Document:

Unassociated Document

     

    Exhibit
10.1

     

    
      EMPLOYMENT
AGREEMENT

       

      This
Employment Agreement (the “Agreement”) is made and entered into on this 17th day of
July, 2009, by and between Cyalume Technologies, Inc., a Delaware Corporation
(the “Company”), and Edgar E. Cranor, (the “Employee”).

       

      WHEREAS,
the Company desires to employ Employee as Technology Vice President of the
Company, and Employee desires to accept such employment upon the terms and
conditions set forth herein.

       

      NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained
herein, the parties hereto agree as follows:

       

      
        	
                1.

              	
                TERM.  This Agreement shall be for an
      initial term of three years, retroactive to May 1, 2009. The Agreement
      shall continue for successive one-year periods thereafter unless and until
      terminated by either party upon thirty days’ written notice prior to the
      Agreement’s anniversary/expiration date, or until terminated pursuant to
      Section 8 of this Agreement.

              

      

       

      
        	
                2.

              	
                DUTIES OF
      EMPLOYEE.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Duties. Employee shall be employed as Technology
      Vice President.  Employee’s duties shall be such executive,
      managerial, administrative, and professional duties as are commensurate
      with the position of Technology Vice President, and as shall be assigned
      by the President and Chief Operating Officer or the Board of Directors of
      the Company, or by their authorized designees. The Employee may delegate
      duties to other employees of the Company as he reasonably determines is in
      the best interest of the Company, consistent with the general authority
      and power given to him hereunder.  The principal place of
      employment of Employee shall be at the Company’s executive offices in West
      Springfield,
  Massachusetts.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Exclusive
      Employment. Employee shall devote the whole of his business
      time, attention and abilities to carrying out his duties
      hereunder.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Loyal and
      Conscientious Performance.
      Employee agrees that to the best of his ability and experience, and in
      compliance with all applicable laws and the Company’s policies,
      Certificate of Incorporation and Bylaws, as they may be amended from time
      to time, he will at all times loyally and conscientiously perform all the
      duties and obligations required of him by the terms of this Agreement.
      Employee further agrees he shall use his best efforts to promote the
      interests and reputation of the Company and its affiliates and not do
      anything which is to the detriment of the Company or its
      affiliates.

              

      

       

      
        	
                3.

              	
                COMPENSATION AND
      BENEFITS.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Salary.
      For all the services to be rendered by Employee in any capacity hereunder,
      the Company shall pay Employee, in equal installments consistent with the
      Company’s practices for its employees, salary and compensation as set
      forth in Schedule 1 attached to this
      Agreement and incorporated herein. The Company shall have the ability to
      withhold from the compensation otherwise due to Employee under this
      Agreement any amounts required to be withheld from compensation from time
      to time under applicable
  law.

              

      

        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (b)

              	
                Severance
      Benefits.

              

      

       

      
        	
                 
      

              	
                (i)

              	
                In
      the event Employee’s employment with the Company is terminated by the
      Company other than as a result of death, disability (as defined in Section
      8(a)(ii)), retirement or for “cause” (as defined in Section 8(a)(iii)), or
      if Employee’s employment with the Company is terminated by Employee for
      the reason set forth in Section 8(d), and upon execution by Employee of a
      separation agreement prepared by the Company, the Company will pay
      Employee, at normal payroll intervals for twelve (12) months, a sum equal
      to the Employee’s annual Base Salary in effect at the time of termination
      hereunder, less applicable deductions and
  withholdings.

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                If,
      upon a Change of Control, or as a consequence of the Change of Control
      prior to the Change of Control, or within twelve (12) months following a
      Change of Control, the Employee’s employment is terminated without “cause”
      or if the Employee terminates his employment for Good Reason, and upon
      execution by Employee of a separation agreement prepared by the Company,
      the Employee will be entitled to receive, in addition to the severance
      benefit set forth in Section 3(b)(i), a severance benefit equal to twelve
      (12) months of his Base Salary, less applicable deductions and
      withholdings, payable in full on the date of Employee’s
      termination.  For purposes of this provision, the following
      definitions will apply:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                A
      “Change of Control shall mean (1) any consolidation, merger or
      amalgamation of the Company with or into any other corporation whereby the
      voting shareholders of the Company immediately prior to such event receive
      less than fifty percent (50%) of the voting shares of the consolidated,
      merged or amalgamated corporation; (2) a sale by the Company of all or
      substantially all of the Company’s assets; or (3) any transaction or
      series of transactions having, directly or indirectly, the same effect as
      any of the foregoing.

              

      

       

      
        	
                 
      

              	
                (B)

              	
                A
      termination for “cause” shall mean those reasons defined in Sections
      8(a)(i), 8(a)(ii) and 8(a)(iii).

              

      

       

      
        	
                 
      

              	
                (C)

              	
                A
      termination for “Good Reason” shall mean (1) a material diminution in the
      Employee’s title or duties or assignment to the Employee of materially
      inconsistent duties; (2) a reduction in the Employee’s Base Salary except
      for reductions applicable to all management; or (3) a relocation of
      Employee’s principal place of employment of a distance in excess of fifty
      (50) miles unless such relocation is effected at the request of Employee
      or with the Employee’s approval.  There shall be no termination
      for Good Reason without written notice from the Employee describing the
      basis for the termination and the Company (or a successor) having a
      reasonable period to cure.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (iii)

              	
                In
      the event that Employee elects to terminate this Agreement for any reason
      other than that set forth in Sections 3(b)(ii)(C) or  8(d), or
      in the event that this Agreement is terminated due to Employee’s death or
      disability, the Company shall not be obligated to pay to Employee any
      severance payments whatsoever and Employee shall be entitled only to that
      Base Salary and those benefits which he has earned through the date of
      such termination.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Fringe
      Benefits.
      So long as Employee remains in the employ of the Company, Employee shall
      be provided those benefits set forth in Schedule 1 to this Agreement. Employee
      shall also receive such additional benefits as may be authorized from time
      to time by the Company’s Board of
      Directors.

              

      

       

      
        	
                4.

              	
                NONCOMPETITION BY
      EMPLOYEE.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                During
      the term of this Agreement and for a period of two (2) years after
      Employee has ceased to be employed by Company for any reason, Employee
      shall not, without the prior written consent of a duly authorized officer
      of Company, directly or indirectly (i) engage in the business of, or (ii)
      assist or have an interest in (whether as proprietor, partner, investor,
      stockholders, officer, director or any type of principal whatsoever), or
      (iii) enter the employment of or act as an agent, advisor, or consultant
      to any person, firm, partnership, association, corporation, business
      organization, entity or enterprise that is, or is to become, directly or
      indirectly, engaged in any business actually or potentially competitive
      with that of Company in any area or territory in which Company offers its
      services or products.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                During
      the term of this Agreement, and for a period of two (2) years after
      Employee has ceased to be employed by Company for any reason, Employee
      shall not, without the prior written consent of a duly authorized officer
      of Company, solicit from any person, company, firm or organization, or any
      affiliate of the foregoing, which was or is a client or associated firm of
      Company or which Company was soliciting as a client or associated firm of
      Company during any of the twelve (12) months immediately preceding the
      termination or expiration of the Agreement, any business substantially
      similar to that done by Company, including but not limited to any business
      Employee was soliciting or on which he worked while employed by
      Company.

              

      

       

      
        	
                5.

              	
                CONFIDENTIALITY. Employee acknowledges, understands and agrees
      that all trade secrets and information relating to the business of the
      Company and/or its affiliates, including without limitation, procedures,
      product information, manufacturing techniques or processes, expertise,
      records, customer or prospect lists and information, vendor lists and
      information, supplier lists and information, internal operating forms,
      financial information or accounting methods, systems, books, manuals,
      employee information, any confidential information concerning the
      business, the Company, its affiliates, or the business, policies or
      operations of the business, the Company or its affiliates which Employee
      may have learned, possessed or controlled on or prior to the date hereof
      or which Employee may learn, possess or control during the term of
      Employee’s continued employment by the Company or any of its affiliates
      (as an employee, consultant, agent or otherwise) (collectively, “Trade
      Secrets”) are confidential and shall remain the sole and exclusive
      property of the Company and its affiliates. Trade Secrets include both
      written information and information not reduced to writing. Except as may
      be required pursuant to any law or the order of a court, or except as may
      be public knowledge (which shall not have become public knowledge as a
      result of any action of Employee), Employee shall not, at any time,
      retain, duplicate, remove from the business premises of Company or any of
      its affiliates, make use of, other than in the ordinary course of
      fulfilling his duties as an employee of the Company, divulge or otherwise
      disclose, directly or indirectly, any Trade Secrets. Employee shall not
      publish or disclose, and shall exercise his best efforts to prevent others
      from publishing or disclosing, any Trade Secrets and he shall not use or
      attempt to use any such knowledge or information which he may have or
      acquire in any manner which may injure or cause loss, whether directly or
      indirectly, to the Company or its affiliates or use his personal knowledge
      or influence over any customers, clients, suppliers or contractors of the
      Company or its affiliates so as to take advantage of the Company’s or its
      affiliate’s trade or business connections or utilize information
      confidentially obtained by
him.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	
                6.

              	
                NON-SOLICITATION.
      Employee hereby covenants and agrees that, at all times during his
      employment with the Company and for a period of two (2) years immediately
      following his termination for any reason, Employee shall not employ or
      seek to employ any person employed at the time by the Company or any of
      its affiliates, or otherwise engage or entice, either directly or
      indirectly, such person to leave such
      employment.

              

      

       

      
        	
                7.

              	
                VIOLATION OF
      AGREEMENT.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                The
      restrictions set forth in Sections 4, 5 and 6 shall extend to any and all
      activities of the Employee, whether alone or together with or on behalf of
      or through any other person or
entity.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Employee’s
      obligations under Sections 4, 5 and 6 shall survive termination of this
      Agreement and of Employee’s employment with the
  Company.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Employee
      acknowledges that the restrictions contained in Sections 4, 5 and 6, in
      view of the nature of the business in which Company is engaged, are
      reasonable and necessary to protect the legitimate interests of
      Company.  Employee understands that the remedies at law for his
      violation of any of the covenants or provisions of Sections 4, 5 and 6
      will be inadequate, that such violations will cause irreparable injury
      within a short period of time, and that Company shall be entitled to
      preliminary injunctive relief and other injunctive relief against such
      violation.  Such injunctive relief shall be in addition to, and
      in no way in limitation of, any and all other remedies that Company shall
      have in law and equity for the enforcement of those covenants and
      provisions.  Employee further acknowledges that should he
      violate any of the covenants or provisions of Sections 4, 5 and 6, he will
      reimburse Company for its reasonable costs and attorneys’ fees incurred to
      enforce the terms of this
Agreement.

              

      

       

      
        	
                8.

              	
                TERMINATION.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                The
      Employee’s employment hereunder may be terminated by the Company
      immediately upon the occurrence of any of the following events, and the
      Company shall have no obligations to the Employee for any period after the
      effective date of such termination, except vested benefits or as otherwise
      provided in Section 3 herein:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                The
      death of Employee.

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                A
      mental or physical illness or injury that prevents Employee from
      performing his duties hereunder for a period of 90 consecutive days or for
      120 days in any 360 day period, or the Employee has been declared by a
      court of competent jurisdiction to be mentally incompetent or incapable of
      managing his affairs.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (iii)

              	
                For
      “cause” which, for the purposes of this Section, shall
    mean:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                Continued
      neglect or failure to perform his duties and responsibilities;
      or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                Formally
      being charged, either criminally or civilly, with committing fraud,
      misappropriation or embezzlement, whether or not in the performance of
      Employee’s duties as an employee of the Company;
  or

              

      

       

      
        	
                 
      

              	
                (C)

              	
                Violations
      of any law which violation materially affects the Employee’s performance
      of his duties to the Company; or

              

      

       

      
        	
                 
      

              	
                (D)

              	
                The
      conviction of, or plea of guilty or nolo contendere to, a felony or crime
      involving moral turpitude; or

              

      

       

      
        	
                 
      

              	
                (E)

              	
                Willfully
      engaging in conduct materially injurious to the Company or its affiliates;
      or

              

      

       

      
        	
                 
      

              	
                (F)

              	
                Diverting
      any business opportunity of the Company or its affiliates for Employee’s
      direct or indirect personal gain;
or

              

      

       

      
        	
                 
      

              	
                (G)

              	
                Failure
      to observe or perform the covenants and agreements contained in this
      Agreement, including but not limited to those contained in Sections 4, 5
      and 6 of this Agreement.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                The
      Employee’s employment hereunder may be terminated at any time upon the
      mutual written agreement of Employee and the
  Company.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                The
      Employee’s employment hereunder may be terminated by either party with
      thirty (30) days of written notice thereof.  Notwithstanding the
      foregoing, if Employee’s employment hereunder is terminated without
      “cause” during the initial term of this Agreement, Employee shall be paid
      any applicable severance benefits as set forth in Section 3(b) and the
      remainder of the compensation due him during that initial term as set
      forth in Schedule 1 to
      this Agreement, less applicable deductions and
    withholdings.

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (d)

              	
                The
      Employee may terminate his employment hereunder upon any breach by the
      Company of any material provision of this Agreement not cured within sixty
      (60) days of written notice
thereof.

              

      

       

      
        	
                 
      

              	
                (e)

              	
                Except
      as may otherwise be set forth herein, in the event of termination of the
      Employee’s employment by the Company as permitted under clause (a) of this
      Section, Employee shall be entitled only to his Base Salary and other
      compensation and benefits earned through the date of
      termination.

              

      

       

      
        	
                 
      

              	
                (f)

              	
                Upon
      the termination of his employment hereunder for any reason whatsoever,
      Employee shall immediately deliver to the Company all documents,
      statistics, accounts, records, programs and other items of whatever nature
      or description (the “Documents”) which may be in his possession or under
      his control which relate in any way to the Trade Secrets or the business
      or affairs of the Company or of any of its affiliates, and no copies of
      any such Documents or any part thereof shall be retained by
      him.

              

      

       

      
        	
                 
      

              	
                (g)

              	
                In
      the event of the termination of Employee’s employment under this
      Agreement, Employee shall be deemed to have resigned from all positions
      held in the Company. Upon request of the Company, Employee shall promptly
      sign any and all documents reflecting such resignations as of the date of
      termination of his employment.

              

      

       

      
        	
                9.

              	
                REPRESENTATIONS. Employee hereby represents and warrants that
      this Agreement constitutes his valid and binding obligation enforceable in
      accordance with its terms and the execution, delivery and performance of
      this Agreement does not violate any agreement, arrangement or restriction
      of any kind to which Employee is a party or by which he is
      bound.

              

      

       

      
        	
                10.

              	
                MISREPRESENTATION. Neither party hereto shall knowingly at any time
      make any untrue statement in relation to the other or any of their
      affiliates and in particular Employee shall not after the termination of
      his employment hereunder wrongfully represent himself as being employed by
      or connected with the Company or any affiliate of the
      Company.

              

      

       

      
        	
                11.

              	
                REIMBURSEMENT OF
      EXPENSES.
      The Company shall reimburse Employee for all ordinary and necessary
      out-of-pocket expenses reasonably incurred by Employee on behalf of the
      business of the Company. Employee agrees that expense reports must be
      submitted to obtain reimbursement of expenses as well as presentation of
      such supporting documentation as the Company may reasonably require.
      Employee further agrees to submit with expense reports such records and
      logs as may be required by the relevant taxing authorities for the
      substantiation of each such business expense as a deduction on the
      Company’s income tax
  returns.

              

      

       

        	
                12.

              	
                INVENTIONS,
      ETC.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                It
      shall be part of the normal duties of Employee at all times to consider in
      what manner and by what new methods or devices the products, services,
      processes, equipment or systems of the Company or any of its affiliates
      with which he is concerned or for which he is responsible might be
      improved, and promptly to give to the President of the Company or Board of
      Directors full details of any invention or improvement which he may from
      time to time make or discover in the course of his duties, and to further
      the interests of the Company with regard thereto. Subject only to any
      contrary provisions of the laws of the United States or the Commonwealth
      of Massachusetts, all such materials, inventions, improvements, methods,
      products, services, equipment or systems shall be deemed to be “works made
      for hire”, and to the extent such items are not works made for hire, the
      Employee hereby irrevocably grants and assigns such materials, inventions,
      improvements, methods, products, services, equipment or systems to the
      Company which shall be entitled, free of charge, to the sole ownership of
      any such invention or improvement.

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                (b)

              	
                Employee
      shall, if and when required so to do by the Company, at the expense of the
      Company, apply or join with the Company in applying for patents or other
      protection in any part of the world for any such discovery, invention or
      process as aforesaid and shall at the expense of the Company, execute and
      do or cause to be done all instruments and things reasonably necessary for
      vesting the said patent or other protection when obtained and all right,
      title and interest to and in the same in the Company or in such other
      person as the Company may
designate.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                For
      the purpose of this clause Employee hereby irrevocably authorizes the
      company as his attorney in his name to execute any documents or take any
      actions which are required in, order to give effect to the provisions of
      this Section and the Company is hereby empowered to appoint and remove at
      its pleasure any person as agent and substitute for and on behalf of the
      Company in respect of all or any of the matters
  aforesaid.

              

      

       

      
        	
                13.

              	
                NOTICES. Any notices to be given hereunder by either
      party to the other may be effectuated either by personal delivery in
      writing, by electronic facsimile transmission, by commercial overnight
      courier or by mail, postage prepaid, with return receipt requested.
      Notices shall be addressed to the parties as
    follows:

              

      

       

      If to the
Company:

      

      Cyalume
Technologies, Inc.

      96
Windsor Street

      West
Springfield, MA, 01089

      Attention:
President

      

      with a
copy to:

      

      Bowditch
& Dewey, LLP

      311 Main
Street, P.O. Box 15156

      Worcester,
MA 01615-0156

      Attention:
David M. Felper, Esquire

      

      If to
Employee:

      

      Edgar E.
Cranor

      24
Lincoln Park

      Longmeadow,
MA  01106

      

      or to
such other addresses as either the Company or Employee may designate by written
notice to each other. Notices delivered personally shall be deemed duly given on
the date of actual receipt; mailed notices shall be deemed duly given as of the
fifth (5th) day
after the date so mailed. Notices hereunder may be delivered by electronic
facsimile transmission (fax) if confirmation by sender is made within three (3)
business days by mail or personal delivery.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        	
                14.

              	
                ATTORNEYS’
      FEES. If any party shall bring an action to enforce
      this Agreement, each party will bear her/his/its own attorneys’ fees and
      costs.

              

      

       

      
        	
                15.

              	
                WAIVER OF
      BREACH. The waiver by any party to a breach of any
      provision in this Agreement cannot operate or be construed as a waiver of
      any subsequent breach by a
party.

              

      

       

      
        	
                16.

              	
                SEVERABILITY. The invalidity or unenforceability of any
      particular provision in this Agreement shall not affect the other
      provisions hereof, and this Agreement shall be construed in all respects
      as if the invalid or unenforceable provision were
      omitted.

              

      

       

      
        	
                17.

              	
                ENTIRE
      AGREEMENT. Except as otherwise provided herein, this
      Agreement covers the entire understanding of the parties as to the
      employment of Employee, superseding all prior understandings and
      agreements, and no modification or amendment of its terms and conditions
      shall be effective unless in writing and signed by the parties or their
      respective duly authorized
agents.

              

      

       

      
        	
                18.

              	
                GOVERNING
      LAW. This Agreement shall be interpreted, construed
      and governed according to the laws of Delaware, without giving effect to
      principles of conflicts or choice of laws of Delaware or of any other
      jurisdiction.

              

      

       

      
        	
                19.

              	
                CONSENT TO
      JURISDICTION. Employee hereby irrevocably submits to the
      jurisdiction of any court of Delaware or any federal court sitting in the
      State of Delaware over any suit, action or proceeding arising out of or
      relating to this Agreement. Employee hereby agrees that a final judgment
      in any such suit, action or proceeding brought in any such court, after
      all appropriate appeals, shall be conclusive and binding upon
      him.

              

      

       

      
        	
                20.

              	
                SUCCESSORS AND
      ASSIGNS. This Agreement shall be binding upon and inure
      to the benefit of the parties hereto and their successors, permitted
      assigns, legal representatives and heirs, but neither this Agreement nor
      any rights hereunder shall be assignable by any of its parties except as
      permitted by this Section. Employee agrees that this Agreement may be
      assigned or transferred by operation of law by the Company upon a sale,
      merger, reorganization or other business combination of or involving the
      Company; provided, however, that (i) such assignee or other successor to
      the Company shall assume all obligations of the Company hereunder and (ii)
      that Employee shall perform all services required pursuant to this
      Agreement for any such assignee or
  successor.

              

      

       

      
        	
                21.

              	
                MISCELLANEOUS. The Section headings of this Agreement are for
      convenience of reference only and do not form a part hereof and do not in
      any way modify, interpret, or construe the intentions of the parties. This
      Agreement may be executed in one or more counterparts and all such
      counterparts shall constitute one and the same
      instrument.

              

      

       

      
        	
                22.

              	
                RIGHT OF
      SET-OFF. The Company may at any time offset against any
      compensation or other remuneration due or to become due to the Employee,
      or anyone claiming through or under the Employee, any debt or debts due or
      to become due from the Employee to the
  Company.

              

      

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      

       

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

       

      
        	 
      	 
      	
                [COMPANY]

              
	 
      	 
      	
                By:
      ______________________________

                Name:____________________________

                Title:_____________________________

                 

                 

              
	 
      	 
      	 
      
	 
      	 
      	
                ______________________________

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
1

      

      TO
EMPLOYMENT AGREEMENT OF

      Edgar
E. Cranor

      

      

      
        	
                1.

              	
                Salary.
      The Company shall pay Employee an annual base salary (“Base Salary”) of
      Two-hundred fifteen thousand ($215,000.00), at normal payroll intervals
      and less applicable deductions and withholdings, which shall be subject to
      annual adjustments at the sole discretion of the Board of Directors of the
      Company.

              

      

       

      
        	
                2.

              	
                Cash Bonus and Equity
      Bonus Awards

              

      

       

      Cash
Bonus. For
purposes of this Section, cash bonuses shall include all payments under all
bonus, incentive or other similar programs maintained by the Company for which
the Employee qualifies.

       

      
        
          	
                  Cash
      Bonus (Up to 45% of Base Pay)

                
	
                  Criteria

                	
                  Maximum
      % of Total Award

                	
                  Award

                
	
                  Revenue
      goals

                	
                  25

                	
                  100%
      if the Company achieves 100% of Revenue goal; 80% if the Company achieves
      80% of Revenue goal.  If the Company achieves percentages of its
      budgeted Revenue between the limits above, the bonus will be awarded pro
      rata.

                
	
                  EBITDA
      goals

                	
                  25

                	
                  100%
      if the Company achieves 100% of EBITDA goal; 80% if the Company achieves
      80% of EBITDA goal.  If the Company achieves percentages of its
      budgeted EBITDA between the limits above, the bonus will be awarded pro
      rata.

                
	
                  Specific
      objectives

                	
                  50

                	
                  Percentage
      determined by CEO based on specific objective
    accomplishments

                

        

      

      

       

      
        	
                 
      

              	
                25%
      of the bonus will be based on the Company achieving overall Revenue
      targets

              

      

       

      
        	
                 
      

              	
                25%
      of the bonus will be based on the Company achieving overall EBITDA
      targets

              

      

       

      
        	
                 
      

              	
                The
      remaining 50% of bonus will be based on specific objectives relating
      to:

              

      

       

      
        	
                 
      

              	
                §

              	
                Specific
      product development initiatives

              

      

       

      
        	
                 
      

              	
                o

              	
                Shotgun
      Tracer

              

      

       

      
        	
                 
      

              	
                o

              	
                9mm
      and 5.56mm projectiles

              

      

       

      
        	
                 
      

              	
                o

              	
                Medical
      applications

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                §

              	
                Execution
      of IP Strategy

              

      

       

      
        	
                 
      

              	
                o

              	
                Developing
      IP around the three identified critical areas (Basic Discovery Chemistry,
      Chemical Light Ammunition, and Medical
Products)

              

      

       

      
        	
                 
      

              	
                o

              	
                Continued
      issuance of patents

              

      

       

      
        	
                 
      

              	
                o

              	
                Writing
      of provisional patents

              

      

       

      
        	
                 
      

              	
                §

              	
                Development
      of new catalyst system.

              

      

       

      
        	
                 
      

              	
                §

              	
                Supporting
      French subsidiary with chemistry
issues.

              

      

       

      These
Cash Bonus Award objectives will be renegotiated and mutually agreed upon by the
Employee and the CEO annually.

       

      If the
Employee’s employment is terminated by the Employer other than for “cause”, the
Employee shall be entitled to receive a prorated cash bonus for the calendar
year in which the Employee terminated employment and, if applicable, the prior
calendar year, based on the number of full calendar months such Employee was
employed by the Employer during such calendar year.

       

      Equity
Bonus. Subject
to approval by the Board of Directors of Cyalume Technologies Holdings, Inc.
(the “Parent”), the Employee shall be entitled to participate in the Parent’s
2009 Omnibus Securities and Incentive Plan (the “2009 Plan”) in accordance with
the eligibility requirements for participation therein.  Nothing
herein shall be construed so as to prevent the Parent from modifying or
terminating the 2009 Plan.

       

      
        	
                 
      

              	
                Subject
      to the approval of the Board of Directors of the Parent, the Employee
      shall be eligible to receive equity compensation of up to 40,000 shares of
      restricted stock of the Parent, as well as options to purchase up to
      110,000 shares of common stock of the Parent, based on the Employee’s and
      the Company’s achievement of the performance goals set forth in Section 2
      of this Schedule I.  Such options and restricted stock shall be
      vested over a period of four years
..

              

      

       

      
        	
                 
      

              	
                In
      addition, contingent upon Employee having achieved certain objectives set
      forth by the CEO and the Parent’s Compensation Committee, the Employee
      shall be eligible to receive, in each year that this Agreement is in
      effect, (i) options to purchase up to 15,000 shares of common stock of the
      Parent and (ii) 4,000 shares of restricted common stock of the
      Parent.  If issued, such stock and options shall vest in equal
      annual installments over four
years,

              

      

       

      
        	
                 
      

              	
                The
      options and restricted stock awards will be based upon specific objectives
      relating to:

              

      

       

      
        	
                 
      

              	
                ·

              	
                Achieving
      objectives defined and agreed upon annually by the Employee, the CEO, and
      the Parent’s Compensation Committee.  If the Employee fails to
      achieve certain goals, the unvested shares will remain in the award to
      vest in future years.

              

      

       

      
        	
                 
      

              	
                In
      the event of a Change of Control, all equity awards issued to the Employee
      pursuant to this Agreement, including this Schedule I, shall immediately
      accelerate and vest.

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	
                3.

              	
                Benefits.
      Employee shall be provided with health, life, and disability insurance
      coverage and other similar benefits substantially equivalent to those
      provided to employees of the Company from time to time, all in accordance
      with the standard policies of the Company.  Employee shall be
      permitted to participate in the Company’s 401(k) Retirement
      Plan.

              

      

       

      
        	
                4.

              	
                Paid Time Off
      (PTO)/Sick Days.
      Employee shall be provided with five (5) weeks of PTO, available on
      January 1 of each calendar year, and with sick days in accordance with the
      standard policies of the Company. Employee shall be permitted to carry
      over a maximum of six (6) weeks of unused PTO into any subsequent period.
      Upon termination of employment, Employee shall not be paid for unused sick
      days, but will be paid for accrued, unused
      PTO.

              

      

       

      
        	
                5.

              	
                Automobile
      Allowance. Employee
      shall be furnished an automobile allowance of $9,000 per year, paid on a
      weekly basis.

              

      

    

     

     

    
      
        
        

      

      
        12EXHIBIT
10.1

    

    EMPLOYMENT
AGREEMENT

     

    This is
an Employment Agreement ("Agreement") dated this 17th of
July, 2009, by and between MedPro Safety Products, Inc., a Nevada corporation,
("Company"), and Craig Turner, presently residing in Lexington, Kentucky
("Executive").

     

    RECITALS

     

    
      	
               
      

            	
              A.

            	
              Whereas,
      Company presently employs Executive and Executive and Company now desire
      to enter into this Agreement to reflect the terms and conditions of
      Executive's continued employment with Company as its Chief Executive
      Officer; and

            

    

     

    
      	
               
      

            	
              B.

            	
              Whereas,
      Executive desires to accept such continued employment on the terms and
      conditions herein set forth.

            

    

     

    NOW,
THEREFORE, in consideration of the foregoing and of the covenants and conditions
herein contained, the parties hereto agree as follows:

     

    1.              Employment. Company
hereby agrees to continue to employ Executive, and Executive hereby accepts such
continued employment by Company, upon the terms and conditions set forth in this
Agreement.

     

    2.              Term. The term of
this Agreement shall be the thirty-six (36) consecutive month period commencing
July 1, 2009 ("Effective Date"), and ending on June 30, 2012 (the "Term"),
unless terminated sooner pursuant to Paragraphs 9 and 10 below or Executive
voluntarily resigns. After the Term, this Agreement shall be automatically
renewed for additional twelve (12) consecutive month periods (the "Additional
Term(s)"), unless Company or Executive provides prior written notice of its or
his intention for this Agreement not to be renewed, which written notice shall
be provided not less than ninety (90) days prior to the expiration of the Term
or any Additional Term. Any reference to Term herein shall include the initial
Term and any Additional Term unless expressly provided to the
contrary.

     

    3.              Duties. During the
Term, Executive shall hold the position of Chief Executive Officer for Company
and such other affiliates as requested by Company, provided, however, Company
may alter the title and position held by Executive at any time, in its sole and
absolute discretion. Executive shall perform the duties as described in Attachment A and customary for
that position or any other position held by Executive and such other duties as
Company may from time to time reasonably assign to him. Executive agrees to use
his best efforts for the benefit of Company and its affiliates, and throughout
the Term shall devote his attention and energies to the business of Company and
its affiliates. Company acknowledges that

     

    Executive
has continuing obligations with regards to other business entities and
associated matters. Executive agrees that such matters will not conflict with
the interests of Company, and will not interfere with the execution of
Executive's duties. Executive shall be afforded adequate time to fulfill his
obligations with such other business entities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.           
  Compensation.
During the Tenn, Executive's compensation for duties performed under
this Agreement shall consist of the following:

     

    (a)           A
Monthly Base Salary of Twenty-Eight Thousand Three Hundred Thirty- Three and
33/100 Dollars ($28,333.33) ("Monthly Base Salary"), to be paid in accordance
with the customary payroll practices of Company at such times as the Board of
Directors of Company may determine, with any increases as determined by the
Board of Directors of Company in its sole and absolute discretion.

     

    (b)           Annual
cash bonus compensation of up to 100% of Executive's annual base salary, as the
Board of Directors of Company may determine in its sole and absolute
discretion.

     

    (c)           Notwithstanding
the above, any salary, bonus and associated metrics will be reviewed at least
annually by the Compensation Committee of the Board of Directors and Executive.
Company shall withhold from any such amounts payable to Executive any applicable
social security, federal, state or local taxes.

     

    5.             
Employee
Benefits. During the Term, Executive shall be eligible for the
following
benefits.

     

    (a)           Executive
shall be entitled to participate in employee benefit plans, policies and
practices sponsored by Company for the benefit of its employees, upon the same
terms and conditions as other employees of Company; provided nothing in this
Agreement shall affect Company's right to amend, modify or otherwise terminate
any such plans, policies and practices in its sole and absolute
discretion.

     

    (b)           Upon
termination of Executive's employment without "cause" (as defined below),
Company shall pay or reimburse Executive for the premiums associated with
continued medical coverage under Company's medical plan should Executive elect
to continue such coverage pursuant to the terms of the Consolidated Omnibus
Budget Reconciliation Act of 1986, as amended.

     

    (c)           Company
shall establish and maintain a stock option plan for its management group which
shall grant Executive options to purchase stock pursuant to the terms and
conditions of the plan and in concert with the Company's existing 2008 Stock and
Incentive Compensation Plan.

     

    (d)           In
an effort for Executive to better manage his time and accomplish corporate goals
and milestones, and with regard to all of his Company travel and
responsibilities, Company approves the use of a personal assistant.

     

    6.              Reimbursement
of Expenses. Company shall reimburse Executive for all reasonable
travel, entertainment, and similar expenses that Executive incurs in promoting
the business of Company and its affiliates, subject to policies and directives
from Company. Company shall also reimburse Executive for all associated expenses
for professional education, certifications, and other ongoing educational
seminars, training, and courses taken. This will include
direct costs, travel, lodging, and other related expenses. Executive shall
submit such courses for approval by the Board of Directors of Company or the
Compensation Committee of the Board of Directors prior to incurring such
expenses.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.              Facilities. Company
shall provide Executive with an office, books, stenographic and technical help,
and such other facilities, equipment, supplies and services as are suitable to
his position and adequate for the performance of his duties.

     

    8.              Confidentiality,
Nonsolicitation and Noncompetition.

     

    (a)           Disclosure of
Information. Executive acknowledges and agrees that Company's operations,
financial reports, customer information, strategic plan, salary and employee
information, and other confidential information pertaining to Company's
operations and business affairs, as the same may exist from time-to-time,
including but not limited to any information not generally known in the industry
in which Company is or may be engaged, are valuable, special and unique assets
of Company's business, and Executive shall not (without the prior written
consent of the Board of Directors of Company), either during Executive's
employment or thereafter, for any reason or purpose whatsoever, disclose any
such information to any person, firm, corporation, association, or other entity.
Company may protect this interest by seeking and obtaining a court
injunction.

     

    (b)           Return of Materials.
Executive agrees to deliver, within three (3) days after he is no longer
affiliated with Company, any and all property of Company, including any
Confidential Material (whether made, written or obtained by Executive or others)
that is in his possession, custody or control. Executive agrees that he shall
retain no copies of such material. For purposes of this Agreement, "Confidential
Material" shall include, but not be limited to, any writing, computer data,
photograph, or other written material or tangible thing, obtained by Executive
as a consequence of or through his relationship with Company, and containing any
confidential information, including any information not generally known in the
industry in which Company is or may be engaged. This shall include, without
limiting the generality of the foregoing, customer lists, price or fee lists,
financial data, forms and manuals, procedures, instructions, records, computer
programs, notes, notebooks, and all other material of a trade secret,
proprietary, or confidential nature.

     

    (c)           Nonsolicitation of
Employees, Etc. Executive hereby covenants and agrees that during the
term of Executive's employment with Company and throughout the Restricted
Period, Executive will not, directly or indirectly, solicit, divert, induce,
encourage or attempt to solicit, divert, induce or encourage any person who was
any employee, agent, consultant, independent contractor, vendor, supplier or
service provider of Company or its affiliates at the time of his termination of
employment or within six (6) months of such termination of employment, to leave
or reduce his or her employment, relationship or other arrangement with Company
or any of its affiliates. Further, during the Restricted Period, Executive shall
not directly or indirectly, on behalf of himself or another person or entity,
hire, engage the services of, or attempt to hire or engage the services of, any
person or entity who was an employee, agent, consultant, independent contractor,
vendor, supplier or service provider of Company or its affiliates at the time of
Executive's termination of employment or within six (6) months of such
termination.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)           Nonsolicitation of
Customers. Executive hereby covenants and agrees that during the term of
Executive's employment with Company and throughout the Restricted Period,
Executive will not, directly or indirectly, solicit, divert, induce, encourage
or attempt to solicit, divert, induce or encourage any customer of Company or
its affiliates at the time of his termination of employment or within six (6)
months of such termination of employment, to terminate or reduce the customer's
relationship with Company or any of its affiliates. Further, during the
Restricted Period, Executive shall not directly or indirectly, on behalf of
himself or another person or entity, hire, provide products or services to any
person or entity or engage the services of, or attempt to hire or engage the
services of, any person or entity who was a customer of Company or its
affiliates at the time of Executive's termination of employment or within six
(6) months of such termination.

     

    (e)           Noncompetition.
Executive hereby covenants and agrees that during the Term of Executive's
employment with Company and throughout the Restricted Period, Executive will
not, either directly or indirectly, in any capacity (including, but not limited
to, in the capacity as an employer, employee, sole proprietor, principal,
partner, member, officer, director, stockholder, consultant, agent, independent
contractor or service provider (other than a minority shareholder or other
equity interest holder of not more than 1% of a company whose equity interests
are publicly traded on a nationally recognized stock exchange or over-the-
counter)), on his own behalf or in the service of or on behalf of others, engage
in, have any equity or profit interest in, advise, manage, or render or perform
services to any business entity or individual engaged in business which is or
would be in competition with Company or its affiliates or provides or would
provide products similar to those provided by Company or its affiliates within
any country wherein Company or any of its affiliates has customers, an office,
an operation, sells or markets their products or services.

     

    (f)           Restricted Period.
For purposes of this Agreement, the "Restricted Period" shall mean the period
ending six (6) months after Executive terminates employment with Company or any
of its affiliates. The running of the Restricted Period shall be tolled for any
period during which Executive is in violation of the restrictions set forth
herein.

     

    (g)           Enforcement.
Executive acknowledges that the duties, obligations and restrictions imposed
upon him in this Agreement are special, unique and of an extraordinary
character, and that in the event of Executive's breach or threatened breach of
any portion of this Agreement, the damage to Company and its affiliates would be
irreparable or could not be adequately measured in money damages. Executive
represents and further acknowledges that any breach or threatened breach of his
duties, obligations and restrictions under this Agreement will cause Company and
its affiliates immediate and irreparable injury, loss and damage before legal
notice can be had upon Executive, or his attorney, or before a judicial hearing
can be held. Therefore, Executive agrees that Company may protect its interest
by seeking and obtaining specific performance or a court injunction (both
temporary and permanent), in addition to any provable money damages, costs and
reasonable attorneys fees, along with any other remedies they may have at law
and equity, for any breach or threatened breach of the Agreement. Executive also
agrees that it is important for any prospective person or business entity
entering into an arrangement with Executive which might be impacted by the
restrictive covenants set forth herein to be made aware of this Agreement.
Accordingly, Executive further agrees to provide a
copy of this Agreement to any person or business entity with whom he considers
entering into any arrangement of any nature which would be impacted by this
Agreement. Should Executive fail to provide this information, Executive further
agrees that Company may forward a copy of this Agreement to any person or
business entity entering into an arrangement of any nature with Executive which
it believes would be impacted by this Agreement and Executive releases Company
and its affiliates from any and all claimed liability or damage by virtue of
such disclosure. The provisions of this Paragraph 8 shall survive the
termination of this Agreement for any reason, including but not limited to, the
expiration of the Term.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.              Death or Disability.
If during the Term, Executive dies or becomes unable to perform his duties
hereunder because of "disability," the Term shall be deemed to have ended and
all obligations of Company under this Agreement shall cease immediately;
provided Executive or his personal representative shall be entitled to be paid
for services rendered up to the time of "disability" or death. Solely as used in
this Paragraph, "disability" shall mean Executive's inability (as determined
under the long-term disability plan maintained by Company, if applicable, or if
not, by a physician mutually selected by the parties) due to illness or physical
or mental incapacity, to adequately and fully perform the duties that Executive
was performing for Company when the disability began. If at any time during the
Term, the insurance carrier or administrator of Company's long-term disability
plan or, if applicable, the physician mutually agreed upon by Company and
Executive makes a determination with respect to Executive's disability, that
determination shall be final, conclusive, and binding upon Company, Executive,
and their successors in interest.

     

    10.            Termination.

     

    (a)              Company
may terminate Executive for "cause," which termination shall be immediate.
Upon such termination for "cause," the Term shall be deemed to have ended and
all obligations of Company under this Agreement shall cease immediately;
provided, Executive shall be entitled to be paid for services rendered up to the
time of actual termination. Should Company terminate Executive other than for
"cause," Executive shall continue to be paid his Monthly Base Salary (but no
other amounts related to any employee benefit plans and no further accrual of
vacation, sick or holiday time) until the end of that Term, even though he is no
longer working for Company, which payment shall be specifically conditioned upon
and in exchange for any written releases deemed appropriate by Company. After
that Term shall have ended, all obligations of Company under the Agreement shall
cease. Should Executive terminate employment with Company for any reason, that
Term shall be deemed to have ended immediately and all obligations of Company
under this Agreement shall cease; provided, Company shall be entitled to damages
if at least ninety (90) days prior written notice was not provided to Company by
Executive. For purposes of this Agreement, termination by Company of Executive's
employment for "cause" shall mean termination upon (a) the willful and continued
failure by Executive to perform his duties with Company; or (b) the willful
engaging by Executive in misconduct demonstrably injurious to Company; (c) the
willful engaging by Executive in fraud or dishonesty; (d) breach of fiduciary
duty involving personal profit; or (e) commission of any federal or state felony
or criminal offense (excluding traffic related offenses) which is materially and
demonstrably injurious to Company. For purposes of this definition, no act, or
failure to act, on Executive's part shall be considered "willful" unless done,
or admitted to be done,
by Executive not in good faith and without reasonable belief that Executive's
action or omission was in the best interest of Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)            Upon
Executive's termination of employment by Company after a "Change of Control"
has occurred, Executive shall receive a single sum payment in an amount equal to
Executive's Monthly Base Salary for thirty-six (36) months (less any applicable
social security, federal, state or local tax withholdings), based on Executive's
Monthly Base Salary in effect for the month in which the termination of
employment occurs. Such payment shall be made forty- five (45) days after
Executive's date of termination of employment; provided, if Executive
constitutes a "specified employee" within the meaning of Treasury Regulation
Section 1.409A­1(i)(or any successor thereto), such payment shall not be
made until six (6) months after Executive's termination of employment. For
purposes of this paragraph, the determination by Company as to whether a
termination of employment has occurred will be based on all relevant facts and
circumstances in accordance with Treasury Regulation Section 1.409A-1(h). A
"Change of Control" of Company shall, for purposes of this paragraph, be defined
as the occurrence of (i) a "Change in Ownership", (ii) a "Change in Effective
Control", or (iii) a "Change in Asset Control", as each is defined below. All
such events shall be determined under and subject to all of the terms of
Treasury Regulation Section 1.409A-3(i)(5). The "Change of Control" must relate
to Company or an entity that is a majority shareholder of Company, which is a
shareholder owning more than 50% of the total fair market value and total voting
power of Company. Stock ownership shall be determined under Section 318(a) of
the Internal Revenue Code of 1986, as amended ("Code"). A "Change in Ownership"
occurs on the date that any one person, or more than one person acting as a
group, acquires ownership of stock of Company that, together with stock held by
such person or group, constitutes more than 50% of the total fair market value
or total voting power of the stock of Company. A "Change in Effective Control"
of Company occurs on the date that either (A) any one person, or more than one
person acting as a group, acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person or persons)
ownership of stock of Company possessing 30% or more of the total voting power
of the stock of Company, or (B) a majority of the members of the Board of
Directors of Company are replaced during any 12-month period by directors whose
appointment or election is not endorsed by a majority of the members of the
Board of Directors of Company prior to the date of the appointment or election.
A "Change in Effective Control" also may occur in any transaction in which
either of the two entities involved in the transaction has a "Change in
Effective Control" or a "Change in Asset Control". A "Change in Asset Control"
of Company occurs on the date that any one person, or more than one person
acting as a group, acquires (or has acquired during the 12-month period ending
on the date of the most recent acquisition by such person or persons) assets
from Company or a parent entity of Company that have a total gross fair market
value equal to or more than 40% of the total gross fair market value of all of
the assets of Company immediately prior to such acquisition or acquisitions. For
this purpose, gross fair market value means the value of the assets being
disposed of, determined without regard to any liabilities with such assets.
There is no Change of Control under this Section when there is a transfer to an
entity that is controlled by the shareholders of Company immediately after the
transfer. A transfer of assets by Company is not treated as a "Change in Asset
Control" if the assets are transferred to (I) a shareholder of Company
(immediately before the asset transfer) in exchange for or with respect to its
stock, (II) an entity, 50% or more of the total value or voting power of which
is owned, directly or indirectly,
by Company, (III) a person, or more than one person acting as a group, that
owns, directly or indirectly, 50% or more of the total value or voting power of
all of the outstanding stock of Company or (IV) a person, at least 50% of the
total value or voting power of which is owned, directly or indirectly, by a
person described in the preceding (III).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)           
If, as a result of payments provided for under or pursuant to this Agreement
together
with all other payments in the nature of compensation provided to or for the
benefit of Executive under any other agreement in connection with a Change of
Control, Executive becomes subject to taxes of any state, local or federal
taxing authority that would not have been imposed on such payments but for the
occurrence of a Change of Control, including any excise tax under Section 4999
of the Code or any successor or comparable provisions, then the Company shall
pay to Executive at the time any such payments are made under this or the other
agreements, an amount equal to the amount of any such taxes imposed or to be
imposed on Executive (the "Parachute Tax Reimbursement"); provided, such
Parachute Tax Reimbursement shall in no event be paid later than the end of the
calendar year following the year in which such taxes are imposed upon Executive.
Such reimbursement shall be grossed up to pay Executive for any additional taxes
that are or will be payable as a result of the Parachute Tax Reimbursement being
paid to Executive or as a result of the additional amounts paid or payable
pursuant to this provision, such that after all reimbursement hereunder
Executive shall have been paid on a net after tax basis an amount equal to the
Parachute Tax Reimbursement.

     

    11.           Resolution of Disputes and
Governing Law. Executive and Company agree that any dispute arising
hereunder or out of any further relationship shall, at the option of Company, be
resolved by the Fayette Circuit Court, Fayette County, Kentucky, or by binding
arbitration in accordance with the rules adopted by the American Arbitration
Association (except that such rules shall be modified so that any arbitration
award shall be made no later than ninety (90) days after arbitrator(s) are
appointed), with any such arbitration proceedings to take place in Lexington,
Kentucky. If Company should elect to resolve a dispute in the Fayette Circuit
Court, such court shall have exclusive jurisdiction and Executive agrees to and
does hereby waive the right to a jury trial. All parties agree that no party
shall be entitled to, or recover for, consequential, punitive, exemplary or
extraordinary damages. This Agreement has been negotiated and executed in the
Commonwealth of Kentucky and shall be construed and enforced in accordance with
the laws of that state.

     

    12.           Parties Affected.
This Agreement shall inure to and shall be binding upon the parties hereto, the
successors and assigns of Company, and the heirs and personal representatives of
Executive.

     

    13.           Notices. All notices
required to be given under the terms of this Agreement shall be in writing,
shall be effective upon receipt, and shall be delivered to the addressee in
person or mailed by certified mail, return receipt requested, to such person's
last known address as shown from Company's records.

     

    14.           Assignment. The
services to be rendered by Executive under this Agreement are unique and
personal, and Executive may not assign any of his rights or delegate any of his
duties under
this Agreement. Except as provided in the immediately preceding sentence, this
Agreement shall benefit Executive and his heirs and personal
representatives.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    15.           Severability and No
Violation. If any provision of this Agreement or its application shall be
invalid, illegal, or unenforceable in any respect, the validity, legality, and
enforceability of all other applications of that provision and of all other
provisions and applications hereof shall not in any way be affected or impaired
and such invalid, illegal or unenforceable provision or applications thereof
shall be modified to the extent necessary such that it and the Agreement shall
then be enforced to the maximum extent allowed by applicable law. Executive
represents that in signing this Agreement he will not violate any other
agreement to which he is a party.

     

    16.           Non-Waiver. A delay
or failure by either party to exercise a right under this Agreement, or a
partial or single exercise of that right, shall not constitute a waiver of that
or any other right.

     

    17.           Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
Agreement.

     

    18.           Entire Contract. This
Agreement constitutes the entire understanding and agreement between Company and
Executive with regard to all matters herein and supersede any prior agreements
and discussions between the parties. There are no other agreements, conditions
or representations, oral or written, expressed or implied with regard thereto.
This Agreement may be amended only in writing, signed by both parties; provided,
Company may amend the Agreement as necessary to avoid the Agreement being
subject to Section 409A of the Code, and the regulations thereunder, or to
comply with Section 409A of the Code and the regulations thereunder if
necessary. Any further agreement of the parties on any matter, including matters
unrelated to this Agreement, shall be binding and enforceable only if in
writing, signed by both parties.

     

    19.           Headings. The
headings in this Agreement have been inserted solely for convenience of
reference and shall not be considered in the interpretation or construction of
this Agreement.

     

    IN
WITNESS WHEREOF, the parties have executed and delivered this Employment
Agreement as of the date set forth in the preamble hereto.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	
                                MEDPRO
      SAFETY PRODUCTS, INC.

                              	 
	 	 	 	 
	 	 	 	 
	 
      	
                                By:

                              	
                                /s/
      Gary A. Peterson

                              	 
	 
      	 
      	
                                Gary
      A. Peterson

                              	 
	 
      	 
      	
                                Chairman,
      Compensation Committee

                              	 
	 	 	 	 
	 
      	
                                /s/
      Craig Turner

                              	 
	 
      	
                                Craig
      Turner

                              	 

                      

                    

                  

                

              

            

          

        

      

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ATTACHMENT
A

     

    A.
EXECUTIVE'S GENERAL RESPONSIBILITIES

     

    The Chief
Executive Officer is delegated the authority to supervise the business and
affairs of the Corporation, subject to the direction of the Board and the
executive limitations established by the Board. This delegation shall include
the authority to make all decisions on behalf of the Corporation that do not
require shareholder approval, or have not been reserved by the Board to itself
or to a Committee of the Board, under the terms of this Mandate.

     

    All Board
authority delegated to management is delegated through the Chief Executive
Officer, so that all authority and accountability of management, unless
otherwise stated in this Mandate, is considered to be the authority and
accountability of the Chief Executive Officer. This shall not be interpreted as
precluding interaction among the members of the Board and senior management, and
relates solely to the accountability link between the Board and the Chief
Executive Officer.

     

    The Chief
Executive Officer shall have the authority to delegate operational decision
making as he/she may determine as necessary and appropriate for the effective
operation of the business. In this regard, the Chief Executive Officer shall put
in place a delegation of operational authority policy within the
organization.

     

    Role/Responsibilities:

     

    The role
and responsibilities of the Chief Executive Officer will include:

     

    
      	
              ·

            	
              developing
      and recommending corporate strategies, and business and financial plans
      for the approval of the Board;

            

    

     

    
      	
              ·

            	
              managing
      the operations of the business in accordance with the strategic direction
      set by the Board and within operational policies as approved by the Board
      in relation to the conduct of the
business;

            

    

     

    
      	
              ·

            	
              reporting
      management information back to the Board in a manner and time so that the
      Board may effectively monitor and evaluate corporate performance against
      stated objectives and within executive limitations;
    including:

            

    

     

    
      	
               
      

            	
              ·

            	
              submitting
      monitoring and performance information required by the Board in a timely
      and accurate fashion, and based on industry benchmarked
      standards;

            

    

     

    
      	
               
      

            	
              ·

            	
              ensuring
      that the Board is aware of relevant trends, anticipated adverse media and
      analyst coverage, material external or internal changes, and any changes
      in the assumptions upon which any Board decision or approval has
      previously been made; and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              ·

            	
              advising
      the Board if, in the Chief Executive Officer's opinion, the Board is not
      in compliance with its own policies, or legal and/or regulatory
      requirements, in particular, in the case of behavior of one or more
      directors which is detrimental to best interests of the Corporation or to
      the working relationship between the Board and the Chief Executive
      Officer;

            

    

     

    
      	
              ·

            	
              developing
      a list of risk factors and informing the Board of what mechanisms are in
      place to address the identified
risks;

            

    

     

    
      	
              ·

            	
              providing
      the Board with information, both internal and external, that the Board may
      require in order to make fully-informed decisions regarding policies
      governing the operation of the
business;

            

    

     

    
      	
              ·

            	
              dealing
      with the Board as whole except
when:

            

    

     

    (a)  fulfilling
individual requests for information; or

     

    (b)  responding
to officers or committees duly charged by the Board; and

     

    
      	
              ·

            	
              reporting
      in a timely manner on actual or anticipated non-compliance with any Board
      approved policy or decision.

            

    

     

    The Chief Executive Officer
will be evaluated on the following criteria:

     

    1. 
Leadership:
Leads the Corporation based on its vision, mission and values so that they are
widely understood, widely supported, consistently applied and effectively
implemented and ensures that practices are consistent with the strategic
plan.

     

    2.  Strategic
Planning: Ensures the development of and gains Board approval for a
strategic plan that meets the needs of stockholders, customers, employees and
all corporate stakeholders; ensures consistent and timely progress toward
strategic objectives; obtains and allocates resources consistent with strategic
objectives.

     

    3.  Financial
Results: Establishes Board-approved appropriate annual and longer-term
financial objectives and manages consistently to achieve these goals; ensures
that appropriate systems are maintained to protect assets and maintain effective
control of operations.

     

    4.  Succession
Planning: Develops, attracts, retains, motivates, manages and is
accountable for an effective top management team capable of achieving
objectives; provides for a detailed, written management succession
plan.

     

    5.  Human
Resources: Ensures the development of effective recruitment, training,
retention and personnel communications plans and programs to provide and
motivate the necessary human resources to achieve objectives; establishes and
monitors programs to provide equal opportunity employment for all
employees.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.  Communications:
Serves as chief spokesperson, communicating effectively with stockholders and
all internal and external stakeholders.

     

    7.  External
Relations: Ensures that the Corporation and its operating units
contribute appropriately to the well being of their communities and industries.
Represents the Corporation in community and industry affairs.

     

    8.  Board
and Stockholder Relations: Works closely with the Board and stockholders
to keep them fully informed on all important aspects of the status and
development of the Corporation. Facilitates the Board's governance, composition
and committee structure. Implements Board policies and recommends policies for
Board consideration.

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