This Separation Agreement (“Agreement”) is entered into by and between Douglas C. Spreng (“Mr. Spreng”) and Applied
Micro Circuits Corporation (“AMCC” or “Company”).
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
C. Mr. Spreng is currently AMCC’s President and Chief Operating Officer (“COO”), and a member of its Board of
D. Mr. Spreng desires to retire from the Company and the parties desire to set forth the terms upon which Mr. Spreng will
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 wi