse  Entertainment  Group, Inc. is a public company engaged in the
          business of media and entertainment.

     B.   ECLE  has two  subsidiaries  Eclipse  Releasing,  Inc.,  a 100%  owned
          subsidiary and Ancient Warriors LLC., a 75% owned subsidiary.

     C.   ECLE, ECR and AW have received funding through various diverse funding
          instruments and agreements from a group of investors (the "noteholder"
          or collectively the "noteholders").

     D.   ECLE, ECR and AW wish to determine the appropriate payout structure to
          the  noteholders  and  to  obtain  sufficient  additional  funding  to
          aggressively  pursue the sales of the  movie,  Ancient  Warriors  (the
          "Movie")  and to  determine  and  organize a more viable  strategy and
          business focus for ECLE.

     E.   ECLE,  ECR, AW and the Noteholders  wish to agree on a  reorganization
          structure  to allow the  parties to  maximize  the  return  from their
          investments and maximize the return to shareholders.

Now therefore this agreement  witnesseth that in consideration of one dollar and
other good and valuable consideration the parties hereto agree as follows:

1.   ECLE agrees to transfer all right title and interest,  which they currently
     hold in and to the Movie to ECR.

2.   ECR agrees to authorize and create Ancient Warriors Series A to F Preferred
     Shares having the terms and conditions set out in Schedule A hereto.

3.   The Noteholders  agree to cancel their notes and any  outstanding  interest
     accruing  thereunder in exchange for the  appropriate  number and series of
     Ancient Warriors Series A to F Preferred Shares pursuant to Schedule B

4.   The parties hereto agree that the noteholder  priority list attached hereto
     as Schedule B sets out the order in which each Ancient  Warriors  Preferred
     Share shall be redeemed  from the  proceeds  from the sale of Movie and the
     number and series of Preferred Shares to be issued to each noteholder. More
     specifically,  the  proceeds  from the Movie  shall first be used to redeem
     Ancient  Warriors  Series  A  Preferred  Shares  of  the  Ancient  Warriors
<PAGE>
     Preferred  Share  Priority  List,  and upon  redemption  in full of all the
     Ancient  Warriors  Series A Preferred  Shares,  the proceeds  shall then be
     applied to the  redemption of the next highest  series of Ancient  Warriors
     Preferred Shares in alphabetical order.

5.   The parties  agree that should more than one  Shareholder  be included in a
     Series  of  Preferred  Shares,  then  each  Share in that  Series  shall be
     redeemed by the Company on a pro rata basis.

6.   As a bonus for agreeing to cancel their  existing  notes and exchange  them
     for Ancient Warriors Preferred Shares each Ancient Warriors Preferred Share
     shall  provide  the  holder  thereof  with an  irrevocable  option,  at the
     Preferred  Shareholders  request,  to exchange  all or any portion of their
     Preferred  Shares for a  predetermined  number of ECLE common shares at the
     rates and subject to the terms set out in Schedule A

7.   The  failure  of  any  noteholders  to  execute  this  document  shall  not
     invalidate the agreement entered into between the noteholders executing the
     agreement and the Companies  contained  herein.  Any noteholder who chooses
     not to execute this  agreement will not be able to rely upon or receive any
     of the benefits accruing hereunder.

MISCELLANEOUS

8.   All of the representations, warranties, covenants and agreements of each of
     the parties hereto shall survive the Closing.

9.   The parties shall  indemnify  and save the  Companies  and their  officers,
     directors and employees, from any and all actions taken or results achieved
     in furtherance of this  agreement,  whether arising out of or in connection
     with any breach of any  representation,  warranty,  covenant,  agreement or
     condition of that party contained herein, or not.

11.  All  notices  and  other  communications  required  or  permitted  by  this
     Agreement  to be given or made by any party to the other  shall be given or
     made in  writing  and be  delivered  by hand or double  registered  mail or
     conveyed by telex or facsimile transmission to the parties at the following
     addresses and numbers and to the attention of the following persons:

     (a)  if to any of the parties As above.

     or to such other  addresses,  numbers,  or persons as the  parties may give
     each other notice of from time to time.  Proof of delivery or  transmission
     in such manner shall constitute proof of receipt.

14.  Time shall be of the essence hereof.

15.  This Agreement  constitutes the entire agreement between the parties hereto
     and supersedes all prior contracts,  agreements and understandings  between
     the  parties.   There  are  no  representations,   warranties,   collateral
     agreements  or  conditions  affecting  this  transaction  other than as are
     expressed or referred to herein in writing.

16.  This  Agreement  shall be governed by and construed in accordance  with the
     laws of the  State  of  Nevada.  The  courts  of  Nevada  shall  have  sole
     jurisdiction  to hear and  determine  all  manner of  disputes  and  claims
     arising out of or in any way  connected  with the  construction,  breach or
     alleged,  threatened or anticipated  breach of this Agreement and determine
     all questions as to the validity, existence or enforceability hereof.

17.  This  Agreement  shall  enure to the  benefit  of and be  binding  upon the
     respective heirs, successors and assigns of the parties hereto.

18.  Should any provision or provisions or conditions of this  Agreement be void
     or not enforceable,  it or they shall be considered  separate and severable
<PAGE>
     from this  Agreement  and its remaining  provisions  and  conditions  shall
     remain in force and be binding  upon the parties  hereto as though the said
     provision or provisions or conditions had never been included.

19.  The  Schedules  (if any) attached to this  Agreement  are  incorporated  by
     reference as fully as though  contained  in the body  hereof.  Wherever any
     term or condition,  expressed or implied, of such Schedules conflicts or is
     at variance  with any term or  condition  of this  Agreement,  such term or
     condition of this Agreement shall prevail.

20.  This Agreement and any certificate or other writing delivered in connection
     herewith may be executed in any number of counterparts and any party hereto
     may execute any counterpart, each of which when executed and delivered will
     be deemed to be an original and all of which counterparts of this Agreement
     or such other writing as the case may be, taken  together will be deemed to
     be one and the same  instrument.  The  execution  of this  Agreement or any
     other writing party hereto will not become effective until all counterparts
     hereof have been executed by all the parties hereto.

Executed and agreed to by direct  signature or  execution  of  counterpart  copy
hereof;

----------------------------------
ECLIPSE ENTERTAINMENT GROUP, INC.

----------------------------------      ----------------------------------------
ANCIENT WARRIORS, LLC.                  ECLIPSE RELEASING, INC.

----------------------------------      ----------------------------------------
THOMAS HUDSON                           ROBERT S. ANGEL

----------------------------------      ----------------------------------------
MICHAEL J. WIESMANN                     MARTIN MCCURRY

----------------------------------      ----------------------------------------
JOEY FIORE                              RONALD M. ROSELLA

----------------------------------      ----------------------------------------
WESTERN PACIFIC FUNDING CORP.           THOMAS DE DONATO

----------------------------------      ----------------------------------------
RUSSELL K. NOMI                         FRANCO COLUMBU

----------------------------------      ----------------------------------------
ALEC ROSSA                              BRENT NELSON
<PAGE>
                                  SCHEDULE "A"

The Directors of Eclipse  Releasing Inc. (herein the "Company") have resolved to
create six series of Preferred Shares to be described as follows:

                  "Ancient Warriors Series A Preferred Shares"
                  "Ancient Warriors Series B Preferred Shares"
                  "Ancient Warriors Series C Preferred Shares"
                  "Ancient Warriors Series D Preferred Shares"
                  "Ancient Warriors Series E Preferred Shares"
                  "Ancient Warriors Series F Preferred Shares"

The special rights and restrictions attaching to each Series of Ancient Warriors
Preferred Shares are as follows

     i)   the  Ancient  Warriors  Preferred  Shares  of all  series  shall  have
          attached  thereto a par value of one dollar ($1.00) which shall be the
          amount paid up with respect to each share;

     ii)  the Ancient Warriors  Preferred Shares shall be issued on a dollar for
          dollar  basis  in  exchange  for  the  notes  and  interest   accruing
          thereunder which have been issued against the Movie;

     iii) the Ancient Warrior Preferred Shares shall pay interest at the rate of
          5% annually,  payable in cash or stock in Eclipse Entertainment Group,
          Inc., (hereafter ECLE) as determined by the Company

     iv)  the  Ancient  Warriors  Preferred  Shares of all  series  shall be non
          voting;

     v)   the Ancient Warriors Preferred Shares shall be redeemable and shall be
          redeemed by the Company  from any and all the revenue  received by the
          Company from the Movie. The Ancient Warriors Preferred Shares shall be
          redeemed by the Company in the following order:

          Ancient  Warriors  Series  A  Preferred  Shares,   and  upon  complete
          redemption  of  this  series,  then  the  Ancient  Warriors  Series  B
          Preferred Shares,  and upon complete  redemption of this series,  then
          the Ancient  Warriors  Series C Preferred  Shares,  and upon  complete
          redemption  of  this  series,  then  the  Ancient  Warriors  Series  D
          Preferred Shares,  and upon complete  redemption of this series,  then
          the Ancient  Warriors  Series E Preferred  Shares,  and upon  complete
          redemption  of  this  series,  then  the  Ancient  Warriors  Series  F
          Preferred Shares;

     vi)  Any Ancient Warrior Preferred Share converted to common shares of ECLE
          shall be issued  pursuant to such terms and conditions as are required
          by  any  Regulatory   Authorities   having   jurisdiction   over  such
          transaction;

     vii) the Ancient  Warrior  Preferred  Shares  shall rank in priority to the
          common shares as to dividends;
<PAGE>
    viii) the  holders  of  the  Ancient  Warrior   Preferred  Shares  shall  be
          entitled,  on the  distribution  of  assets of the  Company  or on the
          liquidation,   dissolution  or  winding-up  of  the  Company,  whether
          voluntary or  involuntary,  or on any other  distribution of assets of
          the  Company  among its  members  for the  purpose  of  winding up its
          affairs, to receive,  before any distribution shall be made to holders
          of the common shares or any other shares of the Company ranking junior
          to the Ancient Warrior  Preferred  Shares with respect to repayment of
          capital,  (if any) the amount paid up with  respect to each  preferred
          share  held  by  them,   together   with  all   declared   and  unpaid
          non-cumulative  dividends (if any and if preferential)  thereon. After
          payment to holders of Ancient Warrior  Preferred Shares of the amounts
          so payable to them, they shall not be entitled to share in any further
          distribution  of the  property  or  assets  of the  Company  except as
          specifically  provided in the special rights and restrictions attached
          to any particular series.
<PAGE>
                                   SCHEDULE B

<TABLE>
<CAPTION>
                                                               PAID         INTEREST PAYABLE      ANCIENT WARRIOR
CATEGORY       INVESTOR NAME                    AMOUNT         FROM        (THRU DEC 31, 2002)    PREFERRED SHARES
--------       -------------                    ------         ----        -------------------    ----------------
<S>            <C>                             <C>           <C>           <C>                   <C>
    A          TOM HUDSON                        30,000          ECLE                              30,000 Series A
               ROB ANGEL                         10,000          ECLE                              10,000 Series A
               WESTERN PACIFIC FUNDING           10,000          ECLE                              10,000 Series A
               JOEY FIORE                        40,000          ECLE                              40,000 Series A
               RUSS NOMI                          2,500          ECLE                               2,500 Series A

    B          TOM HUDSON                       300,000          ECLE            42,375.00        342,375 Series B
               ROB ANGEL                         50,000           ECR             1,875.00         51,875 Series B

    C          WESTERN PACIFIC FUNDING          100,000       ECLE/AW            13,812.50        113,813 Series C
               JOEY FIORE                       100,000          ECLE            18,000.00        118,000 Series C
               ROB ANGEL                         50,000       ECLE/AW             6,093.75         56,094 Series C
               RUSS NOMI                         25,000       ECLE/AW             3,270.31         28,270 Series C

    D          MIKE WIESMANN                     50,000            AW             6,750.00         56,750 Series D
               FRANCO GROUP                     300,000            AW            60,000.00        360,000 Series D
               BRENT NELSON                     100,000          ECLE            16,000.00        116,000 Series D
               JOEY FIORE                       300,000          ECLE            49,500.00        349,500 Series D

    E          RON ROSELLA                      120,000          ECLE            18,150.00        138,150 Series E
               MIKE WIESMANN                    120,000          ECLE            18,150.00        138,150 Series E
               MARTY MCCURRY                    120,000          ECLE            18,150.00        138,150 Series E
               BRENT NELSON                     200,000          ECLE            32,000.00        232,000 Series E

    F          ALEC ROSSA                       115,000          ECLE            37,566.67        152,567 Series F
               BRENT NELSON                     660,128          ECLE           105,620.48        765,748 Series F

    G          FRANCO GROUP                     400,000            AW                 0.00        400,000 Series G
                                             ----------                        -----------
                         TOTAL                3,202,628                         447,313.71
</TABLE><PAGE>
                                                                    Exhibit 10.1

                                 CELERITEK, INC.

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

         This Change of Control Severance Agreement (the "Agreement") is made
and entered into effective as of November 22, 2002 (the "Effective Date"), by
and between Tamer Husseini (the "Employee") and Celeritek, Inc., a California
corporation (the "Company"). Certain capitalized terms used in this Agreement
are defined in Section 1 below.

                                    RECITALS

         A. It is expected that the Company from time to time will consider the
possibility of a Change of Control. The Board of Directors of the Company (the
"Board") recognizes that such consideration can be a distraction to the Employee
and can cause the Employee to consider alternative employment opportunities.

         B. The Board believes that it is in the best interests of the Company
and its shareholders to provide the Employee with an incentive to continue his
employment and to maximize the value of the Company upon a Change of Control for
the benefit of its shareholders.

         C. In recognition of Employee's longstanding service with the Company
during which time Employee's leadership has been fundamental to the Company's
development and in order to provide the Employee with enhanced financial
security and sufficient encouragement to remain with the Company notwithstanding
the possibility of a Change of Control, the Board believes that it is imperative
to provide the Employee with certain severance benefits upon the Employee's
termination of employment in connection with a Change of Control.

                                    AGREEMENT

         In consideration of the mutual covenants herein contained and the
continued employment of the Employee by the Company, the parties agree as
follows:

         1. Definition of Terms. The following terms referred to in this
Agreement shall have the following meanings:

            (a) Cause. "Cause" shall mean (i) the Employee's willful, repeated
failure to substantially perform his duties (except due to physical or mental
illness), if the Employee fails to cure within fifteen (15) days after there has
been delivered to the Employee from the Company written notice of such failure;
(ii) a willful act by the Employee that constitutes gross misconduct and is
injurious to the Company; (iii) any act of personal dishonesty taken by the
Employee in connection with his responsibilities as an employee which is
intended to result in substantial personal enrichment of the Employee; or (iv)
the Employee's conviction of or plea of no contest to a felony.
<PAGE>
            (b) Change of Control. "Change of Control" shall mean the occurrence
of any of the following events:

                (i) the approval by the shareholders of the Company of a plan of
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company's assets;

                (ii) the approval by shareholders of the Company of a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than sixty percent (60%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation;

                (iii) any "person" (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended) becoming the
"beneficial owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing forty percent (40%) or
more of the total voting power represented by the Company's then outstanding
voting securities; or

                (iv) a change in the composition of the Board, as a result of
which fewer than sixty-six percent (66%) of the directors are Incumbent
Directors. "Incumbent Directors" shall mean directors who either (A) are
directors of the Company as of the date hereof, or (B) are elected, or nominated
for election, to the Board with the affirmative votes of at least a majority of
those directors whose election or nomination was not in connection with any
transactions described in subsections (i), (ii), or (iii) or in connection with
an actual or threatened proxy contest relating to the election of directors of
the Company.

            (c) High Bonuses. "High Bonuses" shall mean the two (2) highest
annual bonuses paid by the Company for the preceding five (5) fiscal years,
payable in a lump sum.

            (d) Involuntary Termination. "Involuntary Termination" shall mean:

                (i) without the Employee's express written consent, a
significant reduction of the Employee's title, authority, duties, position or
responsibilities relative to the Employee's title, authority, duties, position
or responsibilities in effect immediately prior to such reduction, or the
removal of the Employee of such title, authority, position, duties and
responsibilities, unless the Employee is provided with comparable title,
authority, duties, position and responsibilities; provided, however, that a
reduction in title solely by virtue of the Company being acquired and made part
of a larger entity shall not constitute an "Involuntary Termination";

                (ii) without the Employee's express written consent, a material
reduction, without good business reasons, of the facilities and perquisites
(including office space and location) available to the Employee immediately
prior to such reduction;

                                      -2-
<PAGE>
                (iii) without the Employee's express written consent, a
reduction by the Company of the Employee's base salary or bonus as in effect
immediately prior to such reduction;

                (iv) without the Employee's express written consent, a material
reduction by the Company in the kind or level of employee benefits to which the
Employee is entitled immediately prior to such reduction with the result that
the Employee's overall benefits package is materially reduced;

                (v) without the Employee's express written consent, the
relocation of the Employee's principal place of employment to a facility or a
location more than thirty (30) miles from his current location;

                (vi) any purported termination of the Employee by the Company
which is not effected for Cause or for which the grounds relied upon are not
valid; or

                (vii) the failure of the Company to obtain the assumption of
this Agreement by any successors contemplated in Section 7 below.

            (e) Termination Date. "Termination Date" shall mean the effective
date of any notice of termination delivered by one party to the other hereunder.

         2. Term of Agreement. This Agreement shall terminate upon the date that
all obligations of the parties hereto under this Agreement have been satisfied.

         3. At-Will Employment. The Company and the Employee acknowledge that
the Employee's employment is and shall continue to be at-will, as defined under
applicable law. If the Employee's employment terminates for any reason, the
Employee shall not be entitled to any payments, benefits, damages, awards or
compensation other than as provided by this Agreement, or as may otherwise be
established under the Company's then existing employee benefit plans or policies
at the time of termination.

         4. Severance Benefits.

            (a) Involuntary Termination in Connection with a Change of Control.
If the Employee's employment with the Company terminates as a result of an
Involuntary Termination at any time within twenty-four (24) months after a
Change of Control or within three (3) months on or before a Change of Control,
and the Employee signs and does not revoke a standard release of claims with the
Company in a form acceptable to the Company, then the Employee shall be entitled
to the following severance benefits:

                (i) three (3) times the Employee's annual base salary as in
effect as of the date of such termination, less applicable withholding, payable
in a lump sum within thirty (30) days of the Involuntary Termination;

                (ii) three (3) times the average of the High Bonuses, less
applicable withholding, payable in a lump sum within thirty (30) days of the
Involuntary Termination;

                                      -3-
<PAGE>
                (iii) all stock options granted by the Company to the Employee
prior to the Change of Control shall become fully vested and exercisable as of
the date of the termination to the extent such stock options are outstanding and
unexercisable at the time of such termination and all stock subject to a right
of repurchase by the Company (or its successor) that was purchased prior to the
Change of Control shall have such right of repurchase lapse with respect to all
of the shares;

                (iv) to the extent eligible on the date of termination, the
Employee will be permitted to convert his coverage under the Company's life
insurance plan to an individual policy for six (6) months from the date of the
Employee's termination, at no additional after-tax cost than the Employee would
have had as an employee. To the extent such individual coverage cannot be
provided without jeopardizing the tax status of the Company's life insurance
plan, for underwriting reasons or otherwise, the Company shall pay the Employee
an amount such that the Employee can purchase such benefits separately at no
greater after-tax cost to the Employee than he would have had if the benefits
were provided to the Employee as an employee; and

                (v) reimbursement by the Company of the group health
continuation coverage premiums for the Employee and the Employee's eligible
dependents under Title X of the Consolidated Budget Reconciliation Act of 1985,
as amended ("COBRA") as in effect through the lesser of (x) eighteen (18) months
from the date of such termination, (y) the date upon which the Employee and the
Employee's eligible dependents become covered under similar plans, or (z) the
date the Employee no longer constitutes a "Qualified Beneficiary" (as such term
is defined in Section 4980B(g) of the Code); provided, however, that the
Employee will be solely responsible for electing such coverage within the
required time period.

            (b) Voluntary Resignation in Connection with a Change of Control. If
the Employee's employment with the Company terminates as a result of a voluntary
resignation within ninety (90) days following a Change of Control, and the
Employee signs and does not revoke a standard release of claims with the Company
in a form acceptable to the Company, then the Employee shall be entitled to the
following severance benefits:

                (i) one (1) times the Employee's annual base salary as in effect
as of the date of such termination, less applicable withholding, payable in a
lump sum within thirty (30) days of termination;

                (ii) one (1) times the average of the High Bonuses, less
applicable withholding, payable in a lump sum within thirty (30) days of
termination; and

                (iii) fifty percent (50%) of the unvested shares subject to all
stock options granted by the Company to the Employee prior to the Change of
Control shall become fully vested and exercisable as of the date of the
termination to the extent such stock options are outstanding and unexercisable
at the time of such termination and all stock subject to a right of repurchase
by the Company (or its successor) that was purchased prior to the Change of
Control shall have such right of repurchase lapse with respect to fifty percent
(50%) of all of the shares subject to such a right of repurchase.

                                      -4-
<PAGE>
            (c) Termination Apart from a Change of Control. If the Employee's
employment with the Company terminates other than as a result of an Involuntary
Termination within the twenty-four (24) months following a Change of Control or
within three (3) months on or before a Change of Control, or other than as a
result of a voluntary resignation within ninety (90) days following a Change of
Control, then the Employee shall not be entitled to receive severance or other
benefits hereunder, but may be eligible for those benefits (if any) as may then
be established under the Company's then existing severance and benefits plans
and policies at the time of such termination.

            (d) Accrued Wages and Vacation; Expenses. Without regard to the
reason for, or the timing of, the Employee's termination of employment: (i) the
Company shall pay the Employee any unpaid wages due for periods prior to the
Termination Date; (ii) the Company shall pay the Employee all of the Employee's
accrued and unused vacation through the Termination Date; and (iii) following
submission of proper expense reports by the Employee, the Company shall
reimburse the Employee for all expenses reasonably and necessarily incurred by
the Employee in connection with the business of the Company prior to the
Termination Date. These payments shall be made promptly upon termination and
within the period of time mandated by law.

         5. Limitation on Payments. In the event that the severance and other
benefits provided for in this Agreement or otherwise payable to the Employee (i)
constitute "parachute payments" within the meaning of Section 280G of the Code,
and (ii) would be subject to the excise tax imposed by Section 4999 of the Code
(the "Excise Tax"), then the Employee's benefits under this Agreement shall be
either:

            (a) delivered in full, or

            (b) delivered as to such lesser extent which would result in no
portion of such benefits being subject to the Excise Tax,

whichever of the foregoing amounts, taking into account the applicable federal,
state and local income taxes and the Excise Tax, results in the receipt by the
Employee on an after-tax basis, of the greatest amount of benefits,
notwithstanding that all or some portion of such benefits may be taxable under
Section 4999 of the Code.

         Unless the Company and the Employee otherwise agree in writing, any
determination required under this Section shall be made in writing by the
Company's independent public accountants (the "Accountants"), whose
determination shall be conclusive and binding upon the Employee and the Company
for all purposes. For purposes of making the calculations required by this
Section, the Accountants may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith
interpretations concerning the application of Sections 280G and 4999 of the
Code. The Company and the Employee shall furnish to the Accountants such
information and documents as the Accountants may reasonably request in order to
make a determination under this Section. The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations
contemplated by this Section.

                                      -5-
<PAGE>
         6. Legal Fees.

            (a) Negotiation of Agreement. The Company shall reimburse the
Employee up to seven thousand five hundred dollars ($7,500) for reasonable legal
fees incurred in connection with the negotiation of the terms of this Agreement,
payable within thirty (30) business days of the Company's receipt of a written
invoice from the Employee for such incurred fees.

            (b) Disputes. The Company shall reimburse the Employee up to twenty
thousand dollars ($20,000) for reasonable legal fees incurred as a result of any
dispute between the Employee and the Company relating to this Agreement, payable
within thirty (30) business days of the Company's receipt of a written invoice
from the Employee for such incurred fees.

         7. Successors.

            (a) Company's Successors. Any successor to the Company (whether
direct or indirect and whether by purchase, lease, merger, consolidation,
liquidation or otherwise) to all or substantially all of the Company's business
and/or assets shall assume the Company's obligations under this Agreement and
agree expressly to perform the Company's obligations under this Agreement in the
same manner and to the same extent as the Company would be required to perform
such obligations in the absence of a succession. For all purposes under this
Agreement, the term "Company" shall include any successor to the Company's
business and/or assets which executes and delivers the assumption agreement
described in this subsection (a) or which becomes bound by the terms of this
Agreement by operation of law.

            (b) Employee's Successors. Without the written consent of the
Company, the Employee shall not assign or transfer this Agreement or any right
or obligation under this Agreement to any other person or entity.
Notwithstanding the foregoing, the terms of this Agreement and all rights of the
Employee hereunder shall inure to the benefit of, and be enforceable by, the
Employee's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

         8. Notices.

            (a) General. Notices and all other communications contemplated by
this Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by U.S. registered or certified mail,
return receipt requested and postage prepaid. In the case of the Employee,
mailed notices shall be addressed to him at the home address which he most
recently communicated to the Company in writing. In the case of the Company,
mailed notices shall be addressed to its corporate headquarters, and all notices
shall be directed to the attention of its Secretary.

            (b) Notice of Termination. Any termination by the Company for Cause
or by the Employee as a result of a voluntary resignation or an Involuntary
Termination shall be communicated by a notice of termination to the other party
hereto given in accordance with this Section. Such notice shall indicate the
specific termination provision in this Agreement relied upon,

                                      -6-
<PAGE>
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination under the provision so indicated, and shall
specify the Termination Date (which shall be not more than thirty (30) days
after the giving of such notice). The failure by the Employee to include in the
notice any fact or circumstance which contributes to a showing of Involuntary
Termination shall not waive any right of the Employee hereunder or preclude the
Employee from asserting such fact or circumstance in enforcing his rights
hereunder.

         9. Non-Solicitation. Until the date that is three (3) years from the
date of termination of the Employee's employment with the Company, the Employee
agrees and acknowledges that the Employee shall not either directly or
indirectly solicit, induce, attempt to hire, recruit, encourage, take away, hire
any employee of the Company or cause an employee to leave his or her employment
either for the Employee or for any other entity or person. Upon any breach of
this section, all severance payments pursuant to this Agreement shall
immediately cease.

         10. Arbitration.

            (a) General. In consideration of the Employee's service to the
Company, its promise to arbitrate all employment related disputes the Employee's
receipt of the compensation, pay raises and other benefits paid to the
Employee's by the Company, at present and in the future, the Employee agrees
that any and all controversies, claims, or disputes with anyone (including the
Company and any employee, officer, director, shareholder or benefit plan of the
Company in their capacity as such or otherwise) arising out of, relating to, or
resulting from the termination of the Employee's service with the Company,
including any breach of this Agreement, shall be subject to binding arbitration
under the Arbitration Rules set forth in California Code of Civil Procedure
Section 1280 through 1294.2, including Section 1283.05 (the "Rules") and
pursuant to California law. Disputes which the Employee agrees to arbitrate, and
thereby agrees to waive any right to a trial by jury, include any statutory
claims under state or federal law, including, but not limited to, claims under
Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act
of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers
Benefit Protection Act, the California Fair Employment and Housing Act, the
California Labor Code, claims of harassment, discrimination or wrongful
termination and any statutory claims. The Employee further understands that this
Agreement to arbitrate also applies to any disputes that the Company may have
with the Employee.

            (b) Procedure. The Employee agrees that any arbitration will be
administered by the American Arbitration Association ("AAA") and that a neutral
arbitrator will be selected in a manner consistent with its National Rules for
the Resolution of Employment Disputes. The arbitration proceedings will allow
for discovery according to the rules set forth in the NATIONAL RULES FOR THE
RESOLUTION OF EMPLOYMENT DISPUTES or CALIFORNIA CODE OF CIVIL PROCEDURE. The
Employee agrees that the arbitrator shall have the power to decide any motions
brought by any party to the arbitration, including motions for summary judgment
and/or adjudication and motions to dismiss and demurrers, prior to any
arbitration hearing. The Employee agrees that the arbitrator shall issue a
written decision on the merits. The Employee also agrees that the arbitrator
shall have the power to award any remedies, including attorneys' fees and costs,
available under applicable law, subject to Section 6. The Employee understands
the Company will pay for any administrative or hearing fees

                                      -7-
<PAGE>
charged by the arbitrator or AAA except that the Employee shall pay the first
$200.00 of any filing fees associated with any arbitration initiated by the
Employee. The Employee agrees that the arbitrator shall administer and conduct
any arbitration in a manner consistent with the Rules and that to the extent
that the AAA's National Rules for the Resolution of Employment Disputes conflict
with the Rules, the Rules shall take precedence.

            (c) Remedy. Except as provided by the Rules, arbitration shall be
the sole, exclusive and final remedy for any dispute between the Employee and
the Company. Accordingly, except as provided for by the Rules, neither the
Employee nor the Company will be permitted to pursue court action regarding
claims that are subject to arbitration. Notwithstanding, the arbitrator will not
have the authority to disregard or refuse to enforce any lawful Company policy,
and the arbitrator shall not order or require the Company to adopt a policy not
otherwise required by law which the Company has not adopted.

            (d) Availability of Injunctive Relief. In addition to the right
under the Rules to petition the court for provisional relief, the Employee
agrees that any party may also petition the court for injunctive relief where
either party alleges or claims a violation of this Agreement or the
Confidentiality Agreement or any other agreement regarding trade secrets,
confidential information, non-solicitation or Labor Code Section 2870. In the
event either party seeks injunctive relief, the prevailing party shall be
entitled to recover reasonable costs and attorneys' fees, subject to Section 6.

            (e) Administrative Relief. the Employee understands that this
Agreement does not prohibit the Employee from pursuing an administrative claim
with a local, state or federal administrative body such as the Department of
Fair Employment and Housing, the Equal Employment Opportunity Commission or the
workers' compensation board. This Agreement does, however, preclude the Employee
from pursuing court action regarding any such claim.

            (f) Voluntary Nature of Agreement. The Employee acknowledges and
agrees that the Employee is executing this Agreement voluntarily and without any
duress or undue influence by the Company or anyone else. The Employee further
acknowledges and agrees that the Employee has carefully read this Agreement and
that the Employee has asked any questions needed for him to understand the
terms, consequences and binding effect of this Agreement and fully understand
it, including that the Employee is waiving his right to a jury trial. Finally,
the Employee agrees that he has been provided an opportunity to seek the advice
of an attorney of his choice before signing this Agreement.

         11. Miscellaneous Provisions.

            (a) No Duty to Mitigate. The Employee shall not be required to
mitigate the amount of any payment contemplated by this Agreement, nor shall any
such payment be reduced by any earnings that the Employee may receive from any
other source.

            (b) Waiver. No provision of this Agreement may be modified, waived
or discharged unless the modification, waiver or discharge is agreed to in
writing and signed by the Employee and by an authorized officer of the Company
(other than the Employee). No waiver by

                                      -8-
<PAGE>
either party of any breach of, or of compliance with, any condition or provision
of this Agreement by the other party shall be considered a waiver of any other
condition or provision or of the same condition or provision at another time.

            (c) Integration. This Agreement and any outstanding stock option
agreements and restricted stock purchase agreements referenced herein represent
the entire agreement and understanding between the parties as to the subject
matter herein and supersede all prior or contemporaneous agreements, whether
written or oral, with respect to this Agreement and any stock option agreement
or restricted stock purchase agreement.

            (d) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the internal substantive
laws, but not the conflicts of law rules, of the State of California.

            (e) Severability. The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

            (f) Employment Taxes. All payments made pursuant to this Agreement
shall be subject to withholding of applicable income and employment taxes.

            (g) Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together will
constitute one and the same instrument.

                                      -9-
<PAGE>
IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
of the Company by its duly authorized officer, as of the day and year first
above written.

COMPANY:                          CELERITEK, INC.

                                  By:  /s/Margaret Smith
                                     -------------------------------------------

                                  Title:  CFO
                                        ----------------------------------------

EMPLOYEE:                            /s/ Tamer Husseini
                                     -------------------------------------------
                                     Signature

                                     Tamer Husseini
                                     -------------------------------------------
                                     Printed Name

                                      -10-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]