Document:

ATCO Ex-10.9

EXHIBIT
10.9

 

AMERICAN
TECHNOLOGY CORPORATION

SUMMARY
SHEET

OF

DIRECTOR
AND EXECUTIVE OFFICER COMPENSATION

 

Compensation
of Directors

 

 

We
currently have no standard arrangements pursuant to which our directors are
compensated for services provided as a director or committee member, other than
in the form of reimbursement of expenses of attending directors’ or committee
meetings. Our directors have received in the past, and may receive in the
future, stock option grants. During fiscal 2005, the Compensation Committee will
be reevaluating our director compensation program. 

 

Compensation
of Executive Officers

The
executive officers of the Company serve at the discretion of the Board of
Directors. From time to time, the Compensation Committee of the Board of
Directors reviews and determines the salaries that are paid to the Company's
executive officers. The following table sets forth the annual salary rates for
the Company’s current executive officers as of the date of this report on Form
10-Q:

	
      Elwood
      G. Norris, Chairman
	
      $200,000

	
      Kalani
      Jones, President and Chief Operating Officer
	
      $220,000

	
      Carl
      Gruenler, Vice President of Government and Force Protection Systems
      Group
	
      $185,000

	
      Michael
      A. Russell, Chief Financial Officer
	
      $185,000

 

Employment
Arrangements with Current Executive Officers

 

 

The
following discussion summarizes the employment arrangements between us and our
current executive officers as of the date of this report on Form 10-Q, and any
options or bonuses granted since our last fiscal year end of September 30,
2004:

 

 

Mr.
Elwood G. Norris -
Effective September 1, 1997, we entered into a three year employment contract
with Mr. Norris, for his services as Chief Technology Officer. The three-year
term expired on August 31, 2000, but the agreement remains in effect until one
party gives thirty days advance notice of termination to the other. Mr. Norris
now serves as Chairman under the term of this agreement. The agreement, as
amended by the Compensation Committee, provides for a base salary of $16,667 per
month. The agreement provides that Mr. Norris will participate in bonus, benefit
and other incentives at the discretion of the Board of Directors. Mr. Norris has
agreed not to disclose trade secrets and has agreed to assign certain inventions
to us during employment. We are also obligated to pay Mr. Norris certain
royalties.

 

On
January 27, 2005, our Compensation Committee granted Mr. Norris an option to
purchase 70,000 shares of common stock at an exercise price of $8.96 per share.
The option has a five year term and vests quarterly over four years, subject to
continued employment and other conditions.

 

Mr.
Kalani Jones - We
entered into a letter agreement dated as of August 28, 2003, as amended on
October 20, 2003, under which Mr. Jones was employed as our Senior Vice
President of Operations. Mr. Jones has since been promoted to President and
Chief Operating Officer. The letter agreement provides for an annual base salary
of $140,000, and an annual performance bonus of up to 30% of base salary to be
determined by the Compensation Committee and the Board of Directors. Mr. Jones'
base salary was $200,000 per year at September 30, 2004.

 

-1-

On
January 27, 2005, our Compensation Committee granted Mr. Jones an option to
purchase 52,500 shares of common stock at an exercise price of $8.96 per share.
The option has a five year term and vests quarterly over four years, subject to
continued employment and other conditions. On that date, our Compensation
Committee also increased Mr. Jones’ current annual base salary to $220,000, and
awarded Mr. Jones a $50,000 bonus. Mr. Jones' employment is terminable at-will
by us or by Mr. Jones for any reason, with or without notice.

 

Mr.
Carl Gruenler - We
entered into a letter agreement with Mr. Gruenler, which was amended on July 30,
2003, under which Mr. Gruenler was employed as our Vice President of Military
Operations. Mr. Gruenler is currently our Vice President of Government and Force
Protection Systems Group. The letter agreement provides for an annual base
salary of $110,000, and an annual performance bonus of up to 10% of base salary
to be determined by the Compensation Committee and the Board of Directors. Mr.
Gruenler’s current annual base salary is $185,000. On November 16, 2004, our
Compensation Committee granted Mr. Gruenler an option to purchase 75,000 shares
of common stock at an exercise price of $6.70 per share. The option has a five
year term and vests quarterly over four years, subject to continued employment
and other conditions. Mr. Gruenler's employment is terminable at-will by us or
by Mr. Gruenler for any reason, with or without notice.

 

 

Mr.
Michael Russell - We
entered into a letter agreement dated June 15, 2004, under which Mr. Russell was
employed as our Chief Financial Officer. The letter agreement provides for an
annual base salary of $185,000, and an annual performance bonus of up to 25% of
base salary to be determined by the Compensation Committee and the Board of
Directors. Mr. Russell's employment is terminable at-will by us or by Mr.
Russell for any reason, with or without notice.

 

-2-<PAGE>
EXHIBIT 10.1

                                AMENDMENT NO. 2
                                     TO THE
                      RETAIL PRO SOFTWARE LICENSE AGREEMENT

This is Amendment Number 2 and Attachment 1, effective as of January 5, 2005
(the " Amendment") to the Retail Pro Software License Agreement, dated as of
December 6, 2002 (the "Agreement") between Intuit Inc., a Delaware corporation
("Intuit"), and Retail Technologies International, Inc., a California
corporation ("RTI").

                                    RECITALS

A.       The Agreement provides that certain licenses granted by Intuit to RTI
         will expire on December 6, 2005 and December 6, 2006.
B.       The parties now wish to extend the term of those certain license rights
         detailed in this Amendment by one (1) year along with all of the
         rights, restrictions, provisions and royalties that pertain to those
         license rights.
C.       The parties agree that, unless defined herein, defined terms will have
         the meaning given them in the Agreement.

NOW, THEREFORE, Intuit and RTI acknowledge and agree to amend the Agreement as
follows:

1.       Section 1.5 is modified as follows:

"EXISTING RTI CUSTOMER" means any person or entity to whom RTI, its Affiliates,
or any Reseller (as defined in SECTION 2.3(a)) has first licensed, sold, or
distributed copies of the Retail Pro Software (i) prior to the Effective Date,
or (ii) between the Effective Date of this Agreement and December 31, 2006."

2.       The third sentence in Section 2.2(a)(i) is modified as follows:

"The license granted in this SECTION 2.2(a)(i) will automatically terminate upon
the fifth anniversary of the Effective Date."

3.       The last sentence in Section 2.3(a) is modified as follows:

"This license will automatically terminate upon the fourth anniversary of the
Effective Date."

4.       The second sentence in Section 2.3(b) is modified as follows:

"The license granted in this SECTION 2.3(b) will be effective only from the
Effective Date through the fifth anniversary of the Effective Date, after which
such license will automatically terminate."

<PAGE>

5.       Section 4.1(b) is modified as follows:

"FROM SIX MONTH ANNIVERSARY OF THE MANUFACTURING RELEASE THROUGH FOURTH
ANNIVERSARY OF THE EFFECTIVE DATE. If at any time after the six month
anniversary of the Manufacturing Release and before the fourth anniversary of
the Effective Date, RTI, any of its Affiliates, or a Reseller sells, licenses,
or distributes a copy of the Retail Pro Software to any end user who purchases
three (3) or fewer Inventories, none of which have ten (10) or more Seats and
all of which are located in the Restricted Territory, then for each copy of the
Retail Pro Software distributed to any such end user, RTI will pay to Intuit a
royalty of seventy-five percent (75%) of revenues received by RTI from the sale
of such copy less sales, use and excise taxes, amounts credited for returns, and
reasonable shipping charges (if any). Notwithstanding the foregoing, if RTI
reasonably believes or knows that a user that purchases three (3) or fewer
Inventories has more than three (3) sites (i.e., is capable of using more than
three (3) Inventories), then RTI will not be obligated to pay the royalty
described in this SECTION 4.1 (B) with respect to such copies purchased by such
user. If during the period set forth above an end user purchases more than three
Inventories or more than ten (10) Seats, and RTI knows or should know that such
end user has three or fewer retail sales locations or fewer than ten (10) Seats
at the time of such purchase, then the royalty set forth in this SECTION 4.1(B)
will apply.

6.       Exhibit A is modified as detailed in Attachment 1 to this Amendment.

7.       Exhibit B, Sections (i) and (ii) are modified as follows:

"(i) The Reseller will not sell, license, distribute, or otherwise provide the
Retail Pro Software to anyone other than Existing RTI Customers after December
31, 2006 unless otherwise approved by Intuit;

(ii) The Reseller will not sell, license, distribute, or otherwise provide the
Retail Pro Software to anyone after December 31, 2007 unless otherwise approved
by Intuit;"

8.       Other Terms and Conditions

All other terms and conditions of the Agreement, not specifically modified
herein, shall remain in full force and effect.

<PAGE>

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by
their duly authorized representatives.

INTUIT INC.                                   RETAIL TECHNOLOGIES INTERNATIONAL

BY: _______________________________           BY: ______________________________

PRINT NAME: _______________________           PRINT NAME: ______________________

TITLE: ____________________________           TITLE: ___________________________

<PAGE>

                                  ATTACHMENT 1
                                  ------------

                                    EXHIBIT A
                                    ---------

                                     NOTICES
                                     -------

Unless otherwise stated, all notices required under this Agreement will be in
writing and will be considered given (i) when delivered personally, (ii) five
(5) days after mailing, when sent certified, registered or express mail, return
receipt requested and postage prepaid, (iii) one (1) business day after
dispatch, when sent via a commercial overnight carrier, fees prepaid, or (iv)
upon delivery when sent by facsimile transmission confirmed by first class mail.
All such notices will be addressed to RTI or Intuit as specified in the
applicable Legal Notices box (unless changed by notice):

<TABLE>
<S>     <C>
RTI CONTACT INFORMATION: RTI will notify Intuit in writing of any changes:
-------------------------------- ------------------------------ ------------------------------
BUSINESS CONTACT/                CUSTOMER SERVICE               LEGAL NOTICES
RELATIONSHIP MANAGER             Address:                       Address: 19800 MacArthur
Address:                         Retail Technologies            Boulevard
Retail Technologies              International                  Irvine, CA  92612
International                    4800 Manzanita Ave.            Attn: Jeff Lambert
4800 Manzanita Ave.              Carmichael, CA  95608          Phone: 949 476-2212
Carmichael, CA  95608            Name:  Jeff Boone              Email:
Name:  Mike Tomczak              Phone: 916 483-1656            jlambert@islandpacific.com
Phone: 916 483-1656              Fax:   916 481-6903
Fax:   916 481-6903
-------------------------------- ------------------------------ ------------------------------

INTUIT CONTACT INFORMATION: Intuit will notify RTI in writing of any changes:
-------------------------------- ------------------------------ ------------------------------ ---------------------------
BUSINESS CONTACT/                MAINTENANCE AND SUPPORT        ACCOUNTS RECEIVABLE AND        LEGAL NOTICES
RELATIONSHIP MANAGER                                            REPORTING
Address:  Intuit Inc.,           Address:  Intuit Inc.,         Address:  Intuit Inc.,         Address: Intuit Inc.
2500 Garcia Avenue,              2500 Garcia Avenue,            2500 Garcia Avenue,            2700 Coast Avenue
Mountain View, CA  94043         Mountain View, CA  94043       Mountain View, CA  94043       Mountain View, CA  94943
Name:  Steven Aldrich            Name:  Emily Mencken           Name:  George Coughlin         Attn:  Legal Department
Phone: (650) 944-5629            Phone: (650) 944-3241          Phone: (650) 944-3567          Phone: (650) 944-6657
                                                                                               Fax:   (650) 944-5656
-------------------------------- ------------------------------ ------------------------------ ---------------------------
</TABLE>

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