Preview of our top selling Vice President (VP) Engineering Employment Agreement
Advanced Analogic Technologies - Chief Technical Officer/ Vice President, Engineering & Product Strategy Employment Offer Letter - Richard K. Williams
Exhibit 10.5
September 24, 1998
Richard K. Williams
10292 Norwich Ave
Cupertino CA 95014
Dear Richard:
On behalf of Advanced Analogic Technologies Incorporated (the " Company" ), I am pleased to offer you the position of Chief Technical Officer (CTO) and Vice President, Engineering & Product Strategy. Speaking for myself, as well as the Board Of Directors, we are very impressed with your credentials and we look forward to your future success in this position.
The terms of your position with the Company are as set forth below:
POSITION a. You will become the CTO and VP of Engineering & Product Strategy working out of the Company' s headquarters office in Sunnyvale, California. b. As Chief Technical Officer (CTO) you will have responsibility, along with the CEO, for defining and setting the technical and strategic direction of the Company, including establishing plans, budgets, procedures, and methods for developing Company proprietary technology, and in applying such technologies to the design and development of products. Strategic decisions of significance require approval of the board of directors (BOD). Other responsibilities of the CTO include participation in the Company' s BOD meetings, and to secure a strong intellectual property position for the Company. As CTO, you report both the CEO and to the Board of Directors.
c.
As Vice President (VP) of Engineering & Product Strategy, you will have overall responsibility for the definition of new products (working in conjunction with marketing), and to implement such products from design concept through production release. As VP, the design, CAD, process development and technology groups will
Advanced Analogic Technologies Inc. 1250 Oakmead Parkway, Suite 310, Sunnyvale CA 94086
(408) 524-9684 FAX (408) 524-9689 corporate@analogictech.com
report to you. You will report to the Company' s president.
d. You will, subject to BOD approval, take a position as a Board member of the Company, with full voting rights. e. You will write and produce a formal Company business plan detailing the strategy, technology, product, and business plans for the Company. f. In the capacity of Board meetings and other official Company actions, you will, subject to BOD approval, serve as Company Secretary. g. You will assume the interim role of managing the Company' s sales and marketing departments until a suitable director or VP can be hired, and will fill this role on a temporary basis whenever the position is vacant.
h. You agree to the best of your ability and experience that you will at all times loyally and conscientiously perform all of the duties and obligations required of and from you pursuant to the express and implicit terms hereof, and to the reasonable satisfaction of the Company.
START DATE
Subject to fulfillment of any conditions imposed by this letter agreement, you will commence this new position with the Company on October 1, 1998.
PROOF OF RIGHT TO WORK
For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or our employment relationship with you may be terminated.
COMPENSATION a. Base Salary You will be paid $120,000 on an annualized basis. Your salary will be payable monthly pursuant to the Company' s regular payroll policy (or in the same manner as other officers of the Company)
b.
Deferred Bonus As an officer of the Company accepting a salary below industry standards, and in compensation of your financial sacrifice, you will receive a quarterly bonus in the amount of $16,000 per quarter commencing upon your hire date, but whose payment is deferred to a later date when the Company' s financial strength is improved. The total deferred bonus accrues
Advanced Analogic Technologies Inc. 1250 Oakmead Parkway, Suite 310, Sunnyvale CA 94086
(408) 524-9684 FAX (408) 524-9689 corporate@analogictech.com
quarterly until such time that the Company; performs a public offering, is acquired, is liquidated, or becomes profitable, wherein immediately thereafter, the accrued balance will be paid to you in full. The first and last quarters for which the deferred bonus accrues will be paid pro rata. The total deferred bonus owed you will not be held in any special fund or escrow account. In the event of liquidation of the Company, the accrued balance owed you will take preference over debts owed creditors. If the Company remains in operation after the deferred balance is paid in full, you may, thereafter elect to continue to receive the bonus paid quarterly, or to convert the income into an equivalent-value regular salary paid monthly. The president of the Company reserves the right to release a portion of the accrued funds any time in advance of the mandatory payment conditions being met. Tax withholding occurs at the time that you receive payment.
c. Bonus You will be eligible to receive an incentive bonus based on the performance of the Company and on your individual contributions. The bonus plan for executives will be defined at a later date and is subject to BOD approval.
d. Annual Review Your base salary will be reviewed at the end of each calendar year as part of the Company' s normal salary review process.
e. Car Expenses Your car expenses will be covered in the exact amount as submitted in a monthly itemized expense report including car lease, insurance, car registration, regular scheduled maintenance, as well as reasonable gasoline and cleaning costs. If you elect not to submit a detailed expense report, a fixed car allowance of $ 800 /month will be paid, in lieu of a detailed expense report.
f. Conference Travel Aside from normal business travel expenses, the Company will pay for your attendance and participation in relevant symposia and conferences including travel, hotel, and conference registration expenses, as approved by the president. At a minimum, you will be reimbursed for attending two specific conferences every year, namely, the International Electron Device Meeting (IEDM) and the International Symposium on Power Semiconductor Devices & ICs (ISPSD), both relevant to the Company' s business.
g.
One-time Hire-On Bonus To partially compensate you for personal revenue loss from terminating your previous employment (bonuses, forgivable
Advanced Analogic Technologies Inc. 1250 Oakme...
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