Document:

Unassociated Document

 

1993 STOCK COMPENSATION PLAN OF ELECTRO ENERGY, INC.

SECTION 1. Introduction.

 

1.1 Purposes. The purposes of the Electro Energy, Inc. Stock Compensation Plan (the "Plan") are to (i) enhance the growth in value of the Corporation and its Subsidiaries by providing a stock and financial incentive to certain executive level employees, consultants and directors who are capable of having a significant impact on the performance of the Corporation and its Subsidiaries; and (ii) attract, motivate and retain such key employees who are critical to the long term success of the business.

 

1.2 Definitions. The following definitions are applicable to the Plan:

 

"Award" means the grant of any Option by the Committee to a Participant.

 

"Beneficiary" means the beneficiary or beneficiaries designated in accordance with Section 4.10 to receive the amount, if any, payable under the Plan upon the death of a Participant. 

 

"Board of Directors" means the Board of Directors of the corporation.

 

"Code" means the Internal Revenue Code of 1986 as amended or renumbered from time to time.

 

"Committee" means the Compensation Committee of the Board of Directors; provided, however, no member of the Committee shall be a Participant in the Plan.

 

	 
	 	 	 
	

	 

 

"Common Shares" means the common stock ($0 par value) of the Corporation.

 

"Corporation" means Electro Energy, Inc. and any Subsidiary which is designated by the Board of Directors as eligible to have its employees participate in the plan.

 

"Disability" means any physical or mental condition that, in the opinion of the Committee, renders any employee incapable of engaging in any employment or occupation for which he or she is suited by reason of education or training for a period of six months or greater.

 

"Fair Market Value" means the fair market value of a share of common stock of the Corporation as determined in accordance with Proposed Regulation 1.421-7 and Regulation 20.2031-2, if the common stock of the Corporation is not publicly traded. This value is determined as of December 31 of each year by the Board of Directors. If the common stock of the Corporation is listed on a national securities exchange, is quoted in the National Market List of NASDAQ, or is otherwise traded then the Fair Market Value will be the average closing price of those shares over the ten trading days prior to any termination.

 

"Incentive Stock Option" means an option to purchase Common Shares that qualifies as an incentive stock option within the meaning of Section 422 of the Code.

	 
	 	 2	 
	

	 

 

"Key Employee" means any employee of the Corporation, including officers and directors who are also employees and consultants and advisors, who, in the judgment of the Committee, is considered important to the future of the Corporation.

 

"Nonqualified Stock Option" means an option to purchase Common Shares that does not qualify as an incentive Stock Option.

 

"Option" means an incentive Stock Option or a Nonqualified Stock Option.

 

"Participant" means a Key Employee of the corporation who is selected to participate in the Plan in the manner described in Section 1.4.

 

"Subsidiary" means any subsidiary or affiliate of the Corporation as defined in Section 424(f) of the code,

 

1.3 Administration. The Plan shall be administered by the Committee, except as otherwise provided herein. In no event shall a member of the Committee be eligible for an Award under the Plan. A majority of the members of the Committee shall constitute a quorum. The Committee may act at a meeting, including a telephone meeting, by action of a majority of the members present, or without a meeting by unanimous written consent. The Committee shall have the authority to select Participants, grant Options, establish from time to time guidelines or regulations for the administration of the Plan, interpret the plan, cause appropriate records to be established,

	 
	 	3 	 
	

	 

 

and make all determinations and take all other actions considered necessary or advisable for the administration of the Plan. 

 

All decisions, actions or interpretations of the Committee that are within the scope of this Section 1.3 shall be final, binding and conclusive upon all parties.

 

1.4 Participation. Participants in the Plan shall be limited to those Key Employees who have received written notification from the committee, or from a person designated by the Committee, that they have been selected to participate in the Plan. No employee shall at any time have the automatic right to be selected as a Participant. No Participant, having been granted an Award, shall have the automatic right to be granted an additional Award in the future.

 

1.5 Maximum number of Common Shares Available for Awards. Notwithstanding any other provision of the Plan, the aggregate maximum number of Common Shares that may be distributed to Participants during the term of the Plan shall be 350 Common Shares. In the event any Option granted under the plan shall terminate or expire, the number of Common Shares no longer subject to such Option, shall thereupon be released and shall thereafter be available for new Awards under the Plan. The Common Shares distributed under the Plan may be authorized and unissued shares, shares held in the treasury of the Corporation, or shares purchased on the open market by the Corporation (at such time or times and in such manner as it may determine). The

	 
	 	4 	 
	

	 

 

Corporation shall be under no obligation to acquire Common Shares for distribution to Participants before payment in Common Shares is due.

SECTION 2. Stock Options

 

2.1   Awards of Options. The maximum number of options to be granted under the Plan shall be 350; provided, however, that the aggregate Fair Market Value (determined at the time the Option is granted) of the Common Shares with respect to which the Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all incentive stock option plans of the Corporation and its Subsidiaries) shall not exceed one hundred thousand dollars ($100,000).

 

2.2   Terms and Conditions of Options. Each Option granted under the Plan shall be evidenced by an agreement, in a form approved by the Committee. Such agreement shall be subject to the following express terms and conditions and to such other terms and conditions as the Committee may deem appropriate:

 

   (A) Option Period. Each Option agreement shall specify the period for which the Option thereunder is granted (which in no event shall exceed ten (10) years from the date of grant) and shall provide that the Option shall expire at the end of such period. With respect to Incentive Stock Options, in no case shall such period, including any such extensions, exceed (i) ten (10) years from the date of grant, or (ii) in the case of

	 
	 	 5	 
	

	 

 

Incentive Stock Options granted to a Participant who, at the time the Incentive Stock Option is granted, owns shares possessing more than ten (10) percent of the total combined voting power of all classes of shares of his or her employer corporation or of its parent or subsidiary corporation (a "Ten Percent Shareholder"), five (5) years from the date of grant.

 

   (B) Purchase Price. The purchase price per Common Share shall be determined by the Committee at the time any Option is granted, and shall be not less than (i) the Fair Market Value, or (ii) in the case of Incentive stock Options granted to a Ten Percent shareholder (as defined in Section 422 (b) of the Code), 110 percent of the fair market value (but in no event less than the par value) of a Common Share on the date the Incentive Stock Option is granted as determined by the Committee.

 

   (C) Exercise of option. Except as otherwise provided under the Plan, no part of any Option may be exercised until the Participant shall have remained in the employ of the Corporation for such period after the date on which the option is granted as the Committee may specify in the option agreement or otherwise and the Option agreement may provide for exercisability in installments.

 

   (D) Payment of Purchase Price upon Exercise. Each Option shall provide that the purchase price of the Common Shares shall be paid to the Corporation at the time of exercise either in cash or in such other consideration as the Committee

	 
	 	6 	 
	

	 

 

deems appropriate, including, but not limited to, Common Shares already owned by the Participant having a total Fair Market Value, as determined by the Committee, equal to the purchase price, or a combination of cash and Common Shares having a total Fair Market Value, as so determined, equal to the purchase price. The Committee in its sole discretion may also provide that the purchase price may be paid by delivering a properly executed exercise notice in a form approved by the Committee together with irrevocable instructions to a broker to promptly deliver to the Corporation the amount of applicable sale or loan proceeds to pay the purchase price.

 

   (E) Vesting Upon Termination of Employment. In the event that a Participant's employment terminates for any reason including his or her death or disability, any Options held by such Participant shall vest according to the terms of his or her Option Agreement,

 

   (F) Transferability of Options. No Option granted under the Plan shall be transferable other than by will or by the laws of descent and distribution. During the lifetime of the Participant, an Option shall be exercisable only by him or her.

 

   (G) Investment Representation. Each option agreement may provide that, upon demand by the committee for such a representation, the Participant (or any person acting under Paragraph E of this Section 2.2) shall deliver to the committee,

	 
	 	 7	 
	

	 

 

at the time of any exercise of an Option or portion thereof, a written representation that the shares to be acquired upon such exercise are to be acquired for investment and not for resale or with a view to the distribution thereof. Upon such demand, delivery of such representation prior to the delivery of any Common Shares issued upon exercise of an Option and prior to the expiration of the Option period shall be a condition precedent to the right of the Participant or such other person to purchase any Common Shares. In the event certificates for Common shares are delivered under the Plan with respect to which such an investment representation has been obtained, the Committee may cause a legend or legends to be placed on such certificates to make appropriate reference to such representations and to restrict transfer in the absence of compliance with applicable federal or state securities laws.

 

   (H) Participants to Have no Rights as Shareholders. No Participant shall have any rights as a shareholder with respect to any Common Shares subject to his or her Option prior to the date of issuance to him or her of such Common Shares.

SECTION 3. General Provisions

 

3.1 Certain Adjustments to Plan Shares. In the event of any change in the Common Shares by reason of any stock dividend, recapitalization, reorganization, merger,

 

	 
	 	8 	 
	

	 

 

consolidation, split-up, combination or exchange of shares, or any rights offering to purchase Common Shares at a price substantially below fair market value, or of any similar change affecting the Common Shares, the number and kind of shares available for Awards under the Plan, and the number and kind of shares subject to Restrictions or subject to Options in outstanding Option agreements and the purchase price per share thereof shall be appropriately adjusted consistent with such change in such manner as the Committee may deem equitable to prevent substantial dilution or enlargement of the rights granted to, or available for, the Participants hereunder. Any adjustment of an Incentive Stock Option pursuant to this Section shall be made only to the extent not constituting a "modification" within the meaning of section 424(h)(3) of the Code, unless the holder of such Option shall agree otherwise. The Committee shall give notice to each participant of any adjustment made pursuant to this Section and, upon notice, such adjustment shall be effective and binding for all purposes of the Plan.

 

3.2 Successor corporation. The obligations of the Corporation under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Corporation, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Corporation. The Corporation agrees that it will make appropriate provision

	 
	 	 9	 
	

	 

 

for the preservation of Participants' rights under the Plan in any agreement or plan which it may enter into or adopt to effect any such merger, consolidation, reorganization or transfer of assets.

 

3.3 General Creditor Status. Participants shall have no right, title, or interest whatsoever in or to any investments which the Corporation may make to aid it in meeting its obliga­tions under the Plan. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Corporation and any Participant, Beneficiary, legal representative or any other person. To the extent that any person acquires a right to receive payments from the Corporation under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Corporation. All payments to be made hereunder shall be paid from the general funds of the Corporation and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in the Plan. In its sole discretion, the Compensation Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Common Shares or pay cash; provided, however, that, unless the committee otherwise determines with the consent of the affected Participant, the existence of such trusts or other

	 
	 	 10	 
	

	 

 

arrangements shall be consistent with the "unfunded" status of the Flan.

 

3.4 No claim or Right Under the Plan. Neither the Plan nor any action taken thereunder shall be construed as giving any employee any right to be retained in the employ of the Corporation.

 

3.5 Awards Not Treated as compensation Under Benefit Plans. No Award shall be considered as compensation under any employee benefit plan of the Corporation, except as specifically provided in any such plan or as otherwise determined by the Board of Directors.

 

3.6 Listing and Qualification of Common Shares. The Corporation, in its discretion, may postpone the issuance or delivery of Common Shares upon any exercise of an Option until completion of such stock exchange listing or other qualification of such shares under any state or federal law, rule or regulation as the Corporation may consider appropriate, and may require any Participant, Beneficiary or legal representative to make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of the shares in compliance with applicable laws, rules and regulations. If the Common Shares have not been registered under the Securities Act of 1933, they will be issued pursuant to the applicable shareholder agreement between the Corporation and the shareholder.

 

	 
	 	 11	 
	

	 

 

3.7 Taxes. The Corporation may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of all federal, state and local taxes required by law to be withheld with respect to Awards granted pursuant to the plan including, but not limited to (i) deducting the amount required to be withheld from any other amount then or thereafter payable to a Participant, Beneficiary or legal representative, and (ii) requiring a Participant, Beneficiary or legal represen­tative to pay to the Corporation the amount required to be with­held as a condition of releasing Common Shares. In addition, subject to such rules and regulations as the committee shall from time to time establish, Participants shall be permitted to satisfy federal, state and local taxes, if any, imposed upon the payment of Awards in Common Shares at a rate up to such Partici­pant's maximum marginal tax rate with respect to each such tax by (i) irrevocably electing to have the Corporation deduct from the number of Common Shares otherwise deliverable in payment of an Award such number of Common Shares as shall have a value equal to the amount of tax to be withheld, (ii) delivering to the Corporation such portion of the Common Shares delivered in payment of the Award as shall have a value equal to the amount of tax to be withheld, or (iii) delivering to the Corporation such number of Common Shares or combination of Common Shares and cash as shall have a value equal to the amount of tax to be withheld.

	 
	 	 12	 
	

	 

 

3.8 Designation and Change of Beneficiary. Each Participant shall file with the Committee a written designation of one or more persons as the Beneficiary who shall be entitled to receive the amount, if any, payable under the Plan upon his or her death. A Participant may, from time to time, revoke or change his or her Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant's death, and in no event shall it be effective as of a date prior to such receipt.

 

3.9 Payments to Persons Other Than Participant. If the Committee shall find that any person to whom any amount is payable under the Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative), may, if the Committee so directs the Corporation, be paid to his or her spouse, a child, a relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Corporation therefor.

	 
	 	13 	 
	

	 

 

3.10 No Liability of Committee Members. No member of the Committee shall be personally liable by reason of any contract or other instrument executed by such member or on his or her behalf in his or her capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Corporation shall indemnify and hold harmless each employee, officer or director of the Corporation to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Board of Directors) arising out of any act or omission to act in connection with the Plan unless arising out of such person's own fraud or bad faith. The indemnification provided for in this section shall be in addition to any rights of indemnification such Committee member has as a director or officer pursuant to law, under the Certificate of Incorporation or By-Laws of the Corporation.

 

3.11 Amendment or Termination. Except as to matters that In the opinion of the Corporation's legal counsel require shareholder approval, any provision of the Plan may be modified as to a participant by an individual agreement approved by the Board of Directors. The Board of Directors may, with prospective or retroactive effect, amend, suspend or terminate the Plan or any portion thereof at any time; provided,  however, that (i) no amendment that would materially increase the cost of the Plan to

	 
	 	 14	 
	

	 

 

the Corporation may be made by the Board of Directors without the approval of the shareholders of the Corporation and (ii) no amendment, suspension or termination of the Plan shall deprive any Participant of any rights to Awards previously made under the Plan without his or her written consent. Subject to earlier termination pursuant to the provisions of this Section, and unless the shareholders of the corporation shall have approved an extension of the Plan beyond such date, no further Awards shall be made under the Plan after the expiration of ten years from the effective date of the Plan specified in Section 4.15.

 

3.12 Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of New York, without reference to the principles of conflicts of law thereof.

 

3.14 Effective Date. The Plan is effective as of January l, 1993 subject to approval by the holders of a majority of the Common Shares outstanding and entitled to vote at the annual meeting of the Company's shareholders in 1993. Notwithstanding the foregoing, if the Plan has been approved by the Board prior to such shareholder approval, Awards may be made by the Committee as provided herein subject to such subsequent shareholder approval. In the event that such shareholder approval is not obtained, any such Awards shall be cancelled and all rights of Participants with respect to such Awards shall thereupon cease.

	 
	 	 15Exhibit 10.2

 

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement ("Agreement") is made and effective this December 31, 2003, by and between Electro Energy, Inc. ("Company") and Michael D. Eskra ("Executive").

NOW THEREFORE, the parties hereto agree as follows:

1. Employment.

Company hereby agrees to initially employ Executive as its President and COO and Executive hereby accepts such employment in accordance with the terms of this Agreement and the terms of employment applicable to regular employees of Company. In the event of any conflict or ambiguity between the terms of this Agreement and terms of employment applicable to regular employees, the terms of this Agreement shall control. Election or appointment of Executive to another office or position, regardless of whether such office or position is inferior to Executive's initial office or position, shall not be a breach of this Agreement.

2. Duties of Executive.

The duties of Executive shall include the performance of all of the duties typical of the office held by Executive as described in the bylaws of the Company, and on behalf of Company Affiliates and subsidiaries, and such other duties and projects as may be assigned by a superior officer of the Company, if any, or the board of directors of the Company. Executive shall devote his entire productive time, ability, and attention to the business of the Company and shall perform all duties in a professional, ethical, and businesslike manner. Executive will not, during the term of this Agreement, directly or indirectly engage in any other business, either as an employee, employer, consultant, principal, officer, director, advisor, or in any other capacity, either with or without compensation, without the prior written consent of Company. In addition to the duties described herein, the Company will use its best efforts to have Executive elected to the Company Board of Directors and Executive shall use his best efforts to perform such duties as normally expected of Directors.

3. Compensation.

Executive will be paid compensation during this Agreement as follows:

A. A base salary of $235,000 per year, payable in installments according to the Company's regular payroll schedule. The base salary shall be adjusted at the end of each year of employment at the discretion of the board of directors.

B. Executive, as additional inducement to grow the business and further commercialize the technologies at Electro Energy, Inc., will be granted a Stock Option as provided to other key employees under the Electro Energy, Inc. Stock Option Plan of an additional 200,000 shares at a Strike Price of $2.00.

	 
	 	 1	 
	

	 

4. Benefits.

A. Holidays. Executive will be entitled to paid holidays each calendar year and personal days as provided in the Company Benefit Plan. Company will notify Executive on or about the beginning of each calendar year with respect to the holiday schedule for the coming year. Personal holidays, if any, will be scheduled in advance subject to requirements of Company. Such holidays must be taken during the calendar year and cannot be carried forward into the next year. Executive is not entitled to any personal holidays during the first six months of employment.

B. Vacation. Following the first six months of employment, Executive shall be entitled to Fifteen (15) paid vacation days each year.

C. Sick Leave. Executive shall be entitled to sick leave and emergency leave according to the regular policies and procedures of Company. Additional sick leave or emergency leave over and above paid leave provided by the Company, if any, shall be unpaid and shall be granted at the discretion of the board of directors.

D. Medical and Group Life Insurance. Company agrees to include Executive in the group medical and hospital plan of Company and provide group life insurance for Executive under the Company's Benefit Plan. Executive shall be responsible for payment of any federal or state income tax imposed upon these benefits.

E. Pension and Profit Sharing Plans. Executive shall be entitled to participate in any pension or profit sharing plan or other type of plan adopted by Company for the benefit of its officers and/or regular employees.

F. Expense Reimbursement. Executive shall be entitled to reimbursement for all reasonable expenses, including travel and entertainment, incurred by Executive in the performance of Executive's duties. Executive will maintain records and written receipts as required by the Company policy and reasonably requested by the board of directors to substantiate such expenses. Executive will submit expenses no more often than weekly nor pool expenses longer than monthly.

5. Term and Termination.

A. The Initial Term of this Agreement shall commence on January 1, 2004 and it shall continue in effect for a period of Two (2) year. Thereafter, the Agreement shall be renewed upon the mutual agreement of Executive and Company. This Agreement and Executive's employment may be terminated at Company's discretion during the Initial Term, provided that Company shall pay the Executive through the day of termination and a sum equal to one year additional salary. In the event of such termination, Executive shall be entitled to any incentive salary payment or any other compensation then in effect, prorated or otherwise. 

B. This Agreement may be terminated by Executive at Executive's discretion by providing at least thirty (30) days prior written notice to Company. In the event of termination by Executive pursuant to this subsection, Company may immediately relieve Executive of all duties and immediately terminate this Agreement, provided that Company shall pay Executive at the then applicable base salary rate to the termination date specified in Executive's original termination notice. 

	 
	 	2 	 
	

	 

C. In the event that Executive is in breach of any material obligation owed Company in this Agreement, habitually neglects the duties to be performed under this Agreement, engages in any conduct which is dishonest, damages the reputation or standing of the Company, or is convicted of any criminal act or engages in any act of moral turpitude, then Company may terminate this Agreement upon five (5) days notice to Executive. In event of termination of the agreement pursuant to this subsection, Executive shall be paid only at the then applicable base salary rate up to and including the date of termination. Executive shall not be paid any incentive salary payments or other compensation, prorated or otherwise. 

D. In the event Company is acquired, or is the non-surviving party in a merger, or sells all or substantially all of its assets, this Agreement shall not be terminated and Company agrees to use its best efforts to ensure that the transferee or surviving company is bound by the provisions of this Agreement.

6. Inventions

In consideration of this employment agreement with the Company or affiliated corporation thereof and the unsigned, Executive hereby covenant and agree as follows:

A. To disclose promptly to an officer of the Company, and to no other person not an employee of the Company without the prior written consent of an officer of the Company all inventions, conceptions, ideas, designs, discoveries or improvements, made solely or jointly by the Executive during the period of employment to the Company. In the event that such inventions, conceptions, ideas, designs, discoveries or improvements, relate to any process, machine, composition of matter, article of manufacture or material, within the scope of employment for the Company.

B. To disclose promptly to an officer of the Company, and to no other person without the prior written consent of an officer of the Company, all inventions, conceptions, ideas, designs, discoveries or improvements; made solely or jointly by the Executive within a period of one year after termination of employment to the Company, in the event that such inventions, conceptions, ideas, designs, discoveries or improvements, relate to any process, machine, composition of matter, article of manufacture or material, within the scope of the employment provided to the Company by the Executive.

C. At the request of the Company, but without expense, make applications for patent in the United States or any foreign country for the inventions, conceptions, ideas, designs, discoveries or improvements, identified in paragraphs A and B above, to render such assistance to the Company as it may require in connection with making and prosecuting such applications and obtaining patents thereon, including, without limitation, the signing of all lawful papers and the making of all rightful oaths, and to aid, participate and give testimony, in any legal proceedings relating thereto in the United States or any foreign country. 

	 
	 	3 	 
	

	 

D. To assign to the Company, but without expense, my entire right, title and interest, in and to the inventions, conceptions, ideas, designs, discoveries or improvements, identified in paragraphs A and B above by executing an instrument or instruments in one or both of the two forms which are appended hereto as "Assignments A" and "Assignment B" respectively, as may be applicable.

7. Confidentiality

Without prior written consent of Company, Employee shall not at any time, whether during or after the term of this Agreement, use for Executives benefit or purpose or for the benefit or purposes of any other person, firm, corporation, or other entity, or disclose (except as necessary or required in the performance of services hereunder) in any manner or for any purpose or any third party or entity, any trade secrets or confidential or proprietary information relating the affairs, operations of business of Company or any subsidiary, affiliated or associated company or entity. For the purposes of this Paragraph, all information which has not been published or released by the Company to the general public or which is disclosed or submitted to the Executive rendering services to the Company hereunder shall be deemed trade secrets, confidential and proprietary information unless otherwise indicated in writing by the Company.

8. Notices.

Any notice required by this Agreement or given in connection with it, shall be in writing and shall be given to the appropriate party by personal delivery or by certified mail, postage prepaid, or recognized overnight delivery services;

If to Company:

Electro Energy, Inc.

30 Shelter Rock Road

Danbury, CT 06810

If to Executive: 

Michael D. Eskra

2595 Hwy I

Saukville, WI 53080

9. Final Agreement.

This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both parties. 

10. Governing Law. 

This Agreement shall be construed and enforced in accordance with the laws of the state of Connecticut.

	 
	 	 4	 
	

	 

11. Headings. 

Headings used in this Agreement are provided for convenience only and shall not be used to construe meaning or intent. 

12. No Assignment.

Neither this Agreement nor any or interest in this Agreement may be assigned by Executive without the prior express written approval of Company, which may be withheld by Company at Company's absolute discretion.

13. Severability.

If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included.

14. Arbitration. 

The parties agree that they will use their best efforts to amicably resolve any dispute arising out of or relating to this Agreement. Any controversy, claim, or dispute that cannot be so resolved shall be settled by final binding arbitration in accordance with the rules of the American Arbitration Association and judgment upon the award rendered by the arbitrator or arbitrators may be entered in any court having jurisdiction thereof. Any such arbitration shall be conducted in State of Connecticut, or such other place as may be mutually agreed upon by the parties. Within fifteen (15) days after the commencement of the arbitration, each party shall select one person to act as arbitrator, and the two arbitrators so selected shall select a third arbitrator within ten (10) days of their appointment. Each party shall bear its own costs and expenses and an equal share of the arbitrator's expenses and administrative fees of arbitration.

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

Electro Energy, Inc.

	
By:  /s/ Martin G. Klein
	
 
	
/s/ Michael D. Eskra

	

		

	
Martin G. Klein
	
 
	
Michael D. Eskra

	
Chief Executive Officer
	
 
	
 

	 
	 	5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]