Employment Agreement

Employment Agreement



This   Employment   Agreement   ("Agreement")   is   made   and   entered   into   on   this   5th   day   of

December  , 2012 by and between Abakan Inc., of 2665 Bayshore Drive, Suite 450, Miami, Florida 33133

USA (the "Company"), and David G. Charbonneau (hereinafter, the "Executive").

W I T N E S S E T H:

WHEREAS, the Executive is to be employed as Chief Financial Officer and Principal Accounting

Officer of the Company.

WHEREAS,  the  Executive  possesses  intimate  knowledge  of  the  business  and  affairs  of  the

Company, its policies, methods and personnel;

WHEREAS, the Board of Directors of the Company recognizes that the Executive will contribute

to  the  growth  and  success  of  the  Company,  and  desires  to  assure  the  Company  of  the  Executive's

continued employment and to compensate him therefor;

WHEREAS,  the  Board  has  determined  that  this  Agreement  will  reinforce  and  encourage  the

Executive's continued attention and dedication to the Company;

WHEREAS,  the Executive is  willing to make  his  services available to the  Company on  the terms

and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, and

for   other   good   and   valuable   consideration,   the   receipt   and   sufficiency   of   which   are   mutually

acknowledged, the Company and the Executive hereby agree as follows:

1.     Definitions.

When used in this Agreement, the following terms shall have the following meanings:


Accrued Obligations” means:


all  accrued  but  unpaid  Base  Salary  through  the  end  of  the  Term  of



any   unpaid   or   un-reimbursed   expenses   incurred   in   accordance   with

Company policy, including amounts due under  Article 5(a)  hereof, to the extent incurred during the Term

of Employment; and


those  vested  benefits  provided  under  the  Company’s  employee  benefit

plans,   stock   options   plans,   deferred   compensation   plans,   programs   or   arrangements   in   which   the

Executive participates, in accordance with the terms thereof.


any   earned   unpaid   Bonus   or   Retention   Award   in   respect   to   any

completed fiscal year that has ended on or prior to the end of the Term of Employment; and

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Employment AgreementDavid G. Charbonneau


rights  to  indemnification  by  virtue  of  the  Executive’s  position  as  an

officer  or  director  of  the  Company  or  its  subsidiaries  and  the  benefits  under  any  directors’  and  officers’

liability insurance policy maintained by the Company, in accordance with its terms thereof.


Affiliate  means  any  entity  that  controls,  is  controlled  by,  or  is  under  common

control with, the Company.


Base  Salary”  means  the  salary  provided  for  in  Article   4(a)  hereof  or  any

increased salary granted to Executive pursuant to Article 4(a) hereof.


Beneficial  Ownership  shall  have  the  meaning  ascribed  to  such  term  in  Rule

13d-3 promulgated under the Securities Exchange Act of 1934, as amended.


Board” means the Board of Directors of the Company.


Bonus”  means  any  bonus  payable  to  the  Executive  pursuant  to  Article  4(b)



Bonus   Period   means   the   period   for   which   a   Bonus   is   payable.     Unless

otherwise specified by the Board, the Bonus Period shall be the fiscal year of the Company.


Cause” means:


a  conviction  of  the  Executive,  or  a  plea  of  nolo  contendere,  to  a  felony

involving moral turpitude; or


willful  misconduct  or  gross  negligence  by  the  Executive  resulting,  in

either case, in material economic harm to the Company or any Related Entities; or


a  willful  continued  failure  by  the  Executive  to  carry  out  the  reasonable

and lawful directions of the Board; or


fraud,  embezzlement,  theft  or  dishonesty  of  a  material  nature  by  the

Executive  against  the  Company  or  any  Affiliate  or  Related  Entity,  or  a  willful  material  violation  by  the

Executive  of  a  policy  or  procedure  of  the  Company  or  any  Affiliate  or  Related  Entity,  resulting,  in  any

case, in material economic harm to the Company or any Affiliate or Related Entity; or


Executive’s  failure  to  fulfill  those  functions  currently  fulfilled  by  a

consultant  in  respect  to  the  preparation  and  compilation  of  quarterly  and  annual  financial  statements  and

notes  on  or  before  the  preparation  of  the  Company’s  Form  10-Q  for  the  period  ended  February  29,  2013;

or  commencing  on  February  29,  2013,  the  Company’s  quarterly  and  annual  statements  requiring  more

than  two  extensions  on  Form  12b-25  over  any  rolling  three  (3)  year  period  if  the  Executive’s  conduct

directly caused the need for such extensions; or


a willful material breach by the Executive of this Agreement.

An act or failure to act shall not be “willful” if (i) done by the Executive in good faith or (ii) the Executive

reasonably believed  that  such  action  or  inaction  was  in  the  best  interests  of  the  Company and  the  Related


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Employment AgreementDavid G. Charbonneau


Change in Control” means:


The  acquisition  by  any  Person  of  Beneficial  Ownership  of  more  than

fifty  percent  (50%)  of   the  then  outstanding  shares  of  common  stock  of  the  Company  (the  “Outstanding

Company  Common  Stock”)  (the  foregoing  Beneficial  Ownership  hereinafter  being  referred  to  as  a

"Controlling  Interest");  provided,  however,  that  for  purposes  of  this  definition,  the  following  acquisitions

shall  not  constitute  or  result  in  a  Change  of  Control:  (v)  any  acquisition  directly  from  the  Company;  (w)

any  acquisition  by  the  Company;  (x)  any  acquisition  by  any  person  that  as  of  the  Commencement  Date

owns Beneficial Ownership of a Controlling Interest; (y) any acquisition by any employee benefit plan (or

related  trust)  sponsored  or  maintained  by  the  Company  or  any  subsidiary  of  the  Company;  or  (z)  any

acquisition  by  any  corporation  pursuant  to  a  transaction  which  complies  with  clauses  (A),  (B)  and  (C)  of

subsection (iii) below; or


During any period of two (2) consecutive years (not including any period

prior  to the Commencement  Date) individuals who constitute the Board on the Commencement  Date (the

“Incumbent  Board”)  cease  for  any  reason  to  constitute  at  least  a  majority  of  the  Board;  provided,

however, that any individual  becoming a director  subsequent  to the Commencement  Date whose election,

or  nomination  for  election  by  the  Company’s  shareholders,  was  approved  by  a  vote  of  at  least  a  majority

of  the  directors then  comprising the  Incumbent  Board shall  be  considered  as though  such  individual  were

a  member  of  the  Incumbent  Board,  but  excluding,  for  this  purpose,  any  such  individual  whose  initial

assumption  of  office  occurs  as  a  result  of  an  actual  or  threatened  election  contest  with  respect  to  the

election  or  removal  of  directors  or  other  actual  or  threatened  solicitation  of  proxies  or  consents  by  or  on

behalf of a Person other than the Board; or


Consummation  of  a  reorganization,  merger,  statutory  share  exchange  or

consolidation  or  similar  corporate  transaction  involving  the  Company  or  any  of  its  subsidiaries,  a  sale  or

other  disposition  of  all  or  substantially  all  of  the  assets  of  the  Company,  or  the  acquisition  of  assets  or

stock  of  another  entity  by  the  Company  or  any  of  its  subsidiaries  (each  a  “Business  Combination”),  in

each case, unless, following such Business Combination, (A)  all or substantially all of the individuals and

entities  who  were  the  Beneficial  Owners,  respectively,  of  the  Outstanding  Company  Common  Stock  and

Outstanding  Company  Voting  Securities  immediately  prior  to  such  Business  Combination  beneficially

own, directly or indirectly, more than fifty percent (50%) of the then outstanding shares of common stock

and  the  combined  voting  power  of  the  then  outstanding  voting  securities  entitled  to  vote  generally  in  the

election  of  directors,  as  the  case  may  be,  of  the  corporation  resulting  from  such  Business  Combination

(including,  without  limitation,  a  corporation  which  as  a  result  of  such  transaction  owns  the  Company  or

all  or  substantially  all  of  the  Company’s  assets  either  directly  or  through  one  or  more  subsidiaries)  in

substantially the same proportions as their ownership, immediately prior to such Business Combination of

the  Outstanding  Company  Common  Stock  and  Outstanding  Company  Voting  Securities,  as  the  case  may

be,  (B)  no  Person  (excluding  any  employee  benefit  plan  (or  related  trust)  of  the  Company  or  such

corporation  resulting  from  such  Business  Combination  beneficially  owns,  directly  or  indirectly,  twenty

percent  (20%)  or  more  of,  respectively,  the  then  outstanding  shares  of  common  stock  of  the  corporation

resulting  from  such  Business  Combination  or  any  Person  that  as  of  the  Commencement  Date  owns

Beneficial  Ownership  of  a  Controlling  Interest  beneficially  owns,  directly  or  indirectly,  more  than  fifty

percent  (50%)  of  the  then  outstanding  shares  of  common  stock  of  the  corporation  resulting  from  such

Business  Combination  or  the  combined  voting  power  of  the  then  outstanding  voting  securities  of  such

corporation except to the extent that such ownership existed prior to the Business Combination, and (C) at

least  a majority of  the members of the Board of  Directors of  the corporation resulting from such Business

Combination were  members  of  the  Incumbent  Board at  the time  of  the  execution of  the initial  agreement,

or of the action of the Board, providing for such Business Combination; or

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approval  by  the  shareholders  of  the  Company  of  a  complete  liquidation

or dissolution of the Company.


COBRA   means   the   Consolidated   Omnibus   Budget   Reconciliation   Act   of

1985, as amended from time to time.


Code” means the Internal Revenue Code of 1986, as amended.


Commencement Date” means December 10, 2012.


Common  Stock  means  the  common  stock  of  the  Company,  par  value  $0.0001

per share.


Competitive  Activity  means  an  activity  that  is  in  material  or  direct  competition

with  the  Company  in  any  of  the  States  within  the  United  States,  or  countries  within  the  world,  in  which

the  Company  conducts  business  with  respect  to  a  business  in  which  the  Company  engaged  while  the

Executive was employed by the Company.


Confidential  Information  means  all  trade  secrets  and  information  disclosed  to

the  Executive  or  known  by  the  Executive  as  a  consequence  of  or  through  the  unique  position  of  his

employment  with  the  Company  or  any  Related  Entity  (including  information  conceived,  originated,

discovered  or  developed  by  the  Executive  and  information  acquired  by  the  Company  or  any  Related

Entity  from  others)  prior  to  or  after  the  date  hereof,  and  not  generally  or  publicly  known  (other  than  as  a

result  of  unauthorized  disclosure  by  the  Executive),  about  the  Company  or  any  Related  Entity  or  its



Deferred  Compensation”  means  any  accrual  of  compensation  pursuant  to  a

Related Entity’s Non-qualified Defined Contribution Plan.


Disability  means  the  Executive’s  inability,  or  failure,  to  perform  the  essential

functions  of  his  position,  with  or  without  reasonable  accommodation,  for  any  period  of  three  months  or

more  in  any  12  month  period,  by  reason  of  any  medically  determinable  physical  or  mental  impairment

which can be expected to result in death or can be expected to last for a continuous period of not less than

12 months.


Equity Awards” means any stock options, restricted stock, restricted stock units,

stock  appreciation  rights,  phantom  stock  or  other  equity  based  awards  granted  by  the  Company  or  any  of

its Affiliates to the Executive.


Excise  Tax”  means  any  excise  tax  imposed  by  Section  4999  of  the  Code,

together  with  any  interest  and  penalties  imposed  with  respect  thereto,  or  any  interest  or  penalties  are

incurred by the Executive with respect to any such excise tax.


Expiration  Date  means  the  date  on  which the Term  of  Employment,  including

any renewals thereof under Article 3(b), shall expire.

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Employment AgreementDavid G. Charbonneau


Good Reason” means:


the assignment to the Executive of any duties inconsistent in any material

respect with the Executive's position (including status, titles and reporting requirements), authority, duties

or responsibilities as contemplated by Article 2(b) of this Agreement, or any other action by the Company

that  results  in  a  material  diminution  in  such  position,  authority,  duties  or  responsibilities,  excluding  for

this  purpose  an isolated,   insubstantial  and inadvertent  action  not  taken  in  bad  faith  which  is  remedied  by

the Company promptly after receipt of notice thereof given by the Executive;


any  material  failure  by  the  Company  to  comply  with  any  of  the  material

provisions of  this Agreement, other than an isolated, insubstantial  and inadvertent  failure not  occurring in

bad   faith  that   is  remedied   by  the   Company  promptly  after   receipt   of   notice   thereof   given   by  the



any  instruction  by  the  Company  to  act  in  any  manner  that  is  unlawful  or

contrary   to   Securities   and   Exchange   Commission   rules   and   regulations,   other   than   an   isolated,

insubstantial  or  inadvertent  instruction  not  given  in  bad  faith  that  is  remedied  by  the  Company  promptly

after receipt of notice thereof given by the Executive; and


any  termination  by  the  Company  of  the  Executive’s  employment  other

than for Cause pursuant to Article 6(b), or by reason of the Executive’s Disability pursuant to Article 6(c)

of this Agreement, prior to the Expiration Date


Group  shall  have  the  meaning  ascribed  to  such  term  in  Section  13(d)  of  the

Securities Exchange Act of 1934.


Initial Term” means December 10, 2012 to December 31, 2015.


“Non-qualified   Defined   Contribution   Plan”   means   the   2012   Non-Qualified

Contribution  Plan  adopted  by  the  board  of  directors  of  a  Related  Entity,  as  amended  from  time  to  time,

and any successor thereto.


Person  shall  have  the  meaning  ascribed  to  such  term  in  Section  3(a)(9)  of  the

Securities Exchange Act of 1934 and used in Sections 13(d) and 14(d) thereof.


“Related    Entity”    means    any    subsidiary,    and    any    business,    corporation,

partnership,  limited  liability  company  or  other  entity  designated  by  Board  in  which  the  Company  or  a

subsidiary holds a substantial ownership interest.


Restricted   Period   shall   be   the   Term   of   Employment   and   if   the   Term   of

Employment  is  terminated  for  any  reason  other  than  by  the  Company  for  Cause  or  by  the  Executive  for

Good   Reason,   the   eighteen   (18)   month   period   immediately   following   termination   of   the   Term   of

Employment.    Notwithstanding  the  foregoing,  the  Restricted  Period  shall  end  in  the  event  that  (i)  the

Company  fails  to  make  any  payments  or  provide  any  Benefits  required  by  Article  6  hereof  with  15  days

of  written  notice  from  the  Executive  of  such  failure  or  (ii)  the  Company  no  longer  has  the  rights  to  the

confidential information.

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Employment AgreementDavid G. Charbonneau


“Severance  Amount  shall  be  in  the  event  of  termination  of  the  Executive’s

employment  by the  Company without  Cause,  or  by the  Executive  with  Good  Reason,  an  amount  equal  to

the following based on when the Termination Date occurs after the Commencement Date: a) 0-12 months

-$100,000,  b)  13-24  months  -  $150,000  and  c)  over  24  months  - $200,000.  The  total  amount  shall  be  due

within one month of the effective date of the Termination Date, a minimum of $100,000 which is payable

in cash and the remainder up to an aggregate of $100,000 is payable in shares of the Company’s Common



Severance  Term”  means  the  one  (1)  year  period  following  the  Termination



Stock  Option  means  a  right  granted  to  the  Executive  under  Article  5(d)  hereof

to purchase Common Stock under the Company’s Stock Option Plan.


“Stock  Option  Plan”  means  the  2009  Stock  Option  Plan  Directors  adopted  by

the Company on December 14, 2009, as amended from time to time, and any successor plan thereto.


Term  of  Employment  means  the  period  during  which  the  Executive  shall  be

employed by the Company pursuant to the terms of this Agreement.


“Termination Date” means the date on which Executive’s employment ends.




Employment and Term.

The Company hereby agrees to employ the Executive and the Executive hereby agrees to

serve the Company during the Term of Employment on the terms and conditions set forth herein.


Duties of Executive.

During  the  Term  of  Employment,  the  Executive  shall  be  employed  and  serve  as  Chief

Financial  Officer  and  Principal  Accounting  Officer  of  the  Company,  and  shall  have  such  duties  typically

associated  with  such  title,  including,  without  limitation,  coordinating  the  day  to  day  management  of  the

Company   with   its   Chief   Executive   Officer,   responsibility   for   the   compilation   and   review   of   the

Company’s  quarterly  and  annual  financial  statements  and  reporting  to  the  Chief  Executive,  Board,  and

audit committee as necessary. The Executive shall faithfully and diligently perform all services as may be

reasonably  assigned  to  him  for  his  position  by  the  Board  of  the  Company,  and  shall  exercise  such  power

and  authority  as  may  from  time  to  time  be  delegated  to  him  by  the  Board. The  Executive  shall  devote  no

less  than  100%  of  his  business  time,  attention  and  efforts  to  the  performance  of  his  duties  under  this

Agreement,  render  such  services  to  the  best  of  his  ability,  and  use  his  reasonable  best  efforts  to  promote

the  interests  of  the  Company.   The  Executive  shall  not  engage  in  any  other  business  or  occupation,  other

than  as  declared  and  existing  at  the  Commencement  Date  during  the  Term  of  Employment,  including,

without  limitation,  any  activity  that  (i)  conflicts  with  the  interests  of  the  Company  or  its  subsidiaries,  (ii)

interferes  with  the  proper  and  efficient  performance  of  his  duties for  the  Company,  or  (iii)  interferes  with

the  exercise  of  his  judgment  in  the  Company’s  best  interests  and  shall  cease  any  other  business  or

occupation   so   disclosed   or   existing   at   the   Commencement   Date   no   later   than   January   31,   2013.

Notwithstanding  the  foregoing  or  any  other  provision  of  this  Agreement,  it  shall  not  be  a  breach  or

violation  of  this  Agreement  for  the  Executive  to  (x)  serve  on  civic  or  charitable  boards  or  committees,  or

(y)  deliver  lectures,  or  fulfill  speaking  engagements,  (z)  advise  companies,  so  long  as  such  activities  do

not  interfere  with  or  detract  from  the  performance  of  the  Executive’s  responsibilities  to  the  Company  in

accordance with this Agreement.

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Employment AgreementDavid G. Charbonneau




Initial Term.

The  initial  Term  of  Employment  under  this  Agreement,  and  the  employment  of  the

Executive  hereunder,  shall  commence  on  the  Commencement  Date  and  shall  expire  on  December  31,

2015, unless sooner terminated in accordance with Article 6 hereof.


Renewal Terms.

At  the  end  of  the  Initial  Term,  the  Term  of  Employment  automatically  shall  renew  for

two  (2)  successive  one  (1)  year  terms  (subject  to  earlier  termination  as  provided  in  Section  6  hereof),

unless the Company or  the Executive delivers written notice to the other  at  least  three (3)  months prior  to

the Expiration Date of its or his election not to renew the Term of Employment.




Base Salary.

The  Executive  shall  earn  a  Base  Salary  at  the  annual  rate  of  $192,000  ($16,000  per  month)  during  the

Term  of  Employment,  with  such  Base  Salary  payable  in  installments  consistent  with  the  Company's

normal  payroll  schedule,  subject  to  applicable  withholding  and  other  taxes.  Until  Executive  completes  a

detailed financial projection model which can be utilized by Company for credit and external funding, the

Company  shall  pay  in  cash  $12,000  per  month  of  the  Base  Salary.  The  difference  of  $4,000  per  month

shall  accrue  and  be  payable  upon  the  completion  of  the  above  mentioned  model.  Upon  the  accrual  being

paid,  the  full  Base  Salary  shall  be  remitted  on  a  normal  payroll  schedule.  The  Base  Salary  shall  increase

to  $18,000  per  month,  without  Board  approval,  upon  the  Company  completing  an  accumulative  debt  or

equity  financing,  not  including  any  amounts  raised  by  a  Related  Entity,  of  no  less  than  $20,000,000.  The

Base  Salary  shall  be  reviewed,  at  least  annually,  for  merit  increases  and  may,  by  action  and  in  the

discretion  of  the  Compensation  Committee  of  the  Board,  be  increased  at  any  time  or  from  time  to  time,

but  may  not  be  decreased  from  the  then  current  Base  Salary.  Once  the  Company  has  achieved  annual

revenues  of  no  less  than  $50,000,000  it  is  agreed  that  the  Executive  may  request  that  the  Compensation

Committee   retain   a   firm   specializing   in   corporate   compensation   to   make   Base   Salary   and   Bonus

recommendations  in  the  specific  case  of  the  Executive  and  that  the  Compensation  Committee  will  act  on

such recommendations.




The   Executive   shall   receive   such   additional   bonuses,   if   any,   as   the

Compensation Committee and the Board of Directors may in its sole and absolute discretion determine.


Any  Bonus  payable  pursuant  to  this  Article  4(b)  shall  be  paid  by  the

Company to the Executive within 2 ½ months after the end of the Bonus Period for which it is payable.


Deferred Compensation

The  Executive  shall  earn  such  deferred  compensation,  if  any,  in  an  amount  to  be  contributed  by  the

Company  at  20%  percent  of  the  then  current  Base  Salary,  pursuant  to  a  Related  Entity’s  Non-Qualified

Defined Contribution Plan and shall be vested according to the schedule below:

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Employment AgreementDavid G. Charbonneau

    Less than two years subsequent to the Commencement Date – 0%

    More than two years subsequent to the Commencement Date – 20%

    More than three years subsequent to the Commencement Date – 40%

    More than four years subsequent to the Commencement Date – 70%

    Five years subsequent to the Commencement Date – 100%


Stock Options.


The  Executive  shall  be  granted  125,000  Stock Options,  from the  Abakan

Inc.  2009  Stock  Option  Plan,  at  an  exercise  price  of  $2.61  per  share,  which  Stock  Options  shall  vest  as

follows:  41,667  options  on  December  9,  2013,  41,666  options  on  December  9,  2014,  and  41,666  options

on December 9, 2015, subject to the terms and conditions of the Stock Option Agreement (attached hereto

as Appendix A) subject to all terms and conditions of the Stock Option Plan and all rules or regulations of

the  Securities  and  Exchange  Commission  applicable  thereto.   Future  stock  option  grants,  and  the  terms

and  conditions  thereof,  shall  be  determined  by  the  Compensation  Committee  and  the  Board  of  Directors,

or  by  the  Board  in  its  discretion  and  pursuant  to  the  Stock  Option  Plan  or  the  plan  or  arrangement

pursuant to which they are granted.


Notwithstanding  Executive’s  resignation  as  a  Director  and  concomitant

with  assuming  the  position  as  Executive  with  the  Company,  the  Executive  shall  retain  those  Stock

Options granted on June 15, 2012 in connection with the Board of  Directors Compensation Agreement  of

even  date   which  Stock  Options  shall  continue  to  vest  according  to  said  Stock  Option  Agreement  subject

to  all  terms  and  conditions  of  the  Stock  Option  Plan  and  all  rules  or  regulations  of  the  Securities  and

Exchange Commission applicable thereto.


Retention Award

The  Executive  shall  earn  a  Retention  Award  due  and  payable  within  30  days  of  each  annual  anniversary

over the Term of Employment equal to $20,000 in the Company’s Common Stock valued as of the date of

each anniversary.


Expense Reimbursement and Other Benefits


Reimbursement of Expenses.

Upon  the  submission  of  proper  substantiation  by the  Executive,  and  subject  to  such  rules

and  guidelines  as  the  Company  may  from  time  to  time  adopt  with  respect  to  the  reimbursement  of

expenses  of  executive  personnel,  the  Company  shall  reimburse  the  Executive  for  all  reasonable  expenses

actually  paid  or  incurred  by  the  Executive  in  the  course  of  and  pursuant  to  the  business  of  the  Company.

Executive shall  be reimbursed for  continuing education classes relating to accounting, up to $4,500 in the

first  year  and $1,500 per year  thereafter  during the Term of  Employment.   The Executive shall account to

the  Company  in  writing  for  all  expenses  for  which  reimbursement  is  sought  and  shall  supply  to  the

Company   copies   of   all   relevant   invoices,   receipts   or   other   evidence   reasonably   requested   by   the


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Employment AgreementDavid G. Charbonneau


Compensation/Benefit Programs.


During   the   Term   of   Employment,   the   Executive   shall   be   entitled   to

participate  in  all  medical,  dental,  hospitalization,  accidental  death  and  dismemberment,  disability,  travel

and  life  insurance  plans,  and  any  and  all  other  plans  as  are  presently  and  hereinafter  offered  by  the

Company  or  a  Related  Entity  to  its  executive  personnel,  including  savings,  pension,  profit-sharing  and

deferred  compensation  plans,  subject  to  the  general  eligibility  and  participation  provisions  set  forth  in

such  plans.  During  the  Term  of  Employment  the  Company  shall  provide  through  a  Related  Entity  health

insurance,  which  shall  include  medical,  dental,  vision  and  prescription  coverage  for  Executive  and  his

immediate family on the terms and conditions of  the Related Entity’s existing health insurance. However,

in  the  event  the  Company  is  not  able  to  enroll  Executive  in  the  Company’s  benefit  plans  as  outlined  in

this  paragraph,  Company  shall  reimburse  to  Executive  the  cost  of  obtaining  such  benefits  through  an

individual  medical  and dental  family plan  as  reasonably selected  by Executive  to the  extent  that  said  cost

to the Company is no more than $1,400 per month over the Term of Employment.

(ii)      During  the  Term  of  Employment  and,  if  applicable  on  the  Termination

Date,  until  the  expiration  of  the  Severance  Term,  the  Company  or  Related  Entity  shall  also  provide  term

life insurance up to $500,000 payable to Executive’s designee; if such plan requires medical underwriting

Executive  agrees  to  comply  with  the  insurance  carriers  underwriting  guidelines  in  order  to  obtain  the

benefit.  Unless  Executive  qualifies  at  the  Standard  Health  Risk  Class  or  better  then  neither  the  Company

nor the Related Entity shall be liable to provide said life insurance benefit.

(iii)     During  the  Term  of  Employment  and,  if  applicable  on  the  Termination

Date,   until   the   expiration   of   the   Severance   Term,   the   Company   or   Related   Entity   shall   make   all

reasonable  efforts  to  provide  an  industry standard  Non-Cancellable  and  Guaranteed  Renewable executive

long-term disability insurance policy, paying benefits equal to or greater than 66 2/3 % of the Executive’s

Base   Salary   as   of   the   date   of   this   Agreement,   with   policy   language   protecting   the   Executive   for

disabilities  in  his  “Own  Occupation”  and  providing  benefits  until  at  least  Age  65.  Future  increases  to  the

benefit  limit  will  be  subject  to  the  disability  insurance  provider’s  maximum  issue  and  participation  limit.

Future  increases  are  also  subject  to  the  disability  insurance  providers  underwriting  guidelines.  The

Company shall not be liable to provide any benefits for which the Executive does not qualify based on the

insurance  carrier’s  underwriting  guidelines.  If  Executive  does  not  qualify  at  the  Standard  Health  Risk

Class  or  better,  then  neither  the  Company nor  the  Related  Entity shall  be  liable  to  provide  said  benefit.  If

such   plan   requires   medical   underwriting   Executive   agrees   to   comply   with   the   insurance   carrier’s

underwriting guidelines in order to obtain this benefit.


Working Facilities.

During  the  Term  of  Employment,  the  Company  shall  furnish  the  Executive  with  an

office, accounting assistant and such other  facilities at the Related Entity’s headquarters in Cleveland and

services  suitable  to  his  position  and  adequate  for  the  performance  of  his  duties  hereunder.  Upon  the

completion  of  an  accumulative  combination  of  proceeds  from equity,  debt,  sales or  leasing of  technology

rights, not including any amounts raised by a Related Entity, of  no  less  than  $6,000,000,  Executive  may  at

his  discretion,  rent  a  suitable  secondary  office  at  a  location  suitable  to  Executive.  Executive  shall  not  be

required  to  relocate  or  travel  on  behalf  of  the  Company  for  more  than  sixty  (60)  days  per  annum  without

Executive’s prior written consent.

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Employment AgreementDavid G. Charbonneau



After  the  realization  of  an  accumulative  combination  of  proceeds  from  equity,  debt,  sales  or

leasing  of  technology  rights,  not  including  any  amounts  raised  by  a  Related  Entity,  of  no  less  than

$6,000,000 the Company shall  provide to Executive an automobile allowance of no less than $500.00 per



Other Benefits.

The  Executive  shall  be  entitled  to  four  (4) weeks  of  paid  vacation  each  calendar  year

during the Term of  Employment  on  the  first  anniversary of  the  Commencement  Date, to  be  taken  at  such

times  as  the  Executive  and  the  Company  shall  mutually  determine  and  provided  that  no  vacation  time

shall  significantly  interfere  with  the  duties  required  to  be  rendered  by  the  Executive  hereunder.    Any

vacation   time   not   taken   by   Executive   during   any   calendar   year   may   be   carried   forward   into   any

succeeding  calendar  year,  subject  to  a  maximum  accrual  of  ten  (10)  weeks.  The  Executive  shall  receive

such additional benefits, if any, as the Board of the Company shall from time to time determine.





The Term of  Employment  shall terminate upon the earliest  to occur of (i)  the Executive’s

death, (ii) a termination by the Company by reason of the Executive’s Disability, (iii) a termination by the

Company with or  without Cause, or (iv) a termination by Executive with or  without  Good Reason.   Upon

any  termination  of  Executive’s  employment  for  any  reason,  except  as  may  otherwise  be  requested  by  the

Company in writing and agreed upon in writing by Executive, the Executive shall resign from any and all

directorships,  committee  memberships  or  any  other  positions  Executive  holds  with  the  Company  or  any

of its subsidiaries.


Termination by Company for Cause.

The  Company  shall  at  all  times  have  the  right,  upon  written  notice  to  the  Executive,  to

terminate  the  Term  of  Employment,  for  Cause.    In  no  event  shall  a  termination  of  the  Executive’s

employment  for  Cause  occur  unless  the  Company  gives  written  notice  to  the  Executive  in  accordance

with  this  Agreement  stating  with  reasonable  specificity  the  events  or  actions  that  constitute  Cause  and

providing  the  Executive  with  an  opportunity  to  cure  (if  curable)  within  a  reasonable  period  of  time.   No

termination  of  the  Executive’s  employment  for  Cause  shall  be  permitted  unless  the  Termination  Date

occurs  during  the  120-day  period  immediately  following  the  date  that  the  events  or  actions  constituting

Cause  first  become  known  to  the  Board.  Cause  shall  in  no  event  be  deemed  to  exist  except  upon  a

decision  made  by  the  Board,  at  a  meeting,  duly  called  and  noticed,  to  which  the  Executive  (and  the

Executive’s counsel) shall be invited upon proper notice.  If the Executive’s employment is terminated by

the  Company for  Cause  by reason  of  Article  6(b)  hereof,  and the  Executive’s  conviction is  overturned  on

appeal,  then  the  Executive’s  employment  shall  be  deemed  to  have  been  terminated  by  the  Company

without  Cause  in  accordance  with  Article  6(e)  below.    In  the  event  that  the  Term  of  Employment  is

terminated by the Company for Cause, Executive shall be entitled only to the Accrued Obligations.

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Employment Agreement – David G. Charbonneau



The   Executive's   employment   hereunder   shall   terminate   upon   his   Disability.   The

Executive's    employment    shall    terminate    in  such  a  case  on  the  last  day  of  the  applicable  period;

provided,  however,  in no event   shall   the  Executive  be terminated by reason of Disability unless (i) the

Executive  is  eligible  for  the  long-term   disability  benefits  set  forth  in  Article  5(b)  and  (ii)  the  Executive

receives  written  notice  from  the  Company,   at  least  30  days  in  advance  of  such  termination,  stating  its

intention to terminate the Executive for reason of Disability and setting forth in reasonable detail the facts

and  circumstances  claimed  to  provide  a  basis  for  such  termination.    In  the  event  that  the  Term  of

Employment  is  terminated  due  to  the  Executive’s  Disability,  in  addition  to  any  benefits  available  from

applicable insurance, the Executive shall be entitled to:


the  Accrued  Obligations,  payable  as  and  when  those  amounts  would

have been payable;


the  continuation  of  the  health  benefits  provided  to  Executive  and  his

covered dependents under the Company or  Related Entity health plans as in effect from time to time after

the Termination Date at the same cost applicable to active employees until the expiration of the Severance

Term,  provided,  however,  that  as  a  condition  of  continuation  of  such  benefits,  the  Company  or  Related

Entity may require the Executive to elect to continue his health insurance pursuant to COBRA; and


the  use  of  disability  insurance  as  described  in  5(b)  and  in  the  event  the

Company is unable to procure said disability insurance benefits for any reason, the Company shall pay the

Executive  the  Severance  Amount   based  upon  the  Executive’s  length  of   service  at  the  time  of   his




In  the event  that  the Term of  Employment  is terminated due to the Executive’s death, the

Executive shall be entitled to:


Accrued Obligations;


life  insurance  benefits  of  $500,000  to  be  provided  by  life  insurance

company  in  which  premium  shall  be  paid  by  the  Company,  with  beneficiary  named  by  Executive  and  in

the event the Company is unable to procure said life insurance benefits for any reason, the Company shall

pay  the  Executive’s  beneficiary  the  Severance  Amount  based  upon  Executive’s  length  of  service  at  the

time of his death.; and


the   continuation   of   the   health   benefits   provided   to   the   Executive’s

covered  dependents  under  the  Company  health  plans  as  in  effect  from  time  to  time  after  the  Executive’s

death  at  the  same  cost  applicable  to  dependents  of  active  employees  until  the  expiration  of  the  Severance

Term;  provided,  however,  that  as  a  condition  of  continuation  of  such  benefits,  the  Company  may  require

the covered dependents to elect to continue such health insurance pursuant to COBRA.

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Employment Agreement – David G. Charbonneau


Termination Without Cause.

The  Company  may  terminate  the  Term  of  Employment  at  any  time  without  Cause,  by

written notice to the Executive not less than 30 days prior to the effective date of such termination.  In the

event  that  the  Term  of  Employment  is  terminated  by  the  Company  without  Cause  (other  than  due  to  the

Executive’s Death or Disability) the Executive shall be entitled to:


the Accrued Obligations;


the   Severance   Amount,   payable   in   cash   in   three   equal   installments

commencing 15 days, 45 days and 75 days after the Termination Date; and


the  continuation  of  the  health  benefits  provided  to  Executive  and  his

covered  dependents  under  the  Related  Entity  health  plans  as  in  effect  from  time  to  time  after  the  date  of

such  termination  at  the  same  cost  applicable  to  active  employees  until  the  expiration  of  the  Severance

Term;  provided  however,  that  as  a  condition  of  continuation  of  such  benefits,  the  Company  may  require

the Executive to elect to continue his health insurance pursuant to COBRA.


Termination by Executive for Good Reason.

The  Executive  may  terminate  the  Term  of  Employment  for  Good  Reason  by  providing

the   Company  thirty  (30)   days’   written   notice  setting  forth  in  reasonable   specificity  the   event   that

constitutes  Good  Reason,  which  written  notice,  to  be  effective,  must  be  provided  to  the  Company  within

one  hundred  and  twenty(120)  days  of  the  occurrence  of  such  event.   During  such  thirty  (30)  day  notice

period,  the  Company  shall  have  a  cure  right  (if  curable),  and  if  not  cured  within  such  period,  the

Executive’s termination shall be effective upon the date immediately following the expiration of the thirty

(30)  day notice  period,  and the  Executive  shall  be  entitled  to the same  payments and  benefits  as  provided

in Article 6(e) above for a termination without Cause.


Termination by Executive Without Good Reason.

The  Executive  may  terminate  his  employment  without  Good  Reason  by  providing  the

Company   thirty   (30)   days’   written   notice   of   such   termination.     In   the   event   of   a   termination   of

employment  by the  Executive  under  this  Section 6(g), the  Executive shall  be entitled only to the  Accrued

Obligations.    In  the  event  of  termination  of  the  Executive’s  employment  under  this  Article  6(g),  the

Company  may,  in  its  sole  and  absolute  discretion,  by  written  notice,  accelerate  such  date  of  termination

and still have it treated as a termination without Good Reason.


Termination Upon Expiration Date.

In   the   event   that   Executive’s   employment   with   the   Company   terminates   upon   the

expiration  of  the  Term  of  Employment,  the  Executive  shall  be  entitled  to  and  the  Company  shall  pay  the



the Accrued Obligations;


an   amount   equal   to   $200,000   only   in   the   event   Executive’s   Stock

Options  are  valued  at  less  than  $1,000,000  in  excess  of  the  Stock  Option  exercise  price.   Any  amounts

due shall be paid within 1 month of the effective date of the expiration of the Term of Employment with a

minimum  of  $100,000  payable  in  cash  and  the  remainder  up  to  an  aggregate  of  $100,000  payable  in

shares of the Company’s Common Stock; and

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the  continuation  of  the  health  benefits  provided  to  Executive  and  his

covered  dependants  under  the  Company  health  plans  as  in  effect  from  time  to  time  after  the  date  of  such

termination  at  the  same  cost  applicable  to  active  employees  until  the  expiration  of  the  Severance  Term;

provided,  however,  that  as  a  condition  of  continuation  of  such  benefits,  the  Company  may  require  the

Executive to elect to continue his health insurance pursuant to COBRA.


Change in Control of the Company.

If  the  Executive’s  employment  is  terminated  by  the  Company  without  Cause  or  by  the

Executive for  Good Reason during (y)  the 6-month period preceding the date of  the Change in Control or

(z) the two 2 year period immediately following the Change in Control, the Executive shall be entitled to:


the  Accrued  Obligations,  payable  as  and  when  those  amounts  would

have  been  payable  had  the  Term  of  Employment  not  ended;  including  the  immediate  vesting  of  Stock

Options and Retention Award through the end of the Term of Employment;


a payment equal to the maximum Severance Amount of $200,000; and


the  continuation  of  the  health  benefits  provided  to  Executive  and  his

covered  dependants  under  the  Company  health  plans  as  in  effect  from  time  to  time  after  the  date  of  such

termination  at  the  same  cost  applicable  to  active  employees  until  the  expiration  of  the  Severance  Term;

provided,  however,  that  as  a  condition  of  continuation  of  such  benefits,  the  Company  may  require  the

Executive to elect to continue his health insurance pursuant to COBRA.



Any  payments  due  to  Executive  under  this  Article  6  (other  than  the  Accrued  Obligations

or  any  unpaid  expenses  or  payments  due  on  account  of  the  Executive’s  death)  shall  be  conditioned  upon

Executive’s  execution  of  a  general  release  of  claims  in  the  form  attached  hereto  as  Exhibit  A  (subject  to

such modifications as the Company reasonably may request).



Following   the   Term   of   Employment,   the   Executive   shall   give   his   assistance   and

cooperation  willingly,  upon  reasonable  advance  notice  with  due  consideration  for  his  other  business  or

personal  commitments,  in  any  matter  relating  to  his  position  with  the  Company,  or  his  expertise  or

experience  as  the  Company  may  reasonably  request,  including  his  attendance  and  truthful  testimony

where  deemed  appropriate  by  the  Company,  with  respect  to  any  investigation  or  the  Company’s  defense

or  prosecution  of  any  existing  or  future  claims  or  litigations  or  other  proceedings  relating  to  matters  in

which  he  was involved  or  potentially had  knowledge  by  virtue  of  his  employment  with  the  Company.   In

no  event  shall  his  cooperation  materially  interfere  with  his  services  for  a  subsequent  employer  or  other

similar  service  recipient.   To  the  extent  permitted  by  law,  the  Company  agrees  that  (i)  it  shall  promptly

reimburse  the  Executive  for  his  reasonable  and  documented  expenses  in  connection  with  his  rendering

assistance  and/or  cooperation  under  this  Article  6(k)  upon  his  presentation  of  documentation  for  such

expenses  and  (ii)  the  Executive  shall  be  reasonably  compensated  for  any  continued  material  services  as

required under this Article 6(k).

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Employment Agreement – David G. Charbonneau


Return of Company Property.

Following the Termination Date, the  Executive  or  his personal  representative  shall  return

all  Company  property  in  his  possession,  including  but  not  limited  to  all  computer  equipment  (hardware

and software), telephones, facsimile machines, palm pilots and other communication devices, credit cards,

office  keys,  security  access  cards,  badges,  identification  cards  and  all  copies  (including  drafts)  of  any

documentation  or  information  (however  stored)  relating  to  the  business  of  the  Company,  its  customers

and clients or its prospective customers and clients.


Section 409A.

To  the  extent  that  the  Executive  otherwise  would  be  entitled  to  any  payment  (whether

pursuant  to  this  Agreement  or  otherwise)  during  the  six  months  beginning  on  the  Termination  Date  that

would be subject to the additional tax imposed under Section 409A of the Code (“Section 409A”), (x) the

payment  shall  not  be  made  to  the  Executive  during  such  six  month  period  and  instead  shall  be  made  to  a

trust  in  compliance  with  Revenue  Procedure  92-64  (the  “Rabbi  Trust”)  and  (y)  the  payment  shall  be  paid

to  the  Executive  on  the  earlier  of  the  six-month  anniversary  of  the  Termination  Date  or  the  Executive’s

death  or  Disability.  Similarly,  to  the  extent  that  the  Executive  otherwise  would  be  entitled  to  any  benefit

(other  than a payment)  during the six months beginning on the Termination Date that  would be subject  to

the  Section  409A  additional  tax,  the  benefit  shall  be  delayed  and  shall  begin  being  provided  (together,  if

applicable,  with  an  adjustment  to  compensate the  Executive  for  the  delay)  on  the  earlier  of  the  six-month

anniversary of the Termination Date, or the Executive’s death or Disability.


The  Company  shall  not  take  any  action  that  would  expose  any  payment

or  benefit  to  the  Executive  to  the  additional  tax  of  Section  409A,  unless  (w)  the Company  is  obligated  to

take  the  action  under  an  agreement,  plan  or  arrangement  to  which  the  Executive  is  a  party,  (x)  the

Executive requests the action, (y) the Company advises the Executive in writing that the action may result

in the imposition of  the additional  tax, and (z)  the Executive subsequently requests the action in a writing

that acknowledges that the Executive shall be responsible for any effect of the action under Section 409A.


It  is  the  Company’s  intention  that  the  benefits  and  rights  to  which  the

Executive  could  become  entitled  in  connection  with  termination  of  employment  comply  with  Section

409A.  If  the  Executive  or  the  Company  believes,  at  any  time,  that  any  of  such  benefit  or  right  does  not

comply,  it  shall  promptly  advise  the  other  and  shall  negotiate  reasonably  and  in  good  faith  to  amend  the

terms of such benefits and rights such that they comply with Section 409A (with the most limited possible

economic effect on the Executive and on the Company).


Clawback of Certain Compensation and Benefits.

If  within  the  three  year  period  after  the  termination  of  the  Executive’s  employment  with

the Company for any reason other than by the Company for Cause:


it  is  determined  in  good  faith  by  the  Board  and  in  accordance  with  the

due process requirements of  Article 6(b)  that  the Executive’s employment  could have been terminated by

the  Company  for  Cause  under  Article  6(b)  (unless  the  Board  knew  or  should  have  known  that  as  of  the

Termination  Date  the  Executive’s  employment  could  have  been  terminated  for  Cause  in  accordance  with

Article 6(b)); or

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Employment Agreement – David G. Charbonneau


the  Company’s  financial  statements  are  required  to  be  restated  due  to

material  non-compliance  with  any  financial  reporting  requirements  under  the  federal  securities  laws

(other  than  a  restatement  due  to  a  change  in  accounting  rules  or  estimates)  within  a  three  (3)  year  period

following  the  Termination  Date,  if  the  Executive’s  conduct  intentionally,  fraudulently  or  negligently

caused  the need for the restatement; or


if  the  Company  determines  that  the  Executive  has  engaged  in  fraudulent

or  intentional  misconduct  related  to  or  materially  affecting  the  Company’s  business  operations  or  the

Executive’s duties at the Company; or


the  Executive  breaches  Article  7,  then,  in  addition  to  any  other  remedy

that  may  be  available  to  the  Company  in  law  or  equity  and/or  pursuant  to  any  other  provisions  of  this

Agreement, the Executive’s employment  shall  be deemed to have been terminated for  Cause retroactively

to the Termination Date.

The Executive also shall be subject to the following provisions:

(a)   The  Executive  shall  be  required  to  pay  to  the  Company,  immediately  upon  written  demand

by  the  Board,  (a)  notwithstanding  Article  1  (a)(iii),  Article  1(a)(iv)  and  Article  6(b),  the  additional

amounts  paid  to  Executive  as  a  Bonus,  Deferred  Compensation,  Retention  Award,  or  Severance;  that

Executive would not have received had Executive’s employment been terminated for Cause;  and

(b)  The  Executive  shall  be  required  to  pay  to  the  Company  any  additional  amounts  paid  to

Executive  on  or  after  the  Termination  Date  (including  the  pre-tax  cost  to  the  Company  of  any  benefits

that  are  in  excess  of  the  total  amount  that  the  Company  would  have  been  required  to  pay  and  the  pre-tax

cost  of  any  benefits  that  the  Company  would  have  been  required  to  provide)  that  are  in  addition  to  those

amounts    Executive  would  have  received  if  the  Executive’s  employment  with  the  Company  had  been

terminated by the Company for Cause in accordance with Article 6(b) above and;

(c)  Notwithstanding Article 1  (a)(iii)  and  Article  6(b),  the  Executive  shall  forfeit  at  the  discretion

of  the  Board,  based  on  the  facts  and  circumstances  surrounding  the  Executive’s  culpability,  all  or  a

portion of the Stock Options granted pursuant to this Agreement, vested and unvested, or if Stock Options

have been exercised, all or a portion of the shares so issued for cancellation upon payment by Company to

Executive  the  full  exercise  price,  while  any  remaining  Stock  Options,  if  any,  may  be  rescinded  by  the


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Employment Agreement – David G. Charbonneau


Restrictive Covenants.



At  all  times  during  the  Restricted  Period,  the  Executive  shall  not,  directly  or  indirectly

(whether  as  a  principal,  agent,  partner,  employee,  officer,  investor,  owner,  consultant,  board  member,

security holder,  creditor  or  otherwise),  engage  in  any Competitive  Activity,  or  have  any  direct  or  indirect

interest  in  any  sole  proprietorship,  corporation,  company,  partnership,  association,  venture  or  business  or

any  other  person  or  entity  that  directly  or  indirectly  (whether  as  a  principal,  agent,  partner,  employee,

officer,  investor,  owner,  consultant,  board  member,  security  holder,  creditor,  or  otherwise)  engages  in  a

Competitive   Activity;   provided   that   the  foregoing  shall   not   apply  to  the   Executive's   ownership  of

Common Stock of the Company or the acquisition by the Executive, solely as an investment, of securities

of  any  issuer  that  is  registered  under  Section  12(b)  or  12(g)  of  the  Securities  Exchange  Act  of  1934,  and

that  are listed or  admitted for  trading on any United States national  securities exchange or  that  are quoted

on  the  NASDAQ  Stock  Market,  or  any  similar  system  or  automated  dissemination  of  quotations  of

securities  prices  in  common  use,  so  long  as  the  Executive  does  not  control,  acquire  a  controlling  interest

in  or  become  a  member  of  a  group  which  exercises  direct  or  indirect  control  of,  more  than  five  percent

(5%) of any class of capital stock of such corporation.


Non-solicitation of Employees and Certain Other Third Parties.

At  all  times  during  the  Restricted  Period,  the  Executive  shall  not,  directly  or  indirectly,

for himself or for any other person, firm, corporation, partnership, association or other entity (i) employ or

attempt   to   employ   or   enter   into   any   contractual   arrangement   with   any   employee,   consultant   or

independent  contractor  performing  services  for  the  Company,  or  any  Affiliate  or  Related  Entity,  unless

such employee, consultant or independent contractor, has not been employed or engaged by the Company

for  a  period  in  excess  of  six  (6)  months,  and/or  (ii) call  on  or  solicit  any  of  the  actual  or  targeted

prospective  customers  or  clients  of  the  Company  or  any  Affiliate  or  Related  Entity  on  behalf  of  any

person  or  entity  in  connection  with  any  Competitive  Activity,  nor  shall  the  Executive  make  known  the

names  and  addresses  of  such  actual  or  targeted  prospective  customers  or  clients,  or  any  information

relating  in  any  manner  to  the  trade  or  business  relationships  of  the  Company  or  any  Affiliates  or  Related

Entities  with  such  customers  or  clients,  other  than  in  connection  with  the  performance  of  the  Executive’s

duties  under  this  Agreement,  and/or  (iii)  persuade  or  encourage  or  attempt  to  persuade  or  encourage  any

persons  or  entities  with  whom the  Company  or  any Affiliate  or  Related  Entity does  business  or  has  some

business  relationship  to  cease  doing  business  or  to  terminate  its  business  relationship  with  the  Company

or  any  Affiliate  or  Related  Entity  or  to  engage  in  any  Competitive  Activity  on  its  own  or  with  any

competitor of the Company or any Affiliate or Related Entity.

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Employment Agreement – David G. Charbonneau


Confidential Information.

The  Executive  shall  not  at  any  time  divulge,  communicate,  use  to  the  detriment  of  the

Company  or  for  the  benefit  of  any  other  person  or  persons,  or  misuse  in  any  way,  any  Confidential

Information  pertaining  to  the  business  of  the  Company.   Any  Confidential  Information  or  data  now  or

hereafter acquired by the Executive with respect to the business of the Company (which shall include, but

not  be  limited  to,  information  concerning  the  Company's  financial  condition,  prospects,  technology,

customers, suppliers, sources of leads and methods of doing business) shall  be deemed a valuable, special

and  unique  asset  of  the  Company  that  is  received  by  the  Executive  in  confidence  and  as  a  fiduciary,  and

the   Executive   shall   remain   a   fiduciary   to   the   Company   with   respect   to   all   of   such   information.

Notwithstanding  the  foregoing,  nothing  herein  shall  be  deemed  to  restrict  the  Executive  from  disclosing

Confidential  Information  as  required  to  perform his  duties  under  this  Agreement  or  to  the  extent  required

by law.   If  any person or  authority makes a demand on the Executive purporting to legally compel  him to

divulge  any  Confidential  Information,  the  Executive  immediately  shall  give  notice  of  the  demand  to  the

Company so  that  the  Company may first  assess  whether  to  challenge  the  demand  prior  to the  Executive’s

divulging   of   such   Confidential   Information.     The   Executive   shall   not   divulge   such   Confidential

Information  until  the  Company  either  has  concluded  not  to  challenge  the  demand,  or  has  exhausted  its

challenge, including appeals, if  any.   Upon request  by the Company, the Executive shall  deliver  promptly

to  the  Company  upon  termination  of  his  services  for  the  Company,  or  at  any  time  thereafter  as  the

Company may request, all memoranda, notes, records, reports, manuals, drawings, designs, computer files

in any media and other documents (and all copies thereof) containing such Confidential Information.


Ownership of Developments.

All  processes,  concepts,  techniques,  inventions  and  works  of  authorship,  including  new

contributions,  improvements,  formats,  packages,  programs,  systems,  machines,  compositions  of  matter

manufactured,  developments,  applications  and  discoveries,  and  all  copyrights,  patents,  trade  secrets,  or

other  intellectual  property rights associated therewith conceived, invented, made, developed or  created by

the  Executive  during  the  Term  of  Employment  either  during  the  course  of  performing  work  for  the

Companies   or   their   clients   or   which   are   related   in   any   manner   to   the   business   (commercial   or

experimental)  of  the  Company  or  its  clients  (collectively,  the  “Work  Product”),  within  the  field  of  use  of

wear  and  corrosion  resistant  coatings  shall  belong  exclusively  to  the  Company  and  shall,  to  the  extent

possible,  be  considered  a  work  made  by  the  Executive  for  hire  for  the  Company  within  the  meaning  of

Title  17  of  the  United  States  Code.    To  the  extent  the  Work  Product  within  the  wear  and  corrosion

coatings  field  of  use  may  not  be  considered  work  made  by  the  Executive  for  hire  for  the  Company,  the

Executive  agrees to  assign, and  automatically assign  at  the time  of  creation  of  the Work Product,  without

any requirement of further consideration, any right, title, or interest the Executive may have in such Work

Product.    Upon  the  request  of  the  Company,  the  Executive  shall  take  such  further  actions,  including

execution and delivery of  instruments of conveyance, as may be appropriate to give full  and proper effect

to such assignment. The Executive shall  further:  (i)  promptly disclose the Work Product to the Company;

(ii)  assign  to  the  Company,  without  additional  compensation,  all  patent  or  other  rights  to  such  Work

Product  for  the  United  States  and  foreign  countries;  (iii)  sign  all  papers  necessary  to  carry  out  the

foregoing;  and  (iv)  give  testimony  in  support  of  his  inventions,  all  at  the  sole  cost  and  expense  of  the



Books and Records.

All  books, records, and accounts relating in any manner  to the customers or  clients of the

Company,  whether  prepared  by  the  Executive  or  otherwise  coming  into  the  Executive's  possession,  shall

be  the  exclusive  property  of  the  Company  and  shall  be  returned  immediately  to  the  Company  on

termination of the Executive's employment hereunder or on the Company's request at any time.

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Employment Agreement – David G. Charbonneau


Acknowledgment by Executive.

The Executive acknowledges and confirms that the restrictive covenants contained in this

Article  7  (including  without  limitation  the  length  of  the  term  of  the  provisions  of  this  Article  7)  are

reasonably  necessary  to  protect  the  legitimate  business  interests  of  the  Company,  and  are  not  overbroad,

overlong,  or  unfair  and  are  not  the  result  of  overreaching,  duress  or  coercion  of  any  kind.  The  Executive

further  acknowledges and confirms that  the compensation payable to the Executive under  this Agreement

is  in  consideration  for  the  duties  and  obligations  of  the  Executive  hereunder,  including  the  restrictive

covenants  contained  in  this  Article  7,  and  that  such  compensation  is  sufficient,  fair  and  reasonable.   The

Executive  further  acknowledges  and confirms  that  his full,  uninhibited  and faithful  observance  of  each of

the  covenants  contained  in  this  Article  7  will  not  cause  him  any  undue  hardship,  financial  or  otherwise,

and  that  enforcement  of  each  of  the  covenants  contained  herein  will  not  impair  his  ability  to  obtain

employment  commensurate  with  his  abilities  and  on  terms  fully  acceptable  to  him  or  otherwise  to  obtain

income required for the comfortable support  of him and his family and the satisfaction of  the needs of  his

creditors.   The  Executive  acknowledges  and  confirms  that  his  special  knowledge  of  the  business  of  the

Company  is  such  as  would  cause  the  Company  serious  injury  or  loss  if  he  were  to  use  such  ability  and

knowledge  to  the  benefit  of  a  competitor  or  were  to  compete  with  the  Company  in  violation  of  the  terms

of  this  Article  7.  The  Executive  further  acknowledges  that  the  restrictions  contained  in  this  Article  7  are

intended to be, and shall  be, for the benefit  of  and shall  be enforceable by, the Company’s successors and

assigns.  The Executive expressly agrees that upon any breach or violation of the provisions of this Article

6,  the  Company  shall  be  entitled,  as  a  matter  of  right,  in  addition  to  any  other  rights  or  remedies  it  may

have,  to  (i)  temporary  and/or  permanent  injunctive  relief  in  any  court  of  competent  jurisdiction  as

described  in  Article  7(h)  hereof,  and  (ii)  such  damages  as  are  provided  at  law  or  in  equity.  The  existence

of  any  claim  or  cause  of  action  against  the  Company  or  its  affiliates,  whether  predicated  upon  this

Agreement  or  otherwise,  shall  not  constitute  a  defense  to  the  enforcement  of  the  restrictions  contained  in

this Article 7.


Reformation by Court.

In  the  event  that  a  court  of  competent  jurisdiction  shall  determine  that  any  provision  of

this  Article  7  is  invalid  or  more  restrictive  than  permitted  under  the  governing  law  of  such  jurisdiction,

then  only as  to  enforcement  of  this  Article  7  within the jurisdiction  of  such  court, such  provision  shall  be

interpreted  or  reformed  and  enforced  as  if  it  provided  for  the  maximum  restriction  permitted  under  such

governing law.


Extension of Time.

If  the  Executive  shall  be  in  violation  of  any  provision  of  this  Article  7,  then  each  time

limitation  set  forth  in  this  Article  7  shall  be  extended  for  a  period  of  time  equal  to  the  period  of  time

during  which  such  violation  or  violations  occur.    If  the  Company  seeks  injunctive  relief  from  such

violation  in  any court,  then the  covenants  set  forth  in  this  Article  7  shall  be  extended  for  a  period  of  time

equal to the duration of such proceeding including all appeals by the Executive.

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Employment Agreement – David G. Charbonneau



It  is  recognized  and  hereby  acknowledged  by  the  parties  hereto  that  a  breach  by  the

Executive  of  any  of  the  covenants  contained  in  Article  7  of  this  Agreement  will  cause  irreparable  harm

and damage to the Company, the monetary amount of which may be virtually impossible to ascertain.  As

a  result,  the  Executive  recognizes  and  hereby  acknowledges  that  the  Company  shall  be  entitled  to  an

injunction from any court of competent jurisdiction enjoining and restraining any violation of any or all of

the  covenants  contained  in  Article  7  of   this  Agreement   by  the  Executive  or  any  of   his  affiliates,

associates,  partners  or  agents,  either  directly  or  indirectly,  and  that  such  right  to  injunction  shall  be

cumulative and in addition to whatever other remedies the Company may possess.


Representations and Warranties of Executive.

The Executive represents and warrants to the Company that:


The  Executive’s  employment  will  not  conflict  with  or  result  in  his  breach  of  any

agreement to which he is a party or otherwise may be bound;


The  Executive  has  not  violated,  and  in  connection  with  his  employment  with  the

Company  will  not  violate,  any  non-solicitation,  non-competition  or  other  similar  covenant  or  agreement

of a prior employer by which he is or may be bound; and


In  connection  with  Executive’s  employment  with  the  Company,  he  will  not  use

any  confidential  or  proprietary  information  that  he  may  have  obtained  in  connection  with  employment

with any prior  employer,  with the  exception  of   current  or  former  affiliates, parents,  or  subsidiaries of  the

company; and


The  Executive  has  not  (i)  been  convicted  of  any  felony;  or  (ii)  committed  any

criminal act with respect to Executive’s current or any prior employment; and


The Executive is not dependent on alcohol or the illegal use of drugs



Except to the extent the Company has the right  to seek an injunction under  Article 7(h)  hereof, in

the  event  a  dispute  arises  out  of  or  relates  to  this  Agreement,  or  the  breach  thereof,  and  if  the  dispute

cannot  be  settled  through  negotiation,  the  parties  hereby  agree  first  to  attempt  in  good  faith  to  settle  the

dispute  by  mediation  administered  by  the  American  Arbitration  Association  under  its  Employment

Mediation Rules before resorting to the jurisdiction of federal or state courts to resolve any dispute.



Anything in this Agreement  to the contrary notwithstanding, all payments required to be made by

the  Company  hereunder  to  the  Executive  or  his  estate  or  beneficiaries  shall  be  subject  to  the  withholding

of  such  amounts  relating  to  taxes  as  the  Company  may  reasonably  determine  it  should  withhold  pursuant

to  any  applicable  law  or  regulation.    In  lieu  of  withholding  such  amounts,  in  whole  or  in  part,  the

Company  may,  in  its  sole  discretion,  accept  other  provisions  for  payment  of  taxes  and  withholding  as

required  by  law,  provided  it  is  satisfied  that  all  requirements  of  law  affecting  its  responsibilities  to

withhold have been satisfied.

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Employment Agreement – David G. Charbonneau



The  Company  shall  have  the  right  to  assign  this  Agreement  and  its  rights  and  obligations

hereunder  in  whole,  but  not  in  part,  to  any  corporation  or  other  entity  with  or  into  which  the  Company

may  hereafter  merge  or  consolidate  or  to  which  the  Company  may  transfer  all  or  substantially  all  of  its

assets, if in any such case said corporation or other entity shall by operation of law or expressly in writing

assume all  obligations of the Company hereunder  as fully as if it  had been originally made a party hereto,

but  may not  otherwise  assign  this  Agreement  or  its  rights  and  obligations  hereunder.   The  Executive  may

not assign or transfer this Agreement or any rights or obligations hereunder.


Governing Law.

This  Agreement  shall  be  governed  by and  construed and  enforced in accordance with the internal

laws of the State of Florida, without regard to principles of conflict of laws.


Jurisdiction and Venue.

The  parties  acknowledge  that  a  substantial  portion  of  the  negotiations,  anticipated  performance

and  execution  of  this  Agreement  occurred  or  shall  occur  in  Miami,  Florida,  and  that,  therefore,  without

limiting  the  jurisdiction  or  venue  of  any  other  federal  or  state  courts,  each  of  the  parties  irrevocably  and

unconditionally  (i)  agrees  that  any  suit,  action  or  legal  proceeding  arising  out  of  or  relating  to  this

Agreement  which  is  expressly  permitted  by  the  terms  of  this  Agreement  to  be  brought  in  a  court  of  law,

shall  be  brought  in  the  courts  of  record  of  the  State  of  Florida  or  the  court  of  the  United  States;  (ii)

consents  to  the  jurisdiction  of  each  such  court  in  any  such  suit,  action  or  proceeding;  (iii)  waives  any

objection  which  it  or  he  may  have  to  the  laying  of  venue  of  any  such  suit,  action  or  proceeding  in  any  of

such  courts;  and  (iv)  agrees  that  service  of  any  court  papers  may  be  effected  on  such  party  by  mail,  as

provided  in  this  Agreement,  or  in  such  other  manner  as  may  be  provided  under  applicable  laws  or  court

rules in such courts.



The respective rights and obligations of  the parties hereunder  shall  survive any termination of  the

Executive’s   employment   hereunder,   including   without   limitation,   the   Company’s   obligations   under

Article  6  and  the  Executive’s  obligations  under  Article  7  above,  and  the  expiration  of  the  Term  of

Employment, to the extent necessary to the intended preservation of such rights and obligations.



All  notices required or  permitted to be given hereunder shall be in writing and shall  be personally

delivered  by  courier,  sent  by  registered  or  certified  mail,  return  receipt  requested  or  sent  by  confirmed

facsimile  transmission  addressed  as  set  forth  herein.   Notices  personally  delivered,  sent  by  facsimile  or

sent  by overnight  courier  shall  be  deemed  given  on  the  date  of  delivery and  notices  mailed in  accordance

with the foregoing shall be deemed given upon the earlier of receipt by the addressee, as evidenced by the

return  receipt  thereof,  or  three  (3)  days  after  deposit  in  the  U.S.  mail.   Notice  shall  be  sent  (i) if  to  the

Company,  addressed  to  2665  South  Bayshore  Drive,  Suite  450,  Miami,  Florida  33133  USA  Attention:

Robert  Miller,  CEO,  and  (ii) if  to  the  Executive,  to  his  address  as  reflected  on  the  payroll  records  of  the

Company,  or  to  such  other  address  as  either  party  shall  request  by  notice  to  the  other  in  accordance  with

this provision.

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Employment Agreement – David G. Charbonneau


Benefits; Binding Effect.

This Agreement shall be for the benefit of and binding upon the parties hereto and their respective

heirs,  personal  representatives,  legal  representatives,  successors  and,  where  permitted  and  applicable,

assigns,  including,  without  limitation,  any  successor  to  the  Company,  whether  by  merger,  consolidation,

sale of stock, sale of assets or otherwise.


Right to Consult with Counsel; No Drafting Party.

The  Executive  acknowledges  having  read  and  considered  all  of  the  provisions  of  this  Agreement

carefully, and having had the opportunity to consult with counsel of his own choosing, and, given this, the

Executive  agrees  that  the  obligations  created  hereby  are  not  unreasonable.   The  Executive  acknowledges

that  he  has  had  an  opportunity  to  negotiate  any  and  all  of  these  provisions  and  no  rule  of  construction

shall  be  used  that  would  interpret  any provision  in  favor  of  or  against  a  party on  the  basis  of  who  drafted

the Agreement.



The  invalidity  of  any  one  or  more  of  the  words,  phrases,  sentences,  clauses,  provisions,  sections

or  articles contained in this Agreement  shall  not  affect the enforceability of  the remaining portions of this

Agreement  or  any  part  thereof,  all  of  which  are  inserted  conditionally  on  their  being  valid  in  law,  and,  in

the  event  that  any  one  or  more  of  the  words,  phrases,  sentences,  clauses,  provisions,  sections  or  articles

contained in this Agreement shall be declared invalid, this Agreement shall be construed as if such invalid

word  or  words,  phrase  or  phrases,  sentence  or  sentences,  clause  or  clauses,  provisions  or  provisions,

section  or  sections  or  article  or  articles  had  not  been  inserted.   If  such  invalidity  is  caused  by  length  of

time  or  size  of  area,  or  both,  the  otherwise  invalid  provision  will  be  considered  to  be  reduced  to  a  period

or area which would cure such invalidity.



The  waiver  by  either  party  hereto  of  a  breach  or  violation  of  any  term  or  provision  of  this

Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.


Damages; Attorneys Fees.

Nothing  contained  herein  shall  be  construed  to  prevent  the  Company  or  the  Executive  from

seeking and recovering from the other damages sustained by either or both of them as a result of its or his

breach  of  any  term  or  provision  of  this  Agreement.  In  the  event  that  either  party  hereto  seeks  to  collect

any  damages  resulting  from,  or  the  injunction  of  any  action  constituting,  a  breach  of  any  of  the  terms  or

provisions  of  this  Agreement,  then  the  party  found  to  be  at  fault  shall  pay  all  reasonable  costs  and

attorneys' fees of the other.


No Set-off or Mitigation.

The Company’s obligation to make the payments provided for in this Agreement and otherwise to

perform  its  obligations  hereunder  shall  not  be  affected  by  any  set-off,  counterclaim,  recoupment,  defense

or other claim, right or action which the Company may have against the Executive or others.

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Employment Agreement – David G. Charbonneau


Section Headings.

The   article,   section   and   paragraph   headings   contained   in   this   Agreement   are   for   reference

purposes only and shall not affect in any way the meaning or interpretation of this Agreement.


No Third Party Beneficiary.

Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon

or  give  any  person  other  than  the  Company,  the  parties  hereto  and  their  respective  heirs,  personal

representatives,  legal  representatives,  successors  and  permitted  assigns,  any  rights  or  remedies  under  or

by reason of this Agreement.



This  Agreement  may  be  executed  in  one  or  more  counterparts,  each  of  which  shall  be  deemed  to

be an original but all of which together shall constitute one and the same instrument and agreement.




Subject  to  limitations  imposed  by  law,  the  Company  shall  indemnify  and  hold

harmless  the  Executive  to  the  fullest  extent  permitted  by  law  from  and  against  any  and  all  claims,

damages,  expenses  (including  attorneys'  fees),  judgments,  penalties,  fines,  settlements,  and  all  other

liabilities incurred or paid by him in connection with the investigation, defense, prosecution, settlement or

appeal  of  any  threatened,  pending  or  completed  action,  suit  or  proceeding,  whether  civil,  criminal,

administrative  or  investigative  and  to  which the  Executive  was  or  is  a  party or  is  threatened  to  be  made  a

party  by  reason  of  the  fact  that  the  Executive  is  or  was  an  officer,  employee  or  agent  of  the  Company,  or

by reason of  anything done or  not  done by the Executive in any such capacity or capacities, provided that

the  Executive  acted  in  good  faith,  in  a  manner  that  was  not  grossly  negligent  or  constituted  willful

misconduct  and  in  a  manner  he  reasonably  believed  to  be  in  or  not  opposed  to  the  best  interests  of  the

Company,  and,  with  respect  to  any  criminal  action  or  proceeding,  had  no  reasonable  cause  to  believe  his

conduct  was  unlawful.    The  Company  also  shall  pay  any  and  all  expenses  (including  attorney's  fees)

incurred  by  the  Executive  as  a  result  of  the  Executive  being  called  as  a  witness  in  connection  with  any

matter involving the Company and/or any of its officers or directors.


Except  in  the  event  that  the  Company  is  involved  in  an  adversarial  claim  either

against  or  initiated  by  Executive,  the  Company  shall  pay  any  expenses  (including  attorneys'  fees),

judgments,  penalties,  fines,  settlements,  and  other  liabilities  incurred  by  the  Executive  in  investigating,

defending,  settling  or  appealing  any  action,  suit  or  proceeding  described  in  this  Article  25  in  advance  of

the  final  disposition  of  such  action,  suit  or  proceeding.    Subject  to  the  limited  exception  conditioned

above,  the  Company  shall  promptly  pay  the  amount  of  such  expenses  to  the  Executive,  but  in  no  event

later  than  10  days  following  the  Executive's  delivery  to  the  Company  of  a  written  request  for  an  advance

pursuant to this Article 25, together with a reasonable accounting of such expenses.


The  Executive  hereby  undertakes  and  agrees  to  repay  to  the  Company  any

advances  made  pursuant  to  this  Article  25  if  and  to  the  extent  that  it  shall  ultimately  be  found  that  the

Executive is not entitled to be indemnified by the Company for such amounts.

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Employment Agreement – David G. Charbonneau


The   Company   shall   make   the   advances   contemplated   by   this   Article   25

regardless of  the  Executive's  financial  ability to make  repayment,  and regardless whether  indemnification

of  the  Indemnitee  by  the  Company  will  ultimately  be  required.   Any  advances  and  undertakings  to  repay

pursuant  to  this  Article  25  shall  be  unsecured  and  interest-free.  The  provisions  of  this  Article  25  shall

survive the termination of the Term of Employment or expiration of the term of this Agreement.


The  provisions  of  this  Article  25  shall  survive  the  termination  of  the  Term  of

Employment or expiration of the term of this Agreement.

IN  WITNESS  WHEREOF,  the  undersigned  have  executed  this  Agreement  as  of  the  date  first

above written.



/s/ Robert Miller

/s/ David G. Charbonneau

Robert Miller, CEO

David G. Charbonneau

Page 23

Employment Agreement – David G. Charbonneau




David G. Charbonneau (“Executive”), for himself and his family, heirs, executors, administrators,

legal  representatives  and  their  respective  successors  and  assigns,  in  exchange  for  the  consideration

received  pursuant  to  Articles  6(c)  (in  the  case  of  Disability),  Articles  6(e)  or  6(f)  (other  than  the  Accrued

Obligations)   of   the   Employment   Agreement   to   which   this   release   is   attached   as   Exhibit   A   (the

Employment  Agreement”),  does  hereby  release  and  forever  discharge  Abakan  Inc.  (the  Company”),  its

subsidiaries,  affiliated  companies,  successors  and  assigns,  and  its  current  or  former  directors,  officers,

employees,  shareholders  or  agents  in  such  capacities  (collectively  with  the  Company,  the  “Released

Parties”)  from any and  all  actions, causes of  action, suits,  controversies, claims and  demands  whatsoever,

for  or  by reason  of  any  matter,  cause  or  thing whatsoever,  whether  known  or  unknown  including,  but  not

limited   to,   all   claims   under   any   applicable   laws   arising   under   or   in   connection   with   Executive’s

employment  or  termination  thereof,  whether  for  tort,  breach  of  express  or  implied  employment  contract,

wrongful  discharge,  intentional  infliction  of  emotional  distress,  or  defamation  or  injuries  incurred  on  the

job or incurred as a result of loss of employment.  Executive acknowledges that the Company encouraged

him  to  consult  with  an  attorney  of  his  choosing,  and  through  this  General  Release  of  Claims  encourages

him  to  consult   with  his  attorney  with  respect   to  possible  claims  under   the  Age  Discrimination  in

Employment Act (“ADEA”) and that he understands that the ADEA is a Federal statute that, among other

things,  prohibits  discrimination  on  the  basis  of  age  in  employment  and  employee  benefits  and  benefit

plans.   Without  limiting the generality of  the release provided above, Executive expressly waives any and

all  claims  under  ADEA  that  he  may  have  as  of  the  date  hereof.   Executive  further  understands  that  by

signing  this  General  Release  of  Claims  he  is  in  fact  waiving,  releasing  and  forever  giving  up  any  claim

under the ADEA as well as all other laws within the scope of this paragraph 1 that may have existed on or

prior  to  the  date  hereof.    Notwithstanding  anything  in  this  paragraph  1  to  the  contrary,  this  General

Release  of  Claims  shall  not  apply  to  (i)  any  actions  to  enforce  rights  arising  under,  or  any  claim  for

benefits  which  may  be  due  Executive  pursuant  to,  the  Employment  Agreement,  (ii)  any  rights  or  claims

that  may  arise  as  a  result  of  events  occurring  after  the  date  this  General  Release  of  Claims  is  executed,

(iii)  any  indemnification  rights  Executive  may  have  as  a  former  officer  or  director  of  the  Company  or  its

subsidiaries or affiliated companies, (iv) any claims for benefits under any directors’ and officers’ liability

policy maintained by the Company or its subsidiaries or affiliated companies in accordance with the terms

of such policy, and (v) any rights as a holder of equity securities of the Company.

Executive represents that he has not filed against the Released Parties any complaints, charges, or

lawsuits  arising  out  of  his  employment,  or  any  other  matter  arising  on  or  prior  to  the  date  of  this  General

Release  of  Claims,  and  covenants  and  agrees  that  he  will  never  individually  or  with  any  person  file,  or

commence the filing of, any charges, lawsuits, complaints or  proceedings with any governmental  agency,

or  against  the  Released  Parties  with  respect  to  any  of  the  matters  released  by  Executive  pursuant  to

paragraph  1  hereof  (a  Proceeding”);  provided,  however,  Executive  shall  not  have  relinquished  his  right

to  commence  a  Proceeding  to  challenge  whether  Executive  knowingly  and  voluntarily  waived  his  rights

under ADEA.

Executive hereby acknowledges that the Company has informed him that he has up to twenty-one

(21)  days  to  sign  this  General  Release  of  Claims  and  he  may  knowingly  and  voluntarily  waive  that

twenty-one (21) day period by signing this General Release of Claims earlier.  Executive also understands

that  he  shall  have  seven  (7)  days  following  the  date  on  which  he  signs  this  General  Release  of  Claims

within which to revoke it by providing a written notice of his revocation to the Company.

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Executive  acknowledges  that  this  General  Release  of  Claims  will  be  governed  by  and  construed

and enforced in accordance with the internal laws of the State of Ohio applicable to contracts made and to

be performed entirely within such State.

Executive acknowledges that he has read this General Release of Claims, that he has been advised

that  he  should  consult  with  an  attorney  before  he  executes  this  general  release  of  claims,  and  that  he

understands all  of  its terms and executes it  voluntarily and with full  knowledge of its significance and the

consequences thereof.

This   General   Release   of   Claims   shall   take   effect   on   the  eighth   day  following  Executive’s

execution  of  this  General  Release  of  Claims  unless  Executive’s  written  revocation  is  delivered  to  the

Company within seven (7) days after such execution.


David G. Charbonneau

_______________, 20

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Employment Agreement – David G. Charbonneau – Exhibit