Document:

Exhibit 4.7

May 31, 2005

Mr. Stan Swirhun
1471 Cassin Court
Boulder, Colorado
80303

Dear Stan:

I am pleased to offer you employment with Zarlink  Semiconductor Inc. ("Zarlink"
or "Company") on the following terms and  conditions.  This offer is conditional
upon being able to obtain any necessary work permits or visas required to permit
you to work part-time in Sweden over the first two years from your start date.

This offer,  once accepted by you and subject to work permit/visa  requirements,
will  constitute an employment  agreement  between  Zarlink and you. Please note
that all amounts are in United States dollars.

1.    Work Responsibilities

You will be employed in the position of Vice  President  of the  Optoelectronics
Business  Unit ("Opto  B/U"),  reporting to myself as  President  and CEO of the
Company.  Your U.S. office will be at your home office in Boulder,  Colorado and
your  office in Sweden  will be at the  Zarlink  offices  located  in  Jarfalla,
Sweden.  For  the  first  two (2)  years,  you  will  spend  as much  time as is
reasonably required in Sweden to efficiently run the Opto B/U and the balance of
your  work time will be spent  visiting  customers  and  suppliers  globally  or
pursuing other  assignments as I may request from time to time.  Your start date
will be no later than June 13, 2005 and will be earlier if possible.

In this position,  you will devote your best efforts,  and your full time, skill
and  attention to carrying out your duties and to promoting the interests of the
Company.   You  will  well  and  faithfully  perform  all  services  and  duties
customarily associated with your position,  together with such additional duties
and  responsibilities  as may be assigned by me from time to time.  Your primary
focus over the next two years will be to:

      (a)   Grow the Opto B/U revenues and return that  business to  significant
            profitability; and,

      (b)   Identify and develop an acceptable Sweden-based executive to succeed
            you in running the business unit.

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                                       2

You agree not to be employed or engaged in any other  capacity  (including  as a
director) in promoting, undertaking or carrying on any other business apart from
that of Zarlink, without the prior written authorisation of the Board. This does
not preclude you from any passive or personal  investments  that you may wish to
hold, unless with a competitor of the company, in which case you will advise the
Board prior to making such investments,  unless the investments are made through
an independently  managed fund or your ownership represents less than 0.1 % of a
corporation's publicly traded shares.

2.    Salary and Incentives

Your annual base salary will be $225,000.

In addition,  you will be eligible to earn an annual incentive payment under the
terms of the Company's Pay For Performance  (PFP)  Executive  Plan,  conditional
upon your successful  achievement of specific  target  objectives in each fiscal
year. Your target annual incentive will be 50% of your then current base salary.
The  incentive  could  increase  to 75% of  your  base  salary  for  exceptional
performance  as  determined  by me and  approved  by  the  Board  of  Directors.
Objectives  for each fiscal year will be reviewed and  finalized  with the Board
and  communicated  to you no later than sixty (60) days after your start date or
the commencement of each fiscal year, whichever is later.

By the end of May each year (the "incentive assessment date"),  Zarlink assesses
the  achievement of the previous  year's  objectives,  and calculates any earned
incentive  amount.  Please  note that you must be  employed  by  Zarlink  on the
incentive  assessment  date in order to be  eligible to receive  this  incentive
payment.

3.    Stock Options

The Board has approved a grant of one hundred thousand  (100,000) stock options,
pursuant  to  Zarlink's  1991  Employee  Stock  Option  Plan (a copy of which is
enclosed).  Option pricing will be in accordance  with the Plan formula and will
be effective  as of the date you accept this offer.  The option grant has a term
of 6 years and provides  for  staggered  equal  vesting over a period of 4 years
commencing one year from the date of grant.

Your specific  rights and  entitlements  relating to the options,  including any
rights arising upon the cessation of  employment,  will be governed by the terms
and conditions of the Plan.

4.    Health, Dental and Related Benefits

Zarlink  will provide  Health and Dental  coverage for you and your family under
its International  Benefits Plan. Life insurance,  AD&D, Business Travel and LTD
coverage for yourself  will be maintained on the U.S.  employee  group  benefits
plan.  You will have the  option to enroll  your  dependents  in the U.S.  Group
Benefits Plan under the optional benefits for Life and AD&D insurance,  Flexible
Spending Account,  and Vision care. Coverage under the optional benefits will be
determined  in  accordance  with the  specific  terms and  conditions  of the US
Benefits Plan.

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                                       3

5.    Company Car

Zarlink  will  provide you the use in Sweden of one company  car  (inclusive  of
lease,  fuel,  insurance and maintenance  costs).  You may select your choice of
vehicle in line with Zarlink Sweden's car policy for executives.

6.    Accommodations

While you are working at the  Jarfalla,  Sweden  office,  Zarlink will arrange a
suitable  furnished  apartment  for you to a maximum  cost of $2,800.  per month
inclusive  of all  related  costs  such as  utilities,  maintenance,  telephone,
internet access,  television and maid service. The terms of any apartment rental
agreement must be approved by the company prior to finalizing the lease.

7.    Pension

You will be entitled to  participate  in the Zarlink  U.S.  employee  401K Plan.
Zarlink will provide an annual  company  match  payment in  accordance  with the
terms of the Plan.

8.    Vacation

Zarlink  will  provide you four (4) weeks paid  vacation  leave per fiscal year,
accrued in equal bi-weekly instalments. In accordance with Zarlink's US Vacation
Policy, vacation accrual will cease at anytime during the year that your accrual
reaches 160 hours.  The accrual  will  re-start  once that total comes back down
below 160 hours. In addition Zarlink will provide paid U.S.  statutory  holidays
and any other leave you are  entitled to receive,  all in  accordance  with U.S.
employment standards legislation and Zarlink's policies.

9.    Income Tax

Your payroll will remain in the United States.  For the duration of the Opto B/U
assignment,  Zarlink  will  provide you income tax  protection  for all relevant
taxation years relative to this assignment using the U.S. baseline, such that it
will  reimburse  you the  grossed  up cost of any tax  liability  you incur as a
result of this assignment in excess of the amount you would have paid if you had
worked  throughout the relevant  period only in the United States.  Zarlink will
pay or reimburse  the  reasonable  income tax  preparation  costs charged by our
designated  accountants  for  the  taxation  years  relative  to your  Opto  B/U
assignment.

10.   Confidentiality of Information and Ownership of Proprietary Property

As a condition  of your  acceptance  of this offer,  you are required to provide
Zarlink  with an executed  original of the enclosed  Confidentiality  Agreement.
Please note the ongoing nature of the obligations set out in the Agreement.  The
terms of this Agreement form part of the terms and conditions of this employment
agreement.  In addition,  you will be required to sign Zarlink's "Code of Ethics
and Business Conduct" as a condition of employment. This will be provided to you
on your start date.

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                                       4

11.   Cessation of Employment

      (a)   Definitions

      For the purposes of this employment  agreement,  the following definitions
      apply:

      "Incapacity"   means  any  permanent  physical  or  mental  incapacity  or
      disability which prevents you from performing the essential duties of your
      position,  with no  reasonable  prospect of  recovery,  as  determined  by
      Zarlink on the basis of medical evidence satisfactory to the Board.

      "Good Just Cause" means any grounds at common law for which an employer is
      entitled to dismiss an employee  without notice or compensation in lieu of
      notice.

      "Termination Date" means:

            (i)   if Zarlink terminates your employment,  the date designated by
                  the  company  as the  last  day of  your  employment  (without
                  reference to any applicable  notice period to which you may be
                  entitled,  whether under  statute,  common law,  contract,  or
                  otherwise);

            (ii)  if you resign your employment with Zarlink,  the date which is
                  the end of the three  months  notice  period  or such  shorter
                  notice period as the parties agree;

            (iii) if you die, the date of death;

            (iv)  if this employment agreement is frustrated, which includes but
                  is not limited to Incapacity,  the date  designated by Zarlink
                  as the last day of your employment.

      (b)   Notice of Resignation

      You may resign at any time, for any reason, upon giving a minimum of three
      months advance written notice.  Zarlink  reserves the right to require you
      to  immediately  return  all  company  property  at any point  during  the
      resignation notice period, and to require you to refrain from attending at
      the workplace during any portion of the resignation notice period.

      (c)   Entitlements upon Resignation, Termination for Good Just Cause

      If you resign or your  employment is terminated for Good Just Cause,  then
      you will be entitled to receive any compensation, benefits and perquisites
      which  have  accrued  up to the  Termination  Date,  but you  will  not be
      entitled  to receive  other  compensation  of any  nature,  whether  under
      contract,  statute,  common law or otherwise.  Your rights  respecting any
      options,  which have been granted to you, will be determined in accordance
      with the terms of the Zarlink 1991 Stock Option Plan.

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                                       5

      (d)   Entitlements upon Death, Frustration of Contract

      If you die, or  frustration  of this  employment  agreement  occurs (which
      includes but is not limited to Incapacity),  then you (or your estate,  in
      the event of your death)  will be  entitled  to receive any  compensation,
      benefits and perquisites  which have accrued up to the  Termination  Date,
      but you will not be entitled to receive other  compensation of any nature,
      whether under  contract,  statute,  common law or  otherwise.  Your rights
      respecting any options, which have been granted to you, will be determined
      in accordance with the terms of the Zarlink1991 Stock Option Plan.

      (e)   Entitlements upon Termination without Good Just Cause

      If Zarlink  terminates your employment  without Good Just Cause,  then you
      will  be  provided  with  the  following  termination  package  (which  is
      inclusive  of any  statutory  entitlements  you may have under  applicable
      employment  standards  legislation,  and will be provided  net of required
      deductions):

            (i)   You will be paid for all time worked and your accrued vacation
                  balance  through the  Termination  Date.  This payment will be
                  made on the Termination Date.

            (ii)  You will be paid in a lump sum an  amount  equal to one  times
                  your then  current  annual base salary net of required tax and
                  other  withholdings.  This  payment  will  be made  within  30
                  business days following the Termination Date.

            (iii) You will be paid in a lump sum an amount in lieu of  incentive
                  equal to one times your average  earned annual  incentive over
                  the previous  three years or such shorter period if the period
                  of  employment  is shorter  than three  years.  (Note that any
                  special project bonus  arrangements will be excluded from this
                  calculation.)  This  payment  will be made  within 30 business
                  days following the Termination Date.

            (iv)  You will receive an amount  equivalent to the one-year cost of
                  your current life, health and dental insurance  coverage.  You
                  would be eligible to  participate  in benefits  through  COBRA
                  following the Termination  Date. You would need to contact our
                  insurance   carrier   (currently   Unum)  for   conversion  or
                  portability of your life insurance policy.

            (v)   You will have six (6) months  following the  Termination  Date
                  (or until  the  natural  expiry  date of your  stock  options,
                  whichever is earlier),  to exercise  any stock  options  which
                  have been  granted to you under the Zarlink  1991 Stock Option
                  Plan and which have  vested as of the last day of that six (6)
                  month period.  In all other respects,  your rights  respecting
                  any  options,   which  have  been  granted  to  you,  will  be
                  determined  in  accordance  with the terms of the Zarlink 1991
                  Stock Option Plan.

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                                       6

            (vi)  All  perquisites  such as company cars and the like will cease
                  30 days following the Termination Date.

      (f)   Resignation of Office

            If your  employment  ends for any  reason,  you  agree to  resign in
            writing  effective  upon the  Termination  Date  from any  office or
            directorship  held with Zarlink or with any subsidiary or affiliated
            company.

12.   Non-Competition and Non-Solicitation Obligations

We both  agree  that it  could  seriously  harm  Zarlink's  legitimate  business
interests if you took unfair advantage of the special knowledge you will gain in
your executive position,  to compete with Zarlink.  Accordingly,  you agree that
the  restrictions  set out below are reasonably  required to protect Zarlink and
its goodwill from unfair  competition.  You also acknowledge that your agreement
to such  restrictions  is of  essence  to this  employment  agreement,  and that
Zarlink would not enter into this employment agreement without your agreement to
the restrictions set out in this paragraph.

If your  employment  with  Zarlink  ceases for any reason,  you agree that for a
period of one (1) year from the Termination Date :

      (a)   you will not participate  (as an employee or consultant,  executive,
            director or significant  investor (greater than 20%) in any business
            operating  anywhere  in the world that  competes  directly  with the
            principal businesses of Zarlink (or its successors);

      (b)   you  will  not  directly  or  indirectly  solicit  any of  Zarlink's
            customers  for  business  in   competition   with  Zarlink  (or  its
            successors); and,

      (c)   you will not  solicit,  entice,  approach or induce any of Zarlink's
            employees or consultants  to leave their  employment or to end their
            consultancy arrangements with Zarlink (or its successors) or to join
            another business or organization.

13.   Choice of Law and Jurisdiction

This  employment  agreement will be governed by and construed in accordance with
the laws of the State of Colorado,  U.S.A.,  without regard to the principles of
conflicts of law,  and will in all respects be treated as an Colorado  contract.
In the event of a dispute, you agree that any legal proceedings must be taken in
the City of Boulder,  in the State of Colorado and you hereby  consent to attorn
to the jurisdiction of the Colorado courts.

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                                       7

14.   Whole Agreement

By  accepting  this offer of  employment,  you are  agreeing  that the terms and
conditions  set out in this offer  (including  the terms and  conditions  of any
documents  enclosed)  represent the entire agreement relating to your employment
with the  company;  that any and all  previous  agreements  or  representations,
written  or oral,  are  hereby  terminated  and  cancelled;  and that you hereby
release  Zarlink from any and all claims  whatsoever  under or in respect of any
such previous agreements or representations.

We trust that you will find this offer of  employment  responsive to your needs.
To signify your  acceptance,  please sign below,  and return one complete signed
original of this offer and of the  enclosed  Agreement  to the  attention of Don
McIntyre, no later than close of business, June 3, 2005.

All of us at Zarlink look forward to working with you to meet the challenges and
opportunities facing our Opto B/U.

Zarlink Semiconductor Inc.

Per: \S\ Kirk Mandy
     ------------------
     Kirk Mandy
     President & CEO

Acknowledgement and Acceptance

I, Stan  Swirhun,  have read and  reviewed,  in their  entirety,  this  offer of
employment  dated  May 19,  2005,  and the  documents  enclosed.  I have  had an
opportunity  to ensure that I clearly  understand the terms and conditions of my
employment  with  Zarlink,  and I have had the  opportunity  to  confer  with an
independent  legal advisor if I so wished, in advance of accepting this offer of
employment.  I hereby  represent  and confirm to Zarlink that I am not under any
contractual  or other legal  obligation,  which  prevents me from accepting this
offer of employment or from abiding by the terms and conditions of my employment
with  Zarlink.  I accept  this offer of  employment,  and agree to the terms and
conditions as set out.

DATED AT Boulder Co. this 1 day of June 1, 2005.
        ------------     ---           ---

Executive                                 Witness

\S\ Stan Swirhun                    \S\ Lesley Swirhun
-----------------                   ---------------------------
Stan Swirhun                        Witness name (please print)Exhibit 4.8

July 31, 2007

Henry  Perret
9905 Oliver Drive
Austin, Texas 78736

Dear Hank:

I am  pleased  to  offer  you  employment  with  Zarlink  Semiconductor  LE Inc.
("Zarlink" or "Company") on the following terms and  conditions.  This offer and
its acceptance are conditional upon Zarlink  Semiconductor  Inc.  completing the
acquisition of Legerity Holdings, Inc.

All amounts are in United States dollars.

Zarlink is an "at will" employer and your  employment with Zarlink is an at-will
relationship,  subject to any payments or other  consideration due to you in the
event of your termination  without Cause.  This means that either Zarlink or you
may terminate the employment  relationship  at any time for any reason,  with or
without cause or advance notice.

1.    Work Responsibilities

You will be  employed  for a term of one (1) year in the  position  of Sr.  Vice
President and General Manager,  Network  Communications Product Group, reporting
to Kirk Mandy,  Company  CEO and will be based in the  Company's  Austin,  Texas
offices.  Your  start  date will be  immediately  following  the  closing of the
Legerity acquisition.  Your employment will automatically terminate one (1) year
from your start date unless the term is extended by mutual agreement.

In this position, you will devote your best efforts, and your full working time,
skill and attention,  to carrying out your duties and to promoting the interests
of the  Company.  You will be  expected  to  perform  all  services  and  duties
customarily associated with your position,  together with such additional duties
and responsibilities as assigned from time to time.

2.    Salary and Incentives

Your annual base salary will be $350,000.

In addition,  you will be eligible to  participate  in the Zarlink Bonus Plan at
50% of base salary. Details of the plan will be communicated to you.

In order to  provide  you with an  incentive  to  remain  in the  employ  of the
Company,  you will be entitled to receive a retention  bonus equal to  $350,000.
The retention bonus, less applicable statutory deductions and withholdings, will
be payable after the completion of one (1) year of employment; provided however,
if your employment is earlier  terminated by the Company without Cause, you will
be entitled to receive 100% of the retention bonus or any unpaid portion thereof
upon termination.  The retention bonus payment will be made within 30 days after
the

<PAGE>

anniversary date of employment,  or in the case of termination without Cause, on
the Termination Date.

3.    Health, Dental and Related Benefits

Zarlink will maintain  Legerity's current  comprehensive group employee benefits
plan.  Your  eligibility  for coverage and for benefits  will be  determined  in
accordance  with the specific  terms and  conditions of the plan. We reserve the
right to terminate or amend any of these plans from time to time.

4.    Pension

You will be entitled to  participate  in the Zarlink  U.S.  employee  401K Plan.
Zarlink will provide an annual  company  match  payment in  accordance  with the
terms of the Plan.  We reserve the right to  terminate or amend this Plan at any
time.

5.    Vacation

Zarlink will provide you four (4) weeks paid vacation leave per year, accrued in
equal bi-weekly  installments.  In accordance with Zarlink's US Vacation Policy,
vacation accrual will cease at anytime during the year that your accrual reaches
160 hours.  The accrual will  re-start once that total comes back down below 160
hours.  You will be offered a reasonable  time to reduce your  current  vacation
accrual to the 160 hour cap, if  applicable.  In addition  Zarlink  will provide
paid U.S. statutory holidays in accordance with company policy from time to time
and any other leave you are legally entitled to receive,  all in accordance with
U.S. employment standards legislation and Zarlink's policies.

6.    Expenses

The  Company  will  pay or  reimburse  you  for  all  reasonable  and  necessary
out-of-pocket  expenses  actually  incurred  by you in the  performance  of your
services  under this  Agreement,  provided  you provide  proper  records  and/or
receipts for such expenses and otherwise  properly  account for such expenses in
accordance  with the  Company's  policy as  presently in effect and amended from
time to time.

7.    D&O Insurance Coverage

You will be entitled to director  and officer  insurance  coverage for your acts
and  omissions  while  employed  as an officer of the Company on a basis no less
favorable  to you than the  coverage  provided to all other  similarly  situated
officers.

8.    Confidentiality of Information and Ownership of Proprietary Property

The Company  agrees to and will impart to you and provide you with access to its
Confidential Information.  "Confidential  Information" means all information and
compilations  of  information  of  any  kind,  type  or  nature   (tangible  and
intangible,  written or oral, and including  information  contained,  stored, or
transmitted  through any  electronic  medium),  whether  owned by the Company or
licensed  from third  parties,  which,  at any time during your  employment,  is
devised,  developed,  designed or discovered or otherwise acquired or learned by
you to the extent it  relates  to the  Company,  including  without  limitation,
products  and  services,   including  without  limitation,   plans,  procedures,
formulae,   processes,   pricing,  and  costs;   customers,   including

<PAGE>

without limitation, lists, contact information,  pricing, preferences, and other
non-public  information  concerning  customers;  sources of supply and  vendors;
good-will;  marketing plans, strategies,  and budget;  management and employees,
including without limitation,  compensation, personal data, contact information,
and other non-public  information  concerning employees;  technology,  technical
data,  research,  manuals,  drawings,  designs,  and  documentation;   financial
condition,   including  without  limitation,  product  or  service  fees,  sales
information,  volume, pricing, costs, properties,  assets, analysis, and reports
and the  information  contained  therein;  accounting  and business  methods and
plans; business  development,  including without limitation,  plans,  prospects,
strategies,  fees, costs,  pricing,  and new ideas and developments;  inventions
made,  developed  or  conceived  by the  Company  and/or  its  subsidiaries  and
affiliates; trade secrets; and computer software,  specifications,  source code,
and executable code.

You acknowledge and agree that the Confidential Information is valuable and is a
unique  asset that  provides  the  Company an  advantage  over  competitors;  is
developed or acquired by the Company at  considerable  time and expense,  and is
proprietary  to the Company and is intended to be used solely for the benefit of
the Company. You acknowledge and agree that, but for your agreement to the terms
and conditions of this Agreement, the Company would not impart or provide access
to such Confidential Information.

As a condition  of your  acceptance  of this offer,  you are required to provide
Zarlink with an executed original of the enclosed Intellectual Property Rights &
Non-Solicitation  Agreement.  Please note the ongoing nature of the  obligations
set out in the Agreement. The terms of this Agreement form part of the terms and
conditions of this employment  agreement.  In addition,  you will be required to
sign  Zarlink's  "Code  of  Ethics  and  Business  Conduct"  as a  condition  of
employment. This will be provided to you on your start date.

9.    Notification of Materials or Documents from Other Employers

You warrant that you will not bring to Zarlink or use in the performance of your
responsibilities at Zarlink any information,  materials or documents of a former
employer  that are not  generally  available to the public,  unless you obtained
express written  authorization from the former employer for their possession and
use, and disclosed such circumstances to Zarlink.

10.   Notification of Other Post-Employment Obligations

As part of your employment with Zarlink, you are not to breach any obligation of
confidentiality that you have to former employers (other than Legerity), and you
agree to honor all such  obligations to former  employers during your employment
with Zarlink. You warrant that you are not subject to an employment agreement or
restrictive  covenant  preventing  full  performance  of your duties  under this
Agreement.

11.   Cessation of Employment

      a.    Definitions

            For  the  purposes  of  this  employment  agreement,  the  following
            definitions apply:

            "Cause" means (i) your  commission of any act of dishonesty,  fraud,
            misrepresentation, misappropriation, embezzlement or the like, which
            was intended to result in  substantial  gain or personal  enrichment
            for you at the expense of the Company; (ii) your

<PAGE>

            unauthorized  use or  intentional  disclosure  of  any  confidential
            information   or  trade  secrets  of  the  Company  (not   including
            inadvertent or non-injurious disclosures),  including your breach of
            that  certain   Intellectual   Property  Rights  &  Non-Solicitation
            Agreement entered into in connection herewith;  (iii) any willful or
            intentional  violation by you of a law or  regulation  applicable to
            the  Company's   business,   which  violation,   in  the  reasonable
            discretion of the Board, is or is reasonably  likely to be injurious
            to the  Company;  (iv)  your  commission  of (a) a felony or (b) any
            other crime which involves moral  turpitude or which would seriously
            damage  the  reputation  of the  Company;  (v) gross  negligence  or
            willful  misconduct in the  performance of your duties after written
            notice  from  the  Company   identifying  the  misconduct,   and  if
            reasonably  capable of being cured, a reasonable  cure period of not
            less than  thirty  (30) days;  or (vi) your  willful or  intentional
            violation  of  a  material  Company  policy  or  procedure  that  is
            injurious to the Company.

            "Incapacity"  means any  permanent  physical  or mental  incapacity,
            disability  or  condition  which  prevents you from  performing  the
            essential   duties   of  your   position,   even   with   reasonable
            accommodation, for a period of not less than 90 consecutive days and
            with no reasonable prospect of recovery, as determined in good faith
            by  Zarlink  on the basis of medical  evidence  satisfactory  to the
            Board.

            "Termination Date" means:

            (i)   if Zarlink terminates your employment,  the date designated by
                  the  Company  as the  last  day of  your  employment  (without
                  reference to any applicable  notice period to which you may be
                  entitled,  whether under  statute,  common law,  contract,  or
                  otherwise);

            (ii)  if you resign your employment with Zarlink,  the date which is
                  the end of the one year  agreement term or, if more than three
                  months remain,  the three-month  notice period or such shorter
                  notice period as the parties agree;

            (iii) if you die, the date of death;

            (iv)  in the event of Incapacity,  the date designated by Zarlink as
                  the last day of your employment after  determination that such
                  Incapacity exists.

      b.    Notice of Resignation

            You may resign at any time, for any reason, upon giving a minimum of
            three month  advance  written  notice or the balance of the one year
            employment  term if shorter  or such  shorter  notice  period as the
            parties  agree.  Zarlink  reserves  the  right  to  accelerate  your
            Termination Date.

      c.    Entitlements upon Resignation, Termination for Cause

            If you resign or your  employment is terminated for Cause,  then you
            will  be  entitled  to  receive  any   compensation,   benefits  and
            perquisites which have accrued up to the Termination Date.

      d.    Entitlements upon Death, Incapacity

<PAGE>

            If you die, or are determined to suffer an Incapacity,  then you (or
            your estate, in the event of your death) will be entitled to receive
            any compensation,  benefits and perquisites which have accrued up to
            the Termination Date.

      e.    Entitlements upon Termination without Cause

            If your employment is terminated before the end of the one year term
            without  Cause you will be  provided  with the  following  (which is
            inclusive  of  any  statutory   entitlements   you  may  have  under
            applicable  employment standards  legislation,  and will be provided
            net of required deductions):

            (i)   You will be paid for all time worked and your accrued vacation
                  balance through to the Termination  Date. This payment will be
                  made on the Termination Date.

            (ii)  You will be paid in a lump sum the amounts  remaining  (salary
                  and bonus) for the balance of your one-year  employment  term.
                  This  payment  will  be made  within  30  days  following  the
                  Termination Date.

            (iii) You  will be paid a  gross  amount  in  cash,  less  statutory
                  deductions,  sufficient  to pay for the  remaining  number  of
                  months of the one year employment term of insurance  premiums,
                  such  as  COBRA  premiums,  in  order  to  obtain  (if you are
                  eligible) life,  health and dental  insurance  coverage at the
                  same or similar  premium basis and level that was available to
                  you at the time of your termination.  You will need to contact
                  our  insurance  carrier  (currently  Unum) for  conversion  or
                  portability of your life insurance policy.

            (iv)  All other  perquisites,  if any, will cease 30 days  following
                  the Termination Date.

      f.    Resignation of Office

            If your  employment  ends for any  reason,  you  agree to  resign in
            writing  effective  upon the  Termination  Date  from any  office or
            directorship  held with Zarlink or with any subsidiary or affiliated
            company.

12.   Non-Competition and Non-Solicitation Obligations

You  acknowledge  and agree that your  training,  work and  experience  with the
Company  will  enhance  your  value to  competitors,  and that the nature of the
Confidential  Information  will make it difficult,  if not impossible for you to
work in any business that competes  directly with the principal  business of the
Company without  disclosing or utilizing the  Confidential  Information to which
you have access during the course of your  employment.  You further  acknowledge
and agree that the  Company's  agreement  to impart to and to  provide  you with
access to its Confidential  Information is ancillary to and contingent upon your
agreement  that you will not,  for a period of twelve  (12)  months  immediately
following the Termination Date:

      a.    participate  (as an employee or consultant,  executive,  director or
            significant  investor  (greater than 20%) in any business  operating
            anywhere  in the world that  competes  directly  with the  principal
            businesses of Zarlink (or its successors);

      b.    directly  or  indirectly  solicit  any of  Zarlink's  customers  for
            business in competition with Zarlink (or its successors); and,

<PAGE>

      c.    solicit,  entice,  approach or induce any of Zarlink's  employees or
            consultants  to leave their  employment or to end their  consultancy
            arrangements  with  Zarlink (or its  successors)  or to join another
            business or organization.

13.   Notices

All notices, requests, and other communications hereunder must be in writing and
will be deemed to have been duly given  only if (i)  delivered  personally  to a
person  authorized  to accept,  (ii)  delivered by facsimile  transmission  with
transmission  confirmation,  (iii) mailed (by U.S. certified or registered mail,
return  receipt  requested),  or (iv)  delivered  by  overnight  courier  at the
following addresses and facsimile numbers:

                  To the Company:
                  ----------------

                           Zarlink Semiconductor Inc
                           -----------------------
                           400 March Road
                           -----------------------
                           Ottawa, Ontario, Canada K2K 3H4
                           -------------------------------
                           Facsimile: 613 270-7403
                           -----------------------
                           Attn: Don McIntyre
                           -----------------------

                  To the Employee:
                  ----------------

                           Henry (Hank Perret)
                           -----------------------
                           9905 Oliver Drive
                           -----------------------
                           Austin Texas 78736
                           -----------------------
                           Facsimile: 512 228-5500
                           -----------------------

All  such  notices,  requests,  and  other  written  communications  will (i) if
delivered  personally or by overnight carrier to the address as provided herein,
be deemed given upon delivery and (ii) if delivered by facsimile transmission or
by U.S.  mail in the manner and to the  address as  provided  herein,  be deemed
given three (3) days after the date of the facsimile  transmission  verification
or after  deposit in the U.S.  mail.  Any party from time to time may change its
address,  facsimile  number,  or other information for the purpose of notices to
that party by giving written notice  specifying such change to the other parties
hereto.

14.   Choice of Law and Jurisdiction

This  employment  agreement will be governed by and construed in accordance with
the laws of the State of Texas,  U.S.A.,  without  regard to the  principles  of
conflicts of law, and will in all  respects be treated as a Texas  contract.  In
the event of a dispute,  you agree that any legal proceedings must be brought in
the state or federal  courts in the County of Travis in the State of Texas,  and
you hereby submit to personal jurisdiction in such courts in connection with any
such dispute.

15.   Whole Agreement

By  accepting  this offer of  employment,  you are  agreeing  that the terms and
conditions  set out in this offer  (including  the terms and  conditions  of any
documents  enclosed)  represent the entire agreement relating to your employment
with the Company; that any and all previous agreements

<PAGE>

or  representations,  written or oral, are hereby terminated and cancelled;  and
that you hereby release Zarlink from any and all claims  whatsoever  under or in
respect of any such previous agreements or representations.  If any provision of
this  Agreement is held to be  unenforceable  in whole or in part, the remaining
provisions  shall  remain  in full  force  and  effect,  and such  unenforceable
provision shall be deemed to be  automatically  amended and replaced by a legal,
valid and  enforceable  provision  which  accomplishes  as far as  possible  the
purposes and intent of such original provision.

We trust that you will find this offer of  employment  responsive to your needs.
To signify your  acceptance,  please sign below,  and return one complete signed
original of this offer and of the  enclosed  Agreement  to the  attention of Don
McIntyre no later than 10 days before the closing of the Legerity acquisition.

All of us at Zarlink look forward to working with you.

Zarlink Semiconductor Inc.

Per: \S\ Don McIntyre
     ------------------------------------
     Don McIntyre
     Sr. VP General Counsel and Secretary

<PAGE>

Acknowledgement and Acceptance
------------------------------

I, Henry (Hank) Perret, have read and reviewed, in their entirety, this offer of
employment  dated  July 31st,  2007 and the  documents  enclosed.  I have had an
opportunity  to ensure that I clearly  understand the terms and conditions of my
employment  with  Zarlink,  and I have had the  opportunity  to  confer  with an
independent  legal advisor if I so wished, in advance of accepting this offer of
employment. I hereby represent and confirm to Zarlink that, assuming the closing
of the  acquisition of Legerity and Zarlink,  I am not under any  contractual or
other legal obligation  (other than my obligations to Legerity),  which prevents
me from  accepting this  conditional  offer of employment or from abiding by the
terms and conditions of my employment  with Zarlink.  I accept this  conditional
offer of employment, to be effective as of and conditioned on the closing of the
acquisition of Legerity by Zarlink, and agree to the terms and conditions as set
out.

DATED at Ottawa this 31st day of July, 2007

\S\ Hank Perret
-------------------
Henry (Hank) Perret

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