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Unassociated Document

    AMENDED
      AND RESTATED

    EMPLOYMENT
      AGREEMENT

     

    This
      Amended and Restated Employment Agreement, dated as of the 10th day of September
      2007, between Robert
      P. Belcher
      (the
“Executive”) and Memry
      Corporation,
      a
      Delaware corporation (the “Company”).

    

    WITNESSETH,

    

    WHEREAS,
      the Company and the Executive entered into an employment agreement on September
      1, 2001 (as amended and restated on July 21, 2004, and amended on January 19,
      2006 and on April 13, 2006, the “Prior Employment Agreement”);

    

    WHEREAS,
      the Company and the Executive desire to amend and restate the Prior Employment
      Agreement on the terms and conditions set forth below (this
“Agreement”);

    

    NOW,
      THEREFORE, in consideration of the premises and of the covenants and agreements
      set forth herein, the parties agree as follows:

    

    1.   Employment
      and Duties.

    

    (a) The
      Company hereby agrees to employ the Executive, and the Executive hereby accepts
      employment, upon the terms and conditions set forth herein. During the period
      during which he is employed hereunder (the “Period of Employment”), the
      Executive shall diligently and faithfully serve the Company in the capacity
      of
      Chief Executive Officer or in such other and/or lesser executive capacity or
      capacities as the Board of Directors and the Executive may, from time to time,
      agree. 

    

    (b) During
      the Period of Employment, the Executive shall, at the request of the Company,
      serve as an officer and/or director of direct and indirect subsidiaries, and
      other affiliates, of the Company as the Company, acting through its Board of
      Directors, shall request from time to time.

    

    (c) The
      Executive shall devote his best efforts and substantially all of his business
      time, services and attention to the advancement of the Company’s business and
      interests during the Period of Employment. The restrictions in this Section
      1
      shall in no way prevent the Executive from (except as set forth in the
      immediately succeeding sentence) pursuing other activities, so long as all
      of
      such other activities do not, in the aggregate, materially interfere with the
      Executive’s duties hereunder (including his obligation to devote substantially
      all of his business time, services and attention to the Company).
      Notwithstanding the foregoing, however, the Executive shall not accept any
      outside directorships during the Period of Employment without the prior consent
      of the Company’s Board of Directors.

    

    (d) The
      Executive shall, at all times during the Period of Employment, diligently and
      faithfully carry out the policies, programs and directions of the Board of
      Directors of the Company. The Executive shall comply with the directions and
      instructions made or given by or under the authority of the Company’s Board of
      Directors and whenever requested to do so shall give an account of all
      transactions, matters and things related to the Company and its affiliates
      and
      their affairs with which the Executive is entrusted.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.   Term.
      The
      Period of Employment shall commence on the date hereof and shall continue unless
      and until terminated as set forth in Section 8 hereof. 

     

    3.   Compensation.
      In
      consideration of the services rendered and to be rendered by the Executive,
      the
      Company agrees to compensate the Executive during the Period of Employment
      as
      follows:

    

    (a) From
      the
      date hereof, the Company shall pay to the Executive an annual base salary of
      $297,285, payable in equal installments every two weeks. The
      Executive’s base salary may be increased from time to time by the Board in
      accordance with normal business practices of the Company.

    

    (b) The
      Executive shall also be entitled to receive additional compensation in the
      form
      of an annual target bonus in an amount equal to 60% of the Executive’s base
      annual salary, determined by and in the sole discretion of the Board of
      Directors of the Company. Such target amount is based upon the Company meeting
      Company performance goals and objectives. The Executive shall also be eligible
      to receive, on an annual basis, 175,000 stock options pursuant to any bonus
      and/or incentive compensation programs that may be established by the Company,
      including without limitation the Company’s current incentive plans; provided,
      however, that nothing set forth in this sentence will in any way limit the
      Board
      of Directors discretion to approve or reject any bonus that the Executive would
      otherwise be due under any such plans. 

    

    (c) The
      Executive shall be entitled to an automobile allowance of $500 per month, to
      be
      paid in accordance with the Company’s policy for paying automobile allowances as
      in effect from time to time.

    

    (d) The
      Executive shall also be entitled to receive up to $15,000 per year from the
      Company towards retirement and/or deferred compensation benefits. This amount
      may be invested in any manner as may be selected by the Executive.

    

    (e) The
      Executive shall be entitled to other fringe benefits comparable to the benefits
      afforded to other executive employees of the Company, including but not limited
      to reasonable sick leave and coverage under any health, dental, accident,
      hospitalization, disability, retirement, life insurance, 401(k), and annuity
      plans, programs or policies maintained by the Company. In addition, and without
      limiting the foregoing, the Company shall provide the Executive with twenty
      working days of vacation per calendar year, no more than thirty of which (in
      the
      aggregate) may be carried over from one year to the next.

    

    (f) The
      Executive shall be entitled to reimbursement, in accordance with Company policy,
      of all reasonable out-of-pocket expenses which he incurs on behalf of the
      Company in the course of performing his duties hereunder, subject to furnishing
      appropriate documentation of such expenses to the Company’s Chief Executive
      Officer.

    

    4.   Covenant
      Not to Compete; Nonsolicitation.
      

     

    (a) Except
      as
      specifically set forth in this Section 4, during the Period of Employment,
      the
      Executive will not engage, directly or indirectly, anywhere in the United States
      (including its territories, possessions and commonwealths) or Canada in any
      business which competes or could reasonably be expected to compete with the
      Company and/or its affiliates and, for such time after the termination of the
      Period of Employment with respect to which the Company is providing severance
      payments or benefits to the Executive (i.e., eighteen (18) months under the
      terms of Section 8(e)), any business which competes or could reasonably be
      expected to compete with the Company and/or its affiliates as of the date of
      termination of the Period of Employment; provided, however, that the ownership
      by the Executive of less than 2% of the outstanding stock of any publicly traded
      corporation shall not be deemed solely by reason thereof to cause the Executive
      to be engaged in any businesses being conducted by such publicly traded
      corporation. Notwithstanding the foregoing, the Executive, at his sole
      discretion, may, by written notice to the Company within ten (10) days following
      the termination of the Period of Employment, elect to not receive severance
      payments or benefits pursuant to Section 8(e) of this Agreement, and, in return,
      the Executive’s post-termination non-competition obligations pursuant to this
      Section 4(a) shall terminate. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) During
      the Period of Employment and for a period of two years thereafter, the Executive
      will not, directly or indirectly, either for himself or for any other person
      or
      entity (i) solicit (A) any employee of the Company or any affiliate of the
      Company to terminate his or her employment with the Company or such affiliate
      during his or her employment with the Company or such affiliate or (B) any
      former employee of the Company or an affiliate of the Company for a period
      of
      one year after such individual terminates his or his employment with the Company
      or such affiliate, (ii) solicit any customer or client of the Company or any
      such affiliate (or any prospective customer or client of the Company or such
      affiliate) as of the termination of the Period of Employment to terminate its
      relationship with the Company or such affiliate, or do business with any third
      parties, or (iii) take any action that is reasonably likely to cause injury
      to
      the relationships between the Company or any such affiliate or any of their
      respective employees and any lessor, lessee, vendor, supplier, customer,
      distributor, employee, consultant or other business associate of the Company
      or
      any such affiliate as such relationship relates to the Company’s or such
      affiliate’s conduct of its business.

     

    (c) If
      the
      final judgment of a court of competent jurisdiction declares that any term
      or
      provision of this Section 4 is invalid or unenforceable, the parties agree
      that
      the court making the determination of invalidity or unenforceability shall
      have
      the power to reduce the scope, duration, or area of the term or provision,
      to
      delete specific words or phrases, or to replace any invalid or unenforceable
      term or provision with a term or provision that is valid and enforceable and
      that comes closest to expressing the intention of the invalid or unenforceable
      term or provision, and this Agreement shall be enforceable as so modified after
      the expiration of the time within
      which
      the judgment may be appealed.

     

    5.   Covenant
      Not to Disclose Information.
      The
      Executive agrees that during the Period of Employment and thereafter, he will
      not use or disclose, other than to another employee of the Company, qualified
      by
      the Company to receive that information in the normal course of business, any
      confidential information or trade secrets of the Company or any affiliate of
      the
      Company which were made known to him by the Company, its officers or employees
      or affiliates, or learned by him while in the Company’s employ, without the
      prior written consent of the Company, and that upon termination of his
      employment for any reason, he will promptly return to the Company any and all
      properties, records, figures, calculations, letters, papers, drawings,
      schematics or copies thereof or other confidential information of the Company
      and its affiliates of any type or description. It is understood that the term
      “trade secrets” as used in this Agreement is deemed to include, without
      limitation, lists of the Company’s and its affiliates’ respective customers,
      information relating to their practices, know-how, processes and inventions,
      and
      any other information of whatever nature which gives the Company or any
      affiliate an opportunity to obtain an advantage over its competitors who do
      not
      have access to such information.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.   Remedy
      at Law Inadequate.
      The
      Executive acknowledges that any remedy at law for breach of any of the
      restrictive covenants (Sections 4 and 5) contained in this Agreement would
      be
      inadequate and the Company shall be entitled to injunctive relief in the event
      of any such breach. 

    

    7.   Inventions
      and Improvements.
      With
      respect to any and all inventions (as defined in Section 7(e) below) made or
      conceived by the Executive, whether or not during his hours of employment,
      either solely or jointly with others, during the Period of Employment, without
      additional consideration:

    

    (a) The
      Executive shall promptly inform the Company of any such invention.

    

    (b) Any
      such
      invention, whether patentable or not, shall be the property of the Company,
      and
      the Executive hereby assigns and agrees to assign to the Company all his rights
      to any such invention, and to any United States and/or foreign letters patent
      granted upon any such invention or any application therefor.

    

    (c) The
      Executive shall apply, at the Company’s request and expense, for United States
      and/or foreign letters patent either in the Executive’s name or otherwise as the
      Company may desire.

    

    (d) The
      Executive shall acknowledge and deliver promptly to the Company, without charge
      to the Company but at its expense, all sketches, drawings, models and figures
      and other information and shall perform such other acts, such as giving
      testimony in support of his inventorship, as may be necessary in the opinion
      of
      the Company to obtain and maintain United States and/or foreign letters patent
      and to vest the entire right and title thereto in the Company.

    

    (e) For
      purposes of this Section, the term “invention” shall be deemed to mean any
      discovery, concept or idea (whether patentable or not), including but not
      limited to processes, methods, formulas, techniques, hardware developments
      and
      software developments, as well as improvements thereof or know-how related
      thereto, (i) concerning any present or prospective activities of the Company
      and
      its affiliates and (ii) (A) which the Executive becomes acquainted with as
      a
      result of his employment by the Company, (B) which results from any work he
      may
      do for, or at the request of, the Company or any of its affiliates, (C) which
      relate to the Company’s or any affiliates’ business or actual or demonstrably
      anticipated research and development, or (D) which are developed in any part
      by
      use of the Company’s or any such affiliates’ equipment, supplies, facilities or
      trade secrets.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      parties hereto agree that the covenants and agreements contained in this Section
      7 are, taken as a whole, reasonable in their scope and duration, and no party
      shall raise any issue of the reasonableness of the scope or duration of any
      such
      covenants in any proceeding to enforce any such covenants.

    

    8.   Termination
      of Employment.

    

    (a) The
      Executive’s Period of Employment may not be terminated except in accordance with
      the provisions of this Section 8.

     

    (b) The
      Executive’s Period of Employment may be terminated by the Company for cause. For
      purposes of this Agreement, “for cause” means that termination occurs in
      connection with a determination, made at a meeting of the Board of Directors
      at
      which the Executive (and, at the Executive’s option, his counsel) shall have had
      a right to participate, that the Executive has (i) committed an act of gross
      negligence or willful misconduct, or a gross dereliction of duty, that has
      materially and adversely affected the overall performance of his duties
      hereunder; (ii) committed fraud upon the Company in his capacity as an employee
      hereunder; (iii) been convicted of, or pled guilty (or nolo contendere) to,
      a
      felony that the Board of Directors, acting in good faith, determines is or
      would
      reasonably be expected to have a material adverse effect upon the business,
      operations, reputation, integrity, financial condition or prospects of the
      Company; (iv) any material breach by the Executive of the terms hereof; (v)
      failure to follow instructions from a person authorized to give them pursuant
      to
      Section 1(d) above that is lawful and not inconsistent with the terms hereof;
      (vi) the Executive’s habitual drunkenness or habitual substance abuse; or (vii)
      civil or criminal violation of any state or federal government statute or
      regulation, or of any state or federal law relating to the workplace environment
      (including without limitation laws relating to sexual harassment or age, sex
      or
      other prohibited discrimination), or any violation of any Company policy adopted
      in respect of any of the foregoing. “For cause” termination must be accompanied
      by a written notice to that effect. If the Executive is terminated for cause,
      the Executive shall be paid through the date of his termination.

    

    (c) If
      the
      Executive dies, the Period of Employment shall terminate effective at the time
      of his death; provided, however, that such termination shall not result in
      the
      loss of any benefit or rights which the Executive may have accrued through
      the
      date of his death. If the Period of Employment is terminated due to the
      Executive’s death, the Company shall make a severance payment to the Executive’s
      legal representatives equal to the Executive’s regular base salary payments
      through the end of the month in which such death occurs. In addition, the
      Company shall make a severance payment to the Executive’s legal representative
      equal to the Executive’s target bonus described in Section 3(b), pro rated for
      the portion of such fiscal year completed prior to the Executive’s death;
      provided, however, that such pro rated portion of the Executive’s target bonus
      shall be paid to the Executive’s legal representative following the completion
      of such fiscal year at the time similar bonuses are paid to other employees
      of
      the Company. 

     

    (d) If
      the
      Executive becomes disabled, the Period of Employment may be terminated, at
      the
      Company’s option, at the end of the calendar month during which his disability
      is determined; provided, however, that such termination shall not result in
      the
      loss of any benefits or rights which the Executive may have accrued through
      the
      date of his disability. If the Period of Employment is terminated on or after
      January 1, 2008 due to the Executive’s disability, the Company shall make a
      lump-sum payment to the Executive or his legal representative within two (2)
      days following the date of termination equal to fifty percent (50%) of the
      annual base salary at the rate of salary in effect immediately prior to the
      effective date of such termination. If the Period of Employment is terminated
      on
      or before December 31, 2007 due to the Executive’s disability, the Company shall
      make a payment to the Executive or his legal representative equal to the
      Executive’s regular salary payments for a period of six (6) months from the date
      of such termination or, if sooner, until payments begin under any disability
      insurance policy maintained by the Company for the benefit of the Executive.
      For
      the purposes of this section, the definition of “disability” shall be the same
      as the definition of a “permanent disability” contained in any long-term
      disability insurance policy maintained by the Company in effect at the time
      of
      the purported disability, or last in effect, if no policy is then in
      effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) If
      the
      Executive’s Period of Employment is terminated by the Executive for “Good
      Reason,” as hereinafter defined, or is terminated by the Company (other than
      pursuant to Section 8(d)) without cause (and the Company may terminate the
      Period of Employment without cause at any time), then, in addition to the other
      rights to which the Executive is entitled upon a termination as provided for
      herein, the Executive shall also be entitled to (1) a lump-sum payment on the
      date of termination equal to the sum of (A) 150% (i.e., 18 months) of the
      Executive’s annual base salary, at the rate of salary in effect immediately
      prior to the effective date of such termination (without regard to any purported
      or attempted reduction of such rate by the Company), plus (B) 150% (i.e., 18
      months) of the Executive’s target bonus for the fiscal year during which
      termination occurs based on the rate of salary in effect immediately prior
      to
      the effective date of such termination (without regard to any purported or
      attempted reduction of such rate by the Company) and (2) continued participation
      in the Company’s health plan as an active employee (based on the elections in
      effect on the date of termination) as in effect from time to time for the
      eighteen (18)-month period immediately following the Executive’s termination of
      employment (provided that the Company may satisfy this obligation by paying
      the
      Executive’s COBRA continuation premiums during this period if the Executive is
      not eligible to participate in the Company’s health plan as an active
      employee).
      For
      purposes of this Agreement, the term “Good Reason” shall mean: (i) the failure
      by the Company to materially observe or comply with any of the material
      provisions of this Agreement; or (ii) at the election of the Executive, if,
      in
      connection with or during the two (2)-year period following a Change in Control
      (as defined in Section 10(f)), there is a material diminution in the authority
      (which shall include a diminution of the Executive’s position), duties and/or
      responsibilities of the Executive; or (iii) the relocation of the Executive’s
      principal place of business to a location more than sixty (60) miles (which
      is a
      material change in the geographic location at which the Executive must provide
      services) from both (A) Bethel, Connecticut and (B) Easton, Connecticut, without
      the Executive’s prior consent. Notwithstanding the foregoing, a termination of
      employment by the Executive for Good Reason shall not occur unless (1) the
      Executive provides written notice to the Company of the existence of the
      condition described in clause (i), (ii), and/or (iii) and a thirty (30)-day
      opportunity to cure, (2) the Executive provides notice of the condition
      constituting Good Reason within ninety (90) days following the initial
      occurrence of the condition described in clause (i), (ii) or (iii) above, and
      (3) the Executive’s termination of employment occurs within two (2) years
      following the initial occurrence the condition described in clause (i), (ii)
      or
      (iii) above. For purposes of clause (ii) above, a removal of the Executive
      from
      the position of Chief Executive Officer in contemplation of a proposed
      transaction that would constitute a Change in Control or during the two-year
      period following a Change in Control shall be deemed a material diminution
      of
      the authority of the Executive. Further, in the event of a termination pursuant
      to this Section 8(e), or pursuant to Section 8(c) or Section 8(d) above, all
      outstanding incentive and non-qualified stock options then held by the Executive
      still subject to any vesting requirements shall have such vesting requirements
      terminated (such that all such options are then immediately
      exercisable).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f) The
      Period of Employment may be terminated
      by the Executive without Good Reason at any time by providing thirty (30) days’
prior written notice to the Company.
      In
      the
      event of termination of the Executive pursuant to this Section 8(f), the Board
      may elect to waive the period of notice, or any portion thereof, and, if the
      Board so elects, the Company will pay the Executive his base salary for the
      notice period (or for any remaining portion of the period).

     

    9.   Effect
      of Termination.
      Upon
      termination of the Executive’s employment for any reason whatsoever, all rights
      and obligations of the parties under this Agreement shall cease, except that
      the
      Executive shall continue to be bound by the covenants set forth in Sections
      4,
      5, 6 and 7 hereof, and the Company shall be bound to pay to the Executive
      accrued compensation, including salary and other benefits, to the date of
      termination and any severance payments which may be owed under the provisions
      of
      Section 8 hereof.

    

    10.        
      Miscellaneous.

    

    (a) This
      Agreement may not be assigned by the Executive. The Company may assign this
      Agreement in connection with a Change in Control of the Company.

    

    (b) In
      the
      event that any provision of this Agreement is found by a court of competent
      jurisdiction to be invalid or unenforceable, such provision shall be, and shall
      be deemed to be, modified so as to become valid and enforceable, and the
      remaining provisions of this Agreement shall not be affected.

    

    (c) This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Connecticut.

    

    (d) No
      modification of this Agreement shall be effective unless in a writing executed
      by both parties.

    

    (e) This
      Agreement constitutes the entire agreement of the parties with respect to the
      subject matter hereof, and supercedes all prior agreements, representations
      and
      promises by either party or between the parties, including without limitation,
      the Prior Employment Agreement.

    

    (f) For
      purposes of this Agreement, “Change in Control of the Company” shall mean: (i)
      any merger or consolidation or other corporate reorganization of the Company
      in
      which the Company is not the surviving entity; or (ii) any sale of all or
      substantially all of the Company’s assets, in either a single transaction or a
      series of transactions; or (iii) a liquidation of all or substantially all
      of
      the Company’s assets; or (iv) a change within one twelve-month period of a
      majority of the directors constituting the Company’s Board of Directors at the
      beginning of such twelve-month period; or (v) if a single person or entity,
      or a
      related group of persons or entities, at any time acquires beneficial ownership
      (within the meaning of Rule 13d-3 promulgated under the Securities Exchange
      Act
      of 1934, as amended) of 25% or more of the Company’s outstanding voting
      securities; unless, (x) with respect to any event described in clauses (i)
      through (v), the Executive agrees in writing, prior to the consummation of
      the
      event giving rise to the Change in Control of the Company, that such event
      or
      events does not for purposes of this Agreement constitute a Change in Control
      of
      the Company or, as a director, votes in favor of the matter that would otherwise
      cause the Change in Control of the Company or, (y) with respect to clause (iv),
      the change of directors is approved by the Board of Directors as constituted
      prior to such change.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g) Section
      409A. Payments in the event of a Termination of Employment, Disability, Change
      in Control or Otherwise.

     

    (1) Notwithstanding
      anything to the contrary contained herein, in the event that the Executive
      constitutes a “specified employee” (within the meaning of Section 409A of the
      Internal Revenue Code of 1986, as amended (the “Code”)) and becomes entitled to
      one or more payments hereunder on account of termination of employment, to
      the
      extent such payments would otherwise be subject to the excise tax under Code
      Section 409A and are payable within the first six (6) months following a
      termination of employment, such payments shall instead be made on the first
      day
      of the seventh month following such termination of employment and any remaining
      payments shall be paid according to the schedule otherwise applicable to the
      payments. For purposes of clarification, this provision shall apply to any
      severance payable to the Executive pursuant to Section 8(d) in the event of
      a
      termination of employment pursuant to Section 8(d) prior to January 1,
      2008.

     

    (2) The
      parties hereto intend that this Agreement shall be in compliance with Code
      Section 409A and this Agreement shall be interpreted consistent therewith.
      Notwithstanding the foregoing, the Company shall not be liable for any taxes,
      penalties, interest or other costs that may arise under Section 409A or
      otherwise.

    

    (3) For
      purpose of clarification, the parties intend that the severance payable to
      the
      Executive pursuant to Sections 8(d) and (e) with respect to a termination of
      employment on or after January 1, 2008 qualifies as a “short term” deferral
      pursuant to Treasury Regulation Section 1.409A-1(b)(4).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date
      first above written.

    
      

        
          	 	
                  MEMRY
                    CORPORATION

                	 
	 	 	 
	 	
                  By:

                	
                    
                    /s/ Marcy Macdonald

                	 
	 	 	
                  Name:
                    Marcy Macdonald

                	 
	 	 	
                  Title:
                    Vice President, Human Resources

                	 
	 	 	 	 
	 	       /s/
                  Robert P. Belcher	 
	 	Robert
                  P. BelcherAMENDED
      AND RESTATED

    EMPLOYMENT
      AGREEMENT

    

    This
      Amended and Restated Employment Agreement, dated as of the 10th day of
      September, 2007, between
      Dean Tulumaris
      (the
“Executive”) and
      Memry Corporation,
      a
      Delaware corporation (the “Company”).

    

    WITNESSETH,

    

    WHEREAS,
      the Company and the Executive entered into an offer letter on July 31, 2002
      (the
“Offer Letter”) which was superseded and replaced by an employment agreement
      dated as of May 26, 2005 (as amended and restated on April 28, 2006, the “Prior
      Employment Agreement”); and

     

    WHEREAS,
      the Company and the Executive desire to amend and restate the Prior Employment
      Agreement on the terms and conditions set forth below (this
“Agreement”).

    

    NOW,
      THEREFORE, in consideration of the premises and of the covenants and agreements
      set forth herein, the parties agree as follows:

    

    1.
      Employment and Duties.

    

    (a)
      The
      Company hereby agrees to employ the Executive, and the Executive hereby accepts
      employment, upon the terms and conditions set forth herein. During the period
      during which he is employed hereunder (the “Period of Employment”), the
      Executive shall diligently and faithfully serve the Company in the capacity
      of
      President and Chief Operating Officer, or in such other and/or lesser executive
      capacity or capacities as the Board of Directors and the Executive may, from
      time to time, agree.

    

    (b)
      During the Period of Employment hereof, the Executive shall, at the request
      of
      the Company, serve as an officer and/or director of direct and indirect
      subsidiaries, and other affiliates, of the Company as the Company, acting
      through its Board of Directors, shall request from time to time.

    

    (c)
      The
      Executive shall devote his best efforts and substantially all of his business
      time, services and attention to the advancement of the Company’s business and
      interests during the Period of Employment. The restrictions in this
      Section 1 shall in no way prevent the Executive from (except as set forth
      in the immediately succeeding sentence) pursuing other activities, so long
      as
      all of such other activities do not, in the aggregate, materially interfere
      with
      the Executive’s duties hereunder (including his obligation to devote
      substantially all of his business time, services and attention to the Company).
      Notwithstanding the foregoing, however, the Executive shall not accept any
      outside directorships during the Period of Employment without the prior consent
      of the Company’s Board of Directors.

    

    (d)
      The
      Executive shall, at all times during the Period of Employment, diligently and
      faithfully carry out the policies, programs and directions of the Board of
      Directors of the Company and the Company’s senior management. The Executive
      shall comply with the directions and instructions made or given by or under
      the
      authority of the Company’s President and Chief Operating Officer and whenever
      requested to do so shall give an account of all transactions, matters and things
      related to the Company and its affiliates and their affairs with which the
      Executive is entrusted.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.
      Term.
      The
      Period of Employment shall commence on the date hereof and shall continue unless
      and until terminated as set forth in Section 8 hereof.

    

    3.
      Compensation.
      In
      consideration of the services rendered and to be rendered by the Executive,
      the
      Company agrees to compensate the Executive during the Period of Employment
      as
      follows:

    

    (a)
      From
      the date hereof the Company shall pay to the Executive an annual base salary
      of
      $229,164, payable in equal installments every two weeks. The Executive’s base
      salary may be increased from time to time by the Board in accordance with normal
      business practices of the Company.

    

    (b)
      The
      Executive shall also be entitled to receive additional compensation in the
      form
      of an annual target bonus in an amount equal to 50% of the Executive’s base
      annual salary, determined by and in the sole discretion of the Board of
      Directors of the Company. Such target amount is based upon the Company meeting
      Company performance goals and objectives. The Executive shall also be eligible
      to receive, on an annual basis 100,000 performance based stock option grants
      pursuant to any bonus and/or incentive compensation programs that may be
      established by the Company, including without limitation the Company’s current
      incentive plans; provided,
      however,
      that
      nothing set forth in this sentence will in any way limit the Board of Directors
      discretion to approve or reject any bonus that the Executive would otherwise
      be
      due under any such plans.

    

    (c)
      The
      Executive shall receive use of a company vehicle subject to all legal and tax
      regulations as dictated by the Internal Revenue Code as amended.

    

    (d)
      The
      Executive shall be entitled to other fringe benefits comparable to the benefits
      afforded to other executive employees of the Company, including but not limited
      to reasonable sick leave and coverage under any health, dental, accident,
      hospitalization, disability, retirement, life insurance, 401(k), and annuity
      plans, programs or policies maintained by the Company. In addition, and without
      limiting the foregoing, the Company shall provide the Executive with twenty
      working days of vacation per calendar year, no more than thirty of which (in
      the
      aggregate) may be carried over from one year to the next. 

    

    (e)
      The
      Executive shall be entitled to reimbursement, in accordance with Company policy,
      of all reasonable out-of-pocket expenses which he incurs on behalf of the
      Company in the course of performing his duties hereunder, subject to furnishing
      appropriate documentation of such expenses to the Company’s Chief Executive
      Officer.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    4.
      Covenant Not to Compete; Nonsolicitation.

    

    (a)
      Except
      as
      specifically set forth in this Section 4, during the Period of Employment,
      the Executive will not engage, directly or indirectly, anywhere in the United
      States (including its territories, possessions and commonwealths) or Canada
      in
      any business which competes or could reasonably be expected to compete with
      the
      Company and/or its affiliates and, for a period of one year after the
      termination of the Period of Employment, any business which competes or could
      reasonably be expected to compete with the Company and/or its affiliates as
      of
      the date of termination; provided,
      however,
      that
      (i) the ownership by the Executive of less than 2% of the outstanding stock
      of any publicly traded corporation shall not be deemed solely by reason thereof
      to cause the Executive to be engaged in any businesses being conducted by such
      publicly traded corporation; and (ii) the Company, at its sole discretion,
      may, by written notice to the Executive no more than six (6) months and no
      less than three (3) months prior to the end of the one-year period
      described above, extend such one-year period for a second year, in which case
      the Company will be obligated to pay the Executive, quarterly in advance, at
      the
      rate of the Executive’s base salary in effect on the last day of the Period of
      Employment, for such additional one-year non-compete period. 

    

    (b)
      During the Period of Employment and for a period of two years thereafter, the
      Executive will not, directly or indirectly, either for himself or for any other
      person or entity (i) solicit (A) any employee of the Company or any
      affiliate of the Company to terminate his or her employment with the Company
      or
      such affiliate during his or her employment with the Company or such affiliate
      or (B) any former employee of the Company or an affiliate of the Company
      for a period of one year after such individual terminates his or his employment
      with the Company or such affiliate, (ii) solicit any customer or client of
      the Company or any such affiliate (or any prospective customer or client of
      the
      Company or such affiliate) as of the termination of the Period of Employment
      to
      terminate its relationship with the Company or such affiliate, or do business
      with any third parties, or (iii) take any action that is reasonably likely
      to cause injury to the relationships between the Company or any such affiliate
      or any of their respective employees and any lessor, lessee, vendor, supplier,
      customer, distributor, employee, consultant or other business associate of
      the
      Company or any such affiliate as such relationship relates to the Company’s or
      such affiliate’s conduct of its business.

    

    (c) If
      the
      final judgment of a court of competent jurisdiction declares that any term
      or
      provision of this Section 4 is invalid or unenforceable, the parties agree
      that the court making the determination of invalidity or unenforceability shall
      have the power to reduce the scope, duration, or area of the term or provision,
      to delete specific words or phrases, or to replace any invalid or unenforceable
      term or provision with a term or provision that is valid and enforceable and
      that comes closest to expressing the intention of the invalid or unenforceable
      term or provision, and this Agreement shall be enforceable as so modified after
      the expiration of the time within which the judgment may be
      appealed.

    

    5.
      Covenant Not to Disclose Information.
      The
      Executive agrees that during the Period of Employment and thereafter, he will
      not use or disclose, other than to another employee of the Company, qualified
      by
      the Company to receive that information in the normal course of business, any
      then confidential information or trade secrets of the Company or any affiliate
      of the Company which were made known to him by the Company, its officers or
      employees or affiliates, or learned by him while in the Company’s employ,
      without the prior written consent of the Company, and that upon termination
      of
      his employment for any reason, he will promptly return to the Company any and
      all properties, records, figures, calculations, letters, papers, drawings,
      schematics or copies thereof or other confidential information of the Company
      and its affiliates of any type or description. It is understood that the term
      “trade secrets” as used in this Agreement is deemed to include, without
      limitation, lists of the Company’s and its affiliates’ respective customers,
      information relating to their practices, know-how, processes and inventions,
      and
      any other information of whatever nature which gives the Company or any
      affiliate an opportunity to obtain an advantage over its competitors who do
      not
      have access to such information.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    6.
      Remedy at Law Inadequate.
      The
      Executive acknowledges that any remedy at law for breach of any of the
      restrictive covenants (Sections 4 and 5) contained in this Agreement would
      be
      inadequate and the Company shall be entitled to injunctive relief in the event
      of any such breach.

    

    7.
      Inventions and Improvements.
      With
      respect to any and all inventions (as defined in Section 7(e) below) made
      or conceived by the Executive, whether or not during his hours of employment,
      either solely or jointly with others, during the Period of Employment, without
      additional consideration:

    

    (a)
      The
      Executive shall promptly inform the Company of any such invention.

    

    (b)
      Any
      such invention, whether patentable or not, shall be the property of the Company,
      and the Executive hereby assigns and agrees to assign to the Company all his
      rights to any such invention, and to any United States and/or foreign letters
      patent granted upon any such invention or any application therefor.

    

    (c)
      The
      Executive shall apply, at the Company’s request and expense, for United States
      and/or foreign letters patent either in the Executive’s name or otherwise as the
      Company may desire.

    

    (d)
      The
      Executive shall acknowledge and deliver promptly to the Company, without charge
      to the Company but at its expense, all sketches, drawings, models and figures
      and other information and shall perform such other acts, such as giving
      testimony in support of his inventorship, as may be necessary in the opinion
      of
      the Company to obtain and maintain United States and/or foreign letters patent
      and to vest the entire right and title thereto in the Company.

    

    (e)
      For
      purposes of this Section, the term “invention” shall be deemed to mean any
      discovery, concept or idea (whether patentable or not), including but not
      limited to processes, methods, formulas, techniques, hardware developments
      and
      software developments, as well as improvements thereof or know-how related
      thereto, (i) concerning any present or prospective activities of the
      Company and its affiliates and (ii) (A) which the Executive becomes
      acquainted with as a result of his employment by the Company, (B) which
      results from any work he may do for, or at the request of, the Company or any
      of
      its affiliates, (C) which relate to the Company’s or any affiliates’
business or actual or demonstrably anticipated research and development, or
      (D) which are developed in any part by use of the Company’s or any such
      affiliates’ equipment, supplies, facilities or trade secrets.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    The
      parties hereto agree that the covenants and agreements contained in this
      Section 7 are, taken as a whole, reasonable in their scope and duration,
      and no party shall raise any issue of the reasonableness of the scope or
      duration of any such covenants in any proceeding to enforce any such
      covenants.

    

    8.
      Termination of Employment.

    

    (a)
      The
      Executive’s Period of Employment may not be terminated except in accordance with
      the provisions of this Section 8.

    

    (b)
      The
      Executive’s Period of Employment may be terminated by the Company with or
      without Cause or by the Executive with or without Good Reason (as defined in
      subsection (e)). For purposes of this Agreement, “Cause” means that termination
      occurs in connection with a determination, made at a meeting of the Board of
      Directors at which the Executive (and, at the Executive’s option, his counsel)
      shall have had a right to participate, that the Executive has (i) committed
      an act of gross negligence or willful misconduct, or a gross dereliction of
      duty, that has materially and adversely affected the overall performance of
      his
      duties hereunder; (ii) committed fraud upon the Company in his capacity as
      an employee hereunder; (iii) been convicted of, or pled guilty (or nolo
      contendere) to, a felony that the Board of Directors, acting in good faith,
      determines is or would reasonably be expected to have a material adverse effect
      upon the business, operations, reputation, integrity, financial condition or
      prospects of the Company; (iv) any material breach by the Executive of the
      terms hereof; (v) failure to follow instructions from a person authorized
      to give them pursuant to Section 1(d) above that is lawful and not
      inconsistent with the terms hereof; (vi) the Executive’s habitual
      drunkenness or habitual substance abuse; (vii) civil or criminal violation
      of any state or federal government statute or regulation, or of any state or
      federal law relating to the workplace environment (including without limitation
      laws relating to sexual harassment or age, sex or other prohibited
      discrimination), or any violation of any Company policy adopted in respect
      of
      any of the foregoing; or (viii) a failure by the Executive to meet the
      minimum objectives established in the annual “Memry Sharing Plan” to receive any
      bonus pursuant to Section 3(b) above with respect to two consecutive fiscal
      years. A termination for Cause must be accompanied by a written notice to that
      effect. If the Executive’s employment is terminated by the Company for Cause or
      by the Executive without Good Reason, the Executive shall be paid his base
      salary through the date of his termination and any unreimbursed business
      expenses in accordance with Section 3(e) hereof (the “Accrued
      Obligations”).

    

    (c)
      If
      the Executive dies, the Period of Employment shall terminate effective at the
      time of his death;
      provided,
      however,
      that
      such termination shall not result in the loss of any benefit or rights which
      the
      Executive may have accrued through the date of his death. If
      the
      Period of Employment is terminated due to the Executive’s death, the Company
      shall make a severance payment to the Executive’s legal representatives equal to
      the Executive’s regular base salary payments through the end of the month in
      which such death occurs and any Accrued Obligations. In
      addition, the Company shall make a severance payment to the Executive’s legal
      representatives equal to the Executive’s target bonus described in
      Section 3(b), pro rated for the portion of such fiscal year completed prior
      to the Executive’s death; provided,
      however,
      that
      such pro rated portion of the Executive’s target bonus shall be paid to the
      Executive’s legal representatives following the completion of such fiscal year
      at the time similar bonuses are paid to other employees of the
      Company.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (d)
      If
      the Executive becomes disabled, the Period of Employment may be terminated,
      at
      the Company’s option, at the end of the calendar month during which his
      disability is determined; provided, however, that such termination shall not
      result in the loss of any benefits or rights which the Executive may have
      accrued through the date of his disability. If
      the
      Period of Employment is terminated on or after January 1, 2008 due to the
      Executive’s disability, the Company shall make a lump-sum payment to the
      Executive or his legal representative within thirty (30) days following the
      date
      of termination equal to fifty percent (50%) of the annual base salary at the
      rate of salary in effect immediately prior to the effective date of such
      termination. If the Period of Employment is terminated on or before December
      31,
      2007 due to the Executive’s disability, the Company shall make a payment to the
      Executive or his legal representative equal to the Executive’s regular salary
      payments for a period of six (6) months from the date of such termination or,
      if
      sooner, until payments begin under any disability insurance policy maintained
      by
      the Company for the benefit of the Executive. For
      the
      purposes of this section, the definition of “disability” shall be the same as
      the definition of a “permanent disability” contained in any long-term disability
      insurance policy maintained by the Company in effect at the time of the
      purported disability, or last in effect, if no policy is then in
      effect.

    

    (e)
      If
      the
      Executive’s Period of Employment is terminated by the Executive for “Good
      Reason,” as hereinafter defined, or is terminated by the Company (other than
      pursuant to Section 8(d)) without Cause (and the Company may terminate the
      Period of Employment without Cause at any time), then, in addition to the other
      rights to which the Executive is entitled upon a termination as provided for
      herein, the Executive shall also be entitled to (1) a lump-sum payment within
      thirty (30) days following the date of termination equal to the sum of (A)
      100%
      of the Executive’s annual base salary, at the rate of salary in effect
      immediately prior to the effective date of such termination (without regard
      to
      any purported or attempted reduction of such rate by the Company), plus (B)
      100%
      of the Executive’s bonus otherwise payable for the fiscal year during which
      termination occurs based on the rate of salary in effect immediately prior
      to
      the effective date of such termination (without regard to any purported or
      attempted reduction of such rate by the Company) and (2) continued participation
      in the Company’s health plan as an active employee (based on the elections in
      effect on the date of termination) as in effect from time to time for the twelve
      (12)-month period immediately following the Executive’s termination of
      employment (provided that the Company may satisfy this obligation by paying
      the
      Executive’s COBRA continuation premiums during this period if the Executive is
      not eligible to participate in the Company’s health plan as an active
      employee).
      For
      purposes of this Agreement, the term “Good Reason” shall mean: (i) the failure
      by the Company to materially observe or comply with any of the material
      provisions of this Agreement; or (ii) at the election of the Executive, if,
      during the two (2)-year period following a Change in Control (as defined in
      Section 10(f)), there is a material diminution in the authority (which shall
      include a diminution of the Executive’s position), duties and/or
      responsibilities of the Executive. Notwithstanding the foregoing, a termination
      of employment by the Executive for Good Reason shall not occur unless (1) the
      Executive provides written notice to the Company of the existence of the
      condition described in clause (i) or (ii) and a thirty (30)-day opportunity
      to
      cure, (2) the Executive provides notice of the condition constituting Good
      Reason within ninety (90) days following the initial occurrence of the condition
      described in clause (i) or (ii) above, and (3) the Executive’s termination of
      employment occurs within two (2) years following the initial occurrence the
      condition described in clause (i) or (ii) above.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (f) The
      Period of Employment may be terminated by the Executive without Good Reason
      at
      any time by providing thirty (30) days’ prior written notice to the Company. In
      the event of termination of the Executive pursuant to this Section 8(f), the
      Board may elect to waive the period of notice, or any portion thereof, and,
      if
      the Board so elects, the Company will pay the Executive his base salary for
      the
      notice period (or for any remaining portion of the period).

     

    9.
      Effect of Termination.
      Upon
      termination of the Executive’s employment for any reason whatsoever, all rights
      and obligations of the parties under this Agreement shall cease, except that
      the
      Executive shall continue to be bound by the covenants set forth in Sections
      4,
      5, 6 and 7 hereof, and the Company shall be bound to pay to the Executive
      accrued compensation, including salary and other benefits, to the date of
      termination and any severance payments which may be owed under the provisions
      of
      Section 8 hereof. 

    

    10.
      Miscellaneous.

    

    (a)
      This
      Agreement may not be assigned by the Executive. The Company may assign this
      Agreement in connection with a Change in Control the Company.

    

    (b)
      In
      the event that any provision of this Agreement is found by a court of competent
      jurisdiction to be invalid or unenforceable, such provision shall be, and shall
      be deemed to be, modified so as to become valid and enforceable, and the
      remaining provisions of this Agreement shall not be affected.

    

    (c)
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Connecticut.

    

    (d)
      No
      modification of this Agreement shall be effective unless in a writing executed
      by both parties.

    

    (e)
      This
      Agreement constitutes the entire agreement of the parties with respect to the
      subject matter hereof, and supercedes all prior agreements, representations
      and
      promises by either party or between the parties, including without limitation,
      the Offer Letter and the Prior Employment Agreement.

    

    (f)
      For
      purposes of this Agreement, “Change in Control of the Company” shall mean:
      (i) any merger or consolidation or other corporate reorganization of the
      Company in which the Company is not the surviving entity; or (ii) any sale
      of all or substantially all of the Company’s assets, in either a single
      transaction or a series of transactions; or (iii) a liquidation of all or
      substantially all of the Company’s assets; or (iv) a change within one
      twelve-month period of a majority of the directors constituting the Company’s
      Board of Directors at the beginning of such twelve-month period; or (v) if
      a single person or entity, or a related group of persons or entities, at any
      time acquires beneficial ownership (within the meaning of Rule 13d-3 promulgated
      under the Securities Exchange Act of 1934, as amended) of 25% or more of the
      Company’s outstanding voting securities; unless, (x) with respect to any
      event described in clauses (i) through (v), the Executive agrees in
      writing, prior to the consummation of the event giving rise to the Change in
      Control of the Company, that such event or events does not for purposes of
      this
      Agreement constitute a Change in Control of the Company, or (y) with
      respect to clause (iv), the change of directors is approved by the Board of
      Directors as constituted prior to such change.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    (g)
      Section 409A. Payments in the event of a Termination of Employment,
      Disability, Change in Control or Otherwise.

    

    (1)
      Notwithstanding anything to the contrary contained herein, in the event that
      the
      Executive constitutes a “specified employee” (within the meaning of
      Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”))
      and becomes entitled to one or more payments hereunder on account of termination
      of employment, to the extent such payments would otherwise be subject to the
      excise tax under Code Section 409A and are payable within the first six
      (6) months following a termination of employment, such payments shall
      instead be made on the first day of the seventh month following such termination
      of employment and any remaining payments shall be paid according to the schedule
      otherwise applicable to the payments. For purposes of clarification, this
      provision shall apply to any severance payable to the Executive pursuant to
      Section 8(d) with respect to a termination of employment pursuant to Section
      8(d) on or before December 31, 2007.

    

    (2)
      The
      parties hereto intend that this Agreement shall be in compliance with Code
      Section 409A and this Agreement shall be interpreted consistent therewith.
      Notwithstanding the foregoing, the Company shall not be liable for any taxes,
      penalties, interest or other costs that may arise under Section 409A or
      otherwise.”

    

    (3)
      For
      purpose of clarification, the parties intend that the severance payable to
      the
      Executive pursuant to Sections 8(d) and (e) with respect to a termination of
      employment on or after January 1, 2008 qualifies as a “short term” deferral
      pursuant to Treasury Regulation Section 1.409A-1(b)(4).

    

    Signature
      page follows.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date
      first above written.

     

    
      	 	
              MEMRY
                CORPORATION

            
	 	 

    

    
      	 	
              By:

            	
              /s/
                Robert P. Belcher

            	 
	 	 	
                          Robert
                P. Belcher

            	 
	 	 	
                          Chief
                Executive Officer

            	 
	 	 	 	 
	 	 	
              /s/
                Dean Tulumaris

            	 
	 	 	
                          Dean
                Tulumaris

            	 

    

     

    
      
        
        

      

      
        9

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