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Title: |
Employment Agreement |
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Entities: |
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Date: |
2000 |
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Size: |
Preview shows 5KB of 47KB total |
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Price: |
$48 |
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ID: |
#656496 |
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EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT is made as of this 17th day of April, 2000, by
and between MARK GERCENSTEIN, (the "Employee"), and InterDigital Communications
Corporation, a corporation organized and existing under the laws of the
Commonwealth of Pennsylvania (the "Company").
WHEREAS, the Company is engaged in the business of development and
marketing digital wireless telecommunications technologies and components
technologies for advanced wireless applications, including voice and high data
rate applications, and the licensing of wireless digital telephone technology
and patents, as such business may be redefined from time to time and described
as such in the Company's then current Annual Report on Form 10-K (the
"Business").
WHEREAS, the Company has offered Employee employment as the Chief Executive
Officer of the Company and an appointment to the Company's Board of Directors,
and Employee is willing to accept such offer, as set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and obligations
contained herein, and intending to be legally bound, the parties, subject to the
terms and conditions set forth herein, agree as follows:
1. Employment and Term. The Company hereby employs Employee and Employee hereby
accepts employment with the Company, as Chief Executive Officer of the Company,
(such position, Employee's "Position") for a period commencing on April 17, 2000
and continuing until employment hereunder is terminated pursuant to the
provisions of Section 10 hereof (the "Term").
2. Duties. During the term of his employment, Employee shall serve the Company
faithfully and to the best of his ability and shall devote his full time,
attention, skill and efforts to the performance of the duties required by or
appropriate for his Position. Employee agrees to assume such duties and
responsibilities as may be customarily incident to such position, and as may be
reasonably assigned to Employee from time to time by the Board of Directors of
the Company. Employee shall report to the Chairman of the Board and the Board of
Directors of the Company. Only the Board of Directors shall have the authority
to terminate Employee's employment.
3. Director Position. Executive shall be appointed a director of the Company
promptly after Executive's commencement of employment with the Company as CEO,
and shall be nominated for election as a director at the 2000 Annual Meeting of
the Company's Shareholders. Executive agrees that, without further action or
acknowledgment by Executive or the Company, his position as a director shall
terminate upon Executive's termination of employment as set forth in Section 10
hereto.
{PAGE}
4. Other Business Activities. During the Term, Employee will not, without the
prior written consent of the Company, directly or indirectly engage in any other
business activities or pursuits whatsoever, except activities in connection with
any charitable or civic activities, personal investments and serving as an
executor, trustee or in other similar fiduciary capacity; provided, however,
that such activities do not interfere with his performance of his
responsibilities and obligations pursuant to this Agreement.
5. Compensation.
A) Base Salary. The Company shall pay Employee, and Employee hereby agrees
to accept, as compensation for all services rendered hereunder and for
Employee's covenant not to compete as provided for in Section 9 hereof, a base
salary at the annual rate of Three Hundred Fifty Thousand Dollars (subject to
any increase from time to time in accordance with Company compensation policies,
the "Base Salary"). The Base Salary shall be inclusive of all applicable income,
social security and other taxes and charges which are required by law to be
withheld by the Company or which are requested to be withheld by Employee, and
which shall be withheld and paid in accordance with the Company's normal payroll
practice for its similarly situated employees from time to time in effect.
B) Annual Incentive Bonus. Employee shall be eligible to participate in the
Company's Employee Incentive Bonus Plan, as amended from time to time (the "
Bonus Plan"), on the terms and conditions no less favorable than those provided
to the other Company senior and executive officers. For the Year 2000, Executive
shall have a target bonus level of $100,000 under the Bonus Plan, based on the
achievement of business and personal goals to be set by the Board of Directors.
For the Year 2001 and thereafter, Executive shall have a target bonus of 57% of
Executive's Base Salary under the Bonus Plan. The goals shall be consistent with
the goals set for other senior and executive officers. For all years, the
Company may pay up to 30% of the actual bonus achieved in restricted stock or
restricted stock units, with the remainder to be paid in cash. The bonus shall
be subject to the terms of the Bonus Plan, as amended from time to time. The
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