RELEASE AGREEMENT

EXHIBIT 10.16

RELEASE AGREEMENT

[TO BE SIGNED ON OR WITHIN 21-DAYS AFTER DECEMBER 31, 2004]

I resigned from my position with SBE, Inc. (the "COMPANY"), and my employment

with the Company in all capacities will terminate effective December 31, 2004

(the "SEPARATION DATE"). The Company has agreed that, if I provide continued

employment service to the Company through December 31, 2004, train my successor

as necessary or appropriate or as requested by the Company's Board of Directors,

and sign and abide by the terms of this Release Agreement (the "RELEASE"), the

Company will pay me severance in the amount of $250,000, less legally required

withholdings and deductions and shall grant me an option to purchase 75,000

shares of the Company's common stock, which option shall vest on a monthly basis

measured from the date of grant through to March 31, 2006. The severance amount

will be paid in the form of continuing base salary payments, paid in equal

semi-monthly installments over a twelve month period on the Company's customary

payroll payment dates, commencing on the first payroll date after the Effective

Date (as hereinafter defined) of this Release and the option grant shall be made

on the Effective Date of this Release. In addition to the severance benefits

described above, the Company will pay me all accrued salary and vacation earned

through the Separation Date, to which I am entitled by law.

In consideration for the severance benefits I am receiving under this Release to

which I am not otherwise entitled, I hereby release the Company and its

officers, directors, agents, attorneys, employees, shareholders, and affiliates

from any and all claims, liabilities, demands, causes of action, attorneys'

fees, damages, or obligations of every kind and nature, whether they are known

or unknown, arising at any time prior to and including the date I sign this

Release. This general release includes, but is not limited to: (1) all claims

arising out of or in any way related to my employment with the Company or the

termination of that employment (including, but not limited to, any claims or

rights I may have under any agreement or contract which provides for payment

upon termination of emplo