Document:

Employment Agreement

 Exhibit 10.64 
 EMPLOYMENT AGREEMENT 
 BETWEEN LITHIUM TECHNOLOGY CORPORATION 
 AND 
 AMIR ELBAZ 
 THIS AGREEMENT made effective as of the 5th day of December, 2006, by and between Lithium Technology Corporation, a Delaware corporation with a principal place of business at 5115 Campus Drive, Plymouth Meeting, Pennsylvania (hereafter “LTC” or the
“Company”), and Amir Elbaz, with a principal place of business at 375 Park Avenue, New York, New York (hereafter or “Employee”). 
 RECITALS: 
 WHEREAS, LTC is engaged in the business of designing, developing, manufacturing, marketing, managing and operating
proprietary devices, equipment, and technologies to sell battery cells, batteries and development contracts (the “Business”); 
 WHEREAS,
LTC desires to engage Employee to provide certain services related to the development and operation of the Business; and 
 WHEREAS, Employee desires
to render such services. 
 NOW THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1. Employment. 
 (a) LTC hereby engages Employee as its Executive Vice President, Chief Financial Officer, and Treasurer who shall supervise and monitor the finances
of the Company and financial reporting of the Company, including working with the outside auditors of the Company, and Employee hereby accepts the appointment to serve in each capacity at LTC. During the term of this Agreement, Employee will be
responsible to report to the Chief Executive Officer and/or the Chairman of the Board of Directors. 
 (b) Employee hereby accepts such
appointment subject to the provisions and conditions of this Agreement. 
 2. Term of Agreement. This Agreement shall be for a period of three
(3) years if not sooner terminated pursuant to Section 6 below (the “Term”). The parties may agree by written amendment to continue this Agreement after that date on a year to year basis. 
 3. Employee’s Duties. Employee shall devote so much of his time and attention to the affairs of the Company. Employee shall perform the duties of Executive
Vice President, Chief Financial Officer, and Treasurer (the “Duties”). Nothing in this Agreement shall restrict Employee, however from expending his personal time on his own ventures or investments so long as: (i)

 such activities are consistent with Employee’s Duties with the Company; (ii) such activities and time
commitments do not impair the effective performance of his Duties for the Company; (iii) such activities do not, directly or indirectly, compete with the Business of the Company; and (iv) Employee discloses such activities to the Board of
Directors. 
 (a) Employee will cooperate with the Company in any efforts by the Company to obtain a life insurance policy on the life of
Employee for the benefit of the Company. 
 4. Company’s Duties. 
 (a) The Company shall: 
 (i) Compensate Employee as set forth in Section 5 below. 
 (ii) Furnish the Employee with a suitable private office, and such equipment, supplies, instruments, and clerical and staff support as are reasonable and
necessary to fulfil his Duties as set forth in this Agreement. 
 (iii) Furnish Employee with such data, materials, documents and other
information as are reasonable and necessary to fulfil his responsibilities and Duties as set forth in this Agreement. 
 (iv) Reimburse
Employee for all reasonable out of pocket business expenses he incurs to fulfil the terms of this Agreement, approved by the Company in accordance with its policies, rules, standards, and/or procedures governing such expenses, including without
limitation, those for travel, lodging, food, telephone, facsimile and other electronic voice or data transmissions. Employee shall submit periodic reports of such expenses on forms with supporting documentation as the Company shall prescribe for its
executive employees and the Company shall pay such reimbursement within forty-five (45) days of such submissions. 
 (b) The Company,
upon approval of the Board of Directors, may pay additional compensation to Employee as a member of management and/or for serving on the Board of Directors beyond that amount set forth in Section 5 below. The Board may approve such additional
compensation if it views such additional compensation to be in the best interest of, and fair to the Company. Such additional compensation may be in the form of, without limitation, stock options, warrants, or performance bonuses. 
 5. Compensation. 
 (a) The Company shall pay Employee,
at a minimum, a base annual salary of $225,000 (“Base Compensation”) for each of the three (3) years during the Term of this Agreement. Compensation shall be in bi weekly installments payable on the 15th day of the month and last day of each month, except as the parties may agree to another installment practice with the consent
of the Board of Directors from time to time. There shall be no adjustment for cost of living increases or Consumer Price Index increases. This compensation is subject to Section 5(d) below. 

 (b) Employee shall be eligible to participate in coverage under the Company’s employee and insurance
plans or programs and other employee benefit plan or programs, if any, at least equal to the coverage provided to other full-time executives of LTC. 
 (c) Employee may be paid additional compensation (as a member of management and/or the Board of Directors) as the Board may approve from time to time pursuant to Section 4(b) above. 
 (d) Employee shall be provided with a Company car on a full time basis to meet his commuting needs. All associated costs including but not limited to
parking, gas, tolls and insurance shall be covered by the Company. 
 6. Termination. 
 (a) The Term of this Agreement shall end on the date of the first of the following events to occur: 
 (i) Close of business three (3) years to the date following the execution of this Agreement. 
 (ii) Thirty (30) days following the Board of Director’s receipt of written notice of Employee’s resignation. Employee shall not deliver
any such notice until the parties have had prior verbal discussions. 
 (iii) The date on which or in the case of (A), (B), the date which is
thirty (30) days after the date on which the Employee shall have received written notice from the Board of Directors of the Company that it has decided to terminate his employment for cause, which notice shall specify the nature of such cause.
For purposes of this subsection, “cause” shall mean any of the following: 
 (A) Employee’s breach of any term of this
Agreement. 
 (B) The repeated, deliberate or intentional failure, refusal, or the habitual neglect of Employee to perform his Duties to the
standard required under this Agreement (except by reason of short term or long term disability). 
 (C) Acts constituting gross negligence
in the performance of Employee’s Duties or any cause based on criminal misconduct. 
 (D) An act of dishonesty by Employee intended to
result in gain or personal enrichment of Employee at the Company’s expense. 
 (E) In the event that Employee is unable for a period of
one hundred eighty (180) consecutive days to substantially perform his Duties under this Agreement by reason of illness or incapacity, the thirtieth (30th) day after the date on which Employee shall have received written notice from the Board of Directors of the Company that it has decided to terminate his employment because of such disability.

 (F) The date on which the Employee shall have received written notice form the Board of Directors of the
Company that it has decided to terminate his employment without cause. 
 (G) This Agreement shall terminate automatically upon death of the
Employee. 
 (b) Termination of this Agreement pursuant to Section 6(a) shall not affect Employee’s obligations under Sections 7
(Confidentiality), 8 (Restrictive Covenants), and 10 (Inventions). 
 (c) In the event of termination without cause as provided in subsection
(F) the Company will continue to pay the Employee an amount equal to his pay for twelve month monthly instalments (twelve months salary) or the amount equal to his pay for the number of monthly instalments remaining under this Agreement,
whichever is less. 
 7. Confidentiality. 
 (a) Employee may now and in the future have access to, and may be given information with respect to the special business techniques, concepts, designs, drawings, ideas, models, inventions, molds, forms, software programs, other intangible
work product and tangible deliverables, patents, copyrights, trade secrets, other intellectual property, systems, know-how, financial, accounting and production policies, procedures, records and infrastructure, lists of customers, and all other
information regarding manufacture, implementation or distribution of the products, plans and technology (the “Confidential Information) that are part of or used or useful in the Business of the Company and its members, employees, agents,
subsidiaries or affiliates , which is not generally known to the public and gives the Company an advantage over its respective competitors who do not know or use the Confidential Information. Employee acknowledges that all of such Confidential
Information as it now or in the future exists: 
 (1) Belongs to the Company, its shareholders, subsidiaries and affiliates; 
 (2) Constitutes specialized and highly confidential information not generally known in the industry; and 
 (3) Constitutes a valuable asset of the Company. 
 Accordingly, Employee recognizes and acknowledges that it is essential to the Company to protect the confidentiality of such Confidential Information. 
 (b) Employee agrees to act as a trustee of such Confidential Information and of any other confidential information he acquires in connection with his association with the Company. Further, as an inducement to the
Company to retain him as an employee, he will hold all such Confidential Information, in trust and confidence for the use and benefit solely of the Company. 
 (c) Employee agrees to refrain from divulging or disclosing any Confidential Information to others and from using such Confidential Information, except for the benefit of the Company as contemplated hereunder.
Employee further agrees to refrain from taking any other actions, which would tend to destroy or reduce the value of the Confidential Information to the Protected Party. 

 (d) Upon Employee’s termination (for any reason), Employee shall deliver, or cause to be delivered
in the case of termination because of incapacity, to the Company all documents and data of any nature pertaining to his work with the Company. Employee shall not take any documents or data of any description or any reproduction of any description
containing or pertaining to any Confidential Information. 
 (e) The confidentiality provisions of this Section 7 are intended to
supplement and not supersede the applicable provisions of the Uniform Trade Secrets Act, to the fullest extent applicable. 
 (f) During the
term hereof, and thereafter, Employee shall not disclose such Confidential Information to any person, firm, association, or other entity for any reason or purpose whatsoever, unless such information has already become common knowledge or unless
Employee is required to disclose it by judicial process. Employee shall notify the Company in writing of such judicial process prior to disclosure, and allow the Company a reasonable opportunity to defend and protect its rights therein. 

8. Restrictive Covenants. 
 (a) For a period of
three (3) years after the expiration or termination of this Agreement for any reason whatsoever, Employee shall not, directly or indirectly, engage in activities for, nor render services (similar or reasonably related to those in which Employee
shall have rendered to the Company) to, any person, entity, firm, business organization which directly or indirectly competes with the Business of the Company to the extent and insofar as such competition is based on or exploits the Confidential
Information or Inventions (defined below) of the Company, whether now existing or hereafter established, nor shall Employee entice, induce or encourage any of the Company’s employees to engage in any activity which, were it done by Employee,
would violate any provision of this section. 
 (b) For a period of three (3) years after the expiration or termination of this
Agreement for any reason whatsoever, Employee shall not, directly or indirectly, solicit the Company’s employees or independent contractors to leave their employ or terminate their contracts with the Company. Further, Employee shall not offer
or cause to be offered employment or an independent contract to any person who was employed by or under contract with the Business of the Company at any time during the eighteen (18) months prior to the termination of his employment with the
Company. 
 Upon Employee’s written request to the Company specifying the activities proposed to be conducted by Employee, the Company
may in its discretion give Employee written approval(s) to personally engage in any activity or render services referred to in Subsection (a) upon receipt of written assurances (satisfactory to the Company and its counsel) from Employee and
from Employee’s prospective employer(s), partner(s) or company that the integrity and provisions of this Section will not in any way be jeopardized or violated by such activities, provided the burden of so establishing the foregoing to the
satisfaction of the Company and its counsel shall be upon Employee and his prospective employer(s), partner(s) or company 
 (c) The parties
acknowledge that they have attempted to limit Employee’s right to compete only to the extent necessary to protect the Company from unfair competition. However, the 

 parties hereby agree that, if the scope or enforceability of the restrictive covenant is in any way disputed at any time,
a court or other competent trier of fact may modify and enforce the covenant to the extent that it finds the covenant to be reasonable under the circumstances existing at the time. 
 (d) Employee further acknowledges that: (1) in the event his contract with the Company terminates for any reason, he will be able to earn a
livelihood without violating the foregoing restrictions; and (2) that his ability to earn a livelihood without violating such restrictions is a material condition to his retention by the Company. 
 (e) Employee’s duties under this Section 8 shall survive termination of this Agreement. Employee acknowledges that a remedy at law for any
breach or threatened breach by Employee of this Section 8 may be inadequate, and Employee therefore agrees that the Company shall be entitled to all available remedies in law including injunctive relief in case of any such breach or threatened
breach. 
 9. Warranty Against Prior Existing Restriction. Employee represents and warrants to the Company that he is not a party to any agreement
containing a non-competition clause or other restriction with respect to: (a) the services which he is required to perform hereunder; or (b) the use or disclosure of any information directly or indirectly related to the Company’s
business, or to the services he is required to render pursuant hereto. 
 10. Inventions. 
 (a) Employee agrees to promptly disclose to the Company, or any persons designated by it, all improvements, inventions, formulae, processes, techniques,
know-how and data, whether or not patentable, made or conceived or reduced to practice or learned by Employee, either alone or jointly with others, during the period of Employee’s employment which are useful in the Business of the Company, or
result from tasks assigned to Employee by the Company, or result from use or premises owned, leased or contracted for by the Company (all said improvements, inventions, formulae, processes, techniques, know-how and data shall be collectively
hereinafter called “Inventions”). 
 (b) All Inventions shall be the sole property of the Company and its assigns, and the Company
and its assigns shall be the sole owner of all patents and other rights in connection therewith. Employee hereby assigns to the Company any rights he may have or acquire in all Inventions. Employee further agrees as to all Inventions to assist the
Company in every proper way (but at the Company’s expense) to obtain and from time to time enforce patents, copyrights, trademarks, and other rights and protections and enforcing the same, as the Company may desire, together with any
assignments thereof to the Company or persons designated by it. Employee’s obligation to assist the Company in obtaining and enforcing patents, copyrights, trademarks and other rights and protections relating to the Inventions in any and all
countries shall continue beyond the termination of Employee’s employment, but the Company shall compensate Employee at a reasonable rate after such termination for time actually spent by Employee at the Company’s request on such
assistance. 
 (c) In the event the Company is unable after reasonable effort, to secure Employee’s signature on any document or
documents needed to apply for or prosecute any patent, copyright, 

 other right or protection relating to an Invention, for any reason whatsoever, Employee hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as Employee’s agent and attorney-in-fact to act for and on Employee’s behalf to execute and file any such application or applications and to do all other lawfully permitted
acts to further the prosecution and issuance of patents, copyrights, or similar protections thereon with the same legal force and effect as if executed by Employee. 
 (d) The Company makes no claim to any intellectual property or product which is developed or invented by Employee, which is not useful in or related to the Company’s Business, provided such intellectual property
or product does not result from the use of Confidential Information or violate any terms of Section 7 (Confidentiality), Section 8 (Restrictive Covenants), or Section 10 (Inventions) set forth in this Agreement.
11. Severability. It is the desire and intent of the parties hereto that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policy of each jurisdiction in which enforcement is
sought. Accordingly, if any particular provision, section, or subsection of this Agreement is adjudged by any court of law to be void or unenforceable, in whole or in part, such adjudication shall not be deemed to affect the validity of the
remainder of the Agreement, including any other provision, section, or subsection. In addition, if any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope,
activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear. Each provision, section, and subsection of this Agreement is declared to be
separable from every other provision, section, and subsection and constitutes a separate and distinct covenant. 
 12. Entire Agreement. This
Agreement contains the entire understanding of the parties and supersedes all previous verbal and written agreements. There are no other agreements, representations, or warranties not set forth herein. 
 13. Notices. All notices or other documents under this Agreement shall be in writing and delivered personally or mailed by certified mail, return receipt
requested postage prepaid, addressed to the Company or Employee at their last known addresses. Addresses are as follows: 
  

			
	If to the Company:	 	Lithium Technology Corporation
		 	5115 Campus Drive
		 	Plymouth Meeting, PA 19462
		 	Attention: Andrew J. Manning
		
	With Copy to:	 	Gallagher, Briody & Butler
		 	155 Village Blvd., Suite 201
		 	Princeton, NJ 08540
		 	Attention: Thomas P. Gallagher, Esq.
		
	If to Employee:	 	Amir Elbaz
		 	375 Park Avenue, Suite 1309
		 	New York, NY 10152

 14. Non-waiver. No delay or failure by either party to exercise any right under this Agreement, and no
partial or single exercise of that right, shall constitute a waiver of that or any other right, unless otherwise expressly provided herein. 

 15. Headings. Headings in this Agreement are for convenience only and shall not be used to interpret or
construe its provisions. 
 16. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of New
York. 
 17. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument. 
 18. Binding Effect. The provisions of this Agreement shall be binding upon and inure to
the benefit of each of the parties and their respective successors and assigns. 
 19. Remedies. The parties agree that in addition to any other
rights and remedies available to the Company for any breach by Employee of his obligations hereunder, the Company shall be entitled to enforce Employee’s obligations hereunder by court injunction, or court ordered affirmative action, which
injunction or ordered action may restrain a future breaking of this Agreement if there is reasonable ground to believe that such a breach is threatened. Employee further agrees to allow the Company to enjoin future use or disclosure of its
Confidential Information if it has reasonable grounds to believe such action is necessary to protect such Confidential Information. 
 20. Attorney’s Fees. If either party hereto shall breach any of the terms hereof, such breaching party shall pay to the non-defaulting party all of the non-defaulting party’s costs and expenses, including reasonable
attorney’s fees and costs, incurred by such party in enforcing the terms of this Agreement. 
 21. Prohibition Against Assignment. Employee
agrees, for himself and on behalf of his successors, heirs, executors, administrators, and any person or persons claiming under him by virtue hereof, that this Agreement and the rights, interests, and benefits hereunder cannot be assigned,
transferred, pledged, or hypothecated in any way and shall not be subject to execution, attachment, or similar process. Any such attempt to do so, contrary to the terms hereof, shall be null and void and shall relieve the Company of any and all
obligations or liability hereunder. 
 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date first written above.

  

	
	For Company:
	
	 /s/ H.H. van Andel

	By: H.H. van Andel
	Its: Chairman of the Board
	
	For Employee:
	
	 /s/ Amir Elbaz

	By: Amir Elbaz
	As: IndividualAgreement

 Exhibit 10.1 
 AGREEMENT 
 THIS AGREEMENT (“Agreement”), dated the 5th day of December, 2006, is made by and between Gateway, Inc., a Delaware corporation (“Gateway”), on the one hand, and Scott Galloway
(“Mr. Galloway”) and Firebrand Partners III, LLC (together with Mr. Galloway, and their respective affiliates, “Firebrand”), Harbinger Capital Partners Master Fund I, Ltd. (“HCPF”) and Harbinger Capital Partners
Special Situations Fund, L.P. and its affiliates, including, without limitation, its affiliates listed on the signature pages hereto (together with HCPF, “Harbinger,” and collectively with Firebrand, the “H/F Group”), on the
other. 
 WHEREAS, the H/F Group are parties to a Confidentiality Agreement with Gateway, dated September 25, 2006 (the
“Confidentiality Agreement”); 
 WHEREAS, the H/F Group has filed a Schedule 13D with the Securities and Exchange Commission (the
“SEC”) on August 21, 2006, as amended on September 29, 2006, October 26, 2006, November 1, 2006 and as may be amended from time to time (the “Schedule 13D”); 
 WHEREAS, the H/F Group has sought representation on the Board of Directors of Gateway (the “Board”) and other corporate governance changes and
Gateway is willing to undertake the Board composition and other corporate governance changes set forth herein; and 
 WHEREAS, Gateway and
the H/F Group have agreed that it is in their mutual interests to enter into this Agreement as hereinafter described. 
 NOW, THEREFORE, in
consideration of the premises and the representations, warranties, and agreements contained herein, and other good and valuable consideration, the parties hereto mutually agree as follows: 
 1. Representations and Warranties of the H/F Group. The H/F Group hereby represents and warrants to Gateway as follows: 
  

	 	(a)	The H/F Group has beneficial ownership of 39,950,000 shares of common stock of Gateway and has full power and authority to enter into this Agreement and to bind the entire number of
shares of the common stock of Gateway which it holds, or may hold, including any shares purchased in the future, to the terms of this Agreement; 

  

	 	(b)	This Agreement constitutes a valid and binding obligation of the H/F Group. No “affiliate” or “associate” (as such terms are defined in the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) of the H/F Group, except as disclosed in the Schedule 13D as of the date hereof, beneficially owns any shares or rights to acquire shares of common stock of Gateway; 

	 	(c)	There are no arrangements, agreements or understandings between the H/F Group on the one hand and Gateway on the other, except as set forth in this Agreement and the Confidentiality
Agreement; 

  

	 	(d)	There are no arrangements, agreements or understandings among Harbinger, Firebrand and Mr. Galloway with respect to Gateway or its securities that are required to be set forth
in the Schedule 13D other than as set forth in the Schedule 13D; 

  

	 	(e)	There are no arrangements, agreements or understandings between Mr. Galloway on the one hand and any other party (including, but not limited to, Harbinger or its affiliates)
that conflict with or interfere with Mr. Galloway’s ability to fulfill his obligations and perform his duties as a director of Gateway in any material respect; and 

  

	 	(f)	The H/F Group will immediately withdraw its demand letter dated November 2, 2006 made pursuant to Section 220 of the Delaware General Corporation Law.

 2. Representations and Warranties of Gateway. Gateway hereby represents and warrants to the H/F Group, as follows: 
  

	 	(a)	Gateway has full power and authority to enter into and perform its obligations under this Agreement, and the execution and delivery of this Agreement by Gateway has been duly
authorized by the Board and requires no further Board or stockholder action; 

  

	 	(b)	This Agreement constitutes a valid and binding obligation of Gateway and the performance of its terms does not constitute a violation of its certificate of incorporation or bylaws;
and 

  

	 	(c)	The 2007 Annual Meeting of Stockholders of Gateway (the “2007 Annual Meeting”) is scheduled to be held during the week of May 14, 2007 and Gateway has no reason to
believe that the meeting will not occur during such time frame. 

 3. Directorships. Gateway agrees that: 
  

	 	(a)	On or before December 5, 2006, Mr. Galloway shall be appointed to the Board as a member of Class II of Directors whose term expires at the 2007 Annual Meeting and to the
Corporate Governance and Nominating Committee of the Board; 

  

	 	(b)	On or before February 28, 2007, the Board shall increase the size of the Board by one member and appoint an additional director (the “Additional Director”) who shall
be mutually acceptable to both Gateway and the H/F Group. Gateway and the H/F Group agree to cooperate and act in good faith in the search for and appointment of an Additional Director by February 28, 2007. If Gateway and the H/F Group
are unable to appoint a mutually acceptable director by February 28, 2007, then within 5 business days thereafter, the Corporate Governance and Nominating Committee of the Board shall recommend to the Board a candidate from the then available
candidates after consultation with and giving significant weight to the views of the H/F Group and such recommended candidate shall be appointed by the Board as the Additional Director. The Additional Director shall be appointed as Class II
Director; and 

	 	(c)	Mr. Galloway and the Additional Director will be nominated for re-election to the Board at the 2007 Annual Meeting and there will be no nominations by the Board in excess of
the number of seats then available. 

 4. Corporate Governance. Gateway covenants that: 
  

	 	(a)	The Board shall undertake a review of the Company’s stockholder rights plan and make recommendations with respect thereto prior to the 2007 Annual Meeting; and

  

	 	(b)	The Board shall review and approve an amendment to its certificate of incorporation and procure the consent of each director to declassify the Board so that each director shall
thereafter serve for a term to expire at the next annual meeting of stockholders (the “ Declassification Amendment”) and the Declassification Amendment shall be included in Gateway’s proxy statement for the 2007 Annual Meeting with a
favorable recommendation of the Board. The foregoing amendment may provide that the last paragraph in Article Eighth from its Restated Certificate of Incorporation shall remain in effect until December 31, 2007. In addition, the Board shall
make, adopt and approve conforming changes to Gateway’s Bylaws with respect to the foregoing. 

 5. Voting at Meetings of Stockholders;
Consent Solicitations. Until the earlier of (i) the date immediately following the 2007 Annual Meeting and (ii) the termination of this Agreement pursuant to Section 7, at all meetings of stockholders, and with respect to any
consent solicitation, the members of the H/F Group shall (and shall cause their respective affiliates to) vote, or provide its consent with respect to, all of the shares of Gateway common stock beneficially owned by its members: 
  

	 	(a)	For each of Gateway’s nominees for election to the Board who are on the Board as of the date hereof; 

  

	 	(b)	For the ratification of the appointment of Gateway’s independent auditors; 

  

	 	(c)	For the Declassification Amendment and against any other proposals relating to the declassification of the Board; and 

  

	 	(d)	In other matters, in accordance with the recommendation of the Board; provided that this subsection (d) shall not apply if Mr. Galloway in his capacity as a director voted
against such recommendation of the Board. 

 6. The H/F Group’s Prohibited Conduct. Until the termination of this Agreement
pursuant to Section 7, except as described below, the members of the H/F Group shall not, and shall cause their respective affiliates or associates, to not, directly or indirectly: 
  

	 	(a)	Solicit (as such term is used in the proxy rules of the Securities and Exchange Commission) proxies or consents, or participate in any manner in the solicitation of proxies or
consents, from Gateway’s stockholders to elect persons to the Board of Directors or to approve stockholder proposals; provided, however, that nothing in this Section 6(a) shall prohibit Mr. Galloway from soliciting proxies or consents
in his capacity as a director of Gateway for proposals or actions made at the direction of the Board of Directors; 

	 	(b)	Make or be the proponent of any stockholder proposal, whether pursuant to Rule 14a-8 of the Exchange Act or otherwise; 

  

	 	(c)	Seek, alone or in concert with others, to (i) call a meeting of stockholders, (ii) seek representation on the Board of Gateway or its subsidiaries, except as set forth
herein, or (iii) the removal of any member of the Gateway Board or any of its subsidiaries; or 

  

	 	(d)	Make any publicly disclosed proposal regarding any of the foregoing, or take, or cause others to take, any action inconsistent with any of the foregoing. 

Notwithstanding the foregoing, the provisions of this Section 6 shall not apply, and the H/F Group shall be free to engage in any of the activities otherwise
prohibited by this Section 6, in the event any of the following shall occur (and shall be continuing): 
  

	 	i.	The acquisition, directly or indirectly, by any person or group of persons acting as a group (other than the H/F Group) of 50% or more of the then outstanding common stock of
Gateway; 

  

	 	ii.	If, in connection with a merger, sale or other business combination or issuance of securities or reorganization transaction involving Gateway, the Members of the Board in office
immediately prior to the date of this Agreement constitute less than a majority of the Board; or 

  

	 	iii.	Gateway entering into, any definitive agreement for the merger, sale or other business combination transaction (A) pursuant to which the then outstanding common stock of
Gateway would be converted into cash or securities of another person or group of persons acting as a group (other than the H/F Group) with the result that 50% or more of the then outstanding common stock of Gateway would be owned by persons other
than the then current holders of the common stock of Gateway or (B) which would result in all or a substantial portion of Gateway’s assets being sold to any person or group (other than the H/F Group). 

 7. Termination. This Agreement shall terminate on December 31, 2007. 
 8. Changes in Class of Directors. In connection with the appointment of Mr. Galloway to the Board, the parties agree that Mr. Doug Lacey, Director, will be moved to Class I of Directors. 
 9. Public Announcement. The parties shall promptly disclose the existence of this Agreement after its execution pursuant to a joint press release, which press
release shall be in a form reasonably satisfactory to the H/F Group and Gateway; however, neither party shall disclose the existence of this Agreement until the press release is issued. 
 10. Remedies. Gateway and the H/F Group acknowledge and agree that a breach or threatened breach by either party may give rise to irreparable injury inadequately compensable in damages, and accordingly each
party shall be entitled to injunctive relief to prevent a breach of the provisions hereof and to enforce specifically the terms and provisions hereof in any state or federal court having jurisdiction, in addition to any other remedy to which such
aggrieved party may be entitled to at law or in equity. In the event either party institutes any legal action to enforce such party’s rights under, or recover damages for breach of, this Agreement, the prevailing party or parties in such action
shall be entitled to recover from the other party or parties all costs and expenses, including but not limited to reasonable attorneys’ fees, court costs, witness fees, disbursements and any other expenses of litigation or negotiation incurred
by such prevailing party or parties. 

 11. Notices. All notice requirements and other communications shall be deemed given when delivered or on the
following business day after being sent by overnight courier with a nationally recognized courier service such as Federal Express, addressed to Harbinger, Firebrand, Gateway and Mr. Galloway as follows: 
 Gateway: 
 Gateway, Inc. 

7565 Irvine Center Drive 
 Irvine,
California 92618 
 Facsimile: (949) 471-7014 
 Attention: Michael Tyler 
 With a copy to (which shall not constitute notice): 
 Skadden, Arps, Slate, Meagher & Flom LLP 
 300 South Grand Avenue, Suite 3400 
 Los Angeles, California 90071 
 Facsimile: (213) 687-5600 
 Attention:
Brian J. McCarthy 
 Harbinger 
 Harbinger Capital Partners 
 555 Madison Avenue, 16th Floor 
 New York, NY 10022 
 Facsimile: 212-508-3721 
 Attn: Philip Falcone

 with copies to (which shall not constitute notice): 
 One Riverchase Parkway South 
 Birmingham, AL 35244 
 Facsimile: 205-987-5505 
 Attention: General
Counsel 
 and 
 Paul, Weiss,
Rifkind, Wharton & Garrison LLP 
 1285 Avenue of the Americas 
 New York, New York 10019-6064 
 Facsimile: (212) 757-3990 
 Attention: Raphael M. Russo, Esq. 

 Firebrand 
 Firebrand Partners III, LLC 
 40 West 4th Street, Suite 904 
 New York, New York 10012

 Attention: Scott Galloway 
 Mr. Galloway 
 Mr. Scott Galloway 
 40 West 4th Street, Suite 904 
 New York, New York 10012 
 with a copy to
(which shall not constitute notice): 
 Hogan & Hartson 
 555 Thirteenth Street, NW 
 Washington, DC
20004 
 Attention: Stuart G. Stein, Esq. 
 12.
Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements (other than the Confidentiality Agreement, except as
noted herein), understandings, negotiations and discussions of the parties in connection therewith not referred to herein. 
 13. Counterparts;
Facsimile. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, and signature pages may be delivered by facsimile, each of which when so executed shall be deemed to be an original and
all of which taken together shall constitute one and the same agreement. 
 14. Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof. 
 15. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Delaware, without regard to choice of law principles that would compel the application of the laws of any other jurisdiction. 
 16. Successors and Assigns. This Agreement shall not be assignable by any of the parties to this Agreement. This Agreement, however, shall be binding on successors of the parties hereto. 
 17. Survival of Representations, Warranties and Agreements. All representations, warranties, covenants and agreements made herein shall survive the execution and
delivery of this Agreement. 
 18. Amendments. This Agreement may not be modified, amended, altered or supplemented except upon the execution and
delivery of a written agreement executed by all of the parties hereto. 
 19. Further Action. Each party agrees to execute any and all documents, and
to do and perform any and all acts and things necessary or proper to effectuate or further evidence the terms and provisions of this Agreement. 

 20. Consent to Jurisdiction. Each of the parties hereby irrevocably submits to the exclusive jurisdiction of any
state court sitting in the State of Delaware in any action or proceeding arising out of or relating to this Agreement and each of the parties hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and
determined in any such court. 
  

	21.	Expenses. Each party agrees to bear its own expenses in connection with the transactions contemplated hereby. 

 [Signature Page Follows] 

 Gateway, Harbinger and Firebrand each indicate its agreement with the foregoing by signing and returning
one copy of this agreement, whereupon this letter agreement will constitute their agreement with respect to the subject matter hereof. 
  

			
	Accepted to and Agreed, as of the date first written above:
	
	GATEWAY, INC.
		
	By:	 	/s/ Richard D. Snyder
	Name:	 	
	Title:	 	Chairman
	
	HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
		
	By:	 	 Harbinger Capital Partners Offshore Manager, LLC
 Investment Manager

		
	By:	 	 HMC Investors, L.L.C.
 Managing
Member

		
	By:	 	/s/ Joel B. Prassiuts
		 	Name: Joel B. Prassiuts
		 	Title: Vice President
	
	HARBINGER CAPITAL PARTNERS OFFSHORE MANAGER, L.L.C.
		
	By:	 	 HMC Investors, L.L.C.
 Managing
Member

		
	By:	 	/s/ Joel B. Prassiuts
		 	Name: Joel B. Prassiuts
		 	Title: Vice President
	
	HMC INVESTORS, L.L.C.
		
	By:	 	/s/ Joel B. Prassiuts
		 	Name: Joel B. Prassiuts
		 	Title: Vice President

  

			
	HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS GP, L.P.
		
	By:	 	Harbinger Capital Partners Special Situations GP, LLC General Partner
		
	By:	 	 HMC – New York, Inc.
 Managing
Member

		
	By:	 	/s/ William R. illegible
		 	Name:
		 	Title:
	
	HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS GP, LLC
		
	By:	 	 HMC – New York, Inc.
 Managing
Member

		
	By:	 	/s/ William R. illegible
		 	Name:
		 	Title:
	
	HMC – NEW YORK, INC.
		
	By:	 	/s/ William R. illegible
		 	Name:
		 	Title:
	
	HARBERT MANAGEMENT CORPORATION
		
	By:	 	/s/ William R. illegible
		 	Name:
		 	Title:
	
	FIREBRAND PARTNERS III, LLC
		
	By:	 	/s/ Scott Galloway
		 	Name:
		 	Title: Managing Member
	
	/s/ Scott Galloway
		 	Scott Galloway

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