Document:

exv10w1

 

EXHIBIT 10.1

INDEMNITY AGREEMENT

     This Indemnity Agreement (the “Agreement”) dated as of    , 2003 by
and between Pier 1 Imports, Inc, a Delaware corporation (the
“Indemnitor”) and       
(the “Indemnitee”).

RECITALS

     The Indemnitee is a director and/or officer of the
Indemnitor and/or an Affiliate Indemnitee (as hereinafter
defined). The Indemnitor and the Indemnitee recognize the
increased risk of litigation and other claims being asserted
against directors and officers in today’s environment.

     The Bylaws of the Indemnitor (the “Bylaws”) require the Indemnitor to
indemnify its directors and officers as currently provided therein, and the
Indemnitee has been serving and continues to serve as a director and/or officer
of the Indemnitor in part in reliance on such provision. The Bylaws of the
Indemnitor and the Delaware General Corporation Law (the “DGCL”) permit the
Indemnitor to purchase and maintain insurance or to furnish similar protection
or make other arrangements (any such insurance, protection or arrangement, an
“Indemnification Arrangement”) on behalf of the Indemnitee against personal
liability (including, but not limited to, providing for Advanced Amounts as
hereinafter defined) asserted against him or incurred by or on behalf of him in
such capacity as a director or officer of the Indemnitor or as an Affiliate
Indemnitee, or arising out of his status as such, whether or not the Indemnitor
would have the power to indemnify him against such liability under the
provisions of this Agreement or under the DGCL, as it may then be in effect.

     In part to provide the Indemnitee with specific contractual assurance of
substantial protection against personal liability (regardless of, among other
things, any amendment to or revocation of the aforementioned provision of the
Indemnitor’s Bylaws or any change in the composition of the Indemnitor’s Board
of Directors or control of the Indemnitor), the Indemnitor desires to enter
into this Agreement. DGCL Section 145(f) expressly recognizes that the
indemnification provisions of the DGCL are not exclusive of any other rights to
which a person seeking indemnification may be entitled under the Certificate of
Incorporation or Bylaws of the Indemnitor, or an agreement providing for
indemnification, or a resolution of stockholders or directors, or otherwise,
and the Bylaws of the Indemnitor expressly recognize that the indemnification
provisions of the Indemnitor’s Bylaws shall not be deemed exclusive of, and
shall not affect, any other rights to which a person seeking indemnification
may be entitled under any agreement, and this Agreement is being entered into
pursuant to the Bylaws of Indemnitor to provide rights in addition to the
Bylaws of the Indemnitor, as permitted by the DGCL.

     In order to induce the Indemnitee to serve as a director and/or officer of
the Indemnitor and in consideration of the Indemnitee’s so serving, the
Indemnitor desires to hold harmless and indemnify the Indemnitee and to make
arrangements pursuant to which the Indemnitee may be advanced or reimbursed
expenses incurred by the Indemnitee in certain proceedings, in every case to
the fullest extent authorized or permitted by the DGCL, or any other applicable
law, or by any amendment thereof or other statutory provisions authorizing or
permitting such indemnification which are adopted after the date hereof (but,
in the case of any such amendment, only to the extent that such amendment
permits the Indemnitor to provide broader indemnification rights than the DGCL,
or other applicable law, permitted the Indemnitor to provide prior to such
amendment).

     NOW THEREFORE, in consideration of the foregoing recitals and of the
Indemnitee’s continuing to serve the Indemnitor as a director and/or officer,
the parties agree as follows:

     1. Indemnification. To the fullest extent allowed by law, the Indemnitor
shall hold harmless and indemnify the Indemnitee, his executors, administrators
or assigns against any and all expenses, liabilities and losses (including,
without limitation, investigation expenses, expert witnesses’ and attorneys’
fees and expenses, judgments, penalties, fines, amounts paid or to be paid in
settlement, any interest, assessments, or other charges imposed thereon and any
federal, state, local or foreign taxes imposed as a result of actual or deemed
receipt of any payment hereunder) actually incurred by the Indemnitee (net of
any related insurance proceeds or other amounts received by the Indemnitee or
paid by or on behalf of an Indemnitor on the Indemnitee’s behalf in
compensation of such expenses, liabilities or losses) in connection with any
actual or threatened action, suit or proceeding, whether civil, criminal,
administrative or investigative or in arbitration, to which the Indemnitee is a
party or participant or is threatened to be made a party or participant (a
“Proceeding”), as a plaintiff, defendant, respondent, witness or otherwise,
based upon, arising from, relating to or by reason of the fact that the
Indemnitee: (a) is, was, shall be or shall have been a director and/or officer
of the

 

 

Indemnitor; or
(b) is or was serving, shall serve, or shall have served at the request of the
Indemnitor as a director, officer, partner, trustee, fiduciary, employee or
agent (“Affiliate Indemnitee”) of another foreign or domestic corporation or
non-profit corporation, cooperative, partnership, joint venture, trust,
employee benefit plan, or other incorporated or unincorporated enterprise
(each, a “Company Affiliate”); or arising from or relating to any action or
omission to act taken by the Indemnitee in any of the foregoing capacities;
provided, however, that, except as provided in Section 9(b) hereof, the
Indemnitor shall indemnify the Indemnitee in connection with a Proceeding
initiated by the Indemnitee only if such proceeding (or part thereof) was
authorized by a two-thirds vote of the Board of Directors of the Indemnitor.

     The Indemnitee shall be presumed to be entitled to such indemnification
under this Agreement upon submission of a written claim pursuant to Section 4
hereof. Thereafter, the Indemnitor shall have the burden of proof to overcome
the presumption that the Indemnitee is so entitled. Such presumption shall
only be overcome by a judgment or other final adjudication, after all appeals
and all time for appeals has expired (“Final Determination”), which is adverse
to the Indemnitee and which establishes (i) that his acts were committed in bad
faith, or were the result of active and deliberate dishonesty, and were
material to the cause of action so adjudicated and (ii) that the Indemnitee in
fact personally gained a financial profit or other advantage to which he was
not legally entitled. If the Indemnitee is not wholly successful in any
Proceeding but is successful on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding the Indemnitor
agrees to indemnify the Indemnitee to the maximum extent permitted by law
against all losses and expenses incurred by the Indemnitee in connection with
each successfully resolved claim, issue or matter. Neither the failure of the
Indemnitor (including its Board of Directors, its legal counsel or its
stockholders) to have made a determination prior to the commencement of such
Proceeding that indemnification of the Indemnitee is proper in the
circumstances because such person has met the applicable standard of conduct
set forth in the DGCL, nor an actual determination by the Indemnitor (including
its Board of Directors, its legal counsel or its stockholders) that the
Indemnitee has not met the applicable standard of conduct, shall be a defense
to the action or create a presumption that the Indemnitee has not met the
applicable standard of conduct. The purchase, establishment or maintenance of
any Indemnification Arrangement shall not in any way diminish, restrict, limit
or adversely affect the rights and obligations of the Indemnitor or of the
Indemnitee under this Agreement, except as expressly provided herein, and the
execution and delivery of this Agreement by the Indemnitor and the Indemnitee
shall not in any way diminish, restrict, limit or adversely affect the
Indemnitee’s right to indemnification from the Indemnitor or any other party or
parties under any other Indemnification Arrangement, the Certificate of
Incorporation or Bylaws of the Indemnitor, or the DGCL.

     2. Period of Limitations. No legal action shall be brought and no cause
of action shall be asserted by or on behalf of the Indemnitor or any affiliate
of the Indemnitor against the Indemnitee, Indemnitee’s spouse, heirs,
executors, or personal or legal representatives after the expiration of two
years from the date of accrual of such cause of action, or such longer period
as may be required by applicable law under the circumstances. Any claim or
cause of action of the Indemnitor or its affiliates shall be extinguished and
deemed released unless asserted by the timely filing of a legal action within
such period; provided, however, that if any shorter period of limitations is
otherwise applicable to any such cause of action the shorter period shall
govern.

     3. Insurance. Subject only to the provisions of this Section 3, as long
as the Indemnitee shall continue to serve as a director and/or officer of the
Indemnitor (or shall continue at the request of the Indemnitor to serve as an
Affiliate Indemnitee) and, thereafter, as long as the Indemnitee shall be
subject to any possible Proceeding by reason of the fact that the Indemnitee
was a director and/or officer of the Indemnitor (or served in any of said other
capacities), the Indemnitor shall, unless no such policies are available in any
market, purchase and maintain in effect for the benefit of the Indemnitee one
or more valid, binding and enforceable policies (the “Insurance Policies”) of
directors’ and officers’ liability insurance (“D&O Insurance”) providing
adequate liability coverage for the Indemnitee’s acts as a director and/or
officer of the Indemnitor or as an Affiliate Indemnitee. The Indemnitor shall
promptly notify the Indemnitee of any lapse, amendment or failure to renew said
policy or policies or any provision thereof relating to the extent or nature of
coverage provided thereunder. In the event the Indemnitor does not purchase
and maintain in effect said policy or policies of D&O Insurance pursuant to the
provisions of this Section 3, the Indemnitor shall, in addition to and not in
limitation of the other rights granted the Indemnitee under this Agreement,
hold harmless and indemnify the Indemnitee to the full extent of coverage which
would otherwise have been provided for the benefit of the Indemnitee pursuant
to the Insurance Policies.

     4. Claims for Payments. The Indemnitee shall have the right to receive
from the Indemnitor on demand or, at his option, to have the Indemnitor pay
promptly on his behalf, in advance of the Final Determination of a Proceeding,
all amounts payable by the Indemnitor pursuant to the terms of this Agreement
as corresponding amounts are expended or incurred by the Indemnitee in
connection with any Proceeding or otherwise (such amounts so expended or
incurred being referred to as “Advanced Amounts”). In making any claim for
payment by the Indemnitor of any amount, including any Advanced Amount,
pursuant to this Agreement, the Indemnitee shall submit to the Indemnitor a
written request for

 

 

payment (a “Claim”) which includes a schedule setting forth in reasonable
detail the dollar amount expended (or incurred or expected to be expended or
incurred). Each item on such schedule shall be supported by the bill,
agreement, or other documentation relating thereto, a copy of which shall be
appended to the schedule as an exhibit.

     Where the Indemnitee is requesting Advanced Amounts, the Indemnitee must
also provide an undertaking to repay such Advanced Amounts if a Final
Determination is made that the Indemnitee is not entitled to indemnification
hereunder.

     5. Section 16(b) Liability. No Indemnitor shall be liable under this
Agreement to make any payment in connection with any claim made against the
Indemnitee for an accounting of profits made from the purchase or sale by the
Indemnitee of securities of the Indemnitor within the meaning of Section 16(b)
of the Securities Exchange Act of 1934, and amendments thereto, or similar
provisions of any state statutory law or common law.

     6. Continuation of Indemnity. All agreements and obligations of the
Indemnitor contained herein shall continue during the period the Indemnitee is
a director and/or officer of the Indemnitor (or is serving at the request of
the Indemnitor as an Affiliate Indemnitee) and shall continue thereafter so
long as the Indemnitee shall be subject to any possible Proceeding by reason of
the fact that the Indemnitee was a director or officer of the Indemnitor or
served as such an Affiliate Indemnitee.

     7. Successors; Binding Agreement. This Agreement shall be binding on, and
shall inure to the benefit of and be enforceable by, the Indemnitor’s
successors and assigns and by the Indemnitee’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
divisees and legatees. The Indemnitor shall require any successor or assignee
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Indemnitor, by
written agreement in form and substance reasonably satisfactory to the
Indemnitor and to the Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Indemnitor would
be required to perform if no such succession or assignment had taken place.

     8. Notification and Defense of Claim. Promptly after receipt by the
Indemnitee of notice of the commencement of any Proceeding, the Indemnitee
shall, if a claim in respect thereof is to be made against the Indemnitor under
this Agreement, notify the Indemnitor of the commencement thereof, but the
failure to so notify the Indemnitor will not relieve the Indemnitor from any
liability which it may have to the Indemnitee. With respect to any such
Proceeding:

     (i) The Indemnitor shall be entitled to participate therein at its own
expense;

     (ii) Except with prior written consent of the Indemnitee, the Indemnitor
shall not be entitled to assume the defense of any Proceeding; and

     (iii) The Indemnitor shall not settle any Proceeding in any manner which
would impose any penalty or limitation on the Indemnitee without the
Indemnitee’s prior written consent.

     The Indemnitee shall not settle any Proceeding with respect to which the
Indemnitee has received indemnified amounts or Advanced Amounts without the
Indemnitor’s prior written consent, nor will the Indemnitee unreasonably
withhold consent to any proposed settlement.

     9. Enforcement. (a) The Indemnitor has entered into this Agreement and
assumed the obligations imposed on the Indemnitor hereby in order to induce the
Indemnitee to act as a director and/or officer of the Indemnitor or as an
Affiliate Indemnitee and acknowledges that the Indemnitee is relying upon this
Agreement in continuing in such capacity.

          (b) All expenses incurred by the Indemnitee in connection with the
preparation and submission of the Indemnitee’s request for indemnification
hereunder shall be borne by the Indemnitor. In the event the Indemnitee has
requested payment of any amount under this Agreement and has not received
payment thereof within thirty (30) days of such request, the Indemnitee may
bring any action to enforce rights or collect moneys due under this Agreement,
and, if the Indemnitee is successful in such action, the Indemnitor shall
reimburse the Indemnitee for all of the Indemnitee’s fees and expenses in
bringing and pursuing such action. If it is determined that the Indemnitee is
entitled to indemnification for part (but not all) of the indemnification so
requested, expenses incurred in seeking enforcement of such partial
indemnification shall be reasonably prorated among the claims, issues or
matters for which the Indemnitee is not so entitled. The Indemnitee shall be
entitled to the advancement of such amounts to the full extent contemplated by
Section 4 hereof in connection with such Proceeding.

     10. Severability. If any provision or provisions of this Agreement shall
be held to be invalid, illegal or unenforceable for any reason whatsoever, (i)
the validity, legality and enforceability of the remaining provisions of this

 

 

Agreement (including, without limitation, all portions of any sections or
subsections of this Agreement containing any such provision held to be invalid,
illegal or unenforceable) shall not in any way be affected or impaired thereby,
and (ii) to the fullest extent possible, the provisions of any section or
subsections of this Agreement containing any such provisions held to be
invalid, illegal or unenforceable shall be construed so as to give effect to
the intent of the parties that the Indemnitor provide protection to the
Indemnitee to the fullest extent enforceable.

     11. Miscellaneous. No provisions of this Agreement may be modified,
waived or discharged unless such modification, waiver or discharge is agreed to
in writing signed by the Indemnitee and an officer of the Indemnitor designated
by the Board of Directors of the Indemnitor. No waiver by either party at any
time of any breach by the other party of, or of compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
time or at any prior or subsequent time. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of Delaware, without giving effect to the principles of conflicts of
laws thereof. The Indemnitee may bring an action seeking resolution of
disputes or controversies arising under, or in any way related to, this
Agreement in the state or federal court jurisdiction in which the Indemnitee
resides or in which his place of business is located and in any related
appellate courts, and the Indemnitor hereby consents to the jurisdiction of
such courts and to such venue. All terms and words used in this Agreement
(including personal pronouns) regardless of gender shall be deemed and
construed to include any other gender as the context shall require.

     12. Notices. For the purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, as follows:

	 	 	 	 	 
	If to the Indemnitee:

	 	

	 	 
	

	 	
	 	 
	

	 	
	 	 
	 
	 	 	 	 
	If to the Indemnitor:

	 	Pier 1 Imports, Inc.	 	 
	

	 	301 Commerce Street, Suite 600	 	 
	

	 	Fort Worth, Texas 76102	 	 
	

	 	Attn: General Counsel	 	 

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

     13. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument.

     14. Effectiveness. This Agreement shall be effective as of the day and
year first above written.

 

 

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

	 	 	 	 	 	 	 
	 	 	PIER 1 IMPORTS, INC.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	
 
	

	 	Name:	 	 	 	 
	

	 	 	 	
 
	

	 	Title:	 	 	 
	

	 	 	 	
 
	 
	 	 	 	 	 	 
	 	 	INDEMNITEE
	 
	 	 	 	 	 	 
	 	 	
 
	

	 	Name:	 	 	 
	

	 	 	 	
 
	

	 	Title:<PAGE>

                                                                   EXHIBIT 10.19

                         SEVERANCE AGREEMENT AND RELEASE

                                    RECITALS

         This Severance Agreement and Release ("Agreement") is made by and
between Howard Goldstein ("Employee") and Argonaut Technologies, Inc.
("Company"), collectively referred to as the ("Parties"):

         WHEREAS, Employee was employed by the Company;

         WHEREAS, the Company and Employee have entered into an Employee
Proprietary Information Agreement (the "Confidentiality Agreement");

         WHEREAS, the Company and Employee have entered into Stock Option
Agreements dated December 18, 2001, January 30, 2002, April 11, 2003, and March
17, 2004 granting Employee the option to purchase shares of the Company's common
stock subject to the terms and conditions of the Company's 2000 Stock Option
Plans and the Stock Option Agreement (the "Stock Agreements");

         WHEREAS, the Employee's has resigned his position as Senior Vice
President of Sales, Service and Marketing effective April 16, 2004 (The
"Termination Date").

         WHEREAS, the Parties, and each of them, wish to resolve any and all
disputes, claims, complaints, grievances, charges, actions, petitions and
demands that the Employee may have against the Company as defined herein,
including, but not limited to, any and all claims arising or in any way related
to Employee's employment with, or separation from, the Company;

         NOW THEREFORE, in consideration of the promises made herein, the
Parties hereby agree as follows:

                                    COVENANTS

         1. Consideration.

                  (a)      As consideration for the promises made by Employee in
this Agreement, the Company agrees to pay Employee 6 months of Employee's
current base salary. The parties agree that this payment is consideration to
Employee above and beyond anything of value to which Employee is already
entitled.

                  (b)      Payment. The Company will tender the payment in
accordance with the Company's regular payroll practices, less applicable
withholding, made payable to Employee. The parties agree that this payment is
consideration to Employee above and beyond anything of value (salary, wages,
accrued Personal Time Off (PTO), floating holidays, and any and all other
benefits due to Employee) to which Employee is already entitled.

<PAGE>

                  (c)      Stock. The Parties agree that for purposes of
determining the number of shares of the Company's common stock that Employee is
entitled to purchase from the Company, pursuant to the exercise of outstanding
options, the Employee will be considered to have vested only up to the
Termination Date. Employee acknowledges that as of the Termination Date, he will
have vested in 106,892 options and no more. The exercise of any stock options
shall continue to be subject to the terms and conditions of the Stock Agreements
with the exception that Employee shall have the right to purchase vested stock
options for 90 days after the Termination Date.

                  (d)      Benefits. Employee shall have the right to convert
his health insurance benefits to individual coverage pursuant to COBRA.

         2.       Confidential Information. Employee shall continue to maintain
the confidentiality of all confidential and proprietary information of the
Company and shall continue to comply with the terms and conditions of the
Confidentiality Agreement between Employee and the Company. Employee shall
return all of the Company's property and confidential and proprietary
information in his possession to the Company on the Effective Date of this
Agreement.

         3.       Payment of Salary. Employee acknowledges and represents that
the Company has paid all salary, wages, accrued Personal Time Off (PTO),
floating holidays, and any and all other benefits due to Employee once the above
noted payments and benefits are received.

         4.       Release of Claims. Employee agrees that the foregoing
consideration represents settlement in full of all outstanding obligations owed
to Employee by the Company. Employee, on his own behalf, and on behalf of his
respective heirs, family members, executors, and assigns, hereby fully and
forever releases the Company and its officers, directors, employees, investors,
shareholders, administrators, affiliates, divisions, subsidiaries, predecessor
and successor corporations, and assigns, from, and agree not to sue concerning,
any claim, duty, obligation or cause of action relating to any matters of any
kind, whether presently known or unknown, suspected or unsuspected, that
Employee may possess arising from any omissions, acts or facts that have
occurred up until and including the Effective Date of this Agreement including,
without limitation:

                  (a)      any and all claims relating to or arising from
Employee's employment relationship with the Company and the termination of that
relationship;

                  (b)      any and all claims relating to, or arising from,
Employee's right to purchase, or actual purchase of shares of stock of the
Company, including, without limitation, any claims for fraud, misrepresentation,
breach of fiduciary duty, breach of duty under applicable state corporate law,
and securities fraud under any state or federal law;

                  (c)      any and all claims under the law of any jurisdiction
including, but not limited to, wrongful discharge of employment; constructive
discharge from employment; termination in violation of public policy;
discrimination; breach of contract, both express and implied; breach of a
covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; negligent
or intentional misrepresentation; negligent or intentional interference with
contract or prospective economic advantage; unfair business practices;

                                      -2-
<PAGE>

defamation; libel; slander; negligence; personal injury; assault; battery;
invasion of privacy; false imprisonment; and conversion;

                  (d)      any and all claims for violation of any federal,
state or municipal statute, including, but not limited to, Title VII of the
Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination
in Employment Act of 1967, the Americans with Disabilities Act of 1990, the Fair
Labor Standards Act, the Employee Retirement Income Security Act of 1974, The
Worker Adjustment and Retraining Notification Act, Older Workers Benefit
Protection Act; the California Fair Employment and Housing Act, and Labor Code
section 201, et seq. and section 970, et seq.;

                  (e)      any and all claims for violation of the federal, or
any state, constitution;

                  (f)      any and all claims arising out of any other laws and
regulations relating to employment or employment discrimination;

                  (g)      any claim for any loss, cost, damage, or expense
arising out of any dispute over the non-withholding or other tax treatment of
any of the proceeds received by Employee as a result of this Agreement; and

                  (h)      any and all claims for attorneys' fees and costs.

         The Company and Employee agree that the release set forth in this
section shall be and remain in effect in all respects as a complete general
release as to the matters released. This release does not extend to any
obligations incurred under this Agreement.

         5.       Acknowledgement of Waiver of Claims Under ADEA. Employee
acknowledges that he is waiving and releasing any rights he may have under the
Age Discrimination in Employment Act of 1967 ("ADEA") and that this waiver and
release is knowing and voluntary. Employee and the Company agree that this
waiver and release does not apply to any rights or claims that may arise under
ADEA after the Effective Date of this Agreement. Employee acknowledges that the
consideration given for this waiver and release Agreement is in addition to
anything of value to which Employee was already entitled. Employee further
acknowledges that he has been advised by this writing that:

                  (a)      he should consult with an attorney prior to executing
this Agreement;

                  (b)      he has up to forty-five (45) days within which to
consider this Agreement;

                  (c)      he has seven (7) days following his execution of this
Agreement to revoke the Agreement;

                  (d)      this Agreement shall not be effective until the
revocation period has expired; and

                  (e)      nothing in this Agreement prevents or precludes
Employee from challenging or seeking a determination in good faith of the
validity of this waiver under the ADEA, nor does it

                                      -3-
<PAGE>

impose any condition precedent, penalties or costs for doing so, unless
specifically authorized by federal law.

         6.       Civil Code Section 1542. The Parties represent that they are
not aware of any claim by either of them other than the claims that are released
by this Agreement. Employee and the Company acknowledge that they have been
advised by legal counsel and are familiar with the provisions of California
Civil Code Section 1542, which 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.

         Employee and the Company, being aware of said code section, agree to
expressly waive any rights they may have thereunder, as well as under any other
statute or common law principles of similar effect.

         7.       No Pending or Future Lawsuits. Employee represents that he has
no lawsuits, claims, or actions pending in his name, or on behalf of any other
person or entity, against the Company or any other person or entity referred to
herein. Employee also represents that he does not intend to bring any claims on
his own behalf or on behalf of any other person or entity against the Company or
any other person or entity referred to herein.

         8.       Confidentiality. The Parties acknowledge that Employee's
agreement to keep the terms and conditions of this Agreement confidential was a
material factor on which all parties relied in entering into this Agreement.
Employee hereto agrees to use his reasonable best efforts to maintain in
confidence the existence of this Agreement, the contents and terms of this
Agreement, the consideration for this Agreement, and any allegations relating to
the Company or his employment with the Company except as otherwise provided for
in this Agreement (hereinafter collectively referred to as "Settlement
Information"). Employee agrees to take every reasonable precaution to prevent
disclosure of any Settlement Information to third parties, and both Parties
agree that there will be no publicity, directly or indirectly, concerning any
Settlement Information. Employee agrees to take every precaution to disclose
Settlement Information only to those attorneys, accountants, governmental
entities, and family members who have a reasonable need to know of such
Settlement Information. The Parties agree that an enforcement action shall be
arbitrated pursuant to this Agreement and that, if Company proves that Employee
breached this Confidentiality provision, it shall be entitled to an award of its
costs spent enforcing this provision, including all reasonable attorneys' fees
associated with the enforcement action, without regard to whether the Company
can establish actual damages from the breach by Employee.

         9.       No Cooperation. Both Parties agree that they will not counsel
or assist any attorneys or their clients in the presentation or prosecution of
any disputes, differences, grievances, claims, charges, or complaints by any
third party against the other and/or any officer, director, employee,

                                      -4-
<PAGE>

agent, representative, shareholder, attorney, heir, family member, executor or
assign of the other , unless under a subpoena or other court order to do so.
Both Parties further agree both to (i) immediately notify the other upon receipt
of any court order, subpoena, or any legal discovery device that seeks or might
require the disclosure or production of the existence or terms of this
Agreement, and to (ii) furnish, within three (3) business days of its receipt, a
copy of such subpoena or legal discovery device to the other.

         10.      Non-Disparagement. Employee agrees to refrain from any
defamation, libel or slander of the Company or tortious interference with the
contracts and relationships of the Company. The officers and directors of the
Company agree to refrain from any defamation, libel or slander of the Employee
or tortious interference with the contracts and relationships of the Employee.
All inquiries by potential future employers of Employee will be directed to the
Company's Human Resources department. Upon inquiry, the Company's Human
Resources department shall only state the following: Employee 's last position
and dates of employment.

         11.     Non-Solicitation. Employee agrees that for a period of twelve
(12) months immediately following the Effective Date of this Agreement, Employee
shall not either directly or indirectly solicit, induce, recruit or encourage
any of the Company's employees to leave their employment, or take away such
employees, or attempt to solicit, induce, recruit, encourage, take away or hire
employees of the Company, either for himself or any other person or entity.

         12.      No Admission of Liability. The Parties understand and
acknowledge that this Agreement constitutes a compromise and settlement of
disputed claims. No action taken by the Parties hereto, or either of them,
either previously or in connection with this Agreement shall be deemed or
construed to be:

                  (a)      an admission of the truth or falsity of any claims
heretofore made or

                  (b)      an acknowledgment or admission by either party of any
fault or liability whatsoever to the other party or to any third party.

         13.      Costs. The Parties shall each bear their own costs, expert
fees, attorneys' fees and other fees incurred in connection with this Agreement.

         14.      Arbitration. The Parties agree that any and all disputes
arising out of the terms of this Agreement, their interpretation, and any of the
matters herein released, shall be subject to binding arbitration in San Mateo
County, California before the American Arbitration Association under its
Employment Dispute Resolution Rules, or by a judge to be mutually agreed upon.
The Parties agree that the prevailing party in any arbitration shall be entitled
to injunctive relief in any court of competent jurisdiction to enforce the
arbitration award. The Parties agree that the prevailing party in any
arbitration shall be awarded its reasonable attorneys' fees and costs up to the
cash severance benefit identified in 1(b) of this Agreement. THE PARTIES HEREBY
AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT
OF LAW BY A JUDGE OR JURY. This section will not prevent either party from
seeking injunctive relief (or any other provisional remedy) from any court

                                      -5-
<PAGE>

having jurisdiction over the parties and the subject matter of their dispute
relating to the parties' obligations under this Agreement and the agreements
incorporated herein by reference.

         15.      Authority. The Company represents and warrants that the
undersigned has the authority to act on behalf of the Company and to bind the
Company and all who may claim through it to the terms and conditions of this
Agreement. Employee represents and warrants that he has the capacity to act on
his own behalf and on behalf of all who might claim through him/her to bind them
to the terms and conditions of this Agreement. Each party warrants and
represents that there are no liens or claims of lien or assignments in law or
equity or otherwise of or against any of the claims or causes of action released
herein.

         16.      No Representations. Each party represents that it has had the
opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement. Neither party has
relied upon any representations or statements made by the other party hereto
which are not specifically set forth in this Agreement.

         17.      Severability. In the event that any provision hereof becomes
or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said
provision so long as the remaining provisions remain intelligible and continue
to reflect the original intent of the Parties.

         18.      Entire Agreement. This Agreement, and the agreements
incorporated herein by reference to the extent they are consistent with this
Agreement, constitute the entire agreement and understanding between the Parties
concerning the subject matter of this Agreement and all prior representations,
understandings, and agreements concerning the subject matter of this Agreement
have been merged into this Agreement.

         19.      No Waiver. The failure of any party to insist upon the
performance of any of the terms and conditions in this Agreement, or the failure
to prosecute any breach of any of the terms and conditions of this Agreement,
shall not be construed thereafter as a waiver of any such terms or conditions.
This entire Agreement shall remain in full force and effect as if no such
forbearance or failure of performance had occurred.

         20.      No Oral Modification. Any modification or amendment of this
Agreement, or additional obligation assumed by either party in connection with
this Agreement, shall be effective only if placed in writing and signed by both
Parties or by authorized representatives of each party. No provision of this
Agreement can be changed, altered, modified, or waived except by an executed
writing by the Parties.

         21.      Governing Law. This Agreement shall be deemed to have been
executed and delivered within the State of California, and it shall be
construed, interpreted, governed, and enforced in accordance with the laws of
the State of California, without regard to choice of law principles.

         22.      Attorneys' Fees. In the event that either Party brings an
action to enforce or effect its rights under this Agreement, the prevailing
party shall be entitled to recover its costs and expenses,

                                      -6-
<PAGE>

including the costs of mediation, arbitration, litigation, court fees, plus
reasonable attorneys' fees, incurred in connection with such an action up to the
cash severance benefit identified in 1(b) of this Agreement.

         23.      Effective Date. This Agreement is effective after it has been
signed by both parties and after eight (8) days have passed since Employee has
signed the Agreement (the "Effective Date"), unless revoked by Employee within
seven (7) days after the date the Agreement was signed by Employee.

         24.      Counterparts. This Agreement may be executed in counterparts,
and each counterpart shall have the same force and effect as an original and
shall constitute an effective, binding agreement on the part of each of the
undersigned.

         25.      Voluntary Execution of Agreement. This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims. The Parties
acknowledge that:

                  (a)      They have read this Agreement;

                  (b)      They have been represented in the preparation,
negotiation, and execution of this Agreement by legal counsel of their own
choice or that they have voluntarily declined to seek such counsel;

                  (c)      They understand the terms and consequences of this
Agreement and of the releases it contains; and

                  (d)      They are fully aware of the legal and binding effect
of this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective
dates set forth below.

                                            Argonaut Technologies, Inc.

Dated:  April 2, 2004                       By /s/ Lissa A. Goldenstein
                                               ---------------------------------
                                            Lissa A. Goldenstein
                                            President and CEO

                                            Howard Goldstein, an individual

Dated:  April 2, 2004                       /s/ Howard Goldstein
                                            ------------------------------------

                                            HOWARD GOLDSTEIN

                                     - 7 -

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