EXHIBIT 10.3
May 19, 1998
Xxxx X. X'Xxxxx
000 Xxxx Xxxxxx Xxxx
Xxxxxxxxx, XX 00000
EMPLOYMENT AGREEMENT
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Dear Xx. X'Xxxxx:
The purpose of this letter is to summarize the terms of our agreement for your
employment as Vice President, Business Development of Linkon Corporation. This
full time position reports to me as President and CEO. Following are the terms
of employment:
1.) RESPONSIBILITY
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You will have primary responsibility for developing the company's revenue line.
You will specifically be responsible for the overall strategic sales direction,
sales of your named accounts, expense control and personnel decisions for your
functional areas. Attachment 1 to this letter provides a more detailed
definition of duties.
2.) COMPENSATION
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1. A monthly base salary of $8,500 which will be reviewed annually.
2. A sales commission of 2% for sales to those accounts under your
responsibility. Commissions will be paid quarterly.
3. A performance bonus of $15,000 paid annually based upon achievement
of goals as defined in Attachment 2 of this letter.
3.) OPTIONS
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1. You will participate in the Linkon stock option plan.
2. You will receive in any event, 25,000 fully vested options as a
signing bonus with this contract.
4.) BENEFITS
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1. A stipend of $650 a month to cover your health insurance.
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.
Xxxx X. X'Xxxxx Employment Agreement
May 19, 1998
Page Two
5.) TERM
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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.
6.) TERMINATION
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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
3/rd/ Party resulting in your termination, you will receive a
severance payment equal to one years of base salary plus any bonus
earned and benefits.
7.) INDEMNIFICATION
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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
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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,
/s/Xxxx X. X'Xxxxx 5/19/98
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Xxxx X. X' Xxxxx Date
