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May 19, 1998 Exhibit 10.16
Xxxxxx X. Xxxxxxxx
0000 Xxxxxx Xxxxx
Xxxxxxxx Xxxxxxx, XX 00000
EMPLOYMENT AGREEMENT
Dear Xx. Xxxxxxxx:
The purpose of this letter is to summarize the terms of our agreement for your
employment as Senior Vice President, Operations of Linkon Corporation. This full
time position reports to me as President and CEO and is located in our Fairfield
headquarters. Following are the terms of employment:
1.) RESPONSIBILITY
You will have primary responsibility for the company's day to day operations.
You will specifically be responsible for the overall strategic direction of the
company's accounting, manufacturing, materials management, sales support,
treasury and legal departments. You will have budgeting, expense control and
personnel decision making for your functional areas. Attachment 1 to this letter
provides a more detailed definition of duties.
2.) COMPENSATION
1. A monthly base salary of $10,417 which will be reviewed
annually.
2. A performance bonus of $25,000 paid annually based upon
achievement of goals as defined in Attachment 2 of this
letter.
3.) OPTIONS
1. You will participate in the Linkon stock option plan.
2. You will receive in any event, 75,000 fully vested options as
a signing bonus with this contract.
4.) BENEFITS
1. Linkon has health and life insurance program for which you are
eligible.
2. Linkon has a 401K program for which you are eligible.
3. You will be entitled to one month vacation.
4. You will receive an auto allowance of $500 per month.
5.) TERM
The term of this employment agreement shall commence on the day of the signing
of this employment agreement and shall continue for two years or until otherwise
terminated in this agreement.
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Xxxxxx X. Xxxxxxxx
May 19, 1998
Page 2
6.) TERMINATION
1. In the event you are terminated for cause, you will receive no
compensation. "Cause" is defined as: (i) Violation of any rule
or regulation of any regulatory organization or Governmental
agency which is injurious to Linkon. (ii) Your conviction of a
felony. (iii) Your conviction of any crime involving moral
turpitude. (iv) A finding that you sexually harassed or
discriminated against any company employee. (v) A material
breach of the terms of this offer.
2. Should Linkon terminate you, you will receive a severance
payment equal to one year salary plus any bonus earned and
benefits.
3. In the event, Linkon undergoes a sales, merger or acquisition
to a 3rd Party resulting in your termination, you will receive
a severance payment equal to one year of base salary plus any
bonus earned and benefits.
7.) INDEMNIFICATION
Linkon will indemnify you for any and all claims, suits, proceedings, damages,
losses or liabilities incurred by you and arising out of any acts or decisions
done or made by Linkon from the signing of this agreement. Linkon agrees to pay
your reasonable expenses, including reasonable attorney's fees, actually
incurred by you in connection with the defense of any such action, suit or
proceedings and in connection with any appeal thereon including the cost of
court settlements if such settlement is agreed to by Linkon. Nothing contained
herein shall entitle you to indemnification by Linkon in excess of that
permitted by applicable law.
8.) NON-COMPETITION
You agree that in consideration for Linkon's agreement contained in this offer,
you will not, directly or indirectly, be employed by, manage, operate, control
or acquire an interest in, or otherwise engage or participate in any business
which is in competition with the business of Linkon.
Please sign this letter as an indication of your acceptance of these terms of
employment.
Sincerely,
Xxx X. Xxxx
President and CEO
enclosure (2) I accept the terms of this employment agreement,
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Xxxxxx X. Xxxxxxxx Date
