Document:

Employment Offer Agreement

 Exhibit 10.1 
 

 
 April 26, 2006 
 Richard D. Snyder 
 Dear Rick: 
 We need people who believe in the power of technology, who believe in always looking for a better way, and who believe that customer
relationships are sacred. We need people who have energy as well as talent, values as well as skills, caring as well as experience. Not everybody meets those standards. We think you do. 
 With that in mind, we are pleased to extend to you the following offer of temporary employment: 
  

	 	•	 	Position: Interim Chief Executive Officer reporting to Gateway’s Board of Directors with an employment start of February 8, 2006. It is understood that
Gateway will continue its search for a permanent CEO while you are in this interim position. It is anticipated that your employment will continue until such time as a permanent CEO is named, unless a decision is made to terminate your employment
(with or without cause) either by you or the Board of Directors. Because of the temporary nature of this position, no severance will be payable to you when your employment terminates. 

 While serving in the role of Interim Chief Executive Officer it is anticipated that you will also continue in your role as Chairman of the Board. However,
by accepting the Interim Chief Executive Officer position and the compensation set forth herein, you agree to forgo receiving any separate compensation to which you would otherwise be entitled as Chairman of the Board. 
  

	 	•	 	Salary: Base salary in the annualized amount of $500,000 per year, payable in accordance with Gateway’s practices (currently bi-weekly). 

 

	 	•	 	Bonus: You will not be eligible to participate in the Gateway Bonus Plan.

  

	 	•	 	Stock Option Plan: Pursuant to the enclosed Option Agreement, you will be granted 600,000 option shares (non-qualified stock option) under the Company’s 2000 Equity
Incentive Plan. 

  

	 	•	 	Vacation/Sick: You will not have a set allotment of vacation time as you must be available at any time, including those times when you are taking time off. At Gateway,
those in vice president and higher roles are expected to respond to email, phone calls and may be required to attend meetings remotely even while on time off. As a result, it is Gateway’s policy to not place a set limit on the ability of those
in vice president and higher roles to take time off. However, you may be required to provide notification of your intention to take time off and such time off must not conflict with Gateway’s business needs. You will be awarded up to 5
sick days per year, up to a maximum accrual of 20 days. In addition, Gateway recognizes 9 paid holidays. 

  

	 	•	 	Health and Medical Benefits: You are eligible on your date of hire to participate in the following Gateway group plans, in accordance with the terms of each respective plan:
health, dental, vision, life insurance and Section 125 Flexible Spending Accounts (medical and dependent care spending accounts). You need to enroll online within 31 days of your hire date. For additional information about health and
medical benefits, you may contact Gateway’s Benefits Helpline at 888-225-7151. 

	 	•	 	401(k) Investment Plan: You will be immediately eligible to enroll in the Retirement Savings Plan. The Company matches 50% of the first 6% of salary deferral upon enrollment
with vesting in Company match of 50% after one year of service and 100% after two years of service. You will be automatically enrolled at a contribution rate of 3% of your pretax eligible earnings (base salary only). Your contributions
will be invested in the Managed Income Portfolio. If you do not wish to contribute to the Plan, you must change your contribution rate to 0% within the first 30 calendar days or your eligibility. You may also increase or decrease your
contribution rate at any time. 

 This employment offer is contingent upon passing Gateway’s pre-employment background check, verifying
all information presented is true and accurate, signing Gateway’s Non-Compete, Non-Disclosure, and Intellectual Property agreement, completing an I-9 form, which establishes identity and employment eligibility, signing the Consent Concerning
Consumer and Investigative Consumer Reports, as well as other documents which will be provided to you. 
 Rick, we believe this is a great opportunity for
both you and Gateway and look forward to working with you. Please confirm as indicated below that you wish to join our team and return this signed letter along with an original signed copy of the enclosed “Non-Compete, Non-Disclosure and
Intellectual Property Agreement” to Mike Tyler, General Counsel. 
  

	
	Sincerely,
	
	/s/ Michael R. Tyler
	Michael R. Tyler
	Chief Legal and Administrative Officer

  

					
	ACCEPTED PURSUANT TO THE TERMS SET FORTH ABOVE:
			
	/s/ Richard D. Snyder	 		 	April 26, 2006
	Richard D. Snyder	 		 	Date

 This letter does not constitute either an implied or express contract of employment. At
Gateway, employment is “at-will.” This means that you can terminate your employment at any time and for any reason and that the company reserves the right to terminate your employment on the same basis, with or without cause. The “at
will” employment relationship cannot be changed without the express written consent of the Company and the employee. Bonus payments are in fact discretionary. This means that the Company, in its sole dissection with or without notice, can
discontinue the bonus program or materially change it. You acknowledge and agree that your employment with Gateway will be “at will” regardless of any other language or phrase in this letter to the contrary. 
  

					
			
	/s/ RDS	 		 	April 26, 2006
	Initial	 		 	Date

  

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 NON-COMPETE, NON-DISCLOSURE AND INTELLECTUAL PROPERTY AGREEMENT 
 This Non-Compete, Non-Disclosure and Intellectual Property Agreement (“Agreement”) is made and entered into by and between Richard D. Snyder
and Gateway, Inc., a corporation having an office at 7565 Irvine Center Drive, Irvine CA, including its subsidiaries (“Gateway” or “Company”). 
 INTRODUCTION 
 Gateway is in the highly competitive national and international business of
directly and indirectly, selling and marketing computers, computer related products, peripherals providing computer related services. As such, Gateway has developed, and continues to develop and use, commercially valuable proprietary technical and
non-technical information, processes, methods and techniques, which are vital to the success of its business. Gateway also has developed substantial favorable goodwill with both consumer and business customers alike. 
 You understand that, if employed, you will be trained in Gateway’s business procedures and processes and may or will have access to certain
confidential information belonging to Gateway, which the Company considers to be among its most valuable assets. You also understand that in order for Gateway to protect its secret and confidential information and its goodwill with customers, it is
necessary for Gateway to, among other things and to the maximum extent permitted by law, reasonably restrict your ability to compete against Gateway. In keeping with this understanding, you acknowledge that the restrictions on your ability to
disseminate such information and compete with Gateway, as set forth more fully herein, are necessary and proper for the protection of Gateway and, at the same time, are fair to you. 
 Therefore, in consideration of your employment at Gateway you agree to the following: 
  

	1.	CONFIDENTIALITY: Except as expressly directed by Gateway and in the performance of your duties at Gateway, you will not directly or indirectly, during your employment
or thereafter, disclose or make any use, for your own benefit or for the benefit of any third party or a business or entity other than Gateway, of any Confidential Information. The term “Confidential Information” means all information
which is (a) disclosed to or known by you as a consequence of or through your employment with Gateway and (b) not generally known to persons, corporations, organizations or others outside Gateway. It includes things such as technical or
non-technical data, formulas, computer programs, devices, methods, techniques, drawings, processes, methods of manufacture, financial data, customer specific information, supplier specific information, cost information, production and sales
information, and marketing plans and strategies. You must limit dissemination of Confidential Information to only those Gateway employees who have a need to know. You also must return all Confidential Information and all documents, notes, or
physical evidence thereof to Gateway upon the termination of your employment with Gateway or at Gateway’s request, whichever occurs first. 

  

	2.	NON-COMPETITION COVENANT (Generally not applicable in California): As a reasonable measure to assure the non-disclosure of Gateway’s Confidential Information and
to protect Gateway’s customer relationships, you agree that, during your employment with Gateway and for a period of either one (1) year following termination of employment or one (1) year following Gateway’s obtaining injunctive
relief to prevent you from violating this covenant, whichever is later, you will not, directly or indirectly, work for, own, manage, operate, control or participate in the ownership, management, operation or control of, or provide consulting or
advisory services to, any individual, partnership, firm, corporation or institution that is a competitor of Gateway. For purposes of this Agreement, “competitor” shall mean any person or business entity that, directly, designs, markets, or
sells computers, computer related products and peripherals or computer related services. The above restrictions on your activities during and after termination of your employment with Gateway only apply where your activities have the potential to
lead to disclosure or use, inadvertent or otherwise, of Gateway’s Confidential Information as defined in Paragraph 1 of this Agreement. 

  

	3.	 SCOPE OF NON-COMPETITION AGREEMENT: You acknowledge that Gateway’s business is national and international in scope, that this Agreement is
limited in time and scope so as to be reasonable and equitable to you and Gateway, and that it will not prevent you from earning a livelihood should your employment with Gateway terminate for any reason. You and Gateway agree that it is not your
intention to violate any public policy, statutory rule or regulation, or common law by entering into this Agreement. Accordingly, if any part of any covenant contained in Paragraph 2 hereof is determined by a court of competent jurisdiction to be
overly broad, thereby making the covenant unenforceable, the parties agree that such court shall substitute a reasonable judicially enforceable 

  

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limitation in place of the offensive part of the covenant and that, as modified, the covenant shall be fully enforceable as if set forth herein by the
parties themselves in modified form. 

  

	4.	REMEDIES FOR BREACH OF AGREEMENT: You acknowledge and agree that irreparable harm would result from your breach of the covenants contained in this Agreement and that
monetary damages alone would not provide adequate relief. Accordingly, if you breach a covenant of this Agreement, you acknowledge and agree that injunctive relief in favor of Gateway would be proper. In addition, you agree that any award of
injunctive relief does not preclude Gateway from also seeking or recovering compensatory or punitive damages that may have resulted from the breach. 

  

	5.	NON-SOLICITATION: You agree that, during your employment at Gateway and for a period of one (1) year following termination thereof, you will not, either directly
or indirectly, (i) solicit any of Gateway’s customers; (ii) recruit, influence, solicit, induce or attempt to induce, or encourage others to recruit, influence, solicit, or induce, any employee of Gateway to terminate their employment
with, or otherwise cease their relationship with Gateway, in order to join an entity with which you are affiliated; or (iii) hire any employee of Gateway as a result of any such recruitment, influence, solicitation, encouragement, or
inducement. 

  

	6.	DISCLOSURE OF INTELLECTUAL PROPERTY: You agree that during your employment, you will promptly advise Gateway of any and all improvements, inventions, developments,
discoveries, innovations, and other things which may be of assistance to Gateway, whether patentable or not, including works of authorship and all ideas, processes, trademarks, service marks, copyrights, formulas, computer programs, etc., relating
to or arising out of any development, service, or products of, or pertaining in any manner to, the business of Gateway, and made or conceived by you, alone or with others, while employed by Gateway or within one (1) year of your termination of
employment (collectively “Intellectual Property”). You acknowledge and understand that patent applications pursued by you, directly or indirectly, within one (1) year following your employment with Gateway, will create a rebuttal
presumption that the information, trade secrets, know-how, knowledge, etc. upon which the technology, inventions, or Intellectual Property is based, relates to, arose from/during, or in the course of your employment with Gateway.

  

	7.	ASSIGNMENT OF INTELLECTUAL PROPERTY: You agree that all Intellectual Property, as defined in Paragraph 6 hereof, except as listed in Attachment “A”, shall be
and remain the sole and exclusive property of Gateway and that you will, at the request of Gateway and without further consideration, (i) assign to Gateway or its nominee all right, title and interest in and to any such Intellectual Property
and (ii) do all things reasonably necessary to insure Gateway’s ownership of such Intellectual Property, including without limitation, the execution of any necessary documents required to enable Gateway to obtain patents or copyrights in
the United States and foreign countries with respect to such Intellectual Property. You understand that Gateway does not waive (and expressly retains) its shop rights, work for hire, implied licenses and other rights resulting from its employment of
you. If, during the course of your employment with Gateway, you create any original work of authorship fixed in any tangible form, alone or jointly with others, which comes from your knowledge of the activities of Gateway gained through your
employment with Gateway, such work shall be deemed a “work for hire” under the copyright laws and shall be owned by Gateway. You understand that any assignment or release of such works can only be made by Gateway and, at Gateway’s
expense, and that you will do everything reasonably necessary to enable Gateway to acquire and enforce its rights in such works. 

  

	8.	NO EMPLOYMENT CONTRACT: This Agreement is not a contract of employment and does not give you any right to employment for any specific period of time. At Gateway,
employment is at-will. This means that you have the right at any time to terminate your employment for any reason. It also means that Gateway has the right to terminate you on the same basis, with or without cause. 

  

	9.	MISCELLANEOUS: 

  

	 	a.	This Agreement constitutes the entire agreement between you and Gateway with respect the subjects covered herein and may not be modified or amended except by a writing signed by you
and Gateway. You acknowledge that by signing this Agreement, you have not relied on any statements or promises not contained herein. You further acknowledge that this Agreement supersedes any and all prior agreements, arrangements, and
understandings, whether written or oral, with respect to the subject matters contained herein. 

  

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	 	b.	The validity, interpretation and legal effect of this Agreement shall be governed by the laws of the State of Delaware, without regard to its conflict of law rules.

  

	 	c.	Each provision of this Agreement shall be considered severable and if a provision is, for any reason, held to be invalid or overbroad, all remaining provisions shall be enforceable.

  

	 	d.	You agree that Gateway’s failure to enforce the provisions contained in Paragraph 2 of this Agreement against any other employee does not waive Gateway’s right to enforce
those provisions against you. 

  

	 	e.	You agree that upon termination of your employment with Gateway for any reason, and during the period of time defined by Paragraph 2, you will advise Gateway of the name and address
of your prospective employer at least fourteen (14) calendar days prior to commencing such employment. You agree to also provide Gateway, upon request by Gateway, with a detailed description of the duties and responsibilities of the position
with the prospective new employer. The parties agree that this provision is reasonably necessary under Paragraph 2 of this Agreement. 

  

	 	f.	This Agreement shall be binding upon you and your heirs and legal representatives, and shall inure to the benefit of Gateway and its successors and assigns.

  

			
	Executed this 26th day of April, 2006
		
	By:	 	/s/ Richard D. Snyder
		 	Richard D. Snyder

  

 5Stock Option Agreement

 Exhibit 10.2 
 

 
 Option Agreement 
 (2000 Equity Incentive Plan) 
 This document constitutes part of the prospectus covering securities that may be registered
under the Securities Act of 1933. 
  

			
	Optionee	  	Richard D. Snyder
		
	Grant Date	  	Tuesday, April 25, 2006
		
	Vesting Start Date	  	Wednesday, February 8, 2006
		
	Exercise Price	  	$2.17
		
	Option Shares	  	600,000

 Gateway, Inc. hereby grants the Optionee named above a non-qualified stock option under the
Company’s 2000 Equity Incentive Plan. The Option allows Optionee to purchase shares of the Company’s Common Stock up to the number of shares shown by “Option Shares,” above. The Option is effective as of the Grant Date shown
above. The Company will deliver to Optionee certificates for shares purchased under the Option upon payment of the Exercise Price, subject to the terms and conditions below. 
 1. Definitions. Stylized terms used herein have the following meanings: 
  

	 	1.1.	“Board” means the Board of Directors of the Company. 

  

	 	1.2.	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	 	1.3.	“Committee” means the Compensation Committee of the Board. 

  

	 	1.4.	“Common Stock” means the Company’s Common Stock, par value $.01 per share. 

  

	 	1.5.	“Company” means Gateway, Inc., a Delaware corporation. 

  

	 	1.6.	“Disability” means Optionee’s permanent inability, due to illness, accident, injury, physical or mental incapacity or other disability, to carry out effectively
Optionee’s duties and obligations in the management of the Company. 

  

	 	1.7.	“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

	 	1.8.	“Exercise” of the Option means the purchase by Optionee of Option Shares under Section 2. 

  

	 	1.9.	“Exercise Price” means the Exercise Price shown above, which is the closing price per share of the Common Stock on the New York Stock Exchange on the Grant Date as
reported in the Wall Street Journal. 

  

	 	1.10. 	“Gateway Companies” means, collectively, the Company and its subsidiaries. Individually, a “Gateway Company” means any of the Company and its subsidiaries.

  

	 	1.11. 	“Option” means the option to purchase Common Stock granted Optionee by this Agreement. 

  

	 	1.12. 	“Option Shares” means all shares of Common Stock issued or issuable upon Option exercise, as adjusted under Section 8. 

  

	 	1.13. 	“Plan” means the Company’s 2000 Equity Incentive Plan. 

  

	 	1.14. 	“Requirements” has the meaning provided in Section 10. 

  

	 	1.15. 	“Securities Act” means the Securities Act of 1933, as amended. 

  

	 	1.16. 	“Service” means Optionee’s service as an employee and/or director of the Company. 

 2. Exercise. Optionee may exercise the Option, in one or more transactions, to the extent that it is vested and has not expired. Optionee exercises the Option by giving a written notice that the
Option is to be exercised pursuant to the Company stock option exercise program established with a Company-approved broker. Termination of Service or expiration of the Option cannot reverse any previous, proper Option exercise hereunder. 

3. Vesting. Subject to Section 4, and so long as Optionee is in Service, the Option will vest with respect to one-half of the total number of
Option Shares granted at midnight of the day before each of the first two anniversaries of the Vesting Start Date. 
 4. Expiration. When the
Option expires, any vested portions become unvested and can no longer be exercised. The Option expires at the earliest to occur of (1) midnight of the day before the tenth anniversary of the Grant Date; (2) midnight of the day before the
third anniversary of any termination of Service for any reason other than death or Disability, if Optionee provided Service to the Company for six years or more, (3) midnight of the ninetieth day after any termination of Service for any reason
other than death or Disability, if Optionee did not provide Service to the Company for six years or more; or (4) midnight of the day before the first anniversary of the date on which the Optionee ceases Service as a result of death or
Disability. 
  

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 5. Conformity with Plan. The Option and this Agreement are intended to conform to the Plan’s
provisions. The Plan’s provisions will control in the event of any inconsistency between them and this Agreement. 
 6. Withholding of Taxes.
The Committee may, as a condition of Option exercise, require payment by Optionee of, or indemnification from Optionee for, any withholding or other tax due upon Option exercise. 
 7. Payments. Any payments by Optionee required under Sections 2 or 6 may be made either in cash (including certified or cashier’s check, or money order) or by delivery of other shares of Common
Stock already owned by Optionee for at least six months and to which Optionee has good title, free and clear of all liens and encumbrances. 
 8.
Adjustments. In the event of any stock dividend, stock split, recapitalization, reorganization, merger, consolidation, combination or exchanges of shares, or any other similar change affecting the Common Stock, the Committee will
adjust the Exercise Price and the number and type of Option Shares subject, in each case, to compliance with the Plan and applicable law. 
 9.
Transferability. The Option is personal to Optionee and is not transferable by Optionee other than (1) by will or the laws of descent and distribution; (2) by gift or other transfer to Optionee’s spouse or other
immediate relative or to any trust or estate in which Optionee or Optionee’s spouse or other immediate relative has a substantial beneficial interest, provided that (a) such transfer is permitted by Rule 16b-3 of the Exchange Act as
in effect when such transfer occurs, and (b) there is a Plan provision permitting such transfer in full force and effect with respect to such transfer when such transfer occurs; or (3) pursuant to a qualified domestic relations order (as
defined by the Code). Any transfer of the Option or Option Shares in violation of this Agreement is void from inception. 
 10. Registration.
The Company is not obligated to issue any shares of Common Stock upon Option exercise unless (1) such shares have been registered under the Securities Act or an exemption from such registration is available and otherwise deemed appropriate
by the Committee for such issuance; and (2) such issuance is in compliance with applicable law and regulations and the requirements of any stock exchange, quotation service or similar agency on which the Common Stock may then be listed or
quoted (such law, regulations and requirements being collectively referred to herein as “Requirements”). The Company has no obligation to so register shares of Common Stock or to so comply with Requirements. 
 11. Remedies. Each party is entitled to enforce its rights under this Agreement and to recover damages for breach. The parties agree that money damages may
not always be an adequate remedy for breach, and in such event the wronged party may, in its sole discretion, request specific performance and/or injunctive relief (without posting bond or other security) from any court of competent jurisdiction to
enforce or prevent any breach of this Agreement. 
 12. Miscellaneous. This Agreement is not an offer and is effective only when fully signed.
All required notices must be in writing and are deemed given upon delivery if sent with return 

  

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receipt via a reputable delivery service. Deadline times herein refer to California, USA Pacific Standard Time. No failure or delay to enforce a provision
will be deemed a waiver thereof. The invalidity of any provision will not affect the validity of any other provision. Descriptive headings are intended as a convenience and not as operative text. This Agreement is governed by Delaware, USA law with
respect to matters of corporate law and governance and by the internal law of South Dakota, USA in all other respects. This Agreement may be signed in counterparts, is the entire and exclusive set of terms and conditions for transactions made under
it and binds and benefits the permitted successors and assigns of all parties. This Agreement may only be modified by a writing signed by all parties, unless the modification only enhances Optionee’s rights, in which case it can become
effective with only the Company’s signature. 
 13. Optionee Acknowledgment. Optionee agrees, represents and acknowledges that
(1) Optionee’s exercise of the Option and purchase of Option Shares will be for Optionee’s own account or for the account of transferees permitted under Section 9 and not on behalf of any others; (2) certain laws govern and
restrict Optionee’s right to offer, sell or otherwise dispose of any Option Shares, unless an exemption from such laws is available and otherwise deemed appropriate by the Committee; (3) Optionee will not offer, sell or otherwise dispose
of any Option Shares in any way which would cause Optionee or any Gateway Company to violate any Requirement or require any Gateway Company to register such disposition under any Requirement; (4) Optionee may be required upon Option exercise or
upon subsequent transfer of Option Shares to furnish representations and undertakings deemed appropriate by the Committee for compliance with Requirements; (5) certificates evidencing Option Shares will bear such legends, if any, deemed
appropriate by the Committee for compliance with Requirements; (6) Optionee will not offer, sell or otherwise dispose of any Option Shares in violation of any policy of a Gateway Company; (7) the Option is not intended to be an
“incentive stock option” within the meaning of Section 422 of the Code; (8) nothing in this Agreement prevents Optionee’s removal or change in compensation as an employee and/or director of the Company in accordance with the
Company’s Certificate of Incorporation or Bylaws or with applicable law; (9) Optionee only has rights as a stockholder of Option Shares if and to the extent that Optionee exercises the Option and retains ownership of Option Shares; and
(10) Optionee will be bound by the provisions of this Agreement and the Plan as of the Grant Date. 
 The parties, or their respective, authorized
representatives, have signed this Agreement on the dates shown below: 
  

									
	OPTIONEE	 		 	GATEWAY, INC.
					
	Signed:	 	/s/ Richard D. Snyder	 		 	Signed:	 	/s/ John P. Goldsberry
		 	Richard D. Snyder	 		 		 	John P. Goldsberry
		 	April 26, 2006	 		 		 	Chief Financial Officer
		 		 		 		 	April 26, 2006

  

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