Document:

EX-10.2

Introduction

The Executive Incentive Compensation Plan (“EICP” or the “Plan”) for Officers and senior managers
of Charles River Laboratories, Inc. and its affiliated divisions (“Charles River”) is designed to
provide annual financial incentives to those executives, senior managers, and key employees who are
expected to contribute significantly to the future growth and success of Charles River. The Plan
is also intended to attract and retain talented individuals with desired skills in an increasingly
competitive labor market.

	 	 	 
	The Plan
	•

	 	Eligibility

Participation in the Plan is limited to employees in Charles River Salary Grades 88 and higher (or
current or future salary grade equivalents), and specifically excludes highly compensated
scientific personnel who are separately compensated under a “Technical Track” salary structure or
those who participate in other comparable Charles River-approved incentive bonus programs.
Eligible employees are entitled to participate on a global basis, and must have joined the company
prior to July 1st in order to be eligible for a bonus award during their first year of
employment. Employees who are promoted into an eligible salary grade are eligible to participate
in the Plan if the promotion occurs prior to July 1st of the current year. Charles
River’s Chairman, President & CEO has the right to exclude otherwise qualified employees from the
Plan if they are eligible for alternate forms of incentive compensation (e.g., participation in a
post-acquisition earn-out).

	 	•	 	Basic Plan Design

Each participant’s performance during the Plan year is measured against financial or other approved
objectives established for the corporation and the business unit(s) overseen or supported by the
participant. Corporate and business unit objectives are weighted to reflect their priority and to
ensure that incentives are appropriately aligned with business objectives. Financial performance
measures underlying Plan bonus targets for the coming year are reviewed and approved annually by
the Board of Directors in conjunction with the annual budget review process and, as required, by
the Compensation Committee.

Incentive awards payable under the Plan are determined by multiplying the participant’s annual
Earned Income by his or her overall EICP Award Percentage (see below). Earned Income is defined as
base salary paid during the Plan year, and specifically excludes any other forms of cash payment or
imputed income. The Chairman, President & CEO of Charles River, with the concurrence of the
Compensation Committee, has discretion to modify a participant’s calculated bonus amount, upward or
downward, if it is determined that the calculated amount does not accurately reflect actual
performance. Target bonus percentages for participants in the Plan have been established at the
following salary grade (or equivalent) levels:

	 	 	 	 	 
	Salary Grade	 	Target Bonus Percentage
	88

	 	 	15	%
	 

	 	 	 	 
	 
	 	 	 	 
	89

	 	 	17	%
	 

	 	 	 	 
	 
	 	 	 	 
	90 & 91

	 	 	20	%
	 

	 	 	 	 
	 
	 	 	 	 
	92 & 93

	 	 	25	%
	 

	 	 	 	 

	 	 	 	 	 	 	 
	Salary Grade	 	Target Bonus Percentage	 	Target Bonus Range
	94

	 	 	30	%	 	30% — 50%
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	95

	 	 	45	%	 	40% — 60%
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	96

	 	 	60	%	 	50% — 70%
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	97

	 	 	70	%	 	60% — 80%
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	98

	 	 	80	%	 	70% — 90%
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	99

	 	 	90	%	 	80% — 95%
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	100

	 	 	100	%	 	95% — 100%
	 

	 	 	 	 	 	 

Target bonus percentages may be modified at the discretion of the Compensation Committee for
individual participants or salary grades.

Plan participants who are promoted and/or transfer within the company during the Plan year and
whose position responsibilities are significantly modified will have their performance objectives
correspondingly modified, subject to review and approval by the Chairman, President & CEO.

Plan participants who leave the company for reasons other than retirement, death, or disability, or
who are terminated prior to the actual receipt of the participants’ Final Bonus Payment for a
particular Plan year, forfeit their total bonus payment for that Plan year. Final bonus payments
are typically paid to the participant in their entirety in March of the following Plan year.

In the event of a facilities shut-down, full or partial business unit divestiture, or similar
action resulting in the termination of a Plan participant’s employment, Charles River shall not be
obligated to pay any full or pro rata bonus amounts to any Plan participant as a
consequence of such termination.

Plan participants who leave the company due to retirement, death or disability:

	•	 	After the close of the Plan year, but prior to the actual distribution of awards
for such year, will be awarded a full incentive award for the plan year. In the case of
death, such payment will be made to a beneficiary.

	•	 	After the beginning of the Plan year, but prior to its end, may receive an
incentive award for that year, at the discretion of the Chairman, President & CEO, based upon
the actual period of their employment with the company within the year. Awards will not be
paid if the period of actual employment during the Plan year is less than six months.
Severance periods will not count toward satisfaction of this 6-month requirement.

Bonus Calculations

A target bonus percentage has been established for each Plan participant in Salary Grades 88 (or
equivalent) and higher. Early in each Plan year, participants are assigned financial bonus
objectives which are established annually by the Chairman, President & CEO and, in the case of
Officers, are reviewed and approved by the Compensation Committee.

A participant’s EICP Award Percentage is determined by evaluating actual performance against
targeted objectives. Performance which falls below targeted objectives by a specified percentage,
total dollar amount or other approved performance measures results in a zero performance rating,
while performance which exceeds targeted objectives by a specified percentage, total dollar amount
or other approved performance measures equates to a 250% performance rating (i.e., an EICP Award
Percentage that is two and one half times the participant’s targeted percentage). These specified
performance parameters establish the slope along which Plan performance is measured. Under the
terms of the Plan, annual payouts for performance which exceed targeted objectives are subject to a
cap equal to 250% of target. However, if total company performance for a given Plan year exceeds
the maximum of the performance range established by the Board of Directors for that Plan year, 30%
of the excess amount is made available for the Chairman, President & CEO to make upward
modifications to the bonus payouts of certain Plan participants, at his discretion, subject to the
limitation that the corporate performance is capped at a payment level equal to 300% of target.

A participant’s EICP Award Percentage results from multiplying his or her Target Bonus Percentage
by the actual performance rating. The participant’s Final Bonus Amount is determined by
multiplying the participant’s base salary by the EICP Award Percentage.

Award Approval

Final Bonus Amounts for all Plan participants are submitted to the Chairman, President & CEO for
review. The Chairman, President & CEO then reviews and approves submissions relating to

non-Officer participants, and submits to the Compensation Committee his Final Bonus Amount
recommendations for Charles River’s Corporate Officers, as well as any proposed award
modifications. The Chairman, President & CEO may, at his discretion, modify any proposed Final
Bonus Amounts prior to submitting them to the Compensation Committee. The payment of Final Bonus
Amounts to Charles River Officers and all award modifications are subject to the review and
approval of the Compensation Committee.

Plan Administration

The Compensation Committee of the Board of Directors is responsible for the overall administration
of the Plan. The Committee reviews and approves the standards and financial objectives underlying
the Plan prior to its implementation for each Plan year. The Committee may delegate the ongoing
oversight and handling of routine administrative matters under the Plan to the company’s Corporate
Executive Vice President, Human Resources & Chief Administrative Officer. The Compensation
Committee has the authority to alter or terminate the Plan at any time, and no participant has any
rights with respect to an incentive award payable under the Plan until it has actually been paid to
the participant.

Any questions pertaining to the Plan design, eligibility, calculation of bonus, or other procedures
are routinely referred to the company’s Corporate Executive Vice President, Human Resources & Chief
Administrative Officer.Exhibit 10.2 Cobalis

    Exhibit
      10.2

     

     

    EXECUTIVE
      EMPLOYMENT AGREEMENT

    

    THIS
      EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of the
      30th
      day of November, 2005,
      by and
      among COBALIS
      CORP. (the "Company"),
      and
THOMAS
      STANKOVICH,
      an
      individual (the
      "Executive") (hereinafter
      collectively referred to as "the parties").

    

    PREAMBLE

    

    WHEREAS,
      the Company desires to employ the Executive and the Executive desires to be
      employed by the Company, all pursuant to the terms and conditions hereinafter
      set forth.

    

    NOW,
      THEREFORE, in consideration of the respective agreements of the parties
      contained herein, it is agreed as follows:

    

    
      	
              1.

            	
              TERM.
                The initial term of this Agreement shall be for the period commencing
                on
                December 5, 2005 (the "Start Date"), and ending on the third anniversary
                of the Start Date (the "Initial Term"), provided, however, that the
                term
                of this Agreement shall be automatically extended for successive
                one (1)
                year periods thereafter (each, a "Renewal Period") unless either
                the
                Company or the Executive shall have given written notice to the other
                party at least ninety (90) days prior to the end of the Term of Agreement
                (as hereinafter defined), that the Term of Agreement shall not be
                so
                extended. The Initial Term together with each Renewal Period, if
                any, are
                collectively referred to herein as the "Term of Agreement". The
                Executive's employment hereunder shall be coterminous with the Term
                of
                Agreement, unless sooner terminated as provided in Section 5
                hereof.

            

    

    

    
      	
              2.

            	
              EMPLOYMENT.
                During the term of the Executive's employment under this
                Agreement:

            

    

    

    
      	 	
              (a)

            	
              Subject
                to the terms and conditions of this Agreement, the Executive shall
                be
                employed as Executive Vice President and Chief Financial Officer
                of the
                Company or such other senior executive capacity as may be mutually
                agreed
                to in writing by the parties. The Executive agrees to discharge all
                of the
                duties normally associated with such positions, to faithfully and
                to the
                best of his abilities perform such other services consistent with
                his
                position as a senior executive as may from time to time be assigned
                to him
                by the Company's President (the “President”), and to devote all of his
                business time, skill and attention to such services. The Executive
                agrees
                that he shall not engage in any other business activities of any
                kind
                which would give rise to a conflict of interest for the Executive
                with
                respect to his duties and obligations to the
                Company.

            

    

     

    
      	 	
              (b)

            	
              The
                Executive shall report directly to the President of the
                Company.

            

    

    

    
      	
              3.

            	
              COMPENSATION.
                During the term of the Executive's employment under this
                Agreement:

            

    

    

    
      	 	
              (a)

            	
              Base
                Salary.
                The Company agrees to pay or cause to be paid to the Executive during
                the
                Term of Agreement a base salary at the rate of $200,000 per annum
                or such
                increased amount as the President or the Board of Directors of the
                Company
                (“the Board”) may from time to time determine (hereinafter referred to as
                the "Base Salary"). Such Base Salary shall be payable in accordance
                with
                the Company's customary practices applicable to its executives. Such
                Base
                Salary shall be reviewed at least annually by the President or the
                Board
                and may be further increased (but not decreased) in such amounts
                as the
                President in its discretion may
                decide.

            

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (b)

            	
              Signing
                Bonus.
                The Executive shall receive a special one-time signing bonus on the
                Start
                Date in the amount of One-Hundred Thousand (100,000) free-trading
                unrestricted shares, and after completion of thirty (30) days following
                the Start Date in the amount of One-Hundred-Fifty Thousand (150,000)
                restricted shares of the common stock, par value $.01 per share,
                of the
                Company (the “Common Stock”). 

            

    

     

    
      	 	
              (c)

            	
              Stock
                Options/Warrants.

            

    

    

    
      	 	
              (i)

            	
              Initial
                Grant.
                On
                or prior to the Start Date, the Company hereby grants to the Executive
                an
                option/warrant (the "Initial Stock Option/Warrant") to purchase One
                Million (1,000,000) shares of the Common Stock at the purchase/exercise
                price of $1.75 per share. This Initial Stock Option/Warrant shall
                vest and
                be exercisable as follows: 1/3 of the shares vest and become exercisable
                as of the Start Date; 1/3 of the shares shall vest and become exercisable
                one year after the Start Date; and 1/3 of the shares shall vest and
                become
                exercisable two years after the Start Date. Notwithstanding the foregoing,
                the Initial Stock Option/Warrant shall vest and be fully exercisable
                upon
                a Change in Control and shall vest as otherwise provided herein upon
                termination of the Executive's
                employment.

            

    

    

    
      	 	
              (ii)

            	
              Future
                Grants.
                The Executive shall be entitled to participate in future stock option
                grants (the "Future Stock Options/Warrants") as determined by the
                President or the Board or any dully authorized Committee of the
                Board.

            

    

    

    
      	 	
              (iii)

            	
              Option/Warrant
                Agreement.
                The Initial Stock Option/Warrant and any Future Stock Options/Warrants
                shall be evidenced by agreements in customary form for grants of
                stock
                options/warrants to executive officers of the Company, consistent
                with the
                terms and conditions of this
                Agreement.

            

    

    

    
      	
              4.

            	
              OTHER
                BENEFITS.
                During the term of the Executive's employment under this
                Agreement:

            

    

    

    
      	 	
              (a)

            	
              Employee
                Benefits.
                The Executive shall be entitled to participate in all employee benefit
                plans, practices and programs maintained by the Company and made
                available
                to employees generally including, without limitation, all pension,
                retirement, profit sharing, savings, medical, hospitalization, disability,
                dental, life or travel accident insurance benefit plans. The Executive's
                participation in such plans, practices and programs shall be on the
                same
                basis and terms as are applicable to employees of the Company
                generally.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (b)

            	
              Executive
                Benefits.
                The Executive shall be entitled to participate in all executive benefit
                or
                incentive compensation plans now maintained or hereafter established
                by
                the Company for the purpose of providing compensation and/or benefits
                to
                executives of the Company including, but not limited to, any supplemental
                retirement, salary continuation, stock option, deferred compensation,
                supplemental medical or life insurance, or other bonus or incentive
                compensation plans. Unless otherwise provided herein, the Executive's
                participation in such plans shall be on the same basis and terms,
                as other
                senior executives of the Company, and shall be reasonably equivalent
                to
                the benefit levels and reward opportunities applicable to the Executive
                as
                in effect on the date hereof. No additional compensation provided
                under
                any of such plans shall be deemed to modify or otherwise affect the
                terms
                of this Agreement or any of the Executive's entitlements
                hereunder.

            

    

    

    
      	 	
              (c)

            	
              Fringe
                Benefits and Perquisites.
                The Executive shall be entitled to all fringe benefits and perquisites
                (e.g. professional membership dues, additional reimbursement for
                uncovered
                medical expenses, executive life insurance and tax advisory services)
                generally made available by the Company to its senior executives.
                

            

    

    

    
      	 	
              (d)

            	
              Eligibility
                Waiver of Waiting Times.
                Subject to the terms of this Agreement, the Executive (and to the
                extent
                applicable under the terms and benefits of such plans which apply
                to the
                Dependents shall have the right to participate in all employee plans
                and
                benefits currently existing or hereafter granted by the Company to
                its
                employees and all waiting periods under such plans and benefits
                arrangements will be waived to the full extent possible unless such
                waiver
                would require the Company to waive waiting periods for other employees.
                In
                the event that the provisions of any such employee plans or benefit
                arrangements do not permit immediate waiver of waiting periods, comparable
                benefits will be provided to the Executive and the Dependents outside
                such
                plans and arrangements.

            

    

    

    
      	 	
              (e)

            	
              Business
                Expenses.
                Upon submission of proper invoices in accordance with the Company's
                normal
                procedures, the Executive shall be entitled to receive prompt
                reimbursement of all reasonable out-of-pocket business, entertainment
                and
                travel expenses incurred by him in connection with the performance
                of his
                duties hereunder or for promoting, pursuing or otherwise furthering
                the
                business or interest of the
                Company.

            

    

    

    
      	 	
              (f)

            	
              Office
                and Facilities.
                The Executive shall be provided with an appropriate office in Irvine,
                California, with such secretarial and other support facilities as
                are
                commensurate with the Executive's status with the Company and adequate
                for
                the performance of his duties
                hereunder.

            

    

    

    
      	 	
              (g)

            	
              Vacation
                and Sick Leave.
                The Executive shall be entitled, without loss of pay, to absent himself
                voluntarily from the performance of his employment under this Agreement,
                pursuant to the following:

            

    

    

    
      	 	
              (i)

            	
              The
                Executive shall be entitled to annual vacation in accordance with
                the
                policies as periodically established by the President for similarly
                situated executives of the Company, which shall in no event be less
                than
                four weeks per year;

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (ii)

            	
              in
                addition to the aforesaid paid vacations, the Executive shall be
                entitled,
                without loss of pay, to absent himself voluntarily from the performance
                of
                his employment for such additional periods of time and for such valid
                and
                legitimate reasons as the President in its discretion may determine.
                Further, the President shall be entitled to grant to the Executive
                a leave
                or leaves of absence with or without pay at such time or times and
                upon
                such terms and conditions as the President in its discretion may
                determine; and

            

    

    

    
      	 	
              (iii)

            	
              The
                Executive shall be entitled to sick leave (without loss of pay) in
                accordance with the Company's policies as in effect from time to
                time,
                which shall in no event be less than six (6) days per
                year.

            

    

    

    
      	
              5.

            	
              TERMINATION.
                The Executive's employment hereunder may be terminated under the
                following
                circumstances:

            

    

    

    
      	 	
              (a)

            	
              Death.
                The Executive's employment shall be terminated as of the date of
                the
                Executive's death and the Executive's Dependents shall be entitled
                to the
                benefits provided in Section 7(b)
                hereof.

            

    

    

    
      	 	
              (b)

            	
              Disability.
                The Company may terminate the Executive's employment after having
                established the Executive's Disability, subject to the payment by
                the
                Company to the Executive of the benefits provided in Section 7(b)
                hereof.
                For purposes of this Agreement, "Disability" shall mean the Executive's
                inability to substantially perform his duties and responsibilities
                hereunder by reason of any physical or mental incapacity for two
                or more
                periods of ninety (90) consecutive days each in any three hundred
                and
                sixty (360) day period, as determined by a physician with no history
                of
                prior dealings with the Company or the Executive, as reasonably agreed
                upon by the Company and the
                Executive.

            

    

    

    
      	 	
              (c)

            	
              Cause.
                The Company may terminate the Executive's employment for "Cause",
                effective as of the date of the Notice of Termination (as defined
                in
                Section 6 below), subject to the payment by the Company to the Executive
                of the benefits provided in Section 7(a) hereof. A termination for
                Cause
                is a termination made because the Executive has (A) committed an
                act of
                fraud or embezzlement against the Company or any affiliate thereof,
                or (B)
                a knowing and willful unauthorized disclosure of Confidential Information
                (as defined in Section 10 below) of the Company, which disclosure
                results
                in material damage to the Company, or (C) a breach of one or more
                of the
                following duties to the Company which continues after written notice
                thereof specifying the particular events or conditions which constitute
                the alleged breach and the specific cure requested by the Company
                and a
                reasonable opportunity to cure: (1) the duty not to take actions
                which
                would reasonably be viewed by the Company as placing the Executive's
                interest in a position adverse to the interests of the Company, or
                (2) the
                duty not to engage in self-dealing with respect to the Company's
                assets,
                properties or business opportunities; or (D) been convicted (or entered
                a
                plea of nolo contendere) for the commission of (1) a felony or (2)
                a crime
                involving fraud, dishonesty or moral turpitude; or (E) engaged in
                intentional misconduct as an employee of the Company, which misconduct
                or
                violation results in material damage to the Company or its reputation
                and
                continues after written notice thereof specifying the particular
                events or
                conditions which constitute the alleged misconduct or violation and
                the
                specific cure requested by the Company and a reasonable opportunity
                to
                cure (if such misconduct is susceptible to cure by the Executive),
                including, but not limited to (1) intentional violations by the Executive
                of written policies of the Company, or specific directions of the
                President, which policies or directives are not illegal (or do not
                involve
                illegal conduct) and do not require the Executive to violate reasonable
                business ethical standards, or (2) intentional violations of the
                Company's
                code of corporate conduct; or (F) failed, after written notice from
                the
                Company to render services to the Company in accordance with this
                Agreement or the Executive's position and responsibilities with the
                Company in a manner that amounts to gross neglect in the performance
                of
                his duties to the Company. 

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    The
      Company may suspend the Executive, without pay, upon the Executive's indictment
      for the commission of (1) a felony or (2) a crime involving fraud, dishonesty
      or
      moral turpitude. Such suspension may remain effective until such time as the
      indictment is either dismissed or a verdict of not guilty has been entered,
      at
      which time the Executive shall be reinstated with the Company. Upon such
      reinstatement, the Executive shall be entitled to payment by the Company of
      all
      Base Salary to which the Executive would have otherwise been entitled to during
      the period of such suspension.

    

    
      	 	
              (d)

            	
              Without
                Cause.
                The Company may terminate the Executive's employment without Cause.
                The
                Company shall deliver to the Executive a Notice of Termination (as
                defined
                in Section 6 below) not less than thirty (30) days prior to the
                termination of the Executive's employment without Cause and the Company
                shall have the option of terminating the Executive's duties and
                responsibilities (but not his employment) prior to the expiration
                of such
                thirty-day notice period, subject to the payment by the Company of
                the
                benefits provided in either Section 7(c) or 7(e) hereof, as may be
                applicable.

            

    

    

    
      	 	
              (e)

            	
              Good
                Reason.
                The Executive may terminate his employment for "Good Reason" (as
                defined
                below) by delivering to the Company a Notice of Termination (as defined
                in
                Section 6 below) not less than thirty (30) days prior to the termination
                of the Executive's employment for Good Reason. The Company shall
                have the
                option of terminating the Executive's duties and responsibilities
                (but not
                his employment) prior to the expiration of such thirty-day notice
                period,
                subject to the payment by the Company of the benefits provided in
                either
                Section 7(c) or 7(e) hereof, as may be applicable. For purposes of
                this
                Agreement, Good Reason shall mean the occurrence of any of the events
                or
                conditions described in Subsections (i) through (viii) hereof which
                are
                not cured by the Company (if susceptible to cure by the Company)
                within
                fifteen (15) days after the Company has received written notice from
                the
                Executive specifying the particular events or conditions which constitute
                Good Reason and the specific cure requested by the
                Executive.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (i)

            	
              Diminution
                of Responsibility.
                (A) A change in the Executive’s status, title, position or
                responsibilities (including reporting responsibilities) which in
                the
                Executive’s reasonable judgment constitutes a material diminution in the
                Executive's status, title, position or responsibilities (including
                reporting responsibilities) as in effect immediately prior thereto;
                or (B)
                the assignment to the Executive of any duties or responsibilities
                (including reporting responsibilities) which are in the Executive’s
                reasonable judgment materially inconsistent with such status, title,
                position or responsibilities (including reporting responsibilities);
                or
                (C) any removal of the Executive from or failure to reappoint the
                Executive to the position of Chief Financial Officer, except in connection
                with the termination of the Executive's employment as provided for
                elsewhere in this Agreement;

            

    

    

    
      	 	
              (ii)

            	
              Salary
                Reduction.
                A
                reduction in the Executive's Base Salary as defined in Section
                3(a);

            

    

    

    
      	 	
              (iii)

            	
              Relocation.
                The Company's requiring the Executive to be based at any place other
                than
                the Company's current headquarters or within a 30-mile radius thereof;
                

            

    

    

    
      	 	
              (iv)

            	
              Discontinuation
                of Material Compensation or Benefit Plan.
                The failure by the Company to continue in effect any material compensation
                or benefit plan in which the Executive was participating, including,
                but
                not limited to, the Company's deferred compensation plan and 401(k)
                plan
                without providing the Executive with compensation and benefits
                substantially equal (in terms of benefit levels and/or reward
                opportunities) to those provided for under such
                plan;

            

    

    

    
      	 	
              (v)

            	
              Bankruptcy.
                The initiation by or against the Company of proceedings under the
                United
                States Bankruptcy Code or under state insolvency laws, which proceedings
                are not vacated within 60 days of notice thereof to the
                Company;

            

    

    

    
      	 	
              (vi)

            	
              Breach
                by Company.
                Material breach by the Company of the terms and conditions of this
                Agreement or any other agreement between the Executive and the Company
                after formal notice by the Executive and a reasonable opportunity
                to
                cure;

            

    

    

    
      	 	
              (vii)

            	
              Purported
                Termination.
                Any purported termination of the Executive’s employment for Cause by the
                Company which does not comply with the terms of Section 5 of this
                Agreement; and

            

    

    

    
      	 	
              (viii)

            	
              Failure
                to Successfully Assign.
                Failure of the Company to obtain an agreement from any successor
                or assign
                of the Company to assume and agree to perform the Company's obligations
                under this or any other agreement between the Executive and the Company;
                

            

    

    

    
      	 	
              (f)

            	
              Good
                Reason Arising Prior To Change in Control.
                Any event or condition described in Sections 5(e)(i) through (viii)
                which
                occurs prior to a Change in Control, but which (A) was at the request
                of a
                third party who has taken steps reasonably calculated to effect a
                Change
                in Control or (B) otherwise arose in connection with a Change in
                Control,
                will constitute Good Reason for purposes of this Agreement notwithstanding
                that it occurred prior to a Change in
                Control.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (g)

            	
              Without
                Good Reason.
                The Executive may voluntarily terminate his employment without Good
                Reason
                by delivering to the Company a Notice of Termination not less than
                thirty
                (30) days prior to the termination of the Executive's employment
                and the
                Company shall have the option of terminating the Executive's duties
                and
                responsibilities (but not his employment) prior to the expiration
                of such
                thirty-day notice period, subject to the payment by the Company to
                the
                Executive of the benefits provided in Section 7(a) hereof through
                the last
                day of such notice period.

            

    

    

    
      	 	
              (h)

            	
              Non-Renewal
                of Term of Agreement.
                Either party may elect not to extend the Term of Agreement pursuant
                to
                Section 1 hereof, subject to the payment by the Company to the Executive
                of the benefits provided in Section 7(d)
                hereof.

            

    

    

    
      	
              6.

            	
              NOTICE
                OF TERMINATION.
                Any purported termination by the Company or by the Executive shall
                be
                communicated by written Notice of Termination to the other party
                hereto.
                For purposes of this Agreement, a "Notice of Termination" shall mean
                a
                notice which (1) indicates a termination of the Executive’s employment
                date, (2) the specific termination provision in this Agreement relied
                upon
                and (3) sets forth in reasonable detail the facts and circumstances
                claimed to provide a basis for termination of the Executive's employment
                under the provision so indicated. For purposes of this Agreement,
                no such
                purported termination of the Executive's employment hereunder shall
                be
                effective without such Notice of
                Termination.

            

    

    

    
      	
              7.

            	
              COMPENSATION
                UPON TERMINATION.
                Upon termination of the Executive's employment during the Term of
                Agreement, the Executive shall be entitled to the following
                benefits:

            

    

    

    
      	 	
              (a)

            	
              Termination
                by the Company for Cause or by the Executive Without Good
                Reason.
                If
                the Executive's employment is terminated by the Company for Cause
                or by
                the Executive Without Good Reason, the Company shall pay the Executive
                all
                amounts earned hereunder through the date of termination of the
                Executive's employment, including:

            

    

    

    
      	 	
              (i)

            	
              any
                accrued and unpaid Base Salary;

            

    

    

    
      	 	
              (ii)

            	
              reimbursement
                for any and all monies advanced to the Executive or expenses incurred
                in
                connection with the Executive's employment for reasonable and necessary
                expenses incurred by the Executive on behalf of the Company for the
                period
                ending on the date of termination of the Executive’s
                employment;

            

    

    

    
      	 	
              (iii)

            	
              any
                accrued and unpaid vacation pay; 

            

    

    

    
      	 	
              (iv)

            	
              any
                stock options and stock appreciation rights (including Initial Stock
                Option/Warrant and Future Stock Options/Warrants) granted to the
                Executive
                and vested through the date of termination of the Executive’s employment
                pursuant to the vesting schedule in Section 3(c)(i) shall become
                immediately exercisable for a period of thirty (30) days following
                the
                date of termination of the Executive’s employment;
                and

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (v)

            	
              any
                previous compensation which the Executive has previously deferred
                (including any interest earned or credited thereon), subject to the
                terms
                and conditions of the applicable deferred compensation plans then
                in
                effect.

            

    

    

    
      	 	
              (vi)

            	
              The
                foregoing items in Section 7(a)(i) through 7(a)(v) being collectively
                referred to as the "Accrued
                Compensation".

            

    

    

    
      	 	
              (b)

            	
              Termination
                Upon Death or Disability. If
                the Executive's employment is terminated by the Company upon the
                Executive's Disability or by reason of the Executive's death, the
                Executive (or his beneficiaries, as applicable) shall be entitled
                to the
                following:

            

    

    

    
      	 	
              (i)

            	
              any
                Accrued Compensation through the date of termination of the Executive’s
                employment;

            

    

    

    
      	 	
              (ii)

            	
              all
                restrictions on any outstanding awards granted by the Company (including
                restricted stock awards) granted to the Executive shall lapse and
                such
                awards shall become fully (100%) and immediately vested, and all
                stock
                options and stock appreciation rights (including Initial Stock
                Option/Warrant and Future Stock Options/Warrants) granted to the
                Executive
                and vested through the date of termination of the Executive’s employment
                pursuant to the vesting schedule in Section 3(c)(i) shall become
                immediately exercisable for a remaining life of the Stock Option/Warrant,
                or a period which shall be no less than twenty-four (24) months following
                the date of termination of the Executive’s employment, whichever is
                greater;

            

    

    

    
      	 	
              (iii)

            	
              for
                a number of months equal to twenty-four (24), the Company shall at
                its
                expense continue on behalf of the Executive’s dependents and beneficiaries
                (the “Dependents”) the life insurance, disability, medical, dental and
                hospitalization benefits which were being provided to the Dependents
                at
                the time Notice of Termination is given. In the event that the provisions
                of any such employee benefit arrangements do not permit continuing
                coverage, then the Company shall provide the Dependents with substantially
                equivalent coverage through other sources. The benefits provided
                in this
                Section 7(b)(iii) shall be no less favorable to the Dependents, in
                terms
                of amounts and deductibles and costs to them, than the coverage provided
                the Dependents under the plans providing such benefits at the time
                Notice
                of Termination is given. This Subsection (iii) shall not be interpreted
                so
                as to limit any benefits to which the Dependents may be entitled
                under any
                of the Company's employee benefit plans, programs or practices following
                the Executive's termination of employment, including without limitation,
                retiree medical and life insurance benefits;
                and

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (iv)

            	
              The
                Executive's entitlement to any other compensation or benefits hereunder
                shall be determined in accordance with the Company's employee benefit
                plans and other applicable programs and practices then in
                effect.

            

    

    

    
      	 	
              (c)

            	
              Termination
                by the Company Without Cause or by the Executive for Good
                Reason.
                If
                the Executive's employment by the Company shall be terminated by
                the
                Company without Cause, or if the Executive terminates his employment
                for
                Good Reason, the Executive shall be entitled to the
                following:

            

    

    

    
      	 	
              (i)

            	
              any
                Accrued Compensation through the date of termination of the Executive’s
                employment;

            

    

    

    
      	 	
              (ii)

            	
              If
                the Executive voluntarily elects and agrees not to engage in Prohibited
                Activities (as hereinafter defined) for a period of one (1) year
                after the
                date of termination of the Executive’s employment, the Company shall pay
                the Executive as additional compensation for the periods subsequent
                to the
                termination date, an amount in cash equal to one (1) time the sum
                of the
                Executive's annual Base Salary at the highest rate in effect at any
                time
                within the ninety (90) day period ending on the date the Notice of
                Termination is delivered. The additional compensation provided in
                the
                previous sentence shall be payable in substantially equal monthly
                installments for a period of twelve months. If the Executive does
                not so
                voluntarily elect and agree or otherwise engages in such Prohibited
                Activities, then the Executive's eligibility to receive the
                post-employment benefits provided for in this Section 7(c)(ii) shall
                immediately thereafter terminate. The Executive's entitlement to
                any other
                compensation or benefits hereunder shall be determined in accordance
                with
                the Company's employee benefit plans and other applicable programs
                and
                practices then in effect. For the purposes of this Agreement, the
                term
                "Prohibited Activities" means directly or indirectly engaging as
                an owner,
                employee, consultant or agent of any entity that manufactures, markets
                and
                distributes (directly or indirectly through related entities, joint
                ventures, strategic alliances or other affiliated entities) prescription
                or non-prescription pharmaceuticals or medical devices for treatments
                in
                the fields of allergy (each a "Competitive Business"). Notwithstanding
                the
                foregoing, it shall not be considered a "Prohibited Activity" for
                the
                Executive (i) to own or purchase any corporate securities of any
                entity
                that is regularly traded on a recognized stock exchange or
                over-the-counter market so long as the Executive does not own, in
                the
                aggregate, 5% or more of the voting equity securities of any such
                entity
                or (ii) to perform consulting services for an entity engaged in a
                Competitive Business to the extent the Executive has given the Company
                at
                least 30 days advance notice of the Executive's desire to perform
                such
                consulting services and both the Company's President (or the board
                of
                directors of a successor entity to the Company, as the case may be),
                in
                their sole and absolute discretion, have consented in writing to
                the
                performance of such consulting services by the
                Executive;

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iii)

            	
              all
                restrictions on any outstanding awards granted by the Company (including
                restricted stock awards) granted to the Executive shall lapse and
                such
                awards shall become fully (100%) and immediately vested, and all
                stock
                options and stock appreciation rights (including Initial Stock
                Option/Warrant and Future Stock Options/Warrants) granted to the
                Executive
                and vested through the date of termination of the Executive’s employment
                pursuant to the vesting schedule in Section 3(c)(i) shall become
                immediately exercisable for a remaining life of the Stock Option/Warrant,
                or a period which shall be no less than twenty-four (24) months following
                the date of termination of the Executive’s employment, whichever is
                greater; and

            

    

    

    
      	 	
              (iv)

            	
              for
                a number of months equal to twelve (12), the Company shall at its
                expense
                continue on behalf of the Executive and the Dependents the life insurance,
                disability, medical, dental and hospitalization benefits which were
                being
                provided to the Executive at the time Notice of Termination is given.
                In
                the event that the provisions of any such employee benefit arrangements
                do
                not permit continuing coverage, then the Company shall provide the
                Executive with substantially equivalent coverage through other sources.
                The benefits provided in this Section 7(c)(iv) shall be no less favorable
                to the Executive, in terms of amounts and deductibles and costs to
                him,
                than the coverage provided the Executive under the plans providing
                such
                benefits at the time Notice of Termination is given. This Subsection
                (iv)
                shall not be interpreted so as to limit any benefits to which the
                Executive or the Dependents may be entitled under any of the Company's
                employee benefit plans, programs or practices following the Executive's
                termination of employment, including without limitation, retiree
                medical
                and life insurance benefits.

            

    

    

    
      	 	
              (d)

            	
              Termination
                Due to Non -- Renewal of Term of
                Agreement.

            

    

    

    
      	 	
              (i)

            	
              If
                the Company notifies the Executive under Section 1 hereof that it
                shall
                not extend the Term of Agreement for any Renewal Period, the Executive
                shall be entitled to the benefits provided in Section 7(c)
                above.

            

    

    

    
      	 	
              (ii)

            	
              If
                the Executive notifies the Company under Section 1 hereof that he
                shall
                not extend the Term of Agreement for any Renewal Period, the Executive
                shall be entitled to the benefits provided in Section 7(a)
                above.

            

    

    

    
      	 	
              (e)

            	
              Termination
                by the Company Without Cause or by the Executive for Good Reason
                Following
                a Change in Control.
                If
                the Executive's employment by the Company shall be terminated by
                the
                Company without Cause or by the Executive for Good Reason within
                twelve
                (12) months following a Change in Control (as defined in Section
                8 below),
                the Executive shall be entitled to the following:
                

            

    

    

    
      	 	
              (i)

            	
              any
                Accrued Compensation through the date of termination of the Executive’s
                employment;

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (ii)

            	
              If
                the Executive voluntarily elects and agrees not to engage in Prohibited
                Activities (as hereinafter defined) for a period of one (1) year
                after the
                date of termination of the Executive’s employment, the Company shall pay
                the Executive as additional compensation for the periods subsequent
                to the
                termination date, an amount in cash equal to two (2) times the sum
                of the
                Executive's annual Base Salary at the highest rate in effect at any
                time
                within the ninety (90) day period ending on the date the Notice of
                Termination is delivered. The additional compensation provided in
                the
                previous sentence shall be payable in substantially equal monthly
                installments for a period of twenty-four (24) months. If the Executive
                does not so voluntarily elect and agree or otherwise engages in such
                Prohibited Activities, then the Executive's eligibility to receive
                the
                post-employment benefits provided for in this Section 7(d)(ii) shall
                immediately thereafter terminate. The Executive's entitlement to
                any other
                compensation or benefits hereunder shall be determined in accordance
                with
                the Company's employee benefit plans and other applicable programs
                and
                practices then in effect. For the purposes of this Agreement, the
                term
                "Prohibited Activities" means directly or indirectly engaging as
                an owner,
                employee, consultant or agent of any entity that manufactures, markets
                and
                distributes (directly or indirectly through related entities, joint
                ventures, strategic alliances or other affiliated entities) prescription
                or non-prescription pharmaceuticals or medical devices for treatments
                in
                the fields of allergy (each a "Competitive Business"). Notwithstanding
                the
                foregoing, it shall not be considered a "Prohibited Activity" for
                the
                Executive (i) to own or purchase any corporate securities of any
                entity
                that is regularly traded on a recognized stock exchange or
                over-the-counter market so long as the Executive does not own, in
                the
                aggregate, 5% or more of the voting equity securities of any such
                entity
                or (ii) to perform consulting services for an entity engaged in a
                Competitive Business to the extent the Executive has given the Company
                at
                least 30 days advance notice of the Executive's desire to perform
                such
                consulting services and both the Company's President (or the board
                of
                directors of a successor entity to the Company, as the case may be),
                in
                their sole and absolute discretion, have consented in writing to
                the
                performance of such consulting services by the
                Executive;

            

    

    

    
      	 	
              (iii)

            	
              all
                restrictions on any outstanding awards granted by the Company (including
                restricted stock awards) granted to the Executive shall lapse and
                such
                awards shall become fully (100%) and immediately vested, and all
                stock
                options and stock appreciation rights granted to the Executive (including
                Initial Stock Option/Warrant and Future Stock Options/Warrants) shall
                become fully (100%) and immediately exercisable for a remaining life
                of
                the Stock Option/Warrant, or a period which shall be no less than
                twenty-four (24) months following the Termination date, whichever
                is
                greater; and

            

    

    

    
      	 	
              (iv)

            	
              for
                a number of months equal to twenty-four (24), the Company shall at
                its
                expense continue on behalf of the Executive and the Dependents the
                life
                insurance, disability, medical, dental and hospitalization benefits
                which
                were being provided to the Executive at the time Notice of Termination
                is
                given. In the event that the provisions of any such employee benefit
                arrangements do not permit continuing coverage, then the Company
                shall
                provide the Executive with substantially equivalent coverage through
                other
                sources. The benefits provided in this Section 7(c)(iv) shall be
                no less
                favorable to the Executive, in terms of amounts and deductibles and
                costs
                to him, than the coverage provided the Executive under the plans
                providing
                such benefits at the time Notice of Termination is given. This Subsection
                (iv) shall not be interpreted so as to limit any benefits to which
                the
                Executive or the Dependents may be entitled under any of the Company's
                employee benefit plans, programs or practices following the Executive's
                termination of employment, including without limitation, retiree
                medical
                and life insurance benefits.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (f)

            	
              The
                Executive shall not be required to mitigate the amount of any payment
                provided for under this Section 7 by seeking other employment and
                no such
                payment shall be offset or reduced by the amount of any compensation
                or
                benefits provided to the Executive in any subsequent
                employment.

            

    

    

    
      	
              8.

            	
              CHANGE
                IN CONTROL.
                For purposes of this Agreement, a "Change in Control" shall mean
                any of
                the following events:

            

    

    

    
      	 	
              (a)

            	
              the
                acquisition (other than from the Company) by any person (as such
                term is
                defined in Section 13(c) or 14(d) of the Securities Exchange Act
                of 1934,
                as amended (the "1934 Act")) of beneficial ownership (within the
                meaning
                of Rule 13d-3 promulgated under the 1934 Act) of twenty-five-percent
                (25%)
                or more of the combined voting power of the Company's then outstanding
                voting securities;

            

    

    

    
      	 	
              (b)

            	
              the
                individuals who, as of the date hereof, are members of the Board
                (the
                "Incumbent Board"), cease for any reason to constitute at least two
                thirds
                (2/3) of the Board, unless the election, or nomination for election
                by the
                Company's stockholders, of any new director was approved by a vote
                of at
                least two thirds (2/3) of the Incumbent Board, and such new director
                shall, for purposes of this Agreement, be considered as a member
                of the
                Incumbent Board;

            

    

    

    
      	 	
              (c)

            	
              approval
                by stockholders or the Board of the Company of:

            

    

    

    
      	 	
              (i)

            	
              a
                merger or consolidation involving the Company and an independent
                third
                party if the stockholders of the Company, immediately before such
                merger
                or consolidation, do not, as a result of such merger or consolidation,
                own, directly or indirectly, more than seventy percent (70%) of the
                combined voting power of the then outstanding voting securities of
                the
                corporation resulting from such merger or consolidation in substantially
                the same proportion as their ownership of the combined voting power
                of the
                voting securities of the Company outstanding immediately before such
                merger or consolidation; or

            

    

    

    
      	 	
              (ii)

            	
              an
                agreement for the sale or other disposition of all or substantially
                all of
                the assets of the Company to an independent third
                party;

            

    

    

    
      	 	
              (d)

            	
              the
                liquidation or dissolution of the
                Company.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    Notwithstanding
      the foregoing, a Change in Control shall not be deemed to occur pursuant to
      Section 8(a), solely because thirty percent (30%) or more of the combined voting
      power of the Company's then outstanding securities is acquired by any
      corporation which, immediately prior to such acquisition, is owned directly
      or
      indirectly by the stockholders of the Company in the same proportion as their
      ownership of stock in the Company immediately prior to such acquisition.

    

    
      	
              9.

            	
              FEDERAL
                EXCISE TAX.
                The Company shall reimburse the Executive for any excise tax imposed
                by
                Section 4999 of the Internal Revenue Code of 1986, as amended (the
                "Code")
                on any portion of the compensation or benefits payable to the Executive
                in
                connection with a Change of Control. The Executive and the Company
                agree
                to reasonably cooperate to mitigate the amount of any such tax that
                might
                become payable. The Company shall pay to the Executive the payments,
                or
                portions thereof, provided for in this Section 9 not later than fifteen
                (15) days prior to the date on which such taxes, or portions thereof,
                are
                due as determined by the tax counsel referred to below. Tax counsel
                selected by the Company and reasonably acceptable to the Executive
                shall
                determine whether the payments provided for by this Section 9 shall
                be
                required, based on the actual tax rates to which the Executive is
                subject
                at the time. The Executive shall, on a confidential basis, provide
                such
                counsel with such information as such counsel reasonably requests
                in
                connection with such determination. All determinations of tax counsel
                shall be binding on the Executive and the Company. Tax counsel shall
                determine that payments shall be due hereunder only if, and to the
                extent
                that, it is more likely than not that the payments or benefits are
                subject
                to a tax. In making the determinations required by this Section 9,
                tax
                counsel may rely on benefit consultants, accountants or other experts.
                The
                Company agrees to pay all reasonable fees and expenses of such tax
                counsel. If, subsequent to the payment to the Executive of payments
                pursuant to this Section 9, the tax counsel referred to in this Section
                9
                reasonably determines that the amount of the payments paid pursuant
                to
                this Section 9 are greater than, or less than, the amount required
                to have
                been paid, Executive shall reimburse the Company an amount, or the
                Company
                shall pay to the Executive an additional amount, respectively, based
                upon
                such determination. In the event that tax counsel referred to in
                this
                Section 9 reasonably determines that the Executive is required to
                pay
                excise tax, interest or penalties to a governmental taxing authority
                as a
                result of his non-payment of taxes where such tax counsel had determined
                that such taxes need not be paid, the Company shall pay to the Executive
                an additional amount equal to (A) the amount of such interest and/or
                penalties, (B) the excise tax which was not paid and (C) any excise
                tax
                and any other taxes imposed by the Code or under state or local law
                on the
                payments provided for in this
                sentence.

            

    

    

    
      	
              10.

            	
              RECORDS
                AND CONFIDENTIAL DATA:
                Proprietary Inventions.

            

    

    

    
      	 	
              (a)

            	
              The
                Executive acknowledges that in connection with the performance of
                his
                duties during the Term of Agreement the Company will make available
                to the
                Executive, or the Executive will have access to, certain Confidential
                Information (as defined below) of the Company and its affiliates.
                The
                Executive acknowledges and agrees that any and all Confidential
                Information learned or obtained by Executive during the course of
                his
                employment by the Company or otherwise, whether developed by the
                Executive
                alone or in conjunction with others or otherwise, shall be and is
                the
                property of the Company and its
                affiliates.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              The
                Confidential Information will be kept confidential by the Executive,
                will
                not be used in any manner which is detrimental to the Company, will
                not be
                used other than in connection with the Executive's discharge of his
                duties
                hereunder, and will be safeguarded by the Executive from unauthorized
                disclosure.

            

    

    

    
      	 	
              (c)

            	
              For
                the purposes of this Agreement, "Confidential Information" shall
                mean all
                confidential and proprietary information of the Company and its affiliates
                that has been created, discovered or developed or has otherwise become
                known to the Company (including, without limitation, information
                created,
                discovered, developed or made known by or to the Executive during
                the
                period of or arising out of his employment hereunder), or in which
                property rights have been assigned or otherwise conveyed to the Company,
                which information has commercial value in the business in which the
                Company is engaged; by way of illustration and not by limitation,
                Confidential Information includes information derived from reports,
                investigations, experiments, research, work in progress, drawing,
                designs,
                plans, proposals, codes, marketing and sales programs, client lists,
                shareholder lists, client mailing lists, supplier lists, financial
                projections, cost summaries, pricing formula, marketing studies relating
                to prospective business opportunities and all other concepts, ideas,
                materials, or information prepared or performed for or by the Company
                or
                its affiliates. For purposes of this Agreement, the Confidential
                Information shall not include and the Executive's obligation's shall
                not
                extend to (i) information which is or becomes, without violation
                by the
                Executive of this Agreement, generally available to the public and
                (ii)
                information obtained by the Executive other than pursuant to or in
                connection with this employment. Notwithstanding the foregoing, if
                the
                Executive is required by law or legal process to disclose the Confidential
                Information, the Executive shall provide the Company with prompt
                notice so
                that the Company may seek a protective order or other appropriate
                remedy
                and/or waive compliance with this Section 11. If, in the absence
                of a
                protective order or other remedy or the receipt of a waiver by the
                Company, the Executive is nonetheless, in the opinion of counsel,
                legally
                compelled to disclose the Confidential Information, the Executive
                may,
                without liability hereunder, disclose only that portion of the
                Confidential Information which such counsel advises is legally required
                to
                be disclosed, provided, however, that the Executive exercise reasonable
                efforts to preserve the confidentiality of the Confidential Information,
                including without limitation, cooperating with the Company to obtain
                an
                appropriate protective order or other reliable assurance that confidential
                treatment will be accorded the Confidential
                Information.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              The
                Executive hereby assigns to the Company any rights he may acquire
                during
                his employment hereunder in all Confidential Information and agrees
                that
                all Inventions (as defined below) will be the sole property of the
                Company
                and its assigns, and the Company and its assigns will be the sole
                owner of
                all the patents and other rights in connection therewith. The Executive
                hereby assigns to the Company any rights he may acquire during the
                period
                of his employment hereunder in all Inventions and agrees to assist
                the
                Company in every proper way (but at the Company's expense) to obtain
                and
                from time to time enforce patents on Inventions in any and all countries.
                The Executive shall execute all documents for use in applying for
                and
                obtaining such patents thereon and enforcing same, as the Company
                may
                desire, together with any assignments thereof to the Company or persons
                designated by it. The Executive's obligation to assist the Company
                in
                obtaining and enforcing patents for Inventions in any and all countries
                will continue beyond the termination of employment hereunder, but
                the
                Company will compensate the Executive at a reasonable rate after
                such
                termination for time actually spent by him at the Company's request
                on
                such assistance. The Executive acknowledges that, in accordance with
                Section 2872 of the California Labor Code, the assignment provisions
                in
                this paragraph (d), do not apply to Inventions for which no equipment,
                supplies, facility, or trade secret information of the Company was
                used,
                which were developed entirely on the Executive's own time, and (i)
                which
                do not relate (a) to the business of the Company or (b) to the Company's
                actual or demonstrably anticipated research or development or (ii)
                which
                do not result from any work performed by the Executive for the Company.
                The Executive has identified on Schedule I hereto all inventions
                or
                improvements relevant to the subject matter of the Executive's employment
                hereunder which have been made or conceived or first reduced to practice
                by the Executive alone or jointly with others prior to the date hereof
                which the Executive desires to remove from the operation of this
                Agreement; and the Executive represents that such list is complete.
                If
                there is no such list on Schedule I, the Executive represents that
                he has
                made no such inventions and improvements as of the date
                hereof.

            

    

    

    
      	 	
              (e)

            	
              For
                purposes of this Agreement, "Inventions" shall mean all improvements,
                inventions, formulae, processes, techniques, know-how and data whether
                or
                not patentable, made or conceived or reduced to practice or learned
                by the
                Executive, either alone or jointly with others, during the Executive's
                employment hereunder which are related to or useful in the business
                of the
                Company, or result from tasks assigned Executive by the Company,
                or result
                from use of premises owned, leased or contracted for by the
                Company.

            

    

    

    
      	 	
              (f)

            	
              The
                Executive's obligations under this Section 10 shall survive the
                termination of the Term of
                Agreement.

            

    

    

    
      	
              11.

            	
              COVENANT
                NOT TO SOLICIT.

            

    

    

    
      	 	
              (a)

            	
              To
                protect the Confidential Information and other trade secrets of the
                Company, the Executive agrees, during the term of this Agreement
                and for a
                period of twelve months after the Executive's cessation of employment
                with
                the Company, not to solicit or participate in or assist in any way
                in the
                solicitation of any employees or consultants of the Company. For
                purposes
                of this covenant, "solicit" or "solicitation" means directly or indirectly
                influencing or attempting to influence employees or consultants of
                the
                Company to become employed with any other person, partnership, firm,
                corporation or other entity. The Executive agrees that the covenants
                contained in this Section 11 are reasonable and desirable to protect
                the
                Confidential Information of the
                Company.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              It
                is the intent and desire of the Executive and the Company that the
                restrictive provisions of this Section 11 be enforced to the fullest
                extent permissible under the laws and public policies as applied
                in each
                jurisdiction in which enforcement is sought. If any particular provision
                of this Section 11 shall be determined to be invalid or unenforceable,
                such covenant shall be amended, without any action on the part of
                either
                party hereto, to delete therefrom the portion so determined to be
                invalid
                or unenforceable, such deletion to apply only with respect to the
                operation of such covenant in the particular jurisdiction in which
                such
                adjudication is made.

            

    

    

    
      	 	
              (c)

            	
              The
                Executive's obligations under this Section 11 shall survive the
                termination of the Term of
                Agreement.

            

    

    

    
      	
              12.

            	
              REMEDIES
                FOR BREACH OF OBLIGATIONS UNDER SECTIONS 10 OR 11
                HEREOF.
                The Executive acknowledges that the Company will suffer irreparable
                injury, not readily susceptible of valuation in monetary damages,
                if the
                Executive breaches his obligations under Sections 10 or 11 hereof.
                Accordingly, the Executive agrees that the Company will be entitled,
                in
                addition to any other available remedies, to seek injunctive relief
                against any breach or prospective breach by the Executive of his
                obligations under Sections 10 or 11 hereof. The Company shall seek
                such
                relief in any Federal or state court where venue would be appropriate
                based upon the Executive's principal residence or his principal place
                of
                business, or, at the Company's election, in any other state in which
                the
                Executive maintains his principal residence or his principal place
                of
                business as provided for in Section 13(j) below. The Executive hereby
                submits to the non-exclusive jurisdiction of all those courts for
                the
                purposes of any actions or proceedings instituted by the Company
                to obtain
                that injunctive relief, and the Executive agrees that process in
                any or
                all of those actions or proceedings may be served by registered mail,
                addressed to the last address provided by the Executive to the Company,
                or
                in any other manner authorized by law. Notice in such proceedings
                shall be
                given in the manner required by law. The Executive further agrees
                that, in
                addition to any other remedies available to the Company by operation
                of
                law or otherwise, in the event the Executive willfully and materially
                breaches any of his obligations under Sections 10 or 11 hereof, he
                shall
                not be entitled to any amounts which may otherwise be payable under
                the
                terms of Sections 7(b), 7(c), 7(d) and 7(e) hereof and under the
                terms of
                the benefit plans of the Company in which he participates and to
                which he
                might otherwise then be entitled by virtue hereof. Nothing in Sections
                10
                or 11 shall operate as a diminution of the Executive's obligations
                under
                the Company's standard agreements pertaining to the subject matter
                of such
                sections.

            

    

    

    
      	
              13.

            	
              MISCELLANEOUS.

            

    

    

    
      	 	
              (a)

            	
              Successors
                and Assigns.

            

    

    

    
      	 	
              (i)

            	
              This
                Agreement shall be binding upon and shall inure to the benefit of
                the
                Company, its successors and assigns and the Company shall require
                any
                successor or assign to expressly assume and agree to perform this
                Agreement in the same manner and to the same extent that the Company
                would
                be required to perform if no such succession or assignment had taken
                place. The term “the Company” as used herein shall include such successors
                and assigns. The term "successors and assigns" as used herein shall
                mean a
                corporation or other entity acquiring all or substantially all the
                assets
                and business of the Company (including this Agreement) whether by
                operation of law or otherwise, or any entity employing the Executive
                which
                has spun off or split off from the Company;
                and

            

    

    

    
      	 	
              (ii)

            	
              Neither
                this Agreement nor any right or interest hereunder shall be assignable
                or
                transferable by the Executive, his beneficiaries or legal representatives,
                except by will or by the, laws of descent and distribution. This
                Agreement
                shall inure to the benefit of and be enforceable by the Executive's
                legal
                personal representatives.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              Non-exclusivity
                of Rights.
                Nothing in this Agreement will prevent or limit the Executive's continuing
                or future participation in any written benefit, bonus, incentive
                or other
                plan or program provided by the Company or any of its subsidiaries
                and for
                which the Executive may qualify, and nothing in this Agreement will
                limit
                or reduce such rights as the Executive may have under any other written
                agreements with the Company or any of its subsidiaries. Amounts which
                are
                vested benefits or which the Executive is otherwise entitled to receive
                under any plan or program of the Company or any of its subsidiaries
                will
                be payable in accordance with such plan or program, except as explicitly
                modified by this Agreement.

            

    

    

    
      	 	
              (c)

            	
              Settlement
                of Claims.
                The Company's obligation to make the payments provided for in this
                Agreement and otherwise to perform its obligations hereunder will
                not be
                affected by any circumstances, including, without limitation, any
                set-off,
                counterclaim, recoupment, defense or other right which the Company
                may
                have against the Executive or
                others.

            

    

    

    
      	 	
              (d)

            	
              Indemnification.

            

    

    

    
      	 	
              (i)

            	
              The
                Company agrees that if the Executive is made a party to or involved
                in, or
                is threatened to be made a party to or otherwise to be involved in,
                any
                action, suit or proceeding, whether civil, criminal, administrative
                or
                investigative (a "Proceeding"), by reason of the fact that he is
                or was a
                director, officer or employee of the Company or any affiliate, or
                is, or
                was serving at the request of the Company or any affiliate as a director,
                officer, member, employee or agent of another corporation, limited
                liability corporation, partnership, joint venture, trust or other
                enterprise, including service with respect to employee benefit plans,
                whether or not the basis of such Proceeding is the Executive's alleged
                action in an official capacity while serving as a director, officer,
                member, employee or agent, the Executive shall be indemnified and
                held
                harmless by the Company and each relevant against any and all liabilities,
                losses, expenses, judgments, penalties, fines and amounts reasonably
                paid
                in settlement in connection therewith, and shall be advanced reasonable
                expenses (including attorneys' fees) as and when incurred in connection
                therewith, to the fullest extent legally permitted or authorized
                by
                Company’s by-laws or, if greater, by the laws of the State of Nevada, as
                may be in effect from time to time. The rights conferred on the Executive
                by this Section 13 (d)(i) shall not be exclusive of any other rights
                which
                the Executive may have or hereafter acquire under any statute, the
                by-laws, agreement, vote of stockholders or disinterested directors,
                or
                otherwise. In this regard, the Executive shall have full discretion
                as to
                choice of counsel in all matters subject to indemnification under
                this
                Agreement. The indemnification and advancement of expenses provided
                for by
                this Section shall continue as to the Executive after he ceases to
                be a
                director, officer or employee and shall inure to the benefit of his
                heirs,
                executors and administrators, and shall survive any termination or
                non-renewal of this Agreement. In addition, the Executive shall also
                be
                entitled to indemnification from the Company on terms no less advantageous
                to the Executive as are provided to any officer or director of the
                Company; and 

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (ii)

            	
              For
                the Initial Term and thereafter, the Executive shall be covered by
                any
                directors' and officers' liability policy maintained by Employer
                from time
                to time.

            

    

    

    
      	 	
              (e)

            	
              Legal
                Counsel.
                The Executive acknowledges that he has had the opportunity to consult
                with
                legal counsel of his choice in connection with the drafting, negotiation
                and execution of this Agreement and related employment
                arrangements.

            

    

    

    
      	 	
              (f)

            	
              Notice.
                For the purposes of this Agreement, notices and all other communications
                provided for in the Agreement (including the Notice of Termination)
                shall
                be in writing and shall be deemed to have been duly given when personally
                delivered or sent by Certified mail, return receipt requested, postage
                prepaid, addressed to the respective addresses last given by each
                party to
                the other, provided that all notices to the Company shall be directed
                to
                the attention of the President. All notices and communications shall
                be
                deemed to have been received on the date of delivery thereof or on
                the
                third business day after the mailing thereof, except that notice
                of change
                of address shall be effective only upon
                receipt.

            

    

    

    
      	 	
              (g)

            	
              Withholding.
                The Company shall be entitled to withhold the amount, if any, of
                all taxes
                of any applicable jurisdiction required to be withheld by an employer
                with
                respect to any amount paid to the Executive hereunder. The Company,
                in its
                sole and absolute discretion, shall make all determinations as to
                whether
                it is obligated to withhold any taxes hereunder and the amount
                hereof.

            

    

    

    
      	 	
              (h)

            	
              Modification.
                No provision of this Agreement may be modified, waived or discharged
                unless such waiver, modification or discharge is agreed to in writing
                and
                signed by the Executive and the Company. No waiver by either party
                hereto
                at any time of any breach by the other party hereto of, or compliance
                with, any condition or provision of this Agreement to be performed
                by such
                other party shall be deemed a waiver of similar or dissimilar provisions
                or conditions at the same or at any prior or subsequent
                time.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (i)

            	
              Arbitration.
                If any legally actionable dispute arises under this Agreement or
                otherwise
                which cannot be resolved by mutual discussion between the parties,
                then
                the Company and the Executive each agree to resolve that dispute
                by
                binding arbitration before an arbitrator experienced in employment
                law.
                Said arbitration will be conducted in accordance with the rules applicable
                to employment disputes of the Judicial Arbitration and Mediation
                Services
                ("JAMS") and the law applicable to the claim. The parties shall have
                30
                calendar days after notice of such arbitration has been given to
                attempt
                to agree on the selection of an arbitrator. In the event the parties
                are
                unable to agree in such time, JAMS will provide a list of nine available
                arbitrators and an arbitrator will be selected from such nine-member
                panel
                provided by JAMS by the parties alternately striking out one name
                of a
                potential arbitrator until only one name remains. The party entitled
                to
                strike an arbitrator first shall be selected by a toss of a coin.
                The
                parties agree that this agreement to arbitrate includes any such
                disputes
                that the Company may have against the Executive, or the Executive
                may have
                against the Company and/or its related entities and/or employees,
                arising
                out of or relating to this Agreement, or Executive's employment,
                or the
                Executive's termination, including, but not limited to, any claims
                of
                discrimination or harassment in violation of applicable law and any
                other
                aspect of the Executive's compensation, employment, or the Executive's
                termination. The parties further agree that arbitration as provided
                for in
                this Section 13(j) is the exclusive and binding remedy for any such
                dispute and will be used instead of any court action, which is hereby
                expressly waived, except for any request by either party for temporary
                or
                preliminary injunctive relief pending arbitration in accordance with
                applicable law or for breaches by the Executive of the Executive's
                obligations under Sections 10 or 11 above, or an administrative claim
                with
                an administrative agency. The parties agree that the arbitration
                provided
                herein shall be conducted in Orange County, California unless otherwise
                mutually agreed, or unless the Executive's primary place of employment
                is
                a different location. The Company shall pay the cost of any arbitration
                brought pursuant to this paragraph, including filing fees, administrative
                fees and the costs of the arbitrator, excluding, however, the filing
                fees
                of the Executive if he is the moving party to the extent such fees
                are
                equal to or less than those that would applicable to file a complaint
                in
                the Orange County Superior Court and the cost of representation of
                the
                Executive unless such cost is awarded in accordance with law or otherwise
                awarded by the arbitrators.

            

    

    

    
      	 	
              (j)

            	
              Governing
                Law.
                This Agreement shall be governed by and construed and enforced in
                accordance with the laws of the State of California applicable to
                contracts executed in and to be performed entirely within such State,
                without giving effect to the conflict of law principles
                thereof.

            

    

    

    
      	 	
              (k)

            	
              No
                Conflicts.
                The Executive represents and warrants to the Company that he is not
                a
                party to, or otherwise bound by any agreement or arrangement (including,
                without limitation, any license, covenant, or commitment of any nature),
                or subject to any judgment, decree, or order of any court or
                administrative agency, that would conflict with or will be in conflict
                with, or in any way preclude, limit or inhibit the Executive's ability
                to
                execute this Agreement, or to carry out his duties and responsibilities
                hereunder.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (l)

            	
              Trade
                Secrets of Others.
                The Company acknowledges that the Executive, as a current and/or
                former
                employee or independent contractor of another company, may previously
                have
                been privy to trade secrets and/or confidential information of such
                other
                company, and may be under an obligation to such other company to
                maintain
                the confidentiality of such trade secrets or confidential information.
                Accordingly, to the extent the Executive is under such an obligation,
                the
                Executive shall not: (i) bring any records, notes, files, drawings,
                documents, plans and like items, provided to him in confidence by
                such
                other company, or any copies thereof, relating to or containing or
                disclosing confidential information or trade secrets of any such
                other
                company on the premises of the Company, or otherwise use such documents
                and items in the performance of services for the Company; or (ii)
                disclose
                any confidential information or trade secrets provided to the Executive
                in
                confidence by such other company to any other employee of the Company;
                provided, however, that this prohibition only applies to documents
                or
                information that the Executive obtained or learned before the beginning
                of
                his relationship with the Company.

            

    

    

    
      	 	
              (m)

            	
              Severability.
                The provisions of this Agreement shall be deemed severable and the
                invalidity or unenforceability of any provision shall not affect
                the
                validity or enforceability of the other provisions
                hereof

            

    

    

    
      	 	
              (n)

            	
              Entire
                Agreement.
                This Agreement constitutes the entire agreement between the parties
                hereto
                and supersedes all prior agreements, if any, understandings and
                arrangements, oral or written, between the parties hereto with respect
                to
                the subject matter hereof. No agreement or representations, oral
                or
                otherwise, express or implied, with respect to the subject matter
                hereof
                have been made by either party which are not expressly set forth
                in this
                Agreement.

            

    

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
      the
      day and year first above written.

     

    
      	 	 	
            	COBALIS CORP.
	 	 	 	 
	 	 	 	 
	
            	 	By:	/s/ Chaslav
              Radovich
	
            	 	 	
              
                

              

              CHASLAV RADOVICH

              President and CEO

            

    

    

    
       

      
        	 	 	
              	The Executive
	 	 	 	 
	 	 	 	 
	
              	 	By:	/s/ Thomas
                Stankovich
	
              	 	 	
                
                  

                

                THOMAS STANKOVICH

              

      

      

    

    20

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