Document:

Exhibit 10.2

 

Spherix Incorported

 

 

AMENDED AND RESTATED

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT

 

This AMENDED

AND RESTATED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT (this

“Agreement”), made and entered into this 15th day of May, 2002, between

SPHERIX INCORPORATED, a corporation organized under the laws of the state of

Delaware (hereinafter referred to as the “Corporation”), and M. Karen Levin

(hereinafter referred to as the “Employee”).

 

Witnesseth

 

WHEREAS, the

Corporation is engaged in research, development, products and services in the

areas of chemistry, biology, microbiology, occupational health, air and water

pollution control, toxicology, wastewater treatment, environmental and medical

products, writing, editing, word processing, graphics arts, and information

services; and

 

WHEREAS, the

Employee has been engaged as an expert and corporate executive in major

enterprises in the areas indicated above; and

 

WHEREAS, the

Employee is presently Vice President, Communications; and

 

WHEREAS,

during the period of the Employee’s employment, the Corporation has greatly

enhanced its activities and prestige largely as a result of the activities by

the Employee on behalf of the Corporation:

 

NOW,

THEREFORE, in consideration of the mutual promises and covenants herein set

forth and other good and valuable consideration, the receipt of which is hereby

acknowledged, the Corporation and the Employee do hereby agree, each with the

other as follows:

 

1.             Employment.         The Employee hereby agrees to remain in

the full-time or part-time employ, as determined by the Board, of the

Corporation, until her retirement, death, or disability, or such other time as

the Employee and the Corporation agree. Until the occurrence of one of the

events set forth above, the employee shall continue to devote her full—time or

part-time, as determined by the Board, attention exclusively to the business of

the Corporation. As used herein, the term “retirement” shall mean the time at

which the Employee ceases to provide services to the Corporation.

 

2.             Compensation.

 

(a)           As compensation for rendering

full-time or part-time attention to-the business of the Corporation until the

occurrence of an event specified in Section 1 of this Agreement, the

Corporation hereby agrees to

 

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pay the Employee compensation

at the rate of compensation now being paid her or at such other higher rate as

may, from time to time, be agreed upon. Any increase in the rate or change in

the method of compensation shall in no way be deemed a violation or waiver of

any of the provisions of this Agreement.

 

(b)           As a Supplemental Executive

Retirement Plan (SERP) payment for services currently being rendered, and in

order to assure the Employee of adequate retirement income, the Corporation

hereby agrees to pay the Employee a monthly SERP payment according to the

following formula:

 

Sixty percent

(60%) of average total compensation, defined as base salary plus annual bonus,

for the highest three (3) years of full-time employment prior to retirement,

divided by twelve (12), less the sum of the following three (3) items

calculated on a monthly basis: i) fifty percent (50%) of the Social

Security payment received by the Employee; ii) the monthly amount the Employee

would receive if the 401(k) plan lump sum payment attributable to company

contributions received by the Employee upon her retirement, including the value

of any loans or withdrawals, mandatory or voluntary, taken by the Employee

prior to her retirement (which value shall be computed using as the relevant

interest rate, the national average prime rate applied to the loan or

distribution from date of receipt), were used to acquire an annuity which would

pay equal monthly payments commencing on the date of retirement and continuing

throughout the actuarially determined balance of the Employee’s lifetime (which

amount shall be computed using as the relevant interest rate, the average prime

rate as published by the Wall Street Journal or other national daily

business publication for the thirty (30) day period immediately preceding

retirement); and iii) the monthly amount the Employee would receive if the lump

sum payment received by the Employee from the Corporation’s defined benefit

pension plan (which value shall he computed using as the relevant interest

rate, the national average prime rate applied to the lump sum payment from date

of receipt) were used to acquire an annuity which would pay equal monthly

payments commencing on the date of retirement and continuing throughout the

actuarially determined balance of the Employee’s lifetime (which amount shall

be computed using as the relevant interest rate, the average prime rate as

published by the Wall Street Journal or other national daily business

publication for the thirty (30) day period immediately preceding retirement).

 

Payment of the SERP shall

commence with the first month following the Employee’s retirement from the

Corporation, and shall be paid monthly for the remainder of the Employee’s

lifetime. In the event the Employee retires from the Corporation due to a

disability, the SERP payment will be calculated according to the following

formula:

 

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Sixty percent

(60%) of average total compensation, defined as base salary plus annual bonus,

for the highest three (3) years of full-time employment prior to retirement,

divided by twelve (12), less the sum of the following four (4) items calculated

on a monthly basis: i) fifty percent (50%) of the Social Security payment

received by the Employee; ii) the monthly amount the Employee would receive if

the 401(k) plan lump sum payment attributable to company contributions received

by the Employee upon her retirement, including the value of any loans or

withdrawals, mandatory or voluntary, taken by the Employee prior to her

retirement (which value shall be computed using as the relevant interest rate,

the national average prime rate applied to the loan or distribution from date

of receipt), were used to acquire an annuity which would pay equal monthly

payments commencing on the date of retirement and continuing throughout the

actuarially determined balance of the Employee’s lifetime (which amount shall

be computed using as the relevant interest rate, the average prime rate as published

by the Wall Street Journal or other national daily business publication

for the thirty (30) day period immediately preceding retirement); iii) the

monthly amount the Employee would receive if the lump sum payment received by

the Employee from the Corporation’s defined benefit pension plan (which value

shall be computed using as the relevant interest rate, the national average

prime rate applied to the lump sum payment from date of receipt) were used to

acquire an annuity which would pay equal monthly payments commencing on the

date of retirement and continuing throughout the actuarially determined balance

of the Employee’s lifetime (which amount shall be computed using as the

relevant interest rate, the average prime rate as published by the Wall

Street Journal or other national daily business publication for the thirty

(30) day period immediately preceding retirement); and iv) payment from any

company-provided short or long term disability plan in effect for employees of

the Corporation.

 

In the event disability

payments cease because of terms of the insurance contract specifying duration

of benefits, the SERP payment will be recalculated without the offset of item

(iv).

 

(c)           The SERP payment provided for in

Section 2(b) shall be adjusted in the second and subsequent years of payment so

that payments are increased or decreased to reflect the net change in the

Consumer Price Index (“CPI”) for the Washington DC Metropolitan area as

prepared by the United States Department of Labor, Bureau of Labor Statistics,

when compared with the first year in which payments are made. In the event that

there is no Consumer Price Index for the Washington DC Metropolitan area, the

Consumer Price Index for the nearest metropolitan area for which there is such

an index shall be used as the basis for adjusting the SERP payment. If no

metropolitan area Consumer

 

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Price Index exists, the

national Consumer Price Index for the United States shall be used as the basis

for adjusting the SERP payment. The amount of the adjustment shall equal one

hundred percent (100%) of the change in the CPI up to and including ten percent

(10%) plus seventy-five percent (75%) of any change in the CPI in excess often

percent (10%). In making such adjustments, the calendar year in which the first

payment is made under Section 2(b) shall be treated as the base year, and all

adjustments made shall proportionately reflect subsequent changes in the CPI as

compared with that base year. All adjustments under this Section 2(c) shall be

made commencing with each anniversary date of the first payment made under

Section 2(b). Following the adjustment of the payment amount on such an

anniversary date, payment shall continue to be made at that adjusted rate until

the next such anniversary date, at which time payment shall again be adjusted

to reflect the provisions of this section.

 

(d)           The Board of Directors, at its

discretion, may increase the adjustment above the level of the CPI change, but

shall not provide an adjustment less than the CPI change.

 

(e)           All SERP payments shall be subject to

any deductions the Corporation is required to make under applicable State or

Federal law.

 

(f)            This Agreement shall not preclude,

in addition to current compensation or SERP payments as specified herein, the

payment to the Employee of such other or additional amounts as may be payable

or distributable during the term of employment or thereafter, or restrict in

any way any benefits payable under any employee benefit plan of the Corporation

now in effect or hereafter adopted. Neither shall any payment under this

Agreement be deemed to constitute payment in lieu of or in reduction of any

compensation or any benefit under such plans.

 

3.             Merger or Consolidation.   Notwithstanding any provisions in this

Agreement to the contrary, in the event of a merger, consolidation, or

reorganization of the Corporation (whether the Corporation is the continuing or

disappearing entity), the Corporation shall advise the successor organization

of the terms of this Agreement. In any event, however, this Agreement shall be

binding upon the organization that is the successor to the Corporation and the

Corporation shall remain liable subsequent to the consolidation or merger in

the same manner as immediately prior thereto. In the event of any merger or

consolidation of the Corporation or other similar transaction to which the

Employee does not assent as a Director or stockholder due to the Employee’s

good faith determination that such transaction is likely to materially and

adversely affect the financial ability of the surviving entity to perform this

 

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Agreement, the Employee shall

have the election to accelerate all future payments then due and to receive the

commuted actuarial value of those remaining future payments at the time of such

transfer.

 

4.1           Non-Competition.

 

(a)           During a period of three (3) years

following retirement, the Employee will not, directly or indirectly, either

individually or as owner, partner, agent, employee, consultant or otherwise,

engage in any activity competitive with the business of the Corporation or its

affiliates, nor will she, in competition with the Corporation or its

affiliates, solicit or otherwise attempt to establish for herself or any other

person, firm or entity, any business relationships with any person, firm or

corporation which was, at any time during the employment period of the Employee

with the Corporation, a customer of the Corporation or one of its affiliates. Any

violations of this provision shall be grounds for termination by the

Corporation of this Supplemental Executive Retirement Plan Agreement.

 

(b)           Nothing in this paragraph 4.1 shall

be construed to prevent the Employee from owning, as an investment, not more

than 1% of a class of equity securities issued by any competitor of the

Corporation or its affiliates and publicly traded and registered under Section

12 of the Securities Exchange Act of 1934.

 

4.2           Trade Secrets.       The Employee will keep confidential any

trade secrets or confidential or proprietary information of the Corporation and

its affiliates which are now known to her or which hereafter may become known

to her as a result of her employment or association with the Corporation and

shall not at any time directly or indirectly disclose any such information to

any person, firm or corporation, or use the same in any way other than in

connection with the business of the Corporation or its affiliates at all times

during retirement. For purposes of this Agreement, “trade secrets or

confidential or proprietary information” means information unique to the

Corporation or any of its affiliates which has a significant business purpose

and is not known or generally available from sources outside the Corporation or

any of its affiliates or typical of industry practice. Any violations of this

provision shall be grounds for termination by the Corporation of this

Supplemental Executive Retirement Plan Agreement.

 

5.             Corporation’s Remedies for

Breach. It is recognized that damages

in the event of breach of paragraphs 4.1 or 4.2 by the Employee would be

difficult, if not impossible, to ascertain, and it is therefore agreed that the

Corporation, in addition to and without limiting any other remedy or right they

may have, shall terminate SERP payments as provided under this Agreement in the

event of breach of paragraphs 4.1 or 4.2. Prior to the termination of SERP

payments, however, the Corporation shall provide summary notice to the Employee

of such action, by registered or certified mail, return receipt requested,

addressed to the Employee at her then principal residence

 

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according to the records of the

Corporation. The Employee shall have thirty (30) days from date of receipt of

this summary notice to respond in writing to the Corporation at its then

principal offices. SERP payments shall be terminated if Employee response is

not timely, or if Employee response does not negate allegations of

non-competition and/or confidentiality violations. In addition, the Corporation

shall have the right to seek an injunction or other equitable relief in any

court of competent jurisdiction, enjoining any such breach, and the Employee

hereby waives any and all defenses she may have on the ground of lack of

jurisdiction or competence of the court to grant such an injunction or other

equitable relief. The existence of this right shall not preclude any other

rights and remedies at law or in equity which the Corporation may have.

 

6.             Non-Alienation.   This Agreement is personal to the Employee

and may not be assigned by her; further, this Agreement may not be assigned by

the Corporation except in connection with the assignment/transfer of

substantially all of its assets. With respect to SERP payments provided in

Section 2 (b) of this Agreement, the right to receive such payments shall not

be subject in any manner to anticipation, alienation, sale, transfer,

assignment, pledge, encumbrance, or charge; and any attempt to so anticipate,

alienate, sell, transfer, assign, pledge, encumber or charge the same shall be

void. Such rights shall not in any manner be liable for or subject to the

debts, contracts, liabilities, engagements or torts of the Employee.

 

7.             Prohibition Against Funding.            The Corporation’s obligation to pay

benefits under this Agreement is only a contractual obligation and nothing

herein shall be deemed to require the Corporation to segregate assets or

otherwise fund this obligation. Further, nothing contained in this Agreement

and no action taken pursuant to the provisions of this Agreement shall create

or be construed to create a trust of any kind or a fiduciary relationship

between the Corporation and the Employee or any other person.

 

8.             Incompetence or Death.      If the Board of Directors of the

Corporation finds that the Employee is unable to care for her affairs, any

payment due (unless a prior claim therefore shall have been made by a duly

appointed guardian, committee, or other legal representative) may be paid to

the spouse, child, or to any person deemed by the Board to have incurred

expenses for the Employee, in such manner and proportions as the Board may

determine. Any such distribution of the full payment due shall be a complete

discharge of the liabilities of the Corporation under this Agreement.

 

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If the

Employee dies, any payment due the Employee shall be made to such persons as

the Employee shall designate in writing before her death, or upon failure to

make such designation, then to the Employee’s surviving spouse, or if none, to

whomsoever she shall appoint by will.

 

9.             Legal Costs.          If the Corporation shall fail to pay

or provide for payment of any amounts required to be paid or provided for

hereunder at any time, the Employee shall be entitled to consult with counsel,

and the Corporation agrees to pay the reasonable fees and expenses of

independent counsel for the Employee in advising her or in bringing any

proceedings, or in defending any proceedings, involving the Employee’s rights

under this Agreement, such right to reimbursement to be immediate upon the

presentment by Employee of written billings for such reasonable fees and

expenses. The Employee shall be entitled to the prime rate of interest as

published in the daily Wall Street Journal or other national daily

business publication for any payments of such expenses, or any other payments

under this Agreement, that are overdue.

 

10.           Waiver.  A waiver of any breach of this Agreement shall not be a waiver of

any subsequent, similar or dissimilar, breach of any provision hereof.

 

11.           Termination for Cause.        In the event the Employee is terminated

for cause, this Supplemental Executive Retirement Plan Agreement shall be

terminated.

 

For purposes

of this Agreement, “cause” means (i) fraud, misappropriation or intentional

material damage to the property or business of the Corporation; commission of a

felony; (ii) continuance of (A) willful and repeated failure by the Employee to

perform her duties or (B) violation of a basic policy of the Corporation

concerning the scope of the authority of the Employee, in either case after

written notice to the Employee by the Board of Directors specifying such

failure, providing that such “cause” shall have been found by a majority vote

of the Board of Directors of the Corporation after at least 10 days written

notice to the executive specifying the cause proposed to be claimed and after

an opportunity for the Employee to be heard at meetings of such Board of

Directors; or (iii) a violation of paragraphs 4.1 or 4.2 of this Agreement.

 

12.           Notices. Any notice required or permitted to be given

hereunder shall be in writing and given personally or by registered or

certified mail, return receipt requested, addressed, in the case of notice to

the Employee, at her then principal residence according to the records of the

Corporation, or in the case of notice to the Corporation, to it at its then

principal offices. Any notice by such mail shall be deemed to have been given

when mailed.

 

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13.           Entire Agreement. This

Agreement constitutes the entire understanding of the Employee and the

Corporation with respect to the subject matter hereof and supersedes any and

all prior understandings written or oral. This Agreement may not be changed,

modified, or. discharged orally, but only by an instrument in writing signed by

the parties. This Agreement shall be governed by the laws of the State of

Maryland and the invalidity or lack of enforceability of any provisions hereof

shall in no way affect the validity or enforceability of any other provision.

 

IN WITNESS

WHEREOF, the Corporation has caused this Agreement to be executed on its behalf

and its corporate seal to be hereunto affixed by its duly appointed officers,

and the Employee has set her hand and seal to this Agreement, all as of the

date first above written.

 

	

   

  	

   

  	

  SPHERIX

  INCORPORATED

  
	

  (SEAL)

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Attest

  	

   

  	

   

  	

  By

  	

   

  
	

   

  	

  Katherine M.

  Brailer

  	

   

  	

  Lionel V.

  Baldwin

  
	

   

  	

  Corporate

  Secretary

  	

   

  	

  Chairman,

  Compensation Committee

  
	

   

  	

   

  	

   

  	

   

  
	

  Witness

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  M. Karen

  Levin

  

 

8Exhibit 10.5

 

Spherix Incorporated

 

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT

AGREEMENT (this “Agreement”), is entered into as of

the 15th day of May, 2002, between Spherix Incorporated, a Delaware corporation

(the “Corporation”), and Gilbert V. Levin (the “Executive”).

 

WITNESSETH:

 

Whereas,

the Corporation is engaged in providing information services in health,

pharmaceutical and civic areas; in providing services in the areas of

chemistry, biology, exobiology, microbiology, occupational health,. air and

water pollution and hazardous wastes control, industrial hygiene; and in the

development of proprietary products; and

 

Whereas,

the Executive has been engaged as an expert and corporate executive in major

enterprises in the areas indicated above; and

 

Whereas,

the Executive is presently, and has been since the formation of the

Corporation, an Executive of the Corporation; and

 

Whereas,

during the period of the Executive’s employment the Corporation has greatly

enhanced its activities and prestige largely as a result of the activities on

behalf of the Corporation by the Executive; and

 

Whereas, the

Executive has led the Company’s effort to commercialize its non—fattening sugar

as a major food products ingredient and for other non-food uses, and its

safe—for—humans pesticides; and

 

Whereas,

the value of the services provided by the Executive to the Corporation in the

past have had a value in excess of the compensation actually paid to the

Executive by the Corporation; and

 

Whereas,

the Corporation desires to provide additional compensation to the Executive for

the services previously rendered to the Corporation in order to assure that the

Executive will continue to render substantial services to the Corporation and

to any joint venture or subsidiary which may be formed to exploit its products

and services,

 

NOW, THEREFORE, in

consideration of the mutual promises and covenants herein set forth and other

good and valuable consideration, the receipt of which is hereby acknowledged,

the Corporation and the Executive do hereby agree, each with the other, as

follows:

 

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1.             Full-time Employment of Executive.

 

1.1.         Duties

and Status.

 

1.1.1.       The Corporation hereby engages the Executive

as a full-time executive employee for the period (the “Employment Period”)

specified in Section 4 and the Executive accepts such employment, on the terms

and conditions set forth in this Agreement. During the Employment Period, the

Executive shall exercise such authority and perform such executive duties as

are commensurate with the authority being exercised and duties being performed

by the Executive for the Corporation immediately prior to the effective date of

this Agreement.

 

1.1.2.       During the Employment Period, the

Executive shall (i) devote his full time and efforts to the business of the

Corporation and its subsidiaries or affiliates, including, without limitation,

efforts to commercialize its non—fattening sugar and/or other products and will

not engage in consulting work or any trade or business for his own account or

for or on behalf of any other person, firm or corporation which competes,

conflicts or interferes with the performance of his duties hereunder in any way

and (ii) accept such additional office or offices to which he may be elected by

the Board of Directors of the Corporation or its subsidiaries or affiliates,

including, without limitation, any joint venture or subsidiary formed to

commercialize the Company’s non—fattening sugar and/or other products, provided

that the performance of the duties of such office or offices shall be

consistent with the scope of the duties provided for in Section 1.1.1.

 

1.1.3.       The Executive shall be required to

perform the services and duties provided for in Section 1.1.1. only at the

location where the Executive was employed immediately prior to the effective

date of this Agreement or such other location of the principal executive

offices of the Corporation in the Washington, D.C. greater metropolitan area as

the Board of Directors of the Corporation may designate, and/or scheduled

telecommuting via the internet from home as approved by the Compensation

Committee and the Board of Directors of the Company at their May 15, 2002,

Meetings. The Executive shall be entitled to vacation, leave of absence, and

leave for illness or temporary disability in accordance with the policies of

the Corporation in effect, which shall not be less favorable than those in

effect at the date of this Agreement; and any leave on account of illness or

temporary disability which is short of total disability, as defined in the

Corporation’s long-term disability insurance plan (“Total Disability”), shall

not constitute a breach by the Executive of his agreements hereunder.

 

1.2.         Compensation

and General Benefits. As compensation for his services

under this Agreement, the Executive shall be compensated as follows:

 

1.2.1.       The Corporation shall pay the Executive

an annual base salary of $233,500. 

Such salary shall increase annually by the greater of (i) three percent

(3%) over the previous year or (ii) at such greater amount as is determined by

the Board of Directors of the Corporation. Such salary shall be payable in

equal, semi-monthly installments. Such salary shall be subject to normal

periodic review at least annually for increases based on the policies of the

Corporation and contributions to the enterprises, but in no event shall such

base salary be adjusted downward.

 

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1.2.2.       The Executive shall be eligible to

participate in such profit—sharing, stock option, bonus, incentive and

performance award programs which provide opportunities to receive compensation

which are the greater of the opportunities (i) then provided by the Corporation

to executives with reasonably comparable authority and duties (and in any event

not lesser than those provided to executives with junior authority or duties),

or (ii) available to the Executive immediately prior to the effective date of

this Agreement.

 

1.2.3.       The Executive shall be entitled to

receive employee benefits, including, without limitation, pension, disability,

group life, sickness, accident and health insurance programs and split-dollar

life insurance programs, and perquisites provided by the Corporation to

executives which are the greater of the employee benefits and perquisites (i)

then provided by the Corporation to executives with comparable authority or

duties (and in any event not lesser than those provided to executives with

junior authority or duties), or (ii) available to the Executive immediately

prior to the effective date of this Agreement. The health insurance benefits

received by the Executive shall continue for the Executive and the Executive’s

spouse following the retirement of the Executive and until the death of the

survivor of the Executive and the Executive’s spouse.

 

1.2.4.       The Corporation shall pay for continuous,

lifetime, long-term care insurance for Dr. and Mrs. Levin in recognition of

their years of service to the Company.

 

1.2.5.       The Corporation shall reimburse the

Executive for all reasonable expenses incurred by the Executive in the

performance of his duties hereunder.

 

2.             Competition; Confidential

Information.

 

2.1.         General.

The Executive and the Corporation recognize that due to the nature of his prior

association with the Corporation and of his engagements hereunder, and the

relationship of the Executive to the Corporation, both in the past as an

executive and in the future hereunder, the Executive has had access to and has

acquired, will have access to and will acquire, and has assisted in and may

assist in developing, confidential and proprietary information relating to the

business and operations of the Corporation and its affiliates, including,

without limiting the generality of the foregoing, information with respect to

their present and prospective research projects; products, systems and

processes (whether or not patentable); customers and agents; and sales and

marketing methods. The Executive acknowledges that such information has been

and will continue to be of central importance to the business of the

Corporation and its affiliates and that disclosure of it to or its use by

others could cause substantial loss to the Corporation. The Executive and the

Corporation also recognize that an important part of the Executive’s duties

will be to develop good will for the Corporation and its affiliates through his

personal contact with customers, agents and others having business

relationships with the Corporation and its affiliates, and that there is a

danger that this good will, a proprietary asset of the Corporation and its

affiliates, may follow the Executive if and when his relationship with the

Corporation is terminated. The Executive accordingly agrees as follows:

 

2.2.         Non-Competition.

 

2.2.1.       During the Employment Period the

Executive will not, directly or indirectly, either individually or as owner,

partner, agent, employee, consultant or otherwise, except for the account of

and on behalf of the Corporation or their affiliates, engage in any activity

 

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competitive with the business

of the Corporation or its affiliates, nor will he, in competition with the

Corporation or its affiliates, solicit or otherwise attempt to establish for

himself or any other person, firm or entity, any business relationships with

any person, firm or corporation which was, at any time during the Employment

Period, a customer of the Corporation or one of its affiliates.

 

2.2.2.       Nothing in this Section 2.2. shall be

construed to prevent the Executive from owning, as an investment, not more than

1% of a class of equity securities issued by any competitor of the Corporation

or its affiliates and publicly traded and registered under Section 12 of the

Securities Exchange Act of 1934.

 

2.3.         Trade

Secrets.  The

Executive will keep confidential any trade secrets or confidential or

proprietary information of the Corporation and its affiliates which are now

known to him or which hereafter may become known to him as a result of his

employment or association with the Corporation and shall not at any time

directly or indirectly disclose any such information to any person, firm or

corporation, or use the same in any way other than in connection with the business

of the Corporation or its affiliates during and at all times after the

expiration of the Employment Period. For purposes of this Agreement, “trade

secrets or confidential or proprietary information” means information unique to

the Corporation or any of its affiliates which has a significant business

purpose and is not known or generally available from sources outside the

Corporation or any of its affiliates or typical of industry practice.

 

2.4. Intellectual

Property. Throughout the Employment Period, the

Executive will disclose to the Corporation all processes, operations, products

or improvements developed by him which relate directly or indirectly to the

business of the Corporation or its affiliates which may be patentable or

copyrightable. The Executive agrees that such will be the property of the

Corporation and that he will, at the Corporation’s request and cost, do

whatever is necessary to secure the rights thereto by patent or copyright.

 

3.             Corporation’s Remedies for Breach.

It is recognized that damages in the event of breach of Section 2 by the

Executive would be difficult, if not impossible, to ascertain, and it is

therefore agreed that the Corporation, in addition to and without limiting any

other remedy or right they may have, shall have the right to an injunction or

other equitable relief in any court of competent jurisdiction, enjoining any

such breach, and the Executive hereby waives any and all defenses he may have

on the ground of lack of jurisdiction or competence of the court to grant such

an injunction or other equitable relief. The existence of this right shall not

preclude any other rights and remedies at law or in equity which the

Corporation may have.

 

4.             Employment

Period.

 

4.1.         Duration.

 The Employment

Period shall commence on the effective date of this Agreement and shall

continue until the earlier of (i) close of business on December 31, 2004 or

(ii) any termination of this Agreement that does not constitute an improper

termination as defined in Section 4.3.1.

 

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4.2.         Termination Payments.

 

4.2.1.       In the event of an improper termination

of this Agreement (as defined in Section 4.3.1. of this Agreement), the

Corporation shall pay to the Executive and provide him with the following:

 

4.2.1.1.    During the remainder of the Employment

Period, the Corporation shall continue to pay the Executive his salary at the

rate and as required by Section 1.2.1 and in effect immediately prior to the

date of termination.

 

4.2.1.2.    During the remainder of the Employment

Period, the Executive shall continue to be treated as an executive (at the

level provided for in Section 1.1.1.) under the provisions of the Corporation’s

profit—sharing, bonus, incentive and performance award programs and any other incentive

compensation arrangement described in Section 1.2.2. In addition, the Executive

shall continue to be entitled to all benefits and service credits for benefits

under any pension plan, or medical, insurance, split-dollar life

insurance and other employee benefit plans, programs and arrangements of the

Corporation described in Section 1.2.3. as if he were still employed during

such period under this Agreement

 

4.2.1.3.    If, despite the provisions of Section

4.2.1.2., benefits or the right to accrue further benefits under any profit

sharing, bonus, incentive or performance award programs or other long—term

incentive compensation arrangement described in Section 1.2.2. shall not be

provided under any such arrangement to the Executive, or his dependents, beneficiaries

and estate, because he is no longer an employee of the Corporation, the

Corporation shall, to the extent necessary, provide, pay or provide for payment

of amounts equal to the after tax benefits to the Executive, his dependents,

beneficiaries and estate.

 

4.2.1.4.    If, despite the provisions of Section

4.2.1.2., benefits or service credits under any employee benefit plan,

including, without limitation, benefits under any pension plan, or any medical,

insurance, split—dollar life insurance and other employee benefit plans,

programs and arrangements described in Section 1.2.3. shall not be payable or

provided under any such plan to the Executive, or his dependents, beneficiaries

and estate, because he is no longer an employee of the Corporation, the Corporation

shall, to the extent necessary, pay or provide for payment of equivalent after

tax benefits and service credits for such after tax benefit~ to the Executive,

his dependents, beneficiaries and estate.

 

4.2.1.5.    The Executive shall not be required to

mitigate the amount of any payment: provided for in this Section 4.2. by

seeking employment or otherwise, nor shall the amount of any payment provided

for in this Section 4.2 be reduced by any compensation or remuneration earned

by the Executive as the result of employment by another employer, or

self-employment, or as a partner, after the date of termination or otherwise.

 

4.2.2.       In the event of an improper termination,

the Executive may elect, within 60 days after such termination, to elect to be

paid a lump sum severance allowance, in lieu of termination payments, in an

amount which is equal to the sum of all of the salary payments which he would

have been entitled to receive in accordance with Section 4.2.1.1.  In the event that the Executive makes an

election pursuant to the preceding sentence to receive a lump sum severance

 

5

 

allowance, then, in addition to

such amount, he shall accelerate all future payments due with respect to (i)

the pension benefits he would have accrued under any pension benefit plan

maintained by the Corporation if he had remained in the employ of the

Corporation for the remainder of the Employment Period, which benefits will be

paid concurrently with, and in addition to, the benefits provided under such

pension benefit plan, (ii) incentive compensation (including, but not limited

to the right to participate in all of the Corporation’s profit sharing plans

and to receive and exercise stock options and stock appreciation rights and to

receive bonuses and performance awards and similar incentive compensation

benefits) to which he would have been entitled under this Agreement if he had

remained in the employ of the Corporation for the remainder of the Employment

Period, and (iii) employee benefits (including, but not limited to, coverage

under any disability, group life, sickness, accident and health insurance

programs, split—dollar life insurance arrangements or programs and

prerequisite) to which he would have been entitled under this Agreement if he

had remained in the employ of the Corporation for the remainder of the

Employment Period. By accelerating all future payments as described in this

Section 4.2.2., the Executive will have the right to receive an amount equal to

the commuted actuarial value of those payments within sixty (60) days after the

date of Executive’s termination.

 

4.2.3. In the

event of a termination other than an improper termination, the Executive shall

be entitled to any salary accrued to the date of the termination, but shall not

be entitled to any further salary or any further payments hereunder.

 

4.3.         Definitions.

The following terms shall have the specified meanings when used in the Sections

specified:

 

4.3.1.       In this Section 4, the term “improper

termination” means termination (i) by the Corporation of the employment of the

Executive with the Corporation for any reason other than death or Total

Disability of the Executive, or cause; or (ii) of the employment of the

Executive by resignation of the Executive due to (A) a significant change in

the nature or scope of his authorities or duties from those contemplated in

Section 1.1.1., (B) a merger or consolidation of the Corporation or other

similar transaction which is likely to materially and adversely affect the

financial ability of the Corporation or any successor assign thereto that

agrees in writing to assume the obligations of the Corporation hereunder to

perform this Agreement, (C) a reduction in total compensation and benefits from

that provided in Section 1.2, or (D) the breach by the Corporation in any

material respect of any other provision of this Agreement.

 

4.3.2.       In Section 4.3.1. the term “cause” means

(i) a final judicial finding that Executive has been guilty of fraud,

misappropriation or intentional material damage to the property or business of

the Corporation or the commission of a felony; (ii) continuance of willful and

repeated failure by the Executive to perform his duties in compliance with this

Agreement after written notice to the Executive by the Board of Directors

specifying such failure, provided that such “cause” shall have been found by a

majority vote of the Board of Directors of the Corporation after at least 10

days’ written notice to the Executive specifying the cause proposed to be

claimed and after an opportunity for the Executive to be heard at meetings of

such Boards of Directors; or (iii) a violation of Section 2 of this Agreement.

 

6

 

4.3.3.       In Section 4.2., “Employment Period”

shall mean the full period for which the Employment Period would have

continued, without any improper termination, under Section 4.3.1.

 

4.3.4.       In Section 2.2.1., “Employment Period”

shall mean the full period for which the Employment Period would have continued

under Section 4.1. in the event of any termination of the employment of the

Executive which is not an improper termination as defined in Section 4.3.1.

 

5.             Legal Costs. If

the Corporation shall fail to pay or provide for payment of any amounts required

to be paid or provided for hereunder at any time, the Executive shall be

entitled to consult with counsel, and the Corporation agrees to pay the

reasonable fees and expenses of independent counsel for the Executive in

advising him or in bringing any proceedings, or in defending any proceedings,

involving the Executive’s rights under this Agreement, such right to

reimbursement to be immediate upon the presentment by Executive of written

billings for such reasonable fees and expenses. The Executive shall be entitled

to the prime rate of interest established from time to time at Bank of America,

or its successors or successors in interest for any payments of such expenses,

or any other payments under this Agreement, that are overdue.

 

6.             Notices. Any

notices, requests, demands and other communications provided for by this

Agreement shall be sufficient if in writing and if sent by registered or

certified mail to the Executive at the last address he has filed in writing

with the Corporation or, in the case of the Corporation, at its principal

executive offices.

 

7.             Binding Agreement. This

Agreement shall be effective as of the effective date hereof and shall be

binding upon and inure to the benefit of the Executive, his executors,

administrators and personal representatives. The rights and obligations of the

Corporation under this Agreement shall inure to the benefit of and shall be

binding upon any successor of the Corporation as defined in Section 1-101(u) of

the Maryland General Corporation Law as now in effect; provided, that this

Agreement may not be assigned by the Corporation without the consent of the

Executive, and in the case of a successor by transfer of all or substantially

all of the assets of the Corporation, or any other successor in which the Corporation

does not cease to exist by operation of the transaction in question as a matter

of law, the Corporation shall not be relieved of its obligations hereunder.

 

8.             Entire Agreement.

This Agreement constitutes the entire understanding of the Executive and the

Corporation with respect to the subject matter hereof and supersedes any and

all prior understandings written or oral (including but not limited to the

Employment Agreement dated as of November 17, 1995, as amended, between the

Corporation and the Executive). This Agreement may not be changed, modified, or

discharged orally, but only by an instrument in writing signed by the parties.

This Agreement shall be governed by the laws of the State of Maryland and the

invalidity or unenforceability of any provisions hereof shall in no way affect

the validity or enforceability of any other provision.

 

9.             Indemnification.  In addition to any indemnification rights the

Executive may have by statute, by—law or otherwise, the Corporation to the

fullest extent permitted by, and in accordance with and subject to the

requirements of, the General Corporation Law of the State of Delaware, (i)

shall indemnify the Executive and hold him harmless for all losses, costs,

expenses or liabilities

 

7

 

(whether or not arising during

the Employment and pay all expenses, including reasonable attorneys’ fees and

court fees, actually and necessarily incurred by the Executive in connection

with the investigation or defense of, or being a witness in, any such action,

suit or proceeding and in connection with any appeal thereof.

 

10.          Other Agreements. Each

of the Supplemental Executive Retirement Plan Agreement dated as of February

17, 1993, by and between the Corporation and the Executive (the “SERP

Agreement”), and the Consulting Agreement dated as of February 17, 1993, by and

between the Corporation and the Executive (the “Consulting Agreement”) are

amended by deleting from Section 1 thereof the phrase “Employment Agreement

dated December 31, 1987” and substituting in lieu thereof the phrase “Amended

and Restated Employment Agreement dated May 15, 2002”.

 

The Deferred Compensation

Agreement dated as of March 13, 1981, by and between the Corporation and the

Executive, and amended on October 14, 1982, and December 31, 1987, is amended

by deleting from the second Whereas of the December 31, 1987 Amendment the

phrase “January 27, 1995” and substituting in lieu thereof the phrase “until

the end of the Employment Period as defined in Section 4.1 of the Executive’s

Employment Agreement dated May 15, 2002.”

 

In all other respects, the SERP

Agreement, the Consulting Agreement, and the Deferred Compensation Agreement

are ratified and confirmed as of the date hereof.

 

IN WITNESS WHEREOF,

the parties have executed, under seal, and delivered this Agreement the date

first above written.

 

	

   

  	

   

  	

  SPHERIX

  INCORPORATED

  
	

   

  	

   

  	

  Board of

  Directors

  
	

  (SEAL)

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  ATTEST:

  	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

  Katherine

  M. Brailer

  	

   

  	

  Lionel

  V. Baldwin, Chair

  
	

   

  	

  Corporate

  Secretary

  	

   

  	

  Compensation

  Committee

  
	

   

  	

   

  	

   

  	

   

  
	

  WITNESS:

  	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  	

  Gilbert V.

  Levin

  

 

8

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