EMPLOYMENT AGREEMENT
Agreement made as of the 6th day of November, 2000 (the "Effective Date"),
by and between Cylink Corporation, a California corporation with its principal
place of business at 0000 Xxx Xxxxxx, Xxxxx Xxxxx, Xxxxxxxxxx 00000 (the
"Company"), and R. Xxxxxxxxxxx Xxxxxxxxxxxxx residing at 00 X. Xxxxxx Xxxxxx,
Xxxxxx #000, Xxx Xxxxx, XX 00000 (the "Executive").
W I T N E S S E T H :
WHEREAS, the Company desires to employ Executive as Vice President Finance
and Chief Financial Officer, and Executive is willing to serve in such capacity;
and
WHEREAS, the Company and Executive desire to set forth the terms and
conditions of such employment.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, the Company and Executive agree as follows:
1. Employment.
1.1. The Company hereby agrees to employ Executive, and Executive agrees to
be employed by the Company, on the terms and conditions herein contained, as of
the Effective Date, as its Vice President Finance and Chief Financial Officer,
and in such other executive capacities assigned by the Chief Executive Officer
which are not inconsistent with Executive's duties. Executive's duties,
authority and responsibilities shall be commensurate with those of a similar
position for another company similar in
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size and business. During the term of Executive's employment, he shall be based
at the Company's principal office; provided, however, that Executive shall be
required to travel as reasonably necessary in connection with the official
business of the Company. Executive shall maintain his permanent residence within
the surrounding community. If so requested by the Chief Executive Officer,
Executive shall also serve as an officer of the Company's affiliated entities
without additional compensation.
1.2. The Executive shall devote substantially all of his business time,
energy, skill and efforts to the performance of his duties and shall faithfully
serve the Company to the best of his abilities in a diligent, trustworthy,
businesslike and efficient manner. The foregoing shall not prevent Executive
from participating in not-for-profit activities or from managing his passive
personal investments provided that these activities do not materially interfere
with Executive's obligations hereunder.
2. Term of Employment.
Executive's employment under this Agreement shall be for a term (the
"Employment Term") commencing on the "Effective Date" and terminating, unless
otherwise terminated earlier as provided in this Agreement, on November 6, 2005
(the "Original Employment Term"), provided that the Employment Term shall be
extended (subject to earlier termination as provided in this Agreement) for
additional one (1) year perio2ds (the "Additional Terms"), unless, at least
thirty (30) days prior to the end of the
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Original Employment Term or any Additional Term, the Company or the Executive
has notified the other in writing that the Employment Term shall expire at the
end of the then current term. If and when this Agreement is so extended, the
term "Employment Term" used in this Agreement shall include all such extensions.
The Executive's obligations concerning the Company's Inventions, Confidential
Information, not to compete or solicit the Company's customers or employees, and
the Company's obligations to provide indemnification, as provided elsewhere in
this Agreement, shall survive and remain in effect notwithstanding the
termination of the Employment Term or a breach of this Agreement by either the
Company or the Executive.
3. Compensation.
3.1. As compensation for his services under this Agreement, the Company
shall pay Executive an annual salary of $175,000 ("Base Salary"). Such Base
Salary shall be payable in equal installments (not less frequently than monthly)
and subject to withholding in accordance with the Company's normal payroll
practices.
3.2. Executive's Base Salary may be increased from time to time by the
Chief Executive Officer, but solely in his discretion and not as an implied
obligation of this Agreement. Executive's Base Salary may also be decreased from
time to time by the Chief Executive Officer in his sole discretion based on his
assessment of the Executive's performance or changes in the scope of Executive's
responsibilities,
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provided that Executive will be given written notice and a minimum of ninety
(90) days to cure any such assessment which, in the Chief Executive Officer's
discretion, warrants such a reduction.
3.3. In addition to the Base Salary, for each calendar year completed
during the Employment Term, the Company shall pay to Executive an annual bonus
of $75,000 based, in part, on achievement of performance goals which shall be
determined by the Chief Executive Officer in consultation with the Executive.
The actual bonus may vary in the sole discretion of the Chief Executive Officer
based on his assessment of the Executive's performance (and subject to any
Company austerity plans).
3.4. The Company shall reimburse Executive for all reasonable expenses
incurred by him in the course of performing his duties under this Agreement
which are consistent with the Company's then current policies with respect to
travel, entertainment and other business expenses, subject to the Company's
requirements concerning reporting and documentation of such expenses.
4. Benefits.
4.1. During the Employment Term, Executive shall be entitled to (i) all
benefits, if any, which are generally provided from time to time by the Company
to its senior executive officers, including, without limitation, (i) any life,
medical and disability insurance plans, (ii) incentive, profit-sharing, deferred
compensation and similar such
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plans, subject to: (A) the Executive's satisfaction of the eligibility
requirements, if any, and (B) with due credit for the minimum annual bonus
already provided under this Agreement, and (iii) all other benefits provided
under this Agreement.
5. Stock Options.
5.1. The Compensation Committee of the Board (the "Compensation Committee")
authorized granting to Executive on November 6, 2000, options to purchase
100,000 shares of Company common stock at an exercise price of $2.625 per share,
pursuant and subject to the Company's 1994 Flexible Stock Incentive Plan (the
"Plan"). Such options shall be non-qualified or incentive stock options, or a
combination thereof as determined by the Plan's Administrator. The terms of the
options, as more fully set forth in the option agreement annexed hereto as
Attachment A, and specifically modified by this Section 5, shall provide that
(i) they shall be for a maximum six (6) year term, and (ii) shall vest and
become exercisable ratably over a four (4) year period on the last day of each
month during such period, provided: (A) the Executive is employed by the Company
on each vesting date, and provided further, that (B) the initial twenty five
percent (25%) of the options shall be deemed exercisable immediately.
5.2. Furthermore, in the event of a "Corporate Transaction" or "Change In
Control" during the Term of this Agreement, the Executive will be entitled to
vesting of all of the Executive's then unvested options (the "Accelerated
Options") under all option
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agreements granted during the period of his employment, subject to the
provisions of this Section 5:
5.2.1. In the event of a "Corporate Transaction" the Accelerated
Options shall fully vest immediately prior to closing unless
the Company's successor in interest, or its parent, offers to:
5.2.2. either (i) assume the Executive's Accelerated Options in
accordance with Section 11 of the Plan and allow them to
continue vesting in accordance with their terms, or (ii)
replace them with equivalent options, having the same vesting
schedule as the original grant by the Company, to purchase
publicly traded shares in the successor corporation or its
Parent by exchanging them at the same rate of conversion
offered to the Company's common shareholders in the Corporate
Transaction, and
5.2.3. provided further that the successor in interest agrees to
fully vest all such assumed or exchanged Accelerated Options
on the earlier of: (i) the first anniversary of his continued
employment following such Corporate Transaction, or (ii) upon
termination of the Agreement by the Company or its successor
in interest if such termination occurs either without good
Cause or by the Executive for Good Reason.
5.3. In the event of a Change In Control, the Accelerated Options shall
vest on
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the earlier of: (i) the first anniversary of such Change In Control, or (ii)
upon termination of the Agreement by the Company or its successor in interest if
such termination occurs either without good Cause or by the Executive for Good
Reason. For purposes of the Agreement and this Amendment, the terms "Corporate
Transaction" and "Change in Control" shall have the definitions of the Plan,
except that a "Corporate Transaction" shall also include the acquisition of more
than 50% of the Company's outstanding securities by any person or related group
of persons as defined in Section 13(d)(3) of the Securities Act of 1934, other
than the entities and transactions identified on Attachment "B".
6. Paid Time Off ("PTO").
During the Employment Term, Executive shall be entitled to PTO, including
vacation, equal to the greater of: (i) fifteen days plus one additional day for
each of employment by the Company, or (ii) twenty days plus one additional day
for each year of employment under this Agreement; but in no event more than 25
days, in each full calendar year (prorated for any partial year) to be taken at
such times as mutually agreed by the Executive and the Chief Executive Officer.
7. Termination.
7.1. Executive's employment under this Agreement shall terminate prior to
expiration of the Employment Term (including any Additional Terms which may be
in
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effect) upon the occurrence of any of the following events:
7.1.1. Automatically on the date of Executive's death.
7.1.2. Upon written notice by the Chief Executive Officer to the
Executive for Cause. "Cause" shall mean (A) the Executive
being convicted of (or pleading nolo contendere to) a felony
(other than a traffic-related offense); (B) the barring of the
Executive by any regulatory authority from holding his
positions or any limitations imposed on the Company by any
regulatory agency if the Executive continued to hold his
positions; (C) willful refusal by the Executive to attempt to
properly perform his material obligations under this
Agreement, or attempt to follow any direction of the Chief
Executive Officer consistent with this Agreement, provided the
refusal to follow a direction shall not be Cause if the
Executive in good faith believes that such direction is not
legal or is contrary to a specific provision of published
Professional Standards applicable to Executive's duties, and
promptly notifies the Company's General Counsel in writing of
such belief; (D) the Executive's willful misconduct or
material gross negligence with regard to the business, assets
or employees of the Company or its affiliated entities
(including as willful misconduct, without limitation, the
Executive's willful breach of any fiduciary duty he may owe to
the Company or its affiliates
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under applicable law or this agreement but not de minimis
personal use of Company assets or reasonable good faith
expense account disputes), (E) the Executive's theft,
dishonesty or fraud with regard to the Company or its
affiliates which is intended to enrich the Executive or
another person or entity but not de minimis personal use of
Company assets or reasonable good faith expense account
disputes, (F) the Executive's inability to competently perform
his assigned duties, or (G) any other material breach by the
Executive of this Agreement that remains uncured for thirty
(30) days after written notice thereof is given to the
Executive. During any period in which the Executive is charged
with committing a crime covered by (A) above, the Company may
suspend Executive from his titles, duties and authority herein
pending resolution of his status under applicable law; such
suspension shall be with pay for up to six (6) months and
thereafter shall be without pay. In the event of any Corporate
Transaction or Change in Control, subsections (F) and (G)
shall be deemed eliminated and without force or effect.
7.1.3. Upon written notice by the Chief Executive Officer to the
Executive, if the Executive (as determined by the Chief
Executive Officer in good faith) fails to regularly perform
the material duties hereunder by reason of mental or
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physical illness or incapacity for an aggregate period of more
than 180 days during any 365 day period (a "Disability"),
provided that, during the Employment Term prior to such
termination, the Company's obligations hereunder shall be
reduced by any payments being received by Executive under any
long-term disability program.
7.1.4. Upon written notice by the Executive to the Chief Executive
Officer for Good Reason stating with specificity the details
of the Good Reason, if the stated Good Reason is not cured
within twenty (20) days of the giving of such notice. "Good
Reason" shall mean any material breach of any provision of
this Agreement by the Company, including but not limited to
(i) any reduction in Executive's duties or responsibilities as
Vice President of Finance and Chief Financial Officer (other
than those duties which may no longer be required if the
Company ceases to be a publicly traded company) or (ii) any
demand that he relocate his principal residence beyond any of
the counties immediately adjacent to San Francisco Bay,
without his consent. Any notice for Good Reason shall be given
within ninety (90) days of the later of (i) the occurrence of
the triggering event, or (ii) the date upon which Executive
could be reasonably expected to know of such event.
7.1.5. Immediately upon written notice to the Executive by the Chief
Executive Officer without Cause.
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7.1.6. Upon the voluntary termination by the Executive without Good
Reason upon thirty (30) days prior written notice to the
Company (which the Company may, in its sole discretion, make
effective earlier). A notice by Executive of non-renewal of
the Employment Term shall be deemed a voluntary termination by
Executive.
7.2. Upon such earlier termination of the Employment Term, the Executive
shall be promptly paid (i) any unpaid salary and accrued vacation through his
date of termination, (ii) a prorated portion of his unpaid annual bonus, as
determined by the Chief Executive Officer in accordance with this Agreement, for
the calendar year of his termination, (iii) reimbursed for any expenses incurred
in connection with the business of the Company prior to his date of termination
which he would be otherwise entitled to in accordance with the Company's
policies on the reimbursement of business expenses, and (iv) receive any
benefits or fringes due under any benefit or fringe plan or arrangement in
accordance with the terms of said plan or arrangement due for the period prior
to such termination.
7.3. In addition, if the termination is by the Company without Cause, or by
the Executive for Good Reason, as provided above, and prior to the Executive's
sixty-fifth birthday, the Executive shall receive in full settlement of all
amounts owed him,
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provided he signs a release running to the Company and its related entities and
their respective officers, directors and employees of all claims relating to his
employment and termination thereof (other than any right to indemnification
under the Company's Articles of Incorporation or By-Laws or the Indemnification
Agreement annexed as Attachment C hereto, which shall survive) in such form as
reasonably requested by the Company:
7.3.1. Thirteen bi-weekly installments of severance pay each in an
amount equal to one twenty-sixth of the then sum of his Base
Salary and annual bonus, based on the amount paid for service
during the prior six month period (or, in the event of a
corporate austerity program applied to Executive together with
other officers of the Company, then the amount that otherwise
would have been paid in accordance with Section 3.3), pro
rated if necessary, and subject to the offset of any amounts
due, and
7.3.2. payment by the Company of the premiums for Executive's and his
dependents' COBRA coverage for the Company's health insurance
plan that generally applies to executives for the period in
which Executive is receiving severance pursuant to this
Agreement or, if earlier, until Executive and his dependents
cease to be eligible for such COBRA coverage. The Company's
payment obligations under this Section (other
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than those in the first sentence) shall immediately cease in
the event Executive materially breaches any of his obligations
under this Agreement concerning the Company's Inventions,
Confidential Information, and not to compete or solicit the
Company's customers or employees.
7.3.3. If the Employment Term ends early on account of Disability,
Executive shall be entitled to receive only such amounts as he
otherwise be entitled to under any disability policy sponsored
by the Company in accordance with this Agreement.
7.4. If the Employment Term ends early pursuant to this Section 7 for any
other reason, Executive shall cease to have any rights to salary, bonus or
benefits other than: (i) salary or bonus which has accrued but is unpaid as of
the end of the Employment Term, and (ii) to the limited extent provided in any
benefit or equity plan or arrangement in which Executive has participated as an
employee of the Company, any benefits or rights which by their specific terms
extend beyond termination of Executive's employment.
7.4.1. All aforesaid amounts in this Section shall be subject to
required withholding. The Company and its affiliated entities
shall have no other obligations to the Executive upon a
termination except as specifically provided in this Agreement.
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8. No Duty to Mitigate/Set-Off.
Except as specifically stated in this Agreement, the Company's obligation
to make any payments to the Executive shall not be affected by any set-off,
counterclaim, recoupment, defense, or other claim, right or action which the
Company may have against the Executive or others. The Company agrees that if
Executive's employment with the Company is terminated during the Employment
Term, Executive shall not be required to seek other employment or to attempt in
any way to reduce any amounts payable to Executive by the Company pursuant to
this Agreement. Further, the amount of any payment or benefit provided for in
this Agreement shall not be reduced by any compensation earned by Executive or
benefit provided to Executive as the result of employment by another employer or
otherwise. Any amounts due under Section 7 are inclusive, and in lieu of, any
amounts payable under any other salary continuation or cash severance
arrangement of the Company. To the extent any such payments are made to
Executive under any other salary continuation or cash severance arrangement,
such payments shall be offset from the amount due Executive under Section 7.
9. Inventions and Other Intellectual Property.
The Company and Executive agree to promptly execute the Proprietary
Information and Invention Agreement, annexed hereto as Attachment D, and any
revised versions which are subsequently issued by the Company as part of its
standard terms of
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employment.
10. Confidential Information.
Executive acknowledges that the trade secrets, know how, and proprietary
information and observations concerning the business or affairs of the Company,
or any of its subsidiaries or affiliates or any predecessor thereof
(collectively "Confidential Information"), obtained by him while employed by the
Company pursuant to this Agreement are the property of the Company or such
subsidiary or affiliate. Executive agrees that he shall not disclose to any
unauthorized person or use for his own account any Confidential Information
without the prior written consent of the Chief Executive Officer unless and
except to the extent that the aforementioned matters become generally known to
and available for use by the public other than as a result of Executive's acts
or omissions to act. If Executive receives legal process, he may comply with it
provided he promptly notifies the Company and diligently cooperates with the
Company in obtaining a protective order. Executive shall deliver to the Company
at the termination of the Employment Term, or at any other time the Company may
request, all memoranda, notes, plans, records, reports, computer tapes and
software and other documents and data (and copies thereof) relating to the
Confidential Information or business of the Company or any of its subsidiaries
or affiliates which he may then possess or have under his control.
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11. Non-Compete, Non-Solicitation.
11.1. Executive acknowledges that in the course of his employment with the
Company pursuant to this Agreement he will become familiar with the Company's
Confidential Information and that his services will be of special, unique and
extraordinary value to the Company.
11.2. During the Employment Term and for one (1) year thereafter, Executive
shall not enter into Competition with the Company or its affiliates to the
extent such Competition requires Executive to divulge, disclose or communicate
to any third party, or make use of, any Company Confidential Information. For
purposes of this Agreement, "Competition" shall mean participating, directly or
indirectly, as an individual proprietor, partner, officer, employee, director,
joint venturer, lender, consultant or in any capacity whatsoever (within the
United States or in any foreign country where the Company or its affiliates do
business) in a business which develops or markets goods, services or intangible
property which is similar to any of those marketed or developed by the Company
or its affiliates; provided, however, that such participation shall not include
(i) the mere ownership of not more than two percent (2%) of the total
outstanding stock of a publicly held company, (ii) the performance of services
for any enterprise to the extent such services are not performed, directly or
indirectly, for a business in the aforesaid competition, (iii) any activity
engaged in with the prior written
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approval of the Chief Executive Officer, or (iv) Executive's employment by a non
Competitive division (or other business unit) of a company which is in
Competition with the Company so long as Executive is not involved with the
competitive division (or other business unit). Notwithstanding anything else in
this Section to the contrary, subsequent to the termination of Executive's
employment hereunder, Executive may, in his sole discretion, passively invest in
any entity, provided Executive does not divulge, disclose or communicate any
Company Confidential Information to such company or its affiliates, employees,
officers, consultants, directors, lenders, or investors and further provided
Executive does not render services to such company or otherwise violates this
Section (other than by making such passive investments).
11.3. During the Employment Term and for two (2) years thereafter,
Executive shall not directly or indirectly solicit for Competitive products or
induce any customer of the Company or its affiliates to terminate, or otherwise
to cease, reduce, or diminish in any way its business relationship with the
Company or its affiliates.
11.4. During the Employment Term and one (1) year thereafter, Executive
shall not recruit, solicit or induce any nonclerical employees of the Company or
its affiliates to terminate their employment or otherwise cease their business
relationship with the Company or its affiliates, or hire or assist another
person or entity to hire any nonclerical employee of the Company or its
affiliates. Executive agrees not to
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circumvent this prohibition by hiring any such employee within six (6) months
after the employee terminates his employment with the Company or its affiliates.
Notwithstanding the foregoing, if requested by any entity with which Executive
is not affiliated, Executive may serve as a reference for any person who at the
time of the request is not an employee of the Company or any of its affiliates.
11.5. If, at the time of enforcement of this Section, a court holds that
the restrictions stated herein are unreasonable under circumstances then
existing, the parties agree that the maximum period, scope or geographical area
reasonable under such circumstances shall be substituted for the stated period,
scope or area and that the court shall be allowed to revise the restrictions
contained herein to cover the maximum period, scope and area permitted by law.
12. Refund Of Benefits.
In the event Executive is in breach of Section 11 ("Non-Compete,
Non-Solicitation"), or such modified version as may be required by law,
Executive will relinquish to the Company:
12.1. all stock options and other benefits under any stock incentive plan,
including the Options granted under this Agreement and Attachment "A", which
vested in the Executive's interest during the six months preceding the last day
of Executive's employment by the Company. In the event Executive sells or
otherwise transfers any
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such Options, Executive will refund to the Company the amount of the gross
economic value realized by Executive.
12.2. all bonus payments, or any pro rata portions thereof, which were paid
or otherwise owed to Executive for his services rendered during the six months
preceding the last day of Executive's employment by the Company.
12.3. all severance payments calculated on the basis of salary, bonus or
both.
12.4. The relinquishment of the foregoing benefits in accordance with this
Section shall not limit or otherwise preclude all other rights and remedies of
the Company due to the Executive's breach of this Agreement.
13. Enforcement.
Because Executive's services are unique and because Executive has access to
Confidential Information of the Company and its affiliates, the parties hereto
agree that money damages, while not waived, would be an inadequate remedy for
any breach of this Agreement. Therefore, in the event a breach or threatened
breach of this Agreement, the Company or its successors or assigns may, in
addition to other rights and remedies existing in their favor, including the
award of money damages, apply to any court of competent jurisdiction for
specific performance and/or injunctive or other relief in order to enforce, or
prevent any violations of, the provisions hereof (without posting a bond or
other security).
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14. Indemnification.
Executive shall be entitled to be indemnified for his activities as an
officer to the full extent provided in the Articles of Incorporation and By-Laws
of the Company and in accordance with the Indemnification Agreement annexed as
Attachment C hereto, which the Company and Executive agree to promptly execute.
In addition, the Company shall cover Executive under Directors and Officers
Liability Insurance during the Employment Term in the same amount and to the
same extent as the Company covers its other officers.
15. Executive Representations.
Executive represents and warrants to the Company that (i) the execution,
delivery and performance of this Agreement by Executive does not and will not
conflict with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which Executive is a party or by which
he is bound, (ii) except with respect to agreements which have been furnished to
the Company and relate primarily to confidentiality, intellectual properties
and/or ethical conduct entered into between Executive and his former
employer(s), Executive is not a party to or bound by any employment agreement,
change in control agreement, non-compete agreement or confidentiality agreement
with any other person or entity, (iii) upon the execution and delivery of this
Agreement by the Company, this Agreement shall be the valid and
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binding obligation of Executive, enforceable in accordance with its terms, (iv)
Executive is a United States citizen or a lawfully resident alien entitled to
work within the United States, and (v) Executive will in performing his duties
not utilize any confidential information of any other person or entity.
16. Entire Agreement; Modification.
This Agreement, and all documents incorporated herein, constitute the full
and complete understanding of the parties hereto and will supersede all prior
agreements and understandings, oral or written, with respect to the subject
matter hereof. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, oral or otherwise, have
been made by either party, or anyone acting on behalf of either party, which are
not embodied in this Agreement, and that no other agreement, statement or
promise not contained in this Agreement shall be valid or binding. This
Agreement may not be modified or amended except by an instrument in writing
signed by the party against whom or which enforcement may be sought.
17. Survival.
The provisions of this agreement which by their terms imply continuation
beyond the end of the Employment Term shall survive notwithstanding any
termination of the Employment Term.
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18. Severability.
Any term or provision of this Agreement which is invalid or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity or unenforceability without rendering invalid or
unenforceable the remaining terms and provisions of this Agreement or affecting
the validity or enforceability of any of the terms of provisions of this
Agreement in any other jurisdiction.
19. Waiver of Breach.
The waiver by any party of a breach of any provisions of this Agreement,
which waiver must be in writing to be effective, shall not operate or be
construed as a waiver of any subsequent breach.
20. Notices.
All notices hereunder shall be in writing and shall be deemed to have been
duly given when delivered by hand, or one (1) day after sending by express mail
or other "overnight mail service," or three (3) days after sending by certified
or registered mail, postage prepaid, return receipt requested. Notice shall be
sent as follows: if to Executive, to the last known address provided by the
Executive in the Company's records and, if to the Company, at the address set
forth on the first page of this Agreement, attention of the General Counsel.
Either party may change the notice address by notice in accordance with this
Section.
21. Assignability; Binding Effect.
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This Agreement shall be binding upon and inure to the benefit of Executive
and Executive's legal representatives, heirs and distributees, and shall be
binding upon and inure to the benefit of the Company, its successors and
assigns. This Agreement may not be assigned by the Executive. This Agreement may
not be assigned by the Company, except in connection with a merger or a sale by
the Company of all or substantially all of its assets and, in such event, only
on the condition that the assignee specifically assumes in writing all of the
Company's obligations under this Agreement.
22. Governing Law.
All issues pertaining to the validity, construction, execution and
performance of this Agreement shall be construed and governed in accordance with
the laws of the State of California, without giving effect to the conflict or
choice of law provisions thereof.
23. Arbitration.
23.1. In the event of any dispute of any kind whatsoever between the
parties, arising out of or related in any way to this Agreement, the parties
agree to submit all such disputes to binding arbitration. Each party shall be
entitled to appoint one arbitrator, who shall not be an affiliate, officer,
director, employee, agent, vendor or contractor of that party. The appointed
arbitrators shall then appoint a neutral arbitrator who shall serve as Chairman,
and the arbitration shall be conducted by the arbitrators
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so chosen. The parties' arbitrators shall be experienced executives in the
technology industry, and the Chairman shall be an attorney practicing litigation
in the field of employment law. The arbitration shall be conducted in Santa
Xxxxx County, California. Demand for arbitration shall be made in writing and
shall be served upon the party or parties to whom the demand is addressed in the
manner provided for the tender of notices in this Agreement. If the party
receiving the demand for arbitration does not appoint its arbitrator within 30
days after receiving such notice, the arbitrator appointed by the party serving
the demand for arbitration shall be further empowered to serve as the sole
arbitrator, notwithstanding that he fails to meet the qualifications for the
Chairman set forth in this Section.
23.2. The arbitrators are authorized to award any remedy, legal or
equitable, as well as any interim relief as they deem appropriate in their
discretion. However, notwithstanding the foregoing, the arbitrators shall have
no power to add to, subtract from, or modify any of the terms or conditions of
this Agreement.
23.3. Subject to the arbitration agreement stated in this Article, the
federal and state courts located in Santa Xxxxx County, California shall have
exclusive jurisdiction over all other legal proceedings between the parties.
Executive agrees to the personal jurisdiction of said courts and to the receipt
of service of process in the same form as other notices under this Agreement.
Application may be made to any such court to
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Employment Agreement
R. Xxxxxxxxxxx Xxxxxxxxxxxxx
November 6, 2000
assist the arbitrators in performing their arbitral duties, to confirm their
award and to enforce any such award as a judgement of said court.
24. Headings And Gender Neutrality.
The headings in this Agreement are intended solely for convenience or
reference and shall be given no effect in the construction or interpretation of
this Agreement. The use of either masculine or feminine pronouns in this
Agreement are merely a convenience of the draftsperson and shall be not be
deemed determinative of any person's gender.
25. Counterparts.
This Agreement may be executed in several counterparts, each of which shall
be deemed to be an original but all of which together shall constitute one and
the same instrument.
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Employment Agreement
R. Xxxxxxxxxxx Xxxxxxxxxxxxx
November 6, 2000
IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed and Executive has hereunto set his hand as of the date first set forth
above.
CYLINK CORPORATION
By: /s/ Xxxxxxx X. Xxxxxxx
--------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: CEO and President
EXECUTIVE
/s/ R. Xxxxxxxxxxx Xxxxxxxxxxxxx
--------------------------------
R. Xxxxxxxxxxx Xxxxxxxxxxxxx
26
