Document:

Exhibit 35 (10)

    
      

      

    

    Exhibit
      10.32

     

    

     

    

       

      EMPLOYMENT
        AGREEMENT 

      

      This
        Agreement, effective as of the 1st day of February 2006 (the “Effective Date”),
        executed on the dates written hereafter is made by and between 

      

      Chapeau,
        Inc., d/b/a BluePoint Energy, Inc. (“Company”), whose business address
        is

      1190
        Suncast Lane, Suite 2, El Dorado Hills, California 95762; and

      

      Steve
        Brandon (“Employee”), whose mailing address is 12 Industrial Parkway,
        Carson City, Nevada 89706; 

      

      both
        of
        which entities are referred to herein as the “Parties.”

      

      RECITALS

      

      A.    Company
        is in the business of developing, manufacturing, selling and servicing power
        generation, cogeneration, and tri-generation systems and energy service
        agreements for end-users in need of reliable, efficient, ultra-clean, and
        economic power solutions.

      

      B.    In
        the
        course of Company’s business certain confidential and proprietary information is
        developed which Company intends to treat as trade secrets.

      

      C.    Company
        and its officers, and employees receive confidential and proprietary information
        from Company’s customers and other third parties for which Company has
        contractual obligations to maintain such information in confidence.

      

      D.    It
        is
        anticipated that in the course of performing services for Company, Employee
        will
        develop inventions or work which may be protectable by patent, trademark
        or
        copyright laws which will belong solely to Company.

      

      E.    It
        is
        desirable to specify how matters of confidentiality and assignment of rights
        will be handled and to enumerate Employee’s rights and obligations with respect
        to Company.

      

      AGREEMENTS

      

      NOW
        THEREFORE,
        in
        consideration of the foregoing Recitals and of the covenants and agreements
        hereinafter contained, and other good and valuable consideration the receipt
        and
        sufficiency of which are now acknowledged, the undersigned parties, intending
        to
        be legally bound, hereby covenant and agree as follows: 

      

      

      1190
        Suncast Lane, Suite 2 ·
        El Dorado Hills, CA 95762 ·
        P - 916.939.8700 ·
        F - 916.939.8705

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                1)

              	
                Definitions.

              

      

      

      
        	 	
                a)

              	
                Confidential
                  Information
                  shall mean any information, whether tangible or intangible, including
                  scientific or technical information, design, product, processes,
                  procedure, composition, pattern, devices, plans, formulae, improvements,
                  business or financial information, data bases, or other information
                  which
                  gives the owner of the information a competitive advantage and
                  which the
                  owner has taken steps to protect from disclosure to persons other
                  than
                  those selected by the owner to receive such information. Confidential
                  Information
                  does not include information, which becomes publicly known through
                  lawful
                  means, or information that was rightly in Employee’s possession prior to
                  the Effective Date. Confidential
                  Information
                  includes that owned by Company or any of Company’s customers, which
                  becomes known to Employee in the course of his employment hereunder.
                  Confidential
                  Information
                  also includes information obtained by Company from a third party
                  under
                  obligations to maintain its confidentiality. Confidential
                  Information
                  includes, but is not limited to, “trade secrets,” but Confidential
                  Information
                  need not satisfy the legal definition or requirements of a “trade secret”
                  to be protected under this
                  Agreement.

              

      

      

      
        	 	
                b)

              	
                Intellectual
                  Property
                  shall mean work product, functional designs, technical designs,
                  and
                  software including programs, modules, code, algorithms, flowcharts,
                  data
                  diagrams, documentation and the like, tangible and intangible products,
                  inventions, developments, manufacturing processes, copyrights,
                  improvements, concepts and ideas, whether patentable or not. Intellectual
                  Property
                  shall also mean all Intellectual
                  Property
                  which is related to, or is capable of use in any way in connection
                  with
                  Company’s business or its corporate affiliates and made, conceived,
                  developed, or perfected by Employee, alone or with others, as a
                  result of
                  performance of his duties under this Agreement or two years after
                  the
                  termination of this Agreement, during any prior relationship with
                  Company,
                  from the use of any Company facilities, resources, or proprietary
                  information, and/or made, conceived, developed, perfected by Employee
                  as a
                  result of Employee’s association with
                  Company.

              

      

      

      
        	 	
                c)

              	
                "Customer"
                  and "Prospective Customer" Defined.
                  As
                  used herein, the term "Customer" shall include any person or entity
                  to
                  whom services or products are sold by Company, and any person or
                  entity
                  with whom Company has established strategic marketing, services
                  or other
                  alliances. The term "Prospective Customer" shall include any person
                  or
                  entity toward whom Company has directed efforts to establish a
                  customer
                  relationship or strategic alliance and with whom Company has a
                  reasonable
                  expectation of establishing such a relationship or
                  alliance.

              

      

      

      
        	
                2)

              	
                Employment.
                  Company hereby employs the Employee, and Employee hereby accepts
                  employment with Company on the terms set out in this
                  Agreement.

              

      

      

      
        	
                3)

              	
                Scope
                  of Duties. Employee
                  is engaged generally to perform those duties described in Appendix
                  A and
                  those duties assigned by the Chief Operating Officer of Company
                  from time
                  to time and all related duties. Employee agrees to devote his full
                  business time and attention exclusively to the performance of these
                  duties
                  and further agrees to perform these duties faithfully, industriously,
                  and
                  to the best of his ability, experience, and talents, and to the
                  reasonable
                  satisfaction of Company. Such duties shall be provided at such
                  place(s) as
                  the needs, business, or opportunities of Company may
                  require.

              

      

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      
        	
                4)

              	
                Supervisor.
                  Employee will be a member of the Company’s Executive Management Team
                  reporting and responsible to the Chief Operating Officer of Company
                  or
                  such other authorized representative of Company as may be identified
                  to
                  Employee by the Chief Operating Officer, Chief Executive Officer
                  or the
                  Board of Directors of Company.

              

      

      

      
        	
                5)

              	
                Compensation and
                  Benefits.
                  Company will pay the following compensation to Employee pursuant
                  to this
                  Agreement:

              

      

      

      a.    Beginning
        on the Effective Date, Company will pay Employee salary at the rate of $140,000
        (One Hundred and Forty Thousand and 00/100 United States Dollars) per year,
        payable on Company’s normal payroll cycle, which salary shall be subject to
        required withholding and employment taxes levied by federal, state and local
        governments. Such salary may be adjusted from time to time by mutual agreement
        of the parties. Employee will have periodic performance reviews in accordance
        with Company’s policy at which time Employee’s compensation will be
        addressed.
        All
        other provisions of this Agreement will remain unchanged.

      

      b.    Employee
        will be granted options to purchase 500,000 (Five Hundred Thousand) shares
        of
        the Company’s common stock which options will have a per share exercise price of
        $0.30 and will vest ratably over the succeeding 36 months from the Effective
        Date. Other terms and conditions concerning the stock options will be further
        delineated to a stock option agreement to be drafted by the Company’s
        counsel.

      

      c.    Company
        may create and change from time to time employee handbooks and/or policy
        manuals
        and provide same to Employee. Such handbooks or policy manuals are intended
        to
        provide instruction and guidance to employees concerning operating procedures
        and current working policies of the Company but shall not be deemed to be
        and
        Employee understands that they are not a contract between the parties and
        are
        not part of this Agreement. The Company is free to follow or not follow
        procedures and policies set forth in the handbooks or policy manuals depending
        upon the business needs and conditions as solely determined by the Company.
        Employee may not rely upon anything contained in such handbooks or policy
        manuals as requiring any specific or general action of Company.

      

      d.    The
        Company maintains various employee benefit plans including a medical plan.
        The
        Company will permit Employee to become a participant in any medical, optical,
        dental and life insurance plan, pension plan, profit sharing plan, and/or
        performance award programs established by Company, provided Employee has
        become
        eligible to participate in such plan or program according to the terms and
        conditions of said plan or program. Employee shall be eligible for vacation,
        sick time, and holidays in accordance with the policies and practices of
        the
        Company. Vacation must be taken at a time convenient to Company and must
        be
        approved in advance by Company. 

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      e.    Company
        reserves the absolute right to make any changes in assignment, personnel,
        or
        employee benefits at any time.

      

      6.   Employment
        Term.
        Employee’s employment shall continue for a period of three years (such
        three-year period is referred to herein as the “Full Employment Term” from the
        Effective Date of this Agreement, unless Employee’s employment is terminated
        prior to the expiration of the Full Employment Term, as provided in this
        Section
        6 of the Agreement (such shorter period is referred to herein as the “Employment
        Term”). Employee’s obligations as specified in Sections 7-14 below, shall
        survive any termination of this Agreement.

      

      a.    Termination
        For Cause.
        Company
        may terminate Employee’s employment for cause as defined in Section 6(a)(ii)
        below.

      

      
        	 	
                i.

              	
                If
                  Company terminates Employee’s employment for cause, Employee shall be
                  entitled to receive payment of that portion of Employee’s annual salary
                  under Section 5(a) that Employee earned through and including the
                  Termination Date at the rate of the annual salary in effect at
                  that time,
                  but shall be entitled to no other compensation under this
                  Agreement.

              

      

      

      
        	 	
                ii.

              	
                Termination
                  “for cause” shall mean termination by the Company of Employee’s employment
                  with Company because of (A) any act or omission that constitutes
                  a
                  material breach by Employee of his obligations under this Agreement,
                  including, but not limited to, Employee’s breach of Sections 8-10 of this
                  Agreement; (B) any failure, willful or otherwise, by Employee to
                  perform
                  the duties, meet the performance criteria or to otherwise serve
                  Company in
                  the capacities prescribed by the Company in accordance with Section
                  3,
                  provided that with respect to the first occurrence only of any
                  such
                  willful failure, such willful failure remains uncured more than
                  ten (10)
                  business days after the date on which the Company first provides
                  written
                  notice of such first occurrence or willful failure to Employee;
                  (C) a
                  criminal conviction, guilty plea, or no contest plea of Employee
                  for any
                  felony, any drug related offense, or a crime involving an act of
                  moral
                  turpitude; or (D) Employee’s perpetration of an act of fraud or
                  embezzlement against Company.

              

      

      

      
        	 	
                iii.

              	
                Company
                  may terminate for cause Employee’s employment with Company by giving
                  written notice to Employee at least twenty-four (24) hours prior
                  to the
                  Terminate Date. “Termination Date” shall mean the actual date Employee
                  terminates employment with Company as a result of action taken
                  by the
                  Company, and not as a result of Employee’s resignation from employment as
                  provided in Section 6(b).

              

      

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      b.    Resignation.
        Employee
        may resign his employment with Company at any time for any reason by providing
        written notice to the Supervisor set forth in Section 4 of this Agreement
        of the
        resignation at least thirty (30) days, but not more than one hundred twenty
        (120) days, prior to the effective date the resignation (the “Resignation
        Notice”). The effective date of Employee’s resignation shall be that date
        specified in the Resignation. Employee shall not make public any information
        relating to his resignation until the Resignation Date. If Employee resigns
        from
        his employment, Employee shall be entitled to receive payment of that portion
        of
        Employee’s annual salary under Section 5(a) that Employee earned through and
        including the Resignation Date at the rate of annual salary in effect at
        that
        time, but shall be entitled to no other compensation under this
        Agreement.

      

      c.    Termination
        Other Than For Cause.
        If,
        prior to the expiration of the Full Employment Term, Company terminates
        Employee’s employment other than for cause or Permanent Disability, Employee
        shall be entitled to receive, in addition to amounts payable pursuant to
        Section
        6(e), payment of that portion of Employee’s annual salary under Section 5(a)
        that Employee earned through and including the Termination Date at the rate
        of
        annual salary in effect at that time.

      

      d.    Disability.
        Employee shall be deemed “Permanently Disabled” when he is deemed permanently
        disabled in accordance with the disability insurance policy of Company in
        effect
        at the time of the illness or injury causing the disability, or, in the event
        no
        disability policy is in effect, in accordance with the disability policy
        of
        Company last in effect. If, Employee becomes Permanently Disabled, the Company
        may terminate Employee’s employment with Company as a result of the Permanent
        Disability by providing written notice to Employee at least seventy-two (72)
        hours prior to the Termination Date. If Employee resigns from Employment
        with
        Company as a result of a Permanent Disability or Company terminates Employee’s
        employment as a result of a Permanent Disability, Employee shall be entitled
        to
        that portion of the annual salary, at the rate in effect when he became
        Permanently Disabled, that he earned through and including his last day of
        employment with Company.

      

      e.    Compensation
        Following Termination.
        If
        employee’s termination of employment is pursuant to Section 6(c) of this
        Agreement, in addition to any other amounts due or benefits to be paid to
        Employee pursuant to this Agreement, Company shall pay to Employee, or to
        Employee’s estate or personal representative, an amount equal to the annual
        salary under Section 5(a) to which Employee would have been entitled had
        the
        Employee remained employed by Company for the Full Employment Term (the annual
        salary, divided by twelve, multiplied by the number of whole or fractional
        months remaining in the Full Employment Term after Employee’s last day of
        employment with Company), to be paid in four equal quarterly installments
        on the
        first day of each consecutive subsequent calendar quarter, or the next business
        day if the first such day is a Saturday, Sunday or legal holiday, provided
        that
        if termination of employment occurs during the last year of the Full Employment
        Term, any unpaid amount owed to Employee shall be paid no later than the
        last
        day of the Full Employment Term.

      

      7.   Noninterference
        with Third Party Rights. Company
        is employing Employee with the understanding that during the Term of
        Employment:

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      a.    Employee
        is free to enter into employment with Company; and 

      

      b.    Only
        Company is entitled to benefit from Employee’s work. Company has no interest in
        using any third party’s patents, copyrights, trade secrets, or trademarks in any
        unlawful manner. Employee will not use for the benefit of, or divulge to
        Company, or its personnel, any proprietary information of a third party without
        the prior written permission of the third party.

      

      8.   Non-disclosure
        of Confidential Information.
        Due to
        the nature of Employee’s duties hereunder, he will have access to and will
        acquire or develop, Confidential
        Information.
        Employee acknowledges that Confidential
        Information
        has been
        developed by its owner at great expense and effort, are being revealed in
        strict
        confidence solely for the purpose of allowing Employee to perform duties
        for
        Company, and that disclosure of Confidential
        Information,
        could
        cause substantial damage to Company and third parties. Therefore, Employee
        agrees that:

      

      a.    Employee
        shall use Confidential
        Information
        only in
        performing duties and services related to his employment at Company and will
        only discuss Confidential
        Information
        with
        other authorized employees of Company and only when necessary to the performance
        of his duties.

      

      b.    During
        the term of this Agreement and afterward, Employee will hold all Confidential
        Information
        in
        strict confidence for the sole benefit of Company and will not induce or
        permit
        others to use or have access to any Confidential
        Information
        for any
        purpose whatsoever except as provided for in this Agreement. Employee will
        not
        use, reveal, copy, disclose, discuss, transfer or remove any Confidential
        Information
        except
        as necessary to perform his duties hereunder.

      

      c.    At
        no
        time will Employee use any Confidential
        Information
        for
        Employee’s own commercial and business purposes, including participation as an
        employee, partner, director, investor, officer, stockholder, member, or joint
        venture participant in any commercial or business enterprise, nor shall Employee
        take, use, copy, transfer, conceal or retain possession of property representing
        the Confidential
        Information
        for
        Employee’s own use or for the use of any other person.

      

      9.   Assignment
        of Intellectual Property.
        During
        the duration of this Agreement and for two years thereafter, Employee may,
        either alone or with others, during working hours or not, develop Intellectual
        Property, which
        may
        be protectable by patent, trademark or copyright law. Employee agrees that
        as
        consideration for this Agreement, Company will solely own all Intellectual
        Property
        and all
Intellectual
        Property will
        be
        considered “work made for hire.” If by operation of law or otherwise, any
Intellectual
        Property is
        not
“work made for hire” or if ownership of all right, title, and interest in the
Intellectual
        Property
        does not
        vest exclusively in Company, Employee hereby irrevocably assigns, to Company
        its
        successors and assigns, Employee’s entire right, title, and interest in and to
        all Intellectual
        Property
        including all patents, applications, trademarks, and copyrights. Employee
        agrees
        that such assignment is supported by adequate consideration under this
        Agreement.

      

      Employee
        agrees to disclose promptly and fully to the Company all Intellectual
        Property
        and to
        advise Company’s president or designated intellectual property manager of all
Intellectual
        Property.
        Employee shall also keep and maintain adequate and current written records
        of
        all such Intellectual
        Property
        describing its nature, use, and operation. Records shall be in the form of
        notes, sketches and drawings or reports relating thereto, and will be the
        property of, and available to, the Company at all times.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      Concepts,
        copyrights, and inventions which do not relate, directly or indirectly to
        Company’s business or which Employee developed independent of his association
        with Company or Company’s business and on his own without use of Company’s time,
        resources, equipment or Confidential
        Information
        are
        expressly excluded from “works made for hire.” Any inventions owned by Employee
        prior to the Effective Date are enumerated in Appendix B hereto and are excluded
        from Employee's obligations under this Agreement. If not listed, the Parties
        agree that it shall be conclusively presumed that any relevant Intellectual
        Property
        which
        may have been listed, whether completed or not, at the execution of this
        Agreement, were not listed because they are agreed to belong exclusively
        to
        Company.

      

      Employee
        will promptly deliver all Intellectual
        Property
        to
        Company and at the request of the Company, will execute and deliver all proper
        assignments thereto.

      

      10. 
          Protection
        and Maintenance.
        At the
        request of the Company, Employee will at any time do all things reasonably
        required in order to protect and maintain Company’s rights in Intellectual
        Property
        including executing all proper papers for use in applying for, obtaining
        and
        maintaining United States and foreign patents and/or copyrights relating
        to
Intellectual
        Property
        as the
        Company may desire, but at the sole expense of the Company or its
        affiliate.

      

      11.    
         Not
        Used

      

      12.     Company
        Right to Injunctive Relief. In
        the
        event of the breach or threatened breach of Sections 8-11 of this Agreement
        by
        Employee, Company shall be entitled to all appropriate legal and equitable
        relief, including without limitation temporary restraining orders, preliminary
        and permanent injunctions, and monetary damages. The parties agree that in
        the
        event of a breach of this Agreement, the total damages sustained by Company
        may
        be difficult or impossible to ascertain. The parties hereby agree that no
        performance bond is necessary in obtaining the equitable relief provided
        for in
        this Section 12.

      

      13.   
         Severability.
        If any
        provision of this Agreement as applied to any party or to any circumstances
        is
        adjudged by a court to be unreasonable, invalid or unenforceable as written
        as
        to duration, geographic scope, nature or scope of activities affected, nature
        or
        scope of information covered, or in any other respect, the same will in no
        way
        affect any other provision hereof, the application of such provision in any
        other circumstances, or the validity or enforceability of this Agreement.
        The
        parties agree that the court making a determination that any provision hereof
        is
        unreasonable, invalid or unenforceable as written will have the power to
        reduce
        or alter the duration, area, nature or scope of the subject provision, and
        in
        its reduced or altered form or version such provision will then be enforceable
        and will be enforced.

      

      14.   
         Return
        of Property.
        Upon
        termination of this Agreement, Employee shall deliver all Company’s property
        (including keys, documents, records, notes, electronic data, memoranda, models,
        and equipment) and Confidential
        Information, which
        is
        in Employee’s possession or under Employee’s control.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

      15.   
         Non-waiver.
        The
        failure of either Party to enforce at any time any of the provisions of this
        Agreement, or to take action as a result of any breach of any provisions
        of this
        Agreement, shall in no way be considered to be a waiver of such provisions
        or in
        any way to affect the validity of this Agreement.

      

      16.   
         Non-assignment.
        This
        Agreement constitutes a personal contract and Employee shall not transfer
        or
        assign his rights or obligations hereunder; provided, however, Employee may
        assign his right to receive all or part of Employee’s compensation upon giving
        Company written notice of such assignment. Payment in accordance with such
        assignment shall be deemed a fulfillment of Company’s obligations
        hereunder.

      

      17.
             Binding
        Effect.
        This
        Agreement shall inure to the benefit of and be binding upon Company, its
        successors and assigns and on Employee, his heirs, guardians and personal
        or
        legal representatives.

      

      a.    Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of California, irrespective of where Employee’s duties are to be
        performed. The invalidity or unenforceability of any provisions hereof shall
        in
        no way affect the validity or enforceability of any other
        provision.

      

      18.    
         Entire
        Agreement.
        This
        Agreement contains the entire agreement of the Parties and may be amended,
        extended, or rescinded only by a writing signed by the Parties.

      

      19.    
         Company’s
        Additional Rights.
        This
        Agreement will be supplemental to and not in derogation of any rights which
        Company may have concerning any matter covered in this Agreement, including
        but
        not limited to any information which may have been obtained by Employee during
        the course of his employment or any Intellectual
        Property
        which he
        has made or may make.

      

      20.    
         Notices.
        All
        notices required or permitted under this Agreement shall be deemed delivered
        when delivered in person or deposited in the United States mail, postage
        prepaid, addressed to the parties at the addresses designated in the first
        paragraph of this Agreement. Notices to Company shall be in care of its Chief
        Operating Officer.

      

      IN
        WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
        written below. The Employee acknowledges receipt of a completed copy of this
        Agreement.

      

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      
        	
                CHAPEAU,
                  INC d/b/a BLUEPOINT

              	
                STEVE
                  BRANDON

              
	
                ENERGY,
                  INC.

              	 
	 	 
	
                By Neil
                  C.
                  Bokamper                                                  
                  

              	
                By 
                  /s/ Steve
                  Brandon                                          
                  

              
	 	 
	
                Title
                   Executive
                  Vice
                  President                                      
                  

              	
                Date
                   01/31/2006                                                
                  

              
	 	 
	
                Date 02/01/2006                                                         
                  

              	 

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      APPENDIX
        A

      

      SCOPE
        OF DUTIES 

      

      Employee
        will be responsible for acting as Executive Vice President of Manufacturing
        Operations with initial responsibilities focusing on the areas of production,
        product design, manufacturing process development and documentation The Employee
        will be a member of the Company’s Executive Management Team
        under
        the direction of the Company’s Chief Operating Officer. 

      

      Employee
        and Company agree that each of them will, within 120 days of Employee’s
        Employment, use his best efforts to agree to and document a detail scope
        of
        duties, including performance milestones and/or other Employee performance
        criteria as well as corresponding incentive compensation programs which might
        include one or more of the following elements: (i) annual bonus; (ii) salary
        increase; (iii) additional stock options. At a minimum, the Parties agree
        that
        the performance criteria are currently intended to include: (i) design,
        development and release within the first 9 months of Employment of a first
        and
        second generation CHP module communication and control system for integration
        in
        the Company’s current and prospective product lines; and (ii) design and release
        to production within the first 12 months of Employment the currently
        contemplated Lean-One® CHP Module integrating an extended (12+-foot)
        enclosure. 

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      APPENDIX
        B

      

      PREEXISTING
        INVENTIONS, COPYRIGHTS, CONCEPTS,

      WORKS,
        ETC. WHICH BELONG TO EMPLOYEE

      

       

      None.

       

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
11Exhibit 36 (10)

    
      

      

    

    Exhibit
      10.33

    

    
      

         

        

        EMPLOYMENT
          AGREEMENT 

        

        This
          Agreement, effective as of the 1st day of July 2006 (the “Effective Date”),
          pursuant to action of the Company’s Board of Directors on the 15th
          day of
          November 2005 and executed on the dates written hereafter is made by and
          between

        

        Chapeau,
          Inc., d/b/a BluePoint Energy, Inc. (“Company”), whose business address
          is

        1190
          Suncast Lane, Suite 2, El Dorado Hills, California 95762; and

        

        Steven
          C.
          Lagorio (“Employee”), whose mailing address is 8234 Cantershire Way, Granite
          Bay, California 95746; 

        

        both
          of
          which entities are referred to herein as the “Parties.”

        

        RECITALS

        

        A.    Company
          is in the business of developing, manufacturing, selling and servicing
          power
          generation, cogeneration, and tri-generation systems and energy service
          agreements for end-users in need of reliable, efficient, ultra-clean, and
          economic power solutions.

        

        B.    In
          the
          course of Company’s business certain confidential and proprietary information is
          developed which Company intends to treat as trade secrets.

        

        C.    Company
          and its officers, and employees receive confidential and proprietary information
          from Company’s customers and other third parties for which Company has
          contractual obligations to maintain such information in confidence.

        

        D.    It
          is
          anticipated that in the course of performing services for Company, Employee
          will
          develop inventions or work which may be protectable by patent, trademark
          or
          copyright laws which will belong solely to Company.

        

        E.    It
          is
          desirable to specify how matters of confidentiality and assignment of rights
          will be handled and to enumerate Employee’s rights and obligations with respect
          to Company.

        

         

         

        1190
          Suncast Lane, Suite 2 ·
          El Dorado Hills, CA 95762 ·
          P - 916.939.8700 ·
          F - 916.939.8705

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        AGREEMENTS

        

        NOW
          THEREFORE,
          in
          consideration of the foregoing Recitals and of the covenants and agreements
          hereinafter contained, and other good and valuable consideration the receipt
          and
          sufficiency of which are now acknowledged, the undersigned parties, intending
          to
          be legally bound, hereby covenant and agree as follows: 

        

        
          	
                  1)

                	
                  Definitions.

                

        

        

        
          	 	
                  a)

                	
                  Confidential
                    Information
                    shall mean any information, whether tangible or intangible, including
                    scientific or technical information, design, product, processes,
                    procedure, composition, pattern, devices, plans, formulae, improvements,
                    business or financial information, data bases, or other information
                    which
                    gives the owner of the information a competitive advantage and
                    which the
                    owner has taken steps to protect from disclosure to persons other
                    than
                    those selected by the owner to receive such information. Confidential
                    Information
                    does not include information, which becomes publicly known through
                    lawful
                    means, or information that was rightly in Employee’s possession prior to
                    the Effective Date. Confidential
                    Information
                    includes that owned by Company or any of Company’s customers, which
                    becomes known to Employee in the course of his employment hereunder.
                    Confidential
                    Information
                    also includes information obtained by Company from a third party
                    under
                    obligations to maintain its confidentiality. Confidential
                    Information
                    includes, but is not limited to, “trade secrets,” but Confidential
                    Information
                    need not satisfy the legal definition or requirements of a “trade secret”
                    to be protected under this
                    Agreement.

                

        

        

        
          	 	
                  b)

                	
                  Intellectual
                    Property
                    shall mean work product, functional designs, technical designs,
                    and
                    software including programs, modules, code, algorithms, flowcharts,
                    data
                    diagrams, documentation and the like, tangible and intangible
                    products,
                    inventions, developments, manufacturing processes, copyrights,
                    improvements, concepts and ideas, whether patentable or not.
Intellectual
                    Property
                    shall also mean all Intellectual
                    Property
                    which is related to, or is capable of use in any way in connection
                    with
                    Company’s business or its corporate affiliates and made, conceived,
                    developed, or perfected by Employee, alone or with others, as
                    a result of
                    performance of his duties under this Agreement or two years after
                    the
                    termination of this Agreement, during any prior relationship
                    with Company,
                    from the use of any Company facilities, resources, or proprietary
                    information, and/or made, conceived, developed, perfected by
                    Employee as a
                    result of Employee’s association with
                    Company.

                

        

        

        
          	 	
                  c)

                	
                  "Customer"
                    and "Prospective Customer" Defined.
                    As
                    used herein, the term "Customer" shall include any person or
                    entity to
                    whom services or products are sold by Company, and any person
                    or entity
                    with whom Company has established strategic marketing, services
                    or other
                    alliances. The term "Prospective Customer" shall include any
                    person or
                    entity toward whom Company has directed efforts to establish
                    a customer
                    relationship or strategic alliance and with whom Company has
                    a reasonable
                    expectation of establishing such a relationship or
                    alliance.

                

        

        

        
          	2)	
                  Employment.
                    Company hereby employs the Employee, and Employee hereby accepts
                    employment with Company on the terms set out in this
                    Agreement.

                

        

        

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

          

        
          
            	3)	
                    Scope
                      of Duties. Employee
                      is engaged generally to perform those duties described in Appendix
                      A and
                      those duties assigned by the Chief Executive Officer of Company
                      from time
                      to time and all related duties. Employee agrees to devote his
                      full
                      business time and attention exclusively to the performance
                      of these duties
                      and further agrees to perform these duties faithfully, industriously,
                      and
                      to the best of his ability, experience, and talents, and to
                      the reasonable
                      satisfaction of Company. Such duties shall be provided at such
                      place(s) as
                      the needs, business, or opportunities of Company may
                      require.

                  

          

        

        

        
          
            	4)	
                    Supervisor.
                      Employee will be a member of the Company’s Executive Management Team
                      reporting and responsible to the Chief Executive Officer of
                      Company or
                      such other authorized representative of Company as may be identified
                      to
                      Employee by the Chief Executive Officer or the Board of Directors
                      of
                      Company.

                  

          

        

        

        
          
            	5)	
                    Compensation and
                      Benefits.
                      Company will pay the following compensation to Employee pursuant
                      to this
                      Agreement:

                  

          

        

        

        a.    Beginning
          on the Effective Date, Company will pay Employee salary at the rate of
          $150,000
          (One Hundred Fifty Thousand and 00/100 United States Dollars) per year,
          payable
          on Company’s normal payroll cycle, which salary shall be subject to required
          withholding and employment taxes levied by federal, state and local governments.
          Such salary may be adjusted from time to time by mutual agreement of the
          parties. Employee will have periodic performance reviews in accordance
          with
          Company’s policy at which time Employee’s compensation will be
          addressed.
          All
          other provisions of this Agreement will remain unchanged.

        

        b.    Employee
          may be granted options to purchase shares of the Company’s common stock, in
          addition to those previously granted, in amounts and at per share exercise
          prices and vesting criteria to be determined by the Board. Other terms
          and
          conditions concerning any stock options will be further delineated to a
          stock
          option agreement to be drafted by the Company’s counsel. 

        

        c.    Company
          may create and change from time to time employee handbooks and/or policy
          manuals
          and provide same to Employee. Such handbooks or policy manuals are intended
          to
          provide instruction and guidance to employees concerning operating procedures
          and current working policies of the Company but shall not be deemed to
          be and
          Employee understands that they are not a contract between the parties and
          are
          not part of this Agreement. The Company is free to follow or not follow
          procedures and policies set forth in the handbooks or policy manuals depending
          upon the business needs and conditions as solely determined by the Company.
          Employee may not rely upon anything contained in such handbooks or policy
          manuals as requiring any specific or general action of Company.

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        

        d.    The
          Company maintains various employee benefit plans including a medical plan.
          The
          Company will permit Employee to become a participant in any medical, optical,
          dental and life insurance plan, pension plan, profit sharing plan, and/or
          performance award programs established by Company, provided Employee has
          become
          eligible to participate in such plan or program according to the terms
          and
          conditions of said plan or program. Employee shall be eligible for vacation,
          sick time, and holidays in accordance with the policies and practices of
          the
          Company. Vacation must be taken at a time convenient to Company and must
          be
          approved in advance by Company. The Employee will be eligible to participate
          in
          any and all such plans and any other benefit on no less favorable terms
          than
          those offered to any other person by the Company. In addition, the Company
          will
          pay all premiums in connection with welfare benefit insurance coverage,
          including health, dental and vision, for Employee’s dependents in amounts not
          exceeding the premiums for such coverage offered under the Company’s related
          benefit plans.

        

        e.    Company
          reserves the absolute right to make any changes in assignment, personnel,
          or
          employee benefits at any time.

        

        6.    Employment
          Term.
          Employee’s employment shall continue for a period of two years (such two-year
          period is referred to herein as the “Full Employment Term” from the Effective
          Date of this Agreement, unless Employee’s employment is terminated prior to the
          expiration of the Full Employment Term, as provided in this Section 6 of
          the
          Agreement (such shorter period is referred to herein as the “Employment Term”).
          Employee’s obligations as specified in Sections 7-14 below, shall survive any
          termination of this Agreement.

        

        a.    Termination
          For Cause.
          Company
          may terminate Employee’s employment for cause as defined in Section 6(a)(ii)
          below.

        

        
          	 	
                  i.

                	
                  If
                    Company terminates Employee’s employment for cause, Employee shall be
                    entitled to receive payment of that portion of Employee’s annual salary
                    under Section 5(a) that Employee earned through and including
                    the
                    Termination Date at the rate of the annual salary in effect at
                    that time,
                    but shall be entitled to no other compensation under this
                    Agreement.

                

        

        

        
          	 	
                  ii.

                	
                  Termination
                    “for cause” shall mean termination by the Company of Employee’s employment
                    with Company because of (A) any act or omission that constitutes
                    a
                    material breach by Employee of his obligations under this Agreement,
                    including, but not limited to, Employee’s breach of Sections 8-10 of this
                    Agreement; (B) any failure by Employee to perform the duties,
                    meet the
                    performance criteria or to otherwise serve Company in the capacities
                    prescribed by the Company in accordance with Section 3, provided
                    that with
                    respect to the first occurrence only of any such willful failure,
                    such
                    willful failure remains uncured more than ten (10) business days
                    after the
                    date on which the Company first provides written notice of such
                    first
                    occurrence or willful failure to Employee; (C) a criminal conviction,
                    guilty plea, or no contest plea of Employee for any felony, any
                    drug
                    related offense, or a crime involving an act of moral turpitude;
                    or (D)
                    Employee’s perpetration of an act of fraud or embezzlement against
                    Company.

                

        

      

       

      
        

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        

        
          	 	
                  iii.

                	
                  Company
                    may terminate for cause Employee’s employment with Company by giving
                    written notice to Employee at least twenty-four (24) hours prior
                    to the
                    Terminate Date. “Termination Date” shall mean the actual date Employee
                    terminates employment with Company as a result of action taken
                    by the
                    Company, and not as a result of Employee’s resignation from employment as
                    provided in Section 6(b).

                

        

        

        b.    Resignation.
          Employee
          may resign his employment with Company at any time for any reason by providing
          written notice to the Supervisor set forth in Section 4 of this Agreement
          of the
          resignation at least thirty (30) days, but not more than one hundred twenty
          (120) days, prior to the effective date the resignation (the “Resignation
          Notice”). The effective date of Employee’s resignation shall be that date
          specified in the Resignation. Employee shall not make public any information
          relating to his resignation until the Resignation Date. If Employee resigns
          from
          his employment, Employee shall be entitled to receive payment of that portion
          of
          Employee’s annual salary under Section 5(a) that Employee earned through and
          including the Resignation Date at the rate of annual salary in effect at
          that
          time, but shall be entitled to no other compensation under this
          Agreement.

        

        c.    Termination
          Other Than For Cause.
          If,
          prior to the expiration of the Full Employment Term, Company terminates
          Employee’s employment other than for cause or Permanent Disability, Employee
          shall be entitled to receive, in addition to amounts payable pursuant to
          Section
          6(f), payment of that portion of Employee’s annual salary under Section 5(a)
          that Employee earned through and including the Termination Date at the
          rate of
          annual salary in effect at that time.

        

        d.    Disability.
          Employee shall be deemed “Permanently Disabled” when he is deemed permanently
          disabled in accordance with the disability insurance policy of Company
          in effect
          at the time of the illness or injury causing the disability, or, in the
          event no
          disability policy is in effect, in accordance with the disability policy
          of
          Company last in effect. If, prior to the expiration of the Full Employment
          Term,
          Employee becomes Permanently Disabled, the Company may terminate Employee’s
          employment with Company as a result of the Permanent Disability by providing
          written notice to Employee at least seventy-two (72) hours prior to the
          Termination Date. If Employee resigns from Employment with Company as a
          result
          of a Permanent Disability or Company terminates Employee’s employment as a
          result of a Permanent Disability, Employee shall be entitled to receive,
          in
          addition to amounts payable pursuant to Section 6(f), that portion of the
          annual
          salary, at the rate in effect when he became Permanently Disabled, that
          he
          earned through and including his last day of employment with
          Company.

        

        e.    Death.
          If
          Employee dies prior to the expiration of the Full Employment Term, Employee’s
          estate or personal representative shall be entitled to receive, in addition
          to
          amounts payable pursuant to Section 6(f), payment of that portion of the
          annual
          salary, at the rate in effect at Employee’s death, that Employee earned through
          and including the date of Employee’s death.

        

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        

        f.    Compensation
          Following Termination.
          If
          employee’s termination of employment is pursuant to Section 6(c), 6(d) or 6(e),
          this Agreement, in addition to any other amounts due or benefits to be
          paid to
          Employee pursuant to this Agreement, Company shall pay to Employee, or
          to
          Employee’s estate or personal representative an amount equal to the annual
          salary under Section 5(a) to which Employee would have been entitled had
          the
          Employee remained employed by Company for the Full Employment Term (the
          annual
          salary, divided by twelve, multiplied by the number of whole or fractional
          months remaining in the Full Employment Term after Employee’s last day of
          employment with Company), to be paid in four equal quarterly installments
          on the
          first day of each consecutive subsequent calendar quarter, or the next
          business
          day if the first such day is a Saturday, Sunday or legal holiday, provided
          that
          if termination of employment occurs during the last year of the Full Employment
          Term, any unpaid amount owed to Employee shall be paid no later than the
          last
          day of the Full Employment Term.

        

        7.    Noninterference
          with Third Party Rights. Company
          is employing Employee with the understanding that during the Term of
          Employment:

        

        a.    Employee
          is free to enter into employment with Company; and 

        

        b.    Only
          Company is entitled to benefit from Employee’s work. Company has no interest in
          using any third party’s patents, copyrights, trade secrets, or trademarks in any
          unlawful manner. Employee will not use for the benefit of, or divulge to
          Company, or its personnel, any proprietary information of a third party
          without
          the prior written permission of the third party.

        

        8.    Non-disclosure
          of Confidential Information.
          Due to
          the nature of Employee’s duties hereunder, he will have access to and will
          acquire or develop, Confidential
          Information.
          Employee acknowledges that Confidential
          Information
          has been
          developed by its owner at great expense and effort, are being revealed
          in strict
          confidence solely for the purpose of allowing Employee to perform duties
          for
          Company, and that disclosure of Confidential
          Information,
          could
          cause substantial damage to Company and third parties. Therefore, Employee
          agrees that:

        

        a.    Employee
          shall use Confidential
          Information
          only in
          performing duties and services related to his employment at Company and
          will
          only discuss Confidential
          Information
          with
          other authorized employees of Company and only when necessary to the performance
          of his duties.

        

        b.    During
          the term of this Agreement and afterward, Employee will hold all Confidential
          Information
          in
          strict confidence for the sole benefit of Company and will not induce or
          permit
          others to use or have access to any Confidential
          Information
          for any
          purpose whatsoever except as provided for in this Agreement. Employee will
          not
          use, reveal, copy, disclose, discuss, transfer or remove any Confidential
          Information
          except
          as necessary to perform his duties hereunder.

        

        c.    At
          no
          time will Employee use any Confidential
          Information
          for
          Employee’s own commercial and business purposes, including participation as an
          employee, partner, director, investor, officer, stockholder, member, or
          joint
          venture participant in any commercial or business enterprise, nor shall
          Employee
          take, use, copy, transfer, conceal or retain possession of property representing
          the Confidential
          Information
          for
          Employee’s own use or for the use of any other person.

        

        9.    Assignment
          of Intellectual Property.
          During
          the duration of this Agreement and for two years thereafter, Employee may,
          either alone or with others, during working hours or not, develop Intellectual
          Property, which
          may
          be protectable by patent, trademark or copyright law. Employee agrees that
          as
          consideration for this Agreement, Company will solely own all Intellectual
          Property
          and all
Intellectual
          Property will
          be
          considered “work made for hire.” If by operation of law or otherwise, any
Intellectual
          Property is
          not
“work made for hire” or if ownership of all right, title, and interest in the
Intellectual
          Property
          does not
          vest exclusively in Company, Employee hereby irrevocably assigns, to Company
          its
          successors and assigns, Employee’s entire right, title, and interest in and to
          all Intellectual
          Property
          including all patents, applications, trademarks, and copyrights. Employee
          agrees
          that such assignment is supported by adequate consideration under this
          Agreement.

        

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        

        Employee
          agrees to disclose promptly and fully to the Company all Intellectual
          Property
          and to
          advise Company’s president or designated intellectual property manager of all
Intellectual
          Property.
          Employee shall also keep and maintain adequate and current written records
          of
          all such Intellectual
          Property
          describing its nature, use, and operation. Records shall be in the form
          of
          notes, sketches and drawings or reports relating thereto, and will be the
          property of, and available to, the Company at all times.

        

        Concepts,
          copyrights, and inventions which do not relate, directly or indirectly
          to
          Company’s business or which Employee developed independent of his association
          with Company or Company’s business and on his own without use of Company’s time,
          resources, equipment or Confidential
          Information
          are
          expressly excluded from “works made for hire.” Any inventions owned by Employee
          prior to the Effective Date are enumerated in Appendix B hereto and are
          excluded
          from Employee's obligations under this Agreement. If not listed, the Parties
          agree that it shall be conclusively presumed that any relevant Intellectual
          Property
          which
          may have been listed, whether completed or not, at the execution of this
          Agreement, were not listed because they are agreed to belong exclusively
          to
          Company.

        

        Employee
          will promptly deliver all Intellectual
          Property
          to
          Company and at the request of the Company, will execute and deliver all
          proper
          assignments thereto.

        

        10. 
            Protection
          and Maintenance.
          At the
          request of the Company, Employee will at any time do all things reasonably
          required in order to protect and maintain Company’s rights in Intellectual
          Property
          including executing all proper papers for use in applying for, obtaining
          and
          maintaining United States and foreign patents and/or copyrights relating
          to
Intellectual
          Property
          as the
          Company may desire, but at the sole expense of the Company or its
          affiliate.

        

        11. 
            Not
          Used

        

        12. 
            Company
          Right to Injunctive Relief. In
          the
          event of the breach or threatened breach of Sections 8-11 of this Agreement
          by
          Employee, Company shall be entitled to all appropriate legal and equitable
          relief, including without limitation temporary restraining orders, preliminary
          and permanent injunctions, and monetary damages. The parties agree that
          in the
          event of a breach of this Agreement, the total damages sustained by Company
          may
          be difficult or impossible to ascertain. The parties hereby agree that
          no
          performance bond is necessary in obtaining the equitable relief provided
          for in
          this Section 12.

        

        13.     
           Severability.
          If any
          provision of this Agreement as applied to any party or to any circumstances
          is
          adjudged by a court to be unreasonable, invalid or unenforceable as written
          as
          to duration, geographic scope, nature or scope of activities affected,
          nature or
          scope of information covered, or in any other respect, the same will in
          no way
          affect any other provision hereof, the application of such provision in
          any
          other circumstances, or the validity or enforceability of this Agreement.
          The
          parties agree that the court making a determination that any provision
          hereof is
          unreasonable, invalid or unenforceable as written will have the power to
          reduce
          or alter the duration, area, nature or scope of the subject provision,
          and in
          its reduced or altered form or version such provision will then be enforceable
          and will be enforced.

        

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        

        14.     
           Return
          of Property.
          Upon
          termination of this Agreement, Employee shall deliver all Company’s property
          (including keys, documents, records, notes, electronic data, memoranda,
          models,
          and equipment) and Confidential
          Information, which
          is
          in Employee’s possession or under Employee’s control.

        

        15.     
            Non-waiver.
          The
          failure of either Party to enforce at any time any of the provisions of
          this
          Agreement, or to take action as a result of any breach of any provisions
          of this
          Agreement, shall in no way be considered to be a waiver of such provisions
          or in
          any way to affect the validity of this Agreement.

        

        16.     
           Non-assignment.
          This
          Agreement constitutes a personal contract and Employee shall not transfer
          or
          assign his rights or obligations hereunder; provided, however, Employee
          may
          assign his right to receive all or part of Employee’s compensation upon giving
          Company written notice of such assignment. Payment in accordance with such
          assignment shall be deemed a fulfillment of Company’s obligations
          hereunder.

        

        17.       Binding
          Effect.
          This
          Agreement shall inure to the benefit of and be binding upon Company, its
          successors and assigns and on Employee, his heirs, guardians and personal
          or
          legal representatives.

        

        a.    Governing
          Law.
          This
          Agreement shall be governed by and construed in accordance with the laws
          of the
          State of California, irrespective of where Employee’s duties are to be
          performed. The invalidity or unenforceability of any provisions hereof
          shall in
          no way affect the validity or enforceability of any other
          provision.

        

        18.       Entire
          Agreement.
          This
          Agreement contains the entire agreement of the Parties and may be amended,
          extended, or rescinded only by a writing signed by the Parties.

        

        19.       Company’s
          Additional Rights.
          This
          Agreement will be supplemental to and not in derogation of any rights which
          Company may have concerning any matter covered in this Agreement, including
          but
          not limited to any information which may have been obtained by Employee
          during
          the course of his employment or any Intellectual
          Property
          which he
          has made or may make.

        

        20.       Notices.
          All
          notices required or permitted under this Agreement shall be deemed delivered
          when delivered in person or deposited in the United States mail, postage
          prepaid, addressed to the parties at the addresses designated in the first
          paragraph of this Agreement. Notices to Company shall be in care of its
          Chief
          Operating Officer.

        

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        

        IN
          WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
          written below. The Employee acknowledges receipt of a completed copy of
          this
          Agreement.

        

      

      
 

      
        	
                CHAPEAU,
                  INC d/b/a BLUEPOINT

              	
                STEVEN
                  C. LAGORIO

              
	
                ENERGY,
                  INC.

              	 
	 	 
	
                By /s/
                  Guy A. Archbold                                                
                  

              	
                By 
                  /s/ Steven C.
                   Lagorio                                      
                  

              
	 	 
	
                Title  Chief
                  Executive Officer                                        
                  

              	
                Date
                   July 1,
                  2006                                                
                   

              
	 	 
	
                Date July
                  1,
                  2006                                                         
                  

              	 

      

      
 

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

     

    

      APPENDIX
        A

      

      SCOPE
        OF DUTIES

      

      Employee
        will be responsible for acting as Chief Financial Officer and Corporate
        Secretary. The Employee will be a member of the Company’s Executive Management
        Team
        under
        the direction of the Company’s Chief Executive Officer. 

      

      Employee
        and Company agree that each of them will, within 120 days of Employee’s
        Employment, use his best efforts to agree to and document a detail scope
        of
        duties, including performance milestones and/or other Employee performance
        criteria as well as corresponding incentive compensation programs which might
        include one or more of the following elements: (i) annual bonus; (ii) salary
        increase; (iii) additional stock options. 

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      APPENDIX
        B

      

      PREEXISTING
        INVENTIONS, COPYRIGHTS, CONCEPTS,

      WORKS,
        ETC. WHICH BELONG TO EMPLOYEE

      

       

      None.

       

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      APPENDIX
        C

      

      OTHER
        

      

       

      Employee
        and Company acknowledge that as of the Effective Date of this Agreement,
        the
        Company has recorded certain accounts payable to the Employee for past services
        rendered to the Company in the capacity of an independent contractor, including
        approximately $107,000 for services provided through December 31, 2005
        (“Accounts Payable”). The Parties agree that, in lieu of cash and upon mutual
        agreement, the Company may pay for a portion or all of Accounts Payable in
        shares of the Company’s common stock equal to that number of shares determined
        by dividing into the appropriate amount of Accounts Payable the closing price
        of
        the Company’s common stock as of the last date of the period in which the
        related Accounts Payable was earned. 

       

      

       

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]