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PATRIOT SCIENTIFIC CORPORATION
EXHIBIT 10.10
Employment Agreement dated November 20, 1995 between the Company and
Xxxxxx Xxxxxx
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EMPLOYMENT AGREEMENT
THIS AGREEMENT is entered into as of the 20th day of November, 1995, between
PATRIOT SCIENTIFIC CORPORATION, a Delaware publicly traded corporation (the
"Company"), and Xxxxxx Xxxxxx ("Employee").
Employee, in consideration of the covenants and agreements hereinafter
contained, agrees as follows with respect to the employment of the Company of
Employee and Employees future business activities.
1. Employment: Term of Employment. The Company hereby employs Employee and
Employee hereby accepts such employment upon the terms and conditions
hereinafter set forth. Subject to the provisions for termination as hereinafter
provided, Employee's term of employment by the Company shall be from the date of
this agreement until November 19, 1998, and said employment shall continue after
such date until either party shall deliver written notice to the other party
hereto to the effect that the employment hereunder shall terminate thirty (30)
days from the giving of such notice. This Agreement will supersede all prior
written and oral agreements entered into by and between Company and Employee.
2. Services to be Rendered by Employee. Employee shall, subject to and pursuant
to the orders and directions of Company, perform the duties of Secretary and
Treasurer of the Company and/or such other management duties on behalf of the
Company and its subsidiaries and affiliates, as may be assigned to him from time
to time by the Company in substitution for the aforementioned duties and which
are the same as or similar to his duties as presently conducted. Employee shall
devote a sufficient amount of his productive time, energy and ability during the
term of this Agreement to the proper and efficient conduct of the Company's
business during the term of this Agreement however the Employee shall be only
required to devote part time and attention to the Company's business as
heretofore provided but in any event not to exceed 10 hours per week unless
otherwise agreed by the parties.
Employee shall at all times faithfully, industriously, and to the best of his
ability, experience and talent, perform the duties that may be reasonably
required to the reasonable satisfaction of the Company. Such duties shall be
rendered at such times and at such places as the Company shall in good faith
determine is in the interest, needs, business, and opportunities of the Company.
As is the present case, Employee may from time to time work for other persons or
entities in any capacity, including but not limited to an officer, director,
employee or consultant, and conduct other business activities so long as such
work or activities do not adversely and directly impact on his duties and
obligations to the Company as has been reasonably performed in the past. The
Company acknowledges that Employee is an officer and director of Xxxxxx
Communications Corp. and American Technology Corporation and has duties thereto.
3. Compensation.
(a) For the services to be rendered by Employee during his employment by the
Company, the Company shall pay Employee a yearly original Base Salary of twenty
six thousand dollars ($26,000.00); and thereafter the yearly Base Salary shall
increase by five percent (5%) on each Company's fiscal anniversary date,
commencing June 1, 1996, from the yearly Base Salary for the immediately
preceding fiscal period. The Base Salary shall be payable in equal installments
at such times as other employees are paid but in any case at least in monthly
installments. The Base Salary shall be subject to other upward adjustment by and
under the direction of the Board of Directors in its sole discretion.
(b) Employee shall be entitled to participate in any bonus pool or similar
program established by the Board of Directors.
(c) Employee shall be entitled to participate in group life, medical, disability
and other plans or benefits, if any, maintained by the Company for its executive
employees. During the term of this Agreement, the Employee shall be entitled to
four weeks vacation per annum.
(d) The Company shall pay or reimburse Employee for all expenses normal
reimbursed by the Company and reasonably incurred by him in furtherance of his
duties hereunder and authorized by the Company, including without limitation,
expenses for entertainment, traveling, meals, hotel accommodations and the like
upon submission by him of vouchers or an itemized list thereof as the Board of
Directors; may from time to time adopt and authorize, and as say be required in
order to permit such payments as proper deductions to the Company under the
Internal Revenue Code of 1986 and the rules and regulations adopted pursuant
thereto now or hereafter in effect.
4. Termination of Employment.
(a) The Company shall have the right at its option to terminate the employment
of Employee hereunder by giving written notice thereof to the Employee in the
event of any of the following:
(1) If the Board of Directors of the Company, or a duly authorized
committee thereof, acting in good faith and upon reasonable grounds,
determines that the Employee has materially breached any provision of
this Agreement or has committed dishonesty, fraud or embezzlement, or
engaged in material misconduct or similar conduct in connection with
his duties under this Agreement.
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(2) If the Company gives Employee thirty days advance written notice of
termination of employment.
(3) If the Employee dies (in which case except as otherwise provided
herein, this Agreement shall automatically terminate).
(4) If the Employee is unable for any reason to carry out or to perform
the duties required of him hereunder and does not resume his duties
prior to the termination date specified in the Company's written notice
of termination; provided, however, if the Employee shall fail to carry
out or to perform the duties required of him because of mental or
physical disability for a six consecutive month period during the term
hereof and following such period he is unable to perform his duties
hereunder because of mental or physical disability, as determined by
the Board of Directors of the Company, or a duly authorized committee
thereof, acting in good faith and upon reasonable grounds, or if this
Agreement is terminated because of the Employee's death he or his
estate shall be entitle to receive his then Base Salary he would
otherwise be entitled to hereunder during the term of this Agreement
pursuant to Paragraph 3 hereof for a period of not longer than twelve
(12) months after the termination of his employment pursuant to this
Paragraph 4(a) (4) or for a period not longer than twelve (12) months
after such death.
(5) If this Agreement is terminated by the Company and the Employee's
employment is terminated by the Company pursuant to Paragraph 4(a)(2)
hereof, then Employee shall be entitled to severance payments equal to
twenty four (24) months of his then monthly Base Salary payable in one
lump sum within thirty (30) days after such effective termination of
Employee's employment by the Company irrespective of the remaining term
of this agreement.
(b) The Employee shall have the right at his sole option to terminate employment
hereunder under the following conditions:
(1) at any time upon thirty (30) days written notice.
(2) upon written notice by Employee to the Company within thirty (30)
days of and indicating that a change in control of the Company has
occurred and therefore Employee elects to terminate as provided herein.
A change in control of the Company shall mean a change in control of a
nature that would be required to be reported in response to Item 5(f)
of Schedule 14A of Regulation 14A promulgated under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"); provided that ,
without limitation, such a change in control shall be deemed to have
occurred if (i) any "person" (as such term is used in Sections 13(d)
and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing 25% or more of the combined
voting power of the Company's then outstanding securities; or (ii)
during any period of two (2) consecutive years from the date of this
Agreement, individuals who at the beginning of such period constitute
the Board of Directors of the Company cease for any reason to
constitute at least a majority thereof unless the election, or the
nomination for election by the Company's stockholders, of each new
director was approved by a vote of at least two-thirds of the directors
then still in office who were directors at the beginning of the period.
(3) if termination by the Employee is pursuant to 4 (b) (1) then no
severance or termination payments shall be payable. If termination is
noticed pursuant to 4 (b) (2) hereof then Employee shall be entitled to
the same payments in the same manner provided in 4 (a) (5) described
above. In addition, the Employee shall be entitled to recover legal
fees and costs incurred by Employee should the Company not make timely
payment prescribed by this section and should the Employee prevail in
any action filed thereabout.
5. Trade Secrets of the Company. The Employee prior to and during the term of
employment under this Agreement has had and will have access to and become
acquainted with various trade secrets, consisting of devices, secret inventions,
processes, and compilations of information, records, and specifications which
are owned by the Company, and which are regularly used or to be used in the
operation of the business of the Company. The Employee shall not disclose any of
the aforesaid trade secrets, directly or indirectly, or use them in any way,
either during the term of this agreement or at any time thereafter, except as
required in the course of his employment. All files, records, documents,
drawings, specifications, equipment, and similar items relating to the business
of the Company, whether prepared by the Employee or otherwise coming into his
possession, shall remain the exclusive property of the Company and shall not be
removed under any circumstances from the premises of the Company where the work
is being carried on without prior written consent of the Company or consistent
with the Company's normal business practices.
6. Stock Options. The stock option agreements between the Company and Employee
aggregating exercise into 100,000 common shares that are presently in force
shall remain in full force and effect in accordance with their respective terms
and without any further change or modification during the term of this agreement
and for two years after any termination by the Employer (such period to be an
advisory period) during which period the options will still remain exercisable.
In addition the Company agrees that if it should cause the registration of any
stock options of any other senior officers that it will include the shares of
Employee, not previously the subject of a current registration statement, with
any such registration on
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a prorata basis at no cost to Employee. Further, in the event of any corporate
event affecting stock options, the options of Employee will be treated
equivalently with those of any senior officers of the Company.
7. Severability. Each paragraph and subparagraph of this Agreement shall be
construed and considered separate and severable from the validity and
enforceability of any other provision contained in this Agreement.
8. Assignment. The rights of the Company (but not its obligations) under this
Agreement may, without the consent of the Employee, be assigned by the Company
to any parent, subsidiary, or successor of the Company; provided that such
parent, subsidiary or successor acknowledges in writing that it is also bound by
the terms and obligations of this Agreement. Except as provided in the preceding
sentence, the Company may not assign all or any of its rights, duties or
obligations hereunder without prior written consent of Employee. The Employee
may not assign all or any of his rights, duties or obligations hereunder without
the prior written consent of the Company.
9. Notices. All notices, requests, demands and other communications shall be in
writing and shall be defined to have been duly given if delivered or if mailed
by registered mail, postage prepaid:
(a) If to Employee, addressed to him at the following address as may be changed
in writing from time to time:
Xxxxxx Xxxxxx
00000 Xxxxxx Xxx
Xxxxx, Xxxxxxxxxx 00000
(b) If to the Company, addressed to:
Patriot Scientific Corporation
00000 Xxxxxxxxxxxx Xxxxx, #000
Xxxxx, Xxxxxxxxxx 00000
or to such other address as any party hereto may request by notice given as
aforesaid to the other parties hereto.
10, Title and Headings. Titles and headings to paragraphs hereof are for
purposes of references only and shall in no way limit, define or otherwise
affect the provisions hereof.
11. Governing Law. This Agreement is being executed and delivered and is
intended to be performed in the State of California, and shall be governed by
and construed in accordance with the laws of the State of California.
12. Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. It shall not be necessary
in making proof of this Agreement to produce or account for more than one
original counterpart.
13. Entire Agreement. This Agreement contains the entire agreement of the
parties hereto and may be modified or amended only by a written instrument
executed by parties hereto. Effective on the date hereof, any prior employment
agreements between the Company and the Employee shall terminate.
14. Good Faith. Each of the parties hereto agrees that he or it shall act in
good faith in all actions taken under this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first above written.
XXXXXX X. XXXXXX November 20, 1995
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Xxxxxx X. Xxxxxx, President and CEO Date
XXXXXX XXXXXX November 20, 1995
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Xxxxxx Xxxxxx, Employee Date
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