Document:

EXH. 4.5

February 2, 2006

Mr. Tony Gallagher
Swindon, UK

Dear Tony:

I am pleased to confirm the  modification  of your terms of employment as Senior
Vice  President,  Operations of Zarlink  Semiconductor  Inc.  ("Zarlink").  This
document  will  replace all  previous  employment  terms and once  signed,  will
constitute the entire terms relating to your ongoing employment with Zarlink.

Your place of work will continue to be the Zarlink  offices  located in Swindon,
UK.

a)    Work Responsibilities

You will be  continue  reporting  to me and will be  employed  full-time  in the
position of Senior Vice President,  Operations or in such other role as I assign
to you from time to time.

In your position,  you will devote your best efforts,  and your full time, skill
and  attention to carrying out your duties and to promoting the interests of the
company.   You  will  well  and  faithfully  perform  all  services  and  duties
customarily associated with your position,  together with such additional duties
and responsibilities as may be assigned by myself from time to time.

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

(b)   Salary and Bonus

Your  annual base  salary  will  continue  to be one hundred and sixty  thousand
(160,000) pounds sterling.

In  addition,  you  will  be  eligible  to  earn an  annual  incentive  payment,
conditional  upon successful  achievement of the annual  objectives of Zarlink's
incentive  plan  (as it  changes  from  time to  time).  If all  objectives  and
conditions of the incentive plan including company budget profitability are met,
your target incentive payment,  at the Board's  discretion,  will be 50% of your
base salary. If the Financial Component of the Plan is exceeded, you can earn up
to 150% on that portion of your  individual  incentive  plan  attributed  to the
financial performance of the Company (currently 60% of your target incentive).

<PAGE>
                                      -2-

Incentive  objectives  for each fiscal year will be reviewed and finalized  with
the Board and communicated to you by the end of May each year.

By the  middle of May each  year  (the  "Incentive  Assessment  Date"),  Zarlink
assesses the achievement of the previous year's  objectives,  and calculates any
earned incentive amounts. Any incentive earned will be paid to you by the end of
Q1. Please note that you must be employed by Zarlink on the Incentive Assessment
Date in order to be eligible to receive any incentive for the prior fiscal year.

(c)   Stock Options

You are included among those  executives  whose stock options will be subject to
accelerated  vesting in the event of a Change in  Control,  as defined by and in
accordance with the enclosed Board Resolution dated January 11, 2000.

(d)   Benefits

Zarlink maintains a comprehensive  benefits plan in the UK. Your eligibility for
coverage and for benefits will be  determined  in  accordance  with the specific
terms and conditions of that benefits plan.

(e)   Car Lease

Zarlink  will  provide  you a  company  car at UK  Level  3 in  accordance  with
Zarlink's U.K. company car plan.

(f)   Pension

You will continue to participate  in the UK employee  pension plan. In addition,
you will continue to benefit from the supplemental  company  contribution to you
as detailed in a memo from  Jean-Jacques  Carrier dated May 28th, 2002. The text
of that memo is as follows:

"From an  effective  date of December 1, 2001,  Tony  Gallagher is entitled to a
salary  supplement  of 8% of  his  basic  salary,  which  supplement  should  be
separated  from his basic salary and ineligible for other benefits such as bonus
and/or pension  contributions.  Tony will pay income tax at the required rate on
this salary supplement.

Zarlink will be liable for Employer National Insurance contributions  (currently
at a rate of 11.8%) and Tony will pay National  Insurance  contributions on this
supplement  at the required rate for "earnings  over the upper  earnings  limit"
(currently nil but projected to be at a rate of 1% effective April 2003).

The supplement will be payable  quarterly in the first pay period  following the
end of the  immediately  preceding  quarter and  calculated  on the basic salary
earned in that  quarter.  For the  period  December  1, 2001 to March 31,  2002,
please  calculate the supplement based on his basic salary earned in that period
and make the payment to Tony on the next regularly scheduled payroll date.

<PAGE>
                                      -3-

This  supplement  will  be in  force  until  the  earlier  of Tony  leaving  the
employment of Zarlink or December 1, 2008."

Should you continue to be employed by Zarlink on December 1, 2008, I will review
whether to change, renew or terminate the supplement at that time.

(h)   Vacation

Zarlink will provide you with paid vacation leave in accordance with UK Vacation
Policy.

(i)   Confidentiality of Information and Ownership of Proprietary Property

As a condition  of this  agreement,  you are required to continue to be bound by
the terms of Zarlink's  confidentiality terms and conditions, a copy of which is
attached hereto

(j)   Cessation of Employment

      (i)   Definitions

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

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

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

      "Termination Date" means:

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

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

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

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

<PAGE>
                                      -4-

      (ii)  Notice of Resignation

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

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

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

      (iv)  Entitlements upon Death, Frustration of Contract

      If you die, or  frustration  of this  employment  agreement  occurs (which
      includes but is not limited to Incapacity),  then you (or your estate,  in
      the event of your death)  will be  entitled  to receive any  compensation,
      benefits and perquisites  which have accrued up to the  Termination  Date,
      but you will not be  entitled  to receive  other  compensation  (except as
      provided  in  insurance  plans) of any  nature,  whether  under  contract,
      statute,  common law or  otherwise.  Your rights  respecting  any options,
      which have been granted to you, will be determined in accordance  with the
      terms of the Zarlink 1991 Stock Option Plan.

      (v)   Entitlements upon Termination without Good Just Cause

      If Zarlink terminates your employment without Good Just Cause, you will be
      provided with the following termination package (which is inclusive of any
      statutory  entitlements you may have under applicable employment standards
      legislation.) Payment will be provided after withholding any tax and other
      required or authorized deductions:

            (A) You will receive payment in a lump sum of an amount equal to one
            times your then  current  annual base  salary.  This payment will be
            made within 30 business days following the Termination Date.

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

            (C)  You  will  receive   continued  health  benefits   coverage  in
            accordance  with the UK Company  benefits  until the  earlier of one
            year following the Termination Date

<PAGE>
                                      -5-

            or 30  days  after  you  secure  substantially  similar  replacement
            coverage   through  re-  employment.   Please  note  that  long-term
            disability  coverage  will not be  continued  after the  Termination
            Date. You will be required to notify Zarlink in writing forthwith if
            you secure substantially  similar replacement  coverage,  during the
            continuation period.

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

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

      (vi)  Resignation of Office

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

(k)   Non-Competition and Non-Solicitation Obligations

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

If your  employment with ZARLINK ceases in the case of (i) due to termination by
Zarlink  without  Good  Just  Cause  and in the case of (ii) and  (iii)  for any
reason, you agree that for a period of one (1) year from the Termination Date:

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

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

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

<PAGE>
                                      -6-

(l)   Choice of Law and Jurisdiction

This  employment  agreement will be governed by and construed in accordance with
the laws of England  without  regard to the  principles of conflicts of law, and
will in all respects be treated as an English contract.

(m)   Whole Agreement

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

To signify your  acceptance,  please sign below,  and return one complete signed
original of this  Agreement  to my  attention  no later than close of  business,
February 24, 2006.

Zarlink Semiconductor Inc.

Per: /s/ Kirk Mandy
     -------------------------------------
     Kirk Mandy
     President and Chief Executive Officer

Acknowledgement and Acceptance

I, Tony  Gallagher,  have read and reviewed,  in its entirety,  this  employment
agreement dated February 2, 2006 and the documents referred to therein. I had an
opportunity  to ensure that I clearly  understood the terms and conditions of my
employment  with  Zarlink in advance of signing  this  employment  agreement.  I
accept this employment agreement.

Dated at       Swindon       this 2 day of February, 2006.
         -------------------      -----

Executive                                            Witness

/s/ Tony Gallagher
------------------                                   ---------------------------
Tony Gallagher                                       Witness name (please print)Exh. 4.8

February 2, 2006

Mr. Stephen J. Swift
18373 Chetenham Ct.
San Diego, CA 92128

Dear Stephen:

I am pleased to confirm the modification of your terms of employment as Senior
Vice President and General Manager, ULP of Zarlink Semiconductor Inc.
("Zarlink"). This document will replace all previous employment terms and once
signed, will constitute the entire terms relating to your ongoing employment
with Zarlink.

Your place of work will continue to be the Zarlink offices located in San Diego,
California.

1.    Work Responsibilities

You will be continue reporting to me and will be employed full-time in the
position of Senior Vice President and General Manager, ULP or in such other role
as I assign to you from time to time.

In your position, you will devote your best efforts, and your full time, skill
and attention to carrying out your duties and to promoting the interests of the
company. You will well and faithfully perform all services and duties
customarily associated with your position, together with such additional duties
and responsibilities as may be assigned by myself from time to time.

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

2.    Salary and Bonus

Your annual base salary will continue to be Two Hundred and Fifty Thousand
($250,000) U.S. dollars.

      In addition, you will be eligible to earn an annual incentive payment,
conditional upon successful achievement of the annual objectives of Zarlink's
incentive plan (as it changes from time to time). If all objectives and
conditions of the incentive plan including company budget profitability are met,
your target incentive payment, at the Board's discretion, will be 50% of your
base salary. If the Financial Component of the Plan is exceeded, you can earn up
to 150% on that portion of your individual incentive plan attributed to the
financial performance of the Company (currently 60% of your target incentive).

<PAGE>
                                      -2-

Incentive objectives for each fiscal year will be reviewed and finalized with
the Board and communicated to you by the end of May each year.

By the middle of May each year (the "Incentive Assessment Date"), Zarlink
assesses the achievement of the previous year's objectives, and calculates any
earned incentive amounts. Any incentive earned will be paid to you by the end of
Q1. Please note that you must be employed by Zarlink on the Incentive Assessment
Date in order to be eligible to receive any incentive for the prior fiscal year.

3.    Stock Options

You are included among those executives whose stock options will be subject to
accelerated vesting in the event of a Change in Control, as defined by and in
accordance with the enclosed Board Resolution dated January 11, 2000.

4.    Health, Dental and other Benefits

Benefits coverage for you and your family will be in accordance with the terms
and conditions of the U.S. Benefits Plan.

5.    Car Lease

Zarlink will provide you company car benefits in accordance with the terms of
the U.S. Company Car Plan

6.    Pension

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

7.    Vacation

Zarlink will provide you with 4 weeks of paid vacation leave per annum in
accordance with U.S Vacation Policy.

8.    Confidentiality of Information and Ownership of Proprietary Property

As a condition of this agreement, you are required to continue to be bound by
the terms of Zarlink's confidentiality terms and conditions, a copy of which is
attached hereto.

9.    Cessation of Employment

      (i)   Definitions

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

<PAGE>
                                      -3-

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

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

      "Termination Date" means:

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

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

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

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

      (ii)  Notice of Resignation

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

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

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

      (iv)  Entitlements upon Death, Frustration of Contract

      If you die, or frustration of this employment agreement occurs (which
      includes but is not limited to Incapacity), then you (or your estate, in
      the event of your death) will be entitled

<PAGE>
                                      -4-

      to receive any compensation, benefits and perquisites which have accrued
      up to the Termination Date, but you will not be entitled to receive other
      compensation (except as provided in insurance plans) of any nature,
      whether under contract, statute, common law or otherwise. Your rights
      respecting any options, which have been granted to you, will be determined
      in accordance with the terms of the Zarlink 1991 Stock Option Plan.

      (v)   Entitlements upon Termination without Good Just Cause

      If Zarlink terminates your employment without Good Just Cause, you will be
      provided with the following termination package (which is inclusive of any
      statutory entitlements you may have under applicable employment standards
      legislation.) Payment will be provided after withholding any tax and other
      required or authorized deductions:

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

            (B) You will be paid in a lump sum an amount equal to one times your
            then current annual base salary. This payment will be made within 30
            business days following the Termination Date.

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

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

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

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

<PAGE>
                                      -5-

      (vi)  Resignation of Office

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

10.   Non-Competition and Non-Solicitation Obligations

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

      If your employment with ZARLINK ceases in the case of (i) due to
termination by Zarlink without Good Just Cause and in the case of (ii) and (iii)
for any reason, you agree that for a period of one (1) year from the Termination
Date:

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

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

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

11.   Choice of Law and Jurisdiction

      This employment agreement will be governed by and construed in accordance
with the laws of the Province of Ontario, Canada without regard to the
principles of conflicts of law, and will in all respects be treated as an
Ontario, Canada contract.

12.   Whole Agreement

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

<PAGE>
                                      -6-

To signify your acceptance, please sign below, and return one complete signed
original of this Agreement to my attention no later than close of business,
February 28, 2006.

Zarlink Semiconductor Inc.

Per: /s/ Kirk Mandy
     -------------------------------------
     Kirk Mandy
     President and Chief Executive Officer

Acknowledgement and Acceptance

I, Stephen J. Swift, have read and reviewed, in its entirety, this employment
agreement dated February 2, 2006 and the documents referred to therein. I had an
opportunity to ensure that I clearly understood the terms and conditions of my
employment with Zarlink in advance of signing this employment agreement. I
accept this employment agreement.

Dated at       San Diego       this 16 day of February, 2006.
         ---------------------      --

Executive                                            Witness

/s/ Stephen J. Swift                                 /s/ Kelly Christopher
--------------------                                 ---------------------------
Stephen J. Swift                                     Witness name (please print)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]