Document:

Separation Agreement/Spreng

  
 Exhibit 10.39 
  
 SEPARATION AGREEMENT 
  
 This Separation
Agreement (“Agreement”) is entered into by and between Douglas C. Spreng (“Mr. Spreng”) and Applied Micro Circuits Corporation (“AMCC” or “Company”). 
  
 RECITALS 
  
 A.    AMCC is a corporation doing business in the State of California, where Mr. Spreng is employed. 
  
 B.    AMCC acquired MMC Networks, Inc. (“MMC”) in October 2000. Mr. Spreng was then employed by MMC as its President and Chief Executive Officer pursuant to an employment agreement executed with
MMC and the Company (“Employment Agreement”). 
  
 C.    Mr. Spreng is currently
AMCC’s President and Chief Operating Officer (“COO”), and a member of its Board of Directors (“Board”). 
  
 D.    Mr. Spreng desires to retire from the Company and the parties desire to set forth the terms upon which Mr. Spreng will retire. 
  
 AGREEMENT 
  
 1.    Resignation and Termination of Employment.

  
 Concurrently with execution of this Agreement, Mr. Spreng is submitting his resignation as the Company’s
President and COO, and from all other offices and capacities in which he currently serves the Company or its affiliates, effective September 30, 2002, but will remain on the Company’s Board. Mr. Spreng agrees to submit his resignation in a
letter, the form of which is attached hereto as Exhibit “A”. Mr. Spreng and AMCC also approve the issuance of the press release attached hereto as Exhibit “B”. AMCC will continue to pay Mr. Spreng’s salary and provide him
with the benefits he is currently receiving through September 30, 2002 (“Termination Date”), at which time AMCC shall have no further obligations to Mr. Spreng except as set forth in this Agreement. 
  
 2.    Separation Pay/Consideration. 
  
 Promptly after the Effective Date of this Agreement, and after Company’s receipt of the letter described in Section 1, Mr. Spreng will receive the following consideration: 
  
 2.1    The amount of three hundred and fifty thousand dollars ($350,000), less applicable taxes and
withholdings; and, 
  
 2.2    The Company will pay Mr. Spreng’s COBRA
insurance premiums for medical, dental and vision health insurance benefits for Mr. Spreng and his dependents, through March 30, 2004. 

  
 3.    RELEASE. 
  
 3.1    Mr. Spreng, for himself and for his heirs, assigns, executors, successors and each of them, does hereby unconditionally,
irrevocably and absolutely release and discharge AMCC, its owners, directors, officers, employees, agents, attorneys, stockholders, divisions, successors and assigns, and any related holding, parent or subsidiary corporations or predecessors in
interest, including MMC, from any and all loss, liability, claims, demands, causes of action or suits of any type, whether in law and/or in equity, related directly or indirectly, or in any way connected with any transaction, affairs or occurrences
between them through the Effective Date, including, but not limited to, Mr. Spreng’s employment with AMCC or MMC and the termination of said employment, including claims for wrongful termination, employment discrimination, violation of public
policy, defamation, infliction of emotional distress and any other such claims under state or federal law, and any claims relating to the Employment Agreement, including but not limited to any severance obligations thereunder, or any other
agreements between Mr. Spreng and AMCC or MMC. This release specifically applies to any claims for age discrimination in employment, including any claims arising under the Age Discrimination and Employment Act (“ADEA”), the State of
California Fair Employment and Housing Act, or any other statutes or laws which govern discrimination in employment. Notwithstanding any other provision herein, Mr. Spreng is not releasing any claims he may have against the Company for
indemnification by the Company under that certain Indemnification Agreement between the Company and Mr. Spreng dated             , 200   (the “Indemnification
Agreement”) or as an officer, Director, employee or agent of the Company under the Company’s Certificate of Incorporation or Bylaws or under applicable law, and neither Mr. Spreng or the Company release any rights the Company and/or Mr.
Spreng may have against any of the Company’s or Mr. Spreng’s insurers. 
  
 3.2    Mr. Spreng expressly waives all of the benefits and rights granted to him pursuant to California Civil Code section 1542, which reads as follows: 
  
 A general release does not extend to claims which the creditor does not know of or suspect to exist in his favor at the time of executing the release, which
if known by him must have materially affected his settlement with the debtor. 
  
 Mr. Spreng
certifies that he has read all of this Agreement, including the release provisions contained herein and the quoted Civil Code section, and that he fully understands all of the same. Mr. Spreng hereby expressly agrees 

 
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 that this Agreement shall extend and apply to all unknown, unsuspected and
unanticipated injuries and damages, as well as those that are now disclosed. 
  
 3.3    No Further Action. Mr. Spreng irrevocably and absolutely agrees that he will not prosecute nor allow to be prosecuted on his behalf, in any administrative agency, whether federal or state, or in any
court, whether federal or state, any claim or demand of any type related to the matters released above, it being the intention of the parties that with the execution by Mr. Spreng of this release, AMCC, MMC, its owners, directors, officers,
employees, agents, attorneys, stockholders, insurers, divisions, predecessors, successors and assigns, and any related holding, parent or subsidiary corporations will be absolutely, unconditionally and forever discharged of and from all obligations
to or on behalf of Mr. Spreng related in any way to the matters discharged herein. 
  
 4.    RELEASE OF AGE
CLAIMS/EFFECTIVE DATE. 
  
 4.1    Review Period. Mr. Spreng
represents, acknowledges and agrees that AMCC is hereby advising him, in writing, to discuss this Agreement with an attorney, and to the extent, if any, that Mr. Spreng has desired, Mr. Spreng has done so; that AMCC has given Mr. Spreng twenty-one
(21) days to review and consider this Agreement before signing it, including the ADEA release therein, and Mr. Spreng understands that he may use as much of this twenty-one (21) day period as he wishes prior to signing; and that no promise,
representation, warranty or agreements not contained herein have been made by or with anyone to cause him to sign this Agreement; that he has read this Agreement in its entirety, and fully understands and is aware of its meaning, intent, content and
legal effect; and that he is executing the agreement, including all releases herein, voluntarily and free of any duress or coercion. 
  
 4.2    Effective Date of Agreement. For a period of seven (7) days following execution of this Agreement, Mr. Spreng may revoke the Agreement, and the Agreement shall not
become effective or enforceable until and unless the revocation period has expired and such right has not been exercised. This Agreement shall become effective eight (8) days after Mr. Spreng has signed it, provided that he has not revoked the
Agreement (the “Effective Date”), except that the resignation set forth in Section 1, above, is effective upon receipt by AMCC of the executed resignation letter and may not be revoked. 
  

6.    NO SOLICITATION. 
  
 Commencing upon the Effective Date of this Agreement and ending two years thereafter, Mr. Spreng shall not, solicit or encourage any employee of AMCC or its affiliates to consider going to work or work for any other person or entity.

  
 7.    CONFIDENTIALITY. 
  

 
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 Mr. Spreng shall not use or disclose any proprietary or confidential information relating to the Company
which he acquired while employed by the Company. 
  
 8.    ENTIRE AGREEMENT. 
  
 The Parties further declare and represent that no promise, inducement or agreement not herein expressed has been made to them and that
this Agreement contains the full and entire agreement between and among the Parties, and that the terms of this Agreement are contractual and not a mere recital. This Agreement supercedes and governs over all terms in the Employment Agreement which
are in conflict with the terms set forth herein, including any severance obligations set forth in Section 1(e) thereof, and the consideration set forth herein is in lieu and full satisfaction of any consideration due pursuant thereto. The parties
acknowledge that Section 4 of the Employment Agreement (“Covenant not to Compete”), Mr. Spreng’s obligations pursuant to any proprietary information and inventions assignment agreements, and the Company’s obligations pursuant to
its Indemnification Agreement with Mr. Spreng remain in full force and effect and survive execution of this Agreement. 
  
 9.    APPLICABLE LAW. 
  
 The validity, interpretation, and performance of
this Agreement shall be construed and interpreted according to the laws of the State of California, without regard to choice of law principles. 
  
 10.    DISPUTE RESOLUTION. 
  
 Any dispute arising out of or related to
this Agreement shall be resolved through binding arbitration through JAMS/Endispute in San Diego, California, under the then current applicable rules of JAMS/Endispute. Each party shall be responsible for its or his own costs and attorneys’
fees in connection with the arbitration. 
  
 11.    COMPLETE DEFENSE. 
  
 This Agreement may be pleaded as a full and complete defense against any action, suit or proceeding which may be prosecuted, instituted or
attempted by either party in breach thereof. 

 
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 12.    SEVERABILITY. 
  

If any provision of this Agreement, or part thereof, is held invalid, void or voidable as against public policy or otherwise, the invalidity shall not affect other
provisions, or parts thereof, which may be given effect without the invalid provision or part. To this extent, the provisions, and parts thereof, of this Agreement are declared to be severable. 
  

13.    NO ADMISSION OF LIABILITY. 
  
 It is understood that this Agreement is not an admission of any liability by any person, firm, association or corporation but is in compromise of a disputed claim. 
  
 14.    SUCCESSORS AND ASSIGNS. 
  
 This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. 
  
 IN WITNESS WHEREOF, the undersigned have executed this Agreement on the dates shown below. 
  

	 
	 Dated: August 23, 2002
 	 	  	 	 /s/    DOUGLAS C. SPRENG        
 

	  	 	  	 	 Douglas C. Spreng
 

 
  
 
	 
	  	 	  	 	 APPLIED MICRO CIRCUITS CORPORATION
 
	 
	 Dated: August 23, 2002
 	 	  	 	 By:
 	 	 /s/    DAVE MERSTEN
 
Dave Mersten
 Title: General Counsel
 
	  	 	  	 	  	 	  

 

 
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 EXHIBIT “A” 
  

 
 Douglas C. Spreng 
 1585 Edgewood Drive

 Palo Alto, CA 94303 
  
 
 
 August 20, 2002 
  
 David M. Rickey 
 Chairman of the Board & Chief Executive Officer 
 Applied Micro Circuits Corporation 
 6290
Sequence Drive 
 San Diego, CA 92121 
  
 Dear Dave: 
  
 This is
to notify you that I am resigning as AMCC’s Chief Operating Officer and President, as well as from AMCC’s employment and from all other offices and capacities in which I serve AMCC or its affiliates (other than as a member of the Board of
Directors), effective as of September 30, 2002. 
  
 Sincerely, 
  
  
  
 Douglas C. Spreng 

 
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 EXHIBIT B 
 PRESS RELEASE 
  
 
	 Company Contact:
 	 	 Editorial Contact:
 
	 AMCC
 	 	 The Ardell Group
 
	 Bill Bendush
 	 	 Angela Edgerton
 
	 (858) 450-9333
 	 	 (858) 792-2941
 
	 E-mail: bbendush@amcc.com
 	 	 E-mail: angela@ardellgroup.com
 

 
  
 AMCC Announces the Retirement of Doug Spreng as 
 President and Chief Operating Officer 
  
 Dave Rickey Will Resume Duties of President 
  
 SAN DIEGO, August 26, 2002 -
Applied Micro Circuits Corp. (AMCC) [NASDAQ:AMCC] today announced that Doug Spreng is retiring as the company’s president and chief operating officer, effective September 30, 2002. Spreng, who is up for re-election to AMCC’s board of
directors at the company’s August 28, 2002 annual meeting, has announced that, if elected, he will continue to serve on the board. Dave Rickey, AMCC’s chief executive officer and chairman of the board, will assume Spreng’s duties as
president. 
  
 Spreng joined AMCC in 2000, following the acquisition of MMC Networks, where he served as president
and chief executive officer. In July 2001, he became AMCC’s president and chief operating officer. 
  
 In
announcing his retirement, Spreng explained, “We’ve made a lot of progress this last year in adjusting to this challenging market environment, including focusing exclusively on our market-leading product lines, adjusting our sales and
marketing programs to increase our success rate with top tier customers, and implementing improved business processes throughout the company. I am confident that these actions, coupled with our cost reduction efforts, have made AMCC a much stronger
company that is well positioned to capitalize on the inevitable recovery of our industry. I am proud to have provided a leadership role in that endeavor. Having accomplished that, I am looking forward to continuing to serve the company as a board
member, pursuing other interests I have been contemplating for some time and spending more time with my family.” 
  
 Commenting upon Mr. Spreng’s departure, Rickey stated, “Doug managed AMCC through a very difficult period. He helped to successfully reduce the company’s expense structure in response to the most dramatic downturn in
our industry’s history, while initiating or continuing the development of key products. He also oversaw and implemented processes to better integrate the company’s business units 

 
 7 

 and improve the company’s overall efficiency. On behalf of the board and the entire company, I want to express our appreciation for his
contributions and wish him well in his future endeavors. We also look forward to his continuing contributions as a member of AMCC’s board.” 
  
 About AMCC 
  
 AMCC designs, develops, manufactures, and markets high-performance,
high-bandwidth silicon solutions empowering intelligent wide area networks. AMCC utilizes a combination of digital, mixed-signal and high-frequency analog design expertise coupled with system-level knowledge and multiple silicon process technologies
to offer integrated circuit products that enable the transport of voice and data over fiber optic networks. The company’s system solution portfolio includes switch fabric, traffic management, network processor, framer/mapper, PHY and PMD
devices that address the high-performance needs of the evolving intelligent optical network. AMCC’s corporate headquarters and wafer fabrication facilities are located in San Diego, California. Sales and engineering offices are located
throughout the world. For further information regarding AMCC, please visit our web site at http://www.amcc.com. 
  
 Forward
Looking Statements 
  
 The statements contained in this press release that are not purely historical are
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, including the
risks and uncertainties associated with the company achieving future success, maintaining its market position and the industry’s recovery as well as other risks and uncertainties set forth in the “Factors That May Affect Future
Results” detailed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2002, and in other filings of the Company with the Securities and Exchange Commission. As a result of these risks and uncertainties, actual results
may differ materially from these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and AMCC does not assume any obligation to update the reasons why actual results could differ
materially from those projected in the forward-looking statements. 
  
 ### 
  
 AMCC is a registered trademark of Applied Micro Circuits Corporation. All other trademarks are the property of their respective owners.

 
 8CONSULTING AGREEMENT

This Agreement is made as
of this October 28, 2002, by and between Roanoke Technology Corp., (“the
Company”) a corporation duly organized and existing under the laws of
Florida, with offices at 539 Becker Drive, Roanoke Rapids, North Carolina 27870
and Nicole Leigh Van Coller (“the Consultant”). 

WHEREAS, the Company is a
fully reporting company whose securities are quoted on the OTC Bulletin Board
under the symbol “RNKE”; and 

WHEREAS, the Consultant is
in the business of consulting with private and public companies regarding issues
of business development, management reorganization, and merger and acquisition
strategies (collectively all of such services shall be known as the
“Consulting Services”), 

WHEREAS, the Company wishes
to retain the services of the Consultant on the following terms and conditions: 

	 	1.	
The Company hereby retains the non exclusive services of the Consultant for a period
of six months  commencing on the date of the agreement is signed.  In exchange for
the Consulting Services, the Consultant shall receive 2,800,000 shares of the
Company's free trading common stock.
	 	 	 
	 	2.	
The Consultant shall provide general corporate consulting services which may
include, but not be limited to: assist with the development and successful execution
of the Company's strategic business plans, corporate finance matters, merger and
acquisition activity, and executive compensation and employee benefit plans,
assistance in the review and evaluation of potential merger candidates., assistance in
negotiating the terms of a merger or reorganization, assistance in evaluating and
analyzing the Company specific industry and its competitors, and assistance with
corresponding with the Company's accountants and auditors.  The Consultant agrees
to devote such business time and attention thereto as she shall determine is required.
Services of the Consultant shall not directly or indirectly promote or maintain a
market for the Company's securities and are not and will not be provided in
connection with a capital raising transaction for the Company.
	 	 	 
	 	3.	
The Consultant shall, employing his best efforts, assist the Company by the providing
the services set forth above.
	 	 	 
	 	4.	
The Consultant shall be an independent contractor and shall have no right or
authority to assume or create any obligations or responsibility, express or implied, on
behalf of or in the name of the Company, unless specifically authorized in writing by
the Company.  No provision of this Agreement shall be construed to preclude
consultant from pursuing other projects.
	 	 	 
	 	5.	
The Consultant (including any person or entity acting for or on behalf of the
Consultant) shall not be liable for any mistakes of fact, errors of judgment, for losses
sustained by the Company or any subsidiary or for any acts or omissions of any kind,
unless caused by the negligence or intentional misconduct of the Consultant or any
person or entity acting for or on behalf of the Consultant.
	 	 	 
	 	6.	
The Company and its present and future subsidiaries jointly and severally, agree to
indemnify and hold harmless the Consultant against any loss, claim, damage or
liability whatsoever, (including reasonable attorneys' fees and expenses), to which
such indemnified party may become subject as a result of performing any act (or
omitting to perform any act) contemplated to be performed by the Consultant

	 	
pursuant
to this Agreement if such act or omission did not violate the provisions of
Section 4 of this Agreement. So long as the Company has not provided counsel to
the indemnified party in accordance with the terms of this Agreement, the
Company and its subsidiaries agree to reimburse the defense of any action or
investigation (including reasonable attorney’s fees and expenses), subject
to any understanding from such indemnified party to repay the Company or its
subsidiaries if it is ultimately determined that such indemnified party is not
entitled to such indemnity. In case any action, suit or proceeding shall be
brought or threatened, in writing, against any indemnified party, it shall
notify the Company within twenty (20) days after the Indemnified Party receives
notice of such action, suit or such threat. The Company shall have the right to
appoint the Company’s counsel to defend such action, suit or proceeding,
provided that such indemnified party consents to such representation by such
counsel, which consent shall not be unreasonably withheld. In the event any
counsel appointed by the Company shall not be acceptable to such indemnified
party, then the Company shall have the right to appoint alternative counsel for
such indemnified party reasonably acceptable to such indemnified party, until
such time as acceptable counsel can be appointed. In any event, the Company
shall, at its sole cost and expense, be entitled to appoint counsel to appear
and participate as co-counsel in the defense thereof. The indemnified party, or
its co- counsel, shall promptly supply the Company’s counsel with copies of
all documents, pleadings and notices which are filed, served or submitted in any
of the aforementioned. No indemnified party shall enter into any settlement
without the prior written consent of the Company, which consent shall not be
unreasonable withheld.

	 	7.	
This Agreement shall be binding upon the Company and the Consultant and their
successors and assigns.
	 	 	 
	 	8.	
If any provision or provisions of this Agreement shall be held to be invalid, illegal
or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without
limitation, each portion of any section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable) shall not in any way be affected
or impaired thereby; and (ii) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any section of this
Agreement containing any such provision held to be invalid, illegal or unenforceable)
shall be construed so as to give effect to the intent manifested by the provision held,
invalid illegal or unenforceable.
	 	 	 
	 	9.	
No supplement, modification or amendment of this Agreement shall be binding
unless executed in writing by both parties hereto.  No waiver of any other provisions
hereof (whether or no similar) shall be binding unless executed in writing by both
parties hereto nor shall such waiver constitute a continuing waiver.
	 	 	 
	 	10.	
This Agreement may be executed in one or more counterparts, each of which shall
for all purposes be deemed to be an original but all of which shall constitute one and
the same Agreement.
	 	 	 
	 	11.	
The Parties agree that should any dispute arise in the administration of this
Agreement, that the agreement shall be governed and construed by the Laws of the
State of North Carolina.
	 	 	 
	 	12.	
This Agreement contains the entire agreement between the parties with respect to the

	 	
consulting
services to be provided to the Company by the Consultant and supersedes any and
all prior understandings, agreement or correspondence between the parties.

IN WITNESS WHEREOF, the
Company and the Consultant have caused this Agreement to be signed by duly
authorized representatives as of the day and year first above written. 

ROANOKE TECHNOLOGY CORP.

	BY:   /s/    David L. Smith, Jr.

David L. Smith, Jr.
President	BY:   /s/   Nicole Leigh Van Coller

Nicole Leigh Van Coller

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