EMPLOYMENT AGREEMENT
Exhibit 10(vi)
Employment
Agreement, between Simple Tech Inc. (the "Company") and Xxxxx Xxxxxxxxx (the "Employee").
1. For good consideration, the Company employs the Employee on the following terms and conditions.
2. Term of Employment. Subject to the provisions
for termination set forth below this agreement will begin on August 1, 2009, unless sooner terminated.
3. Salary. The Company shall pay Employee a
salary of $72,000 per year, for the services of the Employee, payable at regular payroll periods. Employee will also be granted
100,000 stock options with an exercise price of $1.25 per share, that vest equally over 3 years, with the first third deemed to be
vested on signing.
4. Duties and Position.
The Company hires the Employee in the capacity as Head of Research. The Employee's duties may be reasonably modified at the Company's
discretion from time to time.
5. Employee to Devote 50% of His Time to Company.
The Employee will devote one half of his time, attention, and energies to the business of the Company, and, during this employment,
will not engage in any other business activity, regardless of whether such activity is pursued for profit, gain, or other pecuniary
advantage. Employee is not prohibited from making personal investments in any other businesses provided those investments do not
require active involvement in the operation of said companies.
6. Confidentiality of Proprietary Information.
Employee agrees, during or after the term of this employment, not to reveal confidential information, or trade secrets to any person,
firm, corporation, or entity. Should Employee reveal or threaten to reveal this information, the Company shall be entitled to an
injunction restraining the Employee from disclosing same, or from rendering any services to any entity to whom said information has
been or is threatened to be disclosed, the right to secure an injunction is not exclusive, and the Company may pursue any other
remedies it has against the Employee for a breach or threatened breach of this condition, including the recovery of damages from the
Employee.
7. Reimbursement of Expenses. The Employee may
incur reasonable expenses for furthering the Company's business, including expenses for entertainment, travel, and similar items. The
Company shall reimburse Employee for all business expenses after the Employee presents an itemized account of expenditures, pursuant
to Company policy.
8. Vacation. The Employee shall be entitled to a
yearly vacation of 4 weeks at full pay.
9. Disability. In the event that the Employee
cannot perform the duties because of illness or incapacity for a period of more than 4 weeks, the compensation otherwise due during
said illness or incapacity will be reduced by the amount of time missed over 4 weeks per year. The Employee's full compensation will
be reinstated upon return to work. However, if the Employee is absent from work for any reason for a continuous period of over two
months, the Company may terminate the Employee's employment, and the Company's obligations under this agreement will cease on that
date.
Exhibit 10(vi)
10. Termination
of Agreement. Without cause, the Company may terminate this agreement at any time upon 30
days' written notice to the Employee. If the Company requests, the Employee will continue to perform his/her duties and may be paid
his/her regular salary up to the date of termination. In addition, the Company will pay the Employee on the date of the termination a
severance allowance of $12,000 less taxes and Social Security required to be withheld, without cause, the Employee may terminate
employment upon 30 days' written notice to the Company. Employee may be required to perform his or her duties and will be paid the
regular salary to date of termination but shall not receive severance allowance. Notwithstanding anything to the contrary contained
in this agreement, the Company may terminate the Employee's employment upon 30 days' notice to the Employee should any of the
following events occur:
(a)
The sale of substantially all of the Company's assets to a single purchaser or group of associated purchasers; or
(b) The sale, exchange, or other disposition, in one transaction of the majority of the Company's outstanding corporate shares; or
(c) The Company's decision to terminate its business and liquidate its assets;
(d) The merger or consolidation of the Company with another company.
(e) Bankruptcy or chapter 11 reorganization.
11. Death
Benefit. Should Employee die during the term of employment, the Company shall pay to
Employee's estate any compensation due through the end of the month in which death occurred.
12. Restriction on Post Employment Compensation.
For a period of 6 months after the end of employment, the Employee shall not control, consult to or be employed by any business
similar to that conducted by the company, either by soliciting any of its accounts or by operating within Employer's general trading
area.
13. Assistance in Litigation. Employee shall upon
reasonable notice, furnish such information and proper assistance to the Company as it may reasonably require in connection with any
litigation in which it is, or may become, a party either during or after employment.
14. Effect of Prior Agreements. This Agreement
supersedes any prior agreement between the Company or any predecessor of the Company and the Employee, except that this agreement
shall not affect or operate to reduce any benefit or compensation inuring to the Employee of a kind elsewhere provided and not
expressly provided in this agreement.
15. Settlement by Arbitration. Any claim or
controversy that arises out of or relates to this agreement, or the breach of it, shall be settled by arbitration in accordance with
the rules of the American Arbitration Association. Judgment upon the award rendered may be entered in any court with jurisdiction.
16. Limited Effect of Waiver by Company. Should
Company waive breach of any provision of this agreement by the Employee, that waiver will not operate or be construed as a waiver of
further breach by the Employee.
Exhibit 10(vi)
17. Severability.
If, for any reason, any provision of this agreement is held invalid, all other provisions of this agreement shall remain in effect.
If this agreement is held invalid or cannot be enforced, then to the full extent permitted by law any prior agreement between the
Company (or any predecessor thereof) and the Employee shall be deemed reinstated as if this agreement had not been executed.
18. Assumption of Agreement by Company's Successors and Assignees.
The Company's rights and obligations under this agreement will inure to the benefit and be binding upon the Company's successors and
assignees.
19. Oral Modifications Not Binding. This
instrument is the entire agreement of the Company and the Employee. Oral changes have no effect. It may be altered only by a written
agreement signed by the party against whom enforcement of any waiver, change, modification, extension, or discharge is sought.
Signed this1st day of August, 2009.
SIMPLE TECH INC.
/s/ Xxxxxx Xxxxxx /s/
Xxxxx Xxxxxxxxx
Xxxxxx Xxxxxx, CEO
Xxxxx Xxxxxxxxx
