FARO TECHNOLOGIES INC
EXHIBIT 10.1
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<p  align=right><font size="2" face="Times New Roman"><b>Exhibit 10.1</b></font></p>
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<font size="2" face="Times New Roman"><b>EMPLOYMENT AGREEMENT</b></font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>THIS EMPLOYMENT AGREEMENT (this &#147;Agreement&#148;) is entered into as of January 30, 2006 (the &#147;Effective Date&#148;) by and between SIMON RAAB (&#147;Executive&#148;), and FARO TECHNOLOGIES, INC. (hereinafter, the &#147;Company&#148;), a Florida corporation having its principal place of business at 125 Technology Park, Lake Mary, FL&#160; 32746. </font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS</b>, Executive is employed fulltime by Company, currently as its Chief Executive Officer <b>(&#147;CEO&#148;)</b>; and</font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS</b>, Executive wishes to continue to be employed by Company on the terms and conditions set forth in this Agreement and Company wishes to continue to employ Executive on those terms and conditions; </font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE</b>, for and in consideration of the covenants set forth herein, the receipt and sufficiency of which are hereby acknowledged the parties agree as follows:</font></p>
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<font size="2" face="Times New Roman"><b>TERMS AND CONDITIONS</b></font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term</b></font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The term of this Agreement shall extend from the date hereof until January 1, 2007, unless terminated sooner pursuant to the provisions of this Agreement (&#147;<b>Term</b>&#148;).</font></p>

<p><font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Position, Responsibilities and Duties</b></font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Company hereby employs Executive as the Chief Executive Officer (&#147;Executive CEO&#148;) of the Company.&#160; As such, and subject to the provisions of the Agreement set forth in this Section 2, Executive shall have responsibilities, duties and authority reasonably accorded to, expected of and consistent with Executive&#146;s position as the Chief Executive Officer of the Company.&#160; Executive hereby accepts this employment upon the terms and conditions herein contained.</font></p>
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<font size="2" face="Times New Roman">(a)</font></p>  </td>
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<font size="2" face="Times New Roman">Unless   Executive elects to alter his fulltime commitment in accordance with Section   2(b), Executive will continue to devote his full business efforts from his   home and will be available at all reasonable times in person at the Company&#146;s   headquarters, by telephone, facsimile and email as the parties deem necessary   and appropriate.&#160; As Executive CEO, the   duties will include but not be limited to:&#160;   such responsibilities as are normally part of a CEO&#146;s position in a US   based multi-national public company including but not limited to overseeing   operations, overseeing the finance and accounting function for the Company;   reviewing and analyzing the Company affiliates&#146; business results with the   executive staff; and overseeing the strategic and annual planning   process.&#160; In addition and   specifically, Executive will:</font></p>  </td>
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<font size="2" face="Times New Roman">(i)</font></p>  </td>
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<font size="2" face="Times New Roman">mentor,   support, oversee and supervise as is required the individual named by the   Board of Directors (&#147;<b>Board&#146;s Co-CEO Nominee</b>&#148;   or successor) to succeed the Executive as CEO (the &#147;<b>mentor function</b>&#148;); and</font></p>  </td>
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<font size="2" face="Times New Roman">(ii)</font></p>  </td>
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<font size="2" face="Times New Roman">at the   pleasure of the Board of Directors of the Company, hold the position and   fulfill the role of Chairman of the Board of Directors and of its Strategic   Planning Committee.&#160; The role,   responsibility and compensation of the Chairman of the Strategic Planning   Committee will be subject to the direction of the Board of Directors from   time to time and will primarily involve the expansion, growth, strategic   direction, vision and technologic innovation of the Company.</font></p>  </td>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Notwithstanding Executive&#146;s commitments, nothing shall preclude Executive from engaging in appropriate civic, charitable, religious and non-profit activities and so long as they do not interfere with or conflict with Company&#146;s policies regarding such matters.</font></p>

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<font size="2" face="Times New Roman">(b)</font></p>  </td>
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<font size="2" face="Times New Roman"><u>Current   Period (2006)</u>:&#160;   Beginning on January 30, 2006, in consultation with the Board of   Directors and the Executive, the Executive may elect to alter his fulltime   commitment to serve as Co-CEO where the other Co-CEO is the Board&#146;s Co-CEO   Nominee.&#160; It is not anticipated that   the Executive will further reduce his commitment earlier than when the   Board&#146;s nominee is fully capable of fulfilling the CEO role without the   Executive as Co-CEO, which may be as early as 2007.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">As Co-CEO,   in addition to the role normally appropriate for a CEO:</font></p>  </td>
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<font size="2" face="Times New Roman">(i)</font></p>  </td>
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<font size="2" face="Times New Roman">Executive   and the Board&#146;s Co-CEO Nominee, will collaborate and cooperate to share the   responsibilities as CEO as they agree between themselves and subject to the   approval of the Board of Directors;</font></p>  </td>
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<font size="2" face="Times New Roman">(ii)</font></p>  </td>
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<font size="2" face="Times New Roman">Executive   will be expected to continue to mentor the Board&#146;s Co-CEO Nominee;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">(iii)</font></p>  </td>
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<font size="2" face="Times New Roman">At the   pleasure of the Board of Directors of the Company the Executive will be   expected to continue, the role of Chairman of the Board and Chairman of the   Strategic Planning Committee of the Board of Directors as described in   Section 2(a)(ii) above; and</font></p>  </td>
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<font size="2" face="Times New Roman">(iv)</font></p>  </td>
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<font size="2" face="Times New Roman">Executive   will be expected to devote such time as is reasonably necessary to manage his   share of the responsibilities in addition to the mentoring, but in no event   will he be expected, in a fiscal year, to average more than 80 hours each   month to work for the   Company in his capacity as Co-CEO.</font></p>  </td>
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<p  align="center"><font size="2" face="Times New Roman">2</font></p>

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<font size="2" face="Times New Roman">(c)</font></p>  </td>
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<font size="2" face="Times New Roman"><u>Final Period   (2007)</u>:&#160;   Beginning on January 1, 2007, the Executive, in consultation with the   Board of Directors, may elect to again alter his commitment.&#160; It is anticipated that beginning in 2007   and assuming successful completion of the mentor function Executive will   relinquish his position as Co-CEO and may or may not continue as the Chairman   of the Board of Directors or of its Strategic Planning Committee and as an   executive officer of the Company as he, in his absolute discretion, shall decide.</font></p>  </td>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation</b></font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>From and after the effective date of this Agreement and through the Period set forth in Section 2(b) above, the Company shall pay Executive half his then current salary, as base compensation, subject to increases and such bonuses and other compensation as the Board may determine in its sole discretion taking into account relevant Company policies and procedures, if any. </font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>From and after the commencement of the Final Period set forth in Section 2(c) above, the Company shall pay Executive such amount as the Board and Executive agree is reasonable having regard to the then role of the Executive.</font></p>

<p><font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursement of Expenses</b></font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>During the Term of this Agreement, the Company shall reimburse Executive for all reasonable expenses incurred by him in the course of performing his duties under this Agreement which are consistent with Company&#146;s policies in effect from time to time with respect to travel, entertainment and other expenses, subject to the company&#146;s requirements with respect to reporting and documentation of such expenses.&#160; Company will pay expenses in maintaining communications capability from Executive&#146;s home and other costs such as is consistent with &#147;office in home&#148; policies as they may be determined by Company from time to time. </font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Options and Restricted Share Units (RSUs)</b></font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>As part of Executive&#146;s compensation, the Company may issue to Executive stock options and or RSUs and the Company may establish vesting rules as approved by the Board in its sole discretion.</font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Notwithstanding the foregoing, all stock options and RSUs shall vest upon occurrence of the first of the following events: </font></p>
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<font size="2" face="Times New Roman">(a)</font></p>  </td>
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<font size="2" face="Times New Roman">the death or   disability of Executive;</font></p>  </td>
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<font size="2" face="Times New Roman">(b)</font></p>  </td>
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<font size="2" face="Times New Roman">the   termination of Executive&#146;s employment with the Company by the Company other   than for Good   Cause (as defined in Section 7 hereafter), or</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">(c)</font></p>  </td>
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<font size="2" face="Times New Roman">the   termination of Executive&#146;s Employment by Executive for Good Reason (as   defined in Section 9 hereafter); or</font></p>  </td>
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<font size="2" face="Times New Roman">3</font></p>

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<font size="2" face="Times New Roman">(d)</font></p>  </td>
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<font size="2" face="Times New Roman">a change in   control as defined in Section 9(g) hereafter; or</font></p>  </td>
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<font size="2" face="Times New Roman">(e)</font></p>  </td>
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<font size="2" face="Times New Roman">if the Board   approves any sale, exchange or other transfer of all or substantially all of   the assets of the Company, or&#160; adopts   any plan or proposal for the liquidation or dissolution of the Company.</font></p>  </td>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Executive may exercise his vested stock options by delivering a written notice to the Company identifying the number of options being exercised, accompanied by payment of the full exercise price.&#160; Executive or his Estate shall have a period of 90 days following the termination of his employment with the Company or other event set forth in this Section 5 to exercise his vested stock options.</font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Executive and the Company acknowledge that the stock option and restricted share unit (RSU) plans are administered by the Compensation Committee of the Board of Directors.&#160; To the extent appropriate to effect the intent of this agreement, the appropriate officers of the Company will recommend to the Compensation Committee of the Board of Directors that Executive&#146;s grant agreements for any current or future options or RSUs be amended or contain language sufficient to reflect both (i) the acceleration of vesting upon the events listed in subsections 5(a) through (e) above, as well as the forfeiture of unvested options in the event Executive&#146;s employment as an officer of the Company is terminated for reasons other than those specified in subsections 5(a) through (e) above.</font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit Programs</b></font></p>

<p><font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Executive shall be entitled to participate in any benefit programs which the Company provides for its executive employees in accordance with Company policies and procedures.&#160; Such benefits may include health insurance, disability insurance, life insurance, cafeteria plans, pension and profit sharing plans, and other employee benefit plans as may be developed and designed from time to time.</font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination by Company for Good Cause</b></font></p>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Executive&#146;s employment under this Agreement may be terminated by the Company for Good Cause upon a minimum of 60 days prior written notice describing in reasonable detail the basis of the Good Cause.&#160; The term &#147;<b>Good Cause</b>&#148; means any one or more of the following acts committed by Executive that have had or that the Board in its sole discretion determines could have a material adverse effect on the Company or result in a lack of confidence or trust in Executive by the Company&#146;s Board of Directors as determined by them in their sole discretion:</font></p>
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<font size="2" face="Times New Roman">(a)</font></p>  </td>
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<font size="2" face="Times New Roman">Executive&#146;s conviction of a criminal or other   statutory offence which has a potential sentence of imprisonment greater than   six (6) months or the Executive&#146;s conviction of a criminal or other statutory   offence (which conviction, through lapse of time or otherwise, is not   subject to appeal) involving,   in the sole discretion of the Board of Directors of the Corporation, moral   turpitude;</font></p>  </td>
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<font size="2" face="Times New Roman">(b)</font></p>  </td>
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<font size="2" face="Times New Roman">Executive&#146;s   possession or use of illegal drugs or prohibited substance, or Executive&#146;s   excessive drinking of alcoholic beverages to such extent that it impairs his   ability to perform his duties and responsibilities under this Agreement;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(c)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Executive&#146;s   commission of theft, fraud, dishonesty, misappropriation, fraud or wilful   misconduct involving the property, business or affairs of the Corporation or   the Subsidiaries or the carrying out of the Executive&#146;s duties, including,   without limitation, any breach by the Executive of the representations,   warranties and covenants contained in Section 21;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(d)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Executive&#146;s wilful failure to properly carry   out the Executive&#146;s duties and responsibilities in accordance with   this Agreement as directed   by the Board of Directors, provided such failure has not been cured within   the 60-day notice period and there is only one such failure;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(e)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">the   Executive&#146;s breach of a material fiduciary duty owed to the Company or the   Subsidiaries; or</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(f)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">the   Executive&#146;s refusal to follow the lawful written direction of the Board of   Directors of the Company.</font></p>  </td>
 </tr>
</table>

<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>If
the Company terminates this Agreement for Good Cause, the Company shall pay to
Executive his full salary, bonus and benefits to which he is then entitled
through the date of termination specified in the Company&#146;s Notice of
Termination.</font></p>

<p><font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination by Company Without Good Cause</b></font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Company may terminate this Agreement without Good Cause by 90 days prior written notice.&#160; If the Company terminates Executive&#146;s employment without Good Cause, the Company willcontinue to pay to Executive:</font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(a)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">as severance, the Executive&#146;s compensation (including salary,   bonuses, and other benefits) under this Agreement through to   the date of termination specified in the Company&#146;s Notice of Termination, however, at Company&#146;s discretion   it can make such a cash payment in lieu of 90 days notice; and</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(b)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">plus an additional amount equal to Executive&#146;s then annual   compensation (including salary, bonuses, and other benefits) at the time of   termination (the &#147;<b>Severance Proceeds</b>&#148;).&#160; The Severance Proceeds shall   be paid in periodic installments, no less frequently than monthly, during the   12 months following the Notice Period, and shall not be mitigated by virtue   of the Executive obtaining employment elsewhere.&#160; The Company shall maintain or pay the cost of maintaining   during the 12-month period following termination all medical, health, life   and disability benefits or coverage at the same level as previously provided   to Executive by the Company.</font></p>  </td>
 </tr>
</table>

<p  align="center"><font size="2" face="Times New Roman">5</font></p>

<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>

<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>At the Company&#146;s discretion it may make a one-time cash payment in lieu of the above other than in respect of the cost of maintaining during the 12-month period following termination all medical, health, life and disability benefits or coverage at the same level as previously provided to Executive by the Company.</font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination by Executive with Good Reason&#160; </b></font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Executive shall be entitled to receive the Severance Proceeds described in Section 8(a) and (b) above in the event Executive terminates his employment with Good Reason.&#160; For purposes of this Agreement &#147;<b>Good Reason</b>&#148; shall mean action by the Company, which has the effect of or results in: </font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(a)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">diminishing Executive&#146;s then annual compensation;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(b)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">reassigning Executive to another position other than as set forth in   this Agreement, or assigning Executive duties that are inconsistent with his   position with the Company and this Agreement;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(c)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">directing or assigning Executive to perform any act, or to refrain   from performing any act, constituting a violation of law with respect to   which Executive reasonably concludes that he or the Company could be subject   to civil or criminal penalties or damages and as to which he has notified the   board of directors;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(d)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">causing a material beach of any other provision of this Agreement;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(e)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">failing to continue in effect any material Executive benefit plan,   program, or arrangement in which Executive was previously participating (or   plans, programs or arrangements providing Executive with substantially   similar benefits) unless such plans have been altered for the majority of   other Company executives;</font></p>  </td>
 </tr>
</table>

<p>
<font size="2" face="Times New Roman">provided, however, that any such action referred to in subparagraphs 9(a) to 9(e) by the Company shall not constitute Good Reason unless the Company has failed to substantially cure such action within thirty (30) days following the delivery by Executive of written notice to the Company specifying in reasonable detail the nature of the claimed action.&#160; It will constitute Good Reason if the Company takes such actions referred to in subparagraphs 9(a) to 9(e) again after having done so once before, notwithstanding the failure on the Company&#146;s part was cured on the first occasion.</font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(f)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">the termination of Executive&#146;s employment following a Change in   Control, provided that Executive provides notice of his termination within   365 days of the Change in Control;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(g)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">any other material breach by the Company of the terms of this   Agreement.</font></p>  </td>
 </tr>
</table>


<p  align="center">
<font size="2" face="Times New Roman">6</font></p>

<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>
<p>
<font size="2" face="Times New Roman">For purposes of this Agreement a <u>Change in Control</u> shall mean:</font></p>
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 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(a)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">If any   change in the control of the Company results in any person or entity having   more than 50% beneficial ownership or control of the Company&#146;s outstanding   common stock;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(b)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">If any &#147;<b>Person</b>&#148; or group of Persons (as such   terms are used in Sections 13(d) and 14(d) (2) of the <i>Securities and Exchange Act</i>), shall   become the beneficial owner (within the meaning of Rule 13(d) (3) under the <i>Exchange Act</i>) of fifty percent (50%) or   more of the outstanding common stock (a &#147;<b>Fifty   Percent Beneficial Owner</b>&#148;) of the Company;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(c)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">If there   shall be consummated a consolidation or merger of Company, in which Company   is not the continuing or surviving corporation or other entity, other than a   consolidation or merger of the Company in which immediately after the   transaction, (A) the holders of shares of the Company common stock   immediately prior to the consolidation or merger have at least fifty percent   (50%) of the total voting power of the surviving corporation or other entity,   (B) at least a majority of the then Board of Directors of the resulting   corporation or other entity were members of the Incumbent Board, being the   Board of&#160; Directors after a   consolidation or merger of the Company, (C) no person or entity is a Fifty Percent   Beneficial Owner of the continuing or surviving corporation or other entity;   and</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(d)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">If there   shall be consummated a sale, lease, exchange or other transfer (in one   transaction or a series of related transactions) of all, or substantially   all, of the assets of the Company.</font></p>  </td>
 </tr>
</table>

<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive&#146;s Death or Disability</b></font></p>

<p><font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>In the event of the Executive&#146;s death or disability, any sums due to Executive under any Section of this Agreement will be distributed to his estate or as he or his representatives direct.&#160; The amounts due to the Executive in the event of his death or disability will be consistent with Company policy for other executives, however, in the case of death no notice or payment in lieu of notice is required and in the case of disability, 90 days notice is required and any payments which would otherwise be made after death will be accelerated to be made as soon as possible thereafter.&#160; Executive&#146;s disability means, for purposes of this Agreement, such physical or mental incapacity of Executive that renders him completely unable to perform his responsibilities hereunder during any consecutive period of 90
days or aggregate period of 180 days within any 12-month period, as determined by an independent physician agreed to by the Board and Executive.</font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Board Role</b></font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>For greater certainty, termination of the Executive&#146;s employment role is independent of his role on the Board of Directors or its Strategic Planning Committee.</font></p>
<p  align="center">
<font size="2" face="Times New Roman">7</font></p>

<hr size="1" width="100%" noshade color=black>
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<PAGE>
<br>

<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination by Executive without Cause or Good Reason after December 31, 2006</b></font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Notwithstanding the anticipation of Executive&#146;s continued employment after 2006, the Executive may terminate all employment obligations during 2007 upon 90 days notice.&#160; For the period of ninety days after delivery of the notice through to termination, compensation will continue to be paid in accordance with this Agreement.&#160; After termination no further amounts will be paid except for an additional 12 months salary and benefits at what ever the rate of pay was during 2006. </font></p>

<p><font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>For greater clarity, in addition should Executive decide not to continue in an executive capacity post 2006 by his own choice or because he and the company failed to reach mutually acceptable continued employment terms with the Company, he will receive a severance equal to his 2006 remunerations including salary and benefits at what ever the rate of pay was in effect during 2006. </font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return of Company Property</b>&#160; </font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>All records, designs, patents, business plans, financial statements, manuals, memoranda, lists and other property delivered to or compiled by Executive by or on behalf of the Company or any of the Companies or their representatives, vendors or customers which pertain to the business of the Company or any of the Companies shall be and remain the property of the Company or the Companies, as the case may be, and be subject at all times to their discretion and control.&#160; Likewise, all correspondence, reports, records, charts, advertising materials and other similar data pertaining to the business, activities or future plans of the Company or the Companies which is collected by Executive shall be delivered promptly to the Company without request by it upon termination of Executive&#146;s employment.</font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventions&#160; </b></font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Executive shall disclose promptly to the Company any and all significant conceptions and ideas for inventions, improvements and valuable discoveries, whether patentable or not, which are conceived or made by Executive, solely or jointly with another, during the period of employment, if conceived during employment, and which are directly related to the business or activities of the Company and which Executive conceives as a result of his employment by the Company.&#160; Executive hereby assigns and agrees to assign all his interests therein to the Company or its nominee.&#160; Whenever requested to do so by the Company, Executive shall execute any and all applications, assignments or other instruments that the Company shall deem necessary to apply for and obtain Letters Patent of the United States or any foreign country or
to otherwise protect the Company&#146;s interest therein.</font></p>

<p  align="center"><font size="2" face="Times New Roman">8</font></p>

<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>

<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification </b></font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>In addition to any separate agreements between Executive and the Company relating to indemnification, or any indemnification provided under the Company&#146;s articles of incorporation, or by-laws, the Company will defend, indemnify and hold harmless Executive, to the fullest extent permitted by applicable law, with respect to any liability, damage, cost or expense (including reasonable counsel fees) incurred in connection with the defense of any claim, action, suit or proceeding to which he is party, or threatened with suit or claim, by reason of his being or having been an officer or director of the Company or any subsidiary or affiliate of the Company, or his serving or having served at the request of the Company as a director, officer, employee or agent of another corporation of a partnership, joint venture, trust,
business organization, enterprise or other entity, including service with respect to employee benefit plans. &#160;In addition, Company shall advance to Executive any expenses required to defend any action, suit or proceeding subject to refund to the Company as provided by applicable Florida Law.</font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arbitration</b></font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Any controversy or claim arising out of or relating to this Agreement or to the breach thereof pursuant to Executive&#146;s employment by the Company shall be settled exclusively by binding arbitration conducted in Orlando, Florida in accordance with the Employment Rules of the American Arbitration Association then in effect, by a single independent arbitrator selected mutually by the Company and Executive.&#160; If the parties cannot agree on an arbitrator, within 30 days of commencement of an arbitration proceeding hereunder, either party may request that the American Arbitration Association select a candidate in accordance with the rules.&#160; The decision of the arbitrator shall be final and binding.&#160; Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction
thereof.&#160; The initial filing fees for any arbitration proceeding conducted hereunder shall be borne by the Company, unless otherwise determined by the arbitrator. </font></p>

<p><font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation or Arbitration Expenses</b></font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>In any action or dispute, at law or in equity, that may arise under or otherwise relate to the terms of this Agreement, the prevailing party will be entitled to full reimbursement of his or its litigation or arbitration expenses from the other party.&#160; Litigation and arbitration expenses include attorney&#146;s fees, defense costs, witness fees and other related expenses including paralegal fees, travel and lodging expenses and costs, through trial and appeal, and/or through the finalization of the arbitration and the entering of the arbitrators award.&#160; Reimbursement is due within 30 days of written notice after prevailing.</font></p>
<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitions</b></font></p>
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  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(a)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">&#147;<b>Business Records</b>&#148;, with   respect to a Person, means all business and financial records of or relating   to the Person or the Person&#146;s business (whether or not recorded on computer)   including but not limited to customer lists, lists of suppliers, surveys,   plans and specifications, information about personnel, purchasing and   internal cost information, operating manuals, engineering standards and   specifications, marketing and development plans, price and cost data, price   and fee amounts, pricing and billing policies, quoting procedures, marketing   techniques and methods of obtaining business, forecasts and forecast   assumptions and volumes, and future plans and potential strategies, contracts   and their contents, customer or client services, data provided by customers   or clients and the type, quantity and specifications of products and services   purchased, leased, licensed or received by customers or clients of the Person   or
any subsidiary of the Person;</font></p>  </td>
 </tr>
</table>

<p  align="center"><font size="2" face="Times New Roman">9</font></p>

<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>

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 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(b)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">&#147;<b>Confidential Information</b>&#148;,   with respect to a Person, means all information and facts (including   Intellectual Property and Business Records) relating to the business or   affairs of the Person and the subsidiaries of the Person or their respective   customers, clients or suppliers that are confidential or proprietary, whether   or not such information or facts: (i) are reduced to writing; (ii) were   created or originated by an employee; or (iii) are designated or marked as   &#147;confidential&#148; or &#147;proprietary&#148; or some other designation or marking. For   greater certainty, Confidential Information includes, but is not limited to:</font></p>  </td>
 </tr>
</table>

<BR>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="17%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(i)</font></p>  </td>
  <td width="77%" valign="top">
  <p>
<font size="2" face="Times New Roman">work product resulting from or relating to work or projects performed   or to be performed by an employee, including but not limited to interim and   final lines of inquiry, hypotheses, research and conclusions and the methods,   processes, procedures, analyses, techniques and audits used in connection   with research and conclusions;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(ii)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">computer software of any type or form and in any stage of actual or   anticipated development, including but not limited to, programs and program   modules, routines and subroutines, procedures, algorithms, design concepts,   design specifications (design notes, annotations, documentation, flowcharts,   coding sheets, and the like), source code, object code and load modules,   programming, program patches and system designs;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(iii)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">all information which becomes known to an employee as a result of the   employee&#146;s employment by the Person or any of the Person&#146;s subsidiaries,   which the employee, acting reasonably, believes or ought to believe is   confidential or proprietary information from its nature, or from the   circumstances surrounding its disclosure to the employee;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  colspan="2" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  colspan="2" valign="top">
  <p>
<font size="2" face="Times New Roman">With respect to the employment of the Executive by the Corporation,   Confidential Information does not include the general skills and experience   gained during the Executive&#146;s employment or engagement with the Corporation   or any of the Subsidiaries which the Executive could reasonably have been   expected to acquire in similar employment or engagements with other   employers;</font></p>  </td>
 </tr>
</table>

<BR>
<p  align="center">
<font size="2" face="Times New Roman">10</font></p>

<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>

<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">
  <tr>
    <td valign="top"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td valign="top"><p> <font size="2" face="Times New Roman">(c)</font></p></td>
    <td valign="top"><p> <font size="2" face="Times New Roman">&#147;<b>Intellectual Property</b>&#148; means all intellectual property including but not limited to trade marks and trade mark applications, trade names, certification marks, patents and patent applications, copyrights, know-how, formulae, processes, inventions, technical expertise, research data, trade secrets, industrial designs and other similar property, and all registrations and applications for registration thereof, and includes computer software, formulae, processes, patterns, discoveries, devices or compilations of information (including production data, technical and engineering data, test data and test results, and the status and details of research and development of products and services);</font></p></td>
  </tr>
  <tr>
    <td  valign="top"><p><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="top"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="top"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>

 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(d)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">&#147;<b>Person</b>&#148; means any   individual, partnership, limited partnership, joint venture, syndicate, sole   proprietorship, company or corporation with or without share capital,   unincorporated association, trust, trustee, executor, administrator or other   legal personal representative, regulatory body or agency, government or   governmental agency, authority or entity however designated or constituted;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(e)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">&#147;<b>Subsidiaries</b>&#148; means all   business entities owned in whole or part by the Company.</font></p>  </td>
 </tr>
</table>

<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Competition Agreement</b></font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(a)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">Executive recognizes that the Company&#146;s willingness to enter into   this Agreement is based in material part on Executive&#146;s agreement to the   provisions of this Section 19 and that Executive&#146;s breach of the provisions   of this Section 19 could materially damage the Company.&#160; Subject to the further provisions of this   Agreement and in consideration of the Company&#146;s agreement to provide   Executive access to Confidential Information as defined below, Executive will   not, during the term of his employment with the Company, and for a period of   five (5) years (unless a lesser period is specified hereafter) immediately   following the termination by the Company of such employment for Cause or in   the event Executive terminates his employment without Good Reason or in the   event Executive is entitled to a Severance Payment in connection with his   termination and such Severance Payment is timely paid directly or indirectly,   for himself
or on behalf of or in conjunction with any other person, company,   partnership, corporation or business of whatever nature:</font></p>  </td>
 </tr>
</table>

<BR>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="17%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(i)</font></p>  </td>
  <td width="77%" valign="top">
  <p>
<font size="2" face="Times New Roman">engage, as an employee, officer, director, shareholder, owner,   partner, joint venturer, or in any managerial capacity, whether as an   employee, independent contractor, consultant or advisor, or as a sales   representative, in any business in direct competition with the Company or any   majority-owned subsidiary or affiliate of the Company (collectively, the   &#147;Companies&#148;);</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(ii)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">for a period of two (2) years call upon any person who is, at that   time, an employee of any of the Companies for the purpose or with the intent   of enticing such employee away from or out of the employ of any of the   Companies;</font></p>  </td>
 </tr>
</table>

<p  align="center">
<font size="2" face="Times New Roman">11</font></p>

<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>

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 <tr>
  <td width="17%" valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(iii)</font></p>  </td>
  <td width="77%" valign="top">
  <p>
<font size="2" face="Times New Roman">call upon any person or entity which is, at that time, or which has   been, within one year prior to that time, a customer of any of the Companies   for the purpose of soliciting or selling products or services in direct   competition with any of the Companies;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(iv)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">call upon any prospective acquisition candidate, on Executive&#146;s own   behalf or on behalf of any competitor, which candidate was, to Executive&#146;s   knowledge, within the preceding one year, either called upon by any of the   Companies or for which any of the Companies made an acquisition analysis, for   the purpose of acquiring such entity; or</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(v)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">disclose customers, whether in existence or proposed, of any of the   Companies to any person, firm, partnership, corporation or business for any   reason or purpose whatsoever except to the extent that any of the Companies   has in the past disclosed such information to the public for valid business   reasons.</font></p>  </td>
 </tr>
</table>

<p><font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Notwithstanding the above, the foregoing covenant shall not be deemed to prohibit Executive from acquiring as an investment (i) not more than 1% of the capital stock of a competing business, whose stock is traded on a national securities exchange, the Nasdaq Stock Market or similar market or (ii) not more than 5% of the capital stock of a competing business whose stock is not publicly traded unless the Board consents to such acquisition.</font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(b)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">Because of the difficulty of measuring economic losses to the Company   as a result of a breach of the foregoing covenant, and because of the   immediate and irreparable damage that could be caused to the Company for   which it would have no other adequate remedy, Executive agrees that foregoing   covenant may be enforced by the Company, in the event of breach by him, by   injunctions and restraining orders.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(c)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">It is agreed by the parties that the foregoing covenants in this   Section 19 impose a reasonable restraint on Executive in light of the   activities and business of the Companies on the date of the execution of this   Agreement and the current plans of the Companies; but it is also the intent   of the Company and Executive that such covenants be construed and enforced in   accordance with the changing activities, business and locations of the   Companies throughout the term of this Agreement.&#160; Following the termination by the Company of Executive&#146;s   employment for Cause or the termination by Executive of his employment   without Good Reason or in the event Executive is entitled to a Severance   Payment in connection with his termination and such Severance Payment is   timely paid, the covenants in this Section 19 will apply only with respect to   the activities, business and locations of the Companies on the effective date   of such
termination.</font></p>  </td>
 </tr>
</table>

<p  align="center"><font size="2" face="Times New Roman">12</font></p>

<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>

<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(d)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">The covenants in this Section 19 are severable and separate, and the   unenforceability of any specific covenant shall not affect the provisions of   any other covenant.&#160; Moreover, in the   event any court of competent jurisdiction shall determine that the scope,   time or territorial restrictions set forth are unreasonable, then it is the   intention of the parties that such restrictions be enforced to the fullest   extent which the court deems reasonable, and the Agreement shall thereby be   reformed.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(e)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">All of the covenants in this Section 19 shall be construed as an   agreement independent of any other provision in this Agreement, and the   existence of any claim or cause of action of Executive against the Company,   whether predicated on this Agreement or otherwise, shall not constitute a   defence to the enforcement by the Company of such covenants. It is   specifically agreed that the period of five (5) years, following termination   by the Company of Executive&#146;s employment for Cause or the termination by   Executive of his employment without Good Reason or in the event Executive is   entitled to a Severance Payment in connection with his termination and such   Severance Payment is timely paid during which the agreements and covenants of   Executive made in this Section 19 shall be effective, shall be excluded from   such computation any time during which Executive is in violation of any   provision of this Section 19.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(f)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">The Company and Executive hereby agree that this covenant is a   material and substantial part of this Agreement.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(g)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">The parties agree that the covenants in this Section 19 shall apply   in the event this Agreement expires without renewal.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(h)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Notwithstanding any provision herein to the contrary, in the event   the covenants in this Section 19 apply because Executive is entitled to a   Severance Payment, the duration of such covenants following the termination   of Executive&#146;s employment shall not exceed the greater of (i) the balance of   the term of this Agreement at the time of termination or (ii) five (5) years.</font></p>  </td>
 </tr>
</table>

<p><font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality</b></font></p>
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 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(a)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">All Confidential Information of the Corporation, the Subsidiaries,   and their respective customers and clients, whether it is developed by the   Executive during the Employment Period or by others employed or engaged by or   associated with the Corporation or any of the Subsidiaries, is the exclusive   property of the Corporation, any of the Subsidiaries or their respective   customers or clients, and shall at all times be regarded, treated and   protected as such, as provided in this Agreement.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(b)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">As a consequence of the acquisition of Confidential Information, the   Executive will occupy a position of trust and confidence with respect to the   affairs and business of the Corporation, the Subsidiaries, and their   customers and clients.&#160; In view of the   foregoing, the Executive agrees that it is reasonable and necessary for the   Executive to make the following covenants regarding the Executive&#146;s conduct   during and subsequent to the Employment Period:</font></p>  </td>
 </tr>
</table>

<p  align="center"><font size="2" face="Times New Roman">13</font></p>

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<div style="page-break-before:always"></div>
<PAGE>
<br>

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 <tr>
  <td width="17%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(i)</font></p>  </td>
  <td width="77%" valign="top">
  <p>
<font size="2" face="Times New Roman">The Executive shall not disclose Confidential Information of the   Corporation, the Subsidiaries, or their respective customers or clients to   any Person (other than as necessary in carrying out the Executive&#146;s duties on   behalf of the Corporation) at any time during or subsequent to the Employment   Period without first obtaining the Corporation&#146;s consent, and the Executive   shall take all reasonable precautions to prevent inadvertent disclosure of   any such Confidential Information. This prohibition includes, but is not   limited to, disclosing or confirming the fact that any similarity exists   between such Confidential Information and any other information.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(ii)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">The Executive shall not use, copy, transfer or destroy any   Confidential Information of the Corporation, the Subsidiaries, or their   respective customers or clients (other than as necessary in carrying out the   Executive&#146;s duties on behalf of the Corporation) at any time during or   subsequent to the Employment Period without first obtaining the Corporation&#146;s   consent, and the Executive shall take all reasonable precautions to prevent   inadvertent use, copying, transfer or destruction of any such Confidential   Information. This prohibition includes, but is not limited to, licensing or   otherwise exploiting, directly or indirectly, any products or services which   embody or are derived from such Confidential Information or exercising   judgment or performing analysis based upon knowledge of such Confidential   Information.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(iii)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Within five days after the termination of the Executive&#146;s employment   by the Corporation on any basis, or of receipt by the Executive of the   Corporation&#146;s written request, the Executive shall promptly deliver to the   Corporation all property of or belonging to or administered by the   Corporation or any of the Subsidiaries including without limitation all   Confidential Information of the Corporation, the Subsidiaries and their   respective customers and clients that is embodied in any way, whether   physical, or in electronic, magnetic, optical or other ephemeral form, and   that is in the Executive&#146;s possession or under the Executive&#146;s control.</font></p>  </td>
 </tr>
</table>

<BR>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(c)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">The Executive acknowledges and agrees that the obligations under this   Section 20 are to remain in effect in perpetuity.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(d)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Nothing in this Section 20 shall preclude the Executive from   disclosing or using Confidential Information of the Corporation, the   Subsidiaries, or their respective customers and clients at any time if:</font></p>  </td>
 </tr>
</table>

<p  align="center">
<font size="2" face="Times New Roman">14</font></p>

<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>

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 <tr>
  <td width="17%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(i)</font></p>  </td>
  <td width="77%" valign="top">
  <p>
<font size="2" face="Times New Roman">such Confidential Information is available to the public or in the   public domain at the time of such disclosure or use, without breach of this   Agreement; or</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(ii)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">disclosure of such Confidential Information is required to be made by   any law, regulation, governmental body, or authority or by court order   provided that before disclosure is made, notice of the requirement is   provided to the Corporation, and to the extent possible in the circumstances,   the Corporation is afforded an opportunity to dispute the requirement; or</font></p>  </td>
 </tr>
 <tr>
   <td  valign="top"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
   <td  valign="top"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
   <td  valign="top"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(iii)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">such Confidential Information becomes available to the Executive on a   non-confidential basis from a source other than the Corporation, the   Subsidiaries, or their respective customers or clients without breach of this   Agreement.</font></p>  </td>
 </tr>
</table>

<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties</b></font></p>
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  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(a)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman">The obligations of the Executive as set forth in Sections 19 and 20   of this Agreement will be deemed to have commenced as of the date on which   the Executive was first employed by the Corporation.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(b)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">The Executive understands that the Corporation and the Subsidiaries   have expended significant financial resources in developing their products   and services and their Confidential Information.&#160; Accordingly, a breach or threatened breach by the Executive of   any of Sections 1 and 20 could   result in unfair competition with the Corporation and could result in the   Corporation suffering irreparable harm that can neither be calculated nor   fully or adequately compensated by the recovery of damages alone.   Accordingly, the Executive agrees that the Corporation will be entitled to   interim and permanent injunctive relief, specific performance and other   equitable remedies, in addition to any other relief to which the Corporation   may become entitled.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(c)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">The Executive acknowledges and agrees that the obligations under each   of Sections 19 and 20 are to remain in effect in accordance with each of   their terms and will exist and continue in full force and effect despite any   breach or repudiation, or alleged breach or repudiation, of this Agreement or   the Executive&#146;s employment (including, without limitation, the Executive&#146;s   wrongful dismissal) by the Corporation.</font></p>  </td>
 </tr>
</table>

<p>
<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous</b></font></p>
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  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(a)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman"><b>Entire Agreement</b>.&#160; This Agreement embodies the entire Agreement and understanding   between the Company and Executive relating to the subject matter hereof.&#160; This Agreement supersedes and cancels all   prior agreements between the Company and Executive, whether written or oral,   relating to the employment of Executive.</font></p>  </td>
 </tr>
</table>

<p  align="center">
<font size="2" face="Times New Roman">15</font></p>

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<div style="page-break-before:always"></div>
<PAGE>
<br>


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  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(b)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman"><b>Governing Law</b>.&#160; This Agreement is governed by the laws of the State of   Florida.&#160; In any action arising out of   this Agreement, the parties stipulate and agree that the federal and or state   courts serving Orange County, Florida shall have exclusive jurisdiction, and   venue shall be proper therein.</font></p>  </td>
 </tr>
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  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(c)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman"><b>Severability</b>.&#160; If any of the provisions of this Agreement are held invalid for   any reason, the remainder will not be affected and will remain in full force   and effect in accordance with its terms.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(d)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman"><b>Notice</b>.&#160;   Any notice, request, or instruction to be given hereunder shall be in   writing and shall be deemed given when personally delivered or sent by   telecopy transmission or three (3) days after being sent by United States   mail, postage prepaid to the parties at their respective address set forth   below.</font></p>  </td>
 </tr>
</table>

<BR>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

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  <td width="17%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(i)</font></p>  </td>
  <td width="77%" valign="top">
  <p>
<font size="2" face="Times New Roman">To the Company:</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">FARO   TECHNOLOGIES, INC.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Attention:&#160; Chief Financial   Officer</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">125   Technology Park</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Lake Mary, FL&#160;   32746</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(ii)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">To   Executive:</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Simon Raab</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">FARO   Technologies, Inc.</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">125   Technology Park</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Lake Mary, FL&#160;   32746</font></p>  </td>
 </tr>
</table>

<BR>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="11%" valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="6%" valign="top">
  <p>
<font size="2" face="Times New Roman">(e)</font></p>  </td>
  <td width="83%" valign="top">
  <p>
<font size="2" face="Times New Roman"><b>Amendment and Waiver.&#160; </b>No   waiver of any provision of this Agreement will be valid unless in writing and   signed by the person against whom it is sought to be enforced.&#160; The failure by either party to insist upon   strict performance of any provision will not be construed as a waiver or   relinquishment of the right to insist upon strict performance of the same   provision at any other time, or any other provision of this Agreement.</font></p>  </td>
 </tr>
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  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(f)</font></p>  </td>
  <td  valign="top">
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<font size="2" face="Times New Roman"><b>Survival of Rights and Obligations.&#160;   </b>All post-termination rights and obligations   of the Executive and the Company pursuant to this Agreement survive the   termination of this Agreement.&#160; This   Agreement shall inure to the benefit of successors and assigns.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">(g)</font></p>  </td>
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<font size="2" face="Times New Roman"><b>Further Assurances.&#160; </b>Each   party hereto shall cooperate and shall take such further action and shall   execute and deliver such further documents as may be reasonably necessary in   order to carry out the provisions and purposes of this Agreement.</font></p>  </td>
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<p  align="center"><font size="2" face="Times New Roman">16</font></p>

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<font size="2" face="Times New Roman">(h)</font></p>  </td>
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<font size="2" face="Times New Roman"><b>No Strict</b><b> Construction.</b>&#160; The parties have jointly participated in   the negotiation and drafting of this Agreement. In the event an ambiguity or   question of intent or interpretation arises, this Agreement shall be   construed as if drafted jointly by the parties hereto, and no presumption or   burden of proof shall arise favoring or disfavoring any party by virtue of   the authorship of any of the provisions of this Agreement.</font></p>  </td>
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<font size="2" face="Times New Roman">(i)</font></p>  </td>
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<font size="2" face="Times New Roman"><b>Counterparts.&#160; </b>This   Agreement may be executed in multiple counterparts, each of which is an   original but which shall together constitute one and the same instrument.</font></p>  </td>
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<font size="2" face="Times New Roman">(j)</font></p>  </td>
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<font size="2" face="Times New Roman"><b>Effective Date.&#160; </b>This   effective date of this Agreement shall be January 1, 2006, regardless of the   actual date of signature or commencement of employment<b>.</b></font></p>  </td>
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<font size="2" face="Times New Roman">(k)</font></p>  </td>
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<font size="2" face="Times New Roman"><b>Notice of Termination</b>.&#160; If and when the Company wishes to   terminate this Agreement it will issue a written notice of termination   specifying the detail of its intentions and grounds for termination (&#147;<b>Notice of Termination</b>&#148;).</font></p>  </td>
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<font size="2" face="Times New Roman">(l)</font></p>  </td>
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<font size="2" face="Times New Roman"><b>Notice Period.&#160; </b>The   time between the delivery of the Notice of Termination and the date of   termination specified in the Company&#146;s Notice of Termination (&#147;Notice   Period&#148;).</font></p>  </td>
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<font size="2" face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF</b> the parties have executed this Agreement effective the day and year set forth above.</font></p>

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<font size="2" face="Times New Roman"><b>FARO TECHNOLOGIES, INC.</b></font></p>  </td>
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<font size="2" face="Times New Roman">By:</font></p>  </td>
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<font size="2" face="Times New Roman">/s/ Jay Freeland</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">/s/&nbsp;SimonRaab</font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="2" face="Times New Roman"><b>SIMON RAAB</b></font></p>  </td>
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<p  align="center"><font size="2" face="Times New Roman">17</font></p>

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