Document:

exv10w47

 

Exhibit 10.47

February 14, 2005

Jeffrey A. Quiram

Re: Stock Option Grant: 1,200,000

Dear Jeff:

I am pleased to present you with the enclosed stock option grant.

1. Fill out the required section below and return it. Your grant cannot be
finalized without it. (A copy will be returned to you after being countersigned by an officer of
STI.)

2. Sign the Stock Option Agreement and return it. (A copy will be returned to you
after being countersigned by an officer of STI.)

Please return all documentation to me.

In connection with your grant, you can review the Company’s 2003 Proxy, and the 2003 Stock Option
Prospectus on our network at g:\groups\stock option financials\prospectus. If you desire a copy of
these documents, or have questions regarding your grant, please feel free to contact me (805)
690-4539.

I am pleased that you have decided to join STI, and look forward to your contributions to the
Company.

Sincerely,

Martin S. McDermut

Senior Vice President, Chief Financial Officer

For processing purposes, please complete. (If married, spouse must sign.)

	 	 	 
	                     Single (initial here)

	 	                     Married (see below)

BY HIS OR HER SIGNATURE BELOW, THE SPOUSE OF THE OPTIONEE AGREES TO BE BOUND BY ALL OF THE TERMS
AND CONDITIONS OF THE OPTION AGREEMENT.

	 	 	 
	 

	 	 
	Print
- Name of Spouse

	 	Signature

encl.

 

 

Superconductor Technologies Inc

460 Ward Drive

Santa Barbara, CA 93111-2356

Notice of Grant of Stock Options and Option Agreement

ID: __________

	 	 	 	 
	Name: Jeffrey A. Quiram

	 	Option Number:	 
	Address: [OMITTED]

	 	Plan: 2003	 
	City, State Zip: [OMITTED]
	 	ID:	 

Effective 2/11/05, you have been granted a Stock Option to buy 1,200,000 shares of

Superconductor Technologies Inc. (the Company) stock at $1.04 per share (the price of common stock
on 2/11/05 when the Company’s board of directors approved issuances of the Stock Option).

Except as otherwise set forth in your Employment Agreement dated as of February 14, 2005, (the
“Employment Agreement”) the shares will become fully vested on the date shown. In the
event of a conflict between this option agreement and the Employment Agreement, the Employment
Agreement shall govern.

	 	 	 	 	 	 	 	 	 
	 
	 	Shares	 	 	Full Vest (1)	 	 	Expiration (1)	 
	 	300,000
	 	 	2/17/2006
	 	 	2/11/2015	 
	 	36 equal monthly installments of
25,000
beginning 3/17/2006
	 	 	2/17/2009
	 	 	2/11/2015	 
	 

	1.	 	Vesting based on start date of 2/17/05 set forth Section 1.3 of the Employment
Agreement. See the Employment Agreement for accelerated vesting provisions.
	 
	2.	 	Expiration is ten (10) ten years from date of grant which was 2/11/05.

By your signature and the Company’s signature below, you and the Company agree that these options
are granted under and governed by the terms and conditions of the Company’s 2003 Equity Incentive
Plan and the Option Agreement, all of which are attached and made a part of this document.

			
	 	 	 
	Superconductor Technologies Inc.
	 	Date: As of February 14, 2005

	 	 	 	 
	By:

	 	 	 
	

	 	Martin S. McDermut

Senior Vice President, Chief Financial Officer	 

	 	 	 
	 

	 	 
	Jeffrey A Quiram

	 	Date

 

 

SUPERCONDUCTOR TECHNOLOGIES INC.

2003 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

          This Option Agreement is subject to the terms and conditions in the Employment Agreement
between the Company and Jeffrey A. Quiram dated as of February 14, 2005. In the event of any
inconsistency between this Option Agreement and the Employment Agreement, the terms of the
Employment Agreement will govern. This Option Agreement is also subject to the terms and
conditions of the 2003 Equity Incentive Plan, but the terms of this Option Agreement will govern to
the extent deviations are permitted under the 2003 Equity Incentive Plan.

          Unless otherwise defined herein, the terms defined in the Plan shall have the same defined
meanings in this Option Agreement.

II. AGREEMENT

          A. Grant of Option.

          The Plan Administrator of the Company hereby grants to the Optionee named in the Notice of
Grant attached as Part I of this Agreement (the “Optionee”) an option (the “Option”) to purchase
the number of Shares, as set forth in the Notice of Grant, at the exercise price per share set
forth in the Notice of Grant (the “Exercise Price”), subject to the terms and conditions of the
Plan, which is incorporated herein by reference.

          If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is
intended to qualify as an Incentive Stock Option under Section 422 of the Code. However, if this
Option is intended to be an Incentive Stock Option, to the extent that it exceeds the $100,000 rule
of Code Section 422(d) it shall be treated as a Non-statutory Stock Option (“NSO”).

          B. Exercise of Option.

               (a) Right to Exercise. This Option is exercisable during its term in accordance with
the Vesting Schedule set out in the Notice of Grant and the applicable provisions of the Plan and
this Option Agreement.

               (b) Termination Period. See Employment Agreement.

               (c) Method of Exercise. This Option is exercisable by delivery of an exercise notice,
in the form attached as Exhibit A (the “Exercise Notice”), which shall state the election to
exercise the Option, the number of Shares in respect of which the Option is being exercised (the
“Exercised Shares”), and such other representations and agreements as may be required by the
Company pursuant to the provisions of the Plan. The Exercise Notice shall be completed by the
Optionee and delivered to the Secretary of the Company. The Exercise Notice shall be accompanied by
payment of the aggregate Exercise Price and a confirmation of the obligation to pay withholding
taxes as to all Exercised Shares. Upon receipt of an Exercise Notice, the Company shall provide
Optionee with the amount of withholding taxes due in connection with the Exercise Notice (the
“Withholding Tax”). This Option shall be deemed to be exercised upon receipt by the Company of such
fully executed Exercise Notice accompanied by such aggregate Exercise Price and Withholding Taxes.

               No Shares shall be issued pursuant to the exercise of this Option unless such issuance and
exercise complies with Applicable Laws. Assuming such compliance, for income tax purposes the
Exercised Shares shall be considered transferred to the Optionee on the date the Option is
exercised with respect to such Exercised Shares.

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          C. Method of Payment.

          Payment of the aggregate Exercise Price and Withholding Taxes shall be paid in full in cash or
by any of the following methods:

	 	1.  	By personal check of the Optionee.
	 
	 	2.  	By means of a broker-assisted exercise whereby the Optionee
delivers to the Company, together with a properly executed exercise notice,
such other documentation as the Committee and the broker assisting in the
transaction shall require to effect an exercise of the Option, a sale of the
            shares of Common Stock acquired upon exercise and the delivery to the Company
of the proceeds of such sale in full payment of the Exercise Price and
Withholding Taxes.
	 
	 	3.  	Any combination of the foregoing methods of payment.

The proceeds of a sale of Common Stock upon exercise of an Option shall constitute general funds of
the Company.

          D. Non-Transferability of Option.

          This Option may not be transferred in any manner otherwise than by will or by the laws of
descent or distribution and may be exercised during the lifetime of Optionee only by the Optionee.
The terms of the Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

          E. Term of Option.

          This Option may be exercised only within the term set out in the Notice of Grant, and may be
exercised during such term only in accordance with the Plan and the terms of this Option Agreement.

          F. Tax Consequences.

          Some of the federal tax consequences relating to this Option, as of the date of this Option,
are set forth below. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE
SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR
DISPOSING OF THE SHARES.

          G. Exercising the Option.

               1. Non-statutory Stock Option. The Optionee may incur regular federal and state
income tax liability upon exercise of a NSO. The Optionee will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair
Market Value of the Exercised Shares on the date of exercise over their aggregate Exercise Price.
If the Optionee is an Employee or a former Employee, the Company will be required to withhold from
his or her compensation or collect from Optionee and pay to the applicable taxing authorities an
amount in cash equal to a percentage of this compensation income at the time of exercise, and may
refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.

               2. Incentive Stock Option. If this Option qualifies as an ISO, the Optionee will have
no regular federal and state income tax liability upon its exercise, although the excess, if any,
of the Fair Market Value of the Exercised Shares on the date of exercise over their aggregate
Exercise Price will be treated as an adjustment to alternative minimum taxable income for federal
tax purposes and may subject the Optionee to alternative minimum tax in the year of exercise. In
the event that the Optionee ceases to be an Employee but remains a Service Provider, any Incentive
Stock Option of the Optionee that remains unexercised shall cease to qualify as an Incentive Stock
Option and will be treated for tax purposes as a Non-statutory Stock Option on the date three (3)
months and one (1) day following such change of status.

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                3. Disposition of Shares.

                    (a) NSO. If the Optionee holds NSO Shares for at least one year, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal income tax
purposes.

                    (b) ISO. If the Optionee holds ISO Shares for at least one year after exercise and two years
after the grant date, any gain realized on disposition of the Shares will be treated as long-term
capital gain for federal income tax purposes. If the Optionee disposes of ISO Shares within one
year after exercise or two years after the grant date, any gain realized on such disposition will
be treated as compensation income (taxable at ordinary income rates) to the extent of the excess,
if any, of the lesser of (A) the difference between the Fair Market Value of the Shares acquired on
the date of exercise and the aggregate Exercise Price, or (B) the difference between the sale price
of such Shares and the aggregate Exercise Price. Any additional gain will be taxed as capital gain,
short-term or long-term depending on the period that the ISO Shares were held.

                    (c) Notice of Disqualifying Disposition of ISO Shares. If the Optionee sells or
otherwise disposes of any of the Shares acquired pursuant to an ISO on or before the later of (i)
two years after the grant date, or (ii) one year after the exercise date, the Optionee shall
immediately notify the Company in writing, of such disposition. The Optionee agrees that he or she
may be subject to income tax withholding by the Company on the compensation income recognized from
such early disposition of ISO Shares by payment in cash or out of the current earnings paid to the
Optionee.

          H. Entire Agreement: Governing Law.

The Plan is incorporated herein by reference. The Plan and this Option Agreement constitute the
entire agreement of the parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with respect to the
subject matter hereof, and may not be modified adversely to the Optionee interest except by means
of a writing signed by the Company and Optionee. This agreement is governed by the internal
substantive laws but not the choice of law rules of California.

          I. NO GUARANTEE OF CONTINUED SERVICE.

          OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE
HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT
THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE
FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND
THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED
ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT
INTERFERE WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A
SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

Optionee has reviewed the Plan and this Option Agreement in their entirety, has had an opportunity
to obtain the advice of counsel prior to executing this Option Agreement and fully understands all
provisions of the Plan and Option Agreement. Optionee hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon any questions
relating to the Plan and Option Agreement. Optionee further agrees to notify the Company upon any
change in the residence address indicated on the Agreement.

5

 

EXHIBIT A

SUPERCONDUCTOR TECHNOLOGIES INC.

2003 EQUITY INCENTIVE PLAN

EXERCISE NOTICE

Superconductor Technologies, Inc.

460 Ward Drive, Suite F

Santa Barbara, California 93111-2310

Attention: Secretary

          1.
Exercise of Option. Effective as of today,
_______________________, _____________, the undersigned
(“Purchaser”) hereby elects to purchase _________ shares (the “Shares”) of the Common Stock of Superconductor Technologies, Inc. (the
“Company”) under and pursuant to the 2003 Equity Incentive (the “Plan”) and the Stock Option
Agreement dated _____________________, _____________ (the “Option
Agreement”). The purchase price for the Shares shall be $
__________, as required
by the Option Agreement.

          2. Delivery of Payment. Purchaser herewith delivers to the Company the full purchase
price for the Shares and agrees to deliver to the Company withholding taxes due within five(5) days
of written demand.

          3. Representations of Purchaser. Purchaser acknowledges that Purchaser has received,
read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their
terms and conditions.

          4. Rights as Shareholder. Until the issuance (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the Company) of the Shares, no
right to vote or receive dividends or any other rights as a shareholder shall exist with respect to
the Optioned Stock, notwithstanding the exercise of the Option. The Shares so acquired shall be
issued to the Optionee as soon as practicable after exercise of the Option. No adjustment will be
made for a dividend or other right for which the record date is prior to the date of issuance,
except as provided in Section 13 of the Plan.

          5. Tax Consultation. Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser’s purchase or disposition of the Shares. Purchaser represents
that Purchaser has consulted with any tax consultants Purchaser deems advisable in connection with
the purchase or disposition of the Shares and that Purchaser is not relying, on the Company for any
tax advice.

          6. Entire Agreement: Governing Law. The Plan and Option Agreement are incorporated
herein by reference. This Agreement, the Plan and the Option Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede in their entirety
all prior undertakings and agreements of the Company and Purchaser with respect to the subject
matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a
writing signed by the Company and Purchaser. This agreement is governed by the internal substantive
laws, but not the choice of law rules, of California.

	 	 	 
	Submitted by:

	 	Accepted by:
	PURCHASER

	 	SUPERCONDUCTOR TECHNOLOGIES INC.
	 

	 	 

6

 

	 	 	 
	Signature

	 	By
	 
	 	 
	                                                            

	 	                                                            
	Print Name

	 	Title
	 
	 	 
	

	 	                                                            
	

	 	Date Received
	 
	 	 
	Address:

	 	Address:
	                                                            

	 	460 Ward Drive, Suite F
	 
	 	 
	                                                            

	 	Santa Barbara, CA 93111-2310

7exv10w48

 

Exhibit 10.48

Superconductor Technologies Inc.

RETIREMENT AGREEMENT

     This Retirement Agreement (the “Agreement”) is made and entered into as of February
17, 2005, by and between Superconductor Technologies Inc., a Delaware corporation (the
“Company”), and M. Peter Thomas, an individual (the “Executive”), with reference to
the following facts:

     A. Executive desires to retire from his employment as President and Chief Executive Officer of
the Company and his position as a member of the Board of Directors.

     B. The Company desires that Executive (i) remain in his present position until certain tasks
are completed, (ii) assist with the smooth transition of his duties to a successor and (iii)
provide consulting services from time to time to his successor.

     C. The Company desires to retain Executive, and Executive desires to be retained, on the terms
and conditions set forth in this Agreement.

     NOW, THEREFORE, based on the above premises and in consideration of the mutual covenants and
agreements contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

     1. Retirement and Transition. Executive will not retire and will remain in his
current position until (a) a successor to Executive is hired and starts full-time employment at the
Company and (b) the Company files its 2004 Annual Report on Form 10-K with the Securities and
Exchange Commission. Executive will retire effective the end of business on the date on which both
of these tasks are completed (the “Retirement Date”). The Company and Executive will both
use reasonable efforts to complete such tasks on or before March 15, 2005. The Company reserves the
right in its sole discretion to waive these conditions and accelerate the Retirement Date. The
Company will have sole discretion over the selection of a successor, and Executive will work in
good faith to prepare for and effect a smooth transition of his responsibilities to the successor.

     2. Consulting Term. The Company agrees to retain Executive, and Executive agrees to
provide services to the Company, on the terms set forth in this Agreement for a period commencing
as of the Retirement Date and terminating on the first anniversary of the Retirement Date (the
“Consulting Term”).

     3. Consulting Duties. During the Consulting Term, Executive will render such
consulting and other services to the Company, consistent with his experience and background and
subject to his other business commitments, as may be reasonably requested from time to time by the
Company during the Consulting Term. Executive shall devote up to a maximum of (a) 20 hours per
month during the first three (3) months of the Consulting Term and (b) 10 hours per month
thereafter during the remainder of the Consulting Term. Executive will attend meetings in person
at the Company’s offices if reasonably requested but may otherwise render all services during the
Consulting Term from his home or other personal office.

     4. Compensation and Expenses. Prior to the Retirement Date, the Company will continue
compensating Executive at his current base salary of $350,155 per year. Executive will receive his
cash bonus for services rendered during 2004 in an amount to be determined by the Company’s
Compensation Committee in the normal course of its work in the awarding of

 

 

bonuses to the executive officers. During the Consulting Term, the Company will compensative
Executive at the same rate as his current base salary in accordance with the Company’s normal
payroll practices and subject to any required withholding or deductions. Executive will not
receive any equity, bonus or other compensation for the Consulting Term beyond the cash
compensation and benefits expressly set forth in this Agreement. The Company will reimburse
Executive for reasonable travel and other business expenses incurred by Executive in the
furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance
with the Company’s expense reimbursement policy as in effect from time to time.

     5. Medical Insurance and Other Benefits. The Company will provide for one year
following the Retirement Date to Executive and Executive’s spouse and dependents, at the Company’s
expense, group health, life and other similar insurance plans substantially comparable to the group
health, life and other similar insurance plans in which Executive or such dependents participated
on the Retirement Date.

     6. Company Automobile. The Company will at its expense continue to provide Executive
with use of the automobile currently in use by him until the end of the Consulting Term.

     7. Stock Options. Effective as of the Retirement Date, all the stock options held by
the Executive (a) will immediately vest and become fully exercisable and (b) remain exercisable
until the earlier of the fifth (5th) anniversary of the Retirement Date or the normal
expiration date of the relevant option. Executive is not eligible for additional stock option
grants or any other equity compensation.

     8. Promissory Note. Effective as of the Retirement Date, the Company forgives
Executive’s loan under the Promissory Note in accordance with the existing terms of the Promissory
Note which were in effect prior to the adoption of the Sarbanes-Oxley Act of 2002.

     9. Effect of Death, Disability or Sale on Consulting Payments. If Executive dies or
becomes disabled before the end of the Consulting Term, the Company will make all of the payments
required hereunder as if the relationship had not terminated. In the event of a merger of the
Company with or into another corporation, or the sale of substantially all of the assets of the
Company or a similar event that the Board determines, in good faith, would materially alter the
structure of the Company or its ownership, this Agreement will survive such event and the Company
will continue to make all of the payments required hereunder as if such event had not occurred.

     10. Resignation as an Officer and Director. Executive hereby resigns, effective as of
the Retirement Date, as an officer and director of the Company, and all other director or officer
positions held with any member of the Company Group.

     11. Covenant-Not-To-Compete During Consulting Term. During the Consulting Term,
Executive will not directly or indirectly engage in or assist any activity which is the same as,
similar to, or competitive with the Company’s business (other than on behalf of the Company),
including, without limitation, whether such engagement or assistance is as an officer, director,
proprietor, employee, partner, investor (other than as a holder of less than 1% of the outstanding
capital stock of a publicly traded corporation), creditor, guarantor, consultant, advisor, agent,
sales representative or other participant, in any city or county of the United States.

     12. Confidentiality and Related Matters. Executive reaffirms his obligations under
his existing Employee Proprietary Information Agreement with the Company and understands that his
obligations under that agreement continue during and after the Consulting Term.

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     13. No Disparaging Remarks. Each of the parties agrees not to make disparaging or
derogatory comments about the other party, whether to the press, the investment community,
stockholders of the Company or otherwise.

     14. Release of Claims.

          14.1 Release of the Company. In consideration of the terms and provisions of this
Agreement, Executive agrees that he shall and does hereby forever relieve, release and discharge
each person in the Company Group from any and all Claims arising out the employment relationship or
Executive’s retirement. This release does not affect Executive’s rights under his stock options,
and Executive shall continue to be entitled to indemnification in accordance with the terms of the
Company’s Restated Certificate of Incorporation, its Restated Bylaws and the existing
Indemnification Agreement between the Company and Executive.

          14.2 Release of Executive. In consideration of the terms and provisions of this
Agreement, the Company agrees that it shall and does hereby forever relieve, release and discharge
Executive from any and all Claims arising out the employment relationship or Executive’s
retirement.

          14.3 Scope. The releases set forth in this Section 14 include, but are not limited
to, any and all Claims based on, arising out of, or related to Executive’s employment relationship
with the Company (or any and all facts in any manner arising out of, related to or connected with
such employment relationship) or Executive’s retirement from his employment with the Company under
the terms of this Agreement. Without limiting the generality of the foregoing, Claims released
hereunder shall encompass and include, but are not limited to, any Claims arising from rights under
federal, state, or local laws relating to the prohibition of discrimination on the basis of race,
national origin, sex, religion, age, marital status, handicap, ancestry, sexual orientation, or any
other protected classification, and any and all Claims arising under common law, including, but not
limited to, common law Claims for breach of contract, breach of the implied covenant of good faith
and fair dealing, wrongful termination, discrimination, tortious interference with contract or with
current or prospective economic advantage, fraud, deceit, misrepresentation, violation of public
policy, breach of privacy, defamation, infliction of emotional distress, loss of consortium, breach
of fiduciary duty, Claims arising from any alleged breach of any alleged employment or other
agreement, or any other common law Claim of any kind whatsoever.

          14.4 Acknowledgement and Effect of Waiver. The parties understand and acknowledge
that (a) this Agreement constitutes a voluntary waiver of any and all Claims each has against the
other, (b) Executive has waived any and all Claims pursuant to this Agreement in exchange for
consideration, the value of which exceeds payments or remuneration to which he was already
entitled, and (c) each party has had an opportunity to consult with an attorney concerning this
Agreement before executing it.

          14.5 Federal Age Discrimination Waiver. Since Executive is 40 years of age or older:

	 	•  	Executive is entitled to review this Agreement for 21 days before signing it, but
Executive may sign and return it earlier if he desires.
	 
	 	•  	Executive is encouraged to consult with an attorney of his choosing prior to
executing this Agreement.
	 
	 	•  	This Agreement will not become enforceable until seven days following its execution
and delivery by Executive, and Executive will have the right to revoke

3

 

	 	   	this Agreement by giving the Company written notice of revocation during that
seven-day time period.

          14.6 Waiver of Unknown Claims. The Company and Executive waive any and all rights
that either may have under Section 1542 of the Civil Code of California, as well as the provisions
of all similar statutes or similar principles of common law of California, of the United States, or
of the other states of the United States. Section 1542 of the Civil Code of the State of
California provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN
BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

          14.7 Filing of Claims. Executive promises not to file any litigation or arbitration
Claim against any person in the Company Group relating to Executive’s employment with the Company
or his retirement. The Company promises not file any litigation or arbitration Claim against
Executive relating to Executive’s employment with the Company or his retirement.

     15. Certain Definitions.

          15.1 “Claims” means any and all claims, debts, liabilities, demands, obligations,
liens, promises, acts, agreements, costs, and expenses (including, but not limited to, attorneys’
fees), damages, actions, and causes of action, of whatever kind or nature, including, without
limitation, any statutory, civil, criminal or administrative claim, whether known or unknown,
suspected or unsuspected, fixed or contingent, apparent or concealed.

          15.2 “Company Group” means the Company and its subsidiaries, together with their
respective successors, assigns, officers, directors, agents, employees, representatives, attorneys
and shareholders.

          15.3 “Consulting Term” has the meaning set forth in Section 2.

          15.4 “Employment Agreement” means the Employment Agreement between Company and
Executive dated January 1, 2001, as subsequently modified by the actions of the Company’s
Compensation Committee for annual increases in Executive’s base salary.

          15.5 “Promissory Note” means the Promissory Note issued by Executive in favor of the
Company dated April 2001 in the principal amount of $150,000.

          15.6 “Retirement Date” has the meaning set forth in Section 1.

     16. General.

          16.1 Complete Agreement. This Agreement and any agreements or documents referred to
herein or executed contemporaneously herewith constitute the parties’ entire agreement with respect
to the subject matter hereof and supersede all prior written or oral agreements, representations
and warranties with respect to the subject matter hereof. This Agreement may be amended, modified,
superseded, cancelled, renewed or extended, and the terms, conditions or covenants hereof may be
waived, only by a written instrument executed by both parties to this Agreement, or in the case of
a waiver, by the party waiving compliance.

          16.2 Notices. Unless otherwise specifically permitted by this Agreement, all notices
under this Agreement shall be in writing and shall be delivered by personal service, facsimile,
telegram, or certified mail (or, if certified mail is not available, then by first class mail),
postage prepaid, (a) to the Company at its principal place of business, (b) to You at your last
home address in the employee records of the Company or (c) such other address as may be designated
from time to time by the relevant party. Any notice sent by certified mail shall be

4

 

deemed to have been given three (3) days after the date on which it is mailed. All other
notices shall be deemed given when received. No objection may be made to the manner of delivery of
any notice actually received in writing by an authorized agent of a party.

          16.3 Arbitration of Disputes. If Executive and the Company cannot resolve a dispute
(whether arising in contract or tort or any other legal theory, whether based on federal, state or
local statute or common law and regardless of the identities of any other defendants) that in any
way relates to or arises out of this Agreement, Executive’s retirement from the Company, or
(without limiting the generality of any other Section herein) Executive’s past employment with the
Company, then such dispute shall be settled by arbitration in Los Angeles, California in accordance
with the Commercial Arbitration Rules of the American Arbitration Association. The Company will
pay the fees and costs of the arbitrator.

          16.4 Attorneys’ Fees for Executive. If any litigation or arbitration is commenced
(including any proceedings in a bankruptcy court) between the parties concerning any provision of
this Agreement and Executive is the prevailing party in such proceeding, the Executive shall be
entitled, in addition to such other relief as may be granted, to recover his attorneys’ reasonable
fees and costs incurred by reason of such litigation or arbitration. The prevailing party shall be
determined by the court or arbitrator based upon an assessment of which party’s major arguments or
positions taken in the proceedings could fairly be said to have prevailed over the other party’s
major arguments or positions on major disputed issues.

          16.5 Severability. The invalidity or unenforceability of any provision of this
Agreement, or any terms hereof, shall not affect the validity or enforceability of any other
provision or term of this Agreement.

          16.6 Counterparts and Facsimile. This Agreement may be executed in multiple
counterparts and by facsimile.

*** [NEXT PAGE IS SIGNATURE PAGE] ***

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, as of
the day and year first above written.

	 	 	 
	“Executive”	 	“Company”
	 
	 	 
	

	 	SUPERCONDUCTOR TECHNOLOGIES INC.
	 
	 	 
	 

	 	 
	M. Peter Thomas

	 	John D. Lockton, Chairman of the Board

Retirement Agt – P. Thomas

S-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}]]