Document:

<Page>

                                                               Exhibit 10.12

                             MEMORANDUM OF AGREEMENT

           BETWEEN ROBERT L. HOGAN AND FRIENDLY ICE CREAM CORPORATION

     This acknowledges and documents our mutual agreement concerning your
separation from Friendly Ice Cream Corporation ("Friendly's") effective January
13, 2003 ("Separation Date"). This letter will confirm various matters
concerning your separation from employment so that no misunderstanding exists
between you and Friendly's.

I. SALARY CONTINUATION

     Friendly's will continue to pay you semimonthly, commencing after the end
of the seven-day revocation period referred to in Section VII, INFRA, at your
current base rate of pay (excluding executive match and automobile allowance),
for nine (9) months. The salary you receive will be subject to appropriate
statutory deductions and such other deductions normally made for employees of
Friendly's; however it will not be considered pensionable earnings. In addition,
any financial obligation you have to Friendly's will be deducted.

     In the event that the Board approves a bonus for Friendly's management
group for 2002, which is payable in 2003, you will be eligible for payment of
the bonus pursuant to the terms of the Annual Incentive Plan (AIP). Friendly's
will pay any such bonus within thirty (30) days of the Board's approval.

     From time to time after your separation, but during your salary
continuation period, you may be contacted with questions relating to matters you
have been involved with while employed by Friendly's. You agree to provide your
complete cooperation and make all pertinent information regarding these matters
available upon request, as well as be personally available, at mutually
convenient times, on an as-needed basis.

II. VACATION

     You will be paid for any earned and unused vacation time (10 day maximum),
as of your Separation Date, in accordance with our Vacation Policy dated
December 21, 2001.

III. BENEFIT/RETIREMENT PLANS

     You will be eligible to participate in the medical/dental, short-term
disability, accidental death and dismemberment, long-term disability, pension
plan, Stock Option Plan and such other benefits plans in which you may currently
be enrolled only through your Separation Date, and under the terms and
conditions of these plans. Your automobile allowance and your group
medical/dental insurance ends on your last day of active work. To continue
medical/dental coverage beyond your Separation Date, you must complete a
continuation of coverage (COBRA) application, which will be provided to you.

<Page>

     As of January 13, 2003, 23,333 and 4,000 of the stock options granted to
you under Friendly's Stock Option Plan have vested and are exercisable at the
respective per share prices of $2.875 and $2.40. You may exercise these options
on or before April 13, 2003 or they will expire. To exercise the options you
should contact RBC Dain Raucher's Mike Rakowski at 1-888-711-8994. Once
exercised, there will be no restriction on your ability to transfer your shares.

     Additional information about the effect of your separation on your benefits
is contained in the Separation Information document that will be provided to
you.

IV. OUTPLACEMENT

     To assist you in securing a new position, Friendly's has engaged the
services of the nationally recognized outplacement firm of Lee Hecht Harrison,
Inc. for a period of six (6) months. They will provide the following services at
any of their offices:

     1.   Assistance with your skills analysis and preparation of your resume;

     2.   Training which covers critical job search techniques and interviewing
          skills; and

     3.   Individualized counseling for a six-month period.

     You may utilize the services of another outplacement provider if you wish;
however, the cost of the services may not exceed $8,000. Payment will be made
directly to the organization by Friendly's, or reimbursement will be made to you
upon presentation of an invoice indicating that you have already paid it.

V. LIFE INSURANCE

     The life insurance coverage that has been provided to you through Pacific
Mutual Life Insurance Company is unaffected by your leaving employment because
it is your own personal policy. Payments by Friendly's on your behalf will cease
as of your Separation Date. Questions about coverage thereafter or about other
matters related to this policy should be referred to Ms. Karen Socola of the
AYCO Corporation at (518) 373-7725. Friendly's will pay for the cost of up to
two (2) meetings with an AYCO representative for the sole purpose of concluding
your financial planning services with AYCO including the preparation of your
2002 individual tax return, after which Friendly's will no longer pay for any
further AYCO advisory services on your behalf.

                                      -2-

<Page>

VI. COVENANTS

     In consideration of the terms set forth in this letter, you agree to the
following:

     1.   You will forever refrain from disclosing or confirming, either
          directly or indirectly, any information concerning insurance, loss
          claims, loss payments, safety and health conditions, financial
          condition, strategic planning or other confidential or non-public
          information relating to Friendly's or its subsidiaries, divisions,
          parents and affiliates, and any of their agents, employees, directors
          and officers which you learned or became aware of since the inception
          of your employment with Friendly's except for information which is
          generally known by the public, without Friendly's prior written
          consent.

     2.   You will turn over to your supervisor all originals and copies of any
          documents, manuals, plans, equipment, business papers, computer
          diskettes or other materials relating to Friendly's and its
          subsidiaries, divisions, parents and affiliates, their agents,
          employees, directors and officers which are in your control or
          possession within seven days of the execution of this Agreement.

     3.   You, on behalf of yourself, your spouse, heirs, agents, attorneys,
          representatives and assigns, hereby release and discharge forever all
          claims and causes of action of every name and nature that have arisen
          or might have arisen at any time up to and including the date on which
          you sign this Agreement (whether known or unknown, accrued,
          contingent, or liquidated) that you now have or may have against
          Friendly's, any of its subsidiaries, divisions, parents and
          affiliates, or any of the aforementioned entities' agents, employees,
          directors, and officers, including but not limited to, any claims
          relating to your employment with Friendly's and the termination
          thereof; any claims based on statute, regulation, ordinance, contract
          or tort; any claims arising under the Age Discrimination in Employment
          Act of 1967, as amended (the "ADEA"), or any other federal, state, or
          local law relating to employment discrimination, harassment, or
          retaliation; any claims relating to wages, compensation, or benefits;
          and any related claims for attorney's fees.

     4.   You agree not to file a lawsuit in any court of the United States or
          any State thereof concerning any matter released in this Agreement.
          Nothing in this Agreement shall be interpreted to prohibit you from
          filing an age discrimination claim with any anti-discrimination
          agency, or from participating in an age discrimination investigation
          or proceeding conducted by any such agency. However, by signing this
          Agreement, you acknowledge that you are waiving your right to money
          damages and any other relief should any agency pursue claims on your
          behalf arising out of or relating to your employment with and/or
          separation from Friendly's.

                                      -3-

<Page>

     5.   You agree to forever refrain from taking any action or making any
          statement which brings discredit upon or disparages Friendly's, its
          services or products, or any of its directors, officers, employees, or
          agents.

     6.   Friendly's will provide inquiring outplacement agencies, recruiters,
          or prospective employers with only your start date, end date, and
          positions held during your employment with Friendly's. A reference
          letter from Garrett Ulrich which contains the same information is
          attached hereto.

     7.   Friendly's shall not contest any claims made by you for unemployment
          benefits administered by any governmental agency.

     8.   If you breach any of the terms of this Agreement, Friendly's may be
          entitled to recover from you all costs, fees, and expenses (including
          attorney's fees) as may be awarded by a court of competent
          jurisdiction under applicable law and will be entitled to set off what
          it has paid you under this Agreement.

VII. ENTIRE AGREEMENT

     This is the entire agreement between us and any prior agreements or
understandings, whether oral or written, are entirely superseded by this
Agreement. We each have voluntarily accepted the terms as sufficient without
reservation. This Agreement may only be modified by a written agreement signed
by you and an officer of Friendly's.

     Should any provision of this Agreement be declared or determined by any
court to be illegal or invalid, the validity of the remaining parts, terms or
provisions shall not be affected thereby and said illegal part, term or
provision shall be deemed not to be a part of this Agreement.

     Pursuant to its obligations under the ADEA, Friendly's advises you to
consult with an attorney prior to executing this agreement. You have 21 days
from the date of receipt of this document in which to consider this agreement.
In addition, you may revoke this agreement for seven days following its
execution, but only by delivering a written revocation notice to Garrett Ulrich.
This agreement shall not become effective or enforceable until the seven-day
revocation period has expired.

     By signing this Agreement, you acknowledge that you have read and fully
understand all of its provisions and that you are signing it voluntarily. You
also acknowledge that you are not relying on any representations by any
representative of Friendly's concerning the meaning of any aspect of this
Agreement.

     In the event, after the execution of this Agreement but before all payments
to you have been made, Friendly's determines that you have engaged in any
fraudulent or illegal activity related to Friendly's not actually known to
Friendly's prior to the execution of this Agreement,

                                      -4-

<Page>

Friendly's shall have the right to terminate its remaining obligations under
this Agreement, declaring it null and void.

     Each party hereto agrees that they are fully authorized and have all of the
requisite right, power, and authority to enter into this Agreement, which is
fully binding upon and enforceable against the respective parties hereto in
accordance with its terms.

     This Agreement is made and entered into in the Commonwealth of
Massachusetts and shall in all respects be interpreted, enforced, and governed
by the laws of the Commonwealth of Massachusetts.

     If the above is in agreement with your understanding, please sign and keep
one copy of this document for your records and return one copy to me.

                                  By: /s/ Garrett J. Ulrich
                                      ------------------------------------
                                      Garrett J. Ulrich
                                      Vice President, Human Resources

ACCEPTED AND AGREED TO AS OF THIS 10th DAY OF FEBRUARY, 2003.

                                  By: /s/ Robert L. Hogan
                                      ------------------------------------
                                      Robert L. Hogan

                                      -5-QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.18    
  

 
 

AMENDMENT NO. 4
  TO LEASE    
  

        THIS AMENDMENT NO. 4 is made and entered into this 20th day of January, 2003, by and between A&P FAMILY INVESTMENTS, a California general
partnership, as LANDLORD, and NEOMAGIC CORPORATION, a Delaware corporation, as TENANT. 

RECITALS  

        A.    WHEREAS,
by Lease Agreement dated February 5, 1996 Landlord leased to Tenant all of that certain 45,000± square foot building
located at 3260 Jay Street, Santa Clara, California, the details of which are more particularly set forth in said February 5, 1996 Lease Agreement, and 

        B.    WHEREAS,
said Lease was amended by the Commencement Letter dated May 7, 1996 which confirmed the May 1, 1996 Lease Commencement Date and the
April 30, 2003 Lease Termination Date, and, 

        C.    WHEREAS,
said Lease was amended by Amendment No. 1 dated October 15, 1997, which amended the Lease by adding a co-terminous paragraph and a
cross default paragraph in relation to a separate lease agreement dated October 9, 1997 between the parties hereto, and 

        D.    WHEREAS,
said Lease was amended by Amendment No. 2 dated April 7, 2000 which amended the Lease by amending the Basic Rent Schedule and Aggregate Rent under
the Lease, and 

        E.    WHEREAS,
said Lease was amended by Letter Agreement dated June 8, 2001 whereby Landlord acknowledged the change of Tenant's state of incorporation from California
to Delaware, and, 

        F.    WHEREAS,
said Lease was amended by Amendment No. 3 dated February 26, 2002, which amended the Lease by (i) reducing the Basic Rent due under the
Lease for the period of June 1, 2002 through May 31, 2003 ("Reduced Rent Period") and amending the Basic Rent schedule and Aggregate Basic Rent accordingly and (ii) deleting
Paragraph 1 to Amendment No. 1 ("Lease Terms Co-Terminous"), and 

        G.    WHEREAS,
an audit of the Lease and Amendments No. 2 and 3 disclosed an incorrect Basic Rent adjustment, and therefore it is now the desire of the parties hereto to
correct the references to the Basic Rent adjustment period pursuant to Amendments No. 2 and 3, and to correct the Aggregate Basic Rent due under the Lease Agreement as hereinafter set forth. 

AGREEMENT  

        NOW THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, and in consideration of the hereinafter mutual promises, the parties hereto do
agree as follows: 

        1.    LEASE
TERM:    The parties hereto acknowledge and agree that the Lease is currently scheduled to terminate on April 30,
2003, as stated in the Lease. 

        2.    BASIC
RENT:    The parties hereto acknowledge and agree that the purpose of this Amendment No. 4 is to correct the Basic
Rent adjustments made pursuant to Amendment No. 2 to Lease dated April 7, 2000 and Amendment No. 3 to Lease dated February 26, 2002. The Basic Rent schedule shall be
amended as follows: 

        A.    Correction To Amendment No. 2 dated April 7, 2000:    Pursuant to the terms of Paragraph 1
of Amendment No. 2 ("Basic Rent"), it was the intent of the parties to increase the 

1

 

Basic Rent for the last twelve months of the Lease Term from $78,750.00 per month to $132,750.00; however, the Basic Rent schedule incorrectly showed the period for the Basic Rent adjustment to be
from June 1, 2002 through May 31, 2003. The correct period for the Basic Rent adjustment was May 1, 2002 through April 30, 2003. 

        B.    Correction to Amendment No. 3 dated February 26, 2002:    Pursuant to the terms of
Paragraph 1 of Amendment No. 3 ("Basic Rent Schedule for the Period of June 1, 2002 through May 31, 2003"), it was the intent of the parties to reduce the Basic Rent for
the last twelve months of the Lease Term from $132,750.00 to $78,750.00, in affect rescinding Paragraph 1 of Amendment No. 2; however, the Basic Rent schedule incorrectly showed the
period for the Basic Rent adjustment to be from June 1, 2002 through May 31, 2003. The correct period for the Basic Rent adjustment period was May 1, 2002 through April 30,
2003. 

        3.    AGGREGATE
BASIC RENT:    The Aggregate Basic Rent pursuant to the Lease Agreement was $5,803,312.50. Said Aggregate Rent was
correctly increased by $648,000.00 pursuant to Amendment No. 2, and was subsequently, correctly decreased by $648,000.00 pursuant to Amendment No. 3; however, neither amendment
referenced the correct adjusted Aggregate Basic Rent. Therefore it is agreed between the parties hereto that the Aggregate Basic Rent for the Lease is $5,803,312.50. 

        4.    AUTHORITY
TO EXECUTE.    The parties executing this Agreement hereby warrant and represent that they are properly authorized to
execute this Agreement and bind the parties on behalf of whom they execute this Agreement and to all of the terms, covenants and conditions of this Agreement as they relate to the respective parties
hereto. 

        5.    CHOICE
OF LAW/VENUE; SEVERABILITY.    This Agreement shall in all respects be governed by and construed in accordance with the laws
of the County of Santa Clara in the State of California and the venue shall be in Santa Clara County. If any provisions of this Agreement shall be invalid, unenforceable, or ineffective for any reason
whatsoever, all other provisions hereof shall be and remain in full force and effect. 

        6.    EXAMINATION
OF AMENDMENT:    This Amendment No. 4 shall not be effective until its execution by both Landlord and Tenant. 

        EXCEPT
AS MODIFIED HEREIN, all other terms, covenants, and conditions of said February 5, 1996 Lease Agreement shall remain in full force and effect. 

        IN
WITNESS WHEREOF, Landlord and Tenant have executed this Amendment No. 4 to Lease as of the day and year last written below. 

	LANDLORD:	 	TENANT:
	

A&P FAMILY INVESTMENTS

a California general partnership	
 	

NEOMAGIC, INC

a Delaware corporation
	

By	
 	

    
 John Arrillaga, Trustee of the Richard T. Peery 1976 Children Trusts, as General Partner	
 	

By	
 	

    

	

Date:	
 	

    
	
 	

    
 Print or Type Name
	

 	
 	

 	
 	

Title:	
 	

    

	

    	
 	

 	
 	

 
	 	 	Initial:	 	    

2

QuickLinks

Exhibit 10.18

AMENDMENT NO. 4 TO LEASE

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