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                                                                   Exhibit 10.35

                           EMPLOYEE LEASING AGREEMENT

         This Agreement is made by and between Nationwide Mutual Insurance
Company ("NMIC") and Nationwide Financial Services, Inc. ("NFS") on behalf of
itself and its subsidiaries (collectively, "NF") as of July 1, 2000.

         WHEREAS, the parties have agreed to lease employees from each other and
allocate the cost of such employees pursuant to the terms of the Cost Sharing
Agreement to which they are parties;

         WHEREAS, the parties desire to further clarify and document their joint
understanding of the terms of such employee leasing arrangement;

         NOW, THEREFORE, the parties agree as follows:

         1.       Definitions.
                  ------------

                  Lessor means the party which is the primary employer of an
employee whose services are leased to another party pursuant to this agreement,
and which agrees to lease such employee to such other party.

                  Lessee means the party which receives the services of an
employee pursuant to this agreement and which is obligated to compensate the
other party for the services of such employee.

         2        Leasing of Employees.
                  --------------------

                  Each party, when a Lessor, agrees to lease certain employees
who appear on the payroll records of such Lessor or its subsidiaries to the
Lessee to perform services for the Lessee in addition to the services that such
employees perform for the Lessor. The number, identities, positions, duties,
qualifications, experience, education, and skills of such employees shall be as
agreed by the parties from time to time. Such employees may include, but are not
limited to, appointed and elected officers who provide services to both NMIC and
NF.

         2.       Payment.
                  -------

         Each party which is a Lessee will, and will cause each of its
subsidiaries which is a Lessee under this Agreement to, pay the Lessor for a
share of the Lessor's costs for salary, benefits and payroll taxes for the
employees leased from a Lessor, based on the allocation of the time of such
employees that the parties may agree upon from time to time. Payment shall be
made at least quarterly, and not later than the last day of the first calendar
month following the end of each calendar quarter. The administrative details of
such payments, such as, but not limited to, time, place and manner, shall be as
agreed upon by the parties, subject to the provisions of the preceding sentence.
The Lessor shall withhold the appropriate taxes from each payment made to the
leased employees and shall remit such taxes in a timely manner to the relevant
taxing authority.

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         3.       Status of Assigned Employees.
                  ----------------------------

         It is the intent of the parties that the leased employees shall at all
times be treated as employees of the Lessor for tax withholding, payroll,
workers compensation, and benefit plan participation purposes, but that such
employees shall be treated as employees of the Lessee for all other purposes
when providing services to the Lessee. The Lessee shall control the performance
of services by the leased employees on behalf of the Lessee, and may choose at
any time to terminate the services performed by such employees for the Lessee.
The Lessee shall have the exclusive authority to determine the value of the
services performed by the leased employees on behalf of the Lessee and the
compensation, including equity compensation, to be paid to such employees for
such services.

         4. Miscellaneous. Cost allocation methods applied for purposes of this
Agreement shall be completed in accordance with statutory accounting principles.
Expenses shall be allocated and the method of expense apportionment used shall
be consistent with guidance contained in Statement of Statutory Accounting
Principals No. 70, Allocation of Expenses. Each party to this Agreement and the
Ohio Department of Insurance shall have access to all records associated with
this agreement during normal business hours. All amendments to the agreement
shall be submitted to the Ohio Department of Insurance.

         5.       Term.
                  ----

         This Agreement may be terminated at any time by either party upon
notice to the other party.

NATIONWIDE MUTUAL INSURANCE COMPANY

By:
   -----------------------------------

NATIONWIDE FINANCIAL SERVICES, INC.

By:
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                                                                    EXHIBIT 10.1

                             APPLIED INNOVATION INC.

                              EMPLOYMENT AGREEMENT
                              --------------------

         This Agreement is made this 1st day of January, 2001 by and between
Karl F. Fox and APPLIED INNOVATION INC., a Delaware corporation with its
principal office at 5800 Innovation Drive, Dublin, Ohio 43016, and its
affiliated subsidiaries, successors and assigns (the "Company").

                                     WHEREAS

         The company is engaged in the business of developing, manufacturing and
marketing data communications equipment, Internet access devices, software and
services to telephone companies, interexchange telephone carriers, cable
television companies, and electric utilities, for alarm data communications,
network mediation and management, interoperability of networks, and network
switching and routing, and develops and uses valuable technical and
non-technical trade secrets and other confidential information which it desires
to protect.

         The Company invests considerable resources in recruiting, training and
developing employees to perform specialized services and fill individualized
customer needs in a highly competitive market. The Company has also invested
extensive resources in developing and retaining its major customers and its
contacts with key employees of its major customers.

         You desire to be employed by the Company in a position of trust and
confidence in which you may receive or contribute to the confidential
information of the Company.

         The Company desires to maximize your effectiveness and professional
growth by allowing you access to its trade secrets and confidential information,
but at the same time wishes to ensure that you exert your full-time best efforts
on behalf of the Company, except as provided herein, and to ensure that the
Company's trade secret and confidential information is maintained in confidence
and used only for the benefit of the Company and not for the purpose of
competition with the Company.

         THEREFORE, the parties agree as follows:

         1. CONSIDERATION. The Company shall employ you and provide you with
access to certain Confidential Information as defined in this Agreement and
other valuable consideration.

         2. RESTRICTED EMPLOYMENT. While employed by the Company, you shall
devote your best efforts to the business of the Company and shall not engage in
any outside employment or consulting work without first securing the written
consent of the Company. This paragraph

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shall not restrict participation in any uncompensated position, or in any
compensated position as a member of any Board of Directors or Board of Trustees.

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         3.       CONFIDENTIAL INFORMATION.

                  a. As used throughout this Agreement, the term "Confidential
Information" means any information you acquire during employment by the Company
(including information you conceive, discover or develop) which is not readily
available to the general public and which relates to the business, including
research and development projects, of the Company, its subsidiaries or its
affiliated companies.

                  b. Confidential Information INCLUDES, without limitation,
information of a technical nature (such as secrets, inventions, discoveries,
product requirements, designs, software codes and manufacturing methods),
matters of a business nature (such as customer lists, the identities of customer
contacts, information about customer requirements and preferences, the terms of
the Company's contracts with its customers and suppliers, and the Company's
costs and prices), personnel information (such as the identities, duties,
customer contacts, and skills of the Company's employees) and other financial
information relating to the Company and its customers (including credit terms,
methods of conducting business, computer systems, computer software, personnel
data, and strategic marketing, sales or other business plans). Confidential
Information may or may not be patentable.

                  c. Confidential Information DOES NOT INCLUDE information which
you learned prior to employment with the Company from sources other than the
Company, information you develop after employment from sources other than the
Company's Confidential Information or information which is readily available to
persons with equivalent skills, training and experience in the same fields or
fields of endeavor as you. You must presume that all information that is
disclosed or made accessible to you during employment by the Company is
Confidential Information if you have a reasonable basis to believe the
information in Confidential Information or if you have notice that the Company
treats the information as Confidential Information.

         4.       CONFIDENTIALITY.

                  a. Except in furtherance of the Company's business, you shall
not at any time, either during or for five years following employment with the
Company, make use of, or disclose to any other person or entity, any
Confidential Information unless (i) the specific information becomes public from
a source other than you or another person or entity that owes a duty of
confidentiality to the Company AND (ii) twelve months have passed since the
specific information became public. However, you may discuss Confidential
Information with employees of the Company when necessary to perform your duties
to the Company.

                  b. Upon Employment Separation, you shall deliver to the
Company all copies, notes, documents or records of any kind that relate to any
Confidential Information. As used herein, the term "notes" means written or
printed words, symbols, pictures, numbers or formulae. As used throughout this
Agreement, the term "Employment Separation" means the separation and/or
termination of your employment with the Company, regardless of the time, manner
or cause of such separation or termination.

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         5.       INVENTIONS.

                  a. As used throughout this Agreement, the term "Inventions"
means any inventions, improvements, designs, plans, discoveries or innovations
of a technical or business nature, whether patentable or not, relating in any
way to the Company's business or contemplated business if the Invention is
conceived or reduced to practice by you during your employment by the Company.
Inventions includes all data, records, physical embodiments and intellectual
property pertaining thereto. Inventions reduced to practice within 6 months
following Employment Separation shall be presumed to have been conceived during
employment.

                  b. Inventions are the Company's exclusive property and shall
be promptly disclosed and assigned to the Company without additional
compensation of any kind. If requested by the Company, you, your heirs, your
executors, your administrators or legal representative will provide any
information, documents, testimony or other assistance needed for the Company to
acquire, maintain, perfect or exercise any form of legal protection that the
Company desires in connection with an Invention.

                  c. Upon Employment Separation, you shall deliver to the
Company all copies of and all notes with respect to all documents or records of
any kind that relate to any Inventions.

         6.       COVENANT NOT TO COMPETE.

                  a. You acknowledge that the Confidential Information has been
and will be developed and acquired by the Company by means of substantial
expense and effort, that the Confidential Information is a valuable asset of the
Company's business, that the disclosure of the Confidential Information to any
of the Company's competitors would cause substantial and irreparable injury to
the Company's business, and that any customers of the Company developed by you
or others during your employment are developed on behalf of the Company. You
further acknowledge that you have been provided with access to Confidential
Information, including Confidential Information concerning the Company's major
customers, and its technical, marketing and business plans, disclosure or misuse
of which would irreparably injure the Company.

                  b. During employment by the Company and for a period of 12
months following Employment Separation, you shall not (as an owner, shareholder,
officer, employee, manager, consultant or otherwise):

                  (i) Contact any employee of the Company for the purpose of
       discussing or suggesting that such employee resign from employment with
       the Company for the purpose of becoming employed elsewhere;

                  (ii) Provide information about individual employees of the
       Company or personnel policies or procedures of the Company to any person
       or entity, including any individual, agency or company engaged in the
       business of recruiting employees, executives or officers; or

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                  (iii) If you served as an officer of the Company and/or
       performed any duties involving sales, marketing, sales engineering and/or
       product line management in the twelve months preceding Employment
       Separation, you shall not promote, solicit for sale or sell any product
       or service in direct competition with the Company's products or services
       (A) to any entity that purchased over $250,000 in goods and/or services
       from the Company during the 12 months preceding Employment Separation,
       (B) to any entity which you called on for the purpose of promoting or
       selling the Company's products or services during the 12 months preceding
       Employment Separation, or (C) to any entity which received a sales
       proposal from the Company within 12 months of Employment Separation if
       the goods or services which you seek to sell, solicit for sale or promote
       are directly competitive with the goods and services which are the
       subject of the Company's proposal to the entity and the entity has not
       yet rejected the Company's sales proposal.

                  c. The 12-month non-competition period described in Section
6(b) of this Agreement shall be suspended while you engage in any activities in
breach of the Agreement. In the event that a court grants injunctive relief to
the Company for your failure to comply with Section 6, the non-competition
period shall begin again on the date such injunctive relief is granted.

                  d. Nothing contained in the Section 6 shall be construed as
limiting your obligations under Sections 3 or 4 or this Agreement concerning
Confidential Information and Confidentiality.

         7. REMEDIES. Without limiting any of the Company's other remedies, you
agree that, in the event you fail to comply with this Agreement in any way, the
Company shall be entitled to injunctive relief against you to enforce your
obligations under this Agreement and you shall reimburse the Company for its
reasonable expenses, including attorneys' fees, incurred in seeking to enforce
this Agreement. If the Company seeks to enforce its rights under this Agreement
in a court and is denied any relief, the Company shall reimburse you for your
reasonable expenses, including attorneys' fees, in defense of that court action.

         8.  EXIT INTERVIEW. Prior to Employment Separation, you shall attend
an exit interview if desired by the Company and shall, in any event, inform the
Company at the earliest possible time of the identity of your future employer
and of the nature of your future employment.

         9.   NO WAIVER. Any failure by the Company to enforce any provision
of this Agreement shall not in any way affect the Company's right to enforce
such provision or any other provision at a later time.

         10. SAVING. If any provision of this Agreement is later found to be
completely or partially unenforceable, the remaining part of that provision of
any other provision of this Agreement shall still be valid and shall not in any
way be affected by the finding. Moreover, if any provision is for any reason
held to be excessively broad as to time, duration, geographical scope, activity
or subject, such provision shall be interpreted by limiting and reducing it to
preserve enforceability to the maximum extent permitted by law.

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         11. EMPLOYMENT AT WILL; NO LIMITATION. You acknowledge that your
employment by the Company is at-will and that your employment may be terminated
at any time by the Company or you with or without cause. This Agreement is in
addition to and not in place of other obligations of trust, confidence and
ethical duty imposed on you by law.

         12. GOVERNING LAW. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of Ohio without reference to its choice of
law rules.

         13. FINAL AGREEMENT. This Agreement replaces any existing agreement
between you and the Company relating to the same subject matter and may be
modified only by an agreement in writing signed by both you and a duly
authorized representative of the Company.

         14. FURTHER ACKNOWLEDGMENTS. YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED A
COPY OF THIS AGREEMENT, THAT YOU HAVE READ AND UNDERSTOOD THIS AGREEMENT, THAT
YOU UNDERSTAND THIS AGREEMENT AFFECTS YOUR RIGHTS, AND THAT YOU HAVE ENTERED
INTO THIS AGREEMENT VOLUNTARILY.

                                     APPLIED INNOVATION INC.

                                     By:
                                        ----------------------------
                                     Printed:
                                             -----------------------
                                     Its:
                                         ---------------------------

                                     EMPLOYEE:

                                     Signed:
                                            ------------------------
                                     Printed:
                                            ------------------------
                                     Date:
                                          --------------------------

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