Document:

Exhibit 10.6

((COMPANY LETTERHEAD))

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  EDC                    GLOBAL COMPREHENSIVE POLICY(SHIPMENTS)
  SEE
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                                                            Policy No. GC1-19781

This policy is issued June 30, 1998 by Export Development Corporation ("EDC")to
Pultronex Corp.                                         with offices located at
2305 Eighth Street                                             (the "Exporter")
Nisku, AB

A copy of the Exporter's  application  dated May 7, 1998  (the"Application")  in
respect of this Policy is attached as Schedule "A".

     COVERAGE

Insuring Agreement

1.  Subject to the  provisions  of this Policy,  on payment of a  non-refundable
processing fee of $500 and in consideration of the Exporter's undertaking to pay
EDC any premium amounts that become due and payable pursuant to Subsection 8(2),
EDC hereby  insures the Exporter  against and agrees to pay 90% of any Loss,  in
respect of goods  Shipped  during the period  from June 1, 1998 to May 31,  1999
inclusive, as a direct result of the occurrence of any of the following risks:

Insolvency

     (1)  Insolvency of The Buyer,

Non-payment

     (2)  failure  of the  buyer  to pay by the Due  Date all or any part of the
          Gross Invoice Value of goods delivered to and accepted by the buyer,

Repudiation

     (3)  failure of the buyer to accept goods  exported  from Canada before the
          expiry of thirty  days of the date of which the goods  were  placed at
          the buyer's  disposal in accordance with the delivery terms set out in
          the Eligible  Contract,  or refusal of the buyer to accept such goods,
          where such  failure  of  refusal is not  excused by and does not arise
          from any breach of contract on the part of the Exporter,

Conversion and Transfer

     (4)  the operation of a law or any governmental  directive having the force
          of  law  in  the  buyers  country  which  restricts  or  prevents  the
          conversion or transfer of currency,  and as a consequence prevents the
          buyer from making any payment  required to be made to the  Exporter in
          circumstances where:

          (a)  the buyer  has  complied  with all  requirements  in the  buyer's
               country for the subsequent conversion or transfer of currency for
               the purpose of making such payment, and

          (b)  the buyer has made an  irrevocable  deposit  for  transfer to the
               Exporter  of a  sum  in  the  currency  of  the  buyer's  country
               equivalent  to the amount of such payment  required to be made to
               the Exporter unless the buyer is specifically  precluded by a law
               or any  governmental  directive  having  the  force of law in the
               buyer's country from making such deposit,

War and Related Disturbances

     (5)  war or  hostilities  between  two or  more  countries,  or  rebellion,
          revolution, insurrection, civil commotion, acts of political terrorism
          or other  political  disturbance  of a similar  nature in any  country
          other  than  Canada,  excluding  however  any  Loss  sustained  by the
          Exporter  as a result of the  occurrence  of a risk that is within the
          scope of marine  cargo  insurance  available  under the War,  Strikes,
          Riots and Civil Commotion Clauses of the London or American  Institute
          on the date of goods were Shipped,  whether or not any such  insurance
          was placed,

Export Permits

     (6)  cancellation  or  non-renewal of an export permit by the Government of
          Canada or the imposition by the  Government of Canada of  restrictions
          on the export from Canada of goods which were not subject to permit or
          restriction prior to the date on which the goods were Shipped, or

Import Permits

     (7)  cancellation  or  non-renewal of an import permit or the imposition of
          restrictions  on the import  into the  buyer's  country of goods which
          were not subject to permit or  restriction  prior to the date on which
          the goods were Shipped.

                                                                     Page 1 of 6

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                                         GLOBAL COMPREHENSIVE POLICY (SHIPMENTS)
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Extended Political Cover

2.  If a Loss  is a  result  of the  occurrence  of  Risk  insured  pursuant  to
Subsection 1(2), and if the default that resulted in the Loss cannot be remedied
by the buyer  because  of the  occurrence  of a  Political  Risk  within 60 days
immediately  after the Due Date,  then such Loss  shall be  deemed to have been
sustained by the Exporter as a result of the occurrence of the Political Risk.

Changes by EDC

3. EDC shall  have the right at any time by  notice  to the  Exporter  to add or
amend any special  condition  set out in Schedule  "B" or to cancel or amend the
Credit Limit for all or any buyers in any country  designated  in Schedule  "B",
and any such addition,  amendment or cancellation  shall only apply to shipments
made after EDC has given such notice to the Exporter; and, any Loss which is the
result of  non-compliance  with an  addition,  amendment  or  cancellation  made
pursuant to the  provisions of this Section shall be  conclusively  deemed to be
due to a cause avoidable by the Exporter.

Application

4. The  representations  and the declarations made by the Exporter to EDC in the
Application form the basis on which this Policy has been issued.

     EXCLUSIONS

Exclusion of Liability

5. EDC shall not be liable for the  payment of any claim for any Loss in respect
of goods Shipped in circumstances where:

Misrepresentation

     (1)  the Exporter has at any time made any misrepresentation to EDC that is
          material  to EDC's  rights,  liabilities  or  obligations  under  this
          Policy,

Dispute

     (2)  there is a dispute  between the  Exporter and the buyer with regard to
          any matter under the Eligible Contract,

Changing Terms of Payment

     (3)  the Exporter or an agent of the Exporter has entered into an agreement
          with the buyer  changing  the terms of any  payment  to be made by the
          buyer to the Exporter  pursuant to the Eligible  Contract,  unless EDC
          has given its prior  approval in writing to such  agreement  or unless
          such agreement:

          (a)  constitutes a composition  arrangement that is legally binding on
               all creditors of the buyer, or

          (b)  has been  entered  into by the  buyer  with the  Exporter  in the
               circumstances described in Section 6,

Cause Avoidable by Exporter

     (4)  the Loss is due to a cause avoidable by the Exporter,  an agent of the
          Exporter  or an  Affiliate,  or is  caused  by the  insolvency  of the
          Exporter or the agent or Affiliate,

Assignment of Contract

     (5)  any  right,  title or  interest  of the  Exporter  under the  Eligible
          Contract  is assigned  by the  Exporter to any person  other than EDC,
          unless the  assignee  has  executed  and  delivered  to the Exporter a
          reassignment  and  release  in respect  thereof in form and  substance
          satisfactory to EDC,

Licences, Approvals or Authorizations

     (6)  The  Exporter  or the buyer has failed to obtain all or any  licences,
          approvals,  or authorizations  required on the date goods were Shipped
          for the due performance of the Eligible Contact, or

Related Buyers

     (7)  the Exporter has direct or indirect  equity  interest in the buyer, or
          if the buyer has any such equity interest in the Exporter.

Extension of Due Date

6. Where the buyer has  requested  the  extension of a Due Date the Exporter may
agree with the buyer to extend the Due Date if:

     (1)  payment is to be made on terms other than,

          (a)  cash against documents,

          (b)  documents against payment of sight draft, or

          (c)  documents on payment,

     (2)  the agreement is entered into prior to the original Due Date,

     (3)  the  extension  of the Due Date is not  greater  than 90 days from the
          original Due Date, and

     (4)  the new  extended  Due Date  does not  result in the  Exporter  having
          granted credit to the buyer for a period in excess of 180 days.

     DUTIES OF THE EXPORTER

Notification of Other Contracts

7. The  Exporter  shall  promptly  notify EDC in each and every  case  whwere an
export shipment of goods is to be made by the Exporter pursuant to a contract of
sale that is neither an Eligible Contract nor an Excluded Contract; and on being
so notified, EDC shall either:

     (1)  extend the  application of this Policy to include the contract of sale
          as an Eligible  Contact,  and advise the Exporter of the terms of such
          insurance coverage, or

     (2)  designate the contract of sale as an Excluded Contact.

8.  On or before the 10th day of each calendar month the Exporter shall:

Monthly Declarations

     (1)  complete  and  return  to  EDC  declaration   forms  provided  by  EDC
          specifying  by county  the Gross  Invoice  Value of all goods  Shipped
          during the previous calendar month pursuant to contracts of sale other
          than Excluded Contracts, and if no such goods have been Shipped during
          the  previous   calendar  month  then  the  Exporter  shall  submit  a
          declaration  to EDC  expressly  stating  that no such  goods have been
          Shipped,

Payment of Premium

     (2)  pay the  premium to EDC  computed  on the Gross  Invoice  Value of all
          goods Shipped during the previous calendar month, pursuant to Eligible
          Contracts,  at the  rates  applicable  on the  date  such  goods  were
          Shipped,  as set out in Schedule  "B", and remit the premium to EDC at
          the same time that the declaration forms are completed and returned to
          EDC pursuant to Subsection B(1), and

Overdue Accounts

     (3)  provide EDC with full  particulars  as to all  amounts  payable to the
          Exporter pursuant to Eligible Contracts, which are in default for more
          than 90 days.

Events that Could Cause a Loss

9. The Exporter shall immediately  notify EDC of the occurrence of any event or
circumstance that could cause a Loss.

Prevent and Minimize Loss

10. The Exporter shall use all reasonable and usual care,  skill and forethought
in respect of all matters affecting this Policy,  and shall take all practicable
measures, including any measures requested by EDC to:

     (1)  prevent the occurrence of any Loss, or

     (2)  minimize the amount of any Loss that may occur or has occurred.

     CREDIT LIMITS

Discretionary Credit Limit

11.  Subject to Section 12,  where a Credit  Approval  has not been issued for a
buyer, the Credit Limit for the buyer shall be the greater of:

     (1)  the highest  amount at any one time owing by the buyer to the Exporter
          on similar  terms  which was  promptly  paid  during the  twelve-month
          period immediately  preceeding the date the goods that are the subject
          of the Loss were Shipped, and

     (2)  the amount justified by reliable written credit  information  obtained
          by the Exporter from a recognized  independent credit reporting agency
          or bank which was  current at the date the goods that are the  subject
          of the Loss were Shipped,

except that such  Credit  Limit shall not exceed the amount set out in Item 1 of
Schedule "B".

Extended Discretionary Credit Limit

12. Where a Credit Approval has not been issued for a buyer,  and where all Loss
in respect  of goods  Shipped  to the buyer is a result of the  occurrence  of a
Political Risk, including any Loss deemed pursuant to Section 2 to be the result
of a Political  Risk, the Credit Limit for the buyer shall be the amount set out
in Item 1 of Schedule "B".

EDC Approved Credit Limit

13. Where a Credit  Approval  has been issued for a buyer,  the Credit Limit for
the buyer shall be the amount stipulated in the Credit Approval.

EDC's Maximum Liability Limit

14. Notwithstanding the aggregate amount of Credit Limits for individual buyers,
EDC's overall  maximum  liability under this Policy for the payment of claims on
account  of all  Losses is limited in the  aggregate  to the  maximum  liability
amount set out in Item 2 of Schedule "B".

     CURRENCY FOR PREMIUM AND CLAIM PAYMENTS

15. The premium payable to EDC pursuant to Subsection 8(2) and any claim payment
by EDC in  respect of a Loss shall be paid in  Dollars;  and where the  Contract
Currency is other than Dollars,

     (1)  the premium  payments  shall be made on the basis of the Gross Invoice
          Value being translated to Dollars, and

     (2)  the claim  payment shall be made on the basis of the Loss amount being
          translated to Dollars,

at the buying rate of  exchange at the  Exporter's  bank for the  conversion  of
Contract  Currency to Dollars on the last business day of the calendar  month in
which the goods were Shipped.

     LOSSES

Computation of Loss

16. Any Loss in respect  of goods  SHipped  shall be  computed  in the  Contract
Currency and,  shall be the Gross  Invoice Value of the goods  together with any
additional  insurance,  freight or other  handling costs incurred as a result of
the interruption of diversion of voyage outside Canada due to the occurrence of
the Risk which resulted in such Loss, less:

     (1)  all amounts received,  recovered or realized on account of amounts due
          and payable to the Exporter by the buyer in respect of such goods, and

     (2)  all costs that would have  normally  been  incurred by the Exporter in
          respect of such goods but which have not been  incurred as a result of
          the occurrence of the Risk insured,

except  that where the amount  comptued  above in  respect of Loss  exceeds  the
Credit Limit for the buyer less any

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unrecovered prior Loss amounts in respect of which claim payments have been made
by EDC as a result of  transactions  between  the  Exporter  and the buyer,  the
amount of Loss computed  hereunder shall be the Credit Limit for the buyer less
any such unrecovered prior Loss amounts.

     CLAIM PAYMENTS

Third Party Guarantees

17.  EDC shall not be  required  to make any claim  payment in respect of a Loss
where EDC has  expressly  stated that its  liability is subject to the Exporter
obtaining a third party  guarantee  wherein  the buyer's  obligation  to pay the
Exporter is guaranteed by such third party unless:

     (1)  the guarantee has been obtained by the Exporter, and

     (2)  the  guarantor  has  defaulted  in  its  payment  obligations  to  the
          Exporter.

Claim Waiting Period

18. The right of the  Exporter to claim  against EDC for  indemnification  under
this Policy for a Loss hall arise four  months  after the date on which the Loss
was sustained by the Exporter, except that:

     (1)  if the Loss is a result of the  occurrence  of the Risk  described  in
          Subsection  1(1), the right of the Exporter to claim against EDC shall
          arise immediately upon the Loss having been sustained by the Exporter,

     (2)  if the Loss is a result of the  occurrence  of the Risk  described  in
          Subsection  1(2), the right of the Exporter to claim against EDC shall
          arise six months from the date on which the Loss was  sustained by the
          Exporter, and

     (3)  if the Loss is a result of the  occurrence  of the Risk  described  in
          Subsection  1(3), the right of the Exporter to claim against EDC shall
          arise  when the goods  referred  to in the Risk  have  been  resold or
          otherwise  disposed of by or on behalf of the Exporter  with the prior
          approval of EDC.

Claim Period

19. EDC shall not be liable for the  payment of a claim for any Loss  unless EDC
has received notice from the Exporter of the claim within twelve months from the
date on which the Loss was sustained by the Exporter.

     RECOVERIES

Sharing of Recoveries

20.  Where  EDC has paid a claim for a Loss in  respect  of goods  Shipped,  all
amounts  exclusive of post maturity  interest  that are  received,  recovered or
realized on account of amounts  payable to the  Exporter by the buyer in respect
of such  goods  shall be  first  divided  between  the  Exporter  and EDC in the
proportion  in which they shared the Loss,  until the  aggregate of such amounts
equals the amount of the Loss,  after which any further such  amounts  received,
recovered or realized shall be exclusively for the account of the Exporter;  and
any post maturity interest in respect of unrecovered EDC claim payments shall be
for the account of EDC.

Remittance of Recoveries

21. All amounts due to EDC  pursuant  to Section 20,  which have been  received,
recovered  or realized by the  exporter or any person on behalf of the  Exporter
other than EDC,  shall be  forthwith  remitted to EDC in the  Contract  Currency
unless otherwise directed by EDC, and until so remitted such funds shall be held
in trust for EDC.

Recovery Obligations of Exporter

22. On payment of a claim by EDC in respect of a Loss,  the Exporter  shall take
all steps  necessary  or  expedient  to recover  the amount of the Loss,  and if
requested by EDC, the Exporter shall:

     (1)  institute legal  proceedings  against the buyer to recover any amounts
          owned to the Exporter in respect of such Loss,

     (2)  grant and  execute in form  acceptable  to EDC a Power of  Attorney in
          favour  of EDC,  enabling  EDC to give  instructions  on behalf of the
          Exporter in respect of any legal rights and remedies  available to the
          Exporter against the buyer to recover any amounts owed to the Exporter
          in  respect  of  such  Loss,   including  the   institution  of  legal
          proceedings  in  respect  thereof  against  any  person  by and in the
          Exporter's name, and

     (3)  transfer  and assign to EDC all or any part of the  Exporter's  right,
          title and  interest in any amounts  owed to the Exporter in respect of
          such Loss, or any security in respect thereof, and the Exporter agrees
          to give notice of any such assignment only when and as may be directed
          in writing by EDC.

Subrogation

23.  On  payment  of a claim by EDC in  respect  of a Loss,  EDC  shall be fully
subrogated to the Exporter's  recovery rights in respect of the Loss, whether or
not the Exporter has been fully indemnified for such Loss; and EDC may institute
legal  proceedings  in the  Exporter's  name  against any person for purposes of
exercising any such subrogated right.

     GENERAL CONDITIONS

EDC's Access to Information

24. EDC may at any time examine and make copies of all  letters,  commuications,
accounts  or other  documents  in the  possession  or  control  of the  Exporter
relating to any matter  under this Policy;  and in respect  thereof the Exporter
shall, at the request of EDC,

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     (1)  provide EDC with all  information  in the  possession of the Exporter,
          and

     (2)  take all reasonable  steps to obtain any  information or to obtain the
          sight of any document in the possession of a third party.

Contract of Insurance

25. This Policy and any endorsements thereto, and the Application on which it is
based constitutes the entire contract of insurance between EDC and the Exporter;
and except as expressly provided for herein, any verbal statements, undertakings
or  agreements  between the parties  other than what is contained in this Policy
and any endorsements thereto or as contained in the Application,  shall not form
part of, or be deemed to be part of, such contract of insurance.

Notice

26. Every notice to be given pursuant to this Policy shall be in writing,  which
shall include telex, cable or telegram,  and such notice shall be with delivered
by hand mailed or  transmitted  to EDC or the  Exporter,  as the case may be, at
their  respective  addresses;  and any such notice  shall be effective as to the
matters  therein  referred to, when  received by the Exporter or EDC as the case
may be.

Observance of Policy Conditions

27. The due performance and observance of the Exporter's  duties and obligations
as set out in this Policy,  shall be a condition  precedent to any  liability of
EDC for the payment of a claim in respect of a Loss.

Termination

28. EDC shall have the right to terminate  this Policy of fifteen days notice to
the Exporter if the Exporter  defaults in the due  performance  or observance of
its duties or  obligations  as set out in this  Policy,  unless such  default is
cured or remedied by the Exporter within such fifteen day notice period.

Policy not Assignable

29. The  Exporter  shall not assign this Policy or any right,  title or interest
therein, without the prior approval in writing of EDC.

Good Faith

30.  Without  limiting the  operation  of any rule of law,  this Policy has been
issued on the condition  that the Exporter will observe the utmost good faith at
all  time;  and  that,  as at the date of  issuance  hereof,  the  Exporter  has
disclosed  to EDC all facts  material  to the Risks  insured,  and also that the
Exporter will promptly  disclosed to EDC all changes within the knowledge of the
Exporter which are material to any of the Risks insured.

Severability

31. If any provision of this Policy or the application  thereof to any person or
circumstance shall, to any extent, be invalid or unenforceable, the remainder of
this Policy and the  application of such  provision to persons or  circumstances
other that those as to which it is held invalid or  unenforcable,  shall not be
affected thereby and each provision of this Policy shall be separately valid and
enforcable to the fullest extent  permitted and this Policy shall be interpreted
as for as possible so as to give effect to its stated purposes.

Interpretation

32. The  marginal  notes and  headings  in this Policy  have been  inserted  for
convenience of reference only and do not form part of this Policy, and shall not
be referred to in the  interpretation of this Policy;  and all references herein
to "Section", "Subsection" and "Paragraph" shall respectively refer to Sections,
Subsections and Paragraphs of this Policy.

     DEFINITIONS

33. In this Policy,  and any  endorsement or schedule  hereto,  the terms "EDC",
"Exporter" and "Application" have the meaning ascribed to such terms as referred
to in the opening words on page 1 of this Policy, and

     (1)  "Affiliate" means a person carrying on business,

          (a)  that is either directly or indirectly  controlled by the Exporter
               or by a person that also controls the Exporter, or

          (b)  that either directly or indirectly control the Exporter,

and for purposes of this definition of Affiliate control means de facto control,

     (2)  "Contract  Currency"  means the  currency  in which the Gross  Invoice
          Value of goods is contractually  required to be paid by a buyer to the
          Exporter,

     (3)  "Credit  Approval" means a notice given by EDC to the Exporter stating
          specific terms and amount of the Credit Limit for a buyer,

     (4)  "Credit  Limit"  means the maximum  amount of Loss for which EDC claim
          payments  may be  computed  in respect  of any  individual  buyer,  as
          determined in that regard pursuant to Section 11, 12 or 13 as the case
          may be,

     (5)  "Dollars"  or "$" means the  Currency  described in Item 3 of Schedule
          "B",

     (6)  "Due Date" means the date on which an amount payable by a buyer to the
          Exporter under an Eligible Contract is due for payment,

     (7)  "Eligible  Contract"  means a contract of sale that is not an Excluded
          Contact, and which ,

          (a)  has been entered into by the Exporter with a buyer located in one
               of the countries designated in Schedule "B", and

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          (b)  complies with any special conditions set out in Schedule "B" for
               the  country in which the buyer is  located,  and which  provided
               that all amounts  payable by the buyer to the  Exporter  shall be
               paid,

               (i)  in Canadian or United States of America dollars, and

               (ii) within the maximum  terms of payment set out in Schedule "B"
                    for the country in which the buyer is located,

          subject  however to the provisions of any Credit  Approval  issued for
          that buyer,

     (8)  "Excluded Contract" means a contract of sale which EDC has advised the
          Exporter in writing is not subject to  insurance  coverage  under this
          Policy,

     (9)  "Gross  Invoice  Value" means the invoice value of goods together with
          the amount of any insurance,  freight or other handling costs incurred
          by the  Exporter  on behalf  of the  buyer at the time the goods  were
          Shipped, excluding however:

          (a)  any amount secured by an irrevocable letter of credit prior to or
               on the date on which the goods were Shipped,

          (b)  any amount paid by the buyer to the  Exporter  prior to or on the
               date on which the goods were Shipped, and

          (c)  any post maturity  interest which is computed for a period during
               which payment is in default,

     (10) "Insolvency  Of  The  Buyer"  means  those   circumstances  where  the
          financial  affairs of a buyer have resulted in the  reorganization  or
          winding up of the financial  affairs of the buyer under the bankruptcy
          or insolvency laws of that buyer's country,

     (11) "Loss"  means any loss  sustained  by the  Exporter  under an Eligible
          Contract computed in accordance with Section 16,

     (12) "Political  Risk" means a Risk  described in  Subsection  1(4),  1(5),
          1(6), or 1(7),

     (13) "Risk" means a risk described in Section 1, and

     (14) "Shipped"  means that goods sold by the  Exporter  to a foreign  buyer
          have been palaced in transit from a location with Canada to a delivery
          destination outside Canada.

                         EXPORT DEVELOPMENT CORPORATION

/s/   Signature                                    /s/ Signature
____________________________________               _____________________________

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                                                                          [LOGO]
                                                                           EDC
                                                                           SEE

                                                          Policy No.:  GC1-19781

                                                          Endorsement No.:     3

                                                          Issued:   May 26, 1999

                            CONTINUATION ENDORSEMENT

     This  Endorsement  is  attached  to and forms  part of  Export  Development
Corporation Global  Comprehensive  Policy (Shipments) No. GC1-19781,  dated June
30, 1998, in the name of Pultronex Corp..

     The end date of the period of cover set out in Section 1 of this  Policy is
hereby  amended by  replacing  in the fourth  line  thereof the date of "May 31,
1999" with the date of "May 31, 2001".

     The Exporter hereby expressly acknowledges its concurrence and agreement to
extend the  insurance  Policy  which is subject to the changes  reflected in the
attached  Schedule B. The maximum  liability amount or amounts,  as the case may
be, set out in Item 2 of the  attached  Schedule B shall apply to the payment of
all claims made by the  Exporter  after May 31,  1999,  on account of all Losses
suffered  under the Policy for the entire period of cover;  such amount  cancels
and  replaces the maximum  liability  amount or amounts set out in Item 2 of any
other  Schedule  B  issued  during  the  previous   period(s)  of  cover.   This
Continuation Endorsement requires your acceptance.

EXPORT DEVELOPMENT                               PULTRONEX CORP.
CORPORATION

/s/ Signature                                    /s/ Gary Loblick
------------------------                         ----------------------
                                                 (Authorized Signature)

/s/ Signature                                    May 29, 1999
------------------------                         ----------------------
                                                 (Date)

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<PAGE><PAGE>   1

                                                                   EXHIBIT 10.24

        EMPLOYMENT AGREEMENT dated as of October 2, 2000, between PATRIOT
       SCIENTIFIC CORPORATION, a Delaware Corporation (the "Company"), and
                       Miklos B. Korodi (the "Executive").

                                   WITNESSETH:

1.  Term of Employment.

        (a) The Company hereby agrees to employ the Executive and the Executive
hereby agrees to accept employment as Vice President and Director of Sales and
Marketing of the Company for a two year period commencing October 2, 2000, or
for such shorter period as may be mutually agreed by the Company and the
Executive (the "Employment Period'), subject to the terms and conditions of this
Agreement. In his capacity as Vice President and Director of Sales and Marketing
of the Company, Executive will be responsible for the general duties associated
with his title including, but not limited to developing, implementing, and
monitoring the plans and programs to successfully market and sell the Company's
microprocessor technology and/or such other management duties on behalf of the
Company as may be assigned to him from time to time by the President and Chief
Executive Officer ("CEO") of the Company.

        (b) The Executive agrees that, during the Employment Period, he will
serve the Company faithfully and to the best of his abilities, devoting
substantially all his time, energy and skill to the activities of the Company
and the promotion of its interests. It is expressly understood that the
Executive may devote a reasonable amount of time to such charitable, civic and
personal affairs as shall not interfere with the obligations set forth in the
preceding sentence. The Executive agrees not to work for or participate in any
business that competes in any manner with the business of the Company during his
employment with the Company, including after hours, on weekends, or during
vacation time, even if only organizational assistance or limited consultation is
involved.

2.  Compensation and Benefit Plans

        (a) The Executive shall receive a base salary during the Employment
Period which shall be payable in installments at such times as other employees
are paid but in any case at least monthly as follows: (1) During the first year
of the Employment Period (`Year One"), the Executive shall receive a gross base
salary of not less than ten thousand dollars ($10,000.00) per month; (2) During
the second year of the Employment Period ("Year Two"), the Executive shall
receive a base salary of not less than the base salary received in Year One. The
base salary received in any year shall be subject to other upward adjustments as
shall be recommended by the President and CEO of the Company to the Board of
Directors of the Company (the "Board") and as shall be approved by the Board and
Compensation Committee.

        (b) The Executive is entitled, at the discretion of the Board of
Directors of the Company, to an Annual Incentive Bonus up to 50% of the total
yearly base compensation for the applicable year (the "Annual Incentive Bonus").
The Annual Incentive Bonus payment will be based upon mutually agreed upon
objectives and levels of performance.

        (c) The Executive shall be eligible to participate in all employee
benefit programs, if any, maintained by the Company, including, but not limited
to, group life insurance, medical, dental, retirement and pension plans, any
deferred compensation profit sharing plans, 401(k) savings plan, and other such
fringe benefits as are or may be available from time to time to senior
executives of the Company. During the Employment Period, the Executive is
entitled to 4 weeks vacation per annum.

        (d) The Company will pay or reimburse the Executive during the
Employment Period for all expenses normally reimbursed by the Company and
reasonably incurred by the Executive in furtherance of his duties hereunder and
authorized by the Company, including but not limited to, expenses of
entertainment, travel, meals, hotel accommodations and the like upon the
submission of the Executive of vouchers or an itemized list thereof and as may
be required in order to permit such payments as proper deductions for the
Company under the Internal Revenue Code of 1986 and the rules and regulations
adopted pursuant thereto now or hereafter in effect.

<PAGE>   2

3.  Stock Options.

        (a) The Executive will be granted an option to purchase three hundred
thousand (300,000) shares of the Company's common stock at the average of the
closing bid and ask price of the Company's stock on October 2, 2000. This option
will be granted under the Company's 1996 Stock Option Plan. The Company and the
Executive will sign a Stock Option Agreement memorializing the grant on October
2, 2000 in the form of the attached Exhibit A upon approval by the Stock
Compensation Committee.

        (b) The Stock Options will vest according to the following schedule: (1)
30,000 shares will vest immediately at the time of grant, (2) 135,000 shares
will vest on the earlier of the first year anniversary of the grant of the stock
option or when the Company has accumulated $2 million in gross revenue from the
period starting on October 2, 2000, and (3) 135,000 shares will vest on the
earlier of the second year anniversary of the grant of the stock option or when
the Company has accumulated $5 million in gross revenue from the period starting
on October 2, 2000. All stock options held by employee will vest immediately
prior to a Change in Control of the Company.

4.  Termination of Employment.

        (a) The employment of the Executive hereunder shall automatically
terminate if the Executive shall die during the Term of Employment. The
employment of the Executive can be terminated for cause by the Company at its
option only for the following:

        (1) the conviction of the Executive under state or federal law of a
felony or other crime, or the equivalent under foreign law; unless in any such
case Executive performed such act in good faith and in a manner reasonably
believed to be in or not opposed to the best interests of the Company;

        (2) the material breach by Executive of any provision of the Agreement
which has not been cured pursuant to the provisions of Section 5 hereof; or

        (3) a determination or request by an appropriate regulatory authority
that the Executive be removed or disqualified from acting as an officer of the
Company.

        (b) If the Executive's employment is terminated for other than cause by
the Company, then the Executive is entitled to severance payments equal to the
lesser of (i) four (4) months of the current base salary payable in a lump sum
payment on the last day of the thirty (30) day notice period or (2) the
remaining current base salary for the term of this agreement payable in a lump
sum payment on the last day of the thirty (30) day notice period. In such event,
the Executive shall have the right to continue coverage, at his expense, under
group life insurance, medical, and dental healthcare plans of the Company by
paying the applicable group premium(s) as if the Executive were still employed;
such right, if exercised within thirty days after termination of employment,
shall continue until the Executive reaches the age of 65, at which time it shall
terminate.

        (c) The Executive shall have the right as his sole option to terminate
his employment at any time upon ninety (90) days written notice or for such
other notice period to be determined by the President and CEO in his sole
discretion.

        (d) If within twelve (12) months of a Change in Control, as that term is
defined herein, Executive's employment is terminated for other than cause or
Executive refused to accept or voluntarily resigns from a position other than a
Qualified Position, as that term is defined herein, Executive shall receive
severance compensation equal to twelve (12) months of his then current base
salary. A "Change in Control" means the acquisition, directly or indirectly of
more than 40% of the outstanding shares of any class of voting securities of the
Company by one person or one entity that is not an existing shareholder as of
the date of this Agreement, or a merger, consolidation or sale of all or
substantially all of the assets of the Company, such that the individuals
constituting the Board of the Company immediately prior to such period shall
cease to constitute a majority of the Board, unless the election of each
director who was not a director prior thereto was approved by vote of at least
two-thirds of the directors then in office who were directors prior to such
period. Notwithstanding the foregoing, an acquisition of the requisite
percentage of voting securities in connection with a public offering of
securities by the Company for the primary purpose of providing capital resources
to the Company shall not be considered a "Change in Control" for purposes of
this Section

                                       2
<PAGE>   3

4(d). "Qualified Position" is an executive officer position with the entity
surviving the Change in Control with substantially the same responsibilities as
those held by the Executive on the date of the Change in Control. Also,
notwithstanding the foregoing, if the Company determines that the amounts
payable to Executive under this employment agreement, when considered together
within the other amounts payable to Executive as a result of a Change in
Control, cause such payments to be treated as excess parachute payments within
the meaning of Section 280G of the Internal Revenue Code, the Company shall
reduce the amount payable to Executive under this Section 4(d) to an amount that
will not subject Executive to the imposition of tax under Section 4999 of the
Internal Revenue Code; provided, however, that this provision shall apply only
to payments to be made under this employment agreement and shall not cause the
reduction of any other payments to be made to Executive by the Company.

5. Notice of Breach. The Company and the Executive agree that, prior to the
termination of the Employment Period by reason of any breach of any provision of
the Agreement, the injured party will give the party in breach written notice,
specifying such breach and permitting the party in breach to cure such breach
within a period of thirty (30) days after receipt of such notice, except a
breach by Executive of provisions of Section 7 of this Agreement shall not have
a cure period.

6. Indemnification.

        (a) If, after the date of the commencement of the Employment Period, the
Executive is made a party or is threatened to be made a party to any action,
suit or proceeding, whether civil, criminal, administrative or investigative (a
"Proceeding"), by reason of the fact that he is or was a director or officer of
the Company or is or was serving at the request of the Company as a director,
officer, member, employee or agent of another corporation or partnership, joint
venture, trust or other enterprise, including service with respect to employee
benefit plans, whether or not the basis of such Proceeding is an alleged act or
failure to act in an official capacity as a director, officer, member, employee
or agent, he shall be indemnified and held harmless by the Company to the
fullest extent authorized by Delaware law, as the same exists or may hereafter
be amended, against all expense, liability and loss (including, without
limitation, attorney's fees, judgments, fines and amounts paid or to be paid in
settlement) reasonably incurred or suffered by the Executive in connection
herewith, including, without limitation, payment of expenses incurred in
defending a Proceeding prior to the final disposition of such Proceeding
(subject to receipt of an undertaking by the Executive to repay such amount if
it shall ultimately be determined that the Executive is not entitled to be
indemnified by the Company under Delaware law), and such indemnification shall
continue as to the Executive even if he has ceased to be a director, officer,
member, employee or agent of the Company or other enterprise and shall inure to
the benefit of his heirs, executors and administrators.

        (b) The right of indemnification and the payment of expenses incurred in
defending a Proceeding in advance of its final disposition conferring in this
Section 6 shall not be exclusive of any other right that the Executive may have
or hereafter may acquire under any statute, provision of the Certificate of
Incorporation or Bylaws of the Company, agreement, vote of shareholders or
disinterested directors or otherwise.

7. Trade Secrets of the Company, Patents and Inventions.

        (a) Except as required by the performance of the Executive's services to
the Company under the terms of this Agreement, neither the Executive or any of
his agents or representatives, shall, during his employment and for so long
afterwards as the pertinent information or data remain Confidential Information,
directly or indirectly, make use of, permit others to use, divulge, disseminate,
copy or otherwise disclose the Company's Confidential Information and/or
Inventions as defined by subparagraphs (i) and (ii), respectively.

        (i) "Confidential Information" means all information and material which
is proprietary to the Company, whether or not marked as "confidential" or
"proprietary" and which is disclosed to or obtained from the Company by the
Executive, which relates to the Company's past, present or future research,
development or business activities. Confidential Information is all information
or materials prepared by or for the Company and includes, without limitation,
all of the following: designs, drawings, specifications, techniques, models,
data, source code, object code, documentation, diagrams, flow charts, research,
development, processes, systems, methods, machinery, procedures, "know-how", new
product or new technology information, formulas, patents, patent applications,
product prototypes, product copies, cost of production, manufacturing,
developing or marketing techniques and materials, cost of production,
development or marketing time tables, customer lists, strategies related to
customers, suppliers or

                                       3
<PAGE>   4

personnel, contract forms, pricing policies and financial information, volumes
of sales, and other information of similar nature, whether or not reduced to
writing or other tangible form, and any other Trade Secrets, as defined by
subparagraph (iii), or non-public business information. Confidential Information
does not include any information which (1) was in the lawful and unrestricted
possession of the Executive prior to its disclosure by the Company, (2) is or
becomes generally available to the public by acts other than those of the
Executive after receiving it, or (3) has been received lawfully and in good
faith by the Executive from a third party who did not derive it from the
Company.

        (ii) "Inventions" means and all discoveries, concepts and ideas, whether
patentable or not, including but not limited to, processes, methods, formulas,
compositions, techniques, articles and machines, as well as improvements thereof
or "know-how" related thereto, relating at the time of conception or reduction
to practice to the business engaged in by the Company, or any actual or
anticipated research or development by the Company.

        (iii) "Trade Secrets" shall mean any scientific or technical data,
information, design, process, procedure, formula or improvement that is
commercially available to the Company and is not generally known in the
industry.

Materials involving Confidential Information and Inventions are the exclusive
property of the Company and shall not be removed under any circumstances from
the premises of the Company where the work is being carried on without prior
written consent of the Company except when consistent with the Company's normal
business practices.

        (b) The Executive agrees that any inventions made, conceived or
completed by him during the term of his employment, solely or jointly with
others, which are made with the Company's equipment, supplies, facilities or
Confidential Information, or which relate at the time of conception or reduction
to purpose of the invention to the business of the Company or the Company's
actual or demonstrably anticipated research and development, or which result
from any work performed by the Executive for the Company, shall be the sole and
exclusive property of the Company. The Executive promises to assign such
inventions to the Company. The Executive also agrees that the Company shall have
the right to keep such inventions as trade secrets, if the Company chooses. The
Executive agrees to assign to the Company the Executive's rights in any other
inventions where the Company is required to grant those rights to the United
States government or any agency thereof. In order to permit the Company to claim
rights to which it may be entitled, the Executive agrees to disclose to the
Company in confidence all inventions which the Executive makes arising out of
the Executive's employment and all patent applications filed by the Executive
within one year after the termination of his employment.

        (c) The Executive shall assist the Company in obtaining patents on all
inventions, designs, improvements and discoveries patentable by the Company in
the United States and in all foreign countries, and shall execute all documents
and do all things necessary to obtain letters patent, to vest the Company with
full and extensive title thereto, and to protect the same against infringement
by others.

8. Severability In the event that any provisions or portion of this Agreement
shall be determined to be invalid or unenforceable for any reason, in whole or
in part, the remaining provisions of this Agreement shall be unaffected thereby
and shall remain in full force and effect to the fullest extent permitted by
law.

9. Assignment. The rights of the Company (but not its obligations) under this
Agreement may, without the consent of the Executive, be assigned by the Company
to any parent, subsidiary, or a successor of the Company; provided that such
parent, subsidiary or successor acknowledges in writing that it is also bound by
the terms and obligations of this Agreement. Except as provided in the preceding
sentence, the Company may not assign all or any of its rights, duties or
obligations hereunder without the prior written consent of the Executive. Except
as provided for in Section 11 hereunder, the Executive may not assign all or any
of his rights, duties or obligations hereunder without the prior written consent
of the Company.

10. Survival of Certain Provisions. The covenants and agreements set forth in
Paragraph 7 of this Agreement shall survive termination of the Executive's
employment and/or this Agreement, and shall remain in full force and effect
regardless of the cause of such termination.

11. Beneficiaries; References. The Executive shall be entitled to select (and
change) a beneficiary or beneficiaries to receive any compensation or benefit
payable following the Executive's death, and may change such election, in either
case, by giving the Company written notice thereof. In the event of the
Executive's death or a judicial determination

                                       4
<PAGE>   5

of his incompetence, reference in this Agreement shall be deemed, where
appropriate, to refer to the Executive's beneficiary, estate, committee,
conservator or other legal representative.

12. Notices. All notices, requests, demands and other communications shall be in
writing and shall be defined to have been duly given if delivered or if mailed
by registered mail, postage prepaid;

        (a) If to the Executive, addressed to him at the following address as
may be changed in writing from time to time:

               Miklos B. Korodi
               6031 Cromdale Dr.
               Dublin, OH 43017

        (b) If to the Company, addressed to:

               Patriot Scientific Corporation
               10989 Via Frontera
               San Diego, CA  92127

or to such other address as any party may request by notice given as aforesaid
to the other parties hereto.

13. Titles and Headings. Titles and heading to paragraphs hereof are for the
purposes of references only and shall in no way limit, define or otherwise
effect the provisions hereof.

14. Governing Law. This Agreement is being executed and delivered and is
intended to be performed in the State of California, and shall be governed by
and construed in accordance with the laws of the State of California.

14.5 Arbitration/Sole Remedy for Breach of Agreement. In the event of any
dispute between the Company and the Executive concerning any aspect of the
employment relationship, including any disputes upon termination, all such
disputes shall be resolved by binding arbitration before a single neutral
arbitrator. The arbitrator shall be selected from the "American Arbitration
Association." The arbitration shall be held in San Diego, California. The
arbitrator is bound to rule only on whether or not there has been a violation of
the terms of this employment agreement and to render an award, if any, that is
consistent with the terms of this employment agreement. Neither party to this
employment agreement is entitled to any legal recourse or rights or remedies
other than those provided within this employment agreement. The Executive's sole
remedies, are those set forth in this employment agreement. The arbitrator shall
determine a "prevailing party" and shall award such prevailing party (i)
attorney's fees and costs and (ii) the prevailing party's portion of the costs
of arbitration.

In the event of any dispute between the Company and the Executive concerning any
ownership, use or disclosure of the Company's Confidential Information or other
intellectual property, the requirement of arbitration may be waived, at the
Company's sole election, and any such dispute may be brought before a court
having jurisdiction of the matter.

15. Counterparts. This Agreement shall be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. It shall not be necessary
in making proof of this Agreement to produce or account for more than one
original counterpart.

16. Entire Agreement. This Agreement contains the entire agreement of the
parties hereto and may be modified or amended only by a written instrument
executed by the parties hereto. Effective on the first day of the Employment
Period, any prior employment agreements between the Company and the Executive
shall terminate.

17. Good Faith. Each of the parties hereto agrees that he or it shall act in
good faith in all actions taken under this Agreement.

18. Waiver. No waiver of any of the provisions of this Agreement shall be deemed
to be or shall constitute a waiver of any other provision of the Agreement,
whether or not similar, nor shall any waiver constitute a continuing waiver.

                                       5
<PAGE>   6

No waiver of any provision of this Agreement shall be binding upon the parties
hereto unless it is executed in writing by the party making the waiver.

IN WITNESS WHEREOF, the parties hereto have executed the Agreement as of the day
and year first above written.

                             Patriot Scientific Corporation
                             By:

                             /S/  LOWELL W. GIFFHORN
                             ------------------------------
                             Lowell W. Giffhorn
                             Exec. VP and CFO

                             /MIKLOS B. KORODI
                             ------------------------------
                             Miklos B. Korodi
                             Executive

                                       6

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