Document:

Exhibit 10.5

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT
AGREEMENT, effective as of September 2, 2008 (the “Effective Date”), by
and between AboveNet, Inc. (the “Company”), a Delaware corporation having
its principal offices at 360 Hamilton Avenue, White Plains, New York 10601 and Douglas
Jendras, residing at 1 Carriage Lane,
New Fairfield, CT 06812  (the “Employee”).

 

W  I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Employee
has been employed by the Company pursuant to an employment agreement;

 

WHEREAS, the Company
and the Employee now desire to provide for the continued employment of the
Employee by the Company after the Effective Date on the terms and conditions
hereinafter set forth herein and to replace and supersede the existing
employment agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and agreements herein
contained, the parties hereto agree as follows:

 

1.                                       Employment; Term.

 

(a)                                  The Company hereby agrees to employ the
Employee, and the Employee hereby agrees to serve, as Senior Vice President,
Operations during the Term (defined below).

 

(b)                                 The term (the “Term”) of the
Employee’s employment hereunder will commence on the Effective Date and, unless
sooner terminated as provided in Section 6 hereof, will terminate at the
end of the day on November 16, 2011. The Term shall be automatically
extended, unless sooner terminated as provided herein, for successive
additional one-year periods, unless at least 120 days prior to the end of the
Term, the Company or the Employee has notified the other that the Term will not
be extended.

 

2.                                       Duties.

 

(a)                                  The Employee will have such powers and
duties reasonably consistent with Employee’s position as Senior Vice President,
Operations and will perform such duties as assigned to him by the Chief
Executive Officer, or alternatively at the discretion of the Chief Executive
Officer the President of the Company, (the “Superior”).  The Employee agrees to perform his duties and
exercise his authority pursuant to the direction and control of his Superior
and will report to his Superior.  The
Employee will perform his duties diligently, faithfully and to the best of his
ability and in accordance with sound business practices. The Employee will be
based in White Plains, New York, but will be expected to travel from time to
time.

 

(b)                                 The Employee will devote substantially
all his business time and attention to his duties and responsibilities
hereunder, subject to paid vacations and holidays as hereinafter set forth in Section 5
of this Agreement.

 

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(c)                                  The Employee will comply with all Company
policies including its Code of Conduct.

 

3.                                       Compensation.

 

(a)                                  Base Salary. 
During the Term, for all the services rendered by the Employee in all
capacities hereunder, the Employee will receive an annual base salary of $280,000
(the “Base Salary”) subject to required deductions and withholdings or
as otherwise required by law, payable in accordance with the standard payroll
practices of the Company then in effect which is currently twice a month.  Base Salary may be increased but not
decreased during the Term.

 

(b)                                 Bonus Plan.  In
addition to the Base Salary set forth in Section 3(a) hereof, the
Employee will have an annualized bonus targeted at 35% of Base Salary based on
performance against the Company’s EBITDA plan and other bonus targets set by
the Compensation Committee of the Board of Directors (the “Bonus Plan”).

 

4.                                       Expenses.

 

The
Company will reimburse the Employee for all reasonable out-of-pocket business
expenses paid or incurred by him in connection with the performance of his
duties and responsibilities hereunder, but payment will be made only against a
signed, itemized list of such expenses, utilizing general forms for that
purpose established by the Company and accompanied by proper documentation
verifying such expenses.  Receipts will
not be required for any expenses that are less than Twenty-Five Dollars ($25)
in value.  The Company may audit the
Employee’s expense reports at any time.

 

5.                                       Additional Benefits; Vacations;
Facilities.

 

(a)                                  During the Term, the Employee will be
entitled to participate in all group health and insurance programs and all
other fringe benefit or retirement plans or other plans provided to employees
of the Company in similarly-situated executive positions generally, subject to
the Employee’s satisfying all of the eligibility requirements thereof.  Nothing herein will be deemed to require the
Company to establish or maintain any employee benefit plan whatsoever, and the
Company has the right, in its sole and absolute discretion, to alter, amend,
modify, discontinue or terminate any and all employee benefit plans at any
time.

 

(b)                                 During the Term, the Employee will be
entitled to the generally same paid holidays as are provided to employees in
similarly-situated executive positions generally and will be entitled to paid
time off (including vacation days and sick days) per calendar year of 25 days
or such greater amount provided by the then existing Company policy, consistent
with his duties and responsibilities hereunder and the Company’s vacation
policy.  Paid time off which remains
unused at the end of a calendar year will be subject to the then existing
policy regarding carryover of, or payments for, such unused time.

 

(c)                                  If the Employee qualifies for term life
insurance at non-smoker’s rates, the Company will provide the Employee during
the Term, at no cost (other than 

 

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potential income tax)
to the Employee, with a life insurance policy providing for a death benefit of
no less than $1,000,000.  If the Employee
fails to qualify for term life insurance at non-smoker’s rates, the Company
will make its best efforts to provide the Employee, at no cost (other than
potential income tax) to the Employee, with the maximum amount of term life
insurance it can obtain for the premiums the Company would have paid on a
policy providing a death benefit of $1,000,000 at non-smoker’s rates if the
Employee were qualified for such insurance.

 

6.                                       Termination of Employment.

 

This
Agreement may be terminated prior to the end of the Term in accordance with the
following provisions:

 

(a)                                  Death.  In the
event of the Employee’s death prior to the end of the Term, this Agreement will
automatically terminate.  In such event, the
Employee’s beneficiary or beneficiaries will be entitled to:  (i) all accrued but unpaid Base Salary; (ii) all
earned but unpaid annual bonuses under the Bonus Plan for years prior to the
year of the termination of employment; (iii) a pro rated annual bonus
under the Bonus Plan for the year of the termination of employment (at the rate
he would be entitled to receive under the Bonus Plan if 100% of the annual
target were satisfied); and (iv) all accrued paid time off (collectively,
the “Accrued Benefits”).

 

(b)                                 Disability.  If the
Employee suffers a Disability (as hereinafter defined) prior to the end of the
Term, this Agreement may be terminated at the option of the Company by notice
from the Company to the Employee given at any time after the Employee has
suffered a Disability.  The term “Disability”
shall have the meaning set forth in Section 22(e)(3) of the Internal
Revenue Code of 1986, as amended.  In
such event, such termination will be effective as of the date on which the
Company gives notice to the Employee that it is terminating his employment
hereunder pursuant to this Section 6(b). In such event, the Employee will
be entitled to the Accrued Benefits.

 

(c)                                  For Cause or Not For Good Reason.

 

(i)                                     This Agreement may be terminated prior to
the end of the Term at the option of the Company for Cause (as hereinafter
defined) or by the Employee not for Good Reason (as defined in subsection (d) below),
effective as of the date on which the Company gives notice to the Employee that
it is terminating his employment pursuant to this Section 6(c) or the
date on which the Employee gives notice to the Company that he is terminating
his employment pursuant to this Section 6(c).

 

(ii)                                  The term for “Cause” means any of the
following events:

 

(A)                              fraud, misappropriation or embezzlement
of funds or property by the Employee involving the Company or an Affiliated
Company (as hereinafter defined);

 

(B)                                the conviction of the Employee in any
jurisdiction for any crime which constitutes a felony, or which constitutes a
misdemeanor that involves fraud, moral turpitude or material loss 

 

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to the Company or an Affiliated Company, or
their respective businesses or reputations;

 

(C)                                the Employee’s material misconduct in, or
material neglect of, the performance of his material duties and
responsibilities hereunder, or the Employee’s violation of any reasonable
specific directions of the Superior which directions are consistent with the
provisions of this Agreement; or

 

(D)                               the Employee’s material breach of this
Agreement, including but not limited to the provisions set forth in Sections 7
(Confidential Information), 8 (Restricted Covenants), 9 (Bribery, Extortion or
Kickbacks) and 10 (Intellectual Property) hereof.

 

(iii)                               In the event of the termination of the
Employee’s employment hereunder for “Cause” or by the Employee not for “Good
Reason”, such termination will be effective as of the date of notice of such
termination and the Company will have no further obligations whatsoever hereunder
to compensate the Employee pursuant to the terms of this Agreement other than
with respect to the accrued but unpaid Base Salary, accrued paid time off, and
any accrued benefits under the Company’s benefit plans through the date of
termination.

 

(iv)                              The term “Affiliated Companies”
means all entities that directly or indirectly control, or are controlled by,
the Company, all entities that are under direct or indirect common control with
the Company, and all entities in which the Company has a significant joint
venture or other similar interest.  (Any
entity which is a member of the Affiliated Companies is referred to herein as
an “Affiliated  Company”.)  “Control”
and “controlled” means possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a
corporation, partnership or other entity, whether through ownership of voting
securities, by contract or otherwise.

 

(d)                                 For Good Reason or Without Cause.

 

(i)                                     This Agreement may be terminated prior to
the end of the Term by the Employee for Good Reason (as hereinafter defined) or
at the option of the Company without Cause, effective as of the date on which
the Employee gives notice to the Company that he is terminating his employment
pursuant to this Section 6(d) or as of the date on which the Company
gives notice to the Employee that it is terminating his employment pursuant to
this Section 6(d).

 

(ii)                                  The term “Good Reason” means either of
the following two events:

 

(a)                                  the Company’s material breach of any
provision of the Agreement which breach continues uncured for thirty-five (35)
days after written notice thereof is given to the Company by the Employee, or

 

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(b)                                 a material relocation of the Employee’s
principal place of employment on the Effective Date of this Agreement, provided
that the Company chooses not to rescind such relocation within thirty-five (35)
days after written notice requesting that it be rescinded is given to the
Company by the Employee.

 

In
both cases (a) and (b), the notice of alleged breach or relocation must be
provided to the Company within ninety (90) days of the initial existence of
such condition and the Employee shall only have the right to terminate the
Agreement for Good Reason within six (6) months of the initial existence
of such condition and only if such condition is not cured or rescinded, as the
case may be, prior to such termination.

 

(iii)                               Upon termination of the Employee’s
employment with the Company by the Company without Cause or by the Employee for
Good Reason, the Employee will be entitled to receive from the Company (A) the
Accrued Benefits, (B) the payment of twelve months Base Salary, and (C) the
continuation of health and welfare benefits for twelve months (subject to the
Company’s provider continuing to provide such benefits at similar rates and such
continuing health and welfare benefits being terminated in the event coverage
is provided to the Employee by a subsequent Employer).

 

(e)                                  Release.  A
condition precedent to the Company’s obligations under Section 6(d) will
be the Employee’s execution and delivery of the release of all claims (other
than claims under Section 6(d) of this Agreement and for directors’
and officers’ indemnification) he may have against the Company, its affiliates
and their directors, officers, employees, agents and shareholders which relate
to his employment with the Company and termination of such employment (the “Release”).
Such release must be executed by the Employee within 45 days after receipt of
the release from the Company.

 

(f)                                    Payment Date. 
The Employee will receive all required payments under Sections 6(a) through
6(c) no later than 30 days following the Employee’s termination of
employment, provided however, that the Employee will receive the Accrued
Benefits and the twelve months’ Base Salary no later then ten (10) business
days following the execution and delivery of the Release by the Employee.

 

(g)                                 No Mitigation; No Set-Off.  In the event of the termination of Employee’s
employment by the Company without Cause or by the Employee for Good Reason, the
Employee shall be under no obligation to seek other employment and there shall
be no offset against amounts due to him on account of any remuneration or
benefits provided to him by any subsequent employment he may obtain.  Notwithstanding the preceding, if the
Employee’s employment is terminated by the Company without Cause or by the
Employee for Good Reason, the obligation of the Company to continue to provide
the Employee with heath insurance under Section 6(d) (iii) (C) shall
cease upon coverage by a subsequent employer.

 

(h)                                 Excise Tax. In the event that any payment or benefit made
or provided to or for the benefit of the Employee in connection with this
Agreement or his employment with the Company or the termination thereof (a “Change
of Control 

 

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Payment”) is
determined to be subject to any excise tax (“Excise Tax”) imposed by Section 4999
of the United States Internal Revenue Code of 1986, as amended, (or any
successor to such section), if it is determined that, on an after–Excise Tax
basis, the Employee’s economic benefit would be increased if the Company
reduced the Change of Control Payments to be provided to the Employee to the
extent necessary to avoid the imposition of the Excise Tax, the Company will
reduce such Change in Control Payments to the Employee. The determination
regarding the Excise Tax will be made by an expert on the issues related to the
Excise Tax selected by the Company and approved by the Employee. The same
expert will be used for the determination of any other Excise Taxes due
relating to a Change of Control for any other employee.

 

7.                                       Confidential Information. 
The Employee covenants and agrees that:

 

(a)                                  During the Term and thereafter, he will
keep secret and retain in the strictest confidence all information about
business and financial matters (including, without limitation, information
relating to costs, profits, budgets and plans for future development, strategy,
methods of operation and marketing concepts) of the Company and the Affiliated
Companies, their respective employment policies and plans, and any other trade
secrets and proprietary information relating to the Company, the Affiliated Companies
or their respective operations, business and financial affairs, other than
information which is otherwise generally available to the public other than as
a result of a disclosure by the Employee (collectively, the “Confidential
Information”), and, for such time as the Company or any Affiliated Company
is operating, not disclose any Confidential Information to anyone outside of
the Company or an Affiliated Company, either during or after the term of his
employment by the Company or an Affiliated Company, except:  (i) in the course of performing his
duties hereunder; (ii) with the Company’s express prior written consent;
or (iii) as required by law.

 

(b)                                 The Employee will surrender to the
Company immediately after the termination of his employment hereunder, or at
any time the Company may so request, all memoranda, notes, records, reports,
lists and other documents in whatever form or medium containing, describing or
relating to Confidential Information, together with all copies thereof,
obtained by him or entrusted to him during the course of his employment by the
Company or an Affiliated Company or otherwise in his possession at the time of
such termination or request.

 

8.                                       Restrictive Covenants.

 

(a)                                  Employee covenants and agrees that:

 

(i)                                     except with respect to a Permitted
Investment (as such term is defined below), while employed by the Company and,
if the Employee’s employment with the Company is terminated for any reason
during the Term, for six (6) months after the termination of his
employment with the Company, he will not compete, directly or indirectly, with
the Company or any Affiliated Company, by participating in the direct or
indirect ownership, management, operation or control, whether as an officer,
director, partner, employee, advisor, stockholder, investor, consultant, agent,
independent contractor, lender or otherwise, of any corporation, partnership or
other entity which owns, acquires or seeks to acquire or obtain any franchise,
lease or license, relating to, or is otherwise engaged in, the acquisition of
or planning, design, construction and deployment of fiber optic 

 

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telecommunications services or the provision of
high performance internet connectivity solutions for electronic commerce and
other business critical internet operations or similar business purpose
(collectively “Telecommunications Services”).  As used in this Section 8(a), “Permitted
Investment” means the ownership by the Employee (as the result of open
market purchase(s)) of one (1%) percent or less of any class of capital stock
of a corporation which is regularly traded on a national securities exchange or
over the counter on the NASDAQ system.

 

(ii)                                  for twelve months following termination of
his employment with the Company for any reason whatsoever;

 

(A)                              he will not solicit, in competition with
the Company or any Affiliated Company, any person who is a customer of the
Company or any Affiliated Company; and

 

(B)                                he will not employ or induce or attempt
to persuade any employee of the Company or any Affiliated Company to terminate
his employment relationship in order to enter into competitive employment, or
in any way cause, influence or participate in the employment of any such
individual by anyone else in any business that is competitive with any business
then engaged in by the Company or any Affiliated Company.

 

(b)                                 If any of the restrictions contained or
referenced in this Section 8 is for any reason held by court to be
excessively broad as to duration, activity, geographical scope, or subject,
then such restriction shall be construed or judicially modified so as to
thereafter be limited or reduced to the extent required to be enforceable in
accordance with applicable law; provided, however, that such
court’s determination will not affect the enforceability of Section 8
hereof in any other jurisdiction.

 

(c)                                  If Employee breaches, or threatens to
commit a breach of, any of the provisions of this Section 8 (collectively,
the “Restrictive Covenants”), the Company will have the following rights
and remedies, each of which rights and remedies will be independent of the
other and severally enforceable, and all of which rights and remedies will be
in addition to, and not in lieu of, any other rights and remedies available to
the Company under law or in equity:

 

(i)                                     Specific Performance. 
The right and remedy to seek from any court of competent jurisdiction
specific performance of the Restrictive Covenants or injunctive relief against
any act which would violate any of the Restrictive Covenants, it being
acknowledged and agreed that any breach or threatened breach will cause
irreparable injury to the Company and that money damages will not provide an
adequate remedy.

 

(ii)                                  Accounting.  The
right and remedy to require Employee to account for and pay over to the Company
all compensation, profits, monies, accruals, increments or other benefits
derived or received by the Employee as the result of any transactions
constituting a breach of any of the Restrictive Covenants.

 

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9.                                       Bribery, Extortion and Kickbacks.

 

Employee will not at
any time make or promise to make or accept any payments or transfers of value
which has the purpose or effect of public or commercial bribery, acceptance of
or acquiescence in extortion, kickbacks or other unlawful or improper means of
obtaining or conducting business for the Company.  Employee will not at any time agree that he
will, in connection with his employment or in connection with any other
business transactions involving the Company, make or promise to make any
payment or transfer anything of value, directly or indirectly: (i) to any
governmental official or employee (including employees of government
corporations); (ii) to any political party, official of a political party
or candidate (or to an intermediary for payment to any of the foregoing); (iii) to
any officer, director, employee, or representative of any actual or potential
customer of the Company; or (iv) to any other person or entity.  The foregoing will not prohibit normal and
customary business entertainment or the giving of business mementos of nominal
value.

 

10.                                 Ownership of Intellectual Property.

 

(a)                                  All Inventions (as hereinafter defined),
or patents, trademarks, copyrights, trade secrets or any other rights relating
to any of the foregoing, which have or may have a material importance to the
business of the Company and which are conceived or made by Employee in
connection with his employment with the Company, either alone or with others,
are the sole and exclusive property of the Company whether or not they are
conceived or made during work time for the Company, except to the extent
generally known by persons generally knowledgeable in the fiber optics
telecommunications field.

 

(b)                                 Employee will immediately disclose to the
Company any and all Inventions (whether or not patentable) made or conceived by
the Employee during the Term, either alone or in conjunction with others,
whether or not made or conceived at the request or upon the suggestion of the
Company, whether or not resulting from any work done in the course of
employment, whether or not reduced to practice during the term of employment,
and whether or not made or conceived during or outside of the usual hours of
employment or upon or not upon any premises of the Company.

 

(c)                                  Employee assigns and will hereafter
assign to the Company all present or future right, title and interest in and to
all Inventions referred to above. 
Employee will not disclose any such Inventions to any third party
without the written consent of the Company.

 

(d)                                 At any time and from time to time during
and after the Term, on the request of the Company, without further
consideration Employee will:  (i) execute
specific documents of assignment in favor of the Company, or its nominee, of
any of the Inventions covered hereunder, (ii) execute all papers and
perform all acts the Company considers necessary or advisable for the
preparation, application procurement, maintenance, enforcement and defense of
patent applications and patents of the United States or other jurisdictions of
such Inventions, if applicable, for the perfection or enforcement of any
trademarks, copyrights or trade secrets relating to such Invention, and for the
transfer of any interest the Employee may have in such Inventions, and (iii) execute
any and all papers and comments which the Company considers to necessary to
vest sole right, title and interest in the Company or its nominee in and to 

 

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the above Inventions,
patent applications, patents, or any trademarks or copyright or applications
therefore relating thereto. 
Notwithstanding the foregoing, after termination of employment, Employee
will be entitled to reasonable compensation for more than incidental time and
effort required to be expended by Employee to fulfill his responsibilities
under clause (ii).  Employee will execute
all documents (including those referred to above) and do all other acts which
the Company considers to be necessary to assist in the preservation of all the
Company’s interests in such Inventions.

 

(e)                                  Upon execution of this Agreement,
Employee will provide to the Company, if Employee has not already done so, a
complete written list of all Inventions which have been made or conceived
before his employment with the Company commenced or first reduced to practice
by Employee alone or in conjunction with others prior to employment with the
Company.

 

(f)                                    For purposes of this Section 10, “Invention”
means:  (i) any and all machines, apparatuses,
compositions of matter, methods, know-how, processes, computer programs,
designs, configurations, uses thereof, or writings (in any form or any media)
of any kind, discovered, conceived, developed, made or produced, or any
improvement to the same, and will not be limited to the definition of any
invention contained in the United States Patent law; (ii) all matters
subject to copyright protection under United States law; (iii) all matters
subject to trademark protection under the laws of the United States or those of
any state of the United States or under common law of any jurisdiction within
the United States; and (iv) all matters subject to protection as trade
secrets under the laws or common law of any state of the United States or of
the United States.

 

(g)                                 For purposes of this Section 10, the
term “Work Product” refers to all work product and work-in-progress
generated, created, or developed by Employee in the course of employment,
regardless of the form or medium in which such Work Product is embodied,
including without limitation electronic form and new media.  All Work Product will be deemed work made for
hire as defined by the Copyright Act of 1976. 
As such, all right, title and interest in and to all Work Product will
vest in and remain with the Company from its inception, and Employee will
execute all documents and all acts which the Company considers necessary to
assist in the preservation of the Company’s interest in such Work Product.

 

(h)                                 If a court of competent jurisdiction
determines that the Work Product does not constitute work made for hire,
Employee agrees that this Agreement constitutes a written continuing assignment
by the Employee to the Company of all right, title and interest in and to the
Work Product.

 

11.                                 Enforcement.

 

It is agreed by the
Employee that any breach or threatened breach by the Employee of any provision
of Sections 7, 8, 9 or 10 hereof cannot be remedied solely by damages.  In the event of a breach or threatened breach
by the Employee of any of the provisions of Sections 7, 8, 9 or 10 hereof, the
Company or any Affiliated Company will be entitled to injunctive relief
restraining the Employee and any business, firm, partnership, individual,
corporation or other entity participating in such breach or threatened
breach.  Nothing contained herein will be
construed to prohibit the Company or any Affiliated Company from pursuing any
other remedies available at law or in equity 

 

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for
such breach or threatened breach, including, without limitation, the recovery
of damages.

 

12.                                 Representations and Warranties.

 

(a)                                  The Employee represents and warrants to
the Company that:

 

(i)                                     The Employee has full power and authority
to enter into this Agreement, and this Agreement has been duly and validly
executed and delivered by the Employee and constitutes the legal, valid and
binding obligation of the Employee, enforceable against the Employee in
accordance with its terms;

 

(ii)                                  The execution and delivery of this
Agreement by the Employee and his performance hereunder will not violate any
provision of law and will not conflict with or result in a breach of any
judgment, decree, order, writ, injunction, regulation, ordinance or other
similar document or instrument of any court or governmental authority, and will
not (with or without the giving of notice or lapse of time, or both) violate or
breach any term or condition of, or constitute a default under, any agreement,
document or instrument to which the Employee is a party or by which he is
bound; and

 

(iii)                               The execution and delivery of this
Agreement by the Employee and his performance hereunder do not require the
consent or approval of any other person or entity.

 

(b)                                 The Company represents and warrants to
the Employee that it has full power and authority to execute and deliver this
Agreement and perform its obligations hereunder and this Agreement has been
duly executed and delivered, will be valid and binding as of the Effective Date
and enforceable in accordance with its terms.

 

13.                                 Notices.

 

All notices and other
communications hereunder will be in writing and will be deemed to have been
duly given if delivered by hand, registered or certified mail (first class
postage and fees prepaid, return receipt requested), facsimile or overnight
courier guaranteeing next-day delivery, as follows:

 

(a)                                  If to the Company, one copy to:

 

AboveNet Inc.

360 Hamilton Avenue

White Plains, New York
10601

Attention:  Chief Executive Officer

Fax No.:  (914) 421-7550

 

(b)                                 If to the Employee, one copy to:

 

1 Carriage Lane

New Fairfield, CT
06812

 

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and/or
to such other address as the Company may have on file for the Employee.

 

14.                                 Prior Agreement; Entire Agreement.

 

The Employee and the
Company hereby acknowledge and agree that the terms and provisions of this
Agreement shall replace and supersede the Employment Agreement dated September 12,
2003 as amended.

 

15.                                 Amendment.

 

This Agreement
may not be amended, changed, modified or discharged except by an instrument in
writing executed by or on behalf of the party or parties against whom any
amendment, change, modification or discharge is sought to be enforced.

 

16.                                 Waiver.

 

No failure by any
party to insist upon the strict performance of any covenant, duty, agreement or
condition of this Agreement or to exercise any right or remedy consequent upon
a breach thereof will constitute a waiver of any such breach or of any other
covenant, duty, agreement or condition of this Agreement, any such waiver being
made only by a written instrument executed and delivered by the waiving
party.  Such written waiver by the
Company must be approved by the CEO or the Board.

 

17.                                 Assignability.

 

This Agreement will
not be assignable by the Employee and any purported assignment hereof by the
Employee will be null and void.  This
Agreement will be binding upon, and inure to the benefit of, the Employee and
his heirs, executors, administrators and legal representatives, and the Company
and its successors and assigns.

 

18.                                 Severability.

 

If any of the
covenants contained in this Agreement, including, without limitation, those
contained in Sections 7, 8 or 10 hereof, are hereafter construed to be invalid
or unenforceable in any jurisdiction, the same will not affect the remainder of
the covenant or covenants or their enforceability in any other jurisdiction,
which will be given full force and effect, without regard to the invalid
portions or the enforceability in such other jurisdiction.

 

19.                                 Governing Law.

 

This Agreement will be
governed by, and construed and interpreted in accordance with, the laws of the
State of New York without reference to conflict of laws principles.

 

20.                                 Indemnification and Liability Insurance.

 

The Company agrees to
indemnify the Employee and hold him harmless, both during the Term and
thereafter, to the fullest extent permitted by law and under the 

 

11

 

articles,
by-laws, or other agreements of the Company against and in respect to any and
all actions, suits, proceedings, claims, demands, judgments, costs, expenses
(including reasonable attorneys fees), losses, and damages resulting from the
Employee’s good faith performance of his duties as an officer or director of
the Company, on or after the Effective Date.

 

21.                                 Consent to Jurisdiction and Service of
Process.

 

The parties hereto
irrevocably (a) submit to the exclusive jurisdiction of the courts of the
State of New York or the courts of the United States located in the State of
New York, for the purpose of any suit, action or other proceeding arising out
of this Agreement, and (b) waive to the extent not prohibited by law, and
agree not to assert, by way of motion, as a defense or otherwise, in any such
suit, action or proceeding, any claim that they are not subject to the personal
jurisdiction of the above-named courts, that their property is exempt or immune
from attachment or execution, that any such suit, action or proceeding brought
in one of the above-named courts is brought in an inconvenient forum, that the
venue of any such suit, action or proceeding is improper, or that this
Agreement or the subject matter hereof may not be enforced in or by such court,
and (c) waive the right to a trial by jury in any such suit, action or
proceeding.

 

The Employee hereby
consents to service of process in any such suit, action or proceeding in any
manner permitted by civil practice laws and rules of the State of New
York, and agrees that service of process by registered or certified mail,
return receipt requested, at his address specified in or pursuant to Section 13
hereof is reasonably calculated to give actual notice.

 

22.                                 Costs.

 

Each party to this
Agreement will pay his costs (including legal fees) in connection with
enforcement of this Agreement. However, if the Employee prevails on such
issues, the Company will reimburse the Employee for all reasonable costs,
including legal fees that the Employee incurs. 
Notwithstanding the preceding, the Employee will not be reimbursed if
the Employee challenges the validity of Section 8, regardless of whether
the Employee is successful in such challenge.

 

23.                                 Headings.

 

The headings contained
in this Agreement are for convenience of reference only and in no way define,
limit or describe the scope or intent of this Agreement or in any way affect
this Agreement.

 

24.                                 Construction.

 

(a)                                  For purposes of this Agreement, whenever
the context requires; the singular number will include the plural, and vice
versa; and the masculine gender will include the feminine and neuter genders.

 

12

 

(b)                                 As used in this Agreement, the words “include”
and “including” and variations thereof, will not be deemed to be terms of
limitation, but rather will be deemed to be followed by the words “without
limitation.”

 

25.                                 Counterparts.

 

This Agreement may be
executed in counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument.

 

26.                                 Survivor.

 

Provisions of this
Agreement which by their terms must survive the termination of this Agreement
in order to effectuate the intent of the parties will survive any such
termination, whether by expiration of the Term, termination of Employee’s
employment, or otherwise, for such period as may be appropriate under the
circumstances.  Such provisions include,
without limitation, Section 7, 8, 10 and 11
of this Agreement.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above
written.

 

 

	
   

  	
  ABOVENET,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  William G. LaPerch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
    William
  G. LaPerch

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
     /s/
  Douglas M. Jendras

  
	
   

  	
  Douglas
  Jendras

  

 

13Exhibit
10.20

 

August 28, 2008

 

Mr. Carl Mills

[HOME ADDRESS]

 

Subject:     Transition Agreement

 

Dear Carl:

 

This letter sets forth
our agreement (the “Transition Agreement”) regarding your transition and separation
from employment with QuickLogic Corporation (“QuickLogic”).

 

1.                                       TERMINATION OF EMPLOYMENT.  Your employment with QuickLogic will terminate on the
earlier of (a) the date you commence employment with another employer or
begin work as a consultant on an engagement that requires at least 30 hours of
work per week and is scheduled to last at least three months (“Employment”); (b) the
date that your replacement as Chief Financial Officer at QuickLogic commences
employment with the company, unless QuickLogic requests and you agree to remain
employed for a short transition period to assist the new Chief Financial
Officer in the assumption of his or her duties, in which case the end of that
transition period; or (c) immediately upon written notice by you or
QuickLogic (your “Termination Date”). 
Under any of these scenarios, the termination of your employment will be
reflected on QuickLogic’s personnel records as a voluntary resignation.

 

2.                                       DUTIES, COMPENSATION, AND
BENEFITS PRIOR TO TERMINATION DATE.  During the
period before your Termination Date, you will continue to perform your job
duties as QuickLogic’s Chief Financial Officer under the supervision and
direction of QuickLogic’s Chief Executive Officer and/or Board of Directors and
continue to receive your existing compensation and benefits.  In the event you
agree to remain employed for a short transition period to assist the new Chief
Financial Officer in the assumption of his or her duties as set forth in Section 1(b) above,
you will be given the title of Vice President, Business Development, and continue
to report directly to QuickLogic’s Chief Executive Officer throughout the
agreed upon transition period.

 

3.                                       ACCRUED SALARY; HEALTH-INSURANCE
COVERAGE; STOCK OPTIONS.  Upon your Termination Date, QuickLogic
will pay to you all accrued salary earned as of your Termination Date, less applicable
payroll tax withholding and deductions.  On
the

 

 

date which is the earlier
of your Termination Date or March 13, 2009, you will also receive a
lump-sum payment equal to (a) the difference between an annual base salary
of $200,000 (the “Adjusted Salary”) and your current base salary of $175,000, ratably
adjusted for the period from January 1, 2008, to such date plus (b) the
difference between the 2008 incentives earned based on target incentive
compensation of $80,000 compared with current target incentive compensation of
$75,000 per year, less applicable payroll tax withholding and deductions.  If your Termination Date is after March 13,
2009, you will also receive a lump sum payment equal to (a) the difference
between the Adjusted Salary and your current base salary plus (b) the
difference between 2009 incentives earned based on target incentive
compensation of $80,000 compared with your current target incentive
compensation of $75,000 per year, ratably adjusted for the period from March 14,
2009 to your Termination Date, less applicable payroll tax withholding and
deductions, on your Termination Date, but in no event later than March 13,
2010. In addition, you will receive notice of your right to continue your health-insurance
coverage pursuant to COBRA.  Vesting of
your outstanding QuickLogic stock options will cease as of your Termination
Date, any unvested options will expire as of that time, and any vested options
must be exercised in accordance with the terms of your applicable option
agreements.

 

4.                                       SEPARATION PAYMENTS AND BENEFITS. 
Although QuickLogic has no policy or procedure requiring any separation
payment and benefits, in exchange for your acceptance of this Transition Agreement
and compliance with your obligations under it and, after your Termination Date,
your execution of a Supplemental Release of Claims in the form evidenced by
Appendix A to this Transition Agreement, QuickLogic will provide you with the
following separation payments and benefits:

 

a.                                       Severance pay and benefits.  You
will receive severance pay consisting of your Adjusted Salary and quarterly
variable incentive pay of $20,000 pro-rated for the period from your
Termination Date to the date on which you commence Employment or six months after
your Termination Date, whichever is earlier, less applicable payroll tax
withholding and deductions.  For the same
severance period, you will receive reimbursement of your COBRA premiums
(assuming you have elected COBRA continuation of your health-insurance
coverage).  Your severance pay and your
COBRA-premium reimbursement will be payable in accordance with QuickLogic’s
regular payroll schedule commencing on the first payroll date after the
Effective Date of your Supplemental Release of Claims.  You will notify QuickLogic if you commence Employment
with another employer prior to the expiration of this transition period.  If you fail to notify QuickLogic of such Employment,
you will repay to QuickLogic the amount of Adjusted Salary and COBRA-premium reimbursement
that you received since the date that such Employment commenced. If on March 13,
2009, you have not commenced Employment and have not received six months of
severance payments and COBRA-premium reimbursement as described above, you will
receive on March 13, 

 

2

 

2009 a lump sum
payment equal to the difference between six months of such severance pay and
COBRA-premium reimbursement and any such severance pay and COBRA-premium
reimbursement you have already received.

 

b.                                      Incentive Payments.  You will
receive incentive payments for the quarter in which your Termination Date
occurs, pro-rated to your Termination Date. 
The incentive payments
will be made after the Effective Date of the Transition Agreement as set forth
below, be payable in accordance with QuickLogic’s regular payroll schedule, and
be paid less standard payroll deductions and withholdings.  Payments will be based on
the formula approved for 2008 executive bonus and variable incentive compensation
to be paid in accordance with the 2005 Executive Bonus Plan.

 

5.                                      OUTPLACEMENT SUPPORT.  You
will receive executive outplacement and job search support in an amount not to
exceed $15,000.

 

6.                                      EMPLOYMENT REFERENCES. 
You will refer all employment reference inquiries to QuickLogic’s Vice
President of Human Resources and Development, who will confirm the dates of
your employment and positions held or to E. Thomas Hart, QuickLogic’s Chief
Executive Officer, whom you have authorized to provide a general reference.

 

7.                                       RETURN OF COMPANY PROPERTY.  By
no later than your Termination Date, you will return to QuickLogic all company
property and documents (originals and copies) in your possession or control,
including, but not limited to, files, notes, memoranda, correspondence,
records, reports, financial information, computer-recorded information,
tangible property, credit cards, entry cards, and identification badges and
keys; and any other materials of any kind that contain or embody any
proprietary or confidential material (originals and copies) belonging to
QuickLogic.

 

8.                                       INTERNAL REVENUE CODE SECTION 409A. 
Notwithstanding any other provision of this Transition Agreement, if a
delay in making any payment or providing any benefit under this Transition Agreement
is required by Internal Revenue Code Section 409A and any Treasury
Regulations, and IRS guidance thereunder, or necessary in our good faith
judgment, to avoid you incurring additional tax under Section 409A, such
payments or benefits shall not be paid or provided until the end of six months
following your Termination Date in accordance with Code Section 409A.

 

9.                                      CONFIDENTIAL AND PROPRIETARY
INFORMATION.  You will continue to maintain the
confidentiality of all confidential and proprietary information of QuickLogic
and will continue to comply with the terms and conditions of your Employment
Proprietary Information, Invention & Arbitration Agreement  (the “Employment Agreement”), a copy of which is attached
to this Transition Agreement as Appendix B.

 

3

 

10.                                NON-SOLICITATION. 
For a period of 12 months immediately following the Effective Date of
this Transition Agreement, you will not, either directly or indirectly,
solicit, induce, recruit or encourage any of QuickLogic’s employees or
consultants to leave their employment, or attempt to do so, either for yourself
or any other person or entity.

 

11.                               NON-DISPARAGEMENT. 
You will not disparage QuickLogic, its business, or its products, or its
directors, shareholders, and employees, provided that you will respond
truthfully to any questions, inquiry, or request for information when required
by legal process.  QuickLogic
agrees, through its officers and directors, that it will not make any voluntary
statements, written or oral, or cause or encourage others to make any such
statements to any third party that defame, disparage, or in any way criticize your
personal and/or business reputation, practices or conduct.  “Third party” as used in this paragraph means
(a) someone not employed by or affiliated with QuickLogic; or (b) someone
employed by or affiliated with QuickLogic who does not have a legitimate
business need to receive the statement by QuickLogic.

 

12.                               CONFIDENTIALITY.  You will hold in strictest confidence the terms and
conditions of this Transition Agreement, including the fact and amounts of the
separation payment and benefits made under it, and will not disclose or
publicize that information in any manner whatsoever; provided, however, you may
disclose that information in confidence to: (a) your spouse; (b) your
attorney, accountant, auditor, tax preparer, and financial advisor; and (c) an
arbitrator or court insofar as is necessary to pursue or defend any action
relating to the Transition Agreement.  You
may also disclose that information as otherwise required by law.  In particular, and without limitation, you
will not discuss this Transition Agreement with current or former QuickLogic
employees or other personnel, other than the Chief Executive Officer of
QuickLogic, or any other officer of QuickLogic authorized to discuss the
Transition Agreement with you.

 

13.                                RELEASE OF CLAIMS.

 

a.                                       In consideration of the separation
payment and benefits you will receive under this Transition Agreement, you
fully and forever release, on behalf of yourself and your heirs, family
members, executors, agents, and assigns, QuickLogic and its officers,
directors, employees, agents, investors, shareholders, administrators,
affiliates, divisions, subsidiaries, predecessor and successor corporations,
and assigns (“the Releasees”) from, and agree not to sue any of them
concerning, any claim, duty, obligation or cause of action relating to any
matters of any kind, whether presently known or unknown, suspected or
unsuspected, that you possess or may possess arising from any alleged
omissions, acts, or events that have occurred up until and including the
Effective Date of this Transition Agreement including, without limitation:

 

4

 

(1)                                  any and all claims relating to or arising
from your employment relationship with QuickLogic and the termination of that
relationship;

 

(2)                                  any and all claims relating to, or
arising from, your right to purchase, or actual purchase of shares of stock of
QuickLogic, including, without limitation, any claims for fraud,
misrepresentation, breach of fiduciary duty, breach of duty under applicable
state corporate law, and securities fraud under any state or federal law;

 

(3)                                  any and all claims under the law of any
jurisdiction including, but not limited to, wrongful discharge of employment;
constructive discharge from employment; termination in violation of public
policy; discrimination; breach of contract, both express and implied; breach of
a covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; negligent
or intentional misrepresentation; negligent or intentional interference with
contract or prospective economic advantage; unfair business practices;
defamation; libel; slander; negligence; personal injury; assault; battery;
invasion of privacy; false imprisonment; and conversion;

 

(4)                                  any and all claims for violation of any
federal, state or municipal statute, including, but not limited to (as
amended), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of
1991, the Age Discrimination in Employment Act of 1967, the Americans with
Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the
Worker Adjustment and Retraining Notification Act, the Family and Medical Leave
Act, the California Fair Employment and Housing Act, and the California Family
Rights Act;

 

(5)                                  any and all claims for violation of the
federal, or any state, constitution;

 

(6)                                  any and all claims arising out of any
other laws and regulations relating to employment or employment discrimination;

 

(7)                                  any claim for any loss, cost, damage, or
expense arising out of any dispute over the non-withholding or other tax
treatment of any of the proceeds received by Employee as a result of this Transition
Agreement; and

 

(8)                                  any and all claims for attorneys’ fees
and costs.

 

5

 

b.                                      This release of
claims does not extend to any claim for unemployment insurance benefits; any
claim for workers’ compensation benefits; claims under division 3, article 2 of
the California Labor Code (which includes California Labor Code section 2802
regarding indemnity for necessary expenditures or losses by employee); any
claims that you currently have or in the future may have for indemnification
(statutory, equitable, contractual, pursuant to QuickLogic’s governing
documents, or otherwise) or contribution; and any claim that by law may not be
waived by private agreement without judicial or governmental supervision.

 

c.                                       This release will be and remain in effect
in all respects a complete general release as to the matters released.  This release does not extend to any
obligations incurred under this Transition Agreement.

 

d.                                      You acknowledge
that by granting this release, you are waiving claims that you know about as
well as all other claims.  You therefore
are waiving California Civil Code section 1542, which states:

 

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 to him or her
must have materially affected his or her settlement with the debtor.

 

e.                                       QuickLogic hereby represents and warrants
that it currently is not aware of any acts, facts or circumstances that give
rise to any claims it may have against you.

 

14.                                 ARBITRATION.  Any and all disputes arising out of the
terms of this Transition Agreement, their interpretation, and any of the
matters released under this Transition Agreement, will be subject to binding
arbitration in Santa Clara County before the American Arbitration Association
under its National Rules for the Resolution of Employment Disputes
supplemented by the California Code of Civil Procedure.  The prevailing party in any arbitration will
be entitled to injunctive relief in any court of competent jurisdiction to
enforce the arbitration award.  The
prevailing party in any arbitration shall be awarded the party’s reasonable
attorneys’ fees and costs.  QuickLogic
and you waive the right to have any dispute between us resolved in a court of
law by a judge or jury.  This paragraph
will not prevent either of you or QuickLogic from seeking provisional injunctive
relief from any court having jurisdiction over you and QuickLogic and the
subject matter of any dispute relating to obligations under this Transition Agreement
and your Confidentiality Agreement.

 

6

 

15.                                 OTHER TERMS.

 

a.                                       This Transition Agreement, including the
attached Employment Agreement, the attached Indemnification Agreement between
you and QuickLogic dated August 3, 2005, and, when executed, the
Supplemental Release of Claims, constitutes the complete, final, and exclusive
embodiment of the entire agreement between you and QuickLogic with regard to
the subject matter of the Transition Agreement. 
It is entered into without reliance on any promise or representation,
written or oral, other than those expressly contained in the Transition Agreement.

 

b.                                      The Transition Agreement may not be
modified or amended except in writing, signed both by you and a duly authorized
officer of QuickLogic.

 

c.                                       The Transition Agreement will bind the
heirs, personal representatives, successors, and assigns of both you and
QuickLogic, and inure to the benefit of both you and QuickLogic and their
respective heirs, successors and assigns.

 

d.                                      The Transition Agreement will be deemed
to have been entered into and will be construed and enforced in accordance with
the laws of the State of California as applied to contracts made and to be
performed entirely within the State of California.

 

e.                                       This Transition Agreement constitutes a
compromise and settlement of actual or potential disputed claims.  No action taken by you or QuickLogic, either
previously or in connection with this Transition Agreement, will be deemed or
construed to be:

 

(1)                                  an admission of the truth or falsity of any claims
made or any potential claims; or

 

(2)                                  an acknowledgment or admission by either of you or
QuickLogic of any fault or liability whatsoever to the other or to any third
party.

 

f.                                         In the event that QuickLogic believes
that you have failed to comply with the terms of this Transition Agreement,
QuickLogic shall provide you written notice, with reasonable particularity of
its position and the basis therefore, and a 5-business day period from receipt
by you of the written notice (the “Notice Period”) to respond to the written
notice and/or to cure any alleged failure to comply with the terms of this
Transition Agreement.  QuickLogic shall
not attempt to recover any of the severance payment and benefits provided to
you under this Transition Agreement unless it believes, in good faith, that you
have failed to cure and remain in active noncompliance with the terms of this
Transition Agreement following the expiration of the Notice Period.  Any written 

 

7

 

notices issued pursuant
to this paragraph shall be delivered to you at the address listed for you at
the beginning of this Transition Agreement, by messenger, overnight courier or
registered/certified mail, or to such other updated address that you provide to
QuickLogic for these purposes.

 

g.                                      If any provision of this Transition Agreement
is determined to be invalid or unenforceable, in whole or in part, then this
determination will not affect any other provision of the Transition Agreement,
and the provision in question shall be modified by the court so as to be
rendered enforceable.

 

h.                                      The failure by QuickLogic to insist upon
the performance of any of the terms and conditions in this Transition Agreement,
or its failure to prosecute any breach of any of the terms and conditions of
this Transition Agreement, will not be construed later as a waiver of any such
terms or conditions, and this entire Transition Agreement will remain in full
force and effect.

 

i.                                          We each will bear own costs, expert fees,
attorneys’ fees and other fees incurred in connection with this Transition Agreement,
except as provided in this Transition Agreement.

 

j.                                          The section and paragraph headings
contained in this Transition Agreement are for reference purposes only and will
not affect in any way the meaning or interpretation of this Transition Agreement.

 

16.                                 YOUR KNOWING AND VOLUNTARY ACCEPTANCE OF AGREEMENT.

 

a.                                       You acknowledge and agree that you were provided
with twenty-one (21) days in which to consider the original version of this Transition
Agreement and that you waive the recommencement of the 21-day period on account
of changes made to the original version.

 

b.                                      You are advised to consult an attorney
about this Transition Agreement.

 

c.                                       If you accept this Transition Agreement,
you then will have an additional seven (7) days in which to revoke your
acceptance, which you would do by sending me a written notice of
revocation.  If you do not timely revoke
your acceptance of this Transition Agreement, then the first day after
expiration of the 7-day revocation period will be the Effective Date of this Transition
Agreement.

 

d.                                      You acknowledge that this Transition Agreement
is executed voluntarily and without any duress or undue influence, and with the
full intent of releasing all claims.  You
further acknowledge that:

 

8

 

(1)                                  you have read this Transition Agreement;

 

(2)                                  you understand the terms and consequences of this Transition
Agreement and of the releases it contains; and

 

(3)                                  you are fully aware of the legal and binding effect of
this Transition Agreement.

 

If this Transition Agreement
is acceptable to you, please sign in the space provided below and return it to
me by September 3, 2008.  All
obligations of QuickLogic under this Transition Agreement are contingent upon
the occurrence of the Effective Date, as defined above.

 

On behalf of
QuickLogic, I wish you much success in your future endeavors.

 

Sincerely,

 

QUICKLOGIC
CORPORATION

 

 

	
  By:

  	
  /s/ E. Thomas Hart

  	
   

  
	
   

  	
  E. Thomas Hart

  	
   

  
	
   

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED AND ACCEPTED:

  	
   

  
	
   

  	
   

  
	
  /s/ Carl M. Mills

  	
   

  
	
  Carl M. Mills

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated: 28 Aug, 2008

  	
   

  

 

9

 

EXHIBIT A

 

SUPPLEMENTAL
RELEASE OF CLAIMS

 

 

SUPPLEMENTAL
RELEASE OF CLAIMS (“SUPPLEMENTAL RELEASE”)

 

YOU ARE
ADVISED TO CONSULT AN ATTORNEY ABOUT THIS SUPPLEMENTAL RELEASE

 

1.                                      In exchange for valuable consideration,
the receipt of which is hereby acknowledged, I hereby fully and forever
release, on behalf of myself and my heirs, family members, executors, agents,
and assigns, QuickLogic Corporation (“QuickLogic”) and its officers, directors,
employees, agents, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, predecessor and successor corporations, and assigns (“the
Releasees”) from, and agree not to sue any of them concerning, any claim, duty,
obligation or cause of action relating to any matters of any kind, whether
presently known or unknown, suspected or unsuspected, that I possess or may
possess arising from any alleged omissions, acts, or events that have occurred
up until and including the Effective Date of this Supplemental Release, without
limitation:

 

a.                                       any and all claims relating to or arising
from my employment relationship with QuickLogic and the termination of that
relationship;

 

b.                                      any and all claims relating to, or
arising from, my right to purchase, or actual purchase of shares of stock of
QuickLogic, including, without limitation, any claims for fraud,
misrepresentation, breach of fiduciary duty, breach of duty under applicable
state corporate law, and securities fraud under any state or federal law;

 

c.                                       any and all claims under the law of any
jurisdiction including, but not limited to, wrongful discharge of employment;
constructive discharge from employment; termination in violation of public
policy; discrimination; breach of contract, both express and implied; breach of
a covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; negligent
or intentional misrepresentation; negligent or intentional interference with
contract or prospective economic advantage; unfair business practices;
defamation; libel; slander; negligence; personal injury; assault; battery;
invasion of privacy; false imprisonment; and conversion;

 

d.                                      any and all claims for violation of any
federal, state or municipal statute, including, but not limited to (as
amended), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of
1991, the Age Discrimination in Employment Act of 1967, the Americans with
Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974,
the Worker Adjustment and Retraining Notification Act, the Family and Medical
Leave Act, the California Fair Employment and Housing Act, and the California
Family Rights Act;

 

e.                                       any and all claims for violation of the
federal, or any state, constitution;

 

f.                                         any and all claims arising out of any
other laws and regulations relating to employment or employment discrimination;

 

 

g.                                      any claim for any loss, cost, damage, or
expense arising out of any dispute over the non-withholding or other tax
treatment of any of the proceeds received by Employee as a result of this
Agreement; and

 

h.                                      any and all claims for attorneys’ fees
and costs.

 

2.                                      This Supplemental Release will be and
remain in effect in all respects a complete general release as to the matters
released.  This release does not extend
to any obligations incurred under my Transition Agreement with QuickLogic.

 

3.                                       I acknowledge that by granting this
release, I am waiving claims that I know about as well as all other
claims.  I therefore am waiving
California Civil Code section 1542, which states:

 

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 to him or
her must have materially affected his or her settlement with the debtor.

 

4.                                       This Supplemental Release does not extend
to any claim for unemployment insurance benefits; any claim for workers’
compensation benefits; any claims under Division 3, Article 2 of the
California Labor Code (which includes California Labor Code section 2802
regarding indemnity for necessary expenditures or losses by employee) and any
claim that by law may not be waived by private agreement without judicial or
governmental supervision.  Similarly,
this Supplemental Release does not extend to any claims that you currently have
or in the future may have for indemnification (statutory, equitable,
contractual, pursuant to the QuickLogic’s governing documents, or otherwise) or
contribution.

 

5.                                       I acknowledge and agree that I have been
provided with twenty-one (21) days in which to consider this Supplemental
Release, although I am free to accept it at anytime within that 21-day period.

 

6.                                       If I accept this Supplemental Release, I
then will have an additional seven (7) days in which to revoke my acceptance,
which I may do by sending the Chief Executive Officer of QuickLogic a written
notice of revocation.  If I do not timely
revoke my acceptance of this Supplemental Release, then the first day after
expiration of the 7-day revocation period will be its Effective Date.

 

7.                                       I acknowledge that this Supplemental Release
is executed voluntarily and without any duress or undue influence, and with the
full intent of releasing all claims.  I further
acknowledge that:

 

a.                                       I have read this Supplemental Release;

 

b.                                      I understand the terms and consequences
of this Supplemental Release; and

 

2

 

c.                                       I am fully aware of the legal and binding
effect of this Supplemental Release.

 

	
  AGREED AND ACCEPTED:

  	
   

  
	
   

  	
   

  
	
  Dated:
                        ,
  2008.

  	
   

  
	
   

  	
  Carl M. Mills

  

 

3

 

EXHIBIT B

 

EMPLOYMENT
PROPRIETARY INFORMATION, INVENTION & ARBITRATION AGREEMENT

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