Document:

EXHIBIT 10.4

EXHIBIT 10.4 

EMPLOYMENT AGREEMENT 

        THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made as of April 1, 2005, by
A4S Technologies, Inc., a Colorado corporation (the “Employer”),
and Jeffrey McGonegal, an individual who is a resident of Castle Rock, Colorado (the
“Executive”). 

RECITALS 

        WHEREAS,

the Employer wishes to employ Executive upon the terms and conditions set forth
in this Agreement; and  

        WHEREAS,
the Employee wishes to be employed upon the terms and conditions set forth herein. 

AGREEMENT 

        The
parties, intending to be legally bound, agree as follows: 

1.   DEFINITIONS 

        For the
purposes of this Agreement, the following terms have the meanings specified or referred to
in this Section 1. 

        “Agreement”
means this Employment Agreement, as amended, restated or otherwise modified from time to
time. 

        “Basic
Compensation” means Salary and Benefits. 

        “Benefits”
is defined in Section 3.2. 

        “Board
of Directors” means the board of directors of the Employer. 

        “Change
in Control” means (a) the acquisition, directly or indirectly, by any person or
group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934) of
the beneficial ownership of more than 50% of the outstanding securities of the Employer;
(b) a merger or consolidation in which the Employer is not the surviving entity, except
for a transaction the principal purpose of which is to change the state in which the
Employer is incorporated; (c) sale, transfer or other disposition of all or substantially
all of the assets of the Employer; (d) a complete liquidation or dissolution of the
Employer, or (e) any reverse merger in which the Employer is the surviving entity but in
which securities possessing more than 50% of the total combined voting power of the
Employer’s outstanding securities are transferred to a person or persons different
from the person’s holding those securities immediately prior to such merger. 

        “Confidential
Information” means any and all: 

1 

         
          (a)       
          trade secrets concerning the business and affairs of the Employer, product
          specifications, data, know-how, formulae, compositions, processes, designs,
          sketches, photographs, graphs, drawings, samples, inventions and ideas, past,
          current, and planned research and development, current and planned manufacturing
          or distribution methods and processes, customer lists, current and anticipated
          customer requirements, price lists, market studies, business plans, computer
          software and programs (including object code and source code), computer software
          and database technologies, systems, structures, and architectures (and related
          formulae, compositions, processes, improvements, devices, know-how, inventions,
          discoveries, concepts, ideas, designs, methods and information), and any other
          information, however documented, that is a trade secret within the meaning of
          the Colorado Trade Secrets Act, as in effect as of the date hereof and as
          amended from time to time. 

         
          (b)       
          information concerning the business and affairs of the Employer (which includes
          historical financial statements, financial projections and budgets, historical
          and projected sales, capital spending budgets and plans, the names and
          backgrounds of key personnel and personnel training and techniques and
          materials), however documented; and 

         
          (c)       
          notes, analysis, compilations, studies, summaries, and other material prepared
          by or for the Employer containing or based, in whole or in part, on any
          information included in the foregoing. 

        “disability”
is defined in Section 6.2. 

        “Effective
Date” means the date stated in the first paragraph of this Agreement. 

        “Employee
Invention” means any idea, invention, technique, modification, process, or
improvement (whether patentable or not), any industrial design (whether registrable or
not), any mask work, however fixed or encoded, that is suitable to be fixed, embedded or
programmed in a semiconductor product (whether recordable or not), and any work of
authorship (whether or not copyright protection may be obtained for it) created,
conceived, or developed by the Executive, either solely or in conjunction with others,
during the Employment Period, or a period that includes a portion of the Employment
Period, that relates in any way to, or is useful in any manner in the business then being
conducted or proposed to be conducted by the Employer, and any such item created by the
Executive, either solely or in conjunction with others, following termination of the
Executive’s employment with the Employer, that is based upon or uses Confidential
Information. 

        “Employment
Period” means the term of the Executive’s employment under this Agreement. 

        “Fiscal
Year” means the Employer’s fiscal year, as it exists on the Effective Date,
which on the Effective Date is the calendar year. 

        “for
cause” is defined in Section 6.3. 

        “for good
reason” is defined in Section 6.4. 

2 

        “person”
means any individual, corporation (including any non-profit corporation), general or
limited partnership, limited liability company, joint venture, estate, trust, association,
organization, or governmental body. 

        “Post-Employment
Period” is defined in Section 8.2. 

        “Proprietary
Items” is defined in Section 7.2(a)(iv). 

      “Salary”
is defined in Section 3.1.  

2.   EMPLOYMENT TERMS AND
DUTIES 

        2.1  
Employment. The Employer hereby employs the Executive, and the Executive hereby
accepts employment by the Employer, upon the terms and conditions set forth in this
Agreement. 

        2.2  
Basic Term. Subject to the provisions of Section 6, the basic term of
the Executive’s employment under this Agreement will begin on the Effective Date and
end on May 31, 2007. 

        2.3  
Duties. The Executive will have such duties as are assigned or delegated to the
Executive by the Board of Directors, and will initially serve as Chief Financial Officer
 of the Employer. The Executive will devote substantial but not all of his
business time, attention, skill, and energy to the business of the Employer, will use his
best efforts to promote the success of the Employer’s business, and will cooperate
fully with the Board of Directors in the advancement of the best interests of the
Employer. Nothing in this Section 2.3, however, will prevent the Executive from
engaging in additional activities in connection with personal investments and community
affairs that are not inconsistent with the Executive’s duties under this Agreement.
In addition, provided that Executive obtains the advance written consent of the Board of
Directors, Executive may serve on the board of directors of other companies, with any
current board positions of the Executive, being accepted as of the date of this Agreement.
If the Executive is elected as a director of the Employer or as a director or officer of
any of its affiliates, the Executive will fulfill his duties as such director or officer
without additional compensation. 

3.   COMPENSATION 

        3.1  
Salary. The Executive will be paid an annual salary of $60,000, subject to
adjustment as provided below (the “Salary”), which will be payable in
equal periodic installments according to the Employer’s customary payroll practices,
but no less frequently than monthly. The Executive agrees that $2,,000 of his total Salary
will be accrued and not be paid (“Deferred Pay”), until such time as Employer
has closed on an Initial Public Offering (“IPO”) of its securities, raising
gross proceeds of $5,000,000 or more, at which time Executive’s then total Deferred
Pay will be paid out and his Salary thereafter paid on a current basis. In the event that
the IPO as defined above is not closed by July 31, 2005, Executive shall commence being
paid his Salary thereafter on a current basis and the Deferred Pay amount will be paid
upon the next fund raising event of at least $250,000, unless an alternative agreement is
reached between the parties. The Salary may be reviewed by the Board of Directors, and may
be adjusted upward, but not downward in the sole discretion of the Board of Directors. 

3 

        3.2  
Bonus. The Board of Directors will create a bonus plan for executive officers,
which shall include the Executive. The terms, objectives and amounts of the bonus plan
will be determined by the Board of Directors 

        3.3  
Benefits. The Executive will, during the Employment Period, be permitted to
participate in such hospitalization, major medical, and other employee benefit plans of
the Employer that may be in effect from time to time, to the extent the Executive is
eligible under the terms of those plans (collectively, the “Benefits”). 

        3.4  
Options. The Executive has been granted options to purchase up to 1,500,000 shares
of the Employer’s common stock at $.19 per share, which vest over a period of four
years, with 25% of the shares vested on each of the first, second, third and fourth
anniversaries of the date of grant. The options have been included in an option agreement
which provides that the options will be exercisable for ten years from the date of grant
of October 29, 2004, unless earlier terminated in connection with termination of the
Employee’s employment with the Employer, including any periods under Section 6.6
of this Agreement. The vesting of all outstanding stock options to purchase the
Employer’s stock owned by the Employee shall be accelerated to become immediately
exercisable in full in the event of a Change in Control. 

4.   FACILITIES AND
EXPENSES. 

        The
Employer will furnish the Executive office space, equipment, supplies, and such other
facilities and personnel, as the Employer deems necessary or appropriate for the
performance of the Executive’s duties under this Agreement. The Employer will pay the
Executive’s dues in such professional societies and organizations as the Board of
Directors deems appropriate, and will pay on behalf of the Executive (or reimburse the
Executive for) reasonable expenses incurred by the Executive at the request of, or on
behalf of, the Employer in the performance of the Executive’s duties pursuant to this
Agreement, and in accordance with the Employer’s employment policies, including
reasonable expenses incurred by the Executive in attending conventions, seminars, and
other business meetings, in appropriate business entertainment activities, and for
promotional expenses. The Executive must file expense reports with respect to such
expenses in accordance with the Employer’s policies. All expenses shall be reimbursed
within 30 days of submission of appropriate expense reports. 

         (a)

5.   VACATIONS AND HOLIDAYS 

        The
Executive will be entitled to four weeks’ paid vacation each Fiscal Year in
accordance with the vacation policies of the Employer in effect for its executive officers
from time to time. Such policies may include provisions for carryover of unused vacation
as well as requirements to secure advance approval for carryover of unused vacation hours.
The Executive will also be entitled to the paid holidays set forth in the Employer’s
policies. If the Executive is unable to perform his duties for physical or mental reasons,
then Employer shall provide Executive with his Basic Compensation until Executive’s
employment is terminated due to the disability of the Executive 

4 

6.   TERMINATION 

        6.1  
Events of Termination. The Employment Period, the Executive’s Basic
Compensation, and any and all other rights of the Executive under this Agreement or
otherwise as an employee of the Employer will terminate (except as otherwise provided in
this Section 6): 

         
          (a)       
          upon the death of the Executive; 

         
          (b)       
          upon the disability of the Executive (as defined in Section 6.2)
          immediately upon notice from either party to the other; 

         
          (c)       
          for cause (as defined in Section 6.3), as determined by the Board of
          Directors immediately upon notice from the Employer to the Executive, or at such
          later time as such notice may specify; 

         
          (d)       
          for good reason (as defined in Section 6.4) upon not less than 30
          days’ prior notice from the Executive to the Employer, which notice
          specifies the Executive’s intent to terminate this Agreement and the
          factual basis for such termination, it being understood that if the Employer can
          cure the problem giving rise to such termination within such 30-day period, the
          termination will not occur; or 

         
          (e)       
          upon notice by the Board of Directors. 

        6.2  
Definition of “Disability.” For purposes of Section 6, the
Executive will be deemed to have a “disability” if, for physical or mental
reasons, the Executive is unable to perform the Executive’s duties under this
Agreement for 90 consecutive days, or 120 days during any 12-month period, as determined
in accordance with this Section 6.2. The disability of the Executive will be
determined by a medical doctor selected by written agreement of the Employer and the
Executive upon the request of either party by notice to the other. If the Employer and the
Executive cannot agree on the selection of a medical doctor, each of them will select a
medical doctor and the two medical doctors will select a third medical doctor who will
determine whether the Executive has a disability. The determination of the medical doctor
selected under this Section 6.2 will be binding on both parties. The Executive must
submit to a reasonable number of examinations by the medical doctor making the
determination of disability under this Section 6.2, and the Executive hereby
authorizes the disclosure and release to the Employer of such determination and all
supporting medical records. If the Executive is not legally competent, the
Executive’s legal guardian or duly authorized attorney-in-fact will act in the
Executive’s stead, under this Section 6.2, for the purposes of submitting the
Executive to the examinations, and providing the authorization of disclosure, required
under this Section 6.2. 

        6.3  
Definition of “For Cause.” For purposes of Section 6, the
phrase “for cause” means: (a) the Executive’s material breach of this
Agreement; (b) the Executive’s willful failure to adhere to any written Employer
policy if the Executive has been given a reasonable opportunity to comply with such policy
or cure his failure to comply (which reasonable opportunity must be granted during the
10-day period preceding termination of this Agreement); (c) the appropriation (or
attempted appropriation) of a material business opportunity of the Employer, including
attempting to secure or securing any personal profit in connection with any transaction
entered into on behalf of the Employer; (d) the misappropriation (or attempted
misappropriation) of any of the Employer’s funds or property; or (e) the conviction
of, the indictment for (or its procedural equivalent), or the entering of a guilty plea or
plea of no contest with respect to, a felony. 

5 

        6.4  
Definition of “For Good Reason.” For purposes of Section 6,
the phrase “for good reason” means: (a) the Employer’s material breach of
this Agreement; or (b) a material reduction in Executive’s position, duties and
responsibilities from those described in Section 2.3 of this Agreement. 

        6.5  
Termination Pay. Effective upon the termination of this Agreement during the term
specified in Section 2.2, the Employer will be obligated to pay the Executive (or, in the
event of his death, his designated beneficiary as defined below) only such compensation as
is provided in this Section 6.5, and in lieu of all other amounts and in settlement
and complete release of all claims the Executive may have against the Employer (as set
forth in a valid release of the Employer and its agents and affiliates signed by the
Executive), other than the right, if any, to continue to be employed on a reduced basis as
set forth in Section 6.6. For purposes of this Section 6.5, the
Executive’s designated beneficiary will be such individual beneficiary or trust,
located at such address, as the Executive may designate by notice to the Employer from
time to time or, if the Executive fails to give notice to the Employer of such a
beneficiary, the Executive’s estate. Notwithstanding the preceding sentence, the
Employer will have no duty, in any circumstances, to attempt to open an estate on behalf
of the Executive, to determine whether any beneficiary designated by the Executive is
alive or to ascertain the address of any such beneficiary, to determine the existence of
any trust, to determine whether any person or entity purporting to act as the
Executive’s personal representative (or the trustee of a trust established by the
Executive) is duly authorized to act in that capacity, or to locate or attempt to locate
any beneficiary, personal representative, or trustee. 

         
          (a)       
          Termination by the Executive for Good Reason. If the Executive terminates
          this Agreement for good reason, the Employer will pay the Executive the
          Executive’s Salary in periodic installments according to the
          Employer’s customary payroll practices until six months after the date such
          termination is effective. 

         
          (b)       
          Termination by the Employer for Cause. If the Employer terminates this
          Agreement for cause, the Executive will be entitled to receive his Salary only
          through the date such termination is effective. 

         
          (c)       
          Termination upon Disability. If this Agreement is terminated by either
          party as a result of the Executive’s disability, as determined under
          Section 6.2, the Employer will pay the Executive the Executive’s
          Salary in periodic installments according to the Employer’s customary
          payroll practices until six months after the date such termination is effective. 

6 

         
          (d)       
          Termination upon Death. If this Agreement is terminated because of the
          Executive’s death, the Executive will be entitled to receive the
          Executive’s Salary in periodic installments according to the
          Employer’s customary payroll practices until six months after the date such
          termination is effective. 

         
          (e)       
          Termination Upon Notice by the Board of Directors. If the Board of
          Directors provides notice of termination of this Agreement which is not for
          cause, then the Employer will pay the Executive the Executive’s Salary in
          periodic installments according to the Employer’s customary payroll
          practices until six months after the date such termination is effective. 

         
          (f)       
          Benefits. The Executive’s accrual of, or participation in plans
          providing for, the Benefits will cease at the effective date of the termination
          of this Agreement, and the Executive will be entitled to accrued Benefits
          pursuant to such plans only as provided in such plans; provided, that, if this
          Agreement is terminated pursuant to Sections 6.1 (b), (d) or
          (e), then the Executive will be entitled to continue to receive his
          Benefits until six months after the date such termination is effective. The
          Executive will receive, as part of his termination pay pursuant to this
          Section 6, compensation for any unused vacation pay on the date the notice
          of termination is given under this Agreement. 

         
          (g)       
          Termination After Change in Control. Notwithstanding the foregoing, if
          the Executive’s employment is terminated pursuant to Section 6.1(d) or
          6.1(e) at any time within 90 days following a Change in Control, then the
          Employer will pay the Executive the Executive’s salary in periodic
          installments according to the Employer’s customary payroll practices until
          12 months after the date such termination is effective and Executive shall be
          entitled to receive Benefits during the same twelve month period. 

        6.6  
Employment on Reduced Basis Post-Termination of Basic Term. In the event of
termination of Executive’s employment pursuant to Section 6.1(d) or (e) (unless such
termination occurs after a Change in Control), or if Executive remains employed at the end
of the basic term specified in Section 2.2, then Executive shall have the right to elect
to continue to be employed thereafter by the Employer on a reduced basis. If Executive so
elects, Executive’s employment shall be deemed to be continuous with Employer and the
Employment Period and term of this Agreement shall be extended to a date selected by
Executive, but no later than December 31, 2008, subject to early termination by the
Employer solely for an event described in Section 6.1(a), (b) or (c). During this extended
period: (i) the Salary of the Executive shall be reduced to $6,000 per year; (ii)
Executive will not be entitled to the bonus described in Section 3.2 or any benefits
described in Sections 3.3, 4 or 5; (iii) Executive’s options described in Section
3.4, as well as any subsequently issued options to Executive under Company’s
Incentive Stock Option Plan shall continue to be outstanding, unless previously exercised
in full by the Executive; (iv) Executive’s duties shall be limited to providing
consulting services as directed by the Board of Directors which services shall not require
travel by Executive or more than two hours per month of Executive’s time; and (v)
except as provided in this Section 6.6, the other terms and conditions of this Agreement
shall remain in force. 

7 

7.   NON-DISCLOSURE
COVENANT; EMPLOYEE INVENTIONS 

        7.1  
Acknowledgments by the Executive. The Executive acknowledges that (a) during the
Employment Period and as a part of his employment, the Executive will be afforded access
to Confidential Information; (b) public disclosure of such Confidential Information could
have an adverse effect on the Employer and its business; (c) because the Executive
possesses substantial technical expertise and skill with respect to the Employer’s
business, the Employer desires to obtain exclusive ownership of each Employee Invention,
and the Employer will be at a substantial competitive disadvantage if it fails to acquire
exclusive ownership of each Employee Invention; and (d) the provisions of this
Section 7 are reasonable and necessary to prevent the improper use or
disclosure of Confidential Information and to provide the Employer with exclusive
ownership of all Employee Inventions. 

        7.2  
Agreements of the Executive. In consideration of the compensation and benefits to
be paid or provided to the Executive by the Employer under this Agreement, the Executive
covenants as follows: 

         (a)
 Confidentiality. 

          		    (i)       
               During and following the Employment Period, the Executive will hold in
               confidence the Confidential Information and will not disclose it to any person
               except with the specific prior written consent of the Employer or except as
               otherwise expressly permitted by the terms of this Agreement. 

               

          		    (ii)       
               Any trade secrets of the Employer will be entitled to all of the protections and
               benefits under the Colorado Trade Secrets Act, as in effect on the date hereof,
               and as amended from time to time, and any other applicable law. If any
               information that the Employer deems to be a trade secret is found by a court of
               competent jurisdiction not to be a trade secret for purposes of this Agreement,
               such information will, nevertheless, be considered Confidential Information for
               purposes of this Agreement. The Executive hereby waives any requirement that the
               Employer submit proof of the economic value of any trade secret or post a bond
               or other security. 

               

          		    (iii)       
               None of the foregoing obligations and restrictions applies to any part of the
               Confidential Information that the Executive demonstrates was or became generally
               available to the public other than as a result of a disclosure by the Executive. 

               

          		    (iv)       
               The Executive will not remove from the Employer’s premises (except to the
               extent such removal is for purposes of the performance of the Executive’s
               duties at home or while traveling, or except as otherwise specifically
               authorized by the Employer) any document, record, notebook, plan, model,
               component, device, or computer software or code, whether embodied in a disk or
               in any other form (collectively, the “Proprietary Items”). The
               Executive recognizes that, as between the Employer and the Executive, all of the
               Proprietary Items, whether or not developed by the Executive, are the exclusive
               property of the Employer. Upon termination of this Agreement by either party, or
               upon the request of the Employer during the Employment Period, the Executive
               will return to the Employer all of the Proprietary Items in the Executive’s
               possession or subject to the Executive’s control, and the Executive shall
               not retain any copies, abstracts, sketches, or other physical embodiment of any
               of the Proprietary Items. 

               

8 

         
          (b)       
          Employee Inventions. Until this Agreement is terminated, each Employee
          Invention will belong exclusively to the Employer. The Executive acknowledges
          that the Executive’s writing, works of authorship, and other Employee
          Inventions are works made for hire and the property of the Employer, including
          any copyrights, patents, or other intellectual property rights pertaining
          thereto. The Executive covenants that he will promptly: 

		    (i)                        disclose
to the Employer in writing any Employee Invention;  

          		    (ii)       
               assign to the Employer or to a party designated by the Employer, at the
               Employer’s request and without additional compensation, all of the
               Executive’s right to the Employee Invention for the United States and all
               foreign jurisdictions; 

               

          		    (iii)       
               execute and deliver to the Employer such applications, assignments, and other
               documents as the Employer may request in order to apply for and obtain patents
               or other registrations with respect to any Employee Invention in the United
               States and any foreign jurisdictions; 

               

          		    (iv)       
               sign all other papers necessary to carry out the above obligations; and 

               

          		    (v)       
               give testimony and render any other assistance, without expense to the
               Executive, in support of the Employer’s rights to any Employee Invention. 

               

        7.3  
Disputes or Controversies. The Executive recognizes that should a dispute or
controversy arising from or relating to this Agreement be submitted for adjudication to
any court, arbitration panel, or other third party, the preservation of the secrecy of
Confidential Information may be jeopardized. All pleadings, documents, testimony, and
records relating to any such adjudication will be maintained in secrecy and will be
available for inspection by the Employer, the Executive, and their respective attorneys
and experts, who will agree, in advance and in writing, to receive and maintain all such
information in secrecy, except as may be limited by them in writing. 

8.   NON-COMPETITION AND
NON-INTERFERENCE 

        8.1
Acknowledgments by the Executive. The Executive acknowledges that: (a) the services
to be performed by him under this Agreement are of a special, unique, unusual,
extraordinary, and intellectual character; (b) the Employer’s business is expected to
be international in scope and its products are expected to be marketed throughout the
world; (c) the Employer competes with other businesses that are or could be located in any
part of the world; and (d) the provisions of this Section 8 are reasonable and
necessary to protect the Employer’s business. 

9 

        8.2  
Covenants of the Executive. In consideration of the acknowledgments by the
Executive, and in consideration of the compensation and benefits to be paid or provided to
the Executive by the Employer, the Executive covenants that he will not, directly or
indirectly: 

         
          (a)       
          during the Employment Period, except in the course of his employment hereunder,
          and during the Post-Employment Period, engage or invest in, own, manage,
          operate, finance, control, or participate in the ownership, management,
          operation, financing, or control of, be employed by, associated with, or in any
          manner connected with, lend the Executive’s name or any similar name to,
          lend Executive’s credit to or render services or advice to, any business
          whose products or activities involve the use of mobile digital video;
          provided, however, that the Executive may purchase or otherwise acquire
          up to (but not more than) one percent of any class of securities of any
          enterprise (but without otherwise participating in the activities of such
          enterprise) if such securities are listed on any national or regional securities
          exchange or have been registered under Section 12(g) of the Securities Exchange
          Act of 1934; 

         
          (b)       
          whether for the Executive’s own account or for the account of any other
          person, at any time during the Employment Period and the Post-Employment Period,
          solicit business of the same or similar type being carried on by the Employer,
          from any person known by the Executive to be a customer of the Employer, whether
          or not the Executive had personal contact with such person during and by reason
          of the Executive’s employment with the Employer; 

         
          (c)       
          whether for the Executive’s own account or the account of any other person
          (i) at any time during the Employment Period and the Post-Employment
          Period, solicit, employ, or otherwise engage as an employee, independent
          contractor, or otherwise, any person who is or was an employee of the Employer
          at any time during the Employment Period or in any manner induce or attempt to
          induce any employee of the Employer to terminate his employment with the
          Employer; or (ii) at any time during the Employment Period and for two
          years thereafter, interfere with the Employer’s relationship with any
          person, including any person who at any time during the Employment Period was an
          employee, contractor, supplier, or customer of the Employer; or 

         
          (d)       
          at any time during or after the Employment Period, disparage the Employer or any
          of its shareholders, directors, officers, employees, or agents. 

        For
purposes of Section 8.2(a), (b), (c) and (d), the term “Post-Employment
Period”: (i) commences on the date of termination of the Executive’s employment
with the Employer, without regard to the date of employment on a reduced basis under
Section 6.6; and (ii) continues for the six month period thereafter. Provided, that, at
the election of the Employer, such period may be extended for up to 12 additional months
by notice from the Employer to the Executive within 30 days of termination of the
Executive’s employment with the Employer. If Employer exercises this right by
providing timely notice to Executive of Employer’s exercise of this right and the
number of months (not to exceed 12) that Employer has elected to extend the
Post-Employment Period, the Employer shall during each month so extended pay Executive at
a rate equal to the greater of: (i) 66.7% of the Executive’s monthly Salary at
termination; or (ii) the amount payable under Section 6.5 (g);, and shall continue for
such period any Benefits the Executive was receiving at termination. Provided, also, that
in the event of termination after a Change in Control, the term “Post-Employment
Period” in this Section 8.2 shall mean the 12-month period beginning on the date of
termination of the Executive’s employment with the Employer and the Employer shall
have no right to further extend the period pursuant to this Section 8.2. 

10 

        If
any covenant in this Section 8.2 is held to be unreasonable, arbitrary, or against
public policy, such covenant will be considered to be divisible with respect to scope,
time, and geographic area, and such lesser scope, time, or geographic area, or all of
them, as a court of competent jurisdiction may determine to be reasonable, not arbitrary,
and not against public policy, will be effective, binding, and enforceable against the
Executive. 

        The
period of time applicable to any covenant in this Section 8.2 will be extended by
the duration of any violation by the Executive of such covenant. 

        The
Executive will, while the covenant under this Section 8.2 is in effect, give notice
to the Employer, within 10 days after accepting any other employment, of the identity of
the Executive’s employer. The Employer may notify such employer that the Executive is
bound by this Agreement and, at the Employer’s election, furnish such employer with a
copy of this Agreement or relevant portions thereof. 

9.   GENERAL PROVISIONS 

        9.1  
Injunctive Relief and Additional Remedy. The Executive acknowledges that the injury
that would be suffered by the Employer as a result of a breach of the provisions of this
Agreement (including any provision of Sections 7 and 8) would be
irreparable and that an award of monetary damages to the Employer for such a breach would
be an inadequate remedy. Consequently, the Employer will have the right, in addition to
any other rights it may have, to obtain injunctive relief to restrain any breach or
threatened breach or otherwise to specifically enforce any provision of this Agreement,
and the Employer will not be obligated to post bond or other security in seeking such
relief. Without limiting the Employer’s rights under this Section 9 or
any other remedies of the Employer, if the Executive breaches any of the provisions of
Section 7 or 8, the Employer will have the right to cease making any
payments otherwise due to the Executive under this Agreement. 

        9.2  
Covenants of Sections 7 and 8 Are Essential and Independent Covenants. The
covenants by the Executive in Sections 7 and 8 are essential elements
of this Agreement, and without the Executive’s agreement to comply with such
covenants, the Employer would not have entered into this Agreement or employed or
continued the employment of the Executive. The Employer and the Executive have
independently consulted their respective counsel and have been advised in all respects
concerning the reasonableness and propriety of such covenants, with specific regard to the
nature of the business conducted by the Employer. 

        The
Executive’s covenants in Sections 7 and 8 are independent
covenants and the existence of any claim by the Executive against the Employer under this
Agreement or otherwise, will not excuse the Executive’s breach of any covenant in
Section 7 or 8. 

11 

        If
the Executive’s employment hereunder expires or is terminated, this Agreement will
continue in full force and effect as is necessary or appropriate to enforce the covenants
and agreements of the Executive in Sections 7 and 8. 

        9.3  
Offset. The Employer will be entitled to offset against any and all amounts owing
to the Executive under this Agreement the amount of any and all claims that Employer may
have against the Executive. 

        9.4  
Representations and Warranties by the Executive. The Executive represents and
warrants to the Employer that the execution and delivery by the Executive of this
Agreement do not, and the performance by the Executive of the Executive’s obligations
hereunder will not, with or without the giving of notice or the passage of time, or both:
(a) violate any judgment, writ, injunction, or order of any court, arbitrator, or
governmental agency applicable to the Executive; or (b) conflict with, result in the
breach of any provisions of or the termination of, or constitute a default under, any
agreement to which the Executive is a party or by which the Executive is or may be bound. 

        9.5  
Waiver. The rights and remedies of the parties to this Agreement are cumulative and
not alternative. Neither the failure nor any delay by either party in exercising any
right, power, or privilege under this Agreement will operate as a waiver of such right,
power, or privilege, and no single or partial exercise of any such right, power, or
privilege will preclude any other or further exercise of such right, power, or privilege
or the exercise of any other right, power, or privilege. To the maximum extent permitted
by applicable law, (a) no claim or right arising out of this Agreement can be discharged
by one party, in whole or in part, by a waiver or renunciation of the claim or right
unless in writing signed by the other party; (b) no waiver that may be given by a party
will be applicable except in the specific instance for which it is given; and (c) no
notice to or demand on one party will be deemed to be a waiver of any obligation of such
party or of the right of the party giving such notice or demand to take further action
without notice or demand as provided in this Agreement. 

        9.6  
Binding Effect; Delegation of Duties Prohibited. This Agreement shall inure to the
benefit of, and shall be binding upon, the parties hereto and their respective successors,
assigns, heirs, and legal representatives, including any entity with which the Employer
may merge or consolidate or to which all or substantially all of its assets may be
transferred. The duties and covenants of the Executive under this Agreement, being
personal, may not be delegated. 

        9.7  
Notices. All notices, consents, waivers, and other communications under this
Agreement must be in writing and will be deemed to have been duly given when (a) delivered
by hand (with written confirmation of receipt), (b) sent by facsimile (with written
confirmation of receipt), provided that a copy is mailed by registered mail, return
receipt requested, or (c) when received by the addressee, if sent by a nationally
recognized overnight delivery service (receipt requested), in each case to the appropriate
addresses and facsimile numbers set forth below (or to such other addresses and facsimile
numbers as a party may designate by notice to the other parties): 

12 

		
	         If to Employer:       

                               

                               

                               

         If to the Executive:  

                               

                               

                               
	A4S Technologies, Inc.

489 Denver Avenue

Loveland, CO  80537

Fax: (970) 461-0717

Jeffrey McGonegal

1905 West Valley Vista Drive

Castle Rock, CO  80109

Fax:    303/ 660-9583

        9.8  
Entire Agreement; Amendments. This Agreement contains the entire agreement between
the parties with respect to the subject matter hereof and supersedes all prior agreements
and understandings, oral or written, between the parties hereto with respect to the
subject matter hereof, including the Current Agreement. This Agreement may not be amended
orally, but only by an agreement in writing signed by the parties hereto. 

        9.9  
     Governing  Law. This  Agreement  will be governed by the laws of the State of
Colorado  without  regard to conflicts of laws principles. 

        9.10  
Jurisdiction. Any action or proceeding seeking to enforce any provision of, or
based on any right arising out of, this Agreement may be brought against either of the
parties in the courts of the State of Colorado, County of Larimer or, if it has or can
acquire jurisdiction, in the United States District Court located in Denver, Colorado, and
each of the parties consents to the jurisdiction of such courts (and of the appropriate
appellate courts) in any such action or proceeding and waives any objection to venue laid
therein. Process in any action or proceeding referred to in the preceding sentence may be
served on either party anywhere in the world. 

        9.11  
Section Headings, Construction. The headings of Sections in this Agreement are
provided for convenience only and will not affect its construction or interpretation. All
references to “Section” or “Sections” refer to the corresponding
Section or Sections of this Agreement unless otherwise specified. All words used in this
Agreement will be construed to be of such gender or number, as the circumstances require.
Unless otherwise expressly provided, the word “including” does not limit the
preceding words or terms. 

        9.12  
Severability. If any provision of this Agreement is held invalid or unenforceable
by any court of competent jurisdiction, the other provisions of this Agreement will remain
in full force and effect. Any provision of this Agreement held invalid or unenforceable
only in part or degree will remain in full force and effect to the extent not held invalid
or unenforceable. 

        9.13  
Counterparts. This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement. 

        9.14  
    Waiver of Jury Trial.  THE PARTIES  HERETO  HEREBY  WAIVE A JURY TRIAL IN ANY
 LITIGATION  WITH RESPECT TO THIS AGREEMENT. 

13 

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

		
		EMPLOYER:

A4S TECHNOLOGIES, INC.

By: ___________________________

Name: __________________________

Title: _________________________

EXECUTIVE:

________________________________

Jeffrey McGonegal 

14EXHIBIT 10.5

EXHIBIT 10.5 

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT 

        THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made as
of April 1, 2005, by A4S Technologies, Inc., a Colorado corporation (the
“Employer”), and Matthew Siemens, an individual who is a resident of St.
Louis, Missouri (the “Executive”). 

RECITALS 

        WHEREAS,
the Employer is currently employing the Executive pursuant to an Employment Agreement
dated June 1, 2003 (the “Current Agreement”) and the Employer and the Employee
desire to make certain modifications to the Current Agreement; and 

        WHEREAS,
the Employer wishes to continue the Executive’s employment upon the terms and
conditions set forth in this Agreement which amends and restates the Current Agreement,
which Current Agreement will become void on the Effective Date; and 

        WHEREAS,
the Employee wishes to continue such employment upon the terms and conditions set forth
herein. 

AGREEMENT 

        The
parties, intending to be legally bound, agree as follows: 

1.     DEFINITIONS 

        For the
purposes of this Agreement, the following terms have the meanings specified or referred to
in this Section 1. 

        “Agreement”
means this Employment Agreement, as amended, restated or otherwise modified from time to
time. 

        “Basic
Compensation” means Salary and Benefits. 

        “Benefits”
is defined in Section 3.2. 

        “Board
of Directors” means the board of directors of the Employer. 

        “Change
in Control” means (a) the acquisition, directly or indirectly, by any person or
group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934) of
the beneficial ownership of more than 50% of the outstanding securities of the Employer;
(b) a merger or consolidation in which the Employer is not the surviving entity, except
for a transaction the principal purpose of which is to change the state in which the
Employer is incorporated; (c) sale, transfer or other disposition of all or substantially
all of the assets of the Employer; (d) a complete liquidation or dissolution of the
Employer, or (e) any reverse merger in which the Employer is the surviving entity but in
which securities possessing more than 50% of the total combined voting power of the
Employer’s outstanding securities are transferred to a person or persons different
from the person’s holding those securities immediately prior to such merger. 

        “Confidential
Information” means any and all: 

        
          (a)              trade
secrets concerning the business and affairs of the Employer, product
          specifications, data, know-how, formulae, compositions, processes, designs,
          sketches, photographs, graphs, drawings, samples, inventions and ideas, past,
          current, and planned research and development, current and planned
manufacturing           or distribution methods and processes, customer lists, current
and anticipated           customer requirements, price lists, market studies, business
plans, computer           software and programs (including object code and source code),
computer software           and database technologies, systems, structures, and
architectures (and related           formulae, compositions, processes, improvements,
devices, know-how, inventions,           discoveries, concepts, ideas, designs, methods
and information), and any other           information, however documented, that is a
trade secret within the meaning of           the Colorado Trade Secrets Act, as in effect
as of the date hereof and as           amended from time to time.  

        
          (b)              information
concerning the business and affairs of the Employer (which includes           historical
financial statements, financial projections and budgets, historical           and
projected sales, capital spending budgets and plans, the names and           backgrounds
of key personnel and personnel training and techniques and           materials), however
documented; and  

        
          (c)              notes,
analysis, compilations, studies, summaries, and other material prepared           by or
for the Employer containing or based, in whole or in part, on any           information
included in the foregoing.  

        “disability”
is defined in Section 6.2. 

        “Effective
Date” means the date stated in the first paragraph of this Agreement. 

        “Employee
Invention” means any idea, invention, technique, modification, process, or
improvement (whether patentable or not), any industrial design (whether registrable or
not), any mask work, however fixed or encoded, that is suitable to be fixed, embedded or
programmed in a semiconductor product (whether recordable or not), and any work of
authorship (whether or not copyright protection may be obtained for it) created,
conceived, or developed by the Executive, either solely or in conjunction with others,
during the Employment Period, or a period that includes a portion of the Employment
Period, that relates in any way to, or is useful in any manner in the business then being
conducted or proposed to be conducted by the Employer, and any such item created by the
Executive, either solely or in conjunction with others, following termination of the
Executive’s employment with the Employer, that is based upon or uses Confidential
Information. 

        “Employment
Period” means the term of the Executive’s employment under this Agreement. 

        “Fiscal
Year” means the Employer’s fiscal year, as it exists on the Effective Date,
which on the Effective Date is the calendar year. 

 

        “for
cause” is defined in Section 6.3. 

        “for good
reason” is defined in Section 6.4. 

        “person”
means any individual, corporation (including any non-profit corporation), general or
limited partnership, limited liability company, joint venture, estate, trust, association,
organization, or governmental body. 

        “Post-Employment
Period” is defined in Section 8.2. 

        “Proprietary
Items” is defined in Section 7.2(a)(iv). 

        “Salary”
is defined in Section 3.1.  

2. EMPLOYMENT TERMS AND
DUTIES 

        2.1    
Employment.   The Employer hereby employs the Executive, and the Executive hereby
accepts employment by the Employer, upon the terms and conditions set forth in this
Agreement.  

        2.2    
Basic Term.   Subject to the provisions of Section 6, the basic term of
the Executive’s employment under this Agreement will begin on the Effective Date and
end on May 31, 2007.  

        2.3
    
Duties.   The Executive will have such duties as are assigned or delegated to the
Executive by the Board of Directors, and will initially serve as Executive Vice President
of the Employer. The Executive will devote substantially all of his business time,
attention, skill, and energy to the business of the Employer, will use his best efforts
to promote the success of the Employer’s business, and will cooperate fully with the
Board of Directors in the advancement of the best interests of the Employer. Nothing in
this Section 2.3, however, will prevent the Executive from engaging in additional
activities in connection with personal investments and community affairs that are not
inconsistent with the Executive’s duties under this Agreement. In addition, provided
that Executive obtains the advance written consent of the Board of Directors, Executive
may serve on the board of directors of other companies If the Executive is elected as a
director of the Employer or as a director or officer of any of its affiliates, the
Executive will fulfill his duties as such director or officer without additional
compensation.  

3.     COMPENSATION 

        3.1
    
Salary.   The Executive will be paid an annual salary of $125,000, subject to
adjustment as provided below (the “Salary”), which will be payable in
equal periodic installments according to the Employer’s customary payroll practices,
but no less frequently than monthly. The Salary may be reviewed by the Board of
Directors, and may be adjusted upward, but not downward in the sole discretion of the
Board of Directors.  

3 

        3.2
    
Bonus.   The Board of Directors will create a bonus plan for executive officers,
which shall include the Executive. The terms and objectives of the bonus plan will be
determined by the Board of Directors; provided, however, that the bonus plan shall: (a)
provide for quarterly bonuses, with the first measurement quarter to commence October 1,
2005; (b) provide for bonuses to be paid quarterly no later than 45 days after the end of
each quarter, so that the first payment, if any bonus is earned, shall be due on or
before February 14, 2006; and (c) include a provision that if Executive fails to satisfy
the quarterly objectives in any quarter, but does meet the cumulative quarterly
objectives during any calendar year, the Executive will be paid an annual bonus (reduced
by any quarterly bonuses under 3.2(a)) that may have been paid for the four calendar
quarters in question) in an amount equal to at least 50% of his Salary.  

        3.3
    
Benefits.   The Executive will, during the Employment Period, be permitted to
participate in such hospitalization, major medical, and other employee benefit plans of
the Employer that may be in effect from time to time, to the extent the Executive is
eligible under the terms of those plans (collectively, the “Benefits”).  

        3.4
    
Options.   The Executive has been granted options to purchase up to 1,800,000 shares
of the Employer’s common stock at $.19 per share, which vest over a period of four
years, with 25% of the shares vested on each of the first, second, third and fourth
anniversaries of the date of grant. The options have been included in an option agreement
which provides that the options will be exercisable for ten years from the date of grant
of October 29, 2004, unless earlier terminated in connection with termination of the
Employee’s employment with the Employer, including any periods under Section 6.6
of this Agreement. The vesting of all outstanding stock options to purchase the Employer’s
stock owned by the Employee shall be accelerated to become immediately exercisable in
full in the event of a Change in Control.  

4.     FACILITIES AND
EXPENSES. 

        The
Employer will furnish the Executive office space, equipment, supplies, and such other
facilities and personnel, as the Employer deems necessary or appropriate for the
performance of the Executive’s duties under this Agreement. The Employer will pay the
Executive’s dues in such professional societies and organizations as the Board of
Directors deems appropriate, and will pay on behalf of the Executive (or reimburse the
Executive for) reasonable expenses incurred by the Executive at the request of, or on
behalf of, the Employer in the performance of the Executive’s duties pursuant to this
Agreement, and in accordance with the Employer’s employment policies, including
reasonable expenses incurred by the Executive in attending conventions, seminars, and
other business meetings, in appropriate business entertainment activities, and for
promotional expenses. The Executive must file expense reports with respect to such
expenses in accordance with the Employer’s policies. All expenses shall be reimbursed
within 30 days of submission of appropriate expense reports. 

        
          (a)              Employer
may from time to time during the term of this Agreement request that           Executive
relocate for the benefit of the Company and;  

        
          (b)              Upon
any request made by Employer, Executive, at his sole discretion shall have           a
minimum of thirty days to decide to accept or reject such relocation request.
          If Executive declines such request and Company either terminates the Agreement,
          or revises substantial terms of the Agreement, then Executive shall have the
          right to terminate the Agreement for Good Reason under Section 6.5 (a), and.  

4 

        
          (c)              If
Company requests Executive to relocate and Executive agree to terms of such
          relocation, then Company shall reimburse Executive for Executive’s
          reasonable out-of-pocket expenses incurred in the relocation.  

        
          (d)  

     5.    
          VACATIONS AND HOLIDAYS 

        The
Executive will be entitled to three weeks’ paid vacation each Fiscal Year in
accordance with the vacation policies of the Employer in effect for its executive officers
from time to time. Such policies may include provisions for carryover of unused vacation
as well as requirements to secure advance approval for carryover of unused vacation hours.
The Executive will also be entitled to the paid holidays set forth in the Employer’s
policies. If the Executive is unable to perform his duties for physical or mental reasons,
then Employer shall provide Executive with his Basic Compensation until Executive’s
employment is terminated due to the disability of the Executive 

6.     TERMINATION  

        6.1  
Events of Termination.   The Employment Period, the Executive’s Basic
Compensation, and any and all other rights of the Executive under this Agreement or
otherwise as an employee of the Employer will terminate (except as otherwise provided in
this Section 6):  

        
          (a)              upon
the death of the Executive;  

        
          (b)              upon
the disability of the Executive (as defined in Section 6.2)           immediately
upon notice from either party to the other;  

        
          (c)              for
cause (as defined in Section 6.3), as determined by the Board of
          Directors immediately upon notice from the Employer to the Executive, or at
such           later time as such notice may specify;  

        
          (d)              for
good reason (as defined in Section 6.4) upon not less than 30           days’ prior
notice from the Executive to the Employer, which notice           specifies the Executive’s
intent to terminate this Agreement and the           factual basis for such termination,
it being understood that if the Employer can           cure the problem giving rise to
such termination within such 30-day period, the           termination will not occur; or  

        
          (e)              upon
notice by the Board of Directors.  

5 

        6.2  
Definition of “Disability.”   For purposes of Section 6, the
Executive will be deemed to have a “disability” if, for physical or mental
reasons, the Executive is unable to perform the Executive’s duties under this
Agreement for 90 consecutive days, or 120 days during any 12-month period, as determined
in accordance with this Section 6.2. The disability of the Executive will be
determined by a medical doctor selected by written agreement of the Employer and the
Executive upon the request of either party by notice to the other. If the Employer and
the Executive cannot agree on the selection of a medical doctor, each of them will select
a medical doctor and the two medical doctors will select a third medical doctor who will
determine whether the Executive has a disability. The determination of the medical doctor
selected under this Section 6.2 will be binding on both parties. The Executive
must submit to a reasonable number of examinations by the medical doctor making the
determination of disability under this Section 6.2, and the Executive hereby
authorizes the disclosure and release to the Employer of such determination and all
supporting medical records. If the Executive is not legally competent, the Executive’s
legal guardian or duly authorized attorney-in-fact will act in the Executive’s
stead, under this Section 6.2, for the purposes of submitting the Executive to the
examinations, and providing the authorization of disclosure, required under this Section
6.2.  

        6.3  
Definition of “For Cause.”   For purposes of Section 6, the
phrase “for cause”means: (a) the Executive’s material breach of this
Agreement; (b) the Executive’s willful failure to adhere to any written Employer
policy if the Executive has been given a reasonable opportunity to comply with such
policy or cure his failure to comply (which reasonable opportunity must be granted during
the 10-day period preceding termination of this Agreement); (c) the appropriation (or
attempted appropriation) of a material business opportunity of the Employer, including
attempting to secure or securing any personal profit in connection with any transaction
entered into on behalf of the Employer; (d) the misappropriation (or attempted
misappropriation) of any of the Employer’s funds or property; or (e) the conviction
of, the indictment for (or its procedural equivalent), or the entering of a guilty plea
or plea of no contest with respect to, a felony.  

        6.4  
Definition of “For Good Reason.”   For purposes of Section 6,
the phrase “for good reason” means: (a) the Employer’s material breach of
this Agreement; or (b) a material reduction in Executive’s position, duties and
responsibilities from those described in Section 2.3 of this Agreement.  

        6.5  
Termination Pay.   Effective upon the termination of this Agreement during the term
specified in Section 2.2, the Employer will be obligated to pay the Executive (or, in the
event of his death, his designated beneficiary as defined below) only such compensation
as is provided in this Section 6.5, and in lieu of all other amounts and in
settlement and complete release of all claims the Executive may have against the Employer
(as set forth in a valid release of the Employer and its agents and affiliates signed by
the Executive), other than the right, if any, to continue to be employed on a reduced
basis as set forth in Section 6.6. For purposes of this Section 6.5, the
Executive’s designated beneficiary will be such individual beneficiary or trust,
located at such address, as the Executive may designate by notice to the Employer from
time to time or, if the Executive fails to give notice to the Employer of such a
beneficiary, the Executive’s estate. Notwithstanding the preceding sentence, the
Employer will have no duty, in any circumstances, to attempt to open an estate on behalf
of the Executive, to determine whether any beneficiary designated by the Executive is
alive or to ascertain the address of any such beneficiary, to determine the existence of
any trust, to determine whether any person or entity purporting to act as the Executive’s
personal representative (or the trustee of a trust established by the Executive) is duly
authorized to act in that capacity, or to locate or attempt to locate any beneficiary,
personal representative, or trustee.  

6 

        
          (a)    Termination
by the Executive for Good Reason. If the Executive terminates           this
Agreement for good reason, the Employer will pay the Executive the           Executive’s
Salary in periodic installments according to the           Employer’s customary
payroll practices until six months after the date such           termination is
effective.  

        
          (b)    Termination
by the Employer for Cause. If the Employer terminates this           Agreement for
cause, the Executive will be entitled to receive his Salary only           through the
date such termination is effective.  

        
          (c)    Termination
upon Disability. If this Agreement is terminated by either           party as a
result of the Executive’s disability, as determined under Section 6.2, the
Employer will pay the Executive the Executive’s           Salary in periodic
installments according to the Employer’s customary           payroll practices until
six months after the date such termination is effective.  

        
          (d)    Termination
upon Death. If this Agreement is terminated because of the           Executive’s
death, the Executive will be entitled to receive the           Executive’s Salary in
periodic installments according to the           Employer’s customary payroll
practices until six months after the date such           termination is effective.  

        
          (e)    Termination
Upon Notice by the Board of Directors. If the Board of           Directors provides
notice of termination of this Agreement which is not for           cause, then the
Employer will pay the Executive the Executive’s Salary in           periodic
installments according to the Employer’s customary payroll           practices until
six months after the date such termination is effective.  

        
          (f)    Benefits.
The Executive’s accrual of, or participation in plans           providing for, the
Benefits will cease at the effective date of the termination           of this Agreement,
and the Executive will be entitled to accrued Benefits           pursuant to such plans
only as provided in such plans; provided, that, if this           Agreement is terminated
pursuant to Sections 6.1(b), (d) or (e), then the Executive will be
entitled to continue to receive his           Benefits until six months after the date
such termination is effective. The           Executive will receive, as part of his
termination pay pursuant to this           Section 6, compensation for any unused
vacation pay on the date the notice           of termination is given under this
Agreement.  

        
          (g)    Termination
After Change in Control. Notwithstanding the foregoing, if           the Executive’s
employment is terminated pursuant to Section 6.1(d) or           6.1(e) at any time
within 90 days following a Change in Control, then the           Employer will pay the
Executive the Executive’s salary in periodic           installments according to the
Employer’s customary payroll practices until           12 months after the date such
termination is effective and Executive shall be           entitled continue to receive
Benefits during the same 12 month period.  

        6.6   
Employment on Reduced Basis Post-Termination of Basic Term.   In the event of
termination of Executive’s employment pursuant to Section 6.1(d) or (e) (unless such
termination occurs after a Change in Control), or if Executive remains employed at the
end of the basic term specified in Section 2.2, then Executive shall have the right to
elect to continue to be employed thereafter by the Employer on a reduced basis. If
Executive so elects, Executive’s employment shall be deemed to be continuous with
Employer and the Employment Period and term of this Agreement shall be extended to a date
selected by Executive, but no later than December 31, 2008, subject to early termination
by the Employer solely for an event described in Section 6.1(a), (b) or (c). During this
extended period: (i) the Salary of the Executive shall be reduced to $6,000 per year;
(ii) Executive will not be entitled to the bonus described in Section 3.2 or any benefits
described in Sections 3.3, 4 or 5; (iii) Executive’s options described in Section
3.4, as well as any subsequently issued options to Executive under Company’s
Incentive Stock Option Plan shall continue to be outstanding, unless previously exercised
in full by the Executive; (iv) Executive’s duties shall be limited to providing
consulting services as directed by the Board of Directors which services shall not
require travel by Executive or more than two hours per month of Executive’s time;
and (v) except as provided in this Section 6.6, the other terms and conditions of this
Agreement shall remain in force.  

7 

7.     NON-DISCLOSURE
COVENANT; EMPLOYEE INVENTIONS 

        7.1   Acknowledgments
by the Executive.   The Executive acknowledges that (a) during the
Employment Period and as a part of his employment, the Executive will be afforded access
to Confidential Information; (b) public disclosure of such Confidential Information could
have an adverse effect on the Employer and its business; (c) because the Executive
possesses substantial technical expertise and skill with respect to the Employer’s
business, the Employer desires to obtain exclusive ownership of each Employee Invention,
and the Employer will be at a substantial competitive disadvantage if it fails to acquire
exclusive ownership of each Employee Invention; and (d) the provisions of this Section 7 are
reasonable and necessary to prevent the improper use or disclosure of Confidential
Information and to provide the Employer with exclusive ownership of all Employee
Inventions.  

        7.2   
Agreements of the Executive.   In consideration of the compensation and benefits to
be paid or provided to the Executive by the Employer under this Agreement, the Executive
covenants as follows:  

        
          (a)    Confidentiality.  

	 	        (i)
         During and following the Employment Period, the Executive will hold in
          confidence the Confidential Information and will not disclose it to any person
          except with the specific prior written consent of the Employer or except as
          otherwise expressly permitted by the terms of this Agreement.  

	 	        (ii)          Any
trade secrets of the Employer will be entitled to all of the protections and
          benefits under the Colorado Trade Secrets Act, as in effect on the date hereof,
          and as amended from time to time, and any other applicable law. If any
          information that the Employer deems to be a trade secret is found by a court of
          competent jurisdiction not to be a trade secret for purposes of this Agreement,
          such information will, nevertheless, be considered Confidential Information for
          purposes of this Agreement. The Executive hereby waives any requirement that
the           Employer submit proof of the economic value of any trade secret or post a
bond           or other security.  

8 

	 	        (iii)            None
of the foregoing obligations and restrictions applies to any part of the
          Confidential Information that the Executive demonstrates was or became
generally           available to the public other than as a result of a disclosure by the
Executive.  

	 	        (iv)            The
Executive will not remove from the Employer’s premises (except to the
          extent such removal is for purposes of the performance of the Executive’s
          duties at home or while traveling, or except as otherwise specifically
          authorized by the Employer) any document, record, notebook, plan, model,
          component, device, or computer software or code, whether embodied in a disk or
          in any other form (collectively, the “Proprietary Items”). The
          Executive recognizes that, as between the Employer and the Executive, all of
the           Proprietary Items, whether or not developed by the Executive, are the
exclusive           property of the Employer. Upon termination of this Agreement by
either party, or           upon the request of the Employer during the Employment Period,
the Executive           will return to the Employer all of the Proprietary Items in the
Executive’s           possession or subject to the Executive’s control, and the
Executive shall           not retain any copies, abstracts, sketches, or other physical
embodiment of any           of the Proprietary Items.  

        
          (b)  Employee
Inventions. Until this Agreement is terminated, each Employee           Invention
will belong exclusively to the Employer. The Executive acknowledges           that the
Executive’s writing, works of authorship, and other Employee           Inventions
are works made for hire and the property of the Employer, including           any
copyrights, patents, or other intellectual property rights pertaining           thereto.
The Executive covenants that he will promptly:  

	 	        (i)            disclose
to the Employer in writing any Employee Invention;  

	 	        (ii)            assign
to the Employer or to a party designated by the Employer, at the           Employer’s
request and without additional compensation, all of the           Executive’s right
to the Employee Invention for the United States and all           foreign jurisdictions;  

	 	        (iii)            execute
and deliver to the Employer such applications, assignments, and other           documents
as the Employer may request in order to apply for and obtain patents           or other
registrations with respect to any Employee Invention in the United           States and
any foreign jurisdictions;  

	 	        (iv)            sign
all other papers necessary to carry out the above obligations; and  

	 	        (v)            give
testimony and render any other assistance, without expense to the           Executive, in
support of the Employer’s rights to any Employee Invention.  

        7.3   
Disputes or Controversies.   The Executive recognizes that should a dispute or
controversy arising from or relating to this Agreement be submitted for adjudication to
any court, arbitration panel, or other third party, the preservation of the secrecy of
Confidential Information may be jeopardized. All pleadings, documents, testimony, and
records relating to any such adjudication will be maintained in secrecy and will be
available for inspection by the Employer, the Executive, and their respective attorneys
and experts, who will agree, in advance and in writing, to receive and maintain all such
information in secrecy, except as may be limited by them in writing.  

9 

8.     NON-COMPETITION AND
NON-INTERFERENCE 

        8.1   
Acknowledgments by the Executive.   The Executive acknowledges that: (a) the
services to be performed by him under this Agreement are of a special, unique, unusual,
extraordinary, and intellectual character; (b) the Employer’s business is expected
to be international in scope and its products are expected to be marketed throughout the
world; (c) the Employer competes with other businesses that are or could be located in
any part of the world; and (d) the provisions of this Section 8 are
reasonable and necessary to protect the Employer’s business.  

        8.2   
Covenants of the Executive.   In consideration of the acknowledgments by the
Executive, and in consideration of the compensation and benefits to be paid or provided
to the Executive by the Employer, the Executive covenants that he will not, directly or
indirectly:  

        
          (a)              during
the Employment Period, except in the course of his employment hereunder,           and
during the Post-Employment Period, engage or invest in, own, manage,           operate,
finance, control, or participate in the ownership, management,           operation,
financing, or control of, be employed by, associated with, or in any           manner
connected with, lend the Executive’s name or any similar name to,           lend
Executive’s credit to or render services or advice to, any business           whose
products or activities involve the use of mobile digital video; provided, however,
that the Executive may purchase or otherwise           acquire up to (but not more than)
one percent of any class of securities of any           enterprise (but without otherwise
participating in the activities of such           enterprise) if such securities are
listed on any national or regional securities           exchange or have been registered
under Section 12(g) of the Securities Exchange           Act of 1934;  

        
          (b)              whether
for the Executive’s own account or for the account of any other           person, at
any time during the Employment Period and the Post-Employment Period,           solicit
business of the same or similar type being carried on by the Employer,           from any
person known by the Executive to be a customer of the Employer, whether           or not
the Executive had personal contact with such person during and by reason           of the
Executive’s employment with the Employer;  

        
          (c)              whether
for the Executive’s own account or the account of any other person           (i) at
any time during the Employment Period and the Post-Employment           Period, solicit,
employ, or otherwise engage as an employee, independent           contractor, or
otherwise, any person who is or was an employee of the Employer           at any time
during the Employment Period or in any manner induce or attempt to           induce any
employee of the Employer to terminate his employment with the           Employer; or (ii) at
any time during the Employment Period and for two           years thereafter, interfere
with the Employer’s relationship with any           person, including any person who
at any time during the Employment Period was an           employee, contractor, supplier,
or customer of the Employer; or  

        
          (d)              at
any time during or after the Employment Period, disparage the Employer or any
          of its shareholders, directors, officers, employees, or agents.  

10 

        For
purposes of Section 8.2(a), (b), (c) and (d), the term “Post-Employment
Period”: (i) commences on the date of termination of the Executive’s employment
with the Employer, without regard to the date of employment on a reduced basis under
Section 6.6; and (ii) continues for the six month period thereafter. Provided, that, at
the election of the Employer, such period may be extended for up to 12 additional months
by notice from the Employer to the Executive within 30 days of termination of the
Executive’s employment with the Employer. If Employer exercises this right by
providing timely notice to Executive of Employer’s exercise of this right and the
number of months (not to exceed 12) that Employer has elected to extend the
Post-Employment Period, the Employer shall during each month so extended pay Executive at
a rate equal to the greater of: (i) 66.7% of the Executive’s monthly Salary at
termination; or (ii) the amount payable under Section 6.5 (g); and shall continue for such
period any Benefits the Executive was receiving at termination. Provided, also, that in
the event of termination after a Change in Control, the term “Post-Employment
Period” in this Section 8.2 shall mean the 12-month period beginning on the date of
termination of the Executive’s employment with the Employer and the Employer shall
have no right to further extend the period pursuant to this Section 8.2. 

        If
any covenant in this Section 8.2 is held to be unreasonable, arbitrary, or against
public policy, such covenant will be considered to be divisible with respect to scope,
time, and geographic area, and such lesser scope, time, or geographic area, or all of
them, as a court of competent jurisdiction may determine to be reasonable, not arbitrary,
and not against public policy, will be effective, binding, and enforceable against the
Executive. 

        The
period of time applicable to any covenant in this Section 8.2 will be extended by
the duration of any violation by the Executive of such covenant. 

        The
Executive will, while the covenant under this Section 8.2 is in effect, give notice
to the Employer, within 10 days after accepting any other employment, of the identity of
the Executive’s employer. The Employer may notify such employer that the Executive is
bound by this Agreement and, at the Employer’s election, furnish such employer with a
copy of this Agreement or relevant portions thereof. 

9.     GENERAL PROVISIONS 

        9.1   
Injunctive Relief and Additional Remedy.   The Executive acknowledges that the
injury that would be suffered by the Employer as a result of a breach of the provisions
of this Agreement (including any provision of Sections 7 and 8) would
be irreparable and that an award of monetary damages to the Employer for such a breach
would be an inadequate remedy. Consequently, the Employer will have the right, in
addition to any other rights it may have, to obtain injunctive relief to restrain any
breach or threatened breach or otherwise to specifically enforce any provision of this
Agreement, and the Employer will not be obligated to post bond or other security in
seeking such relief. Without limiting the Employer’s rights under this Section 9 or
any other remedies of the Employer, if the Executive breaches any of the provisions of Section 7
or 8, the Employer will have the right to cease making any payments otherwise
due to the Executive under this Agreement.  

11 

        9.2   
Covenants of Sections 7 and 8 Are Essential and Independent Covenants.   The
covenants by the Executive in Sections 7 and 8 are essential elements
of this Agreement, and without the Executive’s agreement to comply with such
covenants, the Employer would not have entered into this Agreement or employed or
continued the employment of the Executive. The Employer and the Executive have
independently consulted their respective counsel and have been advised in all respects
concerning the reasonableness and propriety of such covenants, with specific regard to
the nature of the business conducted by the Employer.  

        The
Executive’s covenants in Sections 7 and 8 are independent
covenants and the existence of any claim by the Executive against the Employer under this
Agreement or otherwise, will not excuse the Executive’s breach of any covenant in
Section 7 or 8. 

        If
the Executive’s employment hereunder expires or is terminated, this Agreement will
continue in full force and effect as is necessary or appropriate to enforce the covenants
and agreements of the Executive in Sections 7 and 8. 

        9.3   
Offset.   The Employer will be entitled to offset against any and all amounts owing
to the Executive under this Agreement the amount of any and all claims that Employer may
have against the Executive.  

        9.4   
Representations and Warranties by the Executive.   The Executive represents and
warrants to the Employer that the execution and delivery by the Executive of this
Agreement do not, and the performance by the Executive of the Executive’s
obligations hereunder will not, with or without the giving of notice or the passage of
time, or both: (a) violate any judgment, writ, injunction, or order of any court,
arbitrator, or governmental agency applicable to the Executive; or (b) conflict with,
result in the breach of any provisions of or the termination of, or constitute a default
under, any agreement to which the Executive is a party or by which the Executive is or
may be bound.  

        9.5   
Waiver.   The rights and remedies of the parties to this Agreement are cumulative
and not alternative. Neither the failure nor any delay by either party in exercising any
right, power, or privilege under this Agreement will operate as a waiver of such right,
power, or privilege, and no single or partial exercise of any such right, power, or
privilege will preclude any other or further exercise of such right, power, or privilege
or the exercise of any other right, power, or privilege. To the maximum extent permitted
by applicable law, (a) no claim or right arising out of this Agreement can be discharged
by one party, in whole or in part, by a waiver or renunciation of the claim or right
unless in writing signed by the other party; (b) no waiver that may be given by a party
will be applicable except in the specific instance for which it is given; and (c) no
notice to or demand on one party will be deemed to be a waiver of any obligation of such
party or of the right of the party giving such notice or demand to take further action
without notice or demand as provided in this Agreement.  

        9.6   
Binding Effect; Delegation of Duties Prohibited.   This Agreement shall inure to the
benefit of, and shall be binding upon, the parties hereto and their respective
successors, assigns, heirs, and legal representatives, including any entity with which
the Employer may merge or consolidate or to which all or substantially all of its assets
may be transferred. The duties and covenants of the Executive under this Agreement, being
personal, may not be delegated.  

12 

        9.7   
Notices.   All notices, consents, waivers, and other communications under this
Agreement must be in writing and will be deemed to have been duly given when (a)
delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with
written confirmation of receipt), provided that a copy is mailed by registered mail,
return receipt requested, or (c) when received by the addressee, if sent by a nationally
recognized overnight delivery service (receipt requested), in each case to the
appropriate addresses and facsimile numbers set forth below (or to such other addresses
and facsimile numbers as a party may designate by notice to the other parties):  

		
	         If to Employer:       

                               

                               

                               

         If to the Executive:  

                               

                               

                               
	A4S Technologies, Inc.

489 Denver Avenue

Loveland, CO  80537

Fax: (970) 461-0717

Matthew Siemens

16755 Clayton Road

Wildwood, MO  63011

Fax:

        9.8   
Entire Agreement; Amendments.   This Agreement contains the entire agreement between
the parties with respect to the subject matter hereof and supersedes all prior agreements
and understandings, oral or written, between the parties hereto with respect to the
subject matter hereof, including the Current Agreement. This Agreement may not be amended
orally, but only by an agreement in writing signed by the parties hereto.  

        9.9   
Governing Law.   This Agreement will be governed by the laws of the State of
Colorado without regard to conflicts of laws principles.  

        9.10
   
Jurisdiction.   Any action or proceeding seeking to enforce any provision of, or
based on any right arising out of, this Agreement may be brought against either of the
parties in the courts of the State of Colorado, County of Larimer or, if it has or can
acquire jurisdiction, in the United States District Court located in Denver, Colorado,
and each of the parties consents to the jurisdiction of such courts (and of the
appropriate appellate courts) in any such action or proceeding and waives any objection
to venue laid therein. Process in any action or proceeding referred to in the preceding
sentence may be served on either party anywhere in the world.  

        9.11
   
Section Headings, Construction.   The headings of Sections in this Agreement are
provided for convenience only and will not affect its construction or interpretation. All
references to “Section” or “Sections” refer to the corresponding
Section or Sections of this Agreement unless otherwise specified. All words used in this
Agreement will be construed to be of such gender or number, as the circumstances require.
Unless otherwise expressly provided, the word “including” does not limit the
preceding words or terms.  

13 

        9.12   
Severability.    If any provision of this Agreement is held invalid or unenforceable
by any court of competent jurisdiction, the other provisions of this Agreement will
remain in full force and effect. Any provision of this Agreement held invalid or
unenforceable only in part or degree will remain in full force and effect to the extent
not held invalid or unenforceable.  

        9.13   
Counterparts.    This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of which, when
taken together, will be deemed to constitute one and the same agreement.  

        9.14   
Waiver of Jury Trial.   THE PARTIES HERETO HEREBY WAIVE A JURY TRIAL IN ANY
LITIGATION WITH RESPECT TO THIS AGREEMENT.  

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

		
		EMPLOYER:

A4S TECHNOLOGIES, INC.

By: /s/ Thomas R. Marinelli 

Name: Thomas R. Marinelli 

Title: Chief Executive Officer

EXECUTIVE:

/s/ Matthew Siemens 

Matthew Siemens 

14

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