Document:

exv10w3

 

Exhibit 10.3

SEPARATION AGREEMENT

     This Separation Agreement (“Agreement”) is made and entered into by and
between Craig Conway (“Executive”), and PeopleSoft, Inc. (“Company”), is
effective when executed by both parties and is based upon the following:

RECITALS

     A. Executive has been employed by Company as its President and Chief
Executive Officer since May 1999.

     B. The Company has terminated Executive’s employment, as set forth below.

     C. This Agreement is entered into in order to document the parties
agreements regarding the termination.

     NOW THEREFORE, the parties agree that in full, sufficient and complete
consideration of the mutual promises and covenants contained herein, Executive
and Company hereby agree as follows:

AGREEMENT

     1. Termination of Employment. Effective as of 12:01 a.m. on October 1,
2004 (“Termination Date”), Executive was terminated from the employ of the
Company without Cause pursuant to section 4(d) of the Employment Agreement
entered into by Executive and the Company on May 10, 1999 and restated as of
May 27, 2003 (the “Employment Agreement”). Following the Termination Date and
Executive’s resignation as a member of the Board of Directors of the Company,
Executive shall no longer be designated as a Section 16(b) person of the
Company under the Securities Exchange Act of 1934, as amended.

     2. Accrued Salary and Paid Time Off. Executive has recieved payment,
subject to customary withholding and other taxes, on the Termination Date for
all earned and unpaid base salary, and all accrued and unused vacation as of
that date. Executive and Company acknowledge and agree that no deferred salary
remains payable to Executive, and
that there is no agreement to defer payment of any future salary to which
Executive may be entitled.

 

 

     3. Severance Benefits. Upon execution of this Agreement and the Mutual
Release of Claims attached hereto as Exhibit A, Executive will receive the
following severance benefits pursuant to section 4(d) of the Employment
Agreement in addition to the payments referenced in section 2:

          (i) In strict compliance with the Employment Agreement, with respect to
the Stock Options granted to Executive prior to the Termination Date, that
number of Stock Options that would have vested had Executive remained employed
by the Company for an additional twenty-four (24) months after the Termination
Date shall immediately have their vesting accelerated based on service-based
vesting provisions only;

          (ii) In strict compliance with the Employment Agreement, with respect to
the restricted stock grant of 500,000 shares awarded to Executive (grant number
034756), Executive will receive a cash payment equal to the fair market value
of the number of shares of restricted stock that would have vested pro rata
based on the number of months from the date of the grant through the
Termination Date;

          (iii) In strict compliance with the Employment Agreement, with respect to
the restricted stock grant of 150,000 shares awarded to Executive (grant number
045455), Executive will receive a cash payment equal to the fair market value
as of the Termination Date of the number of shares of restricted stock that
would have had their vesting accelerated as a result of twenty-four (24) months
service-based vesting;

          (iv) In variance of the Employment Agreement, Executive shall receive
within 5 days of the effective date a lump sum payment equal to $3,207,766.33
which equates to the Company’s obligation for continued payments of twenty-four
(24) months Base Salary and twenty-four (24) months Target Bonus discounted to
net present value, less applicable withholding obligations of the Company; and

          (v) In strict compliance with the Employment Agreement, the Company will
pay the group health, dental and vision plan continuation coverage premiums for
Executive and his covered dependents under Title X of the Consolidated Budget

 

 

Reconciliation Act of 1985, as amended (“COBRA”) or any applicable state law
that provides for such continuation coverage for the lesser of (A) twenty-four
(24) months from the Termination Date, or (B) the date upon which Executive and
his covered dependents are covered by similar plans of Executive’s new
employer.

     4. Other Compensation or Benefits. Executive acknowledges and agrees
that, except as expressly provided in this Agreement, Executive will not
receive and is not entitled to any additional compensation, severance or
benefits after the Termination Date except such payment, if any, as may be due
under section 16 (Golden Parachute Excise Taxes) of the Employment Agreement.

     5. Continuing Obligations. Executive reaffirms his existing and
continuing obligations set forth in the Employee Proprietary Information
Agreement (the “Proprietary Information Agreement”) that Executive signed, a
copy of which is attached hereto at Exhibit B. Executive acknowleges and
agrees that such obligations are continuing and survive the termination of
Executive’s employment with the Company.

     6. Taxes. Executive acknowledges and agrees that Executive shall be
personally responsible for the payment of any and all taxes which may be due on
the payments described in this Agreement, except for any FICA or other payroll
taxes which a state or federal government tax agency determines the Company was
obligated to pay on behalf of the Company. Executive further acknowledges that
the Company does not make and has not made any representations regarding the
taxability of any payment from the Company to Executive described in this
Agreement, and Executive has have not relied on any representations of the
Company on that subject. Executive further acknowledges that
Executive will indemnify and hold the Company harmless in the event any
taxing authority determines that tax obligations are due pursuant to the
payments made hereunder.

 

 

     7. The parties to this Agreement understand that each party is responsible
for bearing its own costs and attorneys’ fees incurred in connection with the
preparation and negotiation of this Agreement.

     8. Miscellaneous. This Agreement, including Exhibit A, which is hereby
incorporated by reference herein, constitutes the complete, final and exclusive
embodiment of the entire agreement between Executive and the Company with
regard to this subject matter. It is entered into without reliance on any
promise or representation, written or oral, other than those expressly
contained herein, and it supersedes any other such promises, warranties or
representations. This Agreement may not be modified or amended except in a
writing signed by Executive and a duly authorized officer of the Company. This
Agreement will bind the heirs, personal representatives, successors and assigns
of Executive and the Company, and inure to the benefit of Executive and the
Company, their heirs, successors and assigns. If any provision of this
Agreement is determined to be invalid or unenforceable, in whole or in part,
this determination will not affect any other provision of this Agreement and
the provision in question will be modified by the court so as to be rendered
enforceable. Each party shall bear its own costs, expenses and attorneys’ fees
incurred in negotiating and finalizing this Agreement. This Agreement will be
deemed to have been entered into and will be construed and enforced in
accordance with the laws of the State of California without regard to
principles of conflict of laws. Any dispute regarding the payments and
benefits described herein shall be subject to section 14 of the Employment
Agreement (Non-Binding Mediation, Arbitration and Equitable Relief); the
arbitrator’s fees in connection with any arbitration proceeding arising under
that section shall be paid by the Company.

     IN WITNESS WHEREOF, this Agreement has been executed in duplicate
originals on the dates indicated below, and shall become effective as indicated
above.

 

 

	 	 	 	 	 
	 	 	EXECUTIVE
	 
	 	 	 	 
	Dated: October 15, 2004

	 	By:	 	/s/ Craig Conway
	

	 	 	 	
 
	 
	 	 	 	 
	 
	 	PEOPLESOFT, INC.

	 
	 	 	 	 
	Dated: October 18, 2004

	 	By:	 	/s/ A. George Battle
	

	 	 	 	
 
	

	 	 	 	Member, Board of Directors
	Dated: October 17, 2004

	 	 	 	 
	

	 	By:	 	/s/ James P. Shaughnessy
	

	 	 	 	
 
	

	 	 	 	General Counsel

Exhibit A – Mutual Release of Claims

Exhibit B – Proprietary Information Agreement

 

 

EXHIBIT A

MUTUAL RELEASE OF CLAIMS

     This Release of Claims (“Release”) is entered into by and between Craig
Conway (“Executive”) and PeopleSoft, Inc. (“Company”) as follows:

     Executive understands and agrees to the terms in the foregoing Separation
Agreement (“Agreement”) and also understands that this Release, together with
the Agreement, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and Executive with regard to the subject
matter hereof. Executive is not relying on any promise or representation by
the Company that is not expressly stated therein. Certain capitalized terms
used in this Release are defined in the Agreement.

     Except as otherwise set forth in this Release, Executive hereby releases
the Company and its parents, subsidiaries, successors, predecessors and
affiliates, and its and their current and former partners, members, directors,
officers, employees, stockholders, shareholders, agents, attorneys,
predecessors, insurers, affiliates and assigns (“Releasees”), from any and all
claims, liabilities and obligations, both known and unknown, that arise out of
or are in any way related to Executive’s compensation or benefits under the
Employment Agreement entered into by Executive and the Company on May 10, 1999
and restated as of May 27, 2003 (“Employment Agreement”), including without
limitation claims for salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, restricted stock, stock
options, or any other equity compensation or ownership interests in the Company
(other than compensation and benefits accrued on or before any termination of
employment).

     The Company, in turn, hereby releases Executive from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are
in any way related to Executive’s compensation or benefits under the Employment
Agreement, including without limitation claims for salary, bonuses,
commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, restricted stock, stock options, or any other equity compensation or
ownership interests in the Company (other than compensation and benefits
accrued on or before any termination of employment).

     The matters released herein do not include claims, liabilities and
obligations (i) of Executive pursuant to the Proprietary Information Agreement
signed by Executive, (ii) of the parties pursuant to the Indemnification
Agreement entered into by and between the Company and Executive on August 12,
2002, (iii) any indemnification rights of Executive under the Company’s
Certificate of Incorporation, the Company’s Bylaws, any vote of stockholders or
disinterested Directors, the General Corporation Law of the State of Delaware,
or any other law, statute or regulation, both as to action in Executives’s
official capacity and as to action in any other capacity while holding such
office, or (iv) of Company with respect to such payment, if any, as may be
due to Executive under section 16 (Golden Parachute Excise Taxes) of the
Employment Agreement.

 

 

     Executive and the Company represent and warrant that they each,
respectively, have the sole right and authority to execute this Release and
that they have not assigned or transferred, or purported to assign or transfer,
to any corporation, entity or person, any dispute or claims released herein or
any amount of money related thereto.

	 	 	 	 	 
	 	 	EXECUTIVE
	 
	 	 	 	 
	Dated: October 15, 2004

	 	By:	 	/s/ Craig Conway
	

	 	 	 	
 
	 
	 	 	 	 
	 
	 	PEOPLESOFT, INC.

	 
	 	 	 	 
	Dated: October 18, 2004

	 	By:	 	/s/ A. George Battle
	

	 	 	 	
 
	

	 	 	 	Member, Board of Directors
	Dated: October 17, 2004

	 	 	 	 
	

	 	By:	 	/s/ James P. Shaughnessy
	

	 	 	 	
 
	

	 	 	 	General Counsel[EXHIBIT 10.1]

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), is made and entered into
as of the 24th day of June, 2003, at Brooklyn, New York, by and between Henry
Doiban ("Doiban") and Lorcom Technologies, Inc. ("Lorcom" or the "Company"), a
Delaware corporation.

                                    RECITALS

         WHEREAS, Doiban is an experienced executive in the construction
technology industry as evidenced by Doiban's resume appended hereto and
incorporated herein by reference; and

         WHEREAS, Lorcom desires to employ an experienced executive in the
wireless communications industry as the Company's Chief Executive Officer.

         NOW, THEREFORE, in consideration of the mutual promises contained in
this Agreement, Doiban and Lorcom agree as follows:

1.   EMPLOYMENT. Conditioned upon all of the recitals being true and correct,
     Lorcom will employ Doiban and Doiban accepts employment from Lorcom upon
     the terms and conditions contained in this Agreement.

2.   TERM. Lorcom will employ Doiban for twenty-four (24) months beginning July
     1, 2003, and ending on June 30, 2005. Not less than one hundred and twenty
     (120) days prior to the expiration of this Agreement, Doiban shall contact
     the Company to discuss whether this Agreement will be modified and/or
     extended.

3.   DUTIES. Doiban is engaged as Chief Executive Officer of the Company. Doiban
     will report to the Board of Directors of the Company. His duties include
     the following:

     3.1  exercise management responsibility over all business and operational
          activities of Lorcom and ensure the administration of applicable
          fiscal and personnel policies; and

     3.2  direct and coordinate all business and operational activities of all
          Lorcom divisions inclusive of monitoring overall compliance with
          applicable policies and procedures to ensure required proprietary and
          consistency of actions; and

     3.3  confer with the Board of Directors and appropriate government
          representatives to analyze and recommend priorities and goals for
          wireless communications and development needs; and

<PAGE>

     3.4  determine fiscal requirements for each of the current divisions as
          well as any future divisions; review proposed budgets for accuracy in
          conjunction with the Company's controller, accountants and auditors;
          monitor, verify and approve expenditure of budgeted funds in
          conjunction with the Company's controller, accountants and auditors;
          and

     3.5  interpret and administer policies pertaining to the hiring and
          placement of employees; direct the preparation of reports reflecting
          business and personnel activities; and

     3.6  direct the purchasing of services, equipment and materials; administer
          a program of property management and accountability; and

     3.7  plan and schedule work for the Company's divisions ensuring proper
          distribution of assignments and adequate staffing, space and
          facilities for subsequent performance of duties; and

     3.8  plan and conduct meetings with management subordinates to ensure
          compliance with established practices, to implement new policies, and
          to keep employees aware of changes and current standards; and

     3.9  perform other related duties incidental to the work described herein.

4. COMPENSATION. Lorcom will pay to Doiban compensation as follows:

     4.1  BASE COMPENSATION. Lorcom will pay to Doiban an initial base salary of
          One Hundred Four Thousand Dollars ($104,000.00) less legal
          withholdings, in accordance with company payroll policy.

     4.2  BONUS. The Company has no guaranty of a yearly bonus. The Board of
          Directors, in their sole discretion, shall determine the
          appropriateness and amount of any bonus to be paid to Doiban.

     4.3  ANTI-DILUTION OF SECURITIES. Lorcom acknowledges that at the time of
          execution of this Agreement, Doiban is the owner of approximately
          fifty-three percent (53%) of the issued and outstanding common shares
          of the Company. During the term of this Agreement and any subsequent
          employment agreement between the Company and Doiban, Doiban shall be
          entitled to purchase shares sufficient to maintain percentage
          ownership in the Company of not less than fifty-one percent (51%) of
          the issued and outstanding shares on a fully diluted basis. Doiban
          shall be entitled to purchase shares sufficient to maintain his
          percentage ownership as set forth above at a share price to be
          determined by the Board of Directors, but in no event shall the share
          price be greater than the lowest price per share paid by any
          shareholder during the term of this Agreement. However, in the event
          the Company becomes a public entity, then this anti-dilution provision
          shall be null and void.

                                      -2-
<PAGE>

     4.4  In addition to payment of the fees described above, Lorcom shall
          reimburse Doiban for such reasonable out-of-pocket expenses (such as
          travel expenses) incurred directly in connection with the performance
          of the services hereunder.

5.       EXTENT OF SERVICES. Doiban will devote all of his time, attention, and
         energies into the business of Lorcom, and shall not, during the term of
         this Agreement, and successive terms of this Agreement, if applicable,
         be engaged in any conflicting business or activity without the prior
         written consent of the Lorcom Board of Directors. For purposes of this
         Agreement, the term "conflicting business" shall be defined as any
         business which directly competes with the business of Lorcom.

6.       DOIBAN PERFORMANCE REVIEW. Within thirty (30) days after the expiration
         of the first six (6) months of this Agreement, the Company's Board of
         Directors will review Doiban's performance and provide Doiban with an
         opportunity to discuss the review with a representative of the Board.
         Doiban may waive this provision in his sole discretion.

7.       TRADE SECRETS/NON-COMPETITION.

     7.1  TRADE SECRETS.

          7.1.1     It is the express intent of the parties of this Agreement
                    that any and all such information exchanged between the
                    parties is to be considered as confidential and proprietary
                    information and shall not be used or be disclosed to any
                    person or entity without the express written permission of
                    the party providing such information (the "furnishing
                    party") or as otherwise provided herein. For purposes of
                    this Agreement, the term "Information" shall mean all
                    written information, which we deem to be confidential and
                    proprietary to us, relating to our Products (including, but
                    not limited to, data, know-how, technical and non-technical
                    materials, and product samples and specifications) which we
                    shall deliver to you pursuant to this Agreement and which
                    shall be in writing with the cover pages stamped
                    "Confidential".

          7.1.2     Doiban promises and agrees that he will not disclose or
                    utilize any trade secrets, confidential information, or
                    other proprietary information acquired during the course of
                    his service with Lorcom and/or its related business
                    entities. As used herein "trade secret" means the whole or
                    any portion or phase of any formula, pattern, device,
                    combination of devices, or compilation of information which
                    is for use, or is used, in the operation of Lorcom' s
                    business and which provides Lorcom an advantage, or an
                    opportunity to obtain an advantage, over those who do not
                    know or use it. "Trade secret" also includes any scientific,
                    technical, or commercial information, including any design,
                    list of suppliers, list of customers, or improvement
                    thereof, as well as pricing information or methodology,
                    contractual arrangement with vendors or suppliers, business
                    development plans or activities, or Lorcom financial
                    information. However, "trade secret" shall not include
                    information that is known to the public generally or is
                    obtained through sources outside Lorcom.

                                      -3-
<PAGE>

          7.1.3     During the term of this Agreement and for a period of
                    twenty-four (24) months from the expiration or termination
                    of this Agreement, and provided that Lorcom does not
                    terminate this Agreement without cause prior to the
                    expiration of the initial six (6) months of this Agreement,
                    Doiban agrees to refrain from engaging in a business which
                    directly competes with the business of Lorcom, whether as a
                    partner, consultant, owner, director, officer or employee,
                    from soliciting current or former contacts of Lorcom
                    worldwide, from soliciting existing contacts of Lorcom
                    wherever located, and from disclosing customer lists, trade
                    secrets and other confidential information.

          7.1.4     For a period of twenty-four (24) months from the expiration
                    or termination of this Agreement, Doiban promises and agrees
                    that he will not, without the express written consent of the
                    Lorcom Board of Directors, which consent will not be
                    unreasonably withheld, directly or indirectly employ, or
                    directly or indirectly solicit to employ as a consultant or
                    employee, any person who is exclusively employed as a
                    consultant or employee of Lorcom as of July 1, 2003, or any
                    person who was an employee or consultant of Lorcom during
                    the six (6) months preceding July 1, 2003.

          7.1.5     Doiban understands that Lorcom is subject to the Foreign
                    Corrupt Practices Act as enacted in the United States which
                    prohibits any U.S. company from offering monetary or other
                    incentives to procure contracts to individuals, entities, or
                    government employees to which the individuals, entities, or
                    government employees would otherwise have no entitlement. In
                    recognition of this prohibition, Doiban promises to refrain
                    from any activity which would violate this prohibition or
                    give the appearance of a violation. Further, Doiban agrees
                    to indemnify and hold Lorcom harmless from any claims or
                    damages resulting from an act or omission attributable to
                    Doiban which would result in damages being imputed to, or
                    assessed against Lorcom.

     7.2  INJUNCTIVE RELIEF. In recognition of the possibility that any
          violation of this provision by Doiban may cause irreparable or
          indeterminate damage of injury to Lorcom, Doiban expressly stipulates
          and agrees that Lorcom shall be entitled, upon five (5) business days
          written notice to Doiban, to obtain an injunction from any court of
          competent jurisdiction restraining any violation or threatened
          violation of this provision. Such right to an injunction shall be in
          addition to, and not in limitation of, any other rights or remedies
          Lorcom may have for damages.

8.       NEW TECHNOLOGIES, PROCESS, ETC. Doiban agrees to promptly disclose to
         the Company any inventions, technologies, processes or discoveries by
         Doiban of any kind and nature whatsoever which he makes, discovers, or
         devises as a result of, or in connection with, this employment by the
         Company which inventions, technologies, processes or discoveries are

                                      -4-
<PAGE>

         reasonably related to the business of the Company. Doiban shall assign
         and transfer all of his right, title and interest in and to any such
         inventions, technologies, processes or discoveries to the Company.
         Further, Doiban agrees to execute any and all documents reasonably
         requested by the Company to obtain patents or otherwise protect the
         proprietary nature of the inventions, technologies, processes or
         discoveries.

9.       TERMINATION AND SEVERANCE.

     9.1  TERMINATION EVENTS.

          9.1.1     This Agreement shall terminate automatically in the event of
                    Doiban's death, permanent disability or Doiban's conviction
                    of a felony. As used in this Agreement "permanent
                    disability" shall mean Doiban's inability to perform
                    services hereunder for a period of four (4) consecutive
                    months or for six (6) months in any twelve consecutive
                    twelve (12) month period.

          9.1.2     This Agreement shall terminate upon written notice from
                    Lorcom to Doiban in the event of (a) Doiban's failure or
                    refusal to perform reasonable directives of Lorcom when such
                    directives are consistent with the scope and nature of
                    Doiban's duties and responsibilities hereunder; or (b) any
                    gross or willful misconduct of Doiban resulting in loss to
                    Lorcom; or (c) Doiban's conviction of a felony.

          9.1.3     Lorcom or Doiban may terminate this Agreement upon ninety
                    (90) days written notice to the other.

                     Upon termination, Doiban shall return to the Company
                     all material related to Lorcom's operations.

         9.2      SEVERANCE PAY UPON TERMINATION

          9.2.1     Upon termination pursuant to Doiban's death or permanent
                    disability, Doiban will be entitled to receive all
                    compensation and benefits through the date of termination.

          9.2.2     In the event of termination resulting from a felony
                    conviction pertaining to Doiban's employment, Doiban will
                    only be entitled to receive his base salary through the date
                    of termination.

          9.2.3     If Doiban gives notice to terminate this Agreement within
                    the first six (6) months, then Doiban will only be entitled
                    to receive his base compensation through the date of
                    termination. If Doiban terminates this Agreement after the
                    first six (6) months, then Doiban will be entitled to
                    receive his base salary through the date of termination and
                    any securities prorated through the date of termination.

                                      -5-
<PAGE>

          9.2.4     If Doiban is terminated by Lorcom within the first six (6)
                    months, he shall receive all compensation and benefits
                    through the first six (6) months. If Doiban is terminated in
                    the second six (6) months, he shall receive all compensation
                    and benefits through one (1) month following termination. If
                    Doiban is terminated anytime following the second six (6)
                    months, he shall receive all compensation and benefits
                    through three (3) months following termination.

10.  ENTIRE AGREEMENT. This Agreement represents the entire understanding and
     agreement between the parties with respect to the subject matter of this
     Agreement, and supersedes all other negotiations, understandings (including
     any prior employment agreement) and representations, if any, made between
     such parties.

11.  AMENDMENTS. This Agreement shall not be altered, amended or modified unless
     it be in writing and signed by all parties to this Agreement.

12.  ASSIGNMENTS. Neither the Company nor Doiban may assign or transfer this
     Agreement or any obligation under this Agreement without the prior written
     approval of the other.

13.  BINDING EFFECT. All of the terms and provisions of this Agreement, whether
     so expressed or not, shall be binding upon, inure to the benefit of, and be
     enforceable by the parties and their respective personal representatives,
     legal representatives, heirs, successors and permitted assigns.

14.  SEVERABI1ITY. If any provision of this Agreement or any other agreement
     entered into pursuant to this Agreement is contrary to, prohibited by or
     deemed invalid under applicable law or regulation, such provision shall be
     inapplicable and deemed omitted to the extent so contrary, prohibited or
     deemed invalid under applicable law or regulation, such provision shall be
     inapplicable and deemed omitted to the extent so contrary, prohibited or
     invalid, but the remainder of such provision shall not be invalidated and
     shall be given full force and effect so far as possible. If any provision
     of this Agreement may be construed in two or more ways, one of which would
     render the provision invalid or otherwise voidable or unenforceable and
     another of which would render the provision valid and enforceable, such
     provision shall have the meaning which renders it valid and enforceable.

15.  NOTICES. All notices, requests, demands, consents and other communications
     required or permitted under this Agreement shall be in writing (including
     telex and telegraphic communication) and shall be (as elected by the person
     giving such notice) hand delivered by messenger or courier service,
     telecommunicated, or mailed (airmail if international) by registered or
     certified mail (postage prepaid), return receipt requested, addressed to:

                                      -6-
<PAGE>

         If to Doiban:              Henry Doiban
                                    35 Seacoast Terrace, Apt. 14C
                                    Brooklyn, NY 11235

         If to the Company:         Lorcom Technologies, Inc.
                                    8517 4th Avenue, 2nd Fl.
                                    Brooklyn, New York 11209

         With a copy to:            David A. Carter, Esq.
                                    David A. Carter, P.A.
                                    2300 Glades Road
                                    Suite 210, West Tower
                                    Boca Raton, Florida 33431

     Each such notice shall be deemed delivered: (a) on the date delivered if by
     personal delivery; (b) on the date of transmission with confirmed answer
     back if by telefax or other telegraphic method; or (c) on the date upon
     which the return receipt is signed or delivery is refused or the notice is
     designated by the postal authorities or courier service as not deliverable,
     as the case may be, if mailed or couriered.

16.  JURISDICTION AND VENUE. The parties acknowledge that a substantial portion
     of negotiations, anticipated performance and execution of this Agreement
     occurred or shall occur in Kings County, New York. Regardless of any
     location of such occurrences, each of the parties irrevocably and
     unconditionally: (a) agrees that any suit, action or legal proceeding
     arising out of or relating to this Agreement shall be brought in the courts
     of record of the State of New York in Kings County or the Federal District
     Court of the United States, Southern District of New York; (b) consents to
     the jurisdiction of each such court in any such suit, action or proceeding;
     (c) waives any objection which it may have to the laying of venue of any
     such suit, action or proceeding in any of such courts; and (d) agrees that
     service of any court paper may be effected on such party by mail, as
     provided in this Agreement, or in such other manner as may be provided
     under applicable laws or court rules in State of New York.

17.  ATTORNEYS FEES: The parties covenant and agree that if a default or
     disagreement occurs pursuant to or concerning this Agreement which
     necessitates legal proceedings, the prevailing party shall be entitled to
     recover reasonable costs and attorneys fees, inclusive of appellate and
     bankruptcy proceedings.

18.  GOVERNING LAW. This Agreement and all transactions contemplated by this
     Agreement shall be governed by, and construed and enforced in accordance
     with, the internal laws of the State of New York without regard to
     principles of conflicts of laws.

19.  COUNTERPARTS. This Agreement may be executed in counterparts, each of which
     when so executed shall be deemed to be an original and such counterparts
     shall together constitute one and the same instrument.

20.  OTHER OBLIGATIONS OF THE COMPANY. The Company will add Doiban to the
     Company's Director and Officer's Liability Policy, said coverage to
     commence and continue during Doiban's term of employment with the Company.

                                      -7-
<PAGE>

IN WITNESS WHEREOF, the parties have executed this Agreement this 24th day of
June, 2003.

                                               LORCOM TECHNOLOGIES, INC.

                                               /S/ VADIM KHASELEV
                                               ------------------
                                               Its: Vice President of Operations

                                               Employee:

                                               /S/ HENRY DOIBAN
                                               ------------------
                                               Henry Doiban

                                      -8-
<PAGE>

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