Document:

EXHIBIT 10.15

	

EMPLOYMENT
AGREEMENT

     This
Employment Agreement (“Agreement”) by and between Gateway, Inc., a Delaware corporation
(the “Company”), and Susan B. Parks (the “Executive”) is made as of August 1, 2000. 

     1.
Employment Period; Coordination with Change of Control Compensation Agreement. 

	 	     (a)
The Company hereby agrees to employ the Executive, and the Executive hereby accepts such
employment, pursuant to the terms and conditions set forth in this Agreement, for a
period commencing August 1, 2000 (the “Commencement Date”) and ending July 31,
2004, unless terminated earlier as provided herein (the “Initial Employment Period”),
provided that the Initial Employment Period shall be automatically extended for
successive one (1) year periods (“Additional Periods”) unless terminated
earlier as provided herein or a party gives written notice to the other party of
non-extension at least ninety (90) days prior to the end of the Initial Employment Period
or the then Additional Period. A notice of non-extension by the Company shall be deemed a
Termination without Cause as of the end of the then Initial Employment Period or
Additional Period or such earlier date after notice as the Executive shall elect. The
period of Executive’s actual employment hereunder after the Commencement Date shall
be referred to herein as the “Employment Period.” 

	 	     (b)
On or about the date hereof, Executive and the Company have entered or will enter into a
Change of Control Compensation Agreement substantially in the form attached hereto as
Exhibit “A”  (the “Change of Control Agreement”). This Agreement and
the Change of Control Agreement shall each remain in effect in accordance with their
respective terms, provided, however, that: 

	 	     (i)
If a Change of Control (as defined in the Change of Control Agreement) shall occur during
the Employment Period and at a time when the Change of Control Agreement is in effect,
then, (A) during the remaining Term (as defined therein) of the Change of Control
Agreement, the terms “Cause”  and “Good Reason”  and “Disability”  as
used in this Agreement shall have the meanings assigned to such terms in the Change of
Control Agreement, (B) Sections 6(a) and 6(c) of this Agreement and the third and fourth
sentences of Section 5(b) of this Agreement shall not apply to any termination of
Executive’s employment occurring during the remaining Term of the Change of Control
Agreement, and (C) the second sentence of Section 6(b) of this Agreement shall not apply
to options and other equity awards to which Section 6.1 (C) of the change of Control
Agreement applies; and 

	 	     (ii)
If a Pre-Change of Control Entitlement Event (as defined in the Change of Control
Agreement) shall occur during the Employment Period and at a time when the Change of
Control is in effect, then (A) Executive shall not be entitled to benefits under Section
6(a) of this Agreement, (B) Sections 5(b) and Section 6(b) of this Agreement shall be of
no force or effect (it being understood and agreed that any termination of Executive’s
employment that would qualify as both a Pre-Change of Control Entitlement Event (for
purposes of the Change of Control Agreement) and a termination of Executive’s
employment for “Cause”  or without “Good Reason”  (each as defined in
this Agreement) shall be treated solely as a Pre-Change of Control Entitlement Event) and
(C) Executive shall be entitled to receive Accrued Amounts (as defined in Section 6(d) of
this Agreement). 

	

     2.
Position and Duties. 

	 	     (a)
During the Employment Period, the Executive shall be employed as Senior Vice President,
Business.

	 	     (b)
The Executive shall devote her full business time, attention and best efforts to her
duties and responsibilities hereunder and shall comply with the Company’s written
rules and policies including, without limitation, the Company’s Code of Ethics and
Non-Harassment policy. It shall not be a violation of this Section for the Executive to
(i) manage her personal investments, (ii) be involved in charitable, civic and
professional activities, (iii) serve on for profit corporate or corporate advisory
boards or committees approved by the President and Chief Executive Officer, or (iv) deliver
lectures or fulfill speaking engagements, provided that the activities referred to in
subparts (i) through (iv) do not interfere with the performance of the Executive’s
responsibilities as an employee of the Company or violate the Company’s written
rules and policies. In the event the President and Chief Executive Officer of the Company
notifies Executive in writing that any such activity presents a conflict, or an
appearance of a conflict, of interest with the Company, or violates the Company’s
written rules and policies, the Executive shall cease the activity as soon as reasonably
practicable. 

	

     3.
Salary, Bonus and Benefits. 

	 	     (a)
Base Salary and Sign On Bonus. During the Employment Period, the Executive shall
receive an annual base salary of at least $425,000 (as increased from time to time, “Annual
Base Salary”), payable pursuant to the Company’s normal payroll practices.
Executive shall be paid a sign on bonus of $200,000 (less applicable payroll deductions),
which bonus shall be repayable should Executive leave Gateway (either voluntarily or
involuntarily) prior to her one-year anniversary date. 

	 	     (b)
Annual Bonus. During the Employment Period, the Executive’s annual target
bonus shall be equal to 65% of the Executive’s Annual Base Salary (the “Target
Bonus”) and shall be increased or reduced in accordance with the pay-out formula if
established target performance goals are exceeded or not met. The target performance
goals shall be established by the Compensation Committee of the Board (the Compensation
Committee) at the beginning of each calendar year if pursuant to a plan subject to
Section 162(m) of the Internal Revenue Code, or otherwise by the Company. 

	 	     (c)
Benefits. The Executive shall be treated in the same manner as, and shall be
entitled to such benefits and other perquisites as provided to, other senior executive
officers (“Senior Executive Officers”) of the Company. In this regard, the
Executive shall be entitled to benefits under the Company’s vacation, benefit and
welfare plans which are generally applicable to other Senior Executive Officers
including, without limitation, the Company’s relocation plan, the Company’s
stock option plan, the retirement savings plan, and the short-term and long-term
disability plans. 

	

2

	

     4.
Stock Options. 

	 	     (a)
Initial Option Grant. Executive shall be given an initial option grant (“Initial
Options”) to purchase 300,000 shares of Gateway common stock pursuant to the terms of the
Gateway, Inc. 2000 Equity Incentive Plan (“2000 Plan”) and the related stock option
agreement.

	 	     (b)
Recurring Options. Commencing in calendar year 2000 and thereafter in each
calendar year during the Employment Period, the Executive will be eligible for option
grants in accordance with the provisions of the Company’s stock incentive plan(s)
then in effect. All stock option grants under Section 4(b) of this Agreement will be
granted under, and subject to, such plans. 

	

     5.
Termination of Employment. 

	 	     (a)
Termination without Cause and Termination with Cause. The Company may terminate
the Executive’s employment during the Employment Period without Cause or with Cause.
For purposes of this Agreement, Termination without Cause shall mean any termination by
the Company during the Employment Period other than for Cause or as a result of death,
retirement, or Disability. Except as provided in Section 1(b) above, Termination for
Cause shall mean termination resulting from, as determined in the Company’s sole
discretion, the Executive’s (i) conviction (including a plea of guilty or nolo
contendere) of any felony of any kind (other than Limited Vicarious Liability or a
routine traffic infraction) or any other crime (whether it is a felony or not) involving
securities fraud, theft of assets of the Company, or falsification of the Company’s
books or records; (ii) material breach of the agreement signed by Executive as a
condition of employment (attached hereto as Exhibit “B” and made a part hereof) which
breach is not cured within twenty (20) days of written notice thereof; (iii) willful
misconduct with regard to the Company; or neglect or dereliction of duty resulting in
either case in economic harm to the Company or damage to the Company’s name or
reputation; (iv) failure to follow or in good faith attempt to follow failure to
follow or in good faith attempt to follow the reasonable lawful direction of the
President and Chief Executive Officer or Vice Chairman or the person to whom the
Executive directly reports; or (v) failure to comply with the Company’s Code of
Ethics or other policies including, without limitation, the Company’s Non-Harassment
policy. Limited Vicarious Liability, as used above, shall mean any liability which is based
on acts of the Company (x) for which the Executive is charged solely as a result of his
offices with the Company, (y) in which he was not directly or indirectly involved,
and (z) with respect to which he had no prior knowledge or reasonable belief that a law
was being violated. 

	 	     (b)
Good Reason. The Executive may terminate employment for Good Reason, which is
referred to herein as a Termination for Good Reason. Except as provided in Section 1(b)
above, Good Reason means: (i) a diminution in Executive’s title; provided,
however, that it shall not be deemed a diminution in Executive’s title where
Executive continues to carry the title Senior Vice President, (ii) the assignment of
duties to the Executive that are materially and adversely inconsistent with the Executive’s
position as Senior Vice President, (iii) any material diminution in Executive’s
authority or responsibility, or (iv) any material breach by the Company of this
Agreement. If the Executive determines that Good Reason exists, the Executive must notify
the Company in writing, within 180 days following the Executive’s knowledge of the
first event which the Executive determines constitutes Good Reason, or such event shall
not constitute Good Reason under this Agreement. If the Company remedies such event
within sixty (60) days following receipt of notice, the Executive may not terminate
employment for Good Reason as a result of such event. 

	

3

	

	 	     (c)
Death, Retirement, or Disability. The Executive’s employment shall terminate
automatically upon the Executive’s death or retirement during the Employment Period.
Except as provided in Section 1(b) above, the Executive’s employment under this
Agreement shall terminate for “Disability” where the Executive has been unable
to render the material services required by his position as a result of physical or
mental incapacity (as determined by the Company’s disability insurance carrier) for
a period of 180 consecutive days and the Company has notified the Executive of such
termination while he is so disabled. The parties agree that exceeding such a period would
constitute an undue hardship for the Company under Federal and state law including,
without limitation, the Americans with Disabilities Act and the California Fair
Employment and Housing Act. 

	 	     (d)
Termination without Good Reason. The Executive may terminate her employment with
the Company without Good Reason at any time. Any such termination is referred to herein
as a Termination without Good Reason. Notice of non-extension by the Executive under
Section 1 above shall be deemed a Termination without Good Reason as of the end of the
Employment Period. 

	 	     (e)
Notice of Termination. Any termination of the Executive’s employment by the
Company or by the Executive shall be communicated by Notice of Termination to the other
party. For purposes of this Agreement, a “Notice of Termination”  means a written
notice which indicates the specific termination provision in this Agreement relied upon
and to the extent practicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated. 

	

     6.
Payment Obligations of the Company upon Termination. 

	 	     (a)
Termination without Cause; Termination for Good Reason. Upon (i) Termination
without Cause or (ii) Termination for Good Reason during the Employment Period, and
in either case subject to and conditioned on Executive’s timely execution and
non-revocation of a Separation Agreement and General Release of claims against the
Company and its subsidiaries and affiliates in a form satisfactory to the Company, the
Company shall pay the Executive an amount equal to two (2) times the sum of (x) the
Executive’s then current Annual Base Salary plus (y) the Executive’s then
current annual Target Bonus. The amount will be paid in a single lump sum payment within
twenty (20) days after the date of termination. Any Company stock options or other
equity, if any, held by the Executive as of the date of termination will be handled in
accordance with Section 4 of this Agreement and the applicable plan and grants. In
addition, the Executive will be entitled to Accrued Amounts, as defined in Section 6(d)
below. 

	 	     (b)
Termination for Cause or without Good Reason. If the Executive’s employment
is terminated by the Company for Cause or by the Executive without Good Reason during the
Employment Period, the Company will pay to the Executive the Executive’s Annual Base
Salary through the date of termination, to the extent not yet paid, and the Company shall
have no further obligations under this Agreement. In addition, all outstanding Company
stock options and other equity awards, if any, will be handled in accordance with Section 4
of this Agreement and the applicable plan and grants. In addition, the Executive will
also be entitled to other Accrued Amounts. 

	 	     (c)
Death, Retirement, or Disability. If the Executive’s employment is terminated
by reason of the Executive’s death, retirement, or disability during the Employment
Period, the Company will pay the Executive (or the Executive’s heirs or
representatives, if applicable) the Executive’s Annual Base Salary through the date
of termination, to the extent not yet paid and other Accrued Amounts, plus a pro-rated
amount of Executive’s Target Bonus. In addition, any Company stock options or other
equity, if any, held by the Executive as of the date of termination will be handled in
accordance with Section 4 of this Agreement and the applicable plans and grants. 

	

4

	

	 	     (d)
Accrued Amounts. Accrued Amounts shall mean Annual Base Salary and expense reimbursements
due for the period prior to any termination.

	

     7.
Excise Tax.The provisions of Annex B to the Change of Control Agreement are
incorporated herein by reference and shall survive the termination of the Change of
Control Agreement. 

     8.
Successors. 

	 	     (a)
This Agreement is personal to the Executive and shall not be assignable by the Executive
except by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s heirs or legal representatives.
Notwithstanding the foregoing, any amounts that become payable hereunder pursuant to
Section 6, shall be payable to Executive’s estate if not paid prior to the
Executive’s death. 

	 	     (b)
This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns, provided that the Company may not assign this Agreement except in
connection with the assignment or disposition of all or substantially all of the assets
or stock of the Company or by law as a result of a merger or consolidation and only if
such assignee promptly delivers to Executive a written assumption of this Agreement in
form and substance reasonably acceptable to Executive. 

	

     9.
Miscellaneous. 

	 	     (a)
This Agreement shall be governed, by, and construed in accordance with, the laws of the
State of California, without reference to its conflict of law rules. The captions of this
Agreement are not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified except by a written agreement executed by the
parties hereto or their respective successors and legal representatives. 

	 	     (b)
All notices and other communications under this Agreement shall be in writing and shall
be given by hand delivery to the other party or by registered or certified mail, return
receipt requested, postage prepaid, addressed as follows: 

	 	
                  If to the Executive

                  Susan B. Parks

                  5 Burning Tree

                  Laguna Niguel, CA 92677

                  If  to the Company

                  Gateway, Inc.

                  4545 Towne Centre Court

                  San Diego, CA 92121

                  Attn: General Counsel

	

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or to such other address as either
party furnishes to the other in writing in accordance with this Section 9(b). Notices and
communications shall be effective when actually received by the addressee.  

	 	     (c)
The invalidity or unenforceability of any provision of this Agreement shall not affect
the validity or enforceability of any other provision of this Agreement. If any provision
of this Agreement shall be held invalid or unenforceable in part, the remaining portion
of such provision, together with all other provisions of this Agreement, shall remain
valid and enforceable and continue in full force and effect to the fullest extent
consistent with law. 

	 	     (d)
Notwithstanding any other provision of this Agreement, the Company may withhold from
amounts payable under this Agreement all federal, state, local and foreign taxes that are
required to be withheld by applicable laws or regulations. 

	 	     (e)
The Executive’s or the company’s failure to insist upon strict compliance with
any provision of, or to assert any right under, this Agreement shall not be deemed to be
a waiver of such provision or right or of any other provision of or right under this
Agreement. 

	 	     (f)
Except as provided herein, the Executive and the Company acknowledge that this Agreement
constitutes the entire agreement between the parties and supersedes any prior agreement
between the Executive and the Company concerning the subject matter hereof. Except as
provided herein, the Executive shall not be entitled to participate in any severance
plans or severance programs of the Company during the Employment Period. 

	 	     (g)
The Company shall indemnify Executive with respect to claims (both during and after
employment) relating to Executive’s service as an employee and officer of the
Company and its affiliates and as a fiduciary of any benefit plan of any of the foregoing
to the full extent permitted by applicable law and the Company shall cover the Executive
under the Company’s Directors and Officers indemnification insurance policy (as in
effect from time to time) both during and after employment with regard to actions or
inactions in such capacities. 

	 	     (h)
The prevailing party in any litigation with regard to this Agreement or the grants
hereunder, as determined by the Court, shall be awarded by the Court his or its
reasonable legal fees and disbursements. 

	 	     (i)
This Agreement may be executed in several counterparts, each of which shall be deemed an
original, and said counterparts shall constitute but one and the same instrument. 

	

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     IN
WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand
and, pursuant to the authorization of its Board of Directors, the Company has
caused this Agreement to be executed in its name on its behalf, all as of the
day and year first above written. 

			COMPANY

By:

——————————————

Title:

——————————————

Date:

——————————————

Susan B. Parks

Date:

——————————————

	

7EXHIBIT 10.16

	

AGREEMENT AND
GENERAL RELEASE 

     This
AGREEMENT AND GENERAL RELEASE (“Agreement”) is made and entered into
by and between Susan B. Parks (hereinafter “Employee”) and Gateway,
Inc., a corporation having its principal office at 14303 Gateway Place, Poway,
CA, including its subsidiaries (“Gateway” or “Company”). 

WITNESSETH: 

     WHEREAS,
Employee is currently employed as Senior Vice President, U.S. Markets; and 

     WHEREAS,
the Company and Employee have mutually agreed to sever the employment relationship; and 

     WHEREAS,
the Company has advised Employee that Employee’s off payroll date will be
11:59 PM PST on December 31, 2001 (“Separation Date”); and 

     WHEREAS,
this Agreement is being provided in connection with the requirement of Section 6
of Employee’s Employment Agreement (“Employment Agreement”); and 

     WHEREAS,
Employee understands that, pursuant to Section 6 of the Employment Agreement,
her execution and non-revocation of this Agreement constitutes a condition
precedent to the Company’s obligations under Section 6 of the Employment
Agreement; and 

     WHEREAS,
Employee and the Company desire to settle fully all employment relationship
matters between them including, but not limited to, any differences that might
have arisen out of Employee’s employment with the Company and the
termination thereof; 

     NOW,
THEREFORE, in consideration of the premises and mutual promises contained
herein, it is agreed as follows: 

	

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     1.
Employee understands that her employment with the Company will cease on her
Separation Date (which shall be 11:59 PM PST on December 31, 2001) and that,
provided she signs and does not revoke this Agreement, Employee will be provided
with the following: 

     (a)
She will be paid the amount specified in, and in accordance with, Section 6(a)
of her Employment Agreement (the “Payment”), which sum shall be
$1,485,000. The Payment shall be made within ten (10) following her Separation
Date. Employee also shall remain entitled to any deferred compensation and 401-K
plan amounts in accordance with her elections on file with the Company and the
terms and conditions of each applicable plan. Employee will be paid for all
accrued and unused PTO days and all accrued salary as of her Separation Date.
Between November 20, 2001 and Employee’s Separation Date, Employee will not
be required to report to her regular work location unless requested to do so by
the Company. In addition, such time shall be considered as work time and not
PTO. Employee will not be entitled to, and expressly waives and gives up any
right, title, or interest in, any bonus payment for calendar year 2001
under the Management Incentive Plan [or any replacement plan] or any other
bonus or incentive plan (including, without limitation, any holiday bonus)
applicable to Senior Vice Presidents or other Company employees. 

     (b)
The parties agree that, subject to approval by the Compensation Committee of the
Gateway, Inc. Board of Directors (i) any Gateway stock options or other equity
instruments, if any, held by Employee as of her Separation Date will be
accelerated and vested as of the Separation Date and (ii) Employee will have
until the close of trading on the New York Stock Exchange on the first
anniversary date of her Separation Date to exercise any stock options that were
vested as of her Separation Date. All Gateway stock options will be handled in
accordance with the applicable stock option plans and individual Option
Agreements including, without limitation, any applicable black out period. 

	

-3-

     If
Employee dies after executing this Agreement, but before her Separation Date,
this Agreement will remain in full force and effect. 

     (c)
Employee will be provided with Executive Outplacement through the firm of Drake
Beam Morin at such geographic location within the continental United States as
Employee may elect. 

     (d)
Employee will be provided with a letter of reference signed by Ted Waitt, a copy
of which is attached as Exhibit “A”, and any reference by the
Company will be consistent therewith. 

     (e)
The Company will pay Employee’s and her dependent’s COBRA costs for a
period of twelve (12) months following her Separation Date or up to the date on
which Employee secures health care coverage from another employer of her,
whichever occurs first. Employee agrees to notify the Company in writing of the
date on which she commences health care coverage from any new employer of her. 

     (f)
Employee will continue to receive financial planning through the date on which
she commences employment with another employer, but in no event later than
December 31, 2002 . Employee will notify the Company in writing of the date on
which she commences employment with another employer. The Company also will pay
for Employee’s state and federal income tax return preparation for calendar
year 2001. 

     (g)
Employee will continue to receive relocation benefits through her Separation
Date. To the extent applicable, relocation payments will be grossed-up for tax
purposes in accordance with the terms and conditions of the Company’s
current relocation policy. 

     (h)
The Company will pay Employee’s attorneys’ fees in connection with the
negotiation of this Agreement up to a maximum amount of $3000. 

     All
payments under Sections 1(a) through (f) of this Agreement will be less legally
required payroll deductions. 

	

-4- 

     2.
The parties agree that through Employee’s Separation Date, Employee will,
among other things that Senior Management may reasonably request in connection
with Company business, (a) use her reasonable best efforts to assist in
effectuating a smooth transition of her projects, assignments and
responsibilities and (b) provide ongoing strategic and other advice and
assistance as Gateway Senior Management may determine, in its sole discretion,
to be necessary. 

     The
parties further agree that at all times following her Separation Date, Employee
will cooperate fully with the Company in providing truthful testimony as a
witness or a declarant in connection with any present or future court,
administrative, governmental agency or arbitration proceeding involving the
Company with respect to which the Employee has relevant information arising out
of her employment with the Company. Employee also will assist the Company during
the discovery phase (or prior thereto) of any judicial, administrative,
arbitration, or governmental agency proceeding involving the Company and with
respect to which the Employee has relevant information arising out of her
employment with the Company including, without limitation, meeting with counsel,
assisting and cooperating in the preparation and review of documents, and
meeting with other Company representatives. The parties agree that such
cooperation and assistance shall, to the extent practicable (giving due regard
to the needs of the Company and the requirements of Employee’s then current
work obligations), be at times and places that are mutually convenient to both
the Employee and the Company. If the parties cannot agree on mutually convenient
times and places, the Company will provide the Employee with a choice of three
acceptable dates in different weeks and places and Employee will select one of
the three. The parties agree that this procedure shall apply anytime the Company
and Employee cannot agree on a mutually convenient time and place to meet. The
Company agrees that it will pay, upon production of appropriate receipts, the
reasonable business expenses (including air transportation, hotel, and similar
expenses) incurred by Employee in connection with such assistance. Employee
represents that she is not presently aware of any conflict of interest between
herself and Gateway in connection with any pending litigation or investigations
that may give rise to a question regarding the possible need for independent
counsel with respect to the defense of such matters. 

	

-5- 

     Employee
agrees to sign, if requested by the Company, forms of resignation from any
offices which she holds in the Company. 

     The
Company represents that Employee is covered by Gateway’s Directors and
Officers liability insurance policy and officer indemnification provisions of
the Company’s by-laws and that Employee shall continue to be entitled to
indemnification and such coverage after her Separation Date in accordance with
the terms and conditions of the policy and provisions of the Company’s
by-laws relating to indemnification of officers. 

     3.
Employee agrees that she will submit all vouchers for reasonable business
expenses prior to her Separation Date or as soon thereafter as is practicable.
Employee agrees that all expense reimbursement requests will be accompanied by
receipts satisfactory to the Company in accordance with current policy. 

     4.
In accordance with her existing and continuing obligations to the Company,
Employee agrees to return to the Company, on or before her Separation Date, all
Company property or copies thereof, including, but not limited to, files,
records, computer access codes, computer programs, keys, card key passes,
instruction manuals, documents, business plans, computers of any kind (except
her Gateway PC which she shall be permitted to retain provided she first permits
Gateway personnel to remove any Gateway information from the hard-drive and any
floppy disks), software, and other property (except for Employee’s Company
provided mobile telephone, facsimile machine, Blackberry, and printer which
Employee shall be permitted to retain), which she received or prepared or helped
to prepare in connection with her employment with the Company (collectively
“Company Property”). Employee further agrees that this Agreement
constitutes an assignment to the Company of all right, title and interest in
such Company Property, and any other inventions, discoveries or, to the extent
she owns the rights, works of authorship created by Employee during the course
of her employment. 

	

-6- 

     5.
Employee affirms her obligation not to personally use or disclose Gateway
Confidential Information to any third party, except pursuant to legal process
(provided that in the case of legal process Employee first notifies Gateway in
advance of any disclosure such that Gateway has an opportunity to oppose
disclosure). As used in this Agreement, the term “Confidential
Information” means all information including, but not limited to, technical
or non-technical data, formulas, computer programs, devices, methods,
techniques, drawings, processes, methods of manufacture, financial data,
personnel data, customer specific information, production and sales information,
supplier specific information, cost information, and marketing plans and
strategies, which is (a) disclosed to or known by Employee as a consequence of
or through his employment with Gateway and (b) not generally known to persons,
corporations, organizations or others outside of Gateway. The parties agree that
inventions or discoveries by Employee during or following the Agreement Period
will not be considered Gateway Confidential Information or Gateway property,
except where such inventions or discoveries are based, directly or indirectly
and in whole or in part, on Gateway Confidential Information as defined in this
Paragraph 5. 

     6.
Employee agrees to keep this Agreement confidential and not to disclose its
contents to anyone except her lawyer, her immediate family, her health care
professional, her financial consultant, her tax advisor or a prospective
employer (and then only after informing such individuals that said information
is confidential and should not be disclosed to others), or pursuant to legal
process (provided that Employee first notifies Gateway of the legal process in
advance of any disclosure such that Gateway has an opportunity to oppose
disclosure). The prohibition against disclosure provided for in this Paragraph 6
shall not apply to the extent that Gateway has itself disclosed the Agreement or
any term in the Agreement, but only to the extent of the specific disclosure. 

	

-7- 

     7.
Employee agrees that she will not in any public forum (i.e., lectures, to the
media, in published articles, to analysts, or in comparable public forums) or,
with intent to damage the Company or its directors, officers or employees, in
private conversations (i.e., social settings, etc.) criticize, disparage,
denigrate, or speak adversely of, or disclose negative information about, the
operations, management, or performance of the Company or about any director,
officer, employee or agent of the Company. The intent of this Paragraph 7 is to
ensure that Employee does not say or do anything that damages or impairs, or
might damage or impair, in any way the business organization, goodwill, or
reputation of the Company or any of its directors, officers, employees or
agents. 

     On
its part, the Company agrees that neither it officially nor the Chief Executive
Officer nor any Senior Vice President of the Company, in such position on
November 5, 2001, will disparage or defame, or encourage others to disparage or
defame, Employee to any third party; provided, however, that nothing in this
Paragraph will prohibit them from discussing Employee among themselves, with
outside counsel or financial advisors, or with other Gateway officers or
employees in connection with Gateway business matters. 

     8.
Employee agrees that for a period of one (1) year following her Separation Date,
she will not personally, either directly or indirectly (including on behalf of
herself or on behalf of any entity with which Employee is or becomes
affiliated), (i) solicit (or otherwise interfere with Gateway’s business
relationships with) any of Gateway’s business customers with respect to the
sale of personal computers, computer related peripherals, digital information
appliances including, without limitation, or hand held personal digital
assistance devices; (ii) recruit, solicit, induce or attempt to induce, or
encourage others to recruit, solicit or induce, any employee of Gateway to
terminate their employment with, or otherwise cease their relationship with
Gateway; or (iii) hire any then current employee of Gateway. Nothing contained
in this Section 8 shall prevent Employee from providing a reference to or on
behalf of a Gateway employee, provided that such employee is not being hired by
Employee’s employer. 

	

-8- 

     9.
Employee understands and agrees that a material violation of Paragraphs 2, 4, 5,
7, or 8 of this Agreement will be considered a material breach of this
Agreement. Employee acknowledges and agrees that irreparable harm would result
from any material breach by Employee of the covenants contained in Paragraphs 2,
4, 5, 7, or 8 of this Agreement and that monetary damages alone would not
provide adequate relief for any such breach. Accordingly, the parties agree that
injunctive relief in favor of Gateway would be proper. Employee further agrees,
in addition to any other relief that may be directed by a court of competent
jurisdiction and upon a finding of a material breach, to promptly return to
Gateway $500,000, representing a portion of the total consideration received
under Section 1 of this Agreement.. 

     10.
Employee acknowledges that there are various state, local and federal laws that
prohibit, among other things, employment discrimination on the basis of age,
sex, race, color, national origin, religion, disability, sexual orientation or
veteran status and that these laws are enforced through the Equal Employment
Opportunity Commission, Department of Labor and State or Local Human Rights
agencies. Such laws include, without limitation, Title VII of the Civil Rights
Act of 1964; the Age Discrimination in Employment Act (“ADEA”); the
Older Workers Benefit Protection Act; the Americans with Disabilities Act
(“ADA”); the Employee Retirement Income Security Act
(“ERISA”); the Workers Adjustment and Retraining Notification Act
(“WARN”); 42 U.S.C. Section 1981; the California Fair Employment and
Housing Act, etc., as each may have been amended, and other state and local
human or civil rights laws as well as other statutes which regulate employment;
and the common law of contracts and torts. Employee hereby waives and releases
any rights she may have under these or any other laws with respect to his
employment and termination of employment at the Company and acknowledges that
the Company has not (a) discriminated against her, including on the basis
of age, (b) breached any contract with her, (c) committed any civil
wrong (tort) against her, or (d) otherwise acted unlawfully toward her. 

	

-9- 

     Employee
also waives any right to become, and promises not to consent to become, a member
of any class in a case in which claims are asserted against any Releasee (as
defined in Paragraph 11 hereof) that are related in any way to his employment or
the termination of her employment with Gateway, and that involve events which
have occurred as of the date of this Agreement (defined to mean the date on
which Employee signs this Agreement). If Employee, without her prior knowledge
and consent, is made a member of a class in any proceeding, she will opt out of
the class at the first opportunity afforded to her after learning of her
inclusion. In this regard, Employee agrees that she will execute, without
objection or delay, an “opt-out” form presented to her either by the
court in which such proceeding is pending or by counsel for any Releasee who is
made a defendant in any such proceeding. 

     11.
Employee, on behalf of herself and her heirs, executors, administrators,
successors and assigns, hereby unconditionally releases and discharges Gateway,
and its subsidiaries, successors, assigns, affiliates, shareholders, directors,
officers, representatives, agents and employees as well as any benefit plan and
its fiduciaries and insurors (collectively “Releasees” and
individually “Releasee”) from all known and unknown claims (including
claims for attorneys’ fees and costs), charges, actions and causes of
action, demands, damages, and liabilities of any kind or character, in law or
equity, suspected or unsuspected, past or present, that she ever had, may now
have, or may later assert against any Releasee, arising out of or related to her
employment with Gateway. To the fullest extent permitted by law, this release
includes, but is not limited to: (a) claims arising under the ADEA, the
Older Workers Benefit Protection Act, the WARN Act, the ERISA, the Family and
Medical Leave Act of 1993, the ADA, the California Fair Employment and Housing
Act, and any other federal, state, or local law prohibiting age, race, color,
gender, creed, religion, sexual preference/orientation, marital status, national
origin, mental or physical disability, veteran status, or any other form of
unlawful discrimination or claim with respect to or arising out of
Employee’s employment with or termination from Gateway; (b) claims
(whether based on common law or otherwise) arising out of or related to any
contract (whether express or implied); (c) claims under any federal, state
or local constitutions, statutes, rules or regulations; (d) claims (whether
based on common law or otherwise) arising out of any kind of tortious conduct
(whether intentional or otherwise) including but not limited to, wrongful
termination, defamation, violation of public policy; and (e) claims
included in, related to, or which could have been included in any presently
pending federal, state or local lawsuit filed by Employee or on her behalf
against any Releasee, which Employee agrees to immediately dismiss with
prejudice. 

	

-10- 

(For employees working in
California) Section 1542 of the Civil Code of the State of California states:  

	 	
“A
general release does not extend to claims which the creditor does not know or suspect to
exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.”

	

     Notwithstanding
the provisions of Section 1542, and for the purpose of implementing a full and
complete release and discharge of all Releasees with respect to claims in
California as well as all other jurisdictions, Employee expressly acknowledges
that this Release is intended to include not only claims that are known,
anticipated or disclosed, but also claims that are unknown, unanticipated and
undisclosed. 

     This
Paragraph 11 shall not serve as a release of rights under or preclude Employee
from filing suit to enforce the provisions of this Agreement, including her
right to indemnification under (i) the Company’s Directors and Officers
liability insurance policy and (ii) the Company’s by-laws. 

	

-11- 

     12.
Except as provided in Section 11, Employee agrees not to bring any action, suit
or administrative proceeding contesting the validity of this Agreement or
attempting to negate, modify or reform it, nor to sue any Releasee for any
reason arising out of her employment. If Employee breaches either Paragraph 11
or 12 hereof, Employee shall (i) promptly return to Gateway all
consideration received hereunder (meaning the amount and/or benefits referred to
in Section 1 of this Agreement), except for $25,000; and (ii) pay any
Releasee all of their reasonable attorneys’ fees and costs incurred in each
such action, suit or other proceeding, including any and all appeals or
petitions therefrom, provided Gateway is the successful party. Employee agrees
to pay such fees and costs within thirty (30) days of final award. With respect
to this Paragraph 12, if Employee is the successful party, Gateway will pay
Employee his reasonable attorneys’ fees and costs incurred in such action,
suit, or other proceeding, including all appeals or petitions therefrom. This
Paragraph 12 is not intended to limit Employee from instituting legal action for
the sole purpose of enforcing this Agreement or from filing a charge with, or
participating in an investigation conducted by, the Equal Employment Opportunity
Commission; provided however, that employee expressly waives and relinquishes
any rights she might have to recover damages or other relief, whether equitable
or legal, in any such proceeding concerning events or actions that arose on or
before the date Employee signed this Agreement. This Paragraph 12 is also not
intended to apply to any action brought solely under the ADEA, as amended,
including any action contesting the validity of this Agreement or attempting to
negate, modify, or reform it, except insofar as application of this
Paragraph 12 to the ADEA action would not violate federal law. 

     13.
In the event that any one or more of the provisions contained herein is for any
reason held to be unenforceable in any respect under the law of any state or of
the United States of America, such unenforceability will not affect any other
provision of this Agreement, but, with respect only to the jurisdiction holding
the provision to be unenforceable, this Agreement will then be construed as if
such unenforceable provision or provisions had never been contained herein. 

	

-12- 

     14.
The construction, interpretation and performance of this Agreement will be
governed by the laws of the State of Delaware, without regard to its conflict of
laws rule. In the event a court of competent jurisdiction declines to apply
Delaware law, despite the parties election of Delaware law, the parties agree
that the law of the state in which the Employee is working on his Separation
Date shall control, without regard to its conflict of laws rule. 

     15.
This Agreement contains the entire agreement between the Company and Employee
and fully supersedes all prior agreements or understandings pertaining to the
subject matter hereof, except for Sections 6 and 7 of the Non-Compete,
Non-Disclosure and Intellectual Property agreement (“Non-Compete”)
which Employee signed at the time of hire and which sections the parties agree
shall remain in full force and effect except with respect to the last sentence
of Section 6 which the parties agree shall be amended to delete the words
“or within one (1) year of your termination of employment”. Employee
represents and acknowledges that in executing this Agreement she has not relied
upon any representation or statement not set forth herein made by any of the
Releasees or by any of the Releasee’s agents, representatives or attorneys
with regard to the subject matter of this Agreement. 

     16.
Employee understands that, pursuant to the Older Workers Benefit Protection Act,
she has the right to (and should) consult with an attorney before signing this
Agreement, she has twenty-one (21) days to consider the Agreement before signing
it and she may revoke the Agreement within seven (7) calendar days after signing
it. Revocation can be made by delivering a written notice of revocation to: Jack
Van Berkel, Senior Vice President, Human Resources, Gateway, Inc., 14303 Gateway
Place, Poway, CA. The parties agree that the 21 day review period commenced on
November 5, 2001 and that Employee waives any right to have the 21 day review
period restarted as a consequences of revisions to the initial draft of this
Agreement. 

	

-13- 

     17.
Employee represents that she has no knowledge of any wrongdoing involving
improper or false claims against a federal or state governmental agency that
involves him or other present or former Company employees, other than those, if
any, reported by Employee to the Gateway Law Division. 

     BY
SIGNING THIS SEPARATION AGREEMENT AND GENERAL RELEASE, EMPLOYEE STATES THAT; 

			a) 		SHE
HAS READ IT AND HAS HAD SUFFICIENT TIME TO CONSIDER ITS TERMS;

			b) 		SHE
UNDERSTANDS IT AND KNOWS THAT SHE IS GIVING UP IMPORTANT RIGHTS;

			c) 		SHE
ACCEPTS ITS TERMS;

			d) 		SHE
IS AWARE OF HIS RIGHT TO (AND THAT HE SHOULD) CONSULT AN ATTORNEY BEFORE SIGNING IT AND
HAS DONE SO; AND

			e) 		SHE
HAS SIGNED IT KNOWINGLY AND VOLUNTARILY.

			
——————————————

                Susan B. Parks

Date:

——————————————

			
               
  Gateway, Inc.

By:

——————————————

Date:

——————————————

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