Document:

fluid_8k-ex1001.htm

     

    Exhibit
      10.1

     

    
       SETTLEMENT
        AGREEMENT AND GENERAL RELEASE

       

      This
        Settlement Agreement and General Release (the “Agreement”) is made and entered
        into as of September 21, 2007, by and between Fluid Media Networks, Inc.,
        a
        Nevada corporation (the “Company”), and David J. Williams
        (“Williams”).  The Company and Williams are hereinafter collectively
        referred to as the “Parties.”

       

      RECITALS

       

      WHEREAS,
        Williams is a party to that certain Employment Agreement dated February 21,
        2006, by and between Williams and the Company, as extended (collectively,
        the
“Employment Agreement”);

       

      WHEREAS,
        Williams resigned from his position as the Chief Financial Officer, effective
        September 5, 2007;

       

      WHEREAS,
        the Company and Williams wish to fully settle and discharge all claims and
        damages, whether known or unknown, and whether anticipated or unanticipated,
        which are or may be the subject of any lawsuit or any other claim which has
        arisen or which may arise between the Parties upon the terms and conditions
        set
        forth herein.

       

      NOW
        THEREFORE, in consideration of the foregoing recitals and for good and valuable
        mutual consideration, the receipt of which is hereby acknowledged, the Parties,
        intending to be legally bound, do hereby agree to the following terms and
        conditions:

       

      AGREEMENT

       

      1.           Settlement
        Consideration.  As satisfaction and performance in full of all
        obligations due and payable to Williams by the Company and each and every
        subsidiary, parent or other affiliate thereof (including without limitation
        all
        salary, bonus payments, accrued vacation and business expense reimbursement
        due
        to Williams under any and all agreements between Williams and the Company),
        and
        subject to the compliance by Williams of the provisions of Sections 1 and
        6
        hereof, the Company shall pay to Williams the aggregate amount of Sixty Four
        Thousand Eight Hundred Dollars ($64,800.00) (which amount shall be subject
        to
        withholding by the Company).  The settlement consideration herein
        described shall be paid upon the execution by the Parties of this Agreement
        and
        the receipt by the Company of a letter of resignation from Williams in form
        and
        substance reasonably satisfactory to the Company.  Notwithstanding the
        termination of the Employment Agreement or the release hereinafter described
        in
        Section 3 hereof, Williams shall remain subject to all the terms and provisions
        of the Employment Agreement, which by their express terms, purport to survive
        the termination of such agreement, including without limitation, that section
        of
        the Employment Agreement entitled “Certain Acts”  and the terms of
        that certain Proprietary Information and Inventions Agreement, dated as of
        February 21, 2007 (collectively, the “Surviving Obligations”), and the release
        set forth in Section 3 hereof shall not operate to release any matter arising
        from or related to any of the Surviving Obligations.   Each Party
        shall be entitled to all such additional remedies to which is may be entitled
        at
        law or in equity in the event of a breach of any of the Surviving Obligations
        by
        the other.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.           Releases.

       

      (a)           The
        Company and Williams, on behalf of itself or himself and each of its or his
        representatives, agents, affiliates, successors, predecessors, attorneys,
        heirs,
        executors, administrators, agents and assigns, and each and all of them,
        fully
        release and forever discharge each other, each of its former and current
        principals, officers, members, managers, directors, shareholders, employees,
        representatives, agents, parents, subsidiaries, affiliates, successors,
        predecessors, attorneys, heirs, executors, administrators, agents and assigns,
        and each and all of them, as applicable, of and from any and all claims,
        debts,
        rights, liabilities, damages, costs, expenses, attorneys' fees, causes of
        action, lawsuits, loss of use and loss of services of every kind, nature,
        or
        description, whether known or unknown, suspected or unsuspected, which
        previously existed, now exist, or may exist hereafter, accruing, occurring
        or
        arising from or in any way related to the Employment Agreement, Williams’
employment or engagement in any manner by the Company, the terms and conditions
        of the Employment Agreement or other such employment or engagement, the
        termination of the Employment Agreement or Williams’ separation from said
        employment or engagement whether based on tort, contract, statute, insurance
        policy, or other theory of recovery, and whether for compensatory or punitive
        damages, including attorneys’ fees and costs, as well as statutory sanctions,
        which the Parties ever had against each other or now have against each other
        including, but not limited to, defamation, intentional infliction of emotional
        distress, negligent hiring or supervision, conversion, interference with
        contract, impairment of economic opportunity, breach of promise, conspiracy,
        fiduciary breach, declaratory relief, prohibited transactions, fraud,
        misrepresentation, and retaliation, wrongful or constructive discharge, or
        arising under any federal, state or local employee benefit, wage payment,
        labor
        relations, equal employment, civil, human or employee rights, whistleblower
        or
        fair employment practices law, statute or regulation and/or discrimination
        on
        the basis of sex, disability or perceived disability (including the Americans
        With Disabilities Act of 1990), record or history of disability, race, color,
        religion, national origin (including Title VII of the Civil Rights Act of
        1964,
        as amended), ancestry, age (including the Age Discrimination in Employment
        Act
        of 1967 (29 U.S.C. § 621, et seq.), and the Older Workers Benefit Protection
        Act), creed, handicap, citizenship, ethnic characteristics, sexual orientation,
        genetic predisposition or carrier status, gender or marital status, veteran
        status, the Sarbanes-Oxley Act, the Employee Retirement Income Security Act,
        the
        California Fair Employment and Housing Act and any other federal, state or
        local
        laws or to claims for attorneys’ fees, expenses or costs with respect to any of
        the above.  Williams acknowledges that he did not suffer any workers’
compensation injury while employed with Company, and agrees not to bring
        or
        pursue any further claim or claims for Workers’ Compensation arising from his
        employment with Company.  Williams hereby agrees to waive any right to
        recover money damages or other relief personal to Williams in any charge,
        complaint or lawsuit filed by Williams or by anyone else on Williams’
behalf.  All of the foregoing released matters are hereinafter
        collectively referred to as the “Released Matters.”

       

      (b)           The
        releases set forth above are not intended to, and shall not, extend to or
        otherwise release or discharge any rights, privileges, benefits, duties,
        or
        obligations of any of the Parties by reason of, or otherwise arising under,
        (i)
        this Agreement, (ii) the Surviving Obligations, (iii) Williams vested stock
        options, (iv) Williams’ right to seek indemnification from the Company pursuant
        to any existing indemnification agreement with the Company, or (v) with regard
        to any director and officer insurance policy covering Williams.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (c)           The
        Parties, and each of them, acknowledge that they may hereafter discover facts
        different from, or in addition to, those which they now believe to be true
        with
        respect to any and all of the Released Matters, including without limitation,
        unknown or unanticipated claims which, if known or anticipated, on the date
        of
        execution of this Agreement, might have materially affected such Party's
        decision to execute this Agreement.  Each of the Parties acknowledges
        and agrees that by reason of the mutual general release set forth above,
        they
        are assuming the risk of such unknown claims and agree that this Agreement
        shall
        apply thereto.  Nevertheless, the Parties hereto, and each of them,
        hereby agree that each of the releases set forth above shall be and remain
        effective in all respects, notwithstanding the discovery of such different
        or
        additional facts.

       

      3.           Civil
        Code Section 1542.  The Parties represent that they are not aware
        of any disputes or causes of action they have other than the disputes and
        causes
        of action that are released by this Agreement.  The Parties expressly
        agree and understand that this Agreement is a full and final release of all
        claims of every nature and kind, known or unknown, suspected or unsuspected,
        past, present, or future, of all Released Matters, and execution of this
        Agreement by the Parties operates as a complete bar and defense against any
        and
        all claims that may be made by the Parties with regard to the Released Matters,
        and that, should any proceeding be instituted with respect to matters released
        herein, this Agreement shall be deemed in full and complete accord, satisfaction
        and settlement of any such released matter and sufficient basis for its
        dismissal.  The Parties have read and fully understand the statutory
        language of section 1542 of the California Civil Code and on that basis
        expressly and specifically waive all rights under said statute or any analogous
        state law or federal law or regulation.  Section 1542 of the
        California Civil Code reads as follows:

      

      
        	 	
                A
                  GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
                  NOT KNOW
                  OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING
                  THE
                  RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED
                  HIS OR
                  HER SETTLEMENT WITH THE DEBTOR.

              

      

      

                 The
        Parties expressly waive any rights they may have under it, as well as under
        any
        other statute or common law principles of similar effect.  Each Party
        represents further that as of the date of execution of this Agreement, he
        or it
        has not brought any claims of the type released against any of the released
        parties set forth above.

       

      4.           Confidentiality
        of Settlement.  Williams agrees to maintain in confidence the
        existence of this Agreement, the contents and terms of this Agreement, and
        the
        consideration for this Agreement (hereinafter collectively referred to as
        “Settlement Information”).  Williams agrees to take every reasonable
        precaution to prevent disclosure of any Settlement Information to third parties,
        and agrees that he will not make statements or otherwise permit or cause
        any
        publicity, directly or indirectly, concerning any Settlement Information
        to be
        released.  Williams agrees and acknowledges that the Company will be
        required to publicly announce Williams’ separation from the
        Company.

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      5.           Confidential
        Information.  Williams acknowledges and agrees that in the course
        of his employment or engagement with the Company, he has had access to and/or
        made use of certain confidential information relating to the business activities
        of the Company.  Such confidential information includes, but is not
        limited to, technical information (including, but not limited to processes,
        know-how, methods, proprietary testing data, plans, specifications, formulas,
        inventions, electronics, computer programs, computer codes, research and
        development projects, and machines); business strategies; financial data
        and
        results; pricing data; the contents of current or future client accounts
        and
        client preferences; key persons to contact with regard to client accounts
        and
        client needs; market surveys and research data; and contractual agreements
        between the Company and clients and other persons or entities, compilations
        of
        information and records that are owned or validly possessed by the Company
        or
        are used in the operation of the Company’s business and other information that
        is kept confidential by the Company.  Williams agrees that he will not
        disclose any such confidential information, directly or indirectly, or use
        any
        of it in any way whatsoever.  Williams further represents and agrees
        that all files, computer programs, records, documents, lists, specifications,
        and similar items relating to the business activities of the Company, including
        any and all copies and summaries, whether prepared by Williams or otherwise
        coming into Williams’ possession, custody or control, are property of the
        Company and have been or will be returned immediately by him to the Company
        and
        that he will not remove from the premises of the Company any such property
        or
        information or any other property, information, electronic or other otherwise,
        of the Company.  Williams hereby represents and warrants that he has
        returned all Company property in his possession and or under his control
        and
        that the Company shall not be obligated to pay the settlement consideration
        due
        under Section 1 hereof until the return of all such property.

       

      6.           Warranty
        Of Non-Assignment.  Each of the Parties hereby warrants,
        represents and agrees that he, she or it is the sole and lawful owner of
        all
        right, title and interest in and to all of the respective Released Matters
        which
        are referred to in the mutual general release set forth above and that he,
        she
        or it has not heretofore voluntarily, by operation of law or otherwise, assigned
        or transferred or purported to assign or transfer to any person whomsoever
        any
        such Released Matters, or any part or portion thereof.  Each of the
        Parties agrees to indemnify and hold each of the other Parties harmless from
        any
        claim, demand, damage, liability, action or cause of action based on or
        connected with or arising in any manner out of any such assignment or
        transfer.

       

      7.           No
        Admission of Liability.  It is specifically understood and agreed
        that this Agreement constitutes a complete compromise and settlement of disputed
        claims, and that neither the execution of this Agreement nor the payment
        of any
        monies hereunder is to be deemed an admission of liability by the Parties
        or any
        of them.  Each Party acknowledges that this Agreement is not, and
        cannot be construed as, any admission of fault by the other
        Parties.

       

      8.           Equitable
        Remedies.  Williams hereby acknowledge that the provisions of
        Section 6 hereof are reasonable and necessary to protect the legitimate
        interests of the Company and that any violation of such provisions would
        result
        in irreparable injury to the Company.  In the event of a violation of
        the provisions of Section 6 hereof, Williams agrees that the Company shall,
        in
        addition to all other remedies available to it, be entitled to equitable
        relief
        by way of injunction and any other legal or equitable remedies.

       

      9.           Representations
        and Warranties.  The Company, on the one hand, and Williams, on
        the other hand, jointly and severally, expressly represents and warrants
        to the
        other that:

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (a)           he
        or it has the power, capacity and authority to execute, deliver and perform
        this
        Agreement and to consummate the transactions contemplated hereby and on behalf
        of all whom might claim through him or it to bind them to the terms and
        conditions of this Agreement;

       

      (b)           the
        execution and delivery by he or it of this Agreement, and the performance
        by he
        or it of his or its obligations hereunder, have been duly and validly authorized
        by all action on his or its part;

       

      (c)           this
        Agreement has been duly and validly executed and delivered by his or it and
        constitutes his or its legal, valid and binding agreement, enforceable in
        accordance with its terms, except as such enforceability may be limited by
        bankruptcy, moratorium, insolvency, reorganization, fraudulent conveyance
        or
        other laws affecting the enforcement of creditors’ rights generally or by
        general equitable principles, including without limitation, those limiting
        the
        availability of specific performance, injunctive relief and other equitable
        remedies and those providing for equitable defenses;

       

      (d)           he
        or it is not entering into this Agreement in reliance upon any express or
        implied representation, agreement, or understanding of any kind by the other,
        or
        any person representing (or purporting to represent) each other, or any other
        person, except as expressly stated in this Agreement and the other Parties
        shall
        not directly or indirectly be liable or responsible for the truth, accuracy,
        or
        enforcement of any representations, agreements, or understandings which may
        now
        or hereafter exist between any of the Parties and any other Non-Party person
        and/or entity; and

       

      (e)           he
        or it has signed the Agreement voluntarily, without any duress or undue
        influence on the part, or on behalf, of any Party.

       

      10.           Miscellaneous
        Provisions

       

      (a)           Future
        Suits.  If any Party hereafter commences any action or proceeding
        against the other based upon any of the claims released by this Agreement,
        the
        provisions of this Agreement shall be deemed breached and such non-breaching
        Party shall be entitled to recover attorneys' fees and other costs of suit
        sustained by him, her or it in defending such action or proceeding and shall
        be
        indemnified by the other for such fees and costs.  This Agreement may
        be pleaded by such non-breaching Party as a defense, counterclaim or cross-claim
        in any such action or proceeding.

       

      (b)           No
        Disparagement.  Each of the Parties agrees that he or it shall not
        knowingly and intentionally make disparaging and damaging comments about
        the
        other, including his or its officers, directors, employees, investors,
        shareholders, administrators, affiliates, divisions, subsidiaries and
        predecessor and successor corporations, as applicable.

       

      (c)           Survival.  All
        representations, warranties and covenants of the Parties shall survive the
        execution of this Agreement.

       

      (d)           No
        Waiver.  This Agreement (including all exhibits thereto) may not
        be changed, waived, discharged, or terminated orally or in writing, except
        by a
        writing signed by the Parties and the observance of any such term may be
        waived
        (either generally or in a particular instance either retroactively or
        prospectively) by a writing signed by the Parties against whom such waiver
        is to
        be asserted.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (e)           No
        Precedential Value.  The settlement reflected in this Agreement
        shall be without precedential value.  It shall not be used as
        evidence, or in any other manner, in any court or other dispute resolution
        proceeding, to create, prove, or interpret the obligations of the Parties
        to
        each other or to any other person or entity.

       

      (f)           Further
        Assurances.  Each of the Parties hereto agrees that he or it will,
        from time to time after the date of this Agreement, execute and deliver such
        other certificates, documents and instruments and take such other action
        as may
        be reasonably requested by the other Parties to carry out the actions and
        transactions contemplated by this Agreement.

       

      (g)           Entire
        Agreement.  This Agreement constitutes the entire
        agreement by and among the Parties, and any prior or contemporaneous
        agreements, understandings, promises, representations, warranties and covenants,
        whether written or oral, or whether expressed, implied or apparent are hereby
        deemed merged into and made a part of this Agreement.  The terms of
        this Agreement are contractual and not merely a recital.

       

      (h)           Successors
        and Assigns.  This Agreement shall bind, and inure to the benefit
        of, the respective directors, officers, shareholders, employees, agents,
        partners, representatives, attorneys, parent and affiliated corporations,
        subsidiaries, divisions, insurers and reinsurers, joint venturers, predecessors,
        successors, beneficiaries, grantees, vendees, transferees, assigns, heirs,
        executors, administrators, trustees, and estates of each of the Parties,
        as
        applicable.

       

      (i)           Expenses;
        Taxes.  Each Party shall bear his or its own costs and expenses
        relating to the transactions contemplated in this Agreement including, without
        limitation, costs and expenses of his, her or its respective
        counsel.  Williams agrees that any tax that may be payable on the
        consideration received by Williams pursuant to this Agreement is the sole
        responsibility of Williams.  Williams agrees to indemnify, defend, and
        hold Company harmless from and against any liability or claim for any tax
        or
        other governmental contribution or any penalty or interest thereon that may
        be
        incurred or demanded as a result of the receipt of the consideration provided
        for in this Agreement.

       

      (j)           Counterparts.  This
        Agreement may be executed in any number of counterparts by the Parties hereto,
        each of which shall constitute an original but all together shall constitute
        but
        one and the same instrument.  Confirmation of execution by telecopy or
        telefax of a facsimile signature page shall be binding upon that Party so
        confirming.

       

      (k)           No
        Other Contracts.  There are no other contracts, instruments,
        documents, agreements, understandings, facts, or rights of any person which
        could alter the literal meaning or effect of this Agreement.

       

      (l)           No
        Other Conditions.  There are no conditions precedent or subsequent
        to the obligations of or release or waivers by the Parties, except as expressly
        stated in this Agreement.

       

      (m)           Governing
        Law.  This Agreement shall be construed in accordance with the
        laws of the State of California without regard to conflict of laws
        principles.  If any action is filed to enforce or interpret any of the
        terms or provisions of this Agreement or any of the other documents executed
        in
        connection with this Agreement, or otherwise, the Parties agree that the
        appropriate venue shall be a state or federal court of competent jurisdiction
        located in Los Angeles County, State of California.

       

      (n)           Construction.  This
        Agreement has been negotiated at arm’s length and between and among persons or
        entities sophisticated and knowledgeable in the matters dealt with in this
        Agreement.  In addition, this Agreement was drafted by experienced and
        knowledgeable legal counsel for each of the Parties.  The provisions
        of this Agreement shall be interpreted in a reasonable manner to effect the
        purposes of the Parties and this Agreement.  

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (o)           Notices.  All
        notices, demands, consents, approvals, requests and other communications
        required or permitted hereby shall be in writing and shall be deemed to have
        been duly and sufficiently given only if (a) personally delivered with proof
        of
        delivery thereof (any notice or communication so delivered being deemed to
        have
        been received at the time so delivered), or (b) sent by Federal Express (or
        other similar overnight courier) (any notice or communication so delivered
        being
        deemed to have been received only when delivered), (c) sent by telecopier
        or
        facsimile (any notice or communication so delivered being deemed to have
        been
        received if a copy is also delivered by one of the other means of delivery
        and
        shall be deemed to have been received (i) on the business day so sent, if
        so
        sent prior to 4:00 p.m. (based upon the recipient's time) of the business
        day so
        sent, and (ii) on the business day following the day so sent, if so sent
        on a
        non-business day or on or after 4:00 p.m. (based upon the recipient's time)
        of
        the business day so sent (unless actually received by the addressee on the
        day
        so sent)), or (d) sent by United States registered or certified mail, postage
        prepaid, at a post office regularly maintained by the United States Postal
        Service (any notice or communication so sent being deemed to have been received
        only when delivered), in any such case addressed to the respective Parties
        as
        follows:

       

      
        	
                If
                  to Williams:

                David
                  Williams

                2114
                  Roxanne Ave

                Long
                  Beach, CA  90815

                Facsimile:  ________________

                 

              	
                with
                  copy to:

                Thomas
                  M. Ffrench, Partner

                Horizon
                  Law Group, LLP

                1920
                  Main Street Suite 210

                Irvine,
                  CA  92614

                Facsimile:  949-261-2515

              
	 	 
	
                If
                  to the Company:

                Fluid
                  Media Networks, Inc.

                5813-A
                  Uplander Way

                Culver
                  City, California

                Attention:  Justin
                  F. Beckett

                Facsimile: (310)
                  665-0735

                 

              	
                With
                  copy to (which copy shall not constitute notice):

                Nixon
                  Peabody, LLP

                Gas
                  Company Tower

                555
                  West Fifth Street, 46th
                  Floor

                Los
                  Angeles, California 90013

                Attn:  Jenny
                  C. C. Chen-Drake

                Fax:  (213)
                  629-6001

              

      

       

      or
        to
        such other address or party as the other Parties may have furnished to the
        other
        in writing in accordance herewith, except that notices of change of address
        or
        addresses shall only be effective upon receipt.

       

      (p)           Revocation.  Williams
        acknowledges that he has twenty-one (21) days within which to consider this
        Agreement.  If Williams signs this Agreement prior to the expiration
        of the 21-day period, Williams acknowledges and agrees that he had adequate
        time
        and opportunity to fully consider this Agreement and to knowingly waive the
        full
        21-day period.  Williams understands that he may revoke this Agreement
        upon written notice to the Company within seven (7) days after execution
        of it
        by sending a written revocation of his intent to revoke via U.S. mail, or
        hand
        delivery within seven (7) days of execution of this Agreement.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (q)           Voluntary
        Execution of Agreement.  This Agreement is executed voluntarily
        and without any duress or undue influence on the part or behalf of the Parties
        hereto, with the full intent of releasing all of the Released
        Matters.  Each of the Parties acknowledge for itself that:
        (a)  it has read this Agreement; (b)  it has been
        represented in the preparation, negotiation, and execution of this Agreement
        by
        legal counsel of its own choice or that it has voluntarily declined to seek
        such
        counsel; (c)  it understands the terms and consequences of this
        Agreement and of the release it contains; and (d)  it is fully aware
        of the legal and binding effect of this Agreement.

       

      

      

      [Signature
        Page Follows]

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Parties have executed this Agreement on the respective
        dates set forth below.

      

      
        

        
          	 	
                  FLUID
                    MEDIA NETWORKS, INC.

                
	 	 
	
                  Date:
                    September 21, 2007

                	
                  By:
                    /s/ Justin F. Beckett

                
	 	
                  Justin
                    F. Beckett

                
	 	
                  President
                    and CEO

                
	 	 
	 	 
	 	
                  DAVID
                    J. WILLIAMS, an individual

                
	 	 
	
                  Date:
                    September 21, 2007

                	
                  By:
                    /s/ David J. Williams

                
	 	 

        

        
 

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Exhibit 10.16  

 
 

FORM OF EXECUTIVE SEVERANCE AND CHANGE-OF-CONTROL AGREEMENT    
    

        THIS EXECUTIVE SEVERANCE AND CHANGE-OF-CONTROL AGREEMENT (the "Agreement") by and between
EqualLogic, Inc. (the "Company"), a Delaware corporation with offices at 110 Spit Brook Road, Building ZKO2, Nashua, New Hampshire 03062, and
[name] (the "Executive"), is made as of [date], 2007. 

        WHEREAS,
Executive is currently employed as the Company's [title]; 

        WHEREAS,
the Board of Directors of the Company (the "Board") has determined that appropriate steps should be taken to reinforce and
encourage the continued employment and dedication of Executive and Executive's continued efforts to maximize the Company's value; 

        NOW,
THEREFORE, as an inducement for and in consideration of Executive's continued employment, the Company agrees that Executive shall receive the benefits set forth in this Agreement in
accordance with the provisions set forth below. 

1.    Definitions.    As used herein, the following terms shall have the following respective meanings: 

        1.1    "Acquisition" means (a) any merger, consolidation or purchase of outstanding capital stock of the Company after
which the voting securities of the Company outstanding immediately prior thereto represent (either by remaining outstanding or by being converted into voting securities of the surviving or acquiring
entity) less than 50% of the combined voting power of the voting securities of the Company or such surviving or acquiring entity outstanding immediately after such event, or (b) any sale of all
or substantially all of the assets of the Company (other than in a spin-off or similar transaction). 

        1.2    "Benefits Continuation" means [eighteen months (for chief executive officer); twelve months (for all
executives other than chief executive officer)] ([12 / 18]) months of continued participation by Executive and Executive's spouse and dependents in the Company's
group benefits plans, during which time the Company shall pay that portion of the premiums that the Company paid on behalf of Executive and Executive's spouse and dependents during Executive's
employment; provided, however, that if the Company's health insurance plan does not permit such continued participation in such plan after Executive's
termination of employment, then the Company shall pay the monthly costs of COBRA continuation coverage on behalf of Executive and Executive's spouse and dependents for such [12 /
18]-month period up to that monthly amount that equals the portion of the premiums paid by Executive on behalf of Executive and Executive's spouse and dependents immediately prior to the
termination of employment; and provided, further, that if Executive becomes employed with another employer during the period in which continued health
insurance is being provided pursuant to this Agreement, the Company shall not be required to continue such health benefits, or if applicable, to pay the costs of COBRA, if Executive becomes covered
under a health insurance plan of the new employer. 

        1.3    "Bonus Payment" means a lump sum payment equal to (a) [1.5 multiplied by (for chief executive
officer); 1.0 (for all executives other than chief executive officer)] Executive's target annual cash bonus for the year in which Executive's employment is terminated, plus
(b) Executive's target annual cash bonus for the year in which Executive's employment is terminated prorated to the date of Executive's termination; such Bonus Payment to be paid no later than
thirty (30) calendar days following the date on which the Release (as defined below) becomes binding on Executive. 

        1.4    "Cause" means (a) a good faith finding by the Board (i) of Executive's repeated failure after written
notice to perform Executive's reasonably assigned duties for the Company, or (ii) that Executive has engaged in dishonesty, gross negligence or misconduct, which dishonesty, gross negligence or
misconduct has had a material adverse effect on the Company, (b) Executive's conviction of, or the entry of a pleading of guilty or nolo contendere by Executive to, any crime involving moral
turpitude or any felony; or (c) Executive's breach of any material provision of any invention and non-disclosure agreement or non-competition and
non-solicitation agreement with the Company, which breach is not cured within ten (10) days written notice thereof. 

 

        1.5    "Change-of-Control" means any Acquisition that is not a Private Transaction. 

        1.6    "Equity Acceleration" means full accelerated vesting of all Unvested Equity held by Executive (in lieu of any accelerated
vesting provided for by the plan or agreement pursuant to which such Equity was granted or issued). 

        1.7    "Good Reason" means, without Executive's express written consent, and upon Company's failure to remedy within thirty
(30) days of written notice by Executive, (a) any reduction in Executive's then-current base annual salary or failure to continue coverage of Executive under any compensation
or benefit plan made available to similarly-situated employees, except to the extent that such actions or reductions are applied to all employees, (b) a requirement that the location in which
Executive perform his principal duties for the Company be changed to a new location that is outside a radius of fifty (50) miles from Executive's principal residential address, or (c) a
material reduction or diminution in Executive's position, authority or responsibilities[; provided, however, that a change in nature of the
person or persons to whom Executive reports on a regular basis shall not, in and of itself, be deemed a material reduction or diminution in Executive's position, authority or responsibilities (for all
executives other than chief executive officer)]. 

        1.8    "Private Transaction" means any Acquisition in which the consideration received or retained by the holders of the then
outstanding capital stock of the Company does not consist of (a) cash or cash equivalent consideration, (b) securities that are registered under the Securities Act of 1933, as amended,
or any successor statute (the "Securities Act"), and/or (c) securities for which the Company or any other issuer thereof has agreed to
file a registration statement within ninety (90) days of completion of the transaction for resale to the public pursuant to the Securities Act. 

        1.9    "Salary Continuation" means [eighteen (for chief executive officer); twelve (for all executives other than
chief executive officer)] ([12 / 18]) months of Executive's base salary in effect on the date of Executive's termination of employment, payable in accordance with
the Company's regular payroll practices. 

        1.10    "Severance Benefits" means Salary Continuation, Benefits Continuation, the Bonus Payment and Equity Acceleration. 

        1.11    "Unvested Equity" means (a) the unvested portion of options to purchase shares of common stock, par value $0.01
per share, of the Company ("Common Stock"), and (b) the unvested portion of restricted shares of Common Stock. 

2.    Termination Without Cause or for Good Reason Following a Change-of-Control.    

        2.1    If
Executive's employment is terminated by the Company without "Cause," or by Executive within ninety (90) days after the occurrence of "Good Reason," in either
case within three (3) months before or eighteen (18) months following a Change-of-Control, and provided that
Executive enters into, and allows to become binding, a General Release with the Company substantially in the form attached hereto as Exhibit A
(the "Release"), then Executive shall be entitled to the Severance Benefits. 

        2.2    If,
during the period during which Executive receives the Severance Benefits, Executive breaches his post-employment obligations to the Company (including,
but not limited to, all non-competition and non-solicitation obligations and all obligations pursuant to the Release), the Company may immediately cease providing the Severance
Benefits and shall have no further obligation to Executive for such Severance Benefits. 

3.    Other Employment Termination.    If Executive's employment terminates for any reason other than as described in
Section 2.1, including but not limited to if Executive resigns from the Company without Good Reason, Executive shall only receive any compensation owed to him as of his termination date and any
other post-termination benefits that Executive is eligible to receive under any plan or program of the Company. 

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4.    Limitations on Severance Benefits.    

        4.1    It
is the intention of Executive and the Company that no payments made or benefits provided by the Company to or for the benefit of Executive under this Agreement or any
other agreement or plan pursuant to which Executive is entitled to receive payments or benefits shall be non-deductible to the Company by reason of the operation of Section 280G of
the Internal Revenue Code of 1986, as amended (the "Code"), relating to golden parachute payments. 

        4.2    [For
chief executive officer, use the following bracketed text] [Notwithstanding the foregoing, in the event it shall be determined
that any payment, award, benefit or distribution by the Company to or for the benefit of Executive would be subject to the federal excise tax levied on certain "excess parachute payments" under Code
Section 4999 of the Code or any corresponding provisions of state or local tax laws as a result of the payment to Executive of the Severance Benefits or any other payments, or any interest or
penalties are incurred by Executive with respect to such tax, then Executive shall be entitled to receive an additional payment (a "Gross-Up
Payment") in an amount such that after payment by Executive of all taxes (including any interest or penalties imposed with respect to such taxes) imposed upon the
Gross-Up Payment, Executive retains an amount equal to the excise tax imposed upon the payments.] [For all executives other than chief executive officer, use the
following bracketed text] [Notwithstanding the foregoing, upon the
written election of Executive, in his sole discretion, (i) the timing of payments and benefits payable under this Agreement shall be revised, and/or (ii) the total of the payments and
benefits payable under this Agreement shall be reduced (as determined by Executive) if and to the extent the payment of such amounts and/or benefits would cause Executive's total termination benefits
(as determined by Executive's tax advisor) to constitute an "excess" parachute payment under Section 280G of the Code that would subject Executive to an excise tax under Section 4999(a)
of the Code (the "Excise Tax"), with such reductions or revisions being for the purpose of providing Executive the maximum after tax payment. The
Company makes no representations or warranty and shall have no liability to Executive or any other person if Executive's determinations do not reduce or eliminate the Excise Tax, and the Company
reserves the right to withhold if and when required under Section 4999(c)(1) of the Code.] 

        4.3    All
payments hereunder (other than reimbursement of expenses) shall be subject to any and all applicable statutory deductions. Executive acknowledges and agrees that the
Company may revise the timing of payments in this Agreement to the extent necessary to comply with Section 409A of the Code (although the parties agree that the provisions of this Agreement are
not intended to be deferred compensation subject to such section). If and to the extent any portion of any payment, compensation or other benefit provided to Executive in connection with his
employment termination is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code and Executive is a specified employee as defined in
Section 409A(2)(B)(i) of the Code, as determined by the Company in accordance with its procedures, by which determination Executive hereby agrees that he is bound, such portion of the
payment, compensation or other benefit shall not be paid before the day that is six (6) months plus one (1) day after the date of separation from service (as determined under
Section 409A of the Code) (the "New Payment Date"), except as Section 409A of the Code may then permit. The aggregate of any payments that
otherwise would have been paid to Executive during the period between the date of separation from service and the New Payment Date shall be paid to Executive in a lump sum on such New Payment Date,
and any remaining payments will be paid on their original schedule. For purposes of this Agreement, each amount to be paid or benefit to be provided shall be construed as a separate identified payment
for purposes of Section 409A of the Code, and any payments described in this Section 4.3 that are due within the "short term deferral period" as defined in regulations promulgated under
Section 409A of the Code shall not be treated as deferred compensation unless applicable law requires otherwise. Neither the Company nor Executive shall have the right to accelerate or defer
the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409A. This Agreement is intended to comply with the 

3

 

provisions
of Section 409A of the Code and the Agreement shall, to the extent practicable, be construed in accordance therewith. Terms defined in the Agreement shall have the meanings given
such terms under Section 409A of the Code if and to the extent required to comply with Section 409A of the Code. Notwithstanding the foregoing, to the extent that the Agreement or any
payment or benefit hereunder shall be deemed not to comply with Section 409A of the Code, then neither the Company, the Company's board of directors nor its or their designees or agents shall
be liable to Executive or any other person for any actions, decisions or determinations made in good faith. 

5.    Successors.    

        5.1    Successor to Company.    The Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company
would be required to perform it if no such succession had taken place. As used in this Agreement, "Company" shall mean the Company and its subsidiaries
and any successor to their business or assets as aforesaid which assumes and agrees to perform this Agreement, by operation of law or otherwise. 

        5.2    Successor to Executive.    This Agreement shall inure to the benefit of and be enforceable by Executive's
personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive should die while any amount would still be payable to Executive or
his family hereunder if Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the executors, personal
representatives or administrators of Executive's estate. 

6.    Notices.    All notices, instructions and other communications given hereunder or in connection herewith shall be in writing.
Any such notice, instruction or communication shall be sent either (i) by registered or certified mail, return receipt requested, postage prepaid, or (ii) prepaid via a reputable
nationwide overnight courier service, in each case addressed to the Company, at 110 Spit Brook Road, Building ZKO2, Nashua, New Hampshire 03062, Attention: Chief Executive Officer, and to Executive at
Executive's address indicated on the signature page of this Agreement (or to such other address as either the Company or Executive may have furnished to the other in writing in accordance herewith).
Any such notice, instruction or communication shall be deemed to have been delivered five business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or
one business day after it is sent via a reputable nationwide overnight courier service. Either party may give any notice, instruction or other communication hereunder using any other means, but no
such notice, instruction or other communication shall be deemed to have been duly delivered unless and until it actually is received by the party for whom it is intended. 

7.    Miscellaneous.    

        7.1    Employment by Subsidiary.    For purposes of this Agreement, Executive's employment with the Company shall not
be deemed to have terminated solely as a result of Executive continuing to be employed by a wholly-owned subsidiary of the Company. 

        7.2    Severability.    The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

        7.3    Governing Law.    The validity, interpretation, construction and performance of this Agreement shall be
governed by the internal laws of the State of Delaware, without regard to conflicts of law principles. 

4

 

        7.4    Waiver of Right to Jury Trial.    Both the Company and Executive expressly waive any right that any party
either has or may have to a jury trial of any dispute arising out of or in any way related to the matters covered by this Agreement. 

        7.5    Waivers.    No delay or omission by the Company in exercising any right under this Agreement shall operate as a
waiver of that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right
on any other occasion. 

        7.6    Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed to be an
original but both of which together shall constitute one and the same instrument. 

        7.7    Tax Withholding.    Any payments provided for hereunder shall be subject to all applicable tax withholding
required under federal, state or local law. 

        7.8    Entire Agreement.    This Agreement sets forth the entire agreement of the parties hereto in respect of the
subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee
or representative of any party hereto in respect of the subject matter contained herein, including [insert all other severance agreements with Executive that are intended to be superseded
(in full) by this Agreement]; and any prior agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated and cancelled. 

        7.9    Not an Employment Contract.    Executive acknowledges that this Agreement does not constitute a contract of
employment or impose on the Company any obligation to retain Executive as an employee and that this Agreement does not prevent Executive from terminating employment at any time. 

        7.10    Amendments.    This Agreement may be amended or modified only by a written instrument executed by both the
Company and Executive. 

        7.11    Executive's Acknowledgements.    Executive acknowledges that he: (a) has read this Agreement;
(b) has been represented in the preparation, negotiation and execution of this Agreement by legal counsel of Executive's own choice or has voluntarily declined to seek such counsel; and
(c) understands the terms and consequences of this Agreement. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first set forth above. 

	THE COMPANY:	 	 	 	EXECUTIVE:
	

EQUALLOGIC, INC.	
 	

 	
 	

[INSERT EXECUTIVE'S NAME]
	

By:	
 	

 [insert name]	
 	

 	
 	

	 	 	[inset title]	 	Address:	 	[insert Executive's address]

5

 
EXHIBIT A

GENERAL RELEASE  

        This General Release (the "Release Agreement") by [EMPLOYEE]
("Employee") is effective as of [DATE], pursuant to the requirements of Section 2.1 of the Executive Severance and
Change-of-Control Agreement between EqualLogic, Inc., a Delaware corporation (the "Company"), and Employee (the
"Severance Agreement"). 

1.    In
consideration of Employee's execution and compliance with the terms and conditions of this Release Agreement, the Company shall pay to Employee the amounts due to Employee pursuant
to the Severance Agreement (the "Payments"). The Payments shall commence or be made, as the case may be, within 10 days following the Effective
Date of this Release Agreement (as defined in paragraph 5 below). 

2.    Employee
acknowledges that the Payments are in lieu of and in full satisfaction of any severance or similar amounts that might otherwise be payable under any contract, agreement, plan,
policy, program, practice or otherwise, past or present, of the Company or any of its affiliates. Employee expressly agrees that following Employee's receipt of the Payments, the Company shall have no
further obligations to him, and that Employee shall have no right to any other severance or similar payments or benefits from the Company or its affiliates, with respect to Employee's employment with
the Company or the separation thereof. 

3.    Employee
voluntarily, knowingly and willingly releases and forever discharges the Company and all of its parents, subsidiaries and affiliates, together with all of their respective
past and present stockholders, agents, officers, employees, directors, successors and assigns (collectively, the "Releasees"), from and against any and
all claims, charges, damages, lawsuits, actions, causes of action and liabilities whatsoever, whether known or unknown, absolute or contingent, accrued or unaccrued, which against them Employee or
Employee's executors, administrators, successors or assigns ever had, now have, or may hereafter claim to have against the Releasees by reason of any matter, cause or thing whatsoever arising on or
before the date Employee signs this Release Agreement, and whether or not previously asserted before any state or federal court or before any state or federal agency or governmental entity (the
"Release"). This Release includes, but is not limited to, any rights or claims relating in any way to Employee's employment relationship with the
Company or any of the Releasees, or the termination thereof, or arising under any statute or regulation, including Title VII of the Civil Rights Act of 1964, the Employee Retirement Income Security
Act of 1974, the Americans with Disabilities Act of 1990, the Equal Pay Act of 1963, the Age Discrimination in Employment Act of 1967, the Family and Medical Leave Act of 1993, each as amended, and
any other federal, state or local statutes, including but not limited to, the New Hampshire Law Against Discrimination, or the common law, or under any policy, agreement, understanding or promise,
written or oral, formal or informal, between Employee and the Company or any of the Releasees. Employee represents that Employee has not commenced or joined in any claim, charge, action or proceeding
whatsoever against the Company or any of the other Releasees, arising out of or relating to any of the matters set forth in this paragraph. Employee further agrees that Employee will not be entitled
to any personal recovery in any action or proceeding whatsoever against the Company or any of the Releasees for any of the matters set forth in this paragraph, excepting those which may arise after
the date hereof, or with respect to the Company's obligations under the Severance Agreement. 

4.    Employee
acknowledges that Employee has carefully read this Release Agreement and fully understands all of its terms. Employee is signing this Release Agreement voluntarily and with
full knowledge of its significance and acknowledges that Employee has not relied upon any representation or statement, written or oral, not set forth in this Release Agreement. Employee further
acknowledges that Employee is receiving consideration for Employee's execution of this Release Agreement pursuant to the Severance Agreement in addition to anything of value to which Employee already
is entitled. 

6

 

Employee
acknowledges that such Payments are expressly conditioned upon Employee's execution of this Release Agreement. Employee further understands that Employee has twenty-one
(21) days from the original date of presentment of this Release Agreement (set forth below) to consider whether or not to execute this Release Agreement, although Employee may elect to sign it
sooner. 

5.    Employee
shall have a period of seven (7) days after signing this Release Agreement to revoke Employee's consent hereto, which revocation must be in writing to the undersigned,
and this Release Agreement shall not become effective until after this time period has passed (the "Effective Date"). Employee understands that if
Employee revokes such consent within such seven (7) day period, all of the Company's obligations to Employee under the Severance Agreement will immediately cease, and the Company will not be
required to make the Payments to Employee. 

6.    The
provisions of this Release Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other
provisions hereof. Moreover, if anyone or more of the provisions of this Release Agreement shall be held to be excessively broad as to duration, activity or subject, such provision shall be construed
by limiting and reducing them so as to be enforceable to the maximum extent allowed by applicable law. 

7.    This
Release Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same instrument. 

8.    For
purposes of this Release Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when hand delivered,
24 hours after sent by overnight courier, or upon receipt of mail by first-class, registered or certified mail, return receipt requested, postage prepaid, or transmitted by telegram or fax,
addressed as follows: 

To the Company:

EqualLogic, Inc.

110 Spit Brook Road

Building ZKO2

Nashua, New Hampshire 03062

Attention: General Counsel 

To Employee:

At
the address on file for the Employee at the Company 

or
to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 

10.    This
Release Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, promises,
covenants, arrangements, communications, representations or warranties, whether oral or written, between the parties hereto. No provision of this Release Agreement may be modified or discharged unless
such modification or discharge is authorized and agreed to in writing, signed by Employee and the Company. 

7

 

        IN
WITNESS WHEREOF, Employee has hereunder caused this Release Agreement to be duly executed and delivered in their names and on their behalf. 

Date
of original presentment: [DATE] 

[EMPLOYEE]

Agreed: 

Date
of signing: 

8

QuickLinks

FORM OF EXECUTIVE SEVERANCE AND CHANGE-OF-CONTROL AGREEMENT

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