Document:

EX-10.2

Exhibit
10.2

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, made and entered into as of the 1st day of January, 2007, by
and between Ceramic Protection Corporation a Calgary corporation (together with its successors and
assigns permitted under this Agreement, the “Company”), and Steve Giordanella (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Company will employ the Executive and the Company desires to enter into an
employment agreement (the “Agreement”) embodying the terms of the Executive’s employment with the
Company; and

     WHEREAS, the Executive desires to enter into the Agreement and to begin such employment,
subject to the terms and provisions of this Agreement.

     NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and
for other good and valuable consideration, the receipt of which is mutually acknowledged, the
Company and the Executive (individually a “Party” and together the “Parties”) agree as follows:

     1. Definitions.

          (a) “Affiliate” shall mean, with respect to any Person, (i) each Person that, directly or
indirectly, owns or controls, whether beneficially, or as a trustee, guardian or other fiduciary
of such person, such Person, (ii) each Person that controls, is controlled by or is under common control with such Person or any Affiliate of such Person, (iii) each of such Person’s officers,
directors, joint venturers and partners and (iv) each member of the immediate or extended family
of any Person that is a natural person. For the purpose of this definition, “control” of a Person
shall mean the possession, directly or indirectly, of the power to direct or cause the direction
of its management or policies, whether through the ownership of voting shares, by contract or
otherwise.

          (b) “Base Salary” shall mean the Executive’s base salary in accordance with Section 4 below.

          (c) “Board” shall mean the Board of Directors of the Company.

          (d) “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which
commercial banks in the State of Delaware are required or authorized to be closed.

          (e) “Cause” shall mean:

	 	(1)	 	the Executive is indicted for a felony or a
crime of moral turpitude, dishonesty, breach of trust or unethical
business conduct;

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	 	(2)	 	the Executive engages in misconduct, breach of any fiduciary
duty owed to the Company or gross negligence, fraud,
insubordination, misappropriation or embezzlement;
	 
	 	(3)	 	the Executive uses illegal drugs or abuses alcohol or drugs; or
	 
	 	(4)	 	the Executive breaches in any material respect
the terms and provisions of this Agreement and fails to cure such
breach within 20 days following written notice from the Company
specifying such breach.

          (f) “Chairman” shall mean the Chairman of the Company.

          (g) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time,
including applicable regulations thereunder.

          (h) “Disability” shall mean a disability as determined under the Company’s long-term
disability plans, programs and/or arrangements in effect on the date such disability first occurs.

          (i) “Effective Date” shall mean January 1, 2007.

          (j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended
from time to time, including applicable regulations thereunder.

          (k) “Person” includes an individual, partnership, firm, trust, body corporate, governmental
authority, unincorporated body of persons or association, and any other form of entity.

          (l) “Term of Employment” shall mean the period specified in Section 2 below.

          (m) “Voting Stock” shall mean capital stock of any class or classes having general voting
power under ordinary circumstances, in the absence of contingencies, to elect the directors of a
corporation.

          (n) “$” shall mean United States dollars.

     2. Term of Employment.

          The Company hereby employs the Executive, and the Executive hereby accepts such employment,
for the period commencing on the Effective Date and ending on the third anniversary of the
Effective Date (the “Term of Employment”), subject to earlier termination of the Term of
Employment in accordance with the terms of the Agreement. The Term of Employment shall be
automatically renewed for a one-year period (“Renewal Period”) on each anniversary of the
Effective Date following the expiration of the Term of Employment, unless, in each case, either
Party has notified the other Party in writing in accordance with Section 23

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below at least 90 days prior to the expiration of the then Term of Employment or Renewal Period, as
the case may be, that he or it does not want the Term of Employment or Renewal Period, as the case
may be, to so renew.

     3. Position, Duties and Responsibilities.

          The Executive shall serve as Chief Executive Officer of the Company and President of
Protective Products International (“PPI”). The Board shall also appoint the Executive to serve as
a director of the Company during the term of his employment hereunder. In each of the foregoing
capacities, the Executive shall faithfully perform for the Company the duties of said office and
shall perform such other duties of an executive, managerial or administrative nature as shall be
specified and designated from time to time by the Board. The Executive shall devote substantially
all of his business time and effort to the performance of his duties hereunder and shall perform
his duties at PPI’s principal office located in Sunrise, FL, except for periodic travel necessary
to carry out his duties. The Executive, in carrying out his duties under this Agreement, shall
report to the Board of Directors. Notwithstanding anything in this Section 3 to the contrary,
nothing shall preclude the Executive from:

	 	(1)	 	serving on the boards of directors of a
reasonable number of other corporations or the boards of a reasonable
number of trade associations and/or charitable organizations;
	 
	 	(2)	 	engaging in charitable activities and community affairs; and
	 
	 	(3)	 	managing his personal investments and affairs;

provided, however, that such activities do not materially interfere with the
proper performance of his duties and responsibilities hereunder.

     4. Base Salary.

          During the Term of Employment, the Executive shall be paid an annual Base Salary, payable in
accordance with the regular payroll practices of the Company, of $500,000.00. The Base Salary may
be increased (but not decreased) at any time and from time to time by action of the Board or by
any committee thereof or any individual having authority to take such action in accordance with
the Company’s regular practices. Once increased, any reference to Base Salary herein shall be a
reference to such increased amount.

     5. Bonus/Incentive Compensation.

          (a) The Executive shall be entitled to a one-time bonus of $2,000,000 if (a) the EBITDA of
PPI exceeds $20,000,000 for the twenty-four month period beginning on May 25, 2006 (b) the
Executive remains continuously employed hereunder for the entirety of such twenty-four month
period. Such bonus amount shall not be subject to pro ration or other partial payment if the
EBITDA of PPI does not exceed $20,000,000 during such period.

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          (b) The Executive shall be eligible to receive stock option grants pursuant to the Company’s
incentive stock option plan when and as adjusted by the Company. The Company shall grant the
Executive Incentive Stock Options to acquire shares equal to one (1) percent of the issued and
outstanding shares of the Company’s common stock annually for each of the three (3) years of this
Agreement providing Executive remains employed by the Company.

     6. Employee Benefit Programs. During the Term of Employment, the Executive, to the
extent he is eligible, shall be entitled to participate in those employee pension and welfare
benefit plans, programs and/or arrangements applicable to the Executive and made available to the
Company’s senior-level executives or to its employees generally, as such plans, programs and/or
arrangements may be in effect from time to time, including, without limitation, pension,
profit-sharing, savings, medical, dental, hospitalization, short-term disability, long-term
disability, life insurance, accidental death and dismemberment protection, travel accident
insurance, and other employee pension and welfare benefit plans, programs and/or arrangements
according to the Company’s policy and as approved by the Board from time to time.

     7. Reimbursement of Business Expenses.

          The Executive is authorized to incur ordinary and reasonable business expenses in carrying
out his duties and responsibilities under the Agreement, and the Company shall reimburse him for
all such ordinary and reasonable business expenses incurred in connection with carrying out the
business of the Company, provided he submits receipts and other supporting documentation in
accordance with the Company’s policy.

     8. Vacation.

          The Executive shall be entitled to four weeks paid vacation during each twelve-month period.

     9. Automobile.

          Executive shall be provided with an automobile during the term of this Agreement. The
automobile provided shall be equal to that presently provided to Executive.

     10. Termination of Employment.

          (a) Termination of Employment Due to Death. In the event of the Executive’s death
during the Term of Employment, the Term of Employment shall end as of the date of the Executive’s
death and his estate and/or beneficiaries, as the case may be, shall be entitled to the following:

	 	(1)	 	Base Salary earned but not paid prior to the date of his death; and
	 
	 	(2)	 	any amounts earned, accrued or owing to the
Executive but not yet paid under Sections 6, 7, or 8 above.

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          (b) Termination of Employment Due to Disability. If the Executive’s employment is
terminated due to Disability during the Term of Employment, either by the Company or by the
Executive, the Term of Employment shall end as of the date of the Executive’s termination of
employment and the Executive shall be entitled to the following (but in no event shall the
Executive be entitled to less than the benefits due him under any disability program of the Company
for which he becomes eligible):

	 	(1)	 	Base Salary earned but not paid prior to the
date of the termination of the Executive’s employment;
	 
	 	(2)	 	any benefits the Executive is entitled to in
accordance to a disability plan to be established by the Company and
approved by the Board; and
	 
	 	(3)	 	any amounts earned, accrued or owing to the
Executive but not yet paid under Sections 6, 7, or 8 above.

          In no event shall a termination of the Executive’s employment for Disability occur unless the
Party terminating his employment gives written notice to the other Party in accordance with
Section 24 below.

          (c) Termination of Employment by the Company for Cause. If
the Company terminates the Executive’s employment for Cause, the Executive
shall be entitled to the following:

	 	(1)	 	Base Salary earned but not paid prior to the
date of the termination of his employment; and
	 
	 	(2)	 	any amounts earned, accrued or owing to the
Executive but not yet paid under Sections 6, 7, or 8 above.

          (d) Termination of Employment by the Company Without Cause. If the Executive’s
employment is terminated by the Company without Cause, other than due to death or Disability, the
Executive shall be entitled to the following:

	 	(1)	 	Base Salary earned but not paid prior to the
date of the termination of his employment;
	 
	 	(2)	 	an amount equal to the aggregate Base Salary
(based on the Base Salary in effect on the date of the termination of
the Executive’s employment) (the “Salary Continuation Benefits”) for
the balance of Term of Employment payable over the period in accordance
with the regular payroll practices of the Company;
	 
	 	(3)	 	continued accrual of credited service through a
period ending on that date that would have been the end of the Term of
Employment

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	 	 	 	for the purpose of any Company pension plan, program or arrangement;
	 
	 	(4)	 	any amounts earned, accrued or owing to the
Executive but not yet paid under Sections 6, 7, or 8 above;
	 
	 	(5)	 	continued participation, as if he were still
an employee, in the Company’s medical, dental, hospitalization and
life insurance plans, programs and/or arrangements and in other
employee benefit plans, programs and/or arrangements (excluding
long-term disability programs) in which he was participating on the
date of the termination of his employment until the earlier of:

	 	(A)	 	the end of the period used to
determine the Salary Continuation Benefits; or
	 
	 	(B)	 	the date, or dates, he
receives equivalent coverage and benefits under the plans,
programs and/or arrangements of a subsequent employer (such
coverage and benefits to be determined on a
coverage-by-coverage or benefit-by-benefit basis);

	 	(6)	 	other or additional benefits in accordance
with applicable plans, programs and/or arrangements of the Company.

          (e) Termination of Employment by the Executive. (i) If the Executive terminates his
employment, other than a termination of employment due to death or retirement or Disability, the
Executive shall have the same entitlements as provided in Section 9(c) above; or (ii) If the
Executive terminates his employment as a result of a change of his duties, title or work location,
he shall have the same entitlements as provided in Section 9(d) above. (iii) A termination of the
Executive’s employment under this Section 9(e) shall be effective upon 30 days prior written
notice to the Company and shall not be deemed a breach of this Agreement.

          (g) Nature of Payments. Any amounts due under this Section 9 are in the nature of
severance payments considered to be reasonable by the Company and are not in the nature of a
penalty.

     11. Confidentiality: Assignment of Rights.

          (a) During the Term of Employment and thereafter, the Executive shall not disclose to anyone
or make use of any trade secret or proprietary or confidential information of the Company,
including such trade secret or proprietary or confidential information of any customer or other
entity to which the Company owes an obligation not to disclose such information, which he acquires
during the Term of Employment, including but not limited to records kept in the ordinary course of
business, except (i) as such disclosure or use may be required or appropriate in connection with
his work as an employee of the Company, (ii) when

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required to do so by a court of law, by any governmental agency having supervisory authority over
the business of the Company or by any administrative or legislative body (including a committee
thereof) with apparent jurisdiction to order him to divulge, disclose or make accessible such
information, or (iii) as to such confidential information that becomes generally known to the
public or trade without violation of this Section 10(a).

          (b) The Executive hereby sells, assigns and transfers to the Company all of his right, title
and interest in and to all inventions, discoveries, improvements and copyrightable subject matter
(the “rights”) which during the Term of Employment are made or conceived by him, alone or with
others, and which are within or arise out of any general field of the Company’s business or arise
out of any work he performs or information he receives regarding the business of the Company while
employed by the Company. The Executive shall fully disclose to the Company as promptly as available
all information known or possessed by him concerning the rights referred to in the preceding
sentence, and upon request by the Company and without any further remuneration in any form to him
by the Company, but at the expense of the Company, execute all applications for patents and for
copyright registration, assignments thereof and other instruments and do all things which the
Company may deem necessary to vest and maintain in it the entire right, title and interest in and
to all such rights.

     12. Noncompetition and Nonsolicitation. The Executive shall be subject to the
following covenants:

          (a) Executive agrees, on behalf of himself and his Affiliates, that during Executive’s
employment with the Company or any of its Affiliates and for a period of twelve months thereafter,
neither Executive nor any of his Affiliates will own, manage, operate or control, or participate
in the ownership, management, operation or control of, any Person engaged in the business carried
on by the Company or any of its Affiliates during the Executive’s employment with the Company or
any of its Affiliates, including, without limitation, by diverting or attempting to divert any
account or customer of the Company or any of its Affiliates.

          (b) Executive agrees, on behalf of itself and his Affiliates, that during Executive’s
employment with the Company or any of its Affiliates and for a period of twelve months thereafter,
neither Executive nor any of his Affiliates will solicit, attempt to solicit, induce or encourage
any Person who is in the employ or service of the Company or any of its Affiliates, or any of
their respective consultants or independent contractors, to terminate his or her relationship with
the Company or any of its Affiliates (as the case may be) or become employed by Executive, any of
his Affiliates, or any other Person.

          (c) It is expressly understood and agreed that the restrictions contained in this Section 11
are reasonable and necessary to protect the business of the Company and its Affiliates.
Accordingly, if a final judicial determination is made that the time, territory, scope or any
other restriction contained in this Section 11 is unreasonable or otherwise unenforceable, neither
this Agreement nor the provisions of this Section 11 shall be rendered void, but shall be deemed
amended to apply as to such maximum scope, time and territory and to such other extent as such
court may judicially determine or indicate to be reasonable, or if the court or other

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governmental authority does not so determine or indicate, to the maximum extent which any
pertinent statute or judicial decision may indicate to be a reasonable restriction under the
circumstances involved, and as so modified, the restrictions contained in this Section shall be
binding and enforceable.

          (d) Executive agrees and acknowledges that remedies at law for any breach of its obligations
under this Section 11 are inadequate and that in addition thereto the Company and its Affiliates
shall be entitled to seek equitable relief, including injunction and specific performance, in the
event of any such actual or threatened breach. Executive acknowledges that the covenants set forth
in this Section 11 are an essential element of this Agreement and that, but for the agreement of
Executive to comply with these covenants, the Company would not have entered into this Agreement.
Executive acknowledges that this Section 11 constitutes an independent covenant and shall not be
affected by performance or nonperformance of any other provision of this Agreement by the Company.

          (e) Executive acknowledges that he is also legally bound by Section 11.5 of the Agreement and
Plan of Merger dated May 25, 2006 by and among Executive and the Company and its Affiliates, among
others, which provided for the sale by Executive of his interest in Protective Products
International Corp. to the Company or its Affiliates.

     13. Indemnification.

          (a) The Company agrees that if the Executive is made a party, or is threatened to be made a
party, to any action, suit or proceeding, whether civil, criminal, administrative or investigative
(a “Proceeding”), by reason of the fact that he is or was a director, officer or employee of the
Company or is or was serving at the request of the Company as a director, officer, member,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
including service with respect to employee benefit plans, whether or not the basis of such
Proceeding is the Executive’s alleged action in an official capacity while serving as a director,
officer, member, employee or agent, the Executive shall be indemnified and held harmless by the
Company to the fullest extent legally permitted or authorized by the Company’s certificate of
incorporation or bylaws or resolutions of the Company’s Board of Directors or, if greater, by the
laws of the State of Delaware, against all cost, expense, liability and loss (including, without
limitation, reasonable attorney’s fees, judgments, fines, ERISA excise taxes or penalties and
amounts paid or to be paid in settlement) reasonably incurred or suffered by the Executive in
connection therewith, and such indemnification shall continue as to the Executive even if he has
ceased to be a director, member, employee or agent of the Company or other entity and shall inure
to the benefit of the Executive’s heirs, executors and administrators. The Company shall advance
to the Executive all reasonable costs and expenses incurred by him in connection with a Proceeding
within 20 days after receipt by the Company of a written request for such advance. Such request
shall include an undertaking by the Executive to repay the amount of such advance if it shall
ultimately be determined that he is not entitled to be indemnified against such costs and
expenses. Notwithstanding the foregoing, the Executive shall not enter into any settlement or
compromise in respect of any Proceeding for which the

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Company is obligated to indemnify the Executive under this Section 12 without the Company’s prior
written approval of the terms of such settlement or compromise.

          (b) Neither the failure of the Company (including the Board, independent legal counsel or
stockholders) to have made a determination prior to the commencement of any Proceeding concerning
payment of amounts claimed by the Executive under Section 12(a) above that indemnification of the
Executive is proper because he has met the applicable standard of conduct, nor a determination by
the Company (including the Board, independent legal counsel or stockholders) that the Executive has
not met such applicable standard of conduct, shall create a presumption that the Executive has not
met the applicable standard of conduct.

          (c) Notwithstanding anything to the contrary set forth herein, the Executive shall not be
entitled to indemnification or advancement of expenses with respect to any matter for which the
Company or any of its Affiliates may seek indemnification pursuant to that certain Agreement and
Plan of Merger dated as of May 25, 2006 by and among the Company, Ceramic Protection Corporation
of America, PPI and the Executive.

     14. Effect of Agreement on Other Benefits.

          Except as specifically provided in this Agreement, the existence of this Agreement shall not
prohibit or restrict the Executive’s entitlement to full participation in the Company’s employee
benefit plans, programs and arrangements applicable to the Company’s senior-level executives and
as approved by the Board from time to time.

     15. Assignability; Binding Nature.

          This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors, heirs (in the case of the Executive) and assigns. No rights or obligations
of the Company under this Agreement may be assigned or transferred by the Company except that such
rights or obligations may be assigned or transferred pursuant to a merger or consolidation in
which the Company is not the continuing entity, or the sale or liquidation of all or substantially
all of the assets of the Company; provided, however, that the assignee or
transferee is the successor to all or substantially all of the assets of the Company and such
assignee or transferee assumes the liabilities, obligations and duties of the Company, as
contained in this Agreement, either contractually or as a matter of law. The Company further
agrees that, in the event of a sale of assets or liquidation as described in the preceding
sentence, it shall use its commercially reasonably efforts to cause such assignee or transferee to
expressly assume the liabilities, obligations and duties of the Company hereunder or under any
other plan or benefit program referred to herein. No rights or obligations of the Executive under
this Agreement may be assigned or transferred by the Executive other than his rights to
compensation and benefits, which may be transferred only by will or operation of law, except as
provided in Section 23 below.

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     16. Representation.

          The Company represents and warrants that it is fully authorized and empowered to enter into
this Agreement and that the performance of its obligations under this Agreement will not violate
any agreement between it and any other Person. The Executive represents that there is no agreement
between him and any other Person that would be violated by the performance of his obligations under
this Agreement.

     17. Entire Agreement.

          This Agreement contains the entire understanding and agreement between the Parties concerning
the subject matter hereof and supersedes all prior agreements, understandings, discussions,
negotiations and undertakings, whether written or oral, between the Parties, with respect thereto.

     18. Amendment or Waiver.

          No provision in this Agreement may be amended unless such amendment is agreed to in writing
and signed by the Executive and an authorized officer of the Company. No waiver by either Party of
any breach by the other Party of any condition or provision contained in this Agreement to be
performed by such other Party shall be deemed a waiver of a similar or dissimilar condition or
provision at the same or any prior or subsequent time. Any waiver must be in writing and signed by
the Executive or an authorized officer of the Company, as the case may be.

     19. Severability.

          In the event that any provision or portion of this Agreement shall be determined to be
invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this
Agreement shall be unaffected thereby and shall remain in full force and effect and such provision
or portion of this Agreement shall remain in effect to the fullest extent permitted by law.

     20. Survivorship.

          The respective rights and obligations of the Parties hereunder shall survive any termination
of the Executive’s employment to the extent necessary to the intended preservation of such rights
and obligations.

     21. Beneficiaries/References.

          The Executive shall be entitled, to the extent permitted under any applicable law, to select
and change a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder
following the Executive’s death by giving the Company written notice thereof. In the event of
the Executive’s death or a judicial determination of his incompetence,

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reference in this Agreement to the Executive shall be deemed, where appropriate, to refer to his
beneficiary, estate or other legal representative.

     22. Governing Law/Submission to Jurisdiction.

          This Agreement shall be governed by and construed and interpreted in accordance with the laws
of Delaware without reference to principles of conflict of laws. Each of the Company and the
Executive hereby irrevocably and unconditionally: (i) submits for itself or himself, as applicable,
and its or his property in any legal action or proceeding relating to this Agreement, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive general
jurisdiction of the courts of the State of Delaware (ii) consents that any such action or
proceeding may be brought in such courts, and waives any objection that it or he may now or
hereafter have to the venue of any such action or proceeding in any such court or that such action
or proceeding was brought in an inconvenient forum and agrees not to plead or claim the same; (iii)
agrees that service of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, at its or his address set forth in or designated pursuant to Section 23 hereof; and (iv)
agrees that nothing herein shall affect the right to effect service of process in any other manner
permitted by law or shall limit the right to sue in any other jurisdiction.

     23. Resolution of Disputes.

          Any disputes arising under or in connection with the Agreement, other than disputes arising in
connection with Sections 11 or 12 hereof, may, at the election of the Executive or the Company, be
resolved by binding arbitration, to be held in the State of Delaware in accordance with the rules
and procedures of the American Arbitration Association. If arbitration is elected, the Executive
and the Company shall mutually select the arbitrator. If the Executive and the Company cannot agree
on the selection of an arbitrator, each Party shall select an arbitrator and the two arbitrators
shall select a third arbitrator, and the three arbitrators shall form an arbitration panel which
shall resolve the dispute by majority vote. Judgment upon the award rendered by the arbitrator(s)
may be entered in any court having jurisdiction thereof. Costs of the arbitration or litigation,
including, without limitation, reasonable attorneys’ fees of both Parties, shall be borne by the
Company; provided, however, that, if a dispute is resolved in favor of the Company, the
Executive shall bear his own costs of the arbitration or litigation and shall reimburse the Company
for the Executive’s costs of the arbitration or litigation previously paid by the Company. Pending
the resolution of any arbitration or court proceeding, the Company shall continue payment of all
amounts due the Executive under this Agreement and all benefits to which the Executive is entitled
at the time the dispute arises.

     24. Notices.

          Any notice given to a Party shall be in writing and shall be deemed to have been given when
delivered personally or sent by certified or registered mail, postage prepaid, return receipt
requested, duly addressed to the Party concerned at the address indicated below or to such changed
address as such Party may subsequently give such notice of:

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	If to the Company:

	 	Ceramic Protection Corp.
	 

	 	101 Lake Drive
	 

	 	Newark, DE 19702
	 
	 	 
	If to the Executive:

	 	Steve Giordanella
	 

	 	c/o Protective Products International Corporation
	 

	 	530 Sawgrass Corporate Parkway

Sunrise, Florida 33325

     25. Headings.

          The headings of the sections contained in this Agreement are for convenience only and shall
not be deemed to control or affect the meaning or construction of any provision of this Agreement.

     26. Counterparts.

          This Agreement may be executed in two or more counterparts.

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

	 	 	 	 	 	 	 
	CERAMIC PROTECTION CORP.	 	AGREED AND ACCEPTED	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Larry Moeller	 	 	 	 
	Name:

	 	Larry Moeller

	 	 /s/
Steve Giordanella	 	 
	 

	 	 	 	 	 	 
	Title:

	 	Chairman
	 	Steve Giordanella	 	 

12EX-10.3.1

Exhibit 10.3.1

3905 – 32nd Street N.E.

Calgary, Alberta T1J7C1

CERAMIC PROTECTION CORPORATION

STOCK OPTION PLAN

 

	1.	 	Pursuant to the authority granted by a resolution of the Board of Directors of Ceramic
Protection Corporation (the “Corporation”) and subsequently adopted by the shareholders of the
Corporation at a special meeting of shareholders held on April 26, 2001, a stock option plan
(the “Plan”) for employees, officers, directors and consultants of the Corporation or of any
subsidiary of the Corporation has been established with the intent of advancing the interests
of the Corporation by encouraging and enabling the acquisition of a share interest in the
Corporation by the participants.

	2.	 	The Board of Directors, or any committee thereof specifically designated by the Board of
Directors to be responsible therefor, shall from time to time by resolution designate those
employees, officers, directors and consultants of the Corporation or of any subsidiary of the
Corporation, if any, who, in the opinion of the Board of Directors or committee thereof, are
largely responsible for the management and growth of the Corporation or of any subsidiary of
the Corporation and who, as an additional inducement to promote the best interests of the
Corporation, are entitled to participate in the Plan (herein referred to as “Participants”, or
singularly as a “Participant”) and shall determine the extent and terms of such participation.
The judgment of the Board of Directors, or committee thereof, in designating Participants and
the extent of their participation shall be final and conclusive; provided, however, that each
designated Participant shall have the right not to participate in the Plan and any decision
not to participate therein shall not affect his employment by or engagement with the
Corporation. The Board of Directors, or committee thereof, shall be responsible to ensure that
Participants under the Plan are eligible to participate under the Plan as an employee,
officer, director or consultant of the Corporation or any subsidiary of the Corporation, and,
if required by any stock exchange on which the Common Shares are then listed or other
regulatory body having jurisdiction, shall represent, confirm and provide evidence of such
eligibility as may be required.

	3.	 	The total number of authorized but unissued Common Shares of the Corporation allocated and
made available to be granted to Participants under the Plan, together with any authorized but
unissued Common Shares reserved but unissued under any previous stock option plan of the
Corporation, shall not exceed 750,000 Common Shares. The aggregate number of Common Shares
which may be reserved for issuance under the Plan to any one particular Participant shall not
exceed five percent (5%) of the issued and outstanding Common Shares of the Corporation at the
date of grant. The aggregate number of Common Shares which may be reserved for issuance to
“insiders” (as such term is referred to in the policies of the Toronto Stock Exchange) of the

 

 

	 	 	Corporation under the Plan shall not exceed ten percent (10%) of the issued and outstanding
Common Shares of the Corporation at the date of grant. Additionally, during any one-year
period, the Corporation shall not grant to such insiders a number of Common Shares exceeding
ten percent (10%) of outstanding Common Shares of the Corporation, or to any one insider and
such insider’s associates, a number of Common Shares exceeding five percent (5%) of the
outstanding Common Shares of the Corporation.

	4.	 	Except as provided in paragraph 10 hereof, or by the laws of descent and distribution, the
rights of a Participant hereunder are personal to him and are not assignable or transferable.

	5.	 	No resident of the United States of America or any territory or possession thereof may be a
Participant unless participation in the Plan is in accordance with, and without violating, any
securities or other legislation of the United States of America or any state, territory or
possession thereof.

	6.	 	The Board of Directors, or any committee thereof specifically designated by the Board of
Directors to be responsible therefor, shall have the unfettered right to interpret the
provisions of the Plan and to make such regulations and formulate such administrative
provisions for carrying the Plan into effect and to make such changes therein and in the
regulations and administrative provisions therein as, from time to time, the Board of
Directors or committee thereof deems appropriate and in the best interests of the Corporation;
provided, however, that no such changes or amendments may be made to the Plan without any
necessary prior written consent of any stock exchange on which the Common Shares of the
Corporation may then be listed and posted for trading. The Board of Directors shall also have
the unfettered right from time to time and at any time to rescind or terminate the Plan as it
shall deem advisable; provided, however, that no such rescission or termination shall impair
or change the rights and options theretofore granted under the Plan without the prior written
consent of the Participant or Participants affected and any necessary prior written consent of
any stock exchange on which the Common Shares of the Corporation may then be listed and posted
for trading.

	7.	 	The Corporation shall pay all costs of administering the Plan.

	8.	 	The exercise price of the shares purchased pursuant to stock options granted hereunder shall
be not less than that permitted by the applicable regulations and policies of the stock
exchange on which the Common Shares of the Corporation are from time to time listed and in no
case less than the closing market price of the Common Shares of the Corporation immediately
prior to the day of the granting of the stock options, less any discounts as may be
permissible, if any.

	9.	 	Each option granted hereunder shall be for a term not exceeding ten (10) years and, unless
the Board of Directors or committee thereof determines otherwise, shall be exercisable in
whole or in part at any time during the term subject to such vesting provisions, terms,
conditions or limitations as are herein contained or as the Board of Directors or committee
thereof may from time to time impose in the option or, further, as may be required by any
stock exchange on which the Common Shares of the Corporation may then be listed and posted for
trading. Each Participant shall execute a

 

 

	10.	 	stock option agreement, in such form as may be approved from time to time by the Board of
Directors, prior to the grant of any stock option to such Participant becoming effective.

	 
	11.	 	In the event of the death of the Participant while engaged as an employee, officer, director or
consultant of the Corporation on or prior to the expiry date of his stock options, any option
granted hereunder may be exercised, up to the extent that the Participant was entitled to exercise
such option at the date of death of the Participant, by the legal personal representative(s) of the
Participant, at any time up to and including one (1) year, unless specified otherwise in the stock
option agreement, following the death of the Participant, after which date the option shall
forthwith expire and terminate and be of no further force or effect whatsoever.
	 
	12.	 	In the event the Participant’s employment by or engagement with the Corporation is terminated
by the Corporation or the Participant for any reason, other than death, the Participant shall have
three (3) years in the case of a Participant who is a full time employee of the Corporation and one
(1) year in all other cases, subject to such shorter period as may be otherwise specified in the
stock option agreement, from the date of such termination to exercise such of the option in respect
of which such option has not been previously exercised, up to the extent that the Participant was
entitled to exercise such option at the date of termination of the Participant, and thereafter his
option shall expire and all rights to purchase shares hereunder shall cease and expire and be of no
further force or effect.
Options shall not be affected by any change of employment so long as the Participant continues
to be employed by the Corporation or any of its subsidiaries, or continues to be a director,
officer or consultant of one of the foregoing.

	13.	 	Subject to the provisions of the Plan, the options granted hereunder may be exercised from time
to time by delivery to the Corporation at its head office of a written notice of exercise
specifying the number of Common Shares with respect to which the option is being exercised and
accompanied by payment in full of the purchase price of the Common Shares then being purchased by
way of cash or certified cheque in favor of the Corporation. Such notice shall contain the
Participant’s undertaking to comply, to the satisfaction of the Corporation and its counsel, with
all applicable requirements of any stock exchange or exchanges upon which any securities of the
Corporation are from time to time listed and any applicable regulatory authorities.
	 
	14.	 	Subject to the required action by its shareholders, if the Corporation shall be a party to any
reorganization, merger, dissolution or sale or lease of all or substantially all its assets,
whether or not the Corporation is the surviving entity, an option under the Plan shall be adjusted
so as to apply to the securities to which the holder of the number of Common Shares of capital
stock of the Corporation subject to the option would have been entitled by reason of such
reorganization, merger or sale or lease of all or substantially all of its assets; provided,
however, that the Corporation may satisfy any obligations to a Participant hereunder by paying to
the said Participant in cash the difference between the exercise price of all unexercised options
granted hereunder and the fair market value of the securities to which the Participant would be
entitled upon exercise of all unexercised options, regardless of whether all conditions of exercise
relating to continuous employment have been satisfied. Adjustments under this paragraph or any
determinations as to the fair market value of any securities shall be made by the Board of
Directors, or any committee thereof specifically designated by

 

 

	15.	 	the Board of Directors to be responsible therefor, and any reasonable determination made by the
said Board or committee thereof shall be binding and conclusive.
	 
	16.	 	In the event of any subdivision or subdivisions of the Common Shares of the Corporation, as
said Common Shares were constituted at the time any options granted hereunder were granted, into a
greater number of Common Shares, the Corporation will thereafter deliver at the time of exercise
thereof, in addition to the number of Common Shares in respect of which the option is then being
exercised, such additional number of Common Shares as a result from said subdivision or
subdivisions of the Common Shares for which the option is being exercised, without the Participant
exercising the option making any additional payment or giving any other consideration therefor.
	 
	17.	 	In the event of any consolidation or consolidations of the Common Shares of the Corporation as
said Common Shares were constituted at the time while any options granted hereunder were granted,
into a lesser number of Common Shares, the Participant shall accept, at the time of the exercise
thereof, in lieu of the number of Common Shares in respect of which the option is then being
exercised, the lesser number of Common Shares as a result from such consolidation or consolidations
of the Common Shares for which the option is being exercised.
	 
	18.	 	In the event of any change of the Common Shares of the Corporation, as said Common Shares are
constituted at the time while any options granted hereunder were granted, the Corporation shall
thereafter deliver at the time of the exercise thereof the number of securities of the appropriate
class resulting from the said change as the Participant exercising the option would have been
entitled to receive in respect of the number of securities so purchased had the option been
exercised before such change, subject to regulatory approval.
	 
	19.	 	The Corporation shall not be obligated to issue fractional securities in satisfaction of any of
its obligations hereunder.
	 
	20.	 	If at any time the Corporation grants to the holders of its capital stock rights to subscribe
for and purchase pro rata additional securities of the Corporation or of any other corporation or
entity, there shall be no adjustments made to the number of Common Shares or other securities
subject to the option in consequence thereof and the said stock option of the Participant shall
remain unaffected.

IN WITNESS WHEREOF the Corporation has caused its corporate seal to be affixed hereto in the
presence of its officers duly authorized in that behalf as of April 26, 2001.

	 	 	 	 	 
	 	CERAMIC PROTECTION CORPORATION

 	 
	 	     Per:  	/s/ Ron Wallace	 
	 	RON WALLACE 	 
	 	 	 
	 	     Per: 
	 /s/ Larry Moeller	 
	 	LARRY MOELLER

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