Document:

ex_108887.htm

Exhibit 10.17

 

 

Touchpoint Metrics, Inc.

Employment Agreement

May 16, 2015

Stephen Shay

21104 NE 130th Court 

Woodinville, WA  98077

 

Re: Employment Agreement

 

Dear Steve:

 

We are pleased to offer you the position of Vice President of Touchpoint Metrics, Inc. (the “Company”). Your employment by the Company shall be governed by the following terms and conditions (this “Agreement”):

 

1.           Duties and Scope of Employment.

 

(a)     Start Date. You shall start full-time Employment May 16, 2015.

 

(b)     Position. For the term of your employment under this Agreement (your “Employment”), the Company agrees to employ you in the position of Vice President. You will report to the Company’s President and CEO, Michael Hinshaw. You will perform the duties and have the responsibilities and authority customarily performed and held by an employee in your position or as otherwise may be assigned or delegated to you by the Company’s President and CEO, including but not limited to the duties and responsibilities described in the Exhibit C: Job Scorecard. 

 

(c)     Obligations to the Company. During your Employment, you shall devote your full business efforts and time to the Company. During your Employment, you shall not render services in any capacity to any other person or entity and shall not act as a sole proprietor or partner of any other person or entity or own more than five percent of the stock of any other corporation, without the prior written approval of the President and CEO. Notwithstanding the foregoing, you may serve on corporate, civic or charitable boards or committees, deliver lectures, fulfill speaking engagements, teach at educational institutions, or manage personal investments without such advance written consent, provided that such activities do not individually or in the aggregate interfere with the performance of your duties under this Agreement. You shall comply with the Company’s policies and rules, as they may be in effect from time to time during your Employment.

 

(d)     No Conflicting Obligations. You represent and warrant to the Company that you are under no obligations or commitments, whether contractual or otherwise, that are inconsistent with your obligations under this Agreement. In connection with your Employment, you shall not use or disclose any trade secrets or other proprietary information or intellectual property in which you or any other person has any right, title or interest and your Employment will not infringe or violate the rights of any other person. You represent and warrant to the Company that you have returned all property and confidential information belonging to any prior employer.

 

2.           Compensation.

 

(a)     Salary. The Company shall pay you an initial base salary at a gross annual rate of $240,000. Such salary shall be payable in accordance with the Company’s standard payroll procedures. The annual compensation specified in this subsection (a), together with any modifications in such compensation that the Company may make from time to time, is referred to in this Agreement as “Base Salary.”

 

 

 

 

(b)     Initial Stock Option Grant. In connection with commencement of your employment and subject to the approval of the Company’s Board of Directors (the “Board”), the Company shall grant you an option to purchase 600,000 shares of the Company’s Common Stock (the “Option”). The exercise price per share will be equal to the fair market value per share on the date the Option is granted, as determined by the Company’s Board of Directors in good faith compliance with applicable guidance in order to avoid having the Option be treated as deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended. There is no guarantee that the Internal Revenue Service will agree with this value. You should consult with your own tax advisor concerning the tax risks associated with accepting an option to purchase the Company’s Common Stock. The term of the Option shall be 10 years, subject to earlier expiration in the event of the termination of your services to the Company. The Option shall vest and become exercisable at the rate of 20% of the total number of option shares after the first six months of continuous service, and thereafter 20% of the total number of option shares shall become vested and exercisable in equal installments every six months of continuous service. The Option shall be subject to the other terms and conditions set forth in the Company’s Share Option Plan (the “Stock Plan”) and in the Company's standard form of stock Option Commitment (the “Option Commitment”).

 

(c)     Time Off. You will be entitled to paid time off during the time you are employed by the Company in accordance with the Company’s time off policies. 

 

3.           Business Expenses. The Company will reimburse you for your necessary and reasonable business expenses incurred in connection with your duties hereunder upon presentation of an itemized account and appropriate supporting documentation, all in accordance with the Company’s generally applicable policies.

 

4.           Health and Dental Insurance Coverage. During your Employment, you shall be eligible to participate in the employee benefit plans maintained by the Company and generally available to similarly situated employees of the Company, subject in each case to the generally applicable terms and conditions of the plan in question and to the determinations of any person or committee administering such plan. The Company will be responsible for payment of premiums for coverage of your health and dental insurance plans that the Company may have in effect from time to time, not to exceed $500. You will have the option of adding spouse and/or dependents to the health and/or dental insurance plans that the Company may have in effect from time to time, not to exceed $500. Costs of health and/or insurance plans that exceed $500 will be your responsibility.

 

5.          Termination. Your Employment shall be “at will,” meaning that either you or the Company shall be entitled to terminate your Employment at any time and for any reason, with or without Cause. Any contrary representations that may have been made to you shall be superseded by this Agreement. This Agreement shall constitute the full and complete agreement between you and the Company on the “at-will” nature of your Employment, which may only be changed in an express written agreement signed by you and a duly authorized officer of the Company.

 

6.           Non-Solicitation. During the period commencing on the date of this Agreement and continuing until the third anniversary of the date when your Employment terminated for any reason, you shall not directly or indirectly, personally or through others, solicit or attempt to solicit (on your own behalf or on behalf of any other person or entity) either (i) any employee or any consultant of the Company or any of the Company’s affiliates or (ii) the business of any customer of the Company or any of the Company’s affiliates on whom you called or with whom you became acquainted during your Employment.

 

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7.           Pre-Employment Conditions.

 

(a)     Confidentiality Agreement. Your acceptance of this offer and commencement of employment with the Company is contingent upon the execution, and delivery to an officer of the Company, of the Company’s Confidential Information and Invention Assignment Agreement, attached hereto as Attachment A (the “Confidentiality Agreement”), prior to or on your Start Date. 

 

(b)     Right to Work. For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your Start Date, or our employment relationship with you may be terminated.

 

(c)     Verification of Information. This offer of employment is also contingent upon the successful verification of the information you provided to the Company during your application process, as well as a general background check performed by the Company to confirm your suitability for employment. By accepting this offer of employment, you warrant that all information provided by you is true and correct to the best of your knowledge, you agree to execute any and all documentation necessary for the Company to conduct a background check and you expressly release the Company from any claim or cause of action arising out of the Company’s verification of such information.

 

8.           Successors.

 

(a)     Company’s Successors. This Agreement shall be binding upon any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business or assets that becomes bound by this Agreement.

 

(b)     Your Successors. This Agreement and all of your rights hereunder shall inure to the benefit of, and be enforceable by, your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

 

9.           Miscellaneous Provisions.

 

(a)     Withholding Taxes. All payments made under this Agreement shall be subject to reduction to reflect taxes or other charges required to be withheld by law.

 

(b)     No Assignment. This Agreement and all of your rights and obligations hereunder are personal to you and may not be transferred or assigned by you at any time. The Company may assign its rights under this Agreement to any entity that assumes the Company’s obligations hereunder.

 

(c)     Notices. All legal notices contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In your case, mailed notices shall be addressed to you at the home address that you most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary.

 

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(d)     Modifications and Waivers. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by you and by an authorized officer of the Company (other than you). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

 

(e)     Entire Agreement. This Agreement supersedes any and all prior offer letters or employment agreements entered into between you and the Company. This Agreement and the Confidentiality Agreement contain the entire understanding of the parties with respect to the subject matter hereof. No other agreements, representations or understandings (whether oral or written and whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof.

 

(f)     Severability. If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any applicable jurisdiction by reason of the scope, extent or duration of its coverage, then such provision shall be deemed amended to the minimum extent necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision shall be stricken and the remainder of this Agreement shall continue in full force and effect. If any provision of this Agreement is rendered illegal by any present or future statute, law, ordinance or regulation (collectively, the “Law”) then that provision shall be curtailed or limited only to the minimum extent necessary to bring the provision into compliance with the Law. All the other terms and provisions of this Agreement shall continue in full force and effect without impairment or limitation.

 

(g)     Governing Law. This Agreement shall be interpreted in accordance with the laws of the State of California without giving effect to provisions governing the choice of law.

 

(h)     Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

 

	
			

				 	
			

			

 

 

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Attachment A

Touchpoint Metrics, Inc.

Confidential Information and Invention Assignment Agreement

 

As a condition of my becoming employed (or my employment being continued) by or retained as a consultant (or my consulting relationship being continued) by Touchpoint Metrics, Inc. or any of its current or future subsidiaries, affiliates, successors or assigns (collectively, the “Company”), and in consideration of my employment or consulting relationship with the Company and my receipt of the compensation now and hereafter paid to me by the Company, I agree to the following:

 

1.           Employment or Consulting Relationship. I understand and acknowledge that this letter does not alter, amend or expand upon any rights I may have to continue in the employ of, or in a consulting relationship with, or the duration of my employment or consulting relationship with, the Company under any existing agreements between the Company and me or under applicable law. Any employment or consulting relationship between the Company and me, whether commenced prior to or upon the date of this letter, shall be referred to herein as the “Relationship.”

 

2.           At-Will Relationship. I understand and acknowledge that my Relationship with the Company is and shall continue to be at-will, as defined under applicable law, meaning that either I or the Company may terminate the Relationship at any time for any reason or no reason, without further obligation or liability.

 

3.           Confidentiality.

 

(a)      Company Information. I agree at all times during the term of my Relationship with the Company and thereafter, to hold in strictest confidence, and not to use, except for the benefit of the Company to the extent necessary to perform my obligations to the Company under the Relationship, or to disclose to any person, firm, corporation or other entity without written authorization of the Company, any Confidential Information of the Company which I obtain or create. I further agree not to make copies of such Confidential Information except as authorized by the Company. I understand that “Confidential Information” means any information treated and/or maintained by the Company or any other person as confidential and/or proprietary, whether oral or written or in tangible form, and whether or not it is designated or otherwise marked as confidential or proprietary, including trade secrets, non-public intellectual property and other property rights, as well as technical data, trade secrets or know-how, including, but not limited to, research, present and future methodologies, business, development and product plans, products, services, suppliers, employees, suppliers, vendors, contractors, client and customer lists and clients and customers (including, but not limited to, clients and customers of the Company on whom I called or with whom I became acquainted during the Relationship), prices and costs, markets, software, developments, inventions, laboratory notebooks, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, licenses, finances, budgets, forecasts, market testing, specifications, configurations, designs, drawings, apparatuses, sketches, data, any and all confidential or proprietary business information and interests protectable under applicable law, or other information disclosed to me by the Company either directly or indirectly in writing, orally or by drawings or observation of parts or equipment or created by me during the period of the Relationship, whether or not during working hours. I understand that “Confidential Information” includes, but is not limited to, information pertaining to any aspects of the Company’s business which is either information not known by actual or potential competitors of the Company or other third parties not under confidentiality obligations to the Company, or is otherwise proprietary information of the Company or its customers or suppliers, whether of a technical nature or otherwise. I further understand that Confidential Information does not include any of the foregoing items which has become publicly and widely known and made generally available through no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved.

 

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(b)     Ownership; Nondisclosure. I agree at all times during the term of my Relationship with the Company and thereafter, to hold in strictest confidence, and not to use, except for the benefit of the Company to the extent necessary to perform my obligations to the Company under the Relationship, or to disclose to any third party without written authorization of the Company, any Confidential Information of the Company which I obtain or create. I agree that my relationship with Company does not vest in me any interest in any Confidential Information, other than the right to use Confidential Information as necessary to perform my duties and obligations as an employee and under any written agreement with the Company relating to the Relationship in accordance with the terms and conditions of such agreement, and that the use or duplication of Confidential Information in any other business or for any other purpose would constitute an unfair method of competition. I acknowledge and agree that all Confidential Information, regardless of whether or when created or received by me, belongs to the Company, a client, or any of their respective affiliates or suppliers, may contain trade secrets belonging to Company, a client, or any of their respective affiliates or suppliers, and is disclosed to Consultant or authorized for my use solely on the condition that I agree, and I hereby agree, that I: (i) will not use Confidential Information, directly or indirectly, in any other business or capacity or for my own or any other person’s benefit or purpose, except as permitted by this Agreement or as authorized in writing by the Company; (ii) will maintain the absolute confidentiality of Confidential Information during and after the term of discussions, the Relationship, and at any later time; (iii) will not make unauthorized copies of any portion of Confidential Information disclosed in written form or any other form that may be copied or duplicated; and (iv) will adopt and implement all reasonable procedures that either the Company or any client may prescribe from time to time to prevent unauthorized use or disclosure of Confidential Information, including restrictions on disclosure to Company employees or suppliers, and the use of non-disclosure and non-competition agreements that the Company or any client may prescribe or approve for my shareholders, partners, members, officers, managers, directors, employees, independent contractors, agents, or representatives who may have access to Confidential Information. 

 

(c)     Use And Return. I agree that all Confidential Information and all other information, documents, and things (such as, but not limited to, programs, software, files, documentation, reports, lists, computers, peripherals, books, manuals, supplies, equipment, e-mail messages, and voice mail messages) that I make or that come into my possession by reason of discussions or the Relationship are the property of the Company, a client, or their respective affiliates or suppliers (and are not my property). I agree that I will not use them in any way except in the regular course of discussions or as necessary to perform my duties and obligations under any written agreement with The Company relating to the Relationship in accordance with the terms and conditions of such agreement, and I agree that I will return them to The Company promptly upon request of The Company. I agree that I will not take, reproduce, or retain originals of any Confidential Information or any information, documents, or things of The Company, any client, or any of their respective affiliates without the express written permission of The Company.

 

(d)     Unauthorized Disclosure. I shall notify The Company immediately upon the discovery of any unauthorized use or disclosure of any Confidential Information, and will cooperate with The Company in every reasonable way to assist The Company in regaining possession of the Confidential Information and in preventing its further unauthorized use or disclosure.

 

(e)     Compelled Disclosure. If I am required to disclose any Confidential Information by order of a court or other legal authority, or by operation of law, I will give The Company prompt written notice thereof, and will consult and cooperate with The Company and provide reasonable assistance as requested by The Company in its efforts to prevent or narrow the disclosure or to obtain a protective order, decree, or other reliable assurance that confidential treatment will be accorded the information disclosed. To the fullest extent permitted by law I will continue to protect as confidential and proprietary under this Agreement all Confidential Information disclosed in response to a court order, subpoena, regulation, or other process of law.

 

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(f)     Prior Obligations. I represent that my performance of all terms of this letter as an employee or consultant of the Company has not breached and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me prior or subsequent to the commencement of my Relationship with the Company, and I will not disclose to the Company or use any inventions, confidential or non-public proprietary information or material belonging to any previous, client, employer or any other party. I will not induce the Company to use any inventions, confidential or non-public proprietary information, or material belonging to any previous client, employer or any other party.

 

(g)     Third Party Information. I recognize that the Company has received and in the future will receive confidential or proprietary information from its clients, customers, licensees, employees, contractors, suppliers, vendors, licensors and other third parties subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. I agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for the Company consistent with the Company’s agreement with such third party.

 

(h)     No Expectation of Privacy. I agree that I have no expectation of privacy with respect to Company’s telecommunications, software, networking, or information processing systems (including computer files, e-mails, and voice mail messages), and that my activity and any files and messages on or using any of these systems may be monitored at any time without notice.

 

(i)     Additional Obligations. I acknowledge that Company may, from time to time, enter into or renew agreements with other persons, including federal, state, and local governments or agencies thereof, related to the Relationship that impose certain obligations or restrictions on the Company regarding Confidential Information or other information identified in those agreements. I agree to be bound by all such obligations and restrictions and to take all action necessary to honor the obligations of the Company thereunder, including signing such confidentiality, non-disclosure, and other agreements as may be required by other persons or third parties as a condition to The Company obtaining or using Confidential Information or other information identified in those agreements. I further acknowledge that in connection with discussions or the Relationship, I may come into possession or knowledge of the Confidential Information of another person in the absence of any agreement with that person regarding such information, and I agree that in such event I will protect and maintain the confidentiality of such Confidential Information to the same extent as I am obligated to protect and maintain the confidentiality of Confidential Information under this Agreement and subject to the same restrictions on disclosure and use of Confidential Information set forth in this Agreement.

 

(j)     Competitive Use. I agree not to use any Confidential Information or any other property of the Company, any client, or any of their respective affiliates or suppliers to compete with the Company, either directly or indirectly, in any manner, during or after discussions or the Relationship at any time.

 

4.           Inventions.

 

(a)     Inventions Retained and Licensed. I have attached hereto, as Exhibit A, a list describing with particularity all inventions, original works of authorship, developments, improvements, and trade secrets which were made by me prior to the commencement of the Relationship (collectively referred to as “Prior Inventions”), which belong solely to me or belong to me jointly with another, which relate in any way to any of the Company’s proposed businesses, products or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, I represent that there are no such Prior Inventions. If, in the course of my Relationship with the Company, I incorporate into a Company product, process or machine a Prior Invention owned by me or in which I have an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license (with the right to sublicense) to make, have made, copy, modify, make derivative works of, use, sell and otherwise distribute such Prior Invention as part of or in connection with such product, process or machine.

 

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(b)     Assignment of Inventions. I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title and interest throughout the world in and to any and all inventions, original works of authorship, developments, concepts, know-how, improvements or trade secrets, whether or not patentable or registrable under copyright or similar laws, which I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time in which I am employed by or a consultant of the Company (collectively referred to as “Inventions”), except as provided in Section 4(e) below. I further acknowledge that all inventions, original works of authorship, developments, concepts, know-how, improvements or trade secrets which are made by me (solely or jointly with others) within the scope of and during the period of my Relationship with the Company are “works made for hire” (to the greatest extent permitted by applicable law) and are compensated by my salary (if I am an employee) or by such amounts paid to me under any applicable consulting agreement or consulting arrangements (if I am a consultant), unless regulated otherwise by the mandatory law of the state of California.

 

(c)     Maintenance of Records. I agree to keep and maintain adequate and current written records of all Inventions made by me (solely or jointly with others) during the term of my Relationship with the Company. The records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, laboratory notebooks, and any other format. The records will be available to and remain the sole property of the Company at all times. I agree not to remove such records from the Company’s place of business except as expressly permitted by Company policy which may, from time to time, be revised at the sole election of the Company for the purpose of furthering the Company’s business. I agree to return all such records (including any copies thereof) to the Company at the time of termination of my Relationship with the Company as provided for in Section 5.

 

(d)     Patent and Copyright Rights. I agree to assist the Company, or its designee, at its expense, in every proper way to secure the Company, or its designee’s, rights in the Inventions and any copyrights, patents, trademarks, mask work rights, moral rights, or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company or its designee of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments which the Company or its designee shall deem necessary in order to apply for, obtain, maintain and transfer such rights and in order to assign and convey to the Company or its designee, and any successors, assigns and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this letter until the expiration of the last such intellectual property right to expire in any country of the world. If the Company or its designee is unable because of my mental or physical incapacity or unavailability or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents, copyright, mask works or other registrations covering Inventions or original works of authorship assigned to the Company or its designee as above, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters patent, copyright or other registrations thereon with the same legal force and effect as if originally executed by me. I hereby waive and irrevocably quitclaim to the Company or its designee any and all claims, of any nature whatsoever, which I now or hereafter have for infringement of any and all proprietary rights assigned to the Company or such designee.

 

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(e)     Exception to Assignments. I understand that the provisions of this letter requiring assignment of Inventions to the Company do not apply to any invention which I developed entirely on my own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or (2) Result from any work performed by the employee for the employer. I will advise the Company promptly in writing of any inventions that I believe meet such provisions and are not otherwise disclosed on Exhibit A.

 

5.           Returning Company Documents. I agree that, at the time of termination of my Relationship with the Company, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, materials, flow charts, equipment, other documents or property, or reproductions of any of the aforementioned items developed by me pursuant to the Relationship or otherwise belonging to the Company, its successors or assigns. I further agree that any property situated on the Company’s premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice. 

 

6.           Notification to Other Parties. In the event that I leave the employ of the Company, I hereby consent to notification by the Company to my new employer about my rights and obligations under this letter. I hereby grant consent to notification by the Company to any other parties besides the Company with whom I maintain a consulting relationship, including parties with whom such relationship commences after the effective date of this letter, about my rights and obligations under this letter.

 

7.           Solicitation of Employees, Consultants and Other parties. I agree that during the term of my Relationship with the Company, and for a period of thirty-six (36) months immediately following the termination of my Relationship with the Company for any reason, whether with or without cause, I shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees or consultants, suppliers, vendors or licensors to terminate their relationship with the Company, or take away, hire, or otherwise engage the services of the Company’s employees, consultants, suppliers, vendors or contractors, or attempt to solicit, induce, recruit, encourage or take away employees, consultants, vendors or contractors of the Company, either for myself or for any other person or entity. Further, for a period of twelve (12) months following termination of my Relationship with the Company for any reason, with or without cause, I shall not solicit or accept any business from any client, customer or licensee of the Company or the Company’s products, in each case, that were introduced by the Company to me or are known to me or reasonably should been known to me, with respect to any business, products or services that (a) are competitive to the products or services offered by the Company, (b) I know or should reasonably know the Company intended or intends to offer its clients, customer or licensees, or (c) are under development as of the date of termination of my Relationship with the Company.

 

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8.           Representations and Covenants.

 

(a)     Facilitation of Agreement. I agree to execute promptly any proper oath or verify any proper document required to carry out the terms of this letter upon the Company’s written request to do so.

 

(b)     Conflicts. I represent that my performance of all the terms of this letter does not and will not breach any agreement I have entered into, or will enter into with any third party, including without limitation any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to commencement of my Relationship with the Company.

 

(c)     Voluntary Execution. I certify and acknowledge that I have carefully read all of the provisions of this letter and that I understand and will fully and faithfully comply with such provisions.

 

9.           General Provisions.

 

(a)     (a)     Governing Law. The validity, interpretation, construction and performance of this letter shall be governed by the laws of the State of California, without giving effect to the principles of conflict of laws.

 

(b)     Entire Agreement; Waiver; Modification. This letter sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us. No modification or amendment to this letter, nor any waiver of any rights under this letter, will be effective unless in writing signed by both parties. Any subsequent change or changes in my duties, obligations, rights or compensation will not affect the validity or scope of this letter.

 

(c)     Severability. If one or more of the provisions in this letter are deemed void by law, then the remaining provisions will continue in full force and effect.

 

(c)     Successors and Assigns. This letter will be binding upon my heirs, executors, administrators and other legal representatives, and my successors and assigns, and will be for the benefit of the Company, its successors, and its assigns.

 

(d)     Survival. The provisions of this letter shall survive the termination of the Relationship and the assignment of this letter by the Company to any successor in interest or other assignee.

 

(e)     ADVICE OF COUNSEL. I ACKNOWLEDGE THAT, IN EXECUTING THIS AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.

 

The parties have executed this letter on the respective dates set forth below.

 

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EXHIBIT A

 

LIST OF PRIOR INVENTIONS

AND ORIGINAL WORKS OF AUTHORSHIP

EXCLUDED UNDER SECTION 4

 

	
			

			Title 

				
			

			Date 

				
			Identifying Number

			or Brief Description

			
	 	 	 
	None	 n/a 	n/a

 

                                                

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT C

 

JOB SCORECARD

 

 

	
			Accountabilities:

				
			Metrics:

			 

			
	
			Strategic Planning, in partnership with COO and CEO

				■	
			Relevant and current One-Page Strategic Plan (OPSP), updated quarterly and annually

			 

			
	
			Business Development

				■	
			Revenue targets defined in the OPSP

			
	 	■	15% Cost of Sales or less (direct sales costs)
	 	■	
			Close rate of 30% of sales opportunities

			 

			
	
			Client Engagement Management

				■	
			CX Index score of 85% or above

			
	 	■	60% gross margin or higher (revenue less direct delivery costs)
	 	■	90% on time project completion
	 	■	
			50% follow-on project sales

			 

			
	
			Product and Service Offering Development

				■	
			3-6 new ideas market tested per year

			
	 	■	1+ new products released to market per year
	 	■	<9 months time for MVP to market
	 	■	
			>40% gross margin in year 1

			 

			

 

Key Competencies (Technical and Cultural):

 

	 	
			■

				
			Customer insights and understanding

			

	 	
			■

				
			Customer experience domain expertise

			

	 	
			■

				
			Product development

			

	 	
			■

				
			Distribution channel development and management

			

	 	
			■

				
			Sales organization development and management

			

	 	
			■

				
			Consulting services delivery and client engagement management

			

	 	
			■

				
			Innovative

			

	 	
			■

				
			Passionate about CX

			

	 	
			■

				
			Results-driven

			

	 	
			■

				
			Likes to have fun

			

	 	
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-13-IntelGenx Technologies Corp.: Exhibit 10.25 - Filed by newsfilecorp.com

INTELGENX TECHNOLOGIES CORP.

DEFERRED SHARE UNIT PLAN 

	Section 1. 	Interpretation and Administrative
      Provisions 

	1.1 	
      Purpose

The purposes of the Plan are to: (i) align the interests of
Directors of the Corporation with the long term interests of shareholders; and
(ii) allow the Corporation to attract and retain high quality Directors. 

	1.2 	
      Definitions

For the purposes of the Plan, the following terms have the
following meanings: 

“Affiliate” has the meaning set forth in the
  Securities Act. 

“Award” means a Deferred Share
Unit granted under this Plan.

“Award Account” means the
notional account maintained for each Participant to which Deferred Share Units
are credited. 

“Award Date” means the date that
retainer compensation is paid to a Participant. 

“Award Agreement” means a
signed, written agreement between a Participant and the Corporation,
substantially in the form attached as Schedule A, subject to any amendments or
additions thereto as may, in the discretion of the Board, be necessary or
advisable, evidencing the terms and conditions on which an Award has been
granted under this Plan. 

“Award Value” means such amount
as may be determined from time to time by the Board as the original value of the
Award to be paid to a Participant and specified in the Participant’s Award
Agreement. 

“Board” means the board of
directors of the Corporation as constituted from time to time. 

“Canadian Participant” means any
Participant who is not a U.S. Participant and who is a Canadian resident for tax
purposes. 

“Code” means the U.S. Internal
Revenue Code of 1986, as amended from time to time and the Treasury Regulations
promulgated thereunder. 

- 2 - 

“Committee” means the committee
of the Board to which the Board has delegated responsible for director
compensation, currently the Compensation Committee, and in the absence of such a
delegation means the Board.

“Common Share” means a “Share”
means one (1) common share with $0.00001 par value in the capital stock of the
Corporation as constituted on the Effective Date or, in the event of an
adjustment contemplated, such other shares or securities to which the holder of
an Award may be entitled as a result of such adjustment. 

“Corporation” means IntelGenx
Technologies Corp. 

“Date of Grant” means, for a
Deferred Share Unit, the date specified by the Board at the time it grants the
Award (which, for greater certainty, shall be no earlier than the date on which
the Board meets for the purpose of granting such Award) or if no such date is
specified, the date upon which the Award was granted. 

“Deferred Share Unit” means a
right granted to an Eligible Person to receive, as set out in the Plan, the
Share Unit Amount. 

“Director” means a director of
the Corporation who is not an employee of the Corporation or a subsidiary of the
Corporation. 

“Dividend Deferred Share Unit”
has the meaning set out in Section 3.3. 

“Effective Date” means the
effective date of this Plan, being February 5, 2018. 

“Election Notice” means a notice
substantially in the form set out as Schedule B, as amended by the Committee
from time to time. 

“Eligible Person” means any
Director of the Corporation. 

“Exchange” means such stock
exchange or other organized market on which the Shares are or may be listed or
posted for trading from time to time, including as applicable the TSX-V or the
TSX. 

“Expiry Date” means the date set
out in the Award Agreement, which may not be later than December 31 of the year
following the year in which the Participant ceased to hold all positions with
the Corporation. 

“Grant Date” means the date the
Board completes all requisite actions required to approve the grant of a
Deferred Share Unit. 

“Market Price” at any date in
respect of the Shares shall be the closing price of such Shares on the Exchange
(and if listed on more than one stock exchange, then the highest of such closing
prices) on the last business day on which the Shares traded, prior to the
relevant date. In the event that Shares are traded in different currencies on
more than one exchange, the Market Prices of such Shares shall be converted to a
common currency based on the Bank of Canada exchange rate for the business day
in question. In the event that such Shares are not listed and
posted for trading on any stock exchange, the Market Price shall be the Market
Price of such Shares as determined by the Board in its sole discretion. 

- 3 - 

“Participant” means any Eligible
Person to whom a Deferred Share Unit is granted. 

“Plan” means the IntelGenx
Technologies Corp. Deferred Share Unit Plan as amended from time to time. 

“Redemption Date” has the
meaning set out in Section 3.4. 

“Redemption Notice” mean a
notice substantially in the form set out as Schedule C, as amended by the
Committee from time to time. 

“Securities Act” means the
Securities Act (Ontario), as amended, or such other successor legislation
as may be enacted, from time to time. 

“Securities Laws” means
securities legislation, securities regulation and securities rules, as amended,
and the policies, notices, instruments and blanket orders in force from time to
time that govern or are applicable to the Corporation or to which it is subject,
including, without limitation, the Securities Act. 

“Share Unit Account” means the
notional account maintained for each Participant to which Deferred Share Units
are credited. 

“Share Unit Amount” has the
meaning set out in Section 3.5. 

“Termination Date” means the
date a Participant ceases to be a Director of the Company for any reason.

“Treasury Regulations”
means the Treasury Regulations promulgated under the Code. 

“TSX-V” means the TSX Venture
Exchange; 

“TSX” means the Toronto Stock
Exchange; 

“U.S. Participant” means, any
Participant who is a United States citizen or United States resident alien as
defined for purposes of Code Section 7701(b)(1)(A). 

“Vested Deferred Share Unit” has
the meaning set out in Section 3.8. 

“Vesting Date” means the date or
dates designated in the Award Agreement, or such earlier date as is provided for
in the Plan or is determined by the Committee.

Where the context so requires, words importing the singular
number include the plural and vice versa, and words importing the masculine
gender include the feminine and neuter genders. 

- 4 - 

	1.3 	
      Effective Date of Plan

The effective date of the Plan is February 5, 2018. 

	Section 2. 	Administration 

	2.1 	
      Administration of the Plan

Subject to the Committee reporting to the Board on all matters
relating to this Plan and obtaining approval of the Board for those matters
required by the Committee’s mandate, this Plan will be administered by the
Committee which has the sole and absolute discretion to: (i) recommend to the
Board grants of Deferred Share Units to Eligible Persons; (ii) interpret and
administer the Plan; (iii) establish, amend and rescind any rules and
regulations relating to the Plan; (iv) establish conditions to the vesting of
Deferred Share Units; and (v) make any other determinations that the Committee
deems necessary or desirable for the administration of the Plan. The Committee
may correct any defect or supply any omission or reconcile any inconsistency in
the Plan, in the manner and to the extent the Committee deems, in its sole and
absolute discretion, necessary or desirable. Any decision of the Committee with
respect to the administration and interpretation of the Plan shall be conclusive
and binding on the Participants. 

To the extent that any Deferred Share Unit granted to a U.S.
Participant is determined to constitute “nonqualified deferred compensation”
within the meaning of Code Section 409A, such Deferred Share Unit shall be
subject to such additional rules and requirements as specified by the Committee
from time to time in order to comply with Code Section 409A. If any provision of
the Plan contravenes Code Section 409A or could cause the U.S. Participant to
incur any tax, interest or penalties under Code Section 409A, the Committee may,
in its sole discretion and without the U.S. Participant’s consent, modify such
provision to (i) comply with, or avoid being subject to, Code Section 409A, or
to avoid incurring taxes, interest or penalties under Code Section 409A, and
otherwise (ii) maintain, to the maximum extent practicable, the original intent
and economic benefit to the U.S. Participant of the applicable provision without
materially increasing the cost to the Corporation or contravening Code Section
409A. However, the Corporation shall have no obligation to modify the Plan or
any Deferred Share Unit and does not guarantee that Deferred Share Units will
not be subject to taxes, interest and penalties under Code Section 409A.

	2.2 	
      Governing Law

The Plan shall be governed by and construed in accordance with
the federal laws of Canada applicable therein.

	2.3 	
      Determination of Value if Common Shares Not Publicly
      Traded

Should Common Shares no longer be publicly traded at the
relevant time such that the Market Price cannot be determined in accordance with
the formula set out in the definition of that term, the Market Price of a Common
Share shall be determined by the Board in its sole discretion.

- 5 - 

	2.4 	
      Taxes and Other Source
Deductions

The granting or vesting of each Award under this Plan is
subject to the condition that if at any time the Board determines, in its
discretion, that the satisfaction of withholding tax or other withholding
liabilities is necessary or desirable in respect of such grant or vesting, such
action is not effective unless such withholding has been effected to the
satisfaction of the Board. 

	2.5 	
      U.S. Participant

Notwithstanding any other provision of the Plan to the
contrary, the acceleration of the time of any payment under the Plan is
prohibited except as provided in Treasury Regulation Section 1.409A -3(j)(4) and
administrative guidance promulgated under Section 409A of the Code. 

	Section 3. 	Deferred Share Units

	3.1 	
      Awards of Deferred Share
Units

The Board may grant Deferred Share Units to Eligible Persons in
its sole discretion. The award of a Deferred Share Unit to an Eligible Person at
any time shall neither entitle such Eligible Person to receive nor preclude such
Eligible Person from receiving a subsequent grant of Deferred Share Units.

	3.2 	
      Election to Defer Director
  Retainer

An Eligible Person may elect to defer all or any portion of the
retainer that would otherwise be received by the Eligible Person in cash, by
electing to receive such retainer in the form of Deferred Share Units, by
delivering to the Corporation an Election Notice not later than December 31 of
the year preceeding the first date of any period in respect of which the
retainer would be earned, provided that an Eligible Person who is appointed
after December 31 may make an election immediately following their appointment.
An Eligible Person who elects to defer retainer compensation by electing to
receive such retainer in the form of Deferred Share Units will be awarded the
number of Deferred Share Units determined by dividing the dollar amount of the
retainer to be deferred by the Market Price of a Common Share as at the Award
Date. Elections pursuant to this section, when made, shall be irrevocable and
may not be made during a period when the Eligible Person is prohibited from
trading in securities of the Corporation by the Corporation’s disclosure and
insider trading policy.

- 6 - 

	3.3 	
      Crediting of Deferred Share Units and Dividend
      Deferred Share Units

Deferred Share Units granted to a Participant shall be credited
to the Participant’s Share Unit Account on the Grant Date. Each grant of
Deferred Share Units must be confirmed by an Award Agreement signed by the
Corporation and the Participant. From time to time, a Participant’s Share Unit
Account shall be credited with Dividend Deferred Share Units in the form of
additional Deferred Share Units (“Dividend Deferred Share Units”) in
respect of outstanding Deferred Share Units on each dividend payment date in
respect of which normal cash dividends are paid on Shares. Such Dividend
Deferred Share Units shall be computed as: 

	 	a) 	
      the amount of the dividend declared and paid per Common
      Share multiplied by the number of Deferred Share Units recorded in the
      Participant’s Share Unit Account on the date for the payment of such
      dividend, divided by

	 	 	 
	 	b) 	
      the Market Price of a Common Share as at the dividend
      payment date.

	3.4 	
      Redemption Date

Awards of Deferred Share Units shall be redeemed on the earlier
of: 

	 	a) 	
      six months following the date on which a Participant
      ceases to be an Eligible Person; and

	 	 	 
	 	b) 	
      the Expiry Date.

	3.5 	
      Redemption of Deferred Share
  Units

The Corporation shall redeem the Vested Deferred Share Units on
the Redemption Date by paying to the Participant an amount (the “Share Unit
Amount”) equal to: (A) the number of Vested Deferred Share Units elected to
be redeemed multiplied by (B) the Market Price, less statutorily required
applicable withholding taxes. The Share Unit Amount shall be paid as a lump-sum
by the Corporation within ten business days of the Redemption Date.

	3.6 	
      Effect of Redemption of Deferred Share
    Units.

A Participant shall have no further rights respecting any
Vested Deferred Share Unit which has been redeemed in accordance with the
Plan.

	3.7 	
      Reporting of Deferred Share
Units

Statements of the Share Unit Accounts will be made available to
Participants at least annually. 

	3.8 	
      Vesting Date

Each Deferred Share Unit shall vest (become a “Vested
Deferred Share Unit”) on the Vesting Date, conditional on the satisfaction
of any additional vesting conditions established by the Committee from time to
time. Dividend Deferred Share Units shall vest at the same time and in the same
proportion as the associated Deferred Share Units. Notwithstanding any other
provision of the Plan, each Deferred Share Unit received pursuant to an
election to defer retainer compensation under Section 3.2, shall be a Vested
Deferred Share Unit on the Date of Grant. 

- 7 - 

	3.9 	
      Ceasing to be an Eligible
Person

If a Participant ceases to be an Eligible Person, except to the
extent specifically provided to the contrary in the Award Agreement, all the
Participant’s Deferred Share Units and related Dividend Deferred Share Units
shall vest immediately prior to the Participant’s Termination Date. 

	Section 4. 	General 

	4.1 	
      Capital Adjustments

In the event of any stock dividend, stock split, combination or
exchange of shares, merger, consolidation, spin-off or other distribution (other
than normal cash dividends) of the Corporation’s assets to shareholders, or any
other change in the capital of the Corporation affecting Common Shares, the
Committee will make such proportionate adjustments, if any, as the Committee in
its discretion may deem appropriate to reflect such change (for the purpose of
preserving the value of the Deferred Share Units), with respect to (i) the
number or kind of shares or other securities on which the Deferred Share Units
and Dividend Deferred Share Units are based; and (ii) the number of Deferred
Share Units and Dividend Deferred Share Units. 

	4.2 	
      Amendment, Suspension, or Termination of
    Plan

The Committee may amend, suspend or terminate the Plan, or any
portion thereof, at any time, subject to those provisions of applicable law
(including, without limitation, the rules, regulations and policies of the
Exchange), if any, that require the approval of shareholders or any governmental
or regulatory body.

If this Plan is terminated, the provisions of this Plan and any
administrative guidelines, and other rules adopted by the Board and in force at
the time of this Plan, will continue in effect as long as a Deferred Share Unit
or any rights pursuant thereto remain outstanding. However, notwithstanding the
termination of the Plan, the Board may make any amendments to the Plan or the
Deferred Share Units it would be entitled to make if the Plan were still in
effect. 

The Board may amend or modify any outstanding Deferred Share
Unit in any manner to the extent that the Board would have had the authority to
initially grant the award as so modified or amended; provided that, where such
amendment or modification is materially adverse to the holder, the consent of
the holder is required to effect such amendment or modification. 

	4.3 	
      Non-Exclusivity

Nothing contained herein will prevent the Board from adopting
other or additional compensation arrangements for the benefit of any
Participant, subject to any required regulatory or shareholder approval. 

- 8 - 

	4.4 	
      Unfunded Plan

To the extent any individual holds any rights under the Plan,
such rights (unless otherwise determined by the Committee) shall be no greater
than the rights of an unsecured general creditor of the Corporation. 

	4.5 	
      Successors and Assigns

The Plan shall be binding on all successors and assigns of the
Corporation and each Participant, including without limitation, the legal
representative of a Participant, or any receiver or trustee in bankruptcy or
representative of the creditors of the Corporation or a Participant. 

	4.6 	
      Transferability of Awards

Rights respecting Deferred Share Units and Dividend Deferred
Share Units shall not be transferable or assignable other than by will or the
laws of descent and distribution. 

	4.7 	
      No Special Rights

Nothing contained in the Plan or in any Deferred Share Unit or
Dividend Deferred Share Unit will confer upon any Participant any right to be
nominated as a Director of the Corporation or interfere in any way with the
right of the Corporation at any time to accept the resignation of the
Participant or not nominate the Participant for election as a Director of the
Corporation. 

Deferred Share Units and Dividend Deferred Share Units shall
not be considered Common Shares nor shall they entitle any Participant to
exercise voting rights or any other rights attaching to the ownership of Common
Shares, nor shall any Participant be considered the owner of Common Shares by
virtue of his ownership of Deferred Share Units or Dividend Deferred Share
Units.

	4.8 	
      Tax Consequences

It is the responsibility of the Participant to complete and
file any tax returns which may be required under Canadian, U.S. or other
applicable jurisdiction’s tax laws within the periods specified in those laws as
a result of the Participant’s participation in the Plan. No Corporation shall be
held responsible for any tax consequences to a Participant as a result of the
Participant’s participation in the Plan. 

	4.9 	
      No Liability

The Corporation shall not be liable to any Participant for any
loss resulting from a decline in the market value of any Common Shares. 

SCHEDULE A 

INTELGENX TECHNOLOGIES CORP. DEFERRED SHARE UNIT PLAN

AWARD AGREEMENT FOR DEFERRED SHARE UNITS 

[Name of Director] (the
“Participant”) 

Pursuant to the IntelGenx Technologies Corp. Deferred Share
Unit Plan effective February 5, 2018, (the “Plan”), and in consideration of
services provided to the Corporation by the Participant IntelGenx Technologies
Corp. hereby grants to the Participant ______ Deferred Share Units under
the Plan. 

All capitalized terms not defined in this Award Agreement have
the meaning set out in the Plan. No cash or other compensation shall at any time
be paid in respect of any Share Units or Dividend Deferred Share Units which
have been forfeited or terminated under the Plan or on account of damages
relating to any Deferred Share Units or Dividend Deferred Share Units which have
been forfeited or terminated under the Plan. 

The Vesting Date for this award is the Grant Date. The Expiry
Date of the award is December 31 of the year following the year in which the
Participant resigns or is not re-elected as a Director of the Corporation and
also has ceased to hold any other position with the Corporation.

Subject to any provisions to the contrary in an Election
Notice, IntelGenx Technologies Corp. and the Participant understand and agree
that the granting and redemption of these Deferred Share Units and any related
Dividend Deferred Share Units are subject to the terms and conditions of the
Plan, a copy of which has been provided to the Participant, all of which are
incorporated into and form a part of this Award Agreement. 

DATED **** ____, 2018. 

	 	INTELGENX TECHNOLOGIES
      CORP. 
	 	 
	 	Per: 	 

I agree to the terms and conditions set out herein. 

	 	 	 
	 	Name: 

-10- 

SCHEDULE B 

INTELGENX TECHNOLOGIES CORP. DEFERRED SHARE UNIT PLAN

ELECTION NOTICE FOR DEFERRED SHARE UNITS 

To: IntelGenx Technologies Corp. 

Pursuant to the IntelGenx Technologies Corp. Deferred Share
Unit Plan effective February 5, 2018 (the “Plan”), the undersigned hereby elects
to receive

	 	o 	______________ %; 
	 	o 	$ _____________ ; or 
	 	o 	All of the Participant’s retainer excess of $
      ___________ 

of the undersigned’s cash director retainer in respect of the
year ending December 31, 2018, in the form of Deferred Share Units under the
Plan. This election is irrevocable for such year’s retainer. 

Notwithstanding any other provision of the Plan or the Award
Agreement, the Deferred Share Units awarded pursuant to this Election Notice
will vest immediately.

All capitalized terms not defined in this Election Notice have
the meaning set out in the Plan. No cash or other compensation shall at any time
be paid in respect of any Deferred Share Units or Dividend Deferred Share Units
which have been forfeited or terminated under the Plan or on account of damages
relating to any Deferred Share Units or Dividend Deferred Share Units which have
been forfeited or terminated under the Plan. 

Subject to any provisions to the contrary in this Election
Notice, IntelGenx Technologies Corp. and the Participant understand and agree
that the granting and redemption of these Deferred Share Units are subject to
the terms and conditions of the Plan, a copy of which has been provided to the
Participant, all of which are incorporated into and form a part of this Election
Notice. 

	DATED	 	 	 	 
		 	 	Name:

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