Document:

altair_10k-ex1034.htm

     

    Exhibit
10.34

     

    
      

      EMPLOYMENT
AGREEMENT

      (Level
12 Officer)

      

      THIS EMPLOYMENT AGREEMENT (this
“Agreement”) is entered into as of  March 10, 2008, by and among
Altairnano, Inc., a Nevada corporation (the “Company”), Altair Nanotechnologies
Inc., a Canadian corporation (“Parent”; together with the Company and all direct
or indirect majority-owned subsidiaries of the Parent, the “Consolidated
Companies”; each, a “Consolidated Company”), and Stephen Balogh, an individual
(“Employee”).

      

      RECITALS

      

      A.           The
Company is a wholly-owned indirect subsidiary of Parent and holds a substantial
portion of the operating assets of the Consolidated Companies.

      

      B.           Parent
and the Company desire to retain Employee as an employee of a Consolidated
Company subject to the terms and conditions of this Agreement.

      

      C.           Employee
desires to be retained as an employee of a Consolidated Company subject to the
terms and conditions of this Agreement.

      

      NOW, THEREFORE, in consideration of
this Agreement and of the covenants and conditions contained in this Agreement,
the parties hereto agree as follows:

      

      1.                Employment; Location.
The Company hereby employs Employee during the Term, and Employee hereby accepts
such employment.  The initial “Place of Employment” for Employee shall
be in Washoe County in the State of Nevada.  If the Company requests
that Employee relocate and Employee agrees to such request, the relocated place
of employment shall thereafter be the “Place of Employment.”

      

      2.                Term.  The
term of this Agreement (the “Term”) shall commence on the date first set forth
above (the “Effective Date”). The Term shall terminate upon the earlier to occur
of (i) the Expiration Date, and (ii) the termination of Employee’s employment
with all of the Consolidated Companies.  The initial Expiration Date
shall be the two-year anniversary of the Effective Date.  Unless the
Company or Employee provides the other with at least ninety (90) days advance
written notice prior to the initial Expiration Date (and each Expiration Date
thereafter) of its intention not to renew this term of Agreement following the
then-current Expiration Date, the Expiration Date shall automatically be changed
to the two-year anniversary of the then-current Expiration Date. Notwithstanding
anything in this Agreement to the contrary, Sections 7 and 8 shall survive
termination of this Agreement and expiration of the Term for the time periods
set forth therein, and this sentence and all provisions related to the
interpretation or enforcement of, and disputes under, this Agreement shall
survive until the expiration of the last applicable statute of
limitations.

      

      3.                Duties.  Employee’s
title shall be Vice President Human Resources.  Employee's duties
shall include such duties as are specifically assigned or delegated to Employee
by the Board of Directors of any Consolidated Company (any such Board of
Directors, the “Board”) and such other duties as are typically performed by an
employee with the same position as Employee.  Employee acknowledges
that, subject to Section 6.3(c), the Board may change, increase or decrease
Employee’s title, position and/or duties from time to time its discretion and
may appoint Employee as an employee of another Consolidated Company, which
employment is governed by this Agreement.  Employee shall diligently
execute his or her duties and shall devote his or her full time, skills and
efforts to such duties during ordinary working hours. Employee
shall faithfully adhere to, execute and fulfill all lawful policies established
from time to time by the Consolidated Companies.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.                Compensation and
Benefits.  The Company shall pay Employee, and Employee accepts
as full compensation for all services to be rendered to all Consolidated
Companies, the following compensation and benefits:

      

      4.1           Base
Salary.  During the Term, the Company shall pay Employee an
annual base salary per year in an amount not less than
$193,800.  Such annual base salary shall be payable in accordance with
the Company's customary pay schedule.  During the Term, the base
salary of Employee shall not be reduced below the minimum required by this
Section.

      

      4.2           Stock
Options.   During the period of Employee’s employment with
a Consolidated Company, Parent has granted, and in the future may from time to
time grant, to Employee options to purchase common shares of Parent and/or issue
to Employee common shares that are subject to rights of forfeiture or repurchase
under certain terms and conditions (such options or shares, “Equity
Awards”).  Parent agrees that agreements governing any past Equity
Awards shall be amended to provide that all otherwise
unvested Equity Awards shall, unless otherwise requested by Employee in writing,
immediately vest as of the effective date of a Change of Control
Event.  A “Change of Control Event” means (a) any capital
reorganization, reclassification of the capital stock of Parent, consolidation
or merger of Parent with another corporation in which Parent is not the survivor
(other than a transaction effective solely for the purpose of changing the
jurisdiction of incorporation of Parent), (b) the sale, transfer or other
disposition of all or substantially all of  the Consolidated
Companies’ assets to another entity, (c) the acquisition by a single person (or
two or more persons acting as a group, as a group is defined for purposes of
Section 13(d)(3) under the Securities Exchange Act of 1934, as amended) of more
than 40% of the outstanding common shares of Parent.

      

      4.3           Bonus.  Employee
shall be eligible to receive an annual performance bonus conditioned upon the
achievement of performance measures established by the Board after consultation
with Employee.  The potential amount of the performance bonus for each
fiscal year if all performance measures are met, shall be at least up to sixty
percent (60%) of Employee’s base salary paid for the calendar year to which such
bonus relates.  Employee and the Board shall, prior to the end of the
first month of each calendar year, negotiate in good faith with the objective of
agreeing upon performance objectives and related bonus amounts for the upcoming
fiscal year.  If Employee and the Board are not able to reach a mutual
agreement as to performance objectives, the objectives and amount of any bonus
shall be in the discretion of the Board.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      4.4           Additional
Benefits.  Employee shall be eligible to participate in, and be
subject to, the Consolidated Companies’ employee benefit plans for, and policies
governing, employees, if and when any such plans and policies may be adopted,
including, without limitation, bonus plans, pension or profit sharing plans,
incentive stock plans, and those plans and policies covering life, disability,
health, and dental insurance in accordance with the rules established in the
discretion of the Board for individual participation in any such plans and
policies as may be in effect from time to time.

      

      4.5           Vacation, Sick Leave, and
Holidays.  Beginning on the date hereof, Employee shall be
entitled to vacation, sick leave and holidays at full pay in accordance with the
Consolidated Companies’ policies.

      

      4.6           Deductions.  The
Company shall have the right to deduct from the compensation due to Employee
hereunder and all sums required for social security and withholding taxes and
for any other federal, state or local tax or charge which may be hereafter
enacted or required by law as a charge on any cash or non-cash compensation of
Employee.

      

      5.               Business
Expenses.  The Company shall promptly reimburse Employee for
all reasonable out-of-pocket entertainment and business expenses Employee incurs
in fulfilling Employee’s duties hereunder subject to, and in accordance with,
the general reimbursement policy of the Consolidated Companies in effect from
time to time.

      

      6.               Termination of Employee's
Employment.

      

      6.1           Termination of Employment by
the Company for Cause.  Employee's employment may be terminated
by the Consolidated Companies at any time for “Cause.”  A
determination of whether Employee’s actions justify termination for Cause and
the date on which such termination is effective shall be made in good faith by
the Board of Parent.  A termination of Employee's employment pursuant
to this Section 6.1 shall be effective as of the effective date of the notice by
the Board of Parent to Employee that it has made the required determination, or
as of such subsequent date, if any, as is specified in such
notice.  For purposes of this Agreement, “Cause” shall include (a)
Employee’s material breach of this Agreement, which breach cannot be cured or,
if capable of being cured, is not cured within fifteen (15) days after receipt
of written notice of the need to cure, (b) any act of theft, embezzlement,
conversion or other taking or misuse of the property or opportunities of and
Consolidated Company, (c) any fraudulent or criminal activities, (d) any grossly
negligent or unethical activity, (e) any activity that causes substantial harm
to any Consolidated Companies, its reputation, or to its officers, directors or
employees  (including, without limitation, the illegal possession or
consumption of drugs for which Employee does not have a valid prescription on
property controlled by any Consolidated Company or in the course of performing
services for any Consolidated Company), or (f) habitual neglect of or deliberate
or intentional refusal to perform mutually agreed upon Employee’s duties and
obligations under this Agreement which breach cannot be cured or, if
capable of being cured, is not cured within fifteen (15) days after receipt of
written notice of the need to cure.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      6.2           Termination by the Company
Without Cause.  Employee’s employment with each Consolidated
Company is “at will,” any Employee’s employment with any and all Consolidated
Companies is terminable at any time without Cause or any reason of any
kind.  A termination of Employee's employment pursuant to this Section
6.2 shall be effective as of the date specified in the notice of
termination.

      

      6.3           Termination By Employee For
Good Reason.  Employee may terminate his employment with any
and all Consolidated Companies at any time for Good Reason (as defined below),
provided Employee has delivered a written notice to the Board of Parent that
briefly describes the facts underlying Employee's belief that Good Reason exists
and the Company has failed to cure such situation within 15 days of its receipt
of such notice.

      

      For purposes of this Agreement, “Good
Reason” shall mean and consist of: (a) a material breach by the Company of any
of its obligations, duties, agreements, representations or warranties under this
Agreement; (b) without Employee's prior written consent, the Consolidated
Company requires the Employee to relocate Employee's place of employment to any
place other than the Place of Employment as a condition to continued employment
or maintenance of the same or a comparable position with the Consolidated
Companies (provided that reasonable business travel shall not constitute a
relocation of Employee’s place of employment and required relocation shall
constitute Good Reason only following the Consolidated Companies’ notification
of Employee of its requirement that Employee relocate and prior to Employee’s
agreement to relocate his or her place of employment), or (c) during the period
ninety (90) days prior to and one year after a Change of Control Event, a
material adverse change in Employee’s title, position and/or duties within the
Consolidated Companies as a whole.

      

      6.4           Termination by Employee
Without Good Reason.  Upon not less than 15 day's prior written
notice (which notice shall specify the effective date of the termination),
Employee may terminate his employment with any and all Consolidated Companies by
such notice without Good Reason or any reason of any kind.

      

      6.5           Termination of Employment by
Death.  If Employee dies during the term of employment,
Employee's employment with all Consolidated Companies shall be terminated
effective as of the date of Employee’s death.

      

      6.6           Disability.  The
Company or Employee may terminate Employee's employment with all Consolidated
Companies if Employee shall become unable to fulfill his duties under this
Agreement, as measured by the Consolidated Companies’ usual business
activities,  for the eligibility period set forth in the long-term
disability policy under which Employee is potentially eligible to receive
disability benefits (the “Eligibility Period”) by reason of any medically
determinable physical and/or mental disability determined in accordance with the
procedure in this Section 6.6.  If in the opinion of the Company or
Employee, Employee is disabled, then the following shall occur:

      

      (a)           the
Company or Employee shall promptly so notify (by dated written notice) the
insurance company or carrier that, at that time, insures the employees of the
Company against long-term disability (the “Company’s Insurance Carrier”) and
request a determination as to whether Employee is disabled pursuant to the terms
of the Company's long-term disability plan or policy; and

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (b)           the
matter of Employee's disability shall be resolved, and Employee and the Company
shall abide by the decision of, the Company’s Insurance Carrier.

      

      A
termination of Employee's employment pursuant to this Section 6.6 shall be
effective at the expiration of the Eligibility Period, as determined in
accordance with this Section 6.6.  If Employee is not covered by a
Company-sponsored long-term disability policy on the date that the Company
and/or Employee believe that Employee may have a medically determinable physical
and/or mental disability, the Board of Parent shall make the determination of
whether Employee has a medically determinable physical and/or mental disability
using the definition of disability, including applicable court interpretations,
used for purposes of the Americans With Disabilities Act of 1990, as amended,
and the “Eligibility Period” shall be 90 days from the date as of which it is
determined that the Employee commenced having a medically determinable
disability.

      

      7.               Effect of Termination of
Employee’s Employment.

      

      7.1           Provisions Applicable to All
Terminations. If Employee’s employment with all Consolidated Companies is
terminated at any time for any reason, (a) all cash compensation from the
Company described in this Agreement that was due through the effective date of
the termination, but unpaid, shall be computed and paid to Employee by the
Company within any payment deadline set forth in Nevada law (or is none is
applicable, within 30 days), provided that any disability payments to be made by
the Company’s Insurance Carrier shall be made when, as and if made by the
Company’s Insurance Carrier; and (b)  Employee, or his heirs, or
estate, as the case may be, shall receive all compensation and employee benefits
accrued through the effective date of the termination, and all benefits provided
through the Company's insurance plans pursuant to the terms and conditions of
such insurance plans or that the Company is required to provide by governing
law.

      

      7.2           Termination Absent a Change
of Control and Absent Cause/Good Reason.  If Employee's
employment with all of the Consolidated Companies is terminated under any
circumstances other than the circumstances described in Section 7.3 or Section
7.4 below, whether by the Consolidated Companies or Employee, Employee shall not
be entitled to any compensation in addition to that set forth in Section
7.1.

      

      7.3           Termination by Employee for
Good Reason.  If Employee's employment is terminated by
Employee for Good Reason during the Term (but not as of an Expiration Date),
then, in addition to complying with the requirements of Section 7.1, the Company
shall, subject to the terms and conditions of this Agreement and conditioned
upon the Company’s receipt of a written waiver, release and non-litigation
agreement from Employee in form and substance reasonably satisfactory to the
Consolidated Companies with respect to all liabilities of any Consolidated
Company of any kind arising prior to and in connection with such termination
(other than under Options and Section 7)(a “Release”), continue to pay, when due
in accordance with Section 4.1, to or for the benefit of Employee or, if
applicable, Employee’s heirs or estate:  (a) Employee’s base salary
through the period ending on the 12-month anniversary of the effective date of
the termination of Employee's service; and (b) Company health benefits coverage
then in effect (with Company /Employee contributions remaining the same as
during the period immediately prior to termination) through the period ending on
the 12-month anniversary of the effective date of the termination of Employee's
service.  Notwithstanding the foregoing, if (y) Employee relocated was
required to relocate from a location more than 50 miles from the Place of
Employment in order to commence employment with the Consolidated
Companies and Employee’s employment is subsequently terminated by Employee
for Good Reason on or before the two-year anniversary of the Effective Date, or
(z) Employee’ accepts a change in Employee’s place of employment (and relocates
without terminating his or her Employment for Good Reason based upon such
change) during the Term and then Employee’s employment is terminated by Employee
for Good Reason on or before the two-year anniversary of such change in
Employee’s place of employment, then in case of either (y) or (z) the period
referred to in subsection (a) above shall be 16 months.

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      7.4           Termination by Company
without Cause.  If Employee's employment is terminated by the
Company without Cause during the Term (but not as of an Expiration Date), then,
in addition to complying with the requirements of Section 7.1, the Company
shall, subject to the terms and conditions of this Agreement and conditioned
upon the Company’s receipt of a Release, continue to pay, when due in accordance
with Section 4.1, to or for the benefit of Employee or, if applicable, his heirs
or estate:  (a) Employee’s base salary through the period ending on
the 12-month anniversary of the effective date of the termination of Employee’s
services; (b) Company health benefits coverage then in effect (with Company
/Employee contributions remaining the same as during the period immediately
prior to termination) through the period ending on the 18-month anniversary of
the effective date of the termination of Employee’s services; and (iii) a bonus
equal to sixty percent (60%) of Employee’s base salary paid for the calendar
year in which termination of Employee’s services occurs, payable in one lump sum
within 30 days of the end of such year. Notwithstanding the foregoing, if
(y) Employee relocated was required to relocate from a location more than 50
miles from the Place of Employment in order to commence employment with the
Consolidated Companies and Employee’s employment is subsequently terminated
by Employee for Good Reason on or before the two-year anniversary of the
Effective Date, or (z) Employee’ accepts a change in Employee’s place of
employment (and relocates without terminating his or her Employment for Good
Reason based upon such change) during the Term and then Employee’s employment is
terminated by the Company without Cause on or before the two-year anniversary of
such change in Employee’s place of employment, then in case of either (y) or (z)
the period referred to in subsection (a) above shall be 16 months.

      

      7.5           Return of Company
Property.   Upon the termination or end of the employment
of Employee with the Consolidated Companies or at any time upon the request of
Parent, Employee shall provide to the Consolidated Companies all property
belonging to any Consolidated Company, including, but not limited to, keys, card
passes, credit cards, electronic equipment including computers and personal
digital devices, cellular telephones, Consolidated Company automobiles, and all
data and any Consolidated Company intellectual property whether located on
Consolidated Company property or otherwise.

      

      7.6           Breach of Protective
Covenants.  Notwithstanding anything in this Section 7 to the
contrary, Employee shall not be entitled to any payments or benefits under any
of Sections 7.3 or 7.4 of this Agreement with respect to any period (a) prior to
Employee’s delivery to the Company of a Release if such Release is not executed
within seven (7) days of Employee’s receipt of a form of Release, (b) during
which Employee is in breach of Section 7.5 or any portion of Section 8 of this
Agreement, (c) during which Employee is in breach of any  portion of
the Proprietary Information Agreement (any of (a), (b) or (c), a “Covenant
Breach”).  Upon the Company’s determination that a Covenant Breach has
occurred, it shall notify Employee of its belief that a Covenant Breach has
occurred and may withhold, without penalty or interest, any payments or benefits
otherwise due to Employee pursuant to any of Section 7.3 or 7.4 until the
question of whether a Covenant Breach has occurred is definitely resolved
without right to appeal or similar recourse (and if it is determined that the
Company withheld the payments and benefits in error, the Company’s sole
obligation shall be prompt payment of all withheld payments and the cash value
to the Company of any withheld benefits).

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      8.                Covenant Not to
Compete

      

      8.1           Covenant.  Employee
hereby agrees that, while Employee is employed by any Consolidated Company and
during a period of 12 months following the
termination of Employee’s employment with all Consolidated Companies, Employee
will not directly or indirectly compete (as defined in Section 8.2 below) with
any the Consolidated Company or any affiliates anywhere in the United
States.  It is the intention of Parent, the Company and Employee that
this provision be interpreted to only prevent actual competitive harm to any
Consolidated Company and not otherwise hinder or restrict Employee in his
efforts to find continued employment in Employee’s field of training and
expertise.

      

      8.2           Direct and Indirect
Competition.   As used herein, the phrase “directly or
indirectly compete” shall include owning, managing, operating or controlling, or
participating in the ownership, management, operation or control of, or being
connected with or having any interest in, as a stockholder, director, officer,
employee, agent, consultant, assistant, advisor, sole proprietor, partner or
otherwise, any Competing Business (as defined below).  For purposes of
this Agreement, a “Competing Business” shall be any business or enterprise other
than any Consolidated Company that is engaged in the development, marketing,
provision or sale of any technology, process, product or service that is being
developed, marketed, provided or sold by any Consolidated Company during the
period Employee is employed with any Consolidated Company.  This
prohibition, however, shall not apply to ownership of less than five percent
(5%) of the voting stock in companies whose stock is traded on a national
securities exchange or in the over-the-counter market.

      

      8.3           Nonsolicitation.  Employee
hereby agrees that, while he is employed by any Consolidated Company pursuant to
this Agreement, and, during a period of 12 months following the
termination of Employee’s employment with all Consolidated Companies, Employee
will not, directly or indirectly, through an affiliate or otherwise, for his
account or the account of any other person, (a) solicit business for a Competing
Business from any person or entity that at the time of termination is or was a
customer of any Consolidated Company, whether or not Employee had personal
contact with such person during and by reason of employment with a Consolidated
Company; (ii) in any manner induce or attempt to induce any employee of a
Consolidated Company to terminate his or her employment with a Consolidated
Company; or (iii) materially and adversely interfere with the relationship
between a Consolidated Company and any employee, contractor, supplier, customer
or shareholder of a Consolidated Company.

      

      8.4           Enforceability.  If
any of the provisions of this Section 8 is held unenforceable, the remaining
provisions shall nevertheless remain enforceable, and the court making such
determination shall modify, among other things, the scope, duration, or
geographic area of this Section to preserve the enforceability hereof to the
maximum extent then permitted by law.  In addition, the enforceability
of this Section is also subject to the injunctive and other equitable powers of
a court as described in Section 11 below.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      8.5           Jurisdiction.  For
the sole purpose of enforcement of the Consolidated Companies’ rights under this
Section 8, Parent, the Company and Employee intend to and hereby confer
jurisdiction to enforce the restrictions set forth in this Section 8 (the
"Restrictions") upon the courts of any jurisdiction within the geographical
scope of the Restrictions.  If the courts of any one or more of such
jurisdictions hold the Restrictions unenforceable by reason of the breadth of
such scope or otherwise, it is the intention of Parent, the Company and Employee
that such determination not bar or in any way affect any Consolidated Company's
rights to the relief provided above in the courts of any other jurisdiction
within the geographical scope of the Restrictions, as to breaches of such
covenants in such other respective jurisdictions, such covenants as they relate
to each jurisdiction being, for this purpose, severable into diverse and
independent covenants.  In the event of any litigation between the
parties under this Section 8, the court shall award reasonable attorneys fees to
the prevailing party.

      

      9.                Confidential Information,
Invention Assignment, Etc.  Employee represents and covenants
that Employee has signed and delivered to Parent (or will sign and deliver upon
request) an Employment, Confidential Information, Invention Assignment,
Nonsolicitation and Arbitration Agreement (the “Proprietary Information
Agreement”) in the form set forth in the Consolidated Companies’ Policy
Manual.  Employee’s execution of such a Proprietary Information
Agreement is a condition precedent to Employee’s eligibility for any rights and
benefits under this Agreement.  The Proprietary Information Agreement
and this Agreement shall be interpreted, to the extent possible, as being
mutually consistent with each other, supplementary and both fully enforceable;
provided, however, in the event of an irreconcilable conflict between specific
provisions of each of the two agreements, the specific provisions of this
Agreement shall prevail.

      

      10.              No
Conflicts.   Employee hereby represents and covenants that
Employee’s performance of all the terms of this Agreement and his work as an
employee of a Consolidated Company does not and will not breach any oral or
written agreement to which Employee is a party or by which Employee is
bound.

      

      11.              Equitable
Remedies.   Employee acknowledges and agrees that the
breach or threatened breach by him of certain provisions of this Agreement,
including without limitation Sections 8 above, would cause irreparable harm to
the Consolidated Company for which damages at law would be an inadequate
remedy.  Accordingly, Employee hereby agrees that in any such instance
Parent or the Company shall be entitled to seek (without prior mediation or
arbitration) injunctive or other equitable relief in any state or federal court
within or without the State of Nevada in addition to any other remedy to which
it may be entitled.  Employee hereby submits to the jurisdiction of
any courts within the City of Reno in the State of Nevada and agrees not to
assert such venue is inconvenient.

      

      12.              Assignment. This
Agreement is for the unique personal services of Employee and is not assignable
or delegable in whole or in part by Employee without the consent of the Board of
Parent.  This Agreement may not be assigned or delegated in whole or
in part by the Parent or the Company without the written consent of Employee;
provided, however, this Agreement may be assigned by the Parent or the Company
without Employee’s prior written consent if such assignment is made to an entity
that is a Consolidated Company or is acquiring substantially all of the business
or assets of any Consolidated Company, whether by merger, asset sale or
otherwise.

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      13.              Waiver or
Modification. Any waiver, modification, or amendment of any provision of
this Agreement shall be effective only if in writing in a document that
specifically refers to this Agreement and such document is signed by the parties
hereto.

      

      14.               Entire Agreement.
This Agreement, together with the Proprietary Information Agreement and other
agreements required under the Consolidated Companies’ policies, constitute the
full and complete understanding and agreement of any of the Consolidated
Companies and Employee with respect to the subject matter covered herein and
supersedes all prior oral or written understandings and agreements with respect
thereto (including any offer letter associated with the commencement of your
employment).

      

      15.              Severability. If any
provision of this Agreement is found to be unenforceable by a court of competent
jurisdiction, the remaining provisions shall nevertheless remain in full force
and effect.

      

      16.              Attorneys’
Fees.  Should any Company, Parent or Employee default in any of
the covenants contained in this Agreement, or in the event a dispute shall arise
as to the meaning of any term of this Agreement, the defaulting or nonprevailing
party shall pay all costs and expenses, including reasonable attorneys’ fees,
that may arise or accrue from enforcing this Agreement, securing an
interpretation of any provision of this Agreement, or in pursuing any remedy
provided by applicable law whether such remedy is pursued or interpretation is
sought by the filing of a lawsuit, an appeal, or otherwise.

      

      17.              Confidentiality.  Each
of the parties acknowledges that the common shares of  Parent are
registered under the Securities Exchange Act of 1934, as amended, and a result,
Parent may be required to, and hereby has authorization to, file this Agreement
or any amendment hereto with the Securities and Exchange Commission without
requesting confidential treatment for any portion hereof.

      

      18.              Notices.  Any
notice required hereunder to be given by either party shall be in writing and
shall be delivered personally or sent by certified or registered mail, postage
prepaid, or by private courier, with written verification of delivery, or by
facsimile or other electronic transmission to the other party to the address or
facsimile number set forth below or to such other address or facsimile number as
either party may designate from time to time according to this
provision.  A notice delivered personally or by facsimile or
electronic transmission shall be effective upon receipt.  A notice
delivered by mail or by private courier shall be effective on the third day
after the day of mailing:

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
        	
              	
                (a)  
      To Employee at: 

              	
                20162
      Bordeaux Drive

                Reno,
      NV 89511

                Fax
      775-849-9077

              

      

      

      
        	
              	
                (b) 
      To Parent/Company at: 

              	
                Altair
      Nanotechnologies Inc.

                204
      Edison Way

                Reno,
      Nevada  89502

                Facsimile
      No: (775) 856-1619

              

      

      
      

      19.              Disputes; Governing Law;
Arbitration.

      

      (a)           Except
as provided in Section 11 and Section 8.5, any dispute concerning the
interpretation or construction of this Agreement or his employment or service
with Company, shall be resolved by confidential mediation or binding arbitration
in Reno, Nevada.  The parties shall first attempt mediation with a
neutral mediator agreed upon by the parties.  If mediation is
unsuccessful or if the parties are unable to agree upon a mediator within thirty
(30) days of a request for mediation by any party, the dispute shall be
submitted to arbitration pursuant to the procedures of the American Arbitration
Association (“AAA”) or other procedures agreed to by the parties.  All
arbitration proceedings shall be conducted by a neutral arbitrator mutually
agreed upon by the parties from a list provided by AAA.  The decision
of the arbitrator shall be final and binding on all parties.  The
costs of mediation and arbitration shall be borne equally by the
parties.

      

      (b)           This
Agreement shall be construed in accordance with and governed by the statutes and
common law of the State of Nevada (other than any provisions that would cause
the provisions of any other laws to apply).  To the extent this
Agreement expressly permits any dispute to be resolved other than through
arbitration or mediation, except as set forth in Section 8.5, the exclusive
venue for any such action shall be the state and federal courts located in Reno,
Nevada, and the parties each hereby submit to the jurisdiction of such courts
for purposes of this Agreement.

      

      20.              Counterparts;
Facsimile.  This Agreement may be executed in multiple
counterparts, all of which taken together shall form a single
Agreement.  A facsimile copy of this Agreement or any counterpart
thereto shall be valid as an original.

      

      [intentionally
left blank; signature page follows]

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      IN WITNESS WHEREOF, Employee has
signed this Employment Agreement (Level 12 Officer) personally and the Company
and Parent have caused this Agreement to be executed by their duly authorized
representatives.

      

      

      COMPANY:

      

      

      ALTAIRNANO, INC.

      a Nevada corporation

      

      

      By:  ___________________________________

      

      Name:  _________________________________

      

      Title:  __________________________________

      

      

      

      PARENT:

      

      ALTAIR NANOTECHNOLOGIES
INC.

      a Canadian corporation

      

      

      By:  ___________________________________

      

      Name:  _________________________________

      

      Title:  __________________________________

      

      

      

      

      EMPLOYEE:

      

      

      _______________________________________

      Stephen Balogh, an
individual

      

      

      

      11Unassociated Document

     

    
      Exhibit
10.19

      

      EMPLOYMENT
AGREEMENT

       

      THIS
EMPLOYMENT AGREEMENT (the “Agreement”), dated January 28, 2005, shall be
effective upon the closing of the acquisition transaction between Acacia and
Global Patent Holdings LLC, and is entered into by and between Acacia
Technologies Services Corporation, a Delaware corporation ("Acacia”), and
Dooyong Lee, (“You”), on the following terms and conditions.

       

      BACKGROUND

       

      Acacia
and You desire to enter into this Agreement, subject to the terms and conditions
as set forth below.

       

      NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants set forth
herein, Acacia and You, intending to be legally bound, hereby agree as
follows:

       

      1.      Position and Responsibilities.
 As of the effective date of the Agreement, You shall be employed as
Executive Vice President of Business Development of Acacia, working full time
from Acacia’s Newport Beach offices within seven (7) months of your employment.
For the earlier of (i) the initial period of Your employment during which you
have not relocated to Southern California or (ii) the first seven (7) months
from the effective date of this Agreement, You shall be available to work from
Acacia’s Newport Beach offices for five (5) business days per month. You agree
that at all times during your employment hereunder, You shall be subject to and
comply with Acacia's personnel policies including Acacia's Insider Trading
Policy (attached hereto as Exhibit A), Sexual Harassment Policy (attached hereto
as Exhibit B) and Employee Handbook, all as may be modified from time to
time.  You shall devote your full working time and efforts to Acacia's
business to the exclusion of all other employment or active participation in
other business interests, unless otherwise consented to in writing by
Acacia.

       

      2.      (a.) Employment.  Your
employment will be at-will, and may be terminated by Acacia or You upon thirty
(30) days notice to the other party for any reason.  This at-will
arrangement can not be changed during your employment, unless agreed to in
writing by an authorized officer of Acacia.

       

      2.    (b).  Severance/Payment to
Acacia.   Notwithstanding Your at-will employment, in the
event that Acacia terminates Your employment other than for Cause (as defined
below), (i) prior to You relocating to Southern California, Acacia shall pay You
a lump sum amount equal to three (3) months base salary; or (ii) within one (1)
year of You relocating to Southern California, Acacia shall pay You a lump sum
amount equal to six (6) months base salary. Any severance that may be due as a
result of Acacia terminating your employment after one (1) year following You
relocating to Southern California shall be covered by Acacia’s then existing
Executive Severance Policy.  In the event that You terminate Your
employment with Acacia within one (1) year of You relocating to Southern
California (other than as a result of Acacia’s breach of this Agreement, after
providing Acacia with notice and a reasonable opportunity to cure such breach),
You shall pay Acacia a lump sum payment equal to six (6) months base salary, in
consideration for Acacia reimbursing You for relocation expenses.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      3.      Compensation.  For all
services rendered by You pursuant to this Agreement, Acacia shall pay You,
subject to your adherence to all of the terms of this Agreement, and You shall
accept as full compensation hereunder, the following:

       

      3.1     
Salary.   An
annual salary (the “Salary”) of Two Hundred Seventy Thousand Dollars ($
270,000). The Salary shall be subject to all appropriate federal and state
withholding taxes and shall be payable bi-weekly, in accordance with the normal
payroll procedures of Acacia. The Salary will be subject to annual review and
increase at Acacia’s sole discretion.

       

      3.2      Options.  The Board
of Directors of Acacia Research Corporation will grant You stock options to
purchase Two Hundred and Twenty Five Thousand (225,000) shares of Acacia
Research - Acacia Technologies Group common stock (Nasdaq: ACTG) pursuant to and
subject to the terms of Acacia's existing stock option plan.  Such
options have a ten (10) year term and will vest over a thirty-six (36) month
period, with Seventy Five  Thousand (75,000) shares vesting twelve
months after your start date, and with the remainder vesting monthly over the
subsequent twenty four (24) month period.  The exercise price of the
options shall be the closing price on the later of (i) your first day of
employment; and (ii) the date of the Board approval of such grant. Additional
annual option grants are subject to the recommendation of Acacia’s CEO and are
at the discretion of the Board of Directors.

      

       

      3.3      Home Sale/Purchase
Reimbursement.    Acacia shall reimburse You for the
taxes (including state and federal capital gains taxes and city/county
tax/stamps) and closing costs (including sales commissions) actually incurred
and paid by You in connection with the sale of Your New Jersey residence in
connection with your relocation to Southern California.  Acacia shall
reimburse You for reasonable incidental costs in connection with purchasing a
residence in Southern California including any applicable title insurance,
survey, and mortgage application charges.  Such reimbursements shall
occur within 30 days of You submitting appropriate documentation evidencing the
payment of such reimbursable expenses.  Such reimbursements will be
grossed up to cover any applicable federal and state taxes.

       

      3.4       Moving
Expenses.  Acacia shall reimburse You for reasonable moving,
packing and storage (if any) expenses for the contents of a single dwelling and
two (2) automobiles, and shall reimburse You for travel and lodging expenses for
You and Your family on the day of the relocation. Acacia shall also reimburse
You for all reasonable travel, lodging, and meal expenses incurred by You and
one other person for one trip to the Newport Beach area for the purpose of
investigating relocation options.  Such reimbursements will be grossed
up to cover any applicable federal and state taxes.  All expenses
shall be supported by appropriate documentation and reimbursed in accordance
with Acacia’s policies and procedures.

       

      3.5      
Relocation
Bonus.  A one time, relocation bonus equal to Fifteen Thousand
Dollars ($15,000), payable at the time of relocation, to cover moving expenses
and any and all other costs and expenses of relocation, other than as expressly
set forth herein. The relocation bonus shall be subject to all appropriate
federal and state withholding taxes in accordance with the normal payroll
procedures of Acacia.

      

      3.6        Travel
Expenses.  Acacia shall reimburse You for all reasonable
travel, lodging, and meal expenses incurred on behalf of Acacia, including
travel to Acacia’s Newport Beach offices prior to Your
relocation.  All expenses shall be supported by appropriate
documentation and reimbursed in accordance with Acacia’s policies and
procedures.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      3.7        Discretionary Annual
Bonus.   At the end of each calendar year, You shall be
eligible for a discretionary bonus equal in value of up to Fifty Thousand
Dollars ($50,000).  Such bonus shall be at the sole discretion of the
Compensation Committee of Acacia Research Corporation, and shall be based upon
personal performance, overall company performance, and any other factors that
the Compensation Committee elects to consider.  This bonus is solely
within the discretion of the Compensation Committee, which may elect to pay You
no bonus in any given year or years.  The Compensation Committee may
increase the amount of the discretionary bonus, but has no obligation to do so.
In order to be eligible for the discretionary annual bonus, this Agreement must
be in full force and effect at the time of the payment of such bonus. The
discretionary annual bonus shall be subject to all appropriate federal and state
withholding taxes in accordance with the normal payroll procedures of
Acacia.

       

      3.8        Benefits and Perquisites.
Acacia shall make benefits available to You, including, but not limited to,
vacation and holidays, sick leave, health insurance, and the like, to the extent
and on the terms made available to other similarly situated employees of Acacia.
This provision does not alter Acacia's right to modify or eliminate any employee
benefit and does not guarantee the continuation of any kind or level of
benefits.  All such benefits shall cease upon the termination of your
employment under this Agreement. Acacia shall reimburse You for any reasonable
work related expenses, in accordance with Acacia’s reimbursement policies and
procedures.

       

      4.           Termination. The
employment relationship between You and Acacia created hereunder shall terminate
upon the occurrence of any one of the following events:

       

      4.1        Death or Permanent
Disability.   Acacia may terminate this Agreement and any
further obligations to You if You die or, due to physical or mental disability,
You are either (a) unable to reasonably and effectively carry out your duties
with reasonable accommodations by Acacia or (b) unable to reasonably and
effectively carry out your duties because any reasonable accommodation which may
be required would cause Acacia undue hardship.  In the event of a
disagreement concerning your perceived disability, You shall submit to such
examinations as are deemed appropriate by three practicing physicians
specializing in the area of your disability, one selected by You, one selected
by Acacia, and one selected by both such physicians.  The majority
decision of such three physicians shall be final and binding on the
parties.

       

      4.2        Termination for Cause. 
Acacia may immediately terminate this Agreement and any further obligations to
You upon the occurrence of any of the following:

       

      (a)           You
fail or refuse to perform your duties hereunder, or breach any of your
obligations under this Agreement other than due to Death or Permanent
Disability;

       

      (b)           You
commit any act (including a misdeameanor offense) which is likely to have the
effect of injuring the reputation, business or business relationship of
Acacia;

       

      (c)           
You are charged with convicted of or plead guilty or nolo contendre to any felony;
or

       

      (d)           
You embezzle or misuse any of Acacia's funds or assets or commit any act of
fraud or dishonesty with respect to any aspect of Acacia's
business;

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      5.           Compensation Upon
Termination;

       

      5.1        Cause.  Upon termination
of your employment under this Agreement due to Cause, You shall be entitled only
to payment of the Salary earned by You before the effective date of termination,
and any reimbursements as provided in Sections 3.3, 3.4, 3.6 and 3.8, for
expenses incurred prior to the effective date of termination.

       

      5.2        Other Than
Cause.  Upon termination of your employment by Acacia under
this Agreement other than for Cause, or upon termination of your employment by
You as a result of Acacia’s breach of this Agreement after providing Acacia with
notice and a reasonable opportunity to cure such breach, You shall be entitled
only to (i) payment of the Salary earned by you before the effective date of
termination, as provided in Section 3 hereof; (ii) any accrued and unused
vacation pay earned as of the effective date of termination; (iii) any
reimbursements under Sections 3.3, 3.4, 3.6, and 3.8, for expenses incurred
prior to the date of termination, and any unpaid relocation bonus under Section
3.5 (if You relocated prior to the effective date of termination) and (iv) any
severance payments as provided in Section 2(b) above if such termination occurs
prior to You relocating to Southern California or within one (1) year of
relocation, or if such termination occurs after such one (1) year period, as
provided by Acacia's then current severance plan, if any. In the event that You
terminate Your employment with Acacia at any time (other than as a result of
Acacia’s breach of this Agreement, after providing Acacia with notice and a
reasonable opportunity to cure such breach), You shall be entitled only to (i)
payment of the Salary earned by You before the effective date of termination, as
provided in Section 3 hereof; (ii) any accrued and unused vacation pay earned as
of the effective date of termination; (iii) any reimbursements under Sections
3.3, 3.4, 3.6, and 3.8, for expenses incurred prior to the date of termination,
and any unpaid relocation bonus under Section 3.5 (if You relocated prior to the
effective date of termination); provided, however, that if such termination by
You occurs within one (1) year of your relocation to Southern California, in
addition to You receiving any payments set forth in (i), (ii), and (iii), You
shall also pay Acacia a lump sum payment equal to six (6) months base salary as
set forth in Section 2(b) above.

       

      5.3        Remedy.  Should
Acacia terminate your employment for Cause, and it is later determined that
Acacia did not have Cause for the termination, then Acacia’s decision to
terminate You shall be deemed to have been made without Cause and Acacia shall
pay You the compensation as set forth in this Agreement, as your sole and
exclusive remedy.

       

      6.           Confidentiality.

       

      6.1        Confidential
Information. Acacia and You recognize that You will acquire certain
confidential and proprietary information relating to Acacia's business and the
business of Acacia's affiliates. Such confidential and proprietary information
is information that derives independent economic value, actual or potential,
from not being generally known to the public or to other persons who can obtain
economic value from its disclosure or use, and is the subject of efforts that
are reasonable under the circumstances to maintain its secrecy ("Confidential
Information").  Confidential Information may include, without
limitation, the following: business plans, projections, planning and strategies,
marketing plans, materials, pricing, programs and related data, product
information, services, budgets, acquisition plans, the names or addresses of any
employees, independent contractors or customers, licensing strategy, statistical
data, financial information or arrangements, manuals, forms, techniques,
know-how, trade secrets, software, any method or procedure of Acacia's business,
whether developed by Acacia or developed, or contributed to, by You during the
course of your employment, or made available to You by Acacia or any of Acacia's
affiliates in the course of your employment, or any market development, research
or expansion projects, business systems and procedures and other confidential
business and proprietary information.  Confidential Information may be
contained in written materials, verbal communications, the unwritten knowledge
of employees, or any other tangible medium, such as tape, computer, or other
means of electronic storage of information.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      6.2        Obligation of Confidentiality.
 You acknowledge and agree that (a) all of the Confidential Information
constitutes special, unique and valuable assets of Acacia and trade secrets, the
disclosure of which would cause irreparable harm and substantial loss to Acacia
and/or its affiliates.  In view of the foregoing, You agree that at no
time will You, directly or indirectly, and whether during or after your
employment with Acacia, use, reveal, disclose or make known any Confidential
Information without specific written authorization from or written direction by
Acacia.  You further agree that, immediately upon termination or
expiration of your employment for any reason whatsoever, or at any time upon
request by Acacia, You will return to Acacia all Confidential
Information.

       

      7.            Intellectual
Property. You agree that any and all discoveries, concepts, ideas,
inventions, writings, plans, articles, devices, products, designs, treatments,
structures, processes, methods, formulae, techniques and drawings, and
improvements or modifications related to the foregoing that are in any way
related to Acacia's audio and video patent portfolio or any other intellectual
property owned by Acacia or its affiliates or subsidiaries, whether patentable,
copyrightable or not, which are made, developed, created, contributed to,
reduced to practice, or conceived by You during the term of this Agreement,
whether solely or jointly with others, in connection with your employment with
Acacia (collectively, the “Intellectual Property”) shall be and remain the
exclusive property of Acacia, and, to the extent applicable, a “work made for
hire,” and Acacia shall own all rights, title and interests thereto, including,
without limitation, all rights under copyright, patent, trademark, statutory,
common law and/or otherwise. By your execution of this Agreement, You hereby
irrevocably and unconditionally assign to Acacia all right, title and interest
in any such Intellectual Property. You further agree to take all such steps and
all further action as Acacia may reasonably request to effectuate the foregoing,
including, without limitation, the execution and delivery of such documents and
applications as Acacia may reasonably request to secure the rights to
Intellectual Property worldwide by patent, copyright or otherwise to Acacia or
its successors and assigns. You further agree promptly and fully to disclose any
Intellectual Property to the officers of Acacia and to deliver to such officers
all papers, drawings, models, data and other material (collectively, the
“Material”) relating to any Intellectual Property made, reduced to practice,
developed, created or contributed to by You and, upon termination, or expiration
of your employment with Acacia, to turn over to Acacia all such
Material.  Any intellectual property which was developed by You prior
to the date of this agreement, or which is developed by You during or after the
termination of this Agreement and is not in any way related to any of Acacia's
or any of its subsidiaries' or affiliates' intellectual property, shall be owned
by You.

       

      8.            Other Activities,
Non-Solicitation.   During the term of this Agreement, You
shall not engage in any activities that are competitive with Acacia, or any of
its affiliates or subsidiaries, or that would result in a conflict of
interest.  You are not prohibited from engaging in any other
activities.  In the event of the termination of your employment for
any reason, You, for a period of one year shall not: (a) solicit for employment
and then employ any employee of Acacia or any of its affiliates or subsidiaries
or any person who is an exclusive independent contractor involved in any of its
affiliates or subsidiaries; (b) make any derogatory public statement concerning
Acacia, or any of its affiliates or subsidiaries, or your employment, unless
previously approved by Acacia, except as may be required by law; or (c) induce,
attempt to induce or knowingly encourage any Customer of Acacia or any of its
affiliates or subsidiaries to divert any business or income from Acacia or any
of its affiliates or subsidiaries or to stop or alter the manner in which they
are then doing business with Acacia or any of its affiliates or
subsidiaries.  The term “Customer” shall mean any individual or
business firm that was or is a customer or client of, or one that was or is a
party in a investor agreement with, or whose business was actively solicited by,
Acacia or any of its affiliates or subsidiaries at any time, regardless of
whether such customer was generated, in whole or in part, by your
efforts.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      9.            Remedies. Each of the
parties to this Agreement will be entitled to enforce its rights under this
Agreement specifically, to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights existing in its
favor. The parties agree and acknowledge that money damages may not be an
adequate remedy for any breach of the provisions of this Agreement and that any
party may in its sole discretion apply to any court of law or equity of
competent jurisdiction for injunctive relief without the need for an undertaking
in order to enforce or prevent any violations of the provisions of this
Agreement.

       

      10.          Assignment. This
Agreement is personal to You and may not be assigned in any way by You without
the prior written consent of Acacia.   Any such attempted
assignment without Acacia's written consent shall be void.

       

      11.          Severability and
Reformation. The parties intend all provisions of this Agreement to
be enforced to the fullest extent permitted by law. If, however, any provision
of this Agreement is held to be illegal, invalid, or unenforceable under present
or future law, such provision shall be fully severable, and this Agreement shall
be construed and enforced as if such illegal, invalid, or unenforceable
provision were never a part hereof and the remaining provisions shall remain in
full force and effect.  Moreover, any provision so affected shall be
limited only to the extent necessary to bring the Agreement within the
applicable requirements of law.

       

      12.          Governing Law and
Venue. This Agreement is to be governed by and construed in
accordance with the laws of the State of California applicable to contracts made
and to be performed wholly within such State, and without regard to the
conflicts of laws principles thereof.  Any suit brought and any and
all legal proceedings to enforce this Agreement whether in contract, tort,
equity or otherwise, shall be brought in the state or federal courts sitting in
Los Angeles County, California, the parties hereto hereby waiving any claim or
defense that such forum is not convenient.

       

      13.          Arbitration.  Any
controversy, claim or dispute arising out of or in any way relating to this
Agreement, the alleged breach thereof, and/or your employment with Acacia or its
termination including, without limitation, claims for breach of any express or
implied contract, tort claims, claims for violation of any federal, state or
other governmental law, statute, ordinance, Executive Order or regulation, and
any and all claims for employment discrimination or harassment, shall be
determined by binding arbitration administered by the American Arbitration
Association under its National Rules for Resolution of Employment Disputes
("Rules") which are in effect at the time of the arbitration.  The
Rules are hereby incorporated by reference.  California Code of Civil
Procedure § 1283.05, which provides for certain discovery rights, shall
apply to any such arbitration, and said code section is also hereby incorporated
by reference.  In reaching a decision, the arbitrator shall have no
authority to change, extend, modify or suspend any of the terms of this
Agreement.  The arbitration shall be commenced and heard in Los
Angeles County, California.  The arbitrator shall apply the
substantive law (and the law of remedies, if applicable) of California or
federal law, or both, as applicable to the claim(s) asserted.  The
Arbitrator shall issue a written decision explaining his/his
award.  Judgment on the award may be entered in any court of competent
jurisdiction, even if a party who received notice under the Rules fails to
appear at the arbitration hearing(s).  The parties may seek, from a
court of competent jurisdiction, provisional remedies or injunctive relief in
support of their respective rights and remedies hereunder without waiving any
right to arbitration.  However, the merits of any action that involves
such provisional remedies or injunctive relief, including, without limitation,
the terms of any permanent injunction, shall be determined by arbitration under
this paragraph.  Notwithstanding the foregoing, claims for workers'
compensation benefits, unemployment compensation benefits, or claims based upon
an employee benefit plan which provides by its own terms for arbitration are
exempted from the provisions of this Paragraph.  In any arbitration
hereunder, the parties will each pay for their costs and attorneys' fees, if
any.  However, if either party prevails on a statutory claim which
entitles the prevailing party to attorneys' fees, the arbitrator may award
reasonable attorneys' fees to the prevailing party in accordance with that
statute.  If any claim or class of claim is determined by applicable
law not to be subject to arbitration, this Agreement to arbitrate shall remain
in full force and effect with respect to all other claims asserted between the
parties.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      14.         Entire Agreement, Amendment and
Waiver. This Agreement contains the entire understanding and
agreement between the parties, and supersedes any other agreement between Acacia
and You, whether oral or in writing, with respect to the subject matter hereof.
This Agreement may not be altered or amended, nor may any of its provisions be
waived, except by a writing signed by both parties hereto or, in the case of an
asserted waiver, by the party against whom the waiver is sought to be
enforced.  Waiver of any provision of this Agreement, or any breach
thereof, shall not be deemed to be a waiver of any other provision or any
subsequent alleged breach of this Agreement.

       

      15.         Survival and
Counterparts.  The provisions of Sections 2(b), 3.3, 3.4, 3.5, 3.6,
4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15 of this Agreement shall survive the
termination of this Agreement. This Agreement may be executed in counterparts,
with the same effect as if both parties had signed the same
document.  All such counterparts shall be deemed an original, shall be
construed together and shall constitute one and the same
instrument.

       

      IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.

      

      
        ACACIA
TECHNOLOGIES SERVICES COPRORATION

      

      

      By   /s/ Robert A.
Berman                                                      

      Name:
Robert A.
Berman

      Its:____COO_________

      

       

      /s/ Dooyong
Lee_______________

      Dooyong
Lee

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
ADDENDUM
TO EMPLOYMENT AGREEMENT

       

      

      This
Addendum amends your Employment Agreement dated January 28, 2005 (the
“Employment Agreement”).  Unless specifically modified by the terms of
this Addendum, the terms of the Employment Agreement remain unchanged and in
full force and effect.

      

      At the
end of each calendar year, You shall be eligible for a discretionary bonus equal
in value of up to Thirty percent (30%) of your annual salary.  Such
bonus shall be at the sole discretion of the Compensation Committee of Acacia
Research Corporation, and shall be based upon personal performance, overall
company performance, and any other factors that the Compensation Committee
elects to consider.  This bonus is solely within the discretion of the
Compensation Committee, which may elect to pay You no bonus in any given year or
years.  The Compensation Committee may increase the amount of the
discretionary bonus, but has no obligation to do so. In order to be eligible for
the discretionary annual bonus, this Agreement must be in full force and effect
at the time of the payment of such bonus. The discretionary annual bonus shall
be subject to all appropriate federal and state withholding taxes in accordance
with the normal payroll procedures of Acacia.

      

      

      

      Acknowledged
and Agreed:

      

      /s/
Dooyong Lee

        
          

        

      

      Dooyong
Lee

      

      /s/ Paul
R. Ryan

        
          

        

      

      Paul R.
Ryan

      Chairman
and CEO

      

      

      Dated:
March 6, 2008

      

      

      8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]