Document:

Unassociated Document

    Exhibit
      10.1

     

    SEPARATION
      AGREEMENT AND GENERAL RELEASE

    

    This
      Separation Agreement and General Release (the “Agreement”) is made this 20th day
      of May, 2008 between Tara Poseley (the “Employee”) and The Children’s Place
      Services Company, LLC and its direct and indirect parent, subsidiaries and
      affiliated corporations (collectively, the “Employer” or the
“Company”).

    

    1.
      Termination
      of Employment.
      The
      parties agree that the Employee’s employment with the Employer shall terminate
      effective May 27, 2008 (the “Separation Date”). 

    

    2.
      Separation
      Payment.
      (a) In
      consideration for entering into this Agreement, the Employer shall pay to the
      Employee the sum of Nine Hundred Sixty-Seven Thousand Five Hundred Dollars
      ($967,500), less legally required payroll deductions (“Separation Payment”). Of
      that amount, $322,500 (“Initial Separation Payment”) will be severance pay
      payable on involuntary termination of employment for good reason under the
      Employment Agreement dated July 28, 2006, as amended (the “Employment
      Agreement”) and the balance of $645,000 (“Additional Separation Payment”) will
      be payable on involuntary termination of employment for good reason under the
      Employment Agreement. The Company will pay the Initial Separation Payment in
      thirteen (13) equal bi-weekly installments with the first such installment
      paid
      on the first pay period following the Separation Date. The Company will pay
      the
      Additional Separation Payment to Employee in twenty-six (26) equal bi-weekly
      installments with the first such installment paid on the fourteenth
      (14th)
      pay
      period following the Separation Date. The parties acknowledge that they have
      reviewed the matter and have determined that the restrictions of Section
      409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended, concerning
      payments to “specified employees” are not applicable to the Initial Separation
      Payment and that the Initial Separation Payment is not subject to any delay
      of
      payment because the Initial Separation Payment qualifies as separation pay
      under
      Treasury Regulation 1.409A-1(b)(9) which is exempt from the restrictions of
      Section 409A.

    

    The
      parties intend that the Initial Severance Payment under this Section and the
      continuation of health benefits under Section 3(a) will qualify as exempt from
      the restrictions of Section 409A of the Code,
      as
      amended, and final regulations under Section
      409A.
Notwithstanding
      any other provision of this Agreement, to
      the
      extent any payments under Section 2(a), 3(a) or both could become subject
      to
      penalties, interest and additional income
      tax under Section 409A of the Code, the parties will cooperate to amend this
      Agreement to comply with Section 409A and to provide Employee with
      the same
      or equivalent value of
      benefits
      described under the applicable Section in a manner that does not result in
      penalties, interest or additional income tax. The
      Employee will cooperate with the Company to make any amendment, retroactively
      if
      necessary, which Employee and the Company reasonably determine necessary or
      advisable to conform
      this Agreement to, and
      to
      satisfy the conditions of, Section
      409A of the Code and
      related regulations and rulings
      in a
      manner that does not result in adverse
      income tax consequences
      to
      Employee. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      The
      parties agree that the Employer shall pay to the Employee a bonus in the amount
      of Three Hundred Twenty-Two Thousand Five Hundred Dollars ($322,500), less
      legally required payroll deductions, which amount shall be paid on the date
      the
      Employer makes the bonus payment to other eligible named executive officers
      regardless of whether Employee is employed at the payout date. 

     

    (c)
      In
      addition to the payment set forth above in Section 2(a), the parties acknowledge
      that the Employee shall receive, in Employee’s final paycheck to be issued on
      May 23, 2008, all wages from May 4-27, 2008 in the total amount of Forty-Two
      Thousand One Hundred Seventy-Three Dollars and Eight Cents ($42,173.08), less
      legally required payroll deductions, and payment for accrued paid time off
      in
      the total amount of Ninety Three Thousand Six Hundred Forty-Eight Dollars and
      Seventy-Three Cents ($93,648.73), less legally required payroll
      deductions.

    

    (d)
      The
      Employer represents and warrants, and the Employee acknowledges, that the
      consideration paid to the Employee under this Agreement is at least equal to
      or
      exceeds the amount the Employee would ordinarily be entitled to upon termination
      of the Employee’s employment. 

    

    3.
      Other
      Benefits.
      (a) Any
      and all other employment benefits received by the Employee shall terminate
      effective as of the Separation Date, except that in the event the Employee
      elects to continue medical, dental, and vision benefits though COBRA, the
      Employer agrees to waive the applicable premium cost that Employee would
      otherwise be required to pay for continued group health coverage under
      Employer’s medical and dental plans for a period of eighteen (18) months.
      Employer’s obligation to waive the applicable premium cost under this Section
      3(a) shall be reduced to the extent of receipt of substantially equivalent
      coverage by Employee from any successor employer. 

    

    (b)
      The
      Employee agrees that the Employee is not entitled to and will not seek any
      further consideration, including, but not limited to, any wages, vacation pay,
      sick pay, disability pay, bonus, compensation, payment or benefit from the
      Released Parties (as defined in Section 10) other than that to which the
      Employee is entitled pursuant to this Agreement. 

    

    4.
      Removal
      from Company Positions and Indemnification.
      The
      Employee agrees that as of the Separation Date, the Employee shall resign from
      all positions held on behalf of the Company including but not limited to
      officer, agent, representative, trustee, administrator, fiduciary and signatory;
      provided, however, that the Employee shall continue as a board member for Hoop
      Holdings, Inc., Hoop Retail Stores, LLC, Hoop Canada Holdings, Inc. and Hoop
      Canada, Inc. (collectively, the “Hoop Entities”) through confirmation of the
      plan of liquidation or equivalent confirmation with respect to the Hoop Entities
      and the Employee shall be entitled to receive any compensation or expense
      reimbursement as other similarly situated independent board members of the
      Hoop
      Entities. In addition, with respect to all acts or omissions of Employee which
      occurred prior to the Separation Date, the Company agrees to continue to
      indemnify the Employee to the same extent that the Employee was indemnified
      prior to the Separation Date and that the Employee shall retain the benefit
      of
      all directors and officers liability insurance and coverage maintained by the
      Company with respect to claims made during the period provided by the Company’s
      current policy and to the extent provided by any future policy from time to
      time
      maintained by the Company with respect to other former executives of the
      Company, in each case on the terms and conditions of such policy. 

     

    
      
        
        

      

      
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    5.
      Return
      of Company Property.
      Company
      confirms that Employee has returned all laptops, cellular telephones,
      blackberries, keys, locks, credit cards, documents, records, materials, and
      other information of any type whatsoever that is the property of the Company.
      Employee further agrees that Employee shall not retain any copies or
      reproductions of correspondence, memoranda, reports, notebooks, drawings,
      photographs, or other documents relating in any way to the affairs of the
      Company or its vendors. 

    

    6.
      Consultation
      with Counsel and Voluntariness of Agreement.
      (a) The
      Employee acknowledges that the Employer has advised the Employee in writing
      to
      consult with an attorney prior to executing this Agreement. The Employee further
      acknowledges that, to the extent desired, the Employee has consulted with the
      Employee’s own attorney in reviewing this Agreement, that the Employee has
      carefully read and fully understands all the provisions of this Agreement,
      and
      that the Employee is voluntarily entering into this Agreement.

    

    (b)
      The
      Employee further acknowledges that the Employee has had a period of at least
      twenty-one (21) days in which to consider the terms of this
      Agreement.

    

    (c)
      The
      Employee acknowledges that the Employee has been informed in writing that the
      Employee has seven (7) calendar days following the execution of this Agreement
      to revoke it, and that such revocation must be in writing, hand delivered or
      sent via overnight mail and actually received by the Employer within such
      period. It is specifically understood that this Agreement shall not be effective
      or enforceable, and the payments and benefits set forth in this Agreement shall
      not be paid until the seven-day revocation period has expired.

    

    7.
      Confidentiality
      of Agreement.
      The
      Employee agrees not to disclose the existence of this agreement or the terms
      and
      conditions of this Agreement to any person or entity, except: (a) to comply
      with
      this Agreement; (b) to the Employee’s legal, financial or tax advisors, spouse,
      and to the Internal Revenue Service or any similar state or local taxation
      authority; or (c) as otherwise required by law. 

    

    8.
      Non-Solicitation,
      Use of Name, and Confidential Information.
      The
      Employee acknowledges and agrees that she continues to be bound by the portions
      of Section 9 of the Employment Agreement attached to this Agreement as Exhibit
      A; provided, however, to the extent of a conflict between Section 9 of the
      Employment Agreement and this Agreement, the terms of this Agreement shall
      govern.

     

    
      
        
        

      

      
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    9.
      Confirmation
      of Employment.
      The
      Employer shall, if called upon, confirm the Employee’s dates of employment and
      position with the Employer.

    

    10.
      Release.
      (a)
      Employee represents and warrants that she is not aware of any misconduct by
      any
      employee or director of the Company that Employee should report in accordance
      with the Company’s Code of Business Conduct or any irregularity in the Company’s
      books or records or any other matter relating to the Company’s accounting that
      could properly be reported by Employee pursuant to the procedures established
      by
      the Company for making such reports, except any that has already been reported
      by Employee in writing to the appropriate personnel of the Company. In exchange
      for the consideration set forth in Sections 2 and 3, the Employee, on behalf
      of
      the Employee and the Employee’s agents, assignees, attorneys, heirs, executors
      and administrators, voluntarily and knowingly releases the Employer, as well
      as
      the Employer’s successors, predecessors, assigns, parents, subsidiaries,
      divisions, affiliates, officers, directors, shareholders, employees, agents
      and
      representatives, in both their individual and representative capacities
      (collectively, the “Employer’s Released Parties”), from any and all claims,
      causes of action, suits, grievances, debts, sums of money, agreements, promises,
      damages, back and front pay, costs, expenses, and attorneys’ fees by reason of
      any matter, cause, act or omission arising out of or in connection with the
      Employee’s employment or separation from employment with the Employer, including
      but not limited to any claims based upon common law, any federal, state or
      local
      employment statutes or civil rights laws. Included in this release, without
      limiting its scope, are claims arising under Title VII of the Civil Rights
      Act
      of 1964, as amended; the Age Discrimination in Employment Act; the Older Workers
      Benefit Protection Act; the Americans with Disabilities Act; the Family and
      Medical Leave Act, the Fair Labor Standards Act of 1938 as amended by the Equal
      Pay Act of 1963; the Employee Retirement Income Security Act of 1974; the New
      Jersey Conscientious Employee Protection Act; the New Jersey Law Against
      Discrimination; the New Jersey Family Leave Act; the New Jersey Wage Payment
      Act; the Sarbanes-Oxley Act of 2002; and any other laws prohibiting
      discrimination, retaliation, wrongful termination, failure to pay wages, breach
      of contract, defamation, invasion of privacy, whistleblowing or infliction
      of
      emotional distress, or any other matter. This release shall apply to all known,
      unknown, unsuspected and unanticipated claims, liens, injuries and damages
      that
      have accrued to the Employee as of the date of this Agreement. 

    

    (b)
      This
      release does not waive rights or claims that may arise after this release is
      executed and does not waive any rights or claims which cannot be waived as
      a
      matter of law. This Agreement does not affect the Employee’s right to file a
      charge with the EEOC or to participate in any investigation conducted by the
      EEOC, but the Employee acknowledges that the Employee is not entitled to any
      other monies other than those payments described in this Agreement.

    

    (c)
      It
      is the
      intention of the Employee in executing this Agreement that it shall be effective
      as a bar against each and all claims, causes of action, suits, grievances,
      debts, sums of money, controversies, agreements, promises, damages, back and
      front pay, costs, expenses, attorneys’ fees and remedies of any type described
      in Section 10(a) above. In furtherance of this intention, the Employee expressly
      waives any and all rights and benefits conferred upon the Employee by the
      provisions of Section 1542 of the California Civil Code, which states:

    

    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.

     

    
      
        
        

      

      
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    (d)
      Employee
      agrees to execute and deliver to Company on the Separation Date a further
      Release in the form of Exhibit B. 

    

    11.
      Cooperation.
      Employee shall furnish such information as may be in her possession to, and
      cooperate with, the Company as may reasonably be requested by the Company in
      connection with any litigation or other proceeding in which the Company is
      or
      may be involved or a party.

    

    12.
      Violation
      of Terms.
      Should
      the Employee breach any provision of this Agreement, which breach
      is
      not cured within twenty (20) business days after written notice to Employee,
      then, in addition to all other damages or legal remedies available to the
      Employer (including without limitation injunctive relief), the Employee
      immediately shall return to the Employer all monies paid to the Employee
      pursuant to this Agreement. Should
      the Employer violate any provision of this Agreement, then the Employee shall
      have all remedies and civil actions available to remedy Employee’s damages. The
      parties agree that, should either party seek to enforce the terms of this
      Agreement through litigation, then the prevailing party, in addition to all
      other legal remedies, shall be reimbursed by the other party for all reasonable
      attorneys’ fees in relation to such litigation. However, in accordance with
      applicable laws, if the Employee violates this Agreement by commencing an action
      under the Age Discrimination in Employment Act, then the requirements set forth
      in this Section 12 shall not apply. 

    

    13.
      No
      Admission.
      Nothing
      contained in this Agreement nor the fact that the parties have signed this
      Agreement shall be construed as an admission by either party. 

    

    14.
      Waiver
      of Reinstatement.
      By
      entering into this Agreement, the Employee acknowledges that the Employee waives
      any claim to reinstatement and/or future employment with the Employer.

    

    15.
      Miscellaneous.
      This
      Agreement contains the entire understanding between the parties. This Agreement
      supersedes any and all previous agreements and plans, whether written or oral,
      between the Employee and the Employer. There are no other representations,
      agreements or understandings, oral or written, between the parties relating
      to
      the subject matter of this Agreement. No amendment to or modification of this
      Agreement shall be valid unless made in writing and executed by the parties
      hereto subsequent to the date of this Agreement. This Agreement shall be
      enforced in accordance with the laws of the State of California, and the parties
      agree that any litigation to enforce this Agreement will take place in
      California. This Agreement may be executed in several counterparts, and all
      counterparts so executed shall constitute one Agreement, binding upon the
      parties hereto.

     

    
      
        
        

      

      
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    16.
      Severability.
      If any
      term, provision or part of this Agreement shall be determined to be in conflict
      with any applicable federal, state or other governmental law or regulation,
      or
      otherwise shall be invalid or unlawful, such term, provision or part shall
      continue in effect to the extent permitted by such law or regulation. Such
      invalidity, unenforceability or unlawfulness shall not affect or impair any
      other terms, provisions and parts of this Agreement not in conflict, invalid
      or
      unlawful, and such terms, provisions and parts shall continue in full force
      and
      effect and remain binding upon the parties hereto.

    

    17.
      No
      Duty to Mitigate.
      Employee will not be required to mitigate the amount of any payments provided
      by
      this Agreement by seeking employment or otherwise, nor will the amount of any
      cash payment of benefit provided under this Agreement be reduced by any
      compensation or benefit earned by Employee after the Separation Date (except
      as
      provided in the last sentence of Section 3(a) above). Notwithstanding the
      foregoing, if Employee is entitled, by operation of any applicable law, to
      unemployment compensation benefits or benefits under the Worker Adjustment
      and
      Retraining Act of 1988 (known as the “WARN” Act) in connection with the
      termination of her employment in addition to those required to be paid to her
      under this Agreement, then to the extent permitted by applicable statutory
      law
      governing severance payments or notice of termination of employment, the
      Employer will be entitled to offset the amounts payable hereunder by the amounts
      of any such statutorily mandated payments.

    

    18.
      Notices.
      Any
      notice, payment or other communication required or permitted under this
      Agreement will be deemed effective when (a) personally delivered or (b)
      deposited in the United States mail, certified or registered, return receipt
      requested, postage prepaid and addressed to Employee at the last address for
      Employee in Employer’s payroll records or
      to
      Employer at 915 Secaucus Road, Secaucus, New Jersey 07094 Attn: General Counsel.
      Either party may change address for purposes of this Section by sending a notice
      of that changed address in accordance with this Section.

    

    [The
      remainder of the page is intentionally left blank.]

     

    
      
        
        

      

      
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    THE
      EMPLOYEE STATES THAT THE EMPLOYEE HAS CAREFULLY READ THIS AGREEMENT PRIOR TO
      SIGNING IT, THAT THE AGREEMENT HAS BEEN FULLY EXPLAINED TO THE EMPLOYEE PRIOR
      TO
      SIGNING IT, THAT THE EMPLOYEE HAS HAD THE OPPORTUNITY TO HAVE IT REVIEWED BY
      AN
      ATTORNEY AND THAT THE EMPLOYEE UNDERSTANDS THE AGREEMENT’S FINAL AND BINDING
      EFFECT PRIOR TO SIGNING IT, AND THAT THE EMPLOYEE IS SIGNING THE RELEASE
      VOLUNTARILY WITH THE FULL INTENTION OF COMPROMISING, SETTLING, AND RELEASING
      THE
      COMPANY AS STATED IN THIS AGREEMENT.

    

    

    
      	The
              Children’s Place Services Company, LLC	 	 	
              Tara
                Poseley

            
	 	 	 	 	 
	By:	
              /s/
                Charles Crovitz

            	 	 	
              /s/
                Tara Poseley

            
	 	
               

            	 	 	
              Tara
                Poseley (signature)

            
	Dated:	
              May
                20, 2008

            	 	Dated:	
              May
                20, 2008

            

    

    

    
      
        
        

      

      
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    EXHIBIT
      A

    

    PERTINENT
      PORTIONS OF SECTION 9 

    OF
      THE EMPLOYMENT AGREEMENT 

    (Captitalized
      terms not otherwise defined in this Exhibit shall have the meanings ascribed
      to
      them in the Employment Agreement)

    

    9.01
      Non-Solicitation;
      Use of Name. During
      the Employment Period and continuing through the first anniversary of the date
      in which Executive ceases to be an employee of the Company (the “Covenant
      Period”), Executive will not:

     

    (a)
      Directly or indirectly employ (other than on behalf of the Company), solicit
      or
      entice away any director, officer or employee of the Company or any of its
      subsidiaries; or

     

    (b)
      Take
      any action to interfere, directly or indirectly, with the goodwill of the
      Company or any of its subsidiaries, or induce or attempt to induce any Person
      doing business with the Company to cease doing business with the Company; or
      

     

    (c)
      Use
      the name of the Company or its subsidiaries in the conduct of any business
      activities (except in furtherance of the Company’s business) or for Executive’s
      personal use without the prior written consent of the Company.

     

    9.02
      Confidential
      and Proprietary Information; Work Product; Warranty.

     

    (a)
      Confidentiality. Executive
      acknowledges and agrees that there are certain trade secrets and confidential
      and proprietary information (collectively, “Confidential Information”) which
      have been developed by the Company and which are used by the Company in its
      business. Confidential Information shall include, without limitation: (i)
      customer lists and supplier lists; (ii) the details of the Company’s
      relationships with its customers, including the financial relationship with
      a
      customer; (iii) the Company’s marketing and development plans, business plans;
      and (iv) other information proprietary to the Company’s business. Executive
      shall not, at any time during or after her employment hereunder, use or disclose
      such Confidential Information, except to authorized representatives of the
      Company or as required in the performance of her duties and responsibilities
      hereunder. Executive shall return all Company property, such as computers,
      software and cell phones, and documents (and any copies including in machine
      or
      human-readable form), to the Company when her employment terminates. Executive
      shall not be required to keep confidential any information, which is or becomes
      publicly available or is already in her possession (unless obtained from the
      Company). Further, Executive shall be free to use and employ her general skills,
      know-how and expertise, and to use, disclose and employ any generalized ideas,
      concepts, know-how, methods, techniques or skills, including those gained or
      learned during the course of the performance of any services hereunder, so
      long
      as she applies such information without disclosure or use of any Confidential
      Information. Executive hereby acknowledges that her employment under this
      Agreement does not conflict with, or breach any existing confidentiality,
      non-competition or other agreement to which Executive is a party or to which
      she
      may be subject.

     

    
      
        
        

      

      
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    (b)
      Work
      Product.
      Executive agrees that all copyrights, patents, trade secrets or other
      intellectual property rights associated with any ideas, concepts, techniques,
      inventions, processes, or works of authorship developed or created by her during
      her employment by the Company and for a period of six (6) months thereafter,
      that (i) relate, whether directly or indirectly, to the Company’s actual or
      anticipated business, research or development or (ii) are derived from any
      work
      performed by Executive on the Company’s behalf, shall, to the extent possible,
      be considered works made for hire within the meaning of the Copyright Act (17
      U.S.C. Sec. 101 et. seq.) (the “Work Product”). All Work Product shall be and
      remain the property of the Company. To the extent that any such Work Product
      may
      not, under applicable law, be considered works made for hire, Executive hereby
      grants, transfers, assigns, conveys and relinquishes, and agrees to grant,
      transfer, assign, convey and relinquish from time to time, on an exclusive
      basis, all of her right, title and interest in and to the Work Product to the
      Company in perpetuity or for the longest period otherwise permitted by law.
      Consistent with her recognition of the Company’s absolute ownership of all Work
      Product, Executive agrees that she shall (i) not use any Work Product for the
      benefit of any party other than the Company and (ii) perform such acts and
      execute such documents and instruments as the Company may now or hereafter
      deem
      reasonably necessary or desirable to evidence the transfer of absolute ownership
      of all Work Product to the Company; provided, however, if following ten (10)
      business days’ written notice from the Company, Executive refuses, or is unable,
      due to disability, incapacity, or death, to execute such documents relating
      to
      the Work Product, she hereby appoints any of the Company’s officers as her
      attorney-in-fact to execute such documents on her behalf. This agency is coupled
      with an interest and is irrevocable without the Company’s prior written
      consent.

     

       (c)
      Warranty. Executive
      represents and warrants to the Company that (i) there are no claims that would
      adversely affect her ability to assign all right, title and interest in and
      to
      the Work Product to the Company; (ii) the Work Product does not violate any
      patent, copyright or other proprietary right of any third party; (iii) Executive
      has the legal right to grant the Company the assignment of her interest in
      the
      Work Product as set forth in this Agreement; and (iv) she has not brought and
      will not bring to her employment hereunder, or use in connection with such
      employment, any trade secret, confidential or proprietary information of
      another, or computer software, except for software that she has a right to
      use
      for the purpose for which it shall be used, in her employment
      hereunder.

     

    9.03
      Injunctive
      Relief.
      Executive acknowledges that a breach or threatened breach of any of the terms
      set forth in this Section 9 shall result in an irreparable and continuing harm
      to the Company for which there shall be no adequate remedy at law. The Company
      shall, without posting a bond, be entitled to obtain injunctive and other
      equitable relief, in addition to any other remedies available to the
      Company.

     

    
      
        
        

      

      
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    9.04
      Essential
      and Independent Agreements.
      It is
      understood by the parties hereto that Executive’s obligations and the
      restrictions and remedies set forth in this Section 9 are essential elements
      of
      this Agreement and that but for her agreement to comply with and/or agree to
      such obligations, restrictions and remedies, the Company would not have entered
      into this Agreement or employed her. Executive’s obligations and the
      restrictions and remedies set forth in this Section 9 are independent agreements
      and the existence of any claim or claims by her against the Company under this
      Agreement or otherwise will not excuse her breach of any of her obligations
      or
      affect the restrictions and remedies set forth under this Section
      9.

     

    9.05
      Survival
      of Terms; Representations. Obligations
      under this Section 9 hereof shall remain in full force and effect
      notwithstanding the termination of Executive’s employment. Executive
      acknowledges that she is sophisticated in business, and that the restrictions
      and remedies set forth in this Section 9 do not create an undue hardship on
      her
      and will not prevent her from earning a livelihood. She further acknowledges
      that she has had a sufficient period of time within which to review this
      Agreement, including this Section 9, with an attorney of her choice and she
      has
      done so to the extent she desired. Executive and the Company agree that the
      restrictions and remedies contained in this Section 9 are reasonable and
      necessary to protect the Company’s legitimate business interests regardless of
      the reason for or circumstances giving rise to such termination and that she
      and
      the Company intend that such restrictions and remedies shall be enforceable
      to
      the fullest extent permissible by law. Executive agrees that given the scope
      of
      the Company’s business and the sophistication of the information highway, any
      further geographic limitation on such remedies and restrictions would deny
      the
      Company the protection to which it is entitled hereunder. If it shall be found
      by a court of competent jurisdiction that any such restriction or remedy is
      unenforceable but would be enforceable if some part thereof were deleted or
      modified, then such restriction or remedy shall apply with such modification
      as
      shall be necessary to make it enforceable to the fullest extent permissible
      under law.

     

    9.06
      Mutual
      Non-Disparagement.
      Neither
      Executive nor senior executives of Employer will make or authorize any public
      statement disparaging the other in its or her business interests and affairs.
      Notwithstanding the foregoing, neither party shall be (a) required to make
      any
      statement that it or she believes to be false or inaccurate, or (b) restricted
      in connection with any litigation, arbitration or similar proceeding or with
      respect to its response to any legal process.

     

    9.07
      Other
      Duties of Employee During and After Employment Period.
      Both
      during and after the Employment Period, Executive shall, upon reasonable notice,
      furnish such information as may be in her possession to, and cooperate with,
      the
      Company as may reasonably be requested by the Company in connection with any
      litigation in which the Company is or may be a party.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    9.08
      Breaches
      of Provisions.
      If
      Executive breaches any of the provisions of this Section 9 then, and in any
      such
      event, in addition to other remedies available to Employer, Executive shall
      not
      be entitled to any Termination Compensation, including any Termination
      Compensation made to her hereunder prior to Employer’s discovery of such
      breach.

    
 

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

    

    RELEASE

    

    1.
      In
      exchange for the payments and benefits set forth in the Separation Agreement
      and
      Release dated May 20, 2008 (the “Severance Agreement”) by and between Tara
      Poseley (“Employee”) and The Children’s Place Services Company, LLC (the
“Employer” or the “Company”), the Employee, on behalf of the Employee and the
      Employee’s agents, assignees, attorneys, heirs, executors and administrators,
      voluntarily and knowingly releases the Employer, as well as the Employer’s
      successors, predecessors, assigns, parents, subsidiaries, divisions, affiliates,
      officers, directors, shareholders, employees, agents and representatives, in
      both their individual and representative capacities (collectively, the “Released
      Parties”), from any and all claims, causes of action, suits, grievances, debts,
      sums of money, agreements, promises, damages, back and front pay, costs,
      expenses, and attorneys’ fees by reason of any matter, cause, act or omission
      arising out of or in connection with the Employee’s employment or separation
      from employment with the Employer, including but not limited to any claims
      based
      upon common law, any federal, state or local employment statutes or civil rights
      laws. Included in this release, without limiting its scope, are claims arising
      under Title VII of the Civil Rights Act of 1964, as amended; the Age
      Discrimination in Employment Act; the Older Workers Benefit Protection Act;
      the
      Americans with Disabilities Act; the Family and Medical Leave Act, the Fair
      Labor Standards Act of 1938 as amended by the Equal Pay Act of 1963; the
      Employee Retirement Income Security Act of 1974; the New Jersey Conscientious
      Employee Protection Act; the New Jersey Law Against Discrimination; the New
      Jersey Family Leave Act; the New Jersey Wage Payment Act; the Sarbanes-Oxley
      Act
      of 2002; and any other laws prohibiting discrimination, retaliation, wrongful
      termination, failure to pay wages, breach of contract, defamation, invasion
      of
      privacy, whistleblowing or infliction of emotional distress, or any other
      matter. This Release shall apply to all known, unknown, unsuspected and
      unanticipated claims, liens, injuries and damages that have accrued to the
      Employee as of the date of this Agreement. 

    

    2.
      This
      Release does not waive rights or claims that may arise after this release is
      executed and does not waive any rights or claims which cannot be waived as
      a
      matter of law. This Release does not affect the Employee’s right to file a
      charge with the EEOC or to participate in any investigation conducted by the
      EEOC, but the Employee acknowledges that the Employee is not entitled to any
      other monies other than those payments described in the Severance Agreement.
      

    

    3.
      It
      is the
      intention of the Employee in executing this Agreement that it shall be effective
      as a bar against each and all claims, causes of action, suits, grievances,
      debts, sums of money, controversies, agreements, promises, damages, back and
      front pay, costs, expenses, attorneys’ fees and remedies of any type described
      in Section 10(a) above. In furtherance of this intention, the Employee expressly
      waives any and all rights and benefits conferred upon the Employee by the
      provisions of Section 1542 of the California Civil Code, which states:

    

    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.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    4.
      (a)
      The
      Employee acknowledges that the Employer has advised the Employee in writing
      to
      consult with an attorney prior to executing this Agreement. The Employee further
      acknowledges that, to the extent desired, the Employee has consulted with the
      Employee’s own attorney in reviewing this Release, that the Employee has
      carefully read and fully understands all the provisions of this Release, and
      that the Employee is voluntarily signing this Release. 

    

    (b)
      The
      Employee further acknowledges that the Employee has had a period of at least
      twenty-one (21) days in which to consider the terms of this
      Release.

    

    (c)
      The
      Employee acknowledges that the Employee has been informed in writing that the
      Employee has seven (7) calendar days following the execution of this Release
      to
      revoke it, and that such revocation must be in writing, hand delivered or sent
      via overnight mail and actually received by the Employer within such period.
      It
      is specifically understood that this Release shall not be effective or
      enforceable, and the payments and benefits set forth in the Severance Agreement
      shall not be paid, until the seven-day revocation period has
      expired.

     

     

    
      	 	  

	 	Tara Poseley
	 	 
	 	  

	 	Date

    

    
 

    
      
        
        

      

      
        13Exhibit 10.1
                               [Nektar Letterhead]

                                  May 13, 2008

Bharatt M. Chowrira
[Address]
[Address]

Dear Bharatt:

         I am pleased and excited to offer you the position of Chief Operating
Officer and Head of the PEGylation Business Unit at Nektar Therapeutics
("Nektar" or the "Company") reporting directly to me. You will also be Chairman
of Nektar India. Accordingly, I present you with this offer letter agreement
setting forth certain terms and conditions of your employment. Capitalized terms
used herein and not defined shall have the meanings ascribed to them in the
Company's Change of Control Severance Benefit Plan, as it may be amended from
time to time (the "COC Plan").

         As Chief Operating Officer, you shall have the general powers and
duties of management usually vested in the office of chief operating officer of
a corporation of the size and nature of Nektar. Your principal place of
employment will be 201 Industrial Road, San Carlos, California.

         Your annual cash compensation will consist of two components: base
salary and an annual performance bonus. Your base salary will be $475,000 on an
annual basis and paid in accordance with Nektar's regular payroll schedule. Your
annual performance bonus target each year will be at least 60% of your annual
base salary for each annual period and shall be $285,000 in 2008 and not
pro-rated for your partial period of service in 2008 ("Target Annual Bonus").
Your base salary and Target Annual Bonus shall be subject to annual performance
review by the Compensation Committee of the Board of Directors ("Compensation
Committee") in consultation with me for appropriate upward adjustment. The
actual amount of your annual performance bonus will range from 0% to 200% of the
Target Annual Bonus based on the Compensation Committee's assessment in
consultation with me of the achievement of a combination of annual corporate
objectives and your achievement of personal objectives agreed upon by you and me
at the beginning of each annual performance period; provided that your
objectives for your partial period of service in 2008 will be agreed upon by you
and I as soon as practicable following your start date. Your annual performance
bonus for the prior year will be paid in the first calendar quarter of each year
within the period of time required to avoid taxes and penalties under Section
409A of the Internal Revenue Code.

         Subject to approval by the Compensation Committee prior to and
effective as of your first day of full-time employment with Nektar, which shall
be on or soon after May 19, 2008 or on such other date as we otherwise may
mutually agree ("Start Date"), you will be granted a stock option to purchase
500,000 shares of Nektar common stock (the "Initial Option", which together with
any subsequent stock options you may receive, are the "Stock Options") under
Nektar's 2000 Equity Incentive Plan (the "2000 Plan"). The maximum number of
shares subject to the Stock Options will be granted as incentive stock options
within the meaning of Section 422 of the Internal Revenue Code to the extent
permissible under Section 10(d) of the 2000 Plan. The remainder of shares
subject to the Stock Options will be granted as non-statutory stock options. The
exercise price will be set at the closing price of Nektar's common stock on
Nasdaq on your Start Date in the case of the Initial Option or at the date
determined by the Compensation Committee in the case of any subsequent Stock
Options. The shares subject to the Initial Option will vest according to a
4-year vesting schedule for so long as you provide Continuous Service (as
defined in the 2000 Plan) to the Company with 25% of the shares subject to the
Initial Option vesting on the one year anniversary of your Start Date and the
remainder vesting monthly on a pro-rata basis over the following 3 years.

<PAGE>

         In addition, you will also be entitled to a one-time sign-on bonus of
$50,000 on "grossed up" basis (i.e. the total you receive after applicable
withholding will be $50,000) included with your first regular payroll payment
following your Start Date.

         You will be eligible for annual equity awards, in the sole discretion
of the Compensation Committee, based on the Compensation Committee's review, in
consultation with me, of your individual performance and annual equity
compensation levels of senior executive officers with similar roles at
comparator companies as analyzed by a reputable, nationally-recognized,
independent compensation consultancy firm.

         Commencing with your first day of employment, you will be eligible to
participate in Nektar's executive benefits program including medical, dental and
vision insurance, term life insurance, 401(k), the flexible health spending
plan, short & long-term disability upon the terms specified in those plans, and
the COC Plan.

         Your employment is by continued mutual agreement and may be terminated
at will with or without cause by either you or Nektar at any time with or
without advanced notice. You will also be required to enter into Nektar's
standard Employment Agreement, a copy of which is attached as Exhibit A hereto.

         In the event of your death or Disability (as defined in the 2000 Plan),
(a) 50% of the unvested shares under your Stock Options will automatically vest
in the event of your Disability and 100% shall automatically vest in the event
of your death, (b) Nektar will pay to you or your estate, as applicable, all
unreimbursed expenses, all of your then accrued but unpaid base salary, and your
target bonus prorated for the portion of the last year in which you were
employed by Nektar prior to death or Disability, and (c) you and your dependents
shall be entitled to continued medical, dental, and vision insurance for
yourself and your dependents, at your or their expense, at the same level of
coverage as was provided to you and your dependents under Nektar's insurance and
benefits plans immediately prior to the termination by electing COBRA
continuation coverage in accordance with applicable law.

         In the event your employment is terminated for reasons not related to a
Change of Control (a) by the Company without Cause; or (b) by you for a Good
Reason Resignation, then you and the Company will meet in good faith to discuss
the terms of an appropriate separation. In any event, at a minimum, the Company
will enter into a severance arrangement with you which will include the
following: (i) a fully effective waiver and release in such form as the Company
may reasonably require, (ii) a cash severance payment equal to your total annual
cash compensation target (defined as your current monthly base salary annualized
for 12 months, plus your bonus target multiplied by the expected pay-out
percentage used by the Company for its GAAP financial statements in the previous
calendar quarter, but not to exceed 100%), payable in accordance with the
severance payment schedule described in the COC Plan and subject to such delay
in payment required for compliance with Section 409A, (iii) pro-rata vesting
credit (based on conversion of the vesting schedule to a monthly vesting
schedule) on your Initial Option through the date of termination if your
termination occurs prior to the first anniversary of your Start Date based on
months completed since your Start Date, (iv) the exercise period for all or any
portion of the vested and unexercised portion of your Stock Options shall be for
a period of 18 months following the termination date, and (v) the Company shall
pay all applicable COBRA payments for you and your family for one year after the
termination date (such payments shall cease in the event that you become
eligible for comparable benefits with another employer).

                                      -2-
<PAGE>

         In compliance with the terms of the Federal Immigration Reform and
Control Act, you will be required to provide us with proof of authorization to
work and proof of identity.

         The terms, compensation and benefits set forth in this letter, which
shall be governed by California law, without reference to principles of
conflicts of laws, may not be reduced without your prior written consent and
shall be binding upon and inure to the benefit of (a) your heirs, executors, and
legal representatives upon your death and (b) any person or entity which at any
time, whether by purchase, merger, or otherwise, directly or indirectly acquires
all or a majority of the assets, business, capital stock, or voting stock of the
Nektar. Any such person or entity shall be deemed substituted for the Nektar
under this letter for all purposes.

         Bharatt, I am delighted at the prospect of your leadership at Nektar as
Chief Operating Officer and Head of the PEGylation Business Unit. Please feel
free to call me if you have any questions and I look forward to working with
you.

                                        Sincerely,

                                        /s/ Howard W. Robin
                                        Howard W. Robin
                                        President and Chief Executive Officer

OFFER ACCEPTED:

/s/ Bharatt M. Chowrira                 May 17, 2008
-----------------------                 ------------
Bharatt M. Chowrira                     Date

                                      -3-
<PAGE>
                                    EXHIBIT A

                               EMPLOYEE AGREEMENT

         In consideration of my employment or continued employment by Nektar
Therapeutics, its subsidiaries or affiliates (collectively, the "Company"), I,
Bharatt M. Chowrira residing at [Address], agree as of the date I was first
employed by Company as follows:

         1. Entire Agreement: This Agreement sets forth the complete and entire
agreement between Company and me and supersedes any and all previous oral or
written communications, discussions and agreements between Company and me with
respect to the subject of this Agreement.

         2. Employment:

         a. Duty of Loyalty. During the period of my employment by the Company,
I shall devote my full time and best efforts to the business of the Company, and
I shall neither pursue any business opportunity outside the Company nor take any
position with any organization other than as authorized in writing by the Chief
Executive Officer of the Company. While employed by the Company, I will avoid
all conflicts of interest and will not compete with the Company or undertake
other acts of disloyalty.

         b. Change in Jobs. I agree that all of my obligations under this
Agreement will remain in full force and effect should I receive a promotion,
demotion or experience a change in job title or duties while employed by the
Company.

         c. Employment at Will. I agree that this Agreement does not guarantee
my continued employment with the Company. I acknowledge that, unless I enter
into a written employment agreement with the Company that provides for a
specified period of employment, I am employed "at-will," meaning that either the
Company or I may terminate the employment relationship at any time, for any or
no reason, with or without cause or prior notice.

         3. Assignment of Developments:

         a. Assignment to Company. If at any time or times during my employment
or other association with the Company, I shall (either alone or with others)
make, conceive, create, discover, invent or reduce to practice any development
that (i) relates to the business of the Company or any of the products or
services being explored, developed, manufactured or sold by the Company or which
may be used in relation therewith; or (ii) results from tasks assigned to me by
the Company; or (iii) results from the use of premises or personal property
(whether tangible or intangible) owned, leased or contracted for by the Company
(hereinafter collectively referred to as "Developments"), then all such
Developments and the benefits thereof are and shall immediately become the sole
and absolute property of the Company and its assigns, as works made for hire or
otherwise. I shall promptly disclose to the Company (or any persons designated
by it) each such Development. I hereby assign all rights (including, but not
limited to, rights to inventions, patentable subject matter, copyrights and
trademarks) I may have or may acquire in the Developments, as well as all
benefits and/or rights resulting therefrom, to the Company and its assigns
without further compensation and shall communicate, without cost or delay, and
without disclosing to others the same, all available information relating
thereto (with all necessary plans and models) to the Company.

         b. Requirement to Provide Assistance. I agree to assist the Company, or
its designee, at the Company's expense, in every proper way to secure the
Company 's rights in the Developments and any copyrights, patents, trademarks,
and trade secret rights or other intellectual property rights in connection with
any such Developments in any and all countries, including the disclosure to the
Company of all pertinent information and data with respect thereto, the
execution of all applications, specifications, oaths, assignments and all other
instruments which the Company shall deem necessary in order to apply for and
obtain such rights and in order to assign and convey to the Company, its
successors, assigns, and nominees the sole and exclusive rights, title and
interest in and to such Developments, and any copyrights, patents, trademark and
other intellectual property rights relating thereto. I further agree that my
obligation to execute or cause to be executed, when it is in my power to do so,
any such instrument or papers shall continue after the termination of this
Agreement. If the Company is unable, because of my mental or physical incapacity
or for any other reason, to secure my signature to apply for or to pursue any
application for any United States or foreign patents or copyright registrations
covering Developments or original works of authorship assigned to the Company as
above, then I hereby irrevocably designate and appoint the Company and its duly
authorized officers and agents as my agent and attorney in fact, to act for and
in my behalf and stead to execute and file any such applications and to do all
other lawfully permitted acts to further the prosecution and issuance of letters
patent or copyright registrations thereon with the same legal force and effect
as if executed by me.

                                      -4-
<PAGE>

         c. Works Made For Hire. I will promptly disclose to the Company all
material which I produce, compose or write, individually or in collaboration
with others, which arises out of work delegated to me by the Company. I agree
that all such material constitutes a work for hire, and at the expense of the
Company, I will assign to the Company all my interest in such copyrightable
material and will sign all papers and do all other acts necessary to assist the
Company to obtain copyrights on such material in any and all countries.

         d. Ongoing Notice Obligation. I agree that for a period of one (1) year
following the termination of my employment for any reason, I will notify the
Company immediately of any and all creations, discoveries, inventions or other
developments made by me (either alone or with others) that relate to the
business of the Company or relate to research and development in which I was
involved during the course of my employment by the Company. Any such creation,
discovery, invention or other development relating to the Company's business
made by me (either alone or with others) within one (1) year following the
termination of my employment shall be presumed to be owned by the Company.

         e. Inventions Not Assigned to Company. I understand and acknowledge
that the assignment of Developments under this Agreement does not apply to an
invention which qualifies fully for protection under section 2870 California
Labor Code section, a copy of which is attached as Appendix A, which pertains to
any rights I may have acquired in connection with an invention, discovery or
improvement that was developed entirely on my own time for which no equipment,
supplies, facilities or trade secret information of the Company was used and (a)
that does not relate directly or indirectly to the business of the Company or to
the Company's actual or demonstrably anticipated research or development, or (b)
that does not result from any work performed by me for the Company.

         f. Disclosure of Prior Inventions. I represent that the creations,
discoveries, inventions or other developments identified in Appendix B attached
hereto ("Prior Developments"), if any, comprise all the Prior Developments that
I made or conceived prior to my employment by the Company, which Prior
Developments are excluded from this Agreement. I understand that it is only
necessary to list the title of such Prior Developments and the purpose thereof,
but not details of the Prior Development itself. IF THERE ARE ANY SUCH
DEVELOPMENTS TO BE EXCLUDED, THE UNDERSIGNED SHOULD INITIAL HERE; OTHERWISE IT
WILL BE DEEMED THAT THERE ARE NO SUCH EXCLUSIONS.

         4. Nondisclosure of Confidential Information: I shall not at any time,
whether during or after the termination of my employment, reveal to any person
or entity any Confidential Information except to employees of the Company who
need to know such Confidential Information for the purposes of their employment,
or as otherwise authorized by the Company in writing. The term "Confidential
Information" shall include any information concerning the organization, business
or finances of the Company or of any third party which the Company is under an
obligation to keep confidential that is maintained by the Company as
confidential. Such Confidential Information shall include, but is not limited
to, trade secrets or confidential information respecting methods, know-how,
techniques, systems, processes, specifications, blueprints, formulae, devices,
models, software programs, works of authorship, customer lists, partner lists,
customer information, financial information, pricing or commission information,
business plans, projects, plans and proposals. I shall keep confidential all
matters entrusted to me and shall not use or attempt to use any Confidential
Information except as may be required in the ordinary course of performing my
duties as an employee of the Company, nor shall I use any Confidential
Information in any manner which may injure or cause loss or may be calculated to
injure or cause loss to the Company, whether directly or indirectly.

                                      -5-
<PAGE>

         5. Nonsolicitation of Customers, Partners and Employees: I agree that
the Company has invested substantial time, effort and expense in compiling its
confidential and trade secret information and in assembling its present
personnel. In order to protect the confidentiality of the Company's sensitive
information, I agree that, during my employment and for one (1) year thereafter,
I shall not do the following:

         a. approach, contact or otherwise communicate in any way with any
customer or partner of the Company with the use or assistance of Confidential
Information of the Company that I obtained during my employment for the purpose
of engaging in or assisting in soliciting business from that customer or
partner;

         b. solicit, approach, counsel or attempt to induce any person who is
then in the employ of the Company to leave the employ of the Company; or

         c. aid, assist or counsel any other person, firm or corporation to do
any of the above.

         6. Return of Property: I shall keep on Company's premises (except when
required elsewhere in connection with the conduct of Company's business) and
shall deliver to Company upon termination of my employment all writings related
to the business of Company, and all documents, equipment, materials and other
personal property belonging to Company. I further agree not to make or retain
any copy, duplication, facsimile, reproduction or replication of any of the
foregoing except as necessary to perform my duties as an employee of the
Company.

         7. No Violation Of Prior Trade Secret Or Non-Competition Agreements: I
represent that the performance of all the terms of this Agreement as an employee
of this Company will not conflict with, and will not breach, any other
development assignment agreement, confidentiality agreement, employment
agreement or non-competition agreement to which I am or have been a party. To
the extent that I have confidential information or materials of any former
employer of mine, I acknowledge that the Company has directed me to not disclose
such confidential information or materials to the Company or any of its
employees, and that the Company prohibits me from using said confidential
information or materials in any work that I may perform for the Company, and I
will not bring with me to the Company, and will not use or disclose any
confidential, proprietary information, or trade secrets acquired by me prior to
my employment with the Company. I will not disclose to the Company or any of its
employees, or induce the Company or any of its employees to use, any
confidential or proprietary information or material belonging to any previous
employers or others, nor will I bring to the Company or use in connection with
my work for the Company copies of any software, computer files, or any other
copyrighted or trademarked materials except those owned by or licensed to the
Company. I am not a party to any other agreement that will interfere with my
full compliance with this Agreement. I further agree not to enter into any
agreement, whether written or oral, in conflict with the provisions of this
Agreement.

         8. Choice of Law: This Agreement shall be construed and governed by the
laws of the state in which I am primarily assigned to perform my job for, or
engagement with, the Company and shall in all respects be interpreted, enforced
and governed under the internal and domestic laws of such state.

         9. No Waiver: The waiver of any breach of this Agreement shall not
constitute a waiver of subsequent similar of dissimilar breaches of this
Agreement, or a waiver of any of the obligations contained herein.

         10. Assignment: The Company shall have the right to assign this
Agreement to its successors and assigns, and all covenants and agreements
hereunder shall inure to the benefit of and be enforceable by said successors
and assigns.

         11. Right to Notify: I recognize the right of Company to notify any
third party of the existence of this Agreement and/or its provisions and/or my
agreeing to it.

         12. Severability: Should a provision or part of a provision of this
Agreement be found as a matter or law to be invalid, such finding shall not have
the effect of invalidating the remainder of this Agreement and the provision or
part thereof as to which such finding of invalidity is made shall be interpreted
so as to be ineffective only to the extent of such invalidity without
invalidating the remainder of such provision or part thereof or any of the other
provisions of this Agreement.

                                      -6-
<PAGE>

         13. Breach: I agree that any breach of this Agreement by me will cause
irreparable damage to the Company and that in the event of such breach the
Company shall have, in addition to any and all remedies of law, the right to an
injunction, specific performance or other equitable relief to prevent the
violation of my obligations hereunder. The Company may apply for such injunctive
relief in any court of competent jurisdiction without the necessity of posting
any bond or other security.

EMPLOYEE:                                    NEKTAR THERAPEUTICS:

Signed:                                      By:
       -------------------------                --------------------------------

Name:                                        Title: SVP, Human Resources
     ---------------------------                   -----------------------------

Dated:                                       Dated:
      --------------------------                   -----------------------------

                                      -7-
<PAGE>

                                   APPENDIX A

Section 2870 of California Labor Code: Application of provision providing that
employee shall assign or offer to assign rights in invention to employer.

         a. Any provision and employment agreement which provides that an
employee shall assign, or offer to assign, any of his or her rights in an
invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer's
equipment, supplies, facilities or trade secret information except for those
inventions that either:

            1     Relate at the time of conception or reduction to practice of
                  the invention to the employer's business, or actual or
                  demonstrably anticipated research or development of the
                  employer; or

            2     Result from any work performed by the employee for the
                  employer.

         b. To the extent a provision in an employment agreement purports to
require an employee to assign an invention otherwise excluded from being
required to be +assigned under subdivision (a), the provision is against the
public policy of this state and is unenforceable.

                                      -8-
<PAGE>

                                   APPENDIX B

                                PRIOR INVENTIONS

                                      -9-

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