Document:

EXHIBIT 10.02

OPSWARE
INC.

TRANSITIONAL EMPLOYMENT AND SEPARATION AGREEMENT

This Transitional Employment and Separation
Agreement (“Agreement”) is entered into
as of June 7, 2007, by and between James E. Adkins (“Employee”)
and Opsware Inc. (“Opsware” or the “Company”) (collectively referred to
as the “Parties”).

RECITALS

WHEREAS, Employee has been employed by the Company
as its Executive Vice President, Products;

WHEREAS, Employee will be terminating employment
with the Company following a transitional period of employment, and the Parties
wish to agree upon the terms and conditions applicable to such transitional
period of employment and upon Employee’s termination of employment with the
Company;

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

AGREEMENT

1.     Transitional
Employment.  Employee shall continue
in active full-time employment with the Company for the “Transitional Period”, which shall commence on
the date hereof (the “Transitional
Date”) and which shall continue until June 29, 2007, unless
earlier terminated as set forth herein or extended by the mutual agreement of
the Parties (in any case, the “Termination
Date”).  Notwithstanding
the foregoing, Employee’s employment with the Company during the Transitional
Period will be at-will and may be terminated by Employee or by the Company at
any time for any reason.

2.     Resignation
of Titles and Positions.  Effective
as of the Termination Date, Employee will terminate employment with the
Company, and, if requested earlier during the Transitional Period, relinquish
all titles and positions then held by Employee with the Company or any
subsidiary of the Company.

3.     Compensation
and Benefits During Transitional Period. 
During the Transitional Period, Employee will continue to receive
payment of his current base salary and will continue to participate in
applicable Company employee benefit plans to the extent of his participation
and on the terms and conditions in effect immediately prior to the commencement
of the Transitional Period.  During the
Transitional Period, Employee’s stock options and shares of restricted stock
will continue to vest in accordance with their terms; provided, however, that
Employee shall not receive any additional options or other rights to purchase
shares of the Company’s common stock following the Transitional Date.  Any contributions that Employee has made in
the currently effective purchase period of the Company’s Employee Stock
Purchase Plan shall be remitted back to Employee.

4.     Payments
and Benefits.

(a)           Accrued
Payments and Benefits.  Upon the
termination of Employee’s employment with the Company for any reason, the
Company shall pay to Employee all amounts and benefits that have accrued or
were earned but remain unpaid through the Termination Date in respect of
salary, and unreimbursed expenses, including accrued and unused vacation.  Employee shall not be entitled to any
pro-rata payment of his annual target bonus.

(b)           Separation
Payments.  Upon the earlier of the
conclusion of the Transitional Period or the Company’s termination of
Employee’s employment other than for Cause (as defined in below), and subject
to Employee’s delivery to the Company of a signed general release of claims in
favor of the Company, in a form acceptable to the Company, which shall be
substantially in the form attached hereto as Exhibit 1 (the “Release”), following
expiration of the statutory rescission period without any rescission of the
Release the Company will provide Employee with the following (hereinafter
referred to collectively as the “Separation Payments”):

(i)    A
simple lump sum payment of $83,333.33 (equal to four (4) months of Employee’s
base salary in effect on the Termination Date) less applicable taxes and
standard deductions; and

(ii)   Payment
of Employee’s COBRA insurance premiums should Employee timely elect to continue
group health coverage under COBRA for four (4) months following the Termination
Date; provided, however, that the Company’s obligation to pay Employee’s COBRA
insurance premiums is conditioned on Employee remaining eligible for such
coverage.

Notwithstanding the foregoing, Employee acknowledges and agrees that in
the event that, prior to the Termination Date, the Company terminates
Employee’s employment for Cause (as defined in below and as determined in its
sole discretion by the Board acting in good faith)  or
Employee resigns for any reason, Employee will not be entitled to the
Separation Payments.

For purposes of this Agreement, “Cause” shall have the meaning ascribed
to it in Employee’s Stock Option Agreement dated March 21, 2007.

(c)           Company
Stock Options; Restricted Stock.

(i)    Vested
Options.  Notwithstanding the
post-termination of services expiration date specified in each governing
written stock option agreement to purchase shares of the Company’s common stock
(“Options”),
Employee shall have one year following the Termination Date to exercise such
Options that are vested, outstanding and not exercised as of the Termination
Date.

(ii)   Unvested
Options.  Any Options that are
unvested as of the Termination Date shall expire effective as of the
Termination Date.

(iii)  Restricted
Stock.  The Company hereby provides
Employee notice pursuant to the Restricted Stock Purchase Agreement, dated
December 21, 2005, between Employee and Company (the “Restricted Stock Purchase Agreement”), that the Company
shall exercise its right to repurchase any shares of the Company’s common stock
held by Employee that are unvested and subject to the Company’s right of
repurchase pursuant to the Restricted Stock Purchase Agreement (“Restricted Stock”) as of the
Termination Date.  Upon the Termination Date, the Company shall
pay to Employee the repurchase price for such repurchased shares of Restricted
Stock as set forth in the Restricted Stock Purchase Agreement.  From and after this exercise of Opsware’s
repurchase right, Employee shall no longer own or have any rights to the
Restricted Shares.

(d)           Benefits.
Employee’s health insurance benefits will cease on the Termination Date and
Company shall pay Employee’s COBRA insurance premiums as set forth above in
Section 4(b)(ii).  Employee’s
participation in all other employee benefits and incidents of employment will
cease on the Termination Date.  Employee
will cease accruing employee benefits, including, but not limited to, vacation
time and paid time off, as of the Termination Date.

5.     Consideration
for Release.  The Parties agree that
some of the payments and benefits provided to Employee pursuant to this
Agreement, are over and above anything owed to Employee by law and are offered
in exchange for and conditioned upon Employee’s execution of the Release.  Employee understands that if he does not sign
the Release, or if he revokes the signed Release, the Company has no obligation
to provide him the benefits listed in this Agreement other than as set forth in
Section 4(a) (Accrued Payment and Benefits).

6.     No
Mitigation Required.  Employee shall
not be required to seek other employment or to attempt in any way to reduce
amounts payable to him pursuant to this Agreement.  Further, the amount of benefits provided
under this Agreement shall not be reduced by any compensation earned by or
other benefits provided to Employee as a result of employment by another
employer following the Termination Date.

7.     Confidential
Information.  During the Transitional
Period and following the Termination Date, 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
Employment, Confidential Information, Invention Assignment 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 Termination Date.

8.     No
Cooperation.  Employee agrees that he
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 Company and/or any officer, director,
employee, agent, representative, shareholder or attorney of the Company, unless
under a subpoena or other court order to do so. 
Employee further agrees both to immediately notify the Company 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 furnish, within three (3) business days of its receipt, a
copy of such subpoena or legal discovery device to the Company.

9.     Non-Solicitation.  Employee agrees that for a period of twelve
(12) months  immediately following the
Termination Date, 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, or take away employees of the Company, either for himself
or any other person or entity.  Employee
further agrees not to otherwise interfere with the relationship of the Company
or any of its subsidiaries or affiliates with any person who, to the knowledge
of Employee, is employed by or otherwise engaged to perform services for the
Company or its subsidiaries or affiliates (including, but not limited to, any
independent sales representatives or organizations) or who is, or was within
the then most recent prior twelve-month period, a customer or client of the
Company, or any of its subsidiaries.

10.   Costs.  The Parties shall each bear their own costs,
expert fees, attorneys’ fees and other fees incurred in connection with this
Agreement except as specifically set forth herein.

11.   Tax
Consequences.  The Company makes no
representations or warranties with respect to the tax consequences of the
payment of any sums to Employee under the terms of this Agreement.  Employee agrees and understands that he is
responsible for payment, if any, of local, state and/or federal taxes on the
sums paid hereunder by the Company and any penalties or assessments thereon and
that all such sums shall be paid less all applicable withholdings and
deductions.  Employee further agrees to
indemnify and hold the Company harmless from any claims, demands, deficiencies,
penalties, assessments, executions, judgments, or recoveries by any government
agency against the Company for any amounts claimed due on account of Employee’s
failure to pay federal or state taxes or damages sustained by the Company by
reason of any such claims, including reasonable attorneys’ fees.

12.   Arbitration.  The Parties agree that any controversy or
claim arising out of or relating to this Agreement, or the breach thereof,
shall be submitted to 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 (the “Rules”).  All arbitration proceedings shall be
conducted in Santa Clara County, California.

Except as provided by the Rules, arbitration shall
be the sole, exclusive and final remedy for any dispute between Employee and
the Company.  Accordingly, except as
provided for by the Rules, neither Employee nor the Company will be permitted
to pursue court action regarding claims that are subject to arbitration.  The Parties expressly
waive any entitlement to have such controversies decided by a court or a
jury.  In addition to the
right under the Rules to petition the court for provisional relief, Employee
agrees that any party may also petition the court for injunctive relief where
either party alleges or claims a violation of this Agreement in particular
Section 7 of this Agreement.

13.   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 to bind them to the terms and conditions of this
Agreement.

14.   No
Representations.  The Parties
represent that each 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.

15.   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.

16.   Entire Agreement.  This Agreement represents the entire agreement and understanding
between the Company and Employee concerning the subject matter of this
Agreement and Employee’s relationship with the Company, and supersedes and
replaces any and all prior agreements and understandings between the Parties
concerning the subject matter of this Agreement and Employee’s relationship
with the Company, with the exception of the Employment, Confidential
Information, Invention Assignment Agreement, the agreements governing the
Options or any shares of Restricted Stock (including the equity compensation
plan under which such Options or such stock were granted) and any right to
indemnification Employee has pursuant to any indemnification agreement between
Employee and Company.

17.   Public
Filing.  Employee and the Company
understand and agree that this Agreement may need to be filed with the
Securities and Exchange Commission and that its confidentiality cannot be
protected.

18.   Code
Section 409A.  If any payments or
benefits due under this Agreement would subject Employee to any penalty tax
imposed under Section 409A of the Internal Revenue Code of 1986, as amended, if
such payments and benefits were made at the time as contemplated herein, then
the Parties agree to cooperate with each other and to take reasonably necessary
steps to avoid the imposition of any such penalty tax.

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.

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 conflict of law
principles.  To the extent that either
party seeks injunctive relief in any court having jurisdiction for any claim
relating to the alleged misuse or misappropriation of trade secrets or
confidential or proprietary information, each party hereby consents to personal
and exclusive jurisdiction and venue in the state and federal courts of the
State of California.

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, including
the costs of mediation, arbitration, litigation, court fees, plus reasonable
attorneys’ fees, incurred in connection with such an action.

23.   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.

24.   Successors
and Assigns.  This Agreement, and any
and all rights, duties, and obligations under this Agreement, will not be
assigned, transferred, delegated, or sublicensed by Employee without the
Company’s prior written consent.

[Signature Page Follows]

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

	
  

  	
   

  	
  OPSWARE INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:  June 11, 2007

  	
   

  	
  By

  	
  /s/ Benjamin A.
  Horowitz

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Benjamin
  A. Horowitz

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:   President and CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JAMES E. ADKINS,
  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:  June 11, 2007

  	
   

  	
   /s/ James E. Adkins

  	
   

  
	
   

  	
   

  	
  James E. Adkins

  	
   

  

 

[Signature Page to Agreement]

EXHIBIT 1

GENERAL RELEASE OF ALL CLAIMS

1.             This General Release of All Claims
(hereinafter “Agreement”) is entered into
between James E. Adkins (hereinafter “Employee”)
and by Opsware Inc. (hereinafter the “Company” or
“Opsware”).

2.             WHEREAS,
Employee has been employed by the Company; and

WHEREAS Employee and the Company desire to mutually,
amicably and finally resolve and compromise all issues and claims surrounding
Employee’s employment by the Company and the termination thereof;

NOW THEREFORE, in consideration for the mutual promises
and undertakings of the parties as set forth below, Employee and the Company
hereby enter into this Agreement.

3.             Consideration.  In
consideration of the payments and benefits offered to Employee by the Company
pursuant to the Transitional Employment and Separation Agreement by and between
Employee and the Company dated June 30, 2007, and in connection with the
termination of Employee’s employment, Employee agrees to the following general
release (the “Release”).

4.             General Release of Claims.

(a)           In
further consideration for the payment and undertakings described above, to the
fullest extent permitted by law, Employee, individually and on behalf of his
attorneys, representatives, successors, and assigns, does hereby completely
release and forever discharge the Company, its affiliated and subsidiary
corporations, and its and their shareholders, officers and all other
representatives, agents, directors, employees, successors and assigns, from all
claims, rights, demands, actions, obligations, and causes of action of any and
every kind, nature and character, known or unknown, which Employee may now
have, or has ever had, against them arising from or in any way connected with
the employment relationship between the parties, any actions during the
relationship, or the termination thereof. 
This release covers all statutory, common law, constitutional and other
claims, including but not limited to, all claims for wrongful discharge in
violation of public policy, breach of contract, express or implied, breach of
covenant of good faith and fair dealing, intentional or negligent infliction of
emotional distress, intentional or negligent misrepresentation, discrimination,
any tort, personal injury, or violation of statute including but not limited to
Title VII of the Civil Rights Act, the Age Discrimination in Employment Act,
the Americans with Disabilities Act, and the California Fair Employment and
Housing Act, which Employee may now have, or has ever had.  The parties agree that any past or future
claims for money damages, loss of wages, earnings and benefits, both past and
future, medical expenses, attorneys’ fees and costs, reinstatement and other
equitable relief, are all released by this Agreement.

(b)           Employee
and the Company do not intend to release claims that Employee may not release
as a matter of law, including but not limited to claims for indemnity under
California Labor Code section 2802.

(c)           To
the fullest extent permitted by law, any dispute regarding the scope of this
general release shall be determined by an arbitrator under the procedures set
forth in the arbitration clause below.

5.             Waiver of Unknown Claims. Employee has read or been advised of
Section 1542 of the Civil Code of the State of California, which provides as
follows:

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

Employee understands that Section 1542 gives
him the right not to release existing claims of which he is not now aware,
unless he voluntarily chooses to waive this right.  Having been so apprised, he nevertheless
hereby voluntarily elects to and does waive the rights described in Section
1542, and elects to assume all risks for claims that now exist in his favor,
known or unknown.

6.             Non-Admission.  It is understood and agreed that
this is a compromise settlement of a disputed claim or claims and that neither
this Agreement itself nor the furnishing of the consideration for this
Agreement shall be deemed or construed as an admission of liability or
wrongdoing of any kind by the Company.

7.             Covenant Not to Sue.

(a)           To
the fullest extent permitted by law, at no time subsequent to the execution of
this Agreement will Employee pursue, or cause or knowingly permit the
prosecution, in any state, federal or foreign court, or before any local,
state, federal or foreign administrative agency, or any other tribunal, any
charge, claim or action of any kind, nature and character whatsoever, known or
unknown, which he may now have, has ever had, or may in the future have against
the Company and/or any officer, director, employee or agent of the Company,
which is based in whole or in part on any matter covered by this Agreement.

(b)           Nothing
in this paragraph shall prohibit Employee from filing a charge or complaint
with a government agency such as but not limited to the Equal Employment
Opportunity Commission, the National Labor Relations Board, the Department of
Labor, the California Department of Fair Employment and Housing, or other
applicable state agency. However, Employee understands and agrees that, by
entering into this agreement, he is releasing any and all individual claims for
relief, and that any and all subsequent disputes between the Company and
Employee shall be resolved in arbitration.

(c)           Nothing
in this Agreement shall prohibit or impair Employee or the Company from
complying with all applicable laws, nor shall this Agreement be construed to
obligate either party to commit (or aid or abet in the commission of) any
unlawful act.

8.             Waiver of Right to Reemployment.
 Employee agrees that he will not be
entitled to any further employment with the Company.  He therefore waives any claim now or in the
future to other employment or reemployment with the Company, or any of its
related entities, and agrees that he will not apply for nor accept employment
with the Company or any of its related entities in the future.

9.             Nondisparagement.  Employee agrees that he will refrain from
making any adverse, derogatory or disparaging statements about the company, its
board of directors, officers, management, practices or procedures, or business
operations to any person or entity. 
Nothing in this paragraph shall prohibit Employee from providing
truthful information in response to a subpoena or other legal process.

10.           Return of Company Property;
Obligation to Protect Proprietary Information.  To the extent Employee has not already done
so, he agrees to return to the Company all Company property, including but not
limited to the files and documents, whether electronic or hardcopy, and whether
in Employee’s possession or under his control. Employee also understands that
whether he signs this Agreement or not, he must maintain the confidentiality of
Company trade secrets, confidential and/or proprietary information (“Proprietary Information”), and not
make use of any Proprietary Information on behalf of anyone.

11.           Acknowledgement of Representation
or Opportunity to be Represented by Counsel; Attorneys’ Fees. 
Employee acknowledges that he has been or had the opportunity to be represented
by counsel in the negotiation and preparation of this Agreement.  The parties further agree that each party
will be responsible for his or its own attorney’s fees and costs incurred in
connection with this Agreement.

12.           Arbitration.  Except for any claim for injunctive relief
arising out of a breach of a party’s obligations to protect the other’s
Proprietary Information, the parties agree to arbitrate any and all disputes or
claims arising out of or related to the validity, enforceability,
interpretation, performance or breach of this Agreement, whether sounding in
tort, contract, statutory violation or otherwise, or involving the construction
or application or any of the terms, provisions, or conditions of this
Agreement.  Any arbitration may be
initiated by a written demand to the other party.  The arbitrator’s decision shall be final,
binding, and conclusive.  The parties
further agree that this Agreement is intended to be strictly construed to
provide for arbitration as the sole and exclusive means for resolution of all
disputes hereunder to the fullest extent permitted by law. The parties expressly waive any
entitlement to have such controversies decided by a court or a jury.

13.           Governing Law.  This Agreement shall be construed in
accordance with, and governed by, the laws of the State of California.

14.           Savings Clause.  Should any of the provisions of this Agreement
be determined to be invalid by a court, arbitrator, or government agency of
competent jurisdiction, it is agreed that such determination shall not affect
the enforceability of the other provisions herein. Specifically, should a
court, arbitrator, or agency conclude that a particular claim may not be
released as a matter of law, it is the intention of the parties that the
general release, the waiver of unknown claims, and the covenant not to sue above
shall otherwise remain effective to release any and all other claims.

15.           Complete and Voluntary Agreement.
 This Agreement constitutes the entire
understanding of the parties on the subjects covered.  Employee expressly warrants that he has read
and fully understands this Agreement; that he has had the opportunity to
consult with legal counsel of his own choosing and to have the terms of the
Agreement fully explained to him; that he is not executing this Agreement in
reliance on any promises, representations or inducements other than those
contained herein; and that he is executing this Agreement voluntarily, free of
any duress or coercion.

16.           Modification.  No modification, amendment or waiver of any
provision of this Agreement shall be effective unless in writing signed by
Employee and an authorized representative of the Company.

17.           Notice and Revocation Period.  Employee acknowledges that the Company advised
him to consult with an attorney prior to signing this Agreement; that he
understands that he has twenty-one  (21)
days in which to consider whether he should sign this Agreement; and that he
further understands that if he signs this Agreement, he will be given seven (7)
days following the date on which he signs this Agreement to revoke it and that
this Agreement will not be effective until after this seven-day period has
expired without revocation by him.

18.           Effective
Date.  This Agreement is effective on
the eighth (8th) day after Employee signed it and without
revocation by him.

	
  Dated:

  	
   

  	
  June 11, 2007

  	
   

  	
   

  	
  /s/ Benjamin A. Horowitz

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For Opsware Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
  June 11, 2007

  	
   

  	
   

  	
  /s/ James E.
  Adkins

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  James E. AdkinsExhibit 10.101

CATALYST
SEMICONDUCTOR, INC.

SEVERANCE
AGREEMENT

This Severance Agreement
(the “Agreement”) is made and
entered into by and between David Eichler (“Employee”)
and Catalyst Semiconductor, Inc., a Delaware Corporation (the “Company”), effective as of September 10,
2007 (the “Effective Date”).

RECITALS

1.             It is expected that the Company from time to time will
consider the possibility of an acquisition by another company or other change
of control.  The Board of Directors of
the Company (the “Board”)
recognizes that such consideration can be a distraction to Employee and can
cause Employee to consider alternative employment opportunities.  The Board has determined that it is in the
best interests of the Company and its stockholders to assure that the Company
will have the continued dedication and objectivity of Employee, notwithstanding
the possibility, threat or occurrence of a Change of Control.

2.             The Board believes that it is in the best interests of
the Company and its stockholders to provide Employee with an incentive to
continue his or her employment and to motivate Employee to maximize the value
of the Company for the benefit of its stockholders.

3.             The Board believes that it is imperative to provide
Employee with certain benefits upon Employee’s termination of employment
without cause or following a Change of Control. 
These benefits will provide Employee with enhanced financial security
and incentive and encouragement to remain with the Company.

4.             Certain capitalized terms used in the Agreement are
defined in Section 5 below.

AGREEMENT

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, the parties hereto
agree as follows:

1.             Term of Agreement.  This Agreement will terminate upon the date
that all of the obligations of the parties hereto with respect to this
Agreement have been satisfied.

2.             At-Will Employment.  The Company and Employee acknowledge that
Employee’s employment is and will continue to be at-will, as defined under
applicable law, except as may otherwise be specifically provided under the
terms of any written formal employment agreement or offer letter between the
Company and Employee (an “Employment
Agreement”).  If Employee’s
employment terminates for any reason, Employee will not be entitled to any
payments, benefits, damages, awards or compensation other than as provided by
this Agreement, including any payments or benefits Employee would otherwise be
entitled to under his or her Employment Agreement.

3.             Termination Benefits.

(a)           Involuntary
Termination other than for Cause, Death or Disability Prior to a Change of
Control or after Twelve Months Following a Change of Control.  If the Company (or any parent or subsidiary
of the Company employing Employee) terminates Employee’s employment with the
Company (or any parent or subsidiary of the Company) without Employee’s consent
and for a reason other than Cause, Employee becoming Disabled or Employee’s
death, any of which occur prior to a Change of Control or after twelve (12) months
following a Change of Control (any such termination, an “Involuntary Termination”) and Employee
signs, delivers and does not revoke a separation agreement and release of
claims in a form satisfactory to the Company, then following such termination
of employment, or, if later, the effective date of the separation agreement and
release of claims, Employee will receive the following payments and other
benefits from the Company:

(i)    Accrued Compensation.  Employee will be entitled to receive all
accrued vacation, expense reimbursements and any other benefits due to Employee
through the date of termination of employment in accordance with the Company’s
then existing employee benefit plans, policies and arrangements.

(ii)   Consulting Arrangement.  At the Company’s option, the Company and Employee
will enter into a consulting arrangement for a period of nine (9) months from
the date of such termination the “Consulting
Period”), which arrangement will provide for (A) payment by the
Company based upon a full-time monthly rate equal to 100% of Employee’s monthly
base salary as of the date of such termination and (B) such other terms of
service as shall be negotiated in good faith by the Company and Employee;
provided, however, that if the Company determines not to enter into the
negotiation of a consulting arrangement, or the Company and Employee cannot,
following good-faith negotiation, agree upon the terms of such consulting
arrangement, then promptly following such determination or the termination of
such negotiations, as the case may be, Employee will be paid a lump-sum amount
of cash equal to nine (9) months of Employee’s base salary as of the date of
such termination,
less applicable withholding; provided further, however, that if during the
Consulting Period Employee engages in Competition or breaches the covenants in
Section 6 or in the separation agreement and release of claims, all
payments pursuant to this subsection will immediately cease.

(iii)  Continued Employee
Benefits.  Employee will receive continuing
Company-paid coverage for a period of nine (9) months following such
termination for Employee and Employee’s eligible dependents under the Company’s
Benefit Plans; provided, however, that if during such period Employee engages
in Competition or breaches the covenants in Section 6 or in the separation
agreement and release of claims, all Company-paid coverage pursuant to this
subsection will immediately cease.

(iv)  Options.  With respect to all of Employee’s options (the “Options”) to purchase Company common stock
outstanding on the date of such termination (whether granted on, before
or after the date of this Agreement), Employee will have the period following
such termination of employment to exercise such Options that is specified in the stock plans, if any, under which the
Options were granted and in any applicable agreements between the Company and 

 2
 

Employee; provided,
however, to the extent that, pursuant to the provisions of such stock plans and
applicable agreements, such Options continue to vest during the period, if any,
that Employee provides consulting services to the Company pursuant to
Section 3(a)(ii) or otherwise, then Employee will have the period
following the termination of such consulting services to exercise such Options
that is specified in such stock
plans and applicable agreements; provided further, however, that all
Options will immediately terminate and Employee will have no further rights
with respect to such Options in the event Employee engages in Competition or
breaches the covenants in Section 6 or in the separation agreement and
release of claims during such period.  In all other respects, such Options will
continue to be subject to the terms and conditions of the stock plans, if any,
under which they were granted and any applicable agreements between the Company
and Employee.

(v)   Payments or Benefits
Required by Law.  Employee will
receive such other compensation or benefits from the Company as may be required
by law (for example, “COBRA” coverage under Section 4980B of the Internal
Revenue Code of 1986, as amended (the “Code”)).

(b)           Involuntary Termination other than for Cause,
Death or Disability or Termination for Good Reason within Twelve Months of a
Change of Control.  If (i)
within twelve (12) months following a Change of Control (A) Employee terminates
his or her employment with the Company (or any parent or subsidiary of the
Company) for Good Reason or (B) the Company (or any parent or subsidiary of the
Company) terminates Employee’s employment for other than Cause, Employee
becoming Disabled or Employee’s death (any such termination, a “Change of Control Termination”) and (ii)
Employee signs, delivers and does not revoke a separation agreement and release
of claims in a form satisfactory to the Company, then promptly following such
termination of employment, or, if later, the effective date of the separation
agreement and release of claims, Employee will receive the following payments
and other benefits from the Company:

(i)    Accrued Compensation.  Employee will be entitled to receive all
accrued vacation, expense reimbursements and any other benefits due to Employee
through the date of termination of employment in accordance with the Company’s
then existing employee benefit plans, policies and arrangements.

(ii)   Consulting Arrangement.  At the Company’s option, the Company and
Employee will enter into a consulting arrangement for a period of twelve (12)  months from the date of such termination (the
“Change of Control Consulting Period”),
which arrangement will provide for (A) payment by the Company based upon a
full-time monthly rate equal to 100% of Employee’s monthly base salary as of
the date of such termination and (B) such other terms of service as shall be
negotiated in good faith by the Company and Employee; provided, however, that
if the Company determines not enter into the negotiation of a consulting
arrangement, or if the Company and Employee cannot, following good-faith
negotiation, agree upon the terms of such consulting arrangement, then promptly
following such determination or the termination of such negotiations, as the
case may be, Employee will be paid a lump-sum amount of cash equal to twelve
(12) months of Employee’s base salary as of the date of such termination, less
applicable withholding; provided further, however, that if during the Change of
Control Consulting Period Employee engages in Competition or breaches the
covenants in Section 6 or in the separation agreement and release of claims,
all payments pursuant to this subsection will immediately cease.

 3
 

(iii)  Options and Restricted Stock.  100% of the unvested shares subject to all of Employee’s Options and 100% any of
Employee’s shares of Company common stock subject to a Company repurchase right
upon Employee’s termination of employment for any reason (the “Restricted Stock”) whether acquired by Employee on, before or
after the date of this Agreement, will immediately vest upon such
termination.  With respect to all of Employee’s Options outstanding on the
date of such termination (whether granted on, before or after the date
of this Agreement), Employee will have the period following such termination of
employment to exercise such Options that is specified in the stock plans, if any, under which the
Options were granted and in any applicable agreements between the Company and
Employee; provided, however, that all Options will immediately terminate
and Employee will have no further rights with respect to such Options in the
event Employee engages in Competition or breaches the covenants in
Section 6 or in the separation agreement and release of claims during such
period.  In all other respects, such Options will continue to be subject to the
terms and conditions of the stock plans, if any, under which they were granted
and any applicable agreements between the Company and Employee.

(iv)  Continued Employee
Benefits.  Employee will receive
continuing Company-paid coverage for a period of twelve (12) months following
such termination for Employee and Employee’s eligible dependents under the
Company’s Benefit Plans; provided, however, that if during such period Employee
engages in Competition or breaches the covenants in Section 6 or in the
separation agreement and release of claims, all Company-paid coverage pursuant
to this subsection will immediately cease.

(v)   Payments or Benefits
Required by Law.  Employee will
receive such other compensation or benefits from the Company as may be required
by law (for example, “COBRA” coverage under Section 4980B of the Code).

(c)           Other Terminations.  If
Employee voluntarily terminates Employee’s employment with the Company or any
parent or subsidiary of the Company (other than for Good Reason within twelve
(12) months of a Change of Control) or if the Company (or any parent or
subsidiary of the Company employing Employee) terminates Employee employment with
the Company (or any parent or subsidiary of the Company) for Cause, then
Employee will (i) receive his or her earned but unpaid base salary through
the date of termination of employment, (ii) receive all accrued vacation,
expense reimbursements and any other benefits due to Employee through the date
of termination of employment in accordance with established Company plans,
policies and arrangements, and (iii) not be entitled to any other
compensation or benefits (including, without limitation, accelerated vesting of
Options or Restricted Stock) from the Company except to the extent provided
under the applicable stock option agreement(s) or as may be required by law
(for example, “COBRA” coverage under Section 4980B of the Code).

(d)           Termination due to Death or Disability.  If
Employee’s employment with the Company (or any parent or subsidiary of the
Company) is terminated due to Employee’s death or Employee’s becoming Disabled,
then Employee or Employee’s estate (as the case may be) will (i) receive
the earned but unpaid base salary through the date of termination of
employment, (ii) receive all accrued vacation, expense reimbursements and
any other benefits due to Employee through the date of termination of
employment in accordance with Company-provided or paid plans, policies and
arrangements, and (iii) not be entitled to any other compensation or
benefits from the 

 4
 

Company except to the extent
required by law (for example, “COBRA” coverage under Section 4980B of the
Code).

(e)           Exclusive Remedy.  In the event of a termination of Employee’s
employment with the Company (or any parent or subsidiary of the Company), the
provisions of this Section 3 are intended to be and are exclusive and in lieu
of any other rights or remedies to which Employee or the Company may otherwise
be entitled (including any contrary provisions in the Employment Agreement),
whether at law, tort or contract, in equity, or under this Agreement.  Employee will be entitled to no benefits,
compensation or other payments or rights upon termination of employment other
than those benefits expressly set forth in this Section 3.

4.             Limitation on Payments.  In the event that the severance and other
benefits provided for in this Agreement or otherwise payable to Employee (i)
constitute “parachute payments” within the meaning of Section 280G of the Code
and (ii) but for this Section 4, would be subject to the excise tax imposed by
Section 4999 of the Code, then Employee’s severance benefits under Section
4(a)(i) will be either:

(a)           delivered in full, or

(b)                                 delivered as to such lesser extent
which would result in no portion of such severance benefits being subject to
excise tax under Section 4999 of the Code,

whichever of the foregoing amounts, taking into account the applicable
federal, state and local income taxes and the excise tax imposed by Section
4999, results in the receipt by Employee on an after-tax basis, of the greatest
amount of severance benefits, notwithstanding that all or some portion of such
severance benefits may be taxable under Section 4999 of the Code.  Unless the Company and Employee otherwise
agree in writing, any determination required under this Section 4 will be made
in writing by the Company’s independent public accountants immediately prior to
Change of Control (the “Accountants”),
whose determination will be conclusive and binding upon Employee and the
Company for all purposes.  For purposes
of making the calculations required by this Section 4, 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 Employee will 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 will bear all costs the Accountants may reasonably incur in
connection with any calculations contemplated by this Section 4.

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

(a)           Benefit
Plans.  “Benefit Plans” means plans, policies or arrangements that
the Company sponsors (or participates in) and that immediately prior to
Employee’s termination of employment provide Employee and/or Employee’s
eligible dependents with medical, dental, and/or vision benefits.  Benefit Plans do not include any other type
of benefit (including, but not by way of limitation, disability, life insurance
or retirement benefits). A requirement that the Company provide Employee and
Employee’s eligible dependents with coverage under the Benefit Plans will not
be satisfied unless the coverage is no less favorable than that provided to
Employee and Employee’s 

 5
 

eligible dependents immediately prior to Employee’s
termination of employment. 
Notwithstanding any contrary provision of this Section 5(a), but subject
to the immediately preceding sentence, the Company may, at its option, satisfy
any requirement that the Company provide coverage under any Benefit Plan by (i) reimbursing Employee’s premiums under
COBRA after Employee has properly elected continuation coverage under COBRA (in
which case Employee will be solely responsible for electing such coverage for
Employee and Employee’s eligible dependents), or (ii) instead
providing coverage under a separate plan or plans providing coverage that is no
less favorable or by paying Employee a lump sum payment sufficient to provide
Employee and Employee’s eligible dependents with equivalent coverage under a
third party plan that is reasonably available to Employee and Employee’s
eligible dependents.

(b)           Cause.  “Cause”
means (i) a willful failure by Employee to substantially perform Employee’s
duties as an employee, other than a failure resulting from the Employee’s
complete or partial incapacity due to physical or mental illness or impairment,
(ii) a willful act by Employee that constitutes gross misconduct and that is
injurious to the Company, (iii) circumstances where Employee willfully imparts
material confidential information relating to the Company or its business to
competitors or to other third parties other than in the course of carrying out
Employee’s duties, (iv) a material and willful violation by Employee of a
federal or state law or regulation applicable to the business of the Company
that is injurious  to the Company, or (v) Employee’s
conviction or plea of guilty or no contest to a felony, which the Company reasonably believes has or will negatively reflect on
the Company’s business or reputation. 
No act or failure to act by Employee will be considered “willful” unless
committed without good faith and without a reasonable belief that the act or
omission was in the Company’s best interest.

(c)           Change
of Control.  “Change of Control” means the occurrence of any of the
following:

(i)    the
sale, lease, conveyance or other disposition of all or substantially all of the
Company’s assets to any “person” (as such term is used in Section 13(d) of the
Securities Exchange Act of 1934, as amended), entity or group of persons acting
in concert;

(ii)   any
person or group of persons becoming the “beneficial owner” (as defined in Rule
13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company’s
then outstanding voting securities;

(iii)  a
merger or consolidation of the Company with any other corporation, other than a
merger or consolidation that 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 or its controlling entity) at least 50% of the total voting
power represented by the voting securities of the Company or such surviving
entity (or its controlling entity) outstanding immediately after such merger or
consolidation; or

(iv)  a
contest for the election or removal of members of the Board that results in the
removal from the Board of at least 50% of the incumbent members of the Board.

 6
 

(d)           Competition.  “Competition”
will mean Employee’s direct or indirect engagement in (whether as an employee, consultant, agent, proprietor, principal,
partner, stockholder, corporate officer, director or otherwise), or ownership
interest in or participation in the financing, operation, management or control
of, any person, firm, corporation or business that competes with Company or is
a customer of the Company.

(e)           Disability.  “Disability”
will mean that Employee has been unable to perform the principal functions of
Employee’s duties due to a physical or mental impairment, but only if such
inability has lasted or is reasonably expected to last for at least six
months.  Whether Employee has a
Disability will be determined by the Board based on evidence provided by one or
more physicians selected by the Board.

(f)            Good
Reason.  “Good Reason” means (without Employee’s consent) (i) a
material reduction in Employee’s title, authority, status, or responsibilities,
(ii) the reduction of Employee’s aggregate base salary and target bonus
opportunity as in effect immediately prior to such reduction (other than a
reduction applicable to executives generally), or (iii) a relocation of
Employee’s principal place of employment by more than fifty (50) miles.

6.             Non-Solicitation.  For a period beginning on the Effective Date
and ending six (6) months after Employee ceases to be employed by the Company
(the “Non-Solicitation Period”), Employee,
directly or indirectly, whether as employee, owner, sole proprietor, partner,
director, member, consultant, agent, founder, co-venturer or otherwise, will
not: (i) solicit, induce or influence any person to leave employment with
the Company; or (ii) directly or indirectly solicit business from any of
the Company’s customers and users on behalf of any business that directly
competes with the principal business of the Company; provided, however, that
the Non-Solicitation Period shall end nine (9) months after Employee ceases to
be employed by the Company in the event Employee’s employment is terminated
pursuant to an Involuntary Termination; provided further, however, that the Non-Solicitation
Period shall end twelve (12) months after Employee ceases to be employed by the
Company in the event Employee’s employment is terminated pursuant to a Change
of Control Termination.

7.             Successors.

(a)           The
Company’s Successors.  Any successor
to the Company (whether direct or indirect and whether by purchase, merger,
consolidation, liquidation or otherwise) to all or substantially all of the
Company’s business and/or assets will assume the obligations under this
Agreement and agree expressly to perform the 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” will
include any successor to the Company’s business and/or assets which executes
and delivers the assumption agreement described in this Section 7(a) or which
becomes bound by the terms of this Agreement by operation of law.

(b)           The
Employee’s Successors.  The terms of
this Agreement and all rights of Employee hereunder will inure to the benefit
of, and be enforceable by, Employee’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.

 7
 

8.             Notice.

(a)           General.  Notices and all other communications
contemplated by this Agreement will be in writing and will 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 Employee, mailed notices will
be addressed to him or her at the home address which he or she most recently
communicated to the Company in writing. 
In the case of the Company, mailed notices will be addressed to its
corporate headquarters, and all notices will be directed to the attention of
its President.

(b)           Notice
of Termination.  Any termination by
the Company for Cause or by Employee for Good Reason or as a result of a
voluntary resignation will be communicated by a notice of termination to the
other party hereto given in accordance with Section 8(a) of this
Agreement.  Such notice will indicate the
specific termination provision in this Agreement relied upon, will set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination under the provision so indicated, and will specify the termination
date (which will be not more than thirty (30) days after the giving of such
notice).  The failure by Employee to
include in the notice any fact or circumstance which contributes to a showing
of Good Reason will not waive any right of Employee hereunder or preclude
Employee from asserting such fact or circumstance in enforcing his or her
rights hereunder.

9.             Miscellaneous Provisions.

(a)           Code
Section 409A.  This Agreement will be
deemed amended to the extent necessary to avoid imposition of any additional
tax or income recognition under Code Section 409A and any temporary or final
Treasury Regulations and guidance promulgated thereunder prior to any payment
to Employee.

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

(c)           Waiver.  No provision of this Agreement will be
modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by Employee and by an authorized officer of the
Company (other than Employee).  No waiver
by either party of any breach of, or of compliance with, any condition or
provision of this Agreement by the other party will be considered a waiver of
any other condition or provision or of the same condition or provision at
another time.

(d)           Headings.  All captions and section headings used in
this Agreement are for convenient reference only and do not form a part of this
Agreement.

(e)           Entire
Agreement.  This Agreement
constitutes the entire agreement of the parties hereto and supersedes in their
entirety all prior representations, understandings, undertakings or agreements
(whether oral or written and whether expressed or implied) of the parties with
respect to the subject matter hereof, including (without limitation) the
Employment Agreement).  No future
agreements between the Company and Employee may supersede this Agreement,
unless they are in writing and specifically mention this Section 9(e).

 8
 

(f)            Choice
of Law.  The laws of the State of
California (without reference to its choice of laws provisions) will govern the
validity, interpretation, construction and performance of this Agreement.

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

(h)           Withholding.  All payments made pursuant to this Agreement
will be subject to withholding of applicable income and employment taxes.

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

[Remainder of Page Intentionally Left Blank]

 9
 

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 set forth below.

	
  COMPANY

  	
  CATALYST SEMICONDUCTOR, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gelu Voicu

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
  DAVID EICHLER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Eichler

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President of Finance and Administration and
  Chief Financial Officer

  

 

 

 10

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