Exhibit 10.9
EXECUTIVE EMPLOYMENT AGREEMENT
This Executive Employment Agreement
(the “ Agreement ”) is made as of the 1st
day of July , 2005 (the “ Effective
Date ”), by and between Smith Micro Software, Inc., a
Delaware corporation (the “ SMSI ”) and
Jonathan Kahn (“ Executive ”), an
individual residing in California.
WHEREAS, SMSI is in need of an
executive with significant experience in operating a software
business to develop and sell utility and security software
programs; and
WHEREAS, Executive has experience in
such fields; and
WHEREAS, SMSI wishes to engage
Executive to serve as a Sr. Vice President of SMSI,
NOW THEREFORE, in consideration of
the premises and the covenants contained herein, the parties hereby
agree as follows:
1.
DUTIES AND POSITION . During the term of this Agreement,
Executive agrees to be employed by and to serve SMSI as a Senior
Vice President. SMSI agrees to employ and retain Executive in such
capacity and Executive accepts and agrees to such employment,
subject to the general supervision, advice and direction of the
President of SMSI. Executive shall perform such duties as are
customarily performed by an executive in a similar position.
Executive’s reasonable attention to personal investments and
other business matters shall not be deemed to be a violation of
this Agreement.
2.
TERM OF EMPLOYMENT .
2.1. Term of Employment . This
Agreement shall be effective as of the date first set forth above
and shall continue for a period of three (3) years (the
“ Term ”), unless sooner terminated
pursuant to the provisions set forth herein.
2.2. Place of Performance .
Executive shall be based at the principal business offices of
Allume Systems, Inc., which are currently located at 245 Westridge
Dr., Watsonville, CA 95076 (the “Principle Place of
Performance”).
3.
SALARY, BENEFITS AND BONUS COMPENSATION .
3.1. Salary . As payment for
the services to be rendered by Executive as provided in
Section 1 and subject to the terms and conditions of
Section 4, SMSI agrees to pay to Executive a salary equal to
no less than two hundred thousand dollars ($200,000) per year,
payable in such equal increments which are in accordance with the
SMSI’s regular payroll practices then in effect (as may be
adjusted from time to time, the “ Base Salary
”). Executive’s salary shall be reviewed by
SMSI’s Board of Directors in accordance with SMSI policies,
and Executive shall be eligible for increases in salary and
benefits as determined by SMSI’s Board of Directors their
sole discretion. In no event shall Executive’s salary be
reduced below the Base Salary except with
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Executive’s consent which may be withheld in
Executive’s sole discretion, and except as part of a salary
reduction applicable to all senior management of SMSI.
3.2. Bonuses . Executive shall
receive a discretionary bonuses as determined by SMSI’s Board
of Directors, in accordance with SMSI’s standard bonus
policies and equal to or greater than the bonuses awarded to other
similar employees of SMSI and its subsidiaries for similar
performance.
3.3. Employee Benefits .
Executive shall be eligible to participate in all benefit plans
generally available to employees who are executives of SMSI
including health, dental, life insurance, retirement, disability,
stock and bonus compensation programs.
3.4. Expenses . SMSI will pay,
or reimburse the Executive for, all ordinary and reasonable
out-of-pocket business expenses incurred by Executive in connection
with his performance of services hereunder in accordance with
SMSI’s expense authorization and approval procedures then in
effect upon presentation to SMSI of an itemized account and written
proof of such expenses.
3.5. Options . Executive shall
receive a grant of incentive stock options to purchase 150,000
shares of SMSI’s Common Stock at the market value of such
stock on the date on which the 2005 Incentive Stock Option Plan is
ratified by SMSI shareholders, and which options shall vest twenty
five (25%) percent after six (6) months and the remainder
monthly over the two year period commencing upon the date of plan
ratification. Executive’s incentive stock options shall be
part of SMSI’s 2005 Incentive Stock Option Plan.
4.
TERMINATION .
Definitions . For purposes of this Agreement, the following
terms shall have the following meanings:
(a)
“ Termination For Cause ” shall mean
termination by SMSI of Executive’s employment by SMSI for
reasons of Executive’s conviction of, or plea of
“guilty” or “no contest” to, a felony
involving moral turpitude, persistent dishonesty or fraud,
persistent willful breaches of the material terms of this
Agreement, or willful neglect of the duties which he is required to
perform hereunder. No act or failure to act by Employee shall be
deemed to be “willful” unless done, by him not in good
faith and without reasonable belief that his action or omission was
in the best interest of SMSI.
(b)
“ Termination Other Than For Cause ”
shall mean termination by SMSI of Executive’s employment by
SMSI (other than a Termination For Cause, Disability, or Death) and
shall include a substantial, non-voluntary change in the duties
required of Executive, or moving the principal Place of Performance
more than one hundred (100) miles from its current
location.
(c)
“ Voluntary Termination ” shall mean
termination of Executive’s employment with SMSI by action of
Executive (other than termination by reason of Executive’s
disability or death as described in Sections 4.4 and
4.5).
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4.2. Termination For Cause
.
(a) Termination
For Cause may be effected by SMSI at any time during the Term and
shall be effected by notice to Executive.
(b) Upon
Termination For Cause, Executive immediately shall be paid any
accrued salary, any bonus compensation to the extent earned, any
vested deferred compensation (other than pension plan or profit
sharing plan benefits which will be paid in accordance with the
applicable plan), any benefits under any plan of SMSI in which
Executive is a participant to the full extent of Executive’s
rights under such plans, any accrued vacation pay and any
appropriate business expenses incurred by Executive in connection
with his duties hereunder, all to the date of termination, but
Executive shall not be paid any other compensation or reimbursement
of any kind, including without limitation, severance compensation;
provided that, any of Employee’s options in SMSI which at
such time were vested, shall remain vested.
4.3. Termination Other Than For
Cause.
(a) Notwithstanding
anything else in this Agreement, SMSI may effect a Termination
Other Than For Cause, Disability, Death, or Voluntary Termination
at any time by written notice to Executive of such
termination.
(b) Upon
any Termination Other Than For Cause, Executive shall be paid any
accrued salary, any bonus compensation to the extent earned, any
deferred compensation (other than pension plan or profit sharing
plan benefits which will be paid in accordance with the applicable
plan), any accrued vacation pay and any appropriate business
expenses incurred by Executive in connection with his duties
hereunder, all to the date of termination, and any severance
compensation provided in Section 5, but Executive shall be
entitled to no other compensation or reimbursement of any kind. In
addition, Executive shall continue to participate in all medical,
health and life insurance plans and the other benefits
provided
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