Document:

ex10-4.htm

    
      

        
          

        
Contains
confidential Information not for disclosure.

         

         

        AMENDED
AND RESTATED

        EMPLOYMENT
AGREEMENT

        BETWEEN

        DAIS
ANALYTIC CORPORATION

        AND

        PATRICIA
K. TANGREDI

        

        This
Agreement is between Dais
Analytic Corporation (hereinafter referred to as “Company”), a New York
corporation, having its principal place of business at 11552 Prosperous Drive,
Odessa, Florida 33556 and Patricia K. Tangredi, Trinity, Florida 34655
(hereinafter referred to as “Employee”).

        

        

        WITNESSETH:

         

            WHEREAS, Employee entered
into an employment agreement with Company dated January 1, 2001 (the “2001
Agreement”); and

         

            WHEREAS, the 2001 Agreement
was amended on January 10, 2001 and on November 5, 2003 (“Amendments”);
and

         

            WHEREAS, Company and
Employee desire to amend and restate the 2001 Agreement to incorporate the
provisions of the 2001 Agreement and  its Amendments in one agreement
and to reflect such other changes to the agreement as hereinafter provided;
and

         

            WHEREAS, the Employee and
Company wish to continue Employee’s employment with the Company on the terms and
conditions set forth herein.

         

            NOW THEREFORE, in
consideration of the premises and mutual promises and agreements hereinafter set
forth, it is agreed as follows:

        
 

        ARTICLE
I

        

        
          	
                  1.1

                	
                  Employment.
      The Company hereby employs the Employee and the Employee hereby accepts
      employment upon the terms and conditions hereinafter set
      forth.

                

        

        

        
          	
                  1.2

                	
                  Term.
      Subject to the provisions for termination and extension as
      hereinafter provided, the term (the "Term," which shall include any
      extension of the term of this Agreement as provided in Section 2(b) below)
      of this Agreement shall commence on January 1, 2001  (the
      "Commencement Date") and shall continue until the fourth anniversary
      thereof.

                

        

        
          
             

          

          
            Confidential
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            Contains
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                    1.3

                  	Extension
      of Term. The Term shall automatically be extended on the
      fourth anniversary of the Commencement Date for one (1) year, and on each
      subsequent anniversary of the Commencement Date for an additional one (1)
      year, unless in any such case either Employee or Company delivers, at
      least sixty (60) days before such anniversary of the Commencement Date,
      written notice to the other party of her or its intent not to renew or
      extend the Term.

        

         

        ARTICLE
II

         

        
           

          
            	
                    2.1

                  	Position. During
      the Term of this Agreement the Employee is engaged as a General Council
      and, subject to the direction of the Board of Directors and the Company’s
      officers designated by the Board of Directors, shall perform and discharge
      well and faithfully the duties which may be assigned her from time to time
      by Company in connection with the conduct of its business. This position
      reports to the President of the
Company.

          

        

         

        
          	
                  2.2

                	
                  Place
      of Employment.
      Employee shall be employed at the Company location in Odessa,
      Florida, subject to travel on Company
  business.

                

        

         

        
          	
                  2.3

                	
                  Commitment.
      The Employee’s presence and involvement with the daily and strategic
      issues of the Company is required. The Employee acknowledges this fact,
      and agrees to be available for the needs of the Company in a manner
      consistent with her responsibilities as a member of
      management.

                

        

         

         

        ARTICLE
III

        
 

        
          	
                  3.1

                	
                  Compensation
      and Benefits.  Subject
      to the terms and conditions set forth below, Employee will receive the
      following compensation for her services during the Term of
      employment:

                

        

        

        
          	
                                 
      (a)

                	
                  Salary.
      Employee shall receive a salary of $115,000 per annum payable in thirteen
      (13) equal installments with one installment paid every four
      weeks.  After the completion of a successful Initial Public
      Offering, Employee’s salary shall be increased to $130,000 per annum. Any
      increase of salary beyond that specifically enumerated in this section
      shall be the sole prerogative of the Company and shall be effective with
      the commencement of the first pay period following the date of Company’s
      written notification to Employee of the
  increase.

                

        

         

        
          	
                                 
      (b)

                	Patent
      Award.  Employee shall be eligible for a one-time payment
      of $5,000 for each United States patent (“Patent”) of which Employee is
      the inventor of the intellectual property described in the Patent. The
      aforementioned payment shall be due and payable only if the Patent is
      issued by the United States Patent Office the Patent has been assigned to
      Company by all its inventors, and the Intellectual Property, which is the
      subject of the Patent, is employed by the Company in its product line
      (“Patent Conditions”). The determination as to whether the Employee is an
      inventor shall be made in accordance with the United States Patent Office
      rules pertaining to the definition of inventorship. Any payment due
      hereunder shall be made in the quarter following the date all Patent
      Conditions have been met.

        

        
          
             

          

          
            Confidential
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            Contains
confidential Information not for disclosure.

          

        

         

        
          
          

        

        
          
 

          
            	
                    3.2

                  	
                    Benefits.  Employee
      shall receive the following benefits duing the Term of the
      Agreement:

                  

          

           

        

        
          	
                   
      

                	
                  (a)
      Vacation.
      The Employee is entitled to four (4) weeks of paid vacation in
      2001.  Each year of the Term thereafter, Employee shall be
      entitled to four (4) weeks of vacation per calendar year and will be
      eligible for additional vacation time in accordance with the Company
      vacation plan. In addition, Employee is entitled to up to five (5) paid
      sick days per year. The number of sick days and vacation days accrued and
      available for use by Employee in a given year is calculated pro-rata upon
      the number of days worked that year. Employee may opt to carry accrued and
      unused sick or vacation days accumulated in a given year to the following
      year of the Term provided that no more than a total of five (5) such days,
      regardless of the type of day or when it was accrued, may be carried to
      any such year without the written permission of Company.  For
      the purpose of this section a week shall be defined as 5 business
      days.

                

        

        

        
          	
                   
      

                	
                  (b)
      Medical Benefits.
      Employee is eligible to apply for coverage under the Company’s
      medical plan ninety (90) days after beginning her employment. If Employee
      is found eligible to participate in the medical plan and exercises her
      option to do so, sixty percent (60%) of the monthly premium required to
      provide medical insurance for the Employee shall be paid by the Company
      with the remaining forty percent (40%) of the monthly premium paid monthly
      by the Employee. Employee may opt to insure her eligible dependents under
      the Company medical plan and Company shall pay thirty five (35%) percent
      of the monthly premium relating to the dependents portion of the
      insurance. The remainder of any premium attributable to insuring
      Employee’s dependents shall be paid monthly by Employee. The medical plan
      and Company contributions thereto are subject to change and the parties
      agree the provisions of this section shall be modified when and if
      necessary to reflect any such
changes.

                

        

        

        
          	
                   
      

                	
                  (c) Reimbursement
      of Expenses.  It is
      acknowledged by the parties that Employee, in connection with the services
      to be performed by her pursuant to the terms of this Agreement, will be
      required to make payments for travel, entertainment of business associates
      and similar expenses.   The Company will reimburse Employee
      for all reasonable expenses authorized by the Company and incurred by
      Employee in the performance of her
      duties hereunder.  Employee will comply with such budget
      limitations and approval and reporting requirements with respect to
      expenses as the Company may establish from time to
  time.

                

        

        

        
        

        
          
             

          

          
            Confidential
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            Contains
confidential Information not for disclosure.

          

        

        
          	
                   
      

                	
                  (d)
      Stock
      Options. Regardless of any other provision herein, any grant of
      stock options to Employee, whether made under any existing or future Stock
      Option Plan the Company has or may institute, shall be made at the sole
      discretion of Company. If a grant of stock options to Employee is made it
      may be based upon, but not limited to, Company meeting all performance
      goals set for the year of the grant, the performance evaluation of
      the sector under Employee’s management, and Employee’s individual
      performance evaluation for the year. In determining sector and individual
      performance for a given year Company shall consider, in addition to any
      other criteria it deems relevant, whether Employee has met all management
      goals established for her sector and Employee herself in the year of the
      grant. Any such options shall be granted under the Company's then existing
      stock option plan, shall be immediately exercisable, have a term of ten
      years, shall be exercisable for up to three years after termination of
      employment (unless termination is for Cause, as hereinafter defined, in
      which event they shall expire on the date of termination),  and
      shall be subject to such additional terms and conditions as are then
      applicable to options granted under such plan provided they do not
      conflict with the terms set forth
herein.

                

        

        

        
          	
                   
      

                	
                  (e)
      Other
      Benefits.
      Employee shall be entitled to participate in Employee benefit plans of the
      Company, if any, to the extent her position, tenure, salary, age, health
      and other qualifications make her eligible to participate, subject to the
      all rules and regulations applicable thereto. Employee will receive
      executive designation, if such a designation is made, with regard to
      benefits offered pursuant to health and insurance
  plans.

                

        

        

        

        ARTICLE
IV

        

         

        
          	
                  4.1

                	
                   Termination. The following are the
      bases for termination of Employee's employment with
    Company:

                

        

         

              
(a).  Death of Employee;

         

              
(b).  Employee's Disability (as defined below) with sixty (60) days' prior
written notice of termination;

         

              
(c).  Expiration of the Term of this Agreement or any extension
thereof;

         

              
(d).  Voluntary resignation of Employee without Good Reason (as defined
below);

         

              
(e).  Termination by Employee for Good Reason;

         

              
(f).  Termination by the Company for Cause (defined below);

         

              
(g).  Termination by Employee within six months following a Change in
Control of the Company (as defined below); and

         

              
(h).  Any other termination by Company other than for Cause or
Disability.

         

        Except as
otherwise provided in this Article 4, upon the occurrence of any event described
in (a) through (h) above, Employee's employment shall terminate and the Company
shall have no further obligation to Employee hereunder except to pay to Employee
(or her estate, as the case may be), within 10 days following the date of
termination, her accrued but unpaid salary and bonus, if any, and any accrued
vacation pay, less standard withholdings for tax and social security purposes,
plus any un-reimbursed expenses.

        
          
             

          

          
            Confidential
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            Contains
confidential Information not for disclosure.

          

        

         

        
          	
                  4.2

                	
                  Certain
      Definitions.

                

        

         

        
          
            (a).
"Good Reason" means either (i) a material breach by Company of this Agreement
without curing such breach within fifteen (15) days of written notice from
Employee to Company or  (ii) Company's failure to pay any
compensation due and   owing to  Employee within ten
(10) days after written notice from Employee to Company that such payment is
due.

             

          

        

               
(b). "Cause" means:

         

        (i)
Material breach by Employee of this Agreement, after Employee has been given
written notice of her default and has not cured such material breach within
thirty (30) days of receiving such notice;

        
           

          (ii)
Employee's failure to follow reasonable, lawful orders or directions of the
Board, after Employee has been given written notice of her default and has not
followed such lawful orders or directions of the Board within thirty (30) days
of receiving such notice;

           

          (iii)
Employee's willful misconduct, dishonesty or reckless disregard of her
responsibilities to Company, after Employee has been given written notice of her
default and has not cured such conduct within thirty (30) days
of receiving such notice;

           

          (iv)
Employee's conviction or plea of nolo contendre or the equivalent in respect of
either a felony or a misdemeanor involving moral turpitude but excluding, in any
event, vehicular infractions; or

           

          (v)
Employee's material violation of any written major Company policy previously
communicated to Employee, after Employee has been given written notice of her
default and has not cured such violation within thirty (30) days of receiving
such notice.

           

        

        
          (c).
"Disability" means a physical or mental illness, injury or condition that
prevents Employee from performing her essential duties under this Agreement,
even with reasonable accommodation, for at least ninety (90) consecutive
calendar days or for at least one hundred and twenty (120) calendar days,
whether or not consecutive, in any one hundred and eighty (180) calendar day
period, or is likely to do so, as certified by a physician reasonably and
mutually agreed upon by the Employee and Company.

        

                

                (d).
"Change in Control of the Company" shall be deemed to have occurred if any one
of the following occurs:

        
          
             

          

          
            Confidential
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confidential Information not for disclosure.

          

        

         

                     

          (i) The
acquisition, other than from the Company, by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act")), of  beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 33% or more of either the then outstanding shares of Common Stock or the
combined voting power of the then outstanding
voting securities of the Company having general voting power in electing the
Board of Directors of the Company; or

           

          (ii)
Individuals who, as of the date hereof, constitute the Board of Directors of the
Company (the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board of the Directors; or

           

          (iii)
Approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company or of the sale or other disposition of all or
substantially all of the assets of the Company, or of a reorganization, merger
or consolidation with respect to which the individuals and entities who were the
respective beneficial owners of the outstanding Common Stock  and
voting securities of the Company immediately
prior to such reorganization, merger or consolidation do not, immediately
following such reorganization, merger or consolidation, beneficially own,
directly or indirectly, more than 50% of, respectively, the then outstanding
shares of   Common Stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of
directors of the entity resulting from such  reorganization, merger or
consolidation, as the case may be.

          

        

        
          	
                  4.3

                	
                  Severance Pay and
      Other Benefits Upon Termination In Certain
      Circumstances.

                

        

         

               
(a). Termination By
Company Without Cause or By Employee for Good Reason. In the event
Employee's employment is terminated by the Company without Cause or by the
Employee for Good Reason, the Employee shall be entitled to the
following:

         

        
          (i) Severance
Pay.   The Company shall pay to Employee an amount equal
to the sum of (A) the greater of 100% of the Base Salary then in effect for
Employee or $115,000, which amount shall be payable by the Company in full
within 10 days
following termination.
         

        
          (ii)
Continuation of
Benefits. Company shall provide, at its sole cost, Employee with the
medical benefits set forth in Section 3.2(b) of this Agreement, subject to the
terms and conditions of that Section, for one year following the date of
termination.  Company shall continue to offer such benefits to Employee
beyond such one year period to the extent required by COBRA or any similar
statute which may then be in effect.

           

        

                            
   (iii) Vesting of
Options.  All stock options granted to Employee at any time
during the course of the Term shall be exercisable in full and shall remain
subject to exercise for a period of not less than three years following the date
of termination.

        
          
             

          

          
            Confidential
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            Contains
confidential Information not for disclosure.

          

        

         

        (b).
Death or
Disability.  In the event of termination of employment as a
result of death the provisions of (a) (i) and (a)(iii) of this Section 4.3 shall
also be applicable. In the event of termination of employment as a result of
Disability the provisions of Section 4.3 (a) in its entirety shall
apply.

         

        (c).
Change in Control of
the Company.  In the event that Employee elects to terminate
her employment within six months following a Change in Control of the Company,
she shall receive, within the later of ten days following the date on which the
Change in Control occurs or the date on which she give notice of her election to
terminate employment, a lump sum payment equal to the greater of three times her
then current Base Salary or $235,000.  In addition, the provisions of
(a) (ii), (a) (ii) and (a) (iii) of this Section 4.3 shall also be
applicable

        

        

        ARTICLE
V

         

        
           

          
            	
                    5.1

                  	
                    Confidential
      Information.

                  

          

        

        

        
          	
                                  
       (a)

                	
                  Non-Disclosure
      of Confidential Information. The Employee recognizes and
      acknowledges that the Company’s Confidential Information as defined below,
      as it may exist from time to time, is a valuable, special and unique asset
      of the Company’s business, access to and knowledge of which are essential
      to the performance of the Employees duties hereunder. The Employee will
      not during or after the term of her employment by the Company, in whole or
      in part, directly or indirectly, disclose, publish or make accessible such
      Confidential Information which Employee may now possess, may obtain during
      or after employment or may create prior to the end of her employment, to
      any person, firm, corporation, association or other entity for any reason
      or purpose whatsoever (excluding court orders or subpoenas), nor shall the
      Employee make use of any such property for her own purposes or for the
      benefit of any person, firm, corporation or other entity ( except the
      Company) under any circumstances during or after the term of her
      employment, provided that after the term of her employment these
      restrictions shall not apply to such Confidential Information which is
      then in the public domain (provided that the Employee was not responsible,
      directly or indirectly, for such  Confidential Information
      entering the public domain without the Company’s consent). The Employee
      agrees to hold in trust and confidence, as the Company’s property, all
      Confidential Information, in any way relating to the Company’s business
      and affairs, whether made by her or otherwise coming into her
      possession.

                

        

        

        
          	
                                   
      (b)

                	
                  Definition
      of Confidential Information. For purposes of this Agreement,
      "Confidential Information" means any and all information disclosed or made
      available to the Employee or known to the Employee as a direct or indirect
      consequence of or through her relationship with the Company and not
      generally known in the industry in which the Company is or may become
      engaged including, but not limited to, information relating to trade
      secrets, discoveries, ideas, concepts, know-how, techniques, designs,
      specifications, drawings, diagrams, data, computer programs, business
      activities and operations, budgets, salaries, financial statements,
      prices, costs, and other business information of or relating to Company or
      any subsidiaries of Company that may from time to time
    exist.

                

        

        
          
             

          

          
            Confidential
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            Contains
confidential Information not for disclosure.

          

        

         

        
          	
                                  
      (c)

                	
                  Return
      of Confidential Information upon Termination. Upon the termination
      of Employee's employment for any reason whatsoever, Employee shall deliver
      to Company all tangible materials embodying the Confidential Information,
      including any documentation, records, listings, notes, data, sketches,
      drawings, memoranda, models, accounts, reference materials, samples,
      machine-readable media and equipment which in any way relate to the
      Confidential Information.  Employee shall not retain any copies
      of any of the above materials.

                

        

        

        
           

          
            	
                    5.2

                  	
                    Intellectual
      Property

                  

          

        

        

        
          	
                                 
       (a)

                	
                   Intellectual
      Property. Employee acknowledges that the Company
      possesses and will continue to possess information that has been created,
      discovered, developed, or other wise become known to the Company
      (including, without limitation, information created, discovered,
      developed, or made known by or to the Employee during the period of or
      arising out of the Employee’s relationship with the Company) and/or in
      which property rights have been assigned or other wise conveyed to the
      Company, which information has commercial value in the business in which
      the Company is or may become engaged. All of the aforementioned
      information is hereinafter called “Intellectual Property”. By way of
      illustration, but not limitation, Intellectual Property includes, whether
      or not patentable, trade secrets, processes, developments, ideas,
      structures, formulas, data, know-how, improvements, modification,
      inventions, product concepts, techniques, marketing plans, strategies,
      forecasts, customer lists, information regarding products, designs,
      methods, systems, software programs, copyrightable works, discoveries,
      trademarks, copyrights works of authorship, projects, plans and proposals,
      information about the Company’s Employees and/or consultants (including,
      without limitation, the compensation, job responsibilities and job
      performance of such Employees and/or consultants). For the purpose of this
      Agreement inventions shall include, but not be limited to, discoveries,
      concepts, and ideas, whether patentable or not, including but not limited
      to, devices, processes, methods, formulae, designs, techniques, and any
      improvements or modifications to the
foregoing.

                

        

        

        
          	
                                  
      (b) 

                	
                   Ownership of
      Intellectual Property. All Intellectual
      Property shall be the sole property of the Company and its assigns, and
      the Company and its assigns shall be the sole owner of all patents,
      copyrights and other rights in connection therewith. The Employee hereby
      assigns to the Company or to any person, or entity designated by the
      Company, any and all rights and interest the Employee has or may acquire
      to Intellectual Property made or conceived by the Employee, solely
      or jointly, or in whole or in part, during or before the term hereof (but
      after May 15, 2000). Any Intellectual Property create and/or reduced to
      practice by the Employee within one year following the termination of her
      employment shall be presumed to have been created and/or reduced to
      practice under this Agreement unless proven otherwise. At all times both,
      before and after the term of this Agreement and after its termination,
      Employee agrees to keep in confidence and trust all Intellectual Property
      and anything directly or indirectly relating to it. The Employee will not
      during or after the term of her employment by the Company, in whole or in
      part, disclose, publish or make accessible such Intellectual Property
      which Employee may now possess, may obtain during or after employment or
      may create prior to the end of her employment, to any person, firm,
      corporation, association or other entity for any reason or purpose
      whatsoever, nor shall the Employee make use of any such Intellectual
      Property for her own purposes or for the benefit of any person, firm,
      corporation or other entity (except the Company) under any circumstances
      during or after the term of her
  employment.

                

        

        
          
             

          

          
            Confidential
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            Contains
confidential Information not for disclosure.

          

        

        
        

        

        ARTICLE
VI

         

        
           

          
            	
                    6.1

                  	
                    Disclosure of Intellectual Property. Employee will promptly
      disclose to the Company, or any persons designated by it, all Intellectual
      Property made or conceived or reduced to practice or learned or proposed
      by Employee, either alone or jointly with others, during the period of
      this Agreement which are in any way related to or useful in the actual,
      anticipated or potential businesses of the Company, or the result of tasks
      assigned to the Employee by the Company or resulting from use of premises
      or equipment owned, leased or contracted for by the
    Company.

                  

          

        

        
        

         

         

        
           

          
            	
                    6.2

                  	Assignment of and Assistance with regard to
      Intellectual Property. Employee hereby assigns to the
      Company any rights the Employee may have or acquire in all Intellectual
      Property and agrees that all Intellectual Property shall be the sole
      property of the Company and its assigns, and the Company and its assigns
      shall be the sole owner of all patents, copyrights and other rights in
      connection therewith. Employee further agrees to assist the Company in
      every proper way (but at the Company’s expense) to obtain and from time to
      time enforce patents, copyrights or other rights on said Intellectual
      Property in any and all countries, and to that end Employee will execute
      all documents necessary:

          

        

        
        

         

        
          	
                   
      

                	
                  (a)

                	
                  To
      apply for, obtain and vest in the name of the Company (unless the Company
      otherwise directs) letters patent, copyrights or other analogous
      protection in any country throughout the world and when so obtained or
      vested to renew and restore the same;
and

                

        

        

        
          	
                   
      

                	
                  (b)

                	
                  To
      defend, at the Company’s expense, any opposition proceedings in respect of
      such applications and any opposition proceedings or petitions or
      applications for revocation of such letters patent, copyright or other
      analogous protection.

                

        

        
          
             

          

          
            Confidential
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            Contains
confidential Information not for disclosure.

          

        

         

        
          
            	
                    6.3

                  	Designation of
      Attorney–in-Fact. In the event the Company is unable, after
      reasonable effort, to secure Employee’s signature on any letters patent,
      copyright or other analogous protection relating to Intellectual Property
      because of the Employee’s physical or mental incapacity the Employee
      hereby irrevocably designates and appoints the Company and its duly
      authorized officers and agents as Employee’s agent and attorney-in-fact,
      to act for and in Employee’s behalf and stead to execute and file any such
      application or applications and to do all other lawfully permitted acts to
      further the prosecution and issuance of letters patent, copyright or other
      analogous protection thereon with the same legal force and effect as is
      executed by Employee. For all other reasons of disagreement the parties
      agree to third party arbitration to be paid for equally by both parties.
      Employee’s obligation to assist the Company in obtaining and enforcing
      patents and copyrights for Intellectual Property in any and all countries
      shall continue beyond the termination of this Agreement, but the Company
      shall compensate the Employee at a reasonable and customary rate after
      such termination for time actually spent by the Employee at the Company’s
      request on such assistance.

            	
                    6.4

                  	Work
      for Hire. Employee acknowledges that all original works of
      authorship which are made by her (solely or jointly with others) within
      the scope of this Agreement and which are protectable by copyright are
      being created at the instance of the Company and are “works for hire”, as
      that term is defined in the United States Copyright Act (17 USC Section
      101). If such laws are inapplicable or in the event that such works, or
      any part thereof, are determined by a court of competent jurisdiction not
      to be a work made for hire under the United States copyright laws, this
      Agreement shall operate as an irrevocable right, title and interest
      (including, without limitation all rights in and to the copyrights
      throughout the world, including the right to prepare derivative works and
      the right to all renewals and extensions) in the Works in
      perpetuity.

          

        

        
        

        

        
        

        

        ARTICLE
VII

         

        

        
          	
                  7.1

                	Covenant Not to Compete. In
      recognition of the considerations described herein and the fact that the
      services rendered by the Employee are special and unique, Employee
      covenants and agrees:

        

        
        

        

        
          	
                   
      

                	
                  (a)
      Non-Competition.
      Employee agrees that (i) during the Term of this Agreement and (ii) for a
      period of two (2) years after termination of Employee’s employment with
      the Company for any reason, Employee will not, without the prior written
      consent of Company, directly or indirectly, have an interest in, be
      employed by or be connected with, as an Employee, consultant, officer,
      director, partner, member, stockholder or joint venture, any person or
      entity owning, managing, controlling, operating or otherwise participating
      or assisting in any business that is in competition with Company's
      business nor interfere with, disrupt or attempt to disrupt the
      relationship, contractual or otherwise, between Company and any customer,
      client, supplier,  or consultant of the
      Company.  Notwithstanding the foregoing, Employee's ownership of
      less than five percent (5%) of the issued and outstanding securities of
      any class of a corporation listed on national securities shall not be
      deemed a violation of this Agreement. For the purpose of this section a
      business shall be deemed to be in competition with Company if it directly
      or indirectly provides goods or services related to the manufacture,
      development, improvement or research of Proton Exchange Membranes, Proton
      Exchange Membrane fuel cells, Proton Exchange Membrane fuel cell power
      plants (including gas reformation and any of the individual components
      and/or processes thereof), hydrogen on demand devices and/or hydrogen
      generation device(s) of any sort, polymer membranes used in moisture
      transfer applications  and any other business areas or product
      lines in which Company, any of its subsidiaries or joint ventures is
      currently engaged  or developing or may hereafter
      enter.

                

        

        
          
             

          

          
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                  (b)
      Non-Solicitation.
      Employee agrees that (a) upon termination of Employee’s employment with
      the Company for any reason and (b) for a period of one (1) year
      thereafter, Employee will not solicit or hire any person employed by
      Company at any time during such one (1) year
  period.

                

        

        

        
          	
                   
      

                	
                  (c) Amendment of Non-Compete.
      It is the desire and the intent of the parties that the provisions of
      Article VII shall be enforced to the fullest extent possible under the
      laws and public policies applied in each jurisdiction in which enforcement
      is sought. Accordingly, if any particular portion of Article VII shall be
      adjudicated to be invalid or unenforceable, Article VII shall be deemed
      amended to delete the portion thus adjudicated to be invalid or
      unenforceable, such deletion to apply only with respect to the operation
      of Article VII in the particular jurisdiction in which such adjudication
      is made.

                

        

        

        
          	
                   
      

                	
                  (d)
      Effect
      on other Articles. Nothing in Article VII shall reduce or abrogate
      the Employees obligations during the term of this Agreement under Article
      V and VI hereof.

                

        

        

        ARTICLE
VIII

        

        
          	
                  8.1

                	
                  Injunctive
      Relief. Employee acknowledges that he has substantial knowledge and
      expertise in, and personal relationships affecting, the operations,
      business contacts, trade secrets, customer lists, marketing, business
      strategies and processes and other confidential and proprietary matters of
      critical significance to the conduct of the Company's business and its
      future prospects.  Employee, therefore, agrees and consents
      that, in addition to any other remedies that may be available to Company,
      Company shall be entitled to specific performance by temporary as well as
      permanent injunction to prevent a breach or contemplated breach by
      Employee of any of the covenants or agreements of Article V, Article VI
      and Article VII.

                

        

        

        
          	
                  8.2

                	
                  Non-Contravention.
      Employee represents and warrants that the execution, delivery and
      performance of this Agreement do not and will not contravene, conflict
      with or otherwise
      violate the terms of any written or oral agreement among Employee and one
      or more third parties.

                

        

        
          
             

          

          
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                  8.3

                	
                  Benefit
      and Binding Effect. This Agreement shall be binding upon and inure
      to the benefit of Company and its successors and assigns, including any
      corporation, person or other entity which may acquire all or substantially
      all of the business of Company or any other corporation with or into which
      Company is consolidated or merged, and Employee and her heirs, executors,
      administrators and legal representatives, provided, however, that the
      obligations of Employee hereunder may not be delegated or
      assigned.

                

        

        

        
          	
                  8.4

                	
                  Arbitration.
      Disputes between the parties arising under or with respect to this
      Agreement shall be submitted to arbitration in Hillsborough County,
      Florida by a single arbitrator, mutually acceptable to both parties, under
      the rules of the American Arbitration Association, and the arbitration
      award shall be binding upon the parties and enforceable in any court of
      competent jurisdiction.  The cost of arbitration itself shall be
      borne equally by the Parties. Each party shall be responsible for paying
      its own legal counsel and all other fees or charges associated with
      presenting its case.

                

        

        

        
          	
                  8.5

                	
                  Notices. Any notice required
      or permitted to be given under this Agreement shall be sufficient if made
      in writing and deposited in the United States mail, registered or
      certified, prepaid with return receipt requested, to the Employee at her
      residence listed above and to the Company at its address set forth above,
      Attention: President,
      Dais-Analytic Corporation. Either party may change the address to
      which it desires notices be mailed by providing written notice of the
      address change the above prescribed
manner.

                

        

        

        
          	
                  8.6

                	
                  Waiver.  The
      failure of either party to insist, in any one or more instances, upon
      strict performance of any of the terms or conditions of this Agreement
      shall not be construed as a waiver or a relinquishment of any right
      granted hereunder or of the future performance of any such term, covenant
      or condition, but the obligations of either party with respect thereto
      shall continue in full force and
effect.

                

        

        

        
          	
                  8.7

                	
                  Survival. Except as otherwise
      provided herein, the provisions of Articles V, VI, VII and IX shall
      survive termination of this
Agreement.

                

        

        

        
          	
                  8.8

                	
                  Governing
      Law. This
      Agreement shall be governed by the laws of the State of New York without
      regard to the conflicts of law principals
  thereof.

                

        

        

        
          	
                  8.9

                	
                  Severability.  If
      any provision of this Agreement is determined by a court of competent
      jurisdiction to be invalid or unenforceable, such determination shall not
      affect the validity or enforceability of any other part or provision of
      this Agreement.

                

        

         

        
          	
                  8.10

                	
                  Modifications
      and Amendments. This
      Agreement shall not be modified, altered or amended except by a written
      agreement signed by the parties
hereto.

                

        

        
        

        
          
             

          

          
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                  8.11

                	
                  Entire Agreement. This Agreement
      together with the documents referred to herein or contemplated hereby
      constitute and embody the full and complete understanding and agreement of
      the parties hereto with respect to the subject matter hereof and supersede
      all prior understandings or agreements whether oral or in writing with
      respect to the subject matter
hereof.

                

        
          	
                  8.12

                	
                  Headings;
      Interpretation.  The section headings used herein are for
      convenience and reference only and are not intended to define, limit or
      describe the scope or intent of any provision of this
      Agreement.  When used in this Agreement, the term "including"
      shall mean without limitation by reason of enumeration.  Words
      used herein in the singular shall include the
  plural.

                

        

        

        
          	
                  8.13

                	
                  Counterparts.
      This Agreement may be executed in any number of counterparts, each of
      which shall be deemed a duplicate
original.

                

        

        

         

        ARTICLE
IX

         

         

        
          	
                  9.1

                	
                  Indemnification.
      During the Term of this Agreement, and subsequent thereto with
      respect to any claim arising out of or in connection with her employment
      with the Company or any subsidiary of the Company, the Company shall
      indemnify and hold Employee harmless from all claims and liability, loss
      or damage ( including but not limited to judgments, fines and amounts paid
      in settlement), asserted against Employee or incurred by Employee,
      including reasonable attorneys fees and costs of investigation ( the
      “Indemnification”). The Indemnification provided for herein shall be in
      addition to and not in substitution of any and all rights to
      indemnification that Employee, may be entitled to under the laws of the
      State of New York or the Certificate of Incorporation and By-Laws of the
      Company. To the extent permitted under the laws of the State of New York,
      and the Company’s Certificate of Incorporation and By-Laws, all expenses,
      including reasonable attorney’s fees, incurred by Employee in defending
      any civil, criminal or administrative action or proceeding, shall upon
      request by the Employee, be paid in advance by Company in advance of the
      final disposition of such action, suit or
    proceeding.

                

        

         

        
          	
                  9.2

                	
                  D&O
      Liability Insurance. During the Term, unless the Employee
      otherwise consents, the Company will maintain director’s and officer’s
      insurance in an amount not less than $5,000,000, and Employee shall at all
      times be one of the named insured under such
    coverage

                

        

        

        
        

        

        

        

        

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        IN WITNESS
WHEREOF, the parties have executed this Agreement as of the day and year
first hereinabove written.

        

        

        

        
          
            	 	DAIS
      ANALYTIC CORORATION	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ Robert
      Brown	 
	 	 	Robert
      Brown	 
	 	 	Vice-
      President	 
	 	 	 	 

          

        
          
            	 	EMPLOYEE	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ Patricia
      K. Tangredi	 
	 	 	Patricia
      K. Tangredi	 
	 	 	 	 
	 	 	 	 

          

        

        

         

        

         

        

        
          
            
               

            

            
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              Contains
confidential Information not for disclosure.ex10-5.htm

    
      
        

      

     

     

    
      EMPLOYMENT
AGREEMENT

      

      This
Employment Agreement ("Agreement"), is entered into by and between Dais Analytic
Corporation, located at 11552 Prosperous Drive, Odessa, Florida 33556
("Employer") and William J. Newman, currently residing at 18 Blackburn Road,
Basking Ridge, New Jersey 07920 ("Employee"), to be effective on or before March
31, 2008 (the "Effective Date").

      

       

      W I T N E
S S E T H:

       

       WHEREAS, Employer is desirous of employing
Employee pursuant to the terms and conditions and for the consideration set
forth in this Agreement, and Employee is desirous of entering the employ of
Employer pursuant to such terms and conditions and for such
consideration.

       

       NOW, THEREFORE, for and in consideration of the
mutual promises, covenants, and obligations contained herein, Employer and
Employee agree as follows:

       

      ARTICLE
1: EMPLOYMENT AND DUTIES:

       

      
        	
                1.1.

              	
                Employer
      agrees to employ Employee, and Employee agrees to be employed by Employer
      on the terms and conditions set forth in this
  Agreement.

              

      

       

      
        	
                1.2

              	
                Subject
      to the provisions for termination and extension as hereafter provided, the
      term  (“Term” shall include any extension of the term of this
      Agreement as provided in section 1.3 below) of this Agreement shall
      commence on the Effective Date and shall continue until the first
      anniversary hereof (“Term”).

              

      

       

      
        	
                1.3

              	
                The
      Term of this Agreement shall be automatically extended on the first
      anniversary of the Effective Date for one (1) year and on each subsequent
      anniversary of the Effective Date for an additional one year period,
      unless, in any such case, Employer delivers, at least one (1) month prior
      to such anniversary of the Effective Date, written notice of its intent
      not to renew or extend the Term.

              

      

       

      
        	
                1.4

              	
                Beginning
      as of the Effective Date, Employee shall be employed as Chief Operating
      Officer of Employer. Employee shall report to the President and Chief
      Executive Officer of the Employer. Employee agrees to serve in said
      position or in such capacities as may be requested by the Employer
      consistent with duties, responsibilities, etc. consistent with this title
      within the industry at a similar size, and to perform diligently and to
      the best of  Employee's abilities the duties
      and  services.

              

      

      

      
        	
                1.5.

              	
                Employee
      shall at all times comply with and be subject to such policies and
      procedures as Employer may establish from time to time, for members of the
      Company whether at the executive level or for members of the entire
      Company, including without limitation any Code of Business Conduct (the
      "Code of Business Conduct") the Employer has or may establish from time to
      time.

              

      

      

      
        	
                1.6.

              	
                Employee
      shall, during the period of Employee’s employment by Employer, devote
      Employee's full business time, energy, and best efforts to the business
      and affairs of Employer. Employee may not engage, directly or indirectly,
      in any other business, investment, or activity that interferes with
      Employee’s performance
      of Employee’s duties hereunder, is contrary to the interest of Employer.
      The foregoing notwithstanding,
      the parties recognize and agree that Employee may engage in passive
      personal investments and other business activities which do not conflict
      with the Business and affairs of the Employer or Employer Entities or
      interfere with Employee's performance of his duties
      hereunder.  Employee may not serve on the board of directors of
      any entity other than an Employer Entity during the Term without
      Employer’s written approval thereof.

              

      

      

      
        
          
             

          

          
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                1.7

              	
                Employee
      acknowledges and agrees that Employee owes a fiduciary duty of loyalty,
      fidelity and allegiance to act at all times in the best interests of the
      Employer and all other Employer Entities and to do no act which would,
      directly or indirectly, injure any such entity's business, interests, or
      reputation.  It is agreed that any direct or indirect interest
      in, connection with, or benefit from any outside activities, particularly
      commercial activities, which interest might in any way adversely affect
      Employer or any Employer Entity involves a possible conflict of
      interest.  In keeping with Employee's fiduciary duties to
      Employer, Employee agrees that Employee shall not knowingly become
      involved in a conflict of interest with Employer or the Employer Entities,
      or upon discovery thereof, allow such a conflict to continue. Moreover,
      Employee shall not engage in any activity which might involve a possible
      conflict of interest without first obtaining written approval of
      Employer.

              

      

       

      
        	
                1.8

              	
                The
      parties understand and agree that Employee will be employed during the
      Term of this Agreement at Employer’s principal offices which are currently
      located in Odessa, Florida. However, to the extent business needs do not
      require his physical presence at Employer’s principal office he will work
      from a suitable location which both  parties will agree to on
      its suitability prior to use. This notwithstanding the Employee agrees
      approximately 50% or more of his time will be spent at the principal
      office. At the end of three (3) years – if not earlier if agreed to by
      both parties – the parties will review Employee’s location as the goal is
      to have the executive team located at the Employer’s principal place of
      business.

              

      

       

      
        	
                1.9.

              	
                Nothing
      contained  herein  shall be construed  to
      preclude  the transfer of Employee's employment to another
      Employer Entity ("Subsequent Employer") as of, or at any time after, the
      Effective Date and no such transfer shall be deemed to be a termination of
      employment for the purposes of Article 3 hereof;  provided,
      however, that, effective with such transfer, all of Employer's
      obligations  hereunder shall be assumed  by and
      be  binding upon, and all of Employer's  rights
      hereunder shall be assigned to, such Subsequent Employer and the defined
      term "Employer" as used herein shall thereafter be deemed amended to mean
      such Subsequent Employer. Except as otherwise provided above, all of the
      terms and conditions of this Agreement, including without limitation,
      Employee's rights and obligations, shall remain in full force and effect
      following such transfer of
employment.

              

      

       

      ARTICLE 2: COMPENSATION AND
BENEFITS:

      

      
        	
                2.1

              	
                Subject
      to the terms and conditions of this Agreement, Employee’s base salary
      during the Term shall be One Hundred and Fifty Thousand Dollars ($150,000)
      per annum which shall be paid in accordance with Employer's standard
      payroll practice.  Employee's base salary may be adjusted from
      time to time at the sole discretion and approval of the majority of the
      Board of Directors (“Board”). Compensation payable under this section will
      be reviewed in September of 2008. Any changes to the Compensation to be
      paid pursuant to this section or any other provision of this Agreement
      shall be made in the sole discretion of
  Employer.

              

      

      

      
        	
                2.2

              	
                In
      addition to Employee’s base salary and benefits and subject to the terms
      and conditions of this agreement, Employee shall be paid a commission for
      each sale of a Employer commercial energy recovery ventilator system
      (“ERV”) or Employer commercial energy recovery ventilator system core
      “(Core”) to a third party made by the Company’s independent representative
      sales organization on behalf of
      Employer. Said commission shall be equal to two percent  (2%) of
      Employer’s Net Sales Price relating to such sale; provided, however, such
      commission shall be due only if: (1) the Gross Margin Percentage for the
      sale equals or exceeds Thirty- Five Percent (35%), and (2) Employer has
      received full payment of the Sales Price relating to the sale.
      Notwithstanding the foregoing, if an ERV contains a Core only the ERV
      shall be eligible for commission (i.e. a Core contained in an ERV is not
      subject to commission). Any commissions due and owing to Employee by
      reason of this section shall paid to Employee pursuant to Employer’s
      scheduled payroll in the month following Employer’s fiscal quarter in
      which the qualifying sale subject to commission was made and shall be
      subject to the terms and conditions of this Agreement. Such payment shall
      be subject to applicable tax and withholding. For the purpose of Section
      2.2, the following terms shall have the meanings provided
      below:

              

      

       

      

      
        
          
             

          

          
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                a.

              	
                “Gross
      Margin” shall mean Net Sales Price less the sum of the Cost of Goods Sold
      and Selling Expenses.

              

      

      

      
        	
                 
      

              	
                b.

              	
                "Cost
      of Goods Sold" shall mean the aggregate cost of the ERV or Core sold,
      prepared in accordance with GAAP consistent with Seller's practices.
      Without limiting the generality of the foregoing, "Cost of Goods Sold"
      shall include but not be limited to the following: raw material costs,
      direct labor costs (including payroll taxes and benefits), manufacturing
      overhead (including a reasonable portion of the factory space allocated to
      production, any outside buying services or commissions due to the same,
      reasonable product development and equipment depreciation costs, product
      freight, brokerage fees and,
duties.

              

      

      

      
        	
                 
      

              	
                c.

              	
                "Net
      Sales Price" shall mean the sales price of the ERV or Core, as applicable,
      subject to commission hereunder as prepared in accordance with GAAP
      and consistent with Seller's past practices, less (I) returns (including
      freight or handling incurred thereon), discounts, refund credits and
      allowances made or allowed to customers and (ii) sales and excise taxes
      actually paid.

              

      

      

      
        	
                 
      

              	
                d.

              	
                "Selling
      Expenses" shall mean the selling and advertising expenses of Employer
      relating to said Core and ERV including, but not limited to salespersons
      loaded salaries (including sales commissions), directly related
      promotional costs, freight out, advertising (local, co-op, etc.), photos,
      promotion, booth rental and related show expenses (if applicable),
      directly related travel expenses, entertainment expenses, and reasonable
      directly related travel expenses.

              

      

      

      
        	
                 
      

              	
                e.

              	
                “Gross
      Margin Percentage” shall mean the percentage derived by dividing the Gross
      Margin of the sale subject to commission by the Net Sales Price of that
      sale.

              

      

      

      
        	
                 
      

              	
                f.

              	
                "Sales
      Price" shall mean the full invoiced price, including shipping, handling
      and taxes, of the ERV or Core less returns, discounts, refunds, credits
      and allowances made or allowed to
customers.

              

      

       

      
        	
              	
                g.

              	
                “Commercial”
      shall mean a non-residential use of the referenced product in a
      building-related heating ventilation or air-conditioning application
      requiring at least One Thousand (1,000) cubic feet per minute of air such
      application.

              

      
        	
                2.3

              	
                Employer
      shall grant to Employee, pursuant to the Dais Analytic Corporation 2000
      Incentive Compensation Plan (the "2000 Plan"), a stock option to purchase
      up to Eight Hundred Thousand (800,000) Shares of Employer's $.01 par value
      common stock. Said option shall vest ratably over a three year period with
      Sixty Thousand Six Hundred and Sixty Six (66,666) shares vesting on the
      anniversary of third (3rd)
      month following the date of the option grant and every three (3) months
      thereafter until the entire sum is vested; provided, Employee is employed
      hereunder as of the date of such vesting. Each share subject to the option
      shall have an exercise price equal to the fair market value of Employer's
      common stock on the date of the option grant as determined in the sole
      discretion of the Board of  Directors,
      or if such authority has been delegated to the Compensation Committee, the
      Compensation Committee. All other terms and conditions said option grant
      are set forth in Exhibit A attached hereto, which forms a part of this
      Agreement.

              

      

       

      

      
        
          
             

          

          
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                2.4

              	
                Subject
      to the terms and conditions of this Agreement, if during the course of
      Employee’s employment hereunder, Employer receives net cash proceeds of
      One Million Dollars ($1,000,000) or more from the private or public sale
      of its $.01 par value common stock, with said stock being sold at no less
      than Twenty Five ($.25) per share (or in later rounds at a price per share
      which does not trigger anti-dilution or other related dilutive actions)
      and said sale being both initiated after the commencement of Employee’s
      employment and closed upon during the 2008 calendar year, Employee shall
      receive a cash bonus of Fifty Thousand Dollars ($50,000) payable in four
      equal monthly payments of Twelve Thousand Five Hundred Dollars $12,500)
      each. Said payments, if any, shall be commence on the month following the
      close of said sale and shall be paid with Employer’s scheduled monthly
      payroll. Any such payment hereunder shall be subject to all applicable tax
      and withholding requirements. Notwithstanding the foregoing, no payment
      shall be due or payable by reason of this section if condition of said
      sale precludes such a payment to
Employee.

              

      

       

      
        	
                2.5

              	
                Employee
      shall be entitled to three (3) weeks of paid vacation per year of
      employment. Said time shall accrue ratably over the year and any unused
      vacation time from one year may be carried to the next year of employment,
      if any, upon Employer’s written consent with said consent being require
      for each such request.  Employee shall be paid for fifty percent
      (50%) of any unused vacation at The time of termination if the said
      termination was not made for Cause. If said termination was made for Cause
      no payment for any unused vacation will be
made.

              

      

      

      
        	
                2.6

              	
                Subject
      to the terms and conditions of this Agreement, beginning on the Effective
      Date and continuing for the remainder  of the Term, Employee
      shall participate in any incentive plan instituted and approved by the
      Board of Directors of Employer provided, however, that all determinations
      relating to Employee’s participation, including, without limitation, those
      related to the performance goals applicable to Employee and Employee’s
      level of participation and payout opportunity, shall be made by a majority
      vote of the Company’s Board of
Directors.

              

      

       

      
        	
                2.7

              	
                During
      the Term, Employer shall reimburse Employee for all actual, reasonable and
      customary expenses incurred by Employee in the course of this employment
      provided that such expenses are incurred and accounted for in accordance
      with Employer's applicable policies and customary
    practices.

              

      

       

      
        	
                2.8

              	
                While
      employed by Employer, Employee shall be allowed to participate, on the
      same basis generally as other employees of Employer, in all general
      employee benefit plans and programs, including improvements or
      modifications of the same, which may exist as of the Effective Date or
      thereafter and which are made available by Employer to all or
      substantially all of Employer’s employees. Such benefits, plans, and
      programs may include, without limitation, any health, and dental insurance
      or 401K programs, if and when instituted. Any benefit plan currently
      existing or instituted by Employer after the Effective Date may be
      altered, change or discontinued by Employer at its sole discretion and at
      any time without obligation of any nature to Employee.  Except
      as specifically provided herein, nothing in this Agreement is to be
      construed or interpreted to increase or alter in any way the rights,
      participation, coverage, or benefits under such benefit plans or programs
      to other than those provided to other employees pursuant to the terms and
      conditions of such benefit plans and programs. While employed by Employer,
      Employee shall be eligible to receive awards under and subject to the
      terms and conditions of the 2000 Plan or any successor plan adopted by
      Employer; provided, however, that the foregoing shall not be construed as
      a guarantee with respect to the type, amount or frequency of such awards,
      if any, such decisions being solely within the discretion of discretion of
      the person or committee to whom such authority has been granted pursuant
      to such plan's terms. Employer shall reimburse
      Employee up to $1,800 for the cost of the Employee’s continuation coverage
      (“COBRA”) elected by Employee as a result of the termination of Employee’s
      most recent prior
employment.

              

      

       

      

      
        
          
             

          

          
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                2.9

              	
                Employer
      shall not, by reason of this Article 2, be obligated to institute,
      maintain, or refrain from changing, amending or discontinuing, any
      incentive compensation, employee benefit or stock or stock option program
      or plan.

              

      

       

      
        	
                2.10

              	
                
                  Employer
      may withhold from any compensation, benefits, or amounts payable under
      this Agreement
      all federal, state, city, or other tax as may be required pursuant to any
      law or governmental regulation or ruling, any required withholdings and
      any sums related to Employee portion of health care or other
      benefits.

                

              

         

      

      
      

      

      ARTICLE 3: TERMINATION OF EMPLOYMENT
AND EFFECTS OF SUCH TERMINATION:

       

       

      
        	
                3.1

              	
                Employee's
      employment with Employer shall be
terminated:

              

      

       

      
        
          	
                  (i)

                	
                  Upon
      the death of Employee,

                
	 
      	 
      
	
                  (ii)

                	
                  Upon
      Employee's Retirement (as defined below)

                
	 
      	 
      
	
                  (iii)

                	
                  Upon
      Employee's Permanent Disability (as defined below)

                
	 
      	 
      
	
                  (iv)

                	
                  At
      any time by Employer upon notice to Employee, or by Employee upon thirty
      (30) days notice to Employer, for any or no reason or

                
	 
      	 
      
	
                  (v)

                	
                  Upon
      expiration of the Term of this
Agreement.

                

        

      

       

       

      
        	
                3.2

              	
                If
      Employee's employment is terminated by reason of any of the following
      circumstances, Employee shall not be entitled to receive the benefits
      set forth in Section 3.3 hereof:

              

      

       

      
        
          	
                  (i)

                	
                   Death.

                
	 
      	 
      
	
                  (ii)

                	
                  Retirement.  "Retirement"
      shall mean either (a) Employee's voluntary retirement from Employment
      pursuant to a bona fide retirement plan maintained by Employer at or after
      normal retirement age (either voluntarily or pursuant to any Employer
      policy) or 

                
	 
      	 
      
	 
      	 
      
	 
      	
                  (b)
      The voluntary termination of Employee's employment by Employee in
      accordance with Employer's early retirement policy or offer or for other
      than Good Reason (as defined below).

                
	 
      	 
      
	
                  (iii)

                	
                  Permanent
      Disability. "Permanent Disability" shall mean Employee's physical or
      mental illness, injury or condition that renders Employee incapable of
      performing his usual duties with such condition likely to remain
      continuous for a period of three months as determined, in its sole
      discretion, by the Board of Directors.

                
	 
      	 
      
	 
      	 
      
	
                  (iv)

                	
                  Voluntary
      Termination. "Voluntary Termination" shall mean a termination of
      employment at the election of Employee for other than Good Reason. "Good
      Reason" shall mean a termination of employment by Employee because of
      a material breach by Employer of any material provision of this Agreement
      that which remains uncorrected for thirty (30) days following written
      notice of such breach by Employee to   Employer provided such
      termination occurs within fifteen (15) days after the expiration of the
      notice period.  

                
	 
      	 
      
	 
      	 
      

        

      

       

      
      

       

      
      

      
      

       

      
      

       

      
        
          
             

          

          
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                  (v)

                	
                  Termination
      of Employee's employment by Employer for Cause. "Cause" shall mean any of
      the following: (a) Employee's willful misconduct, dishonesty or reckless
      disregard of his responsibilities to Employer or in the performance of the
      duties and services required of Employee pursuant to this Agreement, and
      Employee has not cured such conduct within fifteen (15) days of written
      notice of his default, (b) the Employee is convicted or pleads nolo contendre or the
      equivalent to either a felony or misdemeanor involving moral turpitude,
      (c) a material violation of the Code of Business Conduct (if the Employer
      has in place such a plan), and Employee has not cured his default within
      fifteen (15) days of written notice of his default or (d) Employee's
      breach of any material provision of this Agreement which remains
      uncorrected for fifteen (15) days following notice of such breach to
      Employee by Employer, or (e) Employer’s failure to follow reasonable,
      lawful order or directions of the Chief  Executive Officer or
      the Bo

                
	 
      	 
      
	 
      	
                   Determination
      as to whether or not Cause exists for termination of the Employee’s
      employment will be made by a majority vote of the Board of
      Directors.

                
	 
      	 
      
	
                  (vi)

                	
                  Expiration
      of Term.

                
	 
      	 
      
	 
      	
                  Upon
      the occurrence of any of the events described in (i) through (vi) of
      Section 3.2, Employee's employment shall terminate and the Employer shall
      have no further obligation to Employee hereunder except to pay to Employee
      (or his estate, as the case may be), upon the latter of ten (10) days
      following the date of termination or upon the date of Employer’s next
      scheduled payroll, any accrued but unpaid Base Salary, and earned
      commissions calculated to date of termination plus any of un-reimbursed
      expenses payable to Employee pursuant to the terms and conditions of this
      agreement. All future compensation to which Employee would otherwise have
      been entitled and all future benefits for which the Employee was eligible
      shall cease and terminate as of the date of
termination.

                
	 
      	 
      
	 
      	
                  Any
      and all payments made To Employee ( or his estate, as the case may
      be)pursuant to this Section 3.2 shall be made after deduction of any
      non-reimbursable amounts paid by Employer on behalf of Employee and after
      all standard and customary withholding including but not limited to
      withholding for tax and social security
  purposes.

                

        

      

      
      

       

      
      

      
      

       

      
        	
                3.3

              	
                If
      Employee's employment is terminated by Employee for Good Reason or by
      Employer for any reason other than as set forth in Section 3.2 above,
      Employee shall be entitled to the following, as applicable:

                 

                (i) Subject to the
      provisions of Section 3.4, Employer shall pay to Employee a severance
      benefit consisting of eight (8) equal monthly cash payments which in the
      aggregate equal two thirds (66%) of Employee's base annual salary in
      effect at the date of Employee's termination of employment. Such
      severance benefit shall be paid commencing with the first payroll period
      of Employer following Employee's termination date. Notwithstanding the
      foregoing, if the Employee is terminated by Employer for failure to
      adequately perform the duties of his position as determined by the
      majority vote of the Board of Directors, then Subject to the provisions of
      Section 3.4, Employer shall pay to Employee a severance benefit consisting
      of three (3) monthly cash payments equal in the aggregate to Twenty five
      percent (25%) of Employee’s base annual salary in effect at the date of
      Employee’s termination of employment. Payment of such severance shall be
      made pursuant to the same procedure as described in this section (ii)
      above.

                 

                (ii) In the event Employee’s
      employment is terminated by Employer as a direct result of merger or the
      sale by Employer of all or substantially all of its assets the vesting of
      the options grant made under Section 2.4 shall be modified by the Board of
      Directors or, if appropriate, Compensation Committee so as to cause all
      shares subject to said grant to vest as of the date of any such merger or
      acquisition or any such date prior thereto as said Board of Directors
      shall determine in its sole
discretion.

              

      

       

      
        
          
          

        

        
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                3.4

              	 Payments made under this Agreement as well as any severance
      benefit paid to Employee pursuant to Section 3.3 shall be in consideration
      of Employee's continuing obligations hereunder (including those after
      termination), including, without limitation, Employee's obligations under
      Article 4. Further, as a condition to the receipt of such severance
      benefit, Employer, in its sole discretion, may require Employee to first
      execute a release, in the form established by Employer, releasing Employer
      and all of its affiliates, and their officers, directors, employees, and
      agents, from any and all claims and from any and all causes of action of
      any kind or character, including, but not limited to, all claims and
      causes of action arising out of Employee's  employment with
      Employer and any of its affiliates or the termination of such employment.
      The performance of Employer's obligations under Section 3.3 and the
      receipt of the severance benefit provided thereunder by Employee shall
      constitute full settlement of all such claims and causes of
      action.  Employee's rights under Section 3.3 are Employee's sole
      and exclusive rights against the Employer or its affiliates and the
      Employer's sole and exclusive liability to Employee under this Agreement,
      in contract, tort or otherwise, for the termination of his employment
      relationship with Employer. Employee agrees that all disputes relating to
      Employee’s termination of employment, including, without limitation, any
      dispute as to "Cause" or "Voluntary Termination" and any claims or demands
      against Employer based upon Employee's employment for any monies other
      than those specified in Section 3.3, shall be resolved through arbitration
      as provided in Section 6.6 hereof; provided, however, that decisions
      specifically reserved herein for either the Board of Directors or the
      Compensation Committee, including but not limited to those such as to
      whether "Cause" exists for termination of the employment relationship with
      Employee and whether and as of what date Employee has become permanently
      disabled are delegated solely to the Board of Directors of Employer or the
      Compensation Committee (as the case may be), for determination and any
      dispute of Employee with any such decision shall be limited to whether the
      Board of Director or Compensation Committee as the case may be reached
      such decision in good faith. Nothing contained in this Article 3 shall be
      construed to be a waiver by Employee of any benefits accrued for or due
      Employee under any employee benefit plan (as such term is defined in the
      Employees' Retirement Income Security Act of 1974, as amended) maintained
      by Employer. 

      

       

      
        	
                3.5

              	
                Termination
      of the employment relationship does not terminate those obligations
      imposed by this Agreement which are continuing obligations, including,
      without limitation, Employee’s obligations under Article 4.  All
      such obligations shall survive termination of this
    Agreement.

              

      

       

       

      ARTICLE
4: OWNERSHIP AND PROTECTION OF INTELLECTUAL PROPERTY AND
CONFIDENTIALINFORMATION:

       

      
        	
                4.1

              	
                Any and all intellectual property rights, title
      and interest in works, including but not limited to all information,
      ideas, concepts, improvements, discoveries, and inventions, whether
      patentable or not, which are conceived, made, developed or acquired by
      Employee, individually or in conjunction with others, during Employee's
      employment with Employer or any of its affiliates (whether during business
      hours or otherwise, whether on Employer’s premises or otherwise and
      whether with or without use of Employer’s facilities, materials,
      processes, equipment or supplies) which relate to the actual or intended
      business, products or services of Employer or its affiliates (including,
      without limitation, all such information relating to corporate
      opportunities, research, products, financial and sales data, pricing and
      trading terms, evaluations, opinions, interpretations, acquisition
      prospects, the identity of customers or their requirements, the identity
      of key contacts within the customer's organizations or within the
      organization of acquisition prospects, or marketing and merchandising
      techniques, prospective names, and marks), and all writings or materials
      of any type embodying any of such items, shall vest exclusively in and be
      the sole and exclusive property of Employer or its affiliates, as the case
      may be. Employee will promptly disclose to Employer, any such intellectual
      property rights, title and interest in works and any such intellectual
      property rights, title and interest in works made in whole or in part by
      Employee within one year following the termination of his employment shall
      be deemed to fall within the provisions of this Agreement unless proven by
      Employee to have been first conceived and made following such
      termination.

              

      

       

      
        
          
             

          

          
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                4.2

              	
                Employee
      acknowledges that the businesses of Employer and its affiliates are highly
      competitive and that their strategies, methods, books, records, and
      documents, their technical information concerning their products,
      materials, equipment, research and development, services, and processes,
      procurement procedures and pricing techniques, the names of and other
      information (such as credit and financial data) concerning their customers
      and business affiliates, all comprise confidential business information
      and trade secrets which are valuable, special, and unique assets which
      Employer or its affiliates use in their business to obtain a competitive
      advantage over their competitors. Employee further acknowledges that
      protection of such confidential business information and trade secrets
      against unauthorized disclosure and use is of critical importance to
      Employer and its affiliates in maintaining their competitive position.
      Employee hereby agrees that, except as required in connection with the
      performance of his duties under this Agreement, Employee shall keep
      confidential and shall not, at any time during or after his employment by
      Employer, directly or indirectly, disclose any confidential business
      information or trade secrets of Employer or its affiliates (other than to
      Employer’s other employees and/or agents in connection with such party’s
      performance of its obligation to Employer), or make any use thereof,
      except in the carrying out of his employment responsibilities hereunder.
      Confidential business information shall not include information in the
      public domain (but only if at the time of the disclosure such information
      was in the public domain and the same became a part of the public domain
      through a means other than a disclosure prohibited hereunder). The above
      notwithstanding, a disclosure shall not be unauthorized if (I) it is
      required to be disclosed by law or a court of competent jurisdiction
      provided, however, that Employee shall, to the extent practicable and
      lawful in any such events, give prior notice to Employer of his intent to
      disclose any such confidential business information in such context so as
      to allow Employer or its affiliates an opportunity (which Employee will
      not oppose) to obtain such protective Orders or similar relief with
      respect thereto as may be deemed
appropriate.

              

      

       

      
        	
                4.3

              	
                All
      tangible materials including but not limited to written materials,
      listing, notes, data, sketches, drawings, memorandums, models, reference
      materialism accounts, records, and other documents made by, or coming into
      the possession of, Employee during the period of Employee's employment by
      Employer which relate in any way to or contain or disclose confidential
      business information or trade secrets of Employer or its affiliates shall
      be and remain the property of Employer, or its affiliates, as the case may
      be. Upon termination of Employee's employment by Employer, for any reason,
      Employee promptly shall deliver the same, and all copies thereof, to
      Employer.

              

      

       

      
        	
                4.4

              	
                For
      purposes of this Article 4, "affiliates" shall mean entities in which
      Employer has a direct or indirect equity
  interest.

              

      

       

      
        	
                4.5

              	
                Employee shall not use or disclose to anyone
      affiliated in any manner with Employer or Employer Entities,
      at any time any confidential information secured from any source,
      including but not limited to any former employer of Employee, to whom he
      has a duty of confidentiality with respect to said
      information.  Employee represents and covenants that to the best
      of his knowledge, he is under no such obligation at this
      time.

              

      

      
 

      
        
          
          

        

        
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                4.6

              	
                Employee
      will execute any documents reasonably necessary to transfer the
      intellectual property described in Section 4 to Employer, including but
      not limited to, all patent applications and any continuations in part,
      reexaminations, reissues or foreign counterparts thereof. In the event
      Employer is unable, after reasonable effort, the secure Employee’s
      signature on any documents, letters patent, copyright or other analogous
      protection relating to an Invention, whether because of Employee’s
      physical or mental incapacity or for any other reason whatsoever, Employee
      hereby irrevocably designates and appoints  Employer and its
      duly authorized officers and agents as Employee’s agent and
      attorney-in-fact, to act for and in Employee’s behalf and stead to execute
      and file any such application or applications and to do all other lawfully
      permitted acts to further the prosecution and issuance of letters patent,
      copyright or other analogous protection thereon with the same legal force
      and effect as is executed by Employee. Employee’s obligation to assist
      Employer in obtaining and enforcing patents and copyrights for such
      Inventions in any and all countries shall continue beyond the termination
      of this Agreement and in such circumstances Employer shall compensate
      Employee, at a reasonable rate and for a reasonable number of hours but in
      no event more than the hours actually spent by Employee, to provide said
      assistance pursuant to a written request by
  Employer.

              

      

       

       

      ARTICLE
5: NON-COMPETE AND NON-SOLICITATION

       

       

      
        	
                5.1

              	
                Employee
      covenants and agrees that (a) during the Term of this Agreement and (b)
      for a period of one (1) year after termination of Employee’s employment
      with Employer for any reason, Employee will not, without prior written
      consent of Employer, directly or indirectly, have an interest in, be
      employed by or be connected with, as an employee, consultant, officer,
      director, partner, member, stockholder or joint venture, any person or
      entity owning, managing controlling or otherwise participating or
      assisting in any business that is in competition with Employer’s business
      or intended business. Notwithstanding the foregoing, Employee’s ownership
      of greater than five (5%) of the issued and outstanding securities of any
      class of a corporation listed on a national securities exchange or
      designated as national market system securities on an inter-dealer
      quotation system by the National Association of Securities Dealer’s, Inc.
      shall not be deemed a violation of this Agreement. Employee agrees that he
      will not interfere with, disrupt or attempt to disrupt the relationship,
      contractual or otherwise, between Employer and any other party including
      but not limited to any investor, banker, broker, agent, customer, client,
      supplier, consultant or employee of Employer. In addition Employee agrees
      that (a) upon termination and a for a period of one (1) year thereafter,
      Employee will not solicit, assist any other party in the solicitation of
      or hire any person employed by Employer at any time during such one (1)
      year period. The foregoing restriction shall not apply to any employee or
      former employee of Employer whose employment with the Employer terminated
      after the date which is one year prior to the date of the termination of
      the Employee.

              

      

       

      
        	
                5.2

              	
                It
      is the desire and the intent of the parties that the provisions of Section
      5 shall been forced to the fullest extent possible under the laws and
      public policies applied in each jurisdiction in which enforcement is
      sought. Accordingly, if any particular portion of Section 5 shall be
      adjudicated to be invalid or unenforceable, the invalid or unenforceable
      portion of Section 5 shall be deemed amended or deleted, if necessary,
      preserving the provision to the fullest extent possible in accordance with
      the intent of the parties, thereby rendering the invalid or unenforceable
      section to be valid and enforceable, such amendment or deletion to apply
      only with respect to the operation of Section 5 in the particular
      jurisdiction in which such adjudication is made. Nothing in Section 5
      shall reduce or abrogate the Employees obligations under the other
      provisions of this Agreement including but not limited to Section 4
      hereof.

              

      

       

      
        
          
             

          

          
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      ARTICLE 6: MISCELLANEOUS:

       

      
        	
                6.1

              	
                Except
      as otherwise provided in Section 4.4 hereof, for purposes of this
      Agreement, the terms "affiliate" or "affiliated" means an entity who
      directly, or indirectly through one or more intermediaries, controls, is
      controlled by, or is under common control with Employer or in which
      Employer has a 5% or more equity
interest.

              

      

       

      
        	
                6.2

              	
                For
      purpose of this Agreement, notices and all other communications provided
      for herein shall be in writing and delivered in person or deposited,
      certified or registered, return receipt requested and postage prepaid in
      the United States or deposited with an internationally- reputable air
      courier with written verification of
receipt:

              

      

      
         

        If to
Employer, to: Dais Analytic
Corporation at 11552 Prosperous Drive, Odessa, Florida 33556, to the
attention of the General Counsel, with a copy simultaneously sent by facsimile
to the attention of Chief Executive Officer at 727-375-8485
(facsimile).

         

        If to
Employee, to________[intentionally omitted]_____________________, or at such
other address as either party may from time to time designate by notice
hereunder.

         

        Notices
shall be effective upon delivery in person or, if mailed or deposited with an
internationally reputable air courier on the earlier of the day following
receipt or midnight on the fourth business day following the date of said
mailing or deposit.

      

       

      
        	
                6.3

              	
                This
      Agreement shall be governed by and construed and enforced, in all respects
      in Accordance with the law of the State of Florida without regard to
      principles of conflicts of law.

              

      

       

      
        	
                6.4

              	
                No
      failure by either party hereto at any time to give notice of any breach by
      the other party of or to require compliance with, any condition or
      provision of this Agreement shall be deemed a waiver of similar or
      dissimilar provisions or conditions at the same or at any prior or
      subsequent time.

              

      

       

      
        	
                6.5

              	
                It
      is a desire and intent of the parties that the terms, provisions,
      covenants, and remedies contained in this Agreement shall be enforceable
      to the fullest extent permitted by law. If any such term, provision,
      covenant, or remedy of this Agreement or the application thereof to any
      person, association, or entity or circumstances shall, to any extent, be
      construed to be invalid or unenforceable in whole or in part, then such
      term, provision, covenant, or remedy shall be construed in a manner so as
      to permit its enforceability under the applicable law to the fullest
      extent permitted by law. In any case, the remaining provisions of this
      Agreement or the application thereof to any person, association, or entity
      or circumstances other than those to which they have been held invalid or
      unenforceable, shall remain in full force and
  effect.

              

      

       

      
        	
                6.6

              	
                It
      is the mutual intention of the parties to have any dispute concerning this
      Agreement resolved out of court. Accordingly, the parties agree that any
      such dispute shall, as the sole and exclusive remedy, be submitted for
      resolution to arbitration in a proper venue in Washington, DC as agreed by
      both parties by a single arbitrator pursuant to the rules of the American
      Arbitration Association and the arbitration award shall be final and
      binding upon the parties and enforceable in any court of competent
      jurisdiction. The cost of the arbitration shall be borne equally by the
      parties.  Notwithstanding the foregoing the parties agree that
      Employer, on its own behalf and on behalf of any of the Employer Entities,
      shall be entitled to seek a restraining order or injunction in any court
      of competent jurisdiction to prevent any breach or the continuation of any
      breach of the provisions of Article 4 and/or Article
  5.

              

      

       

       

      
        
          
             

          

          
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                6.7

              	
                This
      Agreement shall be binding upon and inure to the benefit of Employer, to
      the extent herein provided, and any other person, association, or entity
      which may hereafter acquire or succeed to all or substantially all of the
      business or assets of Employer by any means whether direct or indirect, by
      purchase, merger, consolidation, or otherwise. Employee's right and
      obligations under this Agreement are personal and such rights, benefits,
      and obligations of Employee shall not be voluntarily or involuntarily
      assigned, alienated, or transferred, whether by operation of law or
      otherwise, without the prior written consent of Employer, other than in
      the case of death or incompetence of
Employee.

              

      

       

      
        	
                6.8

              	
                This
      Agreement supercedes and replaces any previous agreements and discussions
      pertaining to the subject matter covered herein.  This
      Agreement, constitutes the entire agreement of the parties with regard to
      the terms of Employee’s employment, termination of employment and
      severance benefits, and contains all of the covenants, promises,
      representations, warranties, and agreements between the parties with
      respect to such matters. Each party to this Agreement acknowledges that no
      that no agreement, statement, or promise relating to the employment of
      Employee by Employer that is not contained in this Agreement shall be
      valid or binding.  Any modification of this Agreement will be
      effective only if it is in writing and signed by each party whose rights
      hereunder are affected thereby, provided that any such modification must
      be authorized or approved by the Board of Directors of Employer or, if
      delegated by the Board to the Compensation Committee, the Compensation
      Committee or its delegate, as
appropriate.

              

      

       

      
        	
                6.9

              	
                Employee
      represents and warrants that the execution, delivery and performance of
      this Agreement does not and will not contravene, conflict with or
      otherwise violate the terms of any written or oral agreement among
      Employee and one or more third
parties.

              

      

       

      
        	
                6.10

              	
                The
      section headings used herein are for convenience and reference only and
      are not intended to define, limit or describe the scope or intent If any
      provision of this agreement. When used in this Agreement, the term
      “including” shall mean without limitation by reason of enumeration. Words
      used in the singular shall include the
plural.

              

      

       

      
        	
                6.11

              	
                The
      failure of either party to insist, in any one or more instances, upon
      strict performance of any of the terms or conditions of this Agreement
      shall not be construed as a waiver or a relinquishment of any right
      granted hereunder or of the future performance of any such term, covenant
      or condition, but the obligations of either party with respect thereto
      shall continue in full force and
effect.

              

      

       

       

       

      IN
WITNESS WHEREOF, Employer and Employee have duly executed this Agreement in
multiple originals to be effective on the Effective Date.

       

      
        
          	
                  DAIS
      ANALYTIC CORPORATION

                	 	 	
                  EMPLOYEE

                	 
	 	 	 	 	 
	 	 	 	 	 
	
                  /s/Timothy
      N. Tangredi  

                	 	 	
                  /s/William
      J. Newman 

                	 
	
                  
                    Timothy
      N. Tangredi

                  

                	 	 	
                  
                    William
      J. Newman

                  

                	 
	
                  Chief
      Executive Officer

                	 	 	
                   

                	 

        

      

       

      

 

      
        
          
          

        

        
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