Document:

EX-10.1

 Exhibit 10.1 

AMENDMENT NO. 2 
 TO
ARRANGEMENT AGREEMENT 
 This Amendment No. 2 to Arrangement Agreement (“Amendment”) is made as of October 17, 2018 

AMONG 
 Alithya Group Inc., a corporation existing under the laws
of Québec 
 -and- 
 Alithya Group inc. (f/k/a 9374-8572
Québec Inc.), a corporation existing under the laws of Québec 
 -and- 

9374-8572 Delaware Inc., a corporation existing under the laws of Delaware 

-and- 
 Edgewater Technology, Inc., a corporation existing under
the laws of Delaware. 
 RECITALS 

A.         The Parties have previously entered into an Arrangement Agreement dated as of March 15, 2018, as amended on
September 10, 2018 (the “Arrangement Agreement”). 
 B.         The Parties now desire to
amend the Arrangement Agreement in certain respects as provided herein. 
 NOW, THEREFORE, the parties agree as follows: 

1.         Capitalized terms not otherwise defined in this Amendment shall have the meanings ascribed to them in the
Arrangement Agreement. 
 2.         The definitions of “Adjusted Equity Exchange Ratio” and
“VWAP” in Section 1.1 of the Arrangement Agreement are hereby deleted in their entirety and replaced, in each case, with the word “Reserved.” 

3.         The definition of “Equity Exchange Ratio” in Section 1.1 of the Arrangement Agreement
is hereby deleted in its entirety and replaced with the following: 
 ““Equity Exchange Ratio” means 1.1918;”

 4.        Section 8.2(e) of the Arrangement Agreement is hereby deleted in its entirety and replaced with the
word “Reserved.” 
 [The remainder of this page is left intentionally blank—Signature page follows] 

 IN WITNESS WHEREOF the Parties have caused this Agreement to be executed as of the date first written
above by their respective officers thereunto duly authorized. 
  

			
	ALITHYA GROUP INC.
		
	By:	 	/s/ Paul Raymond
		 	 Name: Paul Raymond
 Title: President and
Chief Executive Officer

  

			
	ALITHYA GROUP INC. (F/K/A9372-8572 QUÉBEC INC.)
		
	By:	 	/s/ Paul Raymond
		 	 Name: Paul Raymond
 Title:
President

  

			
	9374-8572 DELAWARE INC.
		
	By:	 	/s/ Paul Raymond
		 	 Name: Paul Raymond
 Title:
President

  

			
	EDGEWATER TECHNOLOGY, INC.
		
	By:	 	/s/ Jeffrey L. Rutherford
		 	 Name: Jeffrey L. Rutherford
 Title: Chairman,
Interim President and Interim Chief Executive Officer

  
  

[Signature Page to Amendment No. 2 to Arrangement Agreement]Division
of PROCREA Mont-Royal,

Group
Opmedic Inc.

 

SERVICE
OFFER

 

Analysis
of MSN-2 Chlamydia / Gonorrhea of self-collection device

 

Presented
to:

 

Dr.
Michel Aube

 

Canna
Inno Laboratories Inc.

 

By:
Ms. France Lagace, Director Diagnostic Laboratories

 

October
12, 2018

 

PROCREA
Fertilité, a division of Mount-Royal

1361
Beaumont, Suite 301, Mont-Royal, Qc, H3P 2W3

Tel:
(514-345-8535 France Lagacé Ext. 2268

 

    	 	 	 

    	 

    

 

Introduction

 

We
are pleased to present our service offer concerning the Chlamydia / Gonorrhee analysis for detecting auto collection infections.

 

We
thank you for providing us with the opportunity to present our solution to meet the following objectives:

 

1-
Perform, initially, an analysis on 20 samples whose results are known, in order to validate whether the Cobas 4800 CT / NG technology
can be used, on MSN-2 type auto collection samples.

 

2-
Following the initial analysis, analyze 500 to 1000 samples.

 

Roles
and Responsibilities

 

A
– Procrea Fertility:

 

	 	Ø	Extract
    the primary specimen as recommended by Canna Inno Laboratories Inc.;
	 	Ø	Perform
    analysis according to Roche’s Cobas 4800 CT / NG protocol;
	 	Ø	The
    analysis time: 1 month, depending on the arrival of specimens in the laboratory (only complete series: 22 cases, will be performed);
	 	Ø	Provide
    a report for each of the specimens tested;
	 	Ø	Invoice
    the client for the analyzes received at the laboratory during the month; and
	 	Ø	Provide
    consumables related to the analysis excluding (conical tubes 50ml Dnase / Rnase free);

 

B
- The Canna Inno Laaboratories Inc .:

 

	 	Ø	Send,
    at its own expense, all specimens to the Procrea Fertilite cytology laboratory located on Beaumont Street:
	 	Ø	Supply
    (conical tubes 50ml Dnase / Rnase free);
	 	Ø	Provide
    the robotic agitator, for the time of study; and
	 	Ø	Pay
    billings received.

 

C
– Billing:

 

	 	Ø	Procrea
    Fertilite, will bill Canna Inno Laboratories Inc. monthly for all services performed monthly, a list of analyzed cases will
    accompany the invoice.

 

Confidentiality

 

Procrea
Gertilite has a code of ethics to which all its employees subscribe This code assures you of respect for the confidentiality of
the profession. This service agreement must remain confidential between the two (2) parties and their representatives. At the
same time, information regarding the manner of doing and the monetary values ​​of this service shall not be disclosed
to third parties.

 

PROCREA
Fertilité, a division of Mount-Royal

1361
Beaumont, Suite 301, Mont-Royal, Qc, H3P 2W3

Tel:
(514-345-8535 France Lagacé Ext. 2268

 

    	 	 	 

    	 

    

 

Duration

 

This
agreement is for a period of one year, renewable for an identical period unless otherwise stated. If one of the two parties wishes
to terminate it, it must send a four weeks written notice to the other party.

 

Method
of payment and modalities

 

Procrea
Fertilie will invoice the Customer for services every month.

 

The
sums due will be payable by check payable to Groupe Opmedic Inc. To the attention of Mr. Elia Hallak upon receipt or within 30
days of billing.

 

Any
delay in paying the fees above will carry an interest of 5% per month. This allowance will be added to the value of the transcription
services rendered.

 

Costs:

 

-
the first 20 specimens (extraction validation and Cobas technology: $100.00 / case

 

-
a deposit of $3000.00 will be required before the start of the clinical trial

 

-
the samples of the study (500 to 1000 samples: $67.00 / case

 

Acceptance
of this offer of Services.

 

This
offer of services remains open for your acceptance for a period of 10 days.

 

If
questions arise now or during the course of the project, do not hesitate to contact:

 

	 	●	France
    Lagace: 514-345-8535 extension 2268

 

We
thank you for the opportunity that you offer us to produce the present offer of services and anticipate the pleasure of working
together with you to its realization.

 

Accepted:

 

 

PROCREA
Fertilité, a division of Mount-Royal

1361
Beaumont, Suite 301, Mont-Royal, Qc, H3P 2W3

Tel:
(514-345-8535 France Lagacé Ext. 2268Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made as of October 12, 2018 (the “Effective Date”) by and between CDTi Advanced Materials, Inc., a Delaware corporation (“CDTI” or the “Company”), and Matthew Beale (“Executive”).

 

WHEREAS, CDTI and Executive desire to enter into an agreement setting forth the terms and conditions of Executive’s continued employment with CDTI.

 

NOW THEREFORE, in consideration of the mutual promises of the parties and the mutual benefits they will gain by the performance thereof, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties do hereby agree as follows:

 

1.                                      Employment.

 

CDTI continues to employ Executive, and Executive continues to accept employment with CDTI, upon the terms and conditions set forth in this Agreement. This Agreement supersedes and replaces any other employment or consulting agreement between Executive and CDTI.

 

2.                                      Position and Duties.

 

(a)                                 Executive shall serve as Chief Executive Officer of CDTI and shall have the normal duties, responsibilities and authority of such position, subject to the power of the Board of Directors of CDTI (“Board”) to expand or limit such duties, responsibilities and authority.

 

(b)                                 Executive shall report to the Board.  Executive shall devote Executive’s best efforts and all of Executive’s business time and attention (except for permitted vacation periods, reasonable periods of illness or other incapacity) to the business and affairs of CDTI.  Executive shall perform Executive’s duties and responsibilities hereunder to the best of Executive’s abilities in a diligent, trustworthy, businesslike and efficient manner.

 

(c)                                  Executive will be subject to, and will comply with, the policies, standards and procedures generally applicable to senior management employees of CDTI from time to time.

 

3.                                      Compensation and Benefits.

 

(a)                                 Base Salary.  Executive will receive an annual base salary of $300,000 per year, less applicable payroll withholdings and payable in accordance with CDTI’s normal payroll practices.  This salary shall be subject to annual review by CDTI in accordance with its general policies as in effect from time to time.

 

(b)                                 Annual Bonus.  Executive shall be eligible to receive an annual bonus based on CDTI’s achievement of financial objectives established by the Board and the Executive’s achievement of agreed-to personal business objectives. The amount of any Annual Bonus will be based upon the degree to which such objectives are met, and will vary from 0% of Base Salary to a maximum of 119% of Base Salary with a target of 70% of Base Salary and with payout at the discretion of the Board.  The Annual Bonus will be prorated based on the number of days Executive is employed during a calendar year.  The bonus with respect to any calendar year shall be paid no later than 45 days from the date on which audited financial statements covering such calendar year are filed on Form 10-K.

 

 

(c)                                  Equity Incentives.  All of Executive’s unvested stock options will vest immediately upon Executive’s Termination Without Cause or Resignation for Good Reason concurrent with or subsequent to a Change in Control. “Change in Control” means a change in ownership or control of CDTI effected through any of the following transactions:

 

(i)                                     A merger, consolidation or other reorganization, unless securities representing more than fifty-one percent (51%) of the total combined voting power of the voting securities of the successor company are immediately thereafter beneficially owned, directly or indirectly, by the persons who beneficially owned CDTI’s outstanding voting securities immediately prior to such transaction; or

 

(ii)                                  A sale, transfer or other disposition of all or substantially all of CDTI’s assets in liquidation or dissolution of CDTI; or

 

(iii)                               The acquisition, directly or indirectly by any person or related group of persons (other than CDTI or a person that directly or indirectly controls, is controlled by, or is under common control with, CDTI), of beneficial ownership of securities possessing more than fifty-one percent (51%) of the total combined voting power of CDTI’s outstanding securities pursuant to a transfer of the then issued and outstanding voting securities of CDTI by one or more of CDTI’s shareholders; or

 

(iv)                              During any period of two (2) consecutive years, individuals who, at the beginning of such period, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director of the Board subsequent to the date of adoption of this Plan whose election, or a nomination for election by CDTI’s shareholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of any individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Board, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Securities Exchange Act of 1934.

 

Notwithstanding the foregoing, a transaction shall not constitute a Change in Control if its sole purpose is to change the legal jurisdiction of the Corporation’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Corporation’s securities immediately before such transaction. In the event of any conflict between the terms of this Agreement and the terms of the Plan or the agreement evidencing the Option, including without limitation vesting terms or the definition of “Cause,” the terms of this Agreement shall govern.

 

(d)                                 Fringe Benefits.  Executive shall be entitled to participate in all of CDTI’s employee benefit programs for which CDTI employees are generally eligible, subject to the terms and conditions of such programs.  Those programs currently include group medical, dental and vision insurance; 401(k) plan; life insurance; short-term and long-term disability insurance; and paid vacation and sick leave.  All benefits are subject to change at the sole discretion of the Board and/or CDTI.

 

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(i)                                     Executive shall be entitled to four (4) weeks of vacation per year, with a maximum accrual of eight (8) weeks. Such vacation time shall accrue and will be paid out upon termination of employment subject to customary payroll withholding in accordance with CDTI’s general practices.

 

(ii)                                  CDTI will pay Executive a housing allowance of $3,000.00 per month for the cost of maintaining a residence in the Oxnard, CA area. Executive acknowledges that payments made under this paragraph 3(d)(ii) may be taxable income to Executive.

 

(e)                                  Reimbursement of Business Expenses.  CDTI shall reimburse Executive for all reasonable expenses incurred by Executive in the course of performing Executive’s duties under this Agreement which are consistent with CDTI’s policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to CDTI’s requirements with respect to reporting and documentation of such expenses.  Such reimbursements shall be payable in accordance with CDTI’s general reimbursement practices. Notwithstanding the foregoing, any reimbursement of expenses or in-kind benefit Executive is entitled to receive shall, to the extent subject to Section 409A of the Internal Revenue Code, be subject to the following: (x) such reimbursements shall be paid no later than the last day of Executive’s taxable year following the taxable year in which the expense was incurred, (y) the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, during any taxable year of Executive shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of Executive, and (z) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

 

4.                                      Termination.

 

(a)                                 Employment At-Will and Termination.  Executive’s employment with CDTI will be “at will” (i.e., either Executive or CDTI may terminate Executive’s employment at any time for any reason, with or without Cause).  Executive’s employment and this Agreement may be terminated as follows:

 

(i)                                     Either party may terminate this Agreement and Executive’s employment for any reason upon thirty (30) days’ written notice to the other party that this Agreement is being terminated;

 

(ii)                                  The parties may terminate this Agreement and Executive’s employment for any reason without notice upon mutual written agreement of the parties;

 

(iii)                               CDTI may terminate Executive’s employment and this Agreement immediately upon written notice to Executive at any time that the Board has determined that there is Cause for such termination.  For purposes of this Agreement, “Cause” shall mean Executive’s (A) gross negligence or severe or continued misconduct in the performance of Executive’s material duties; (B) commission of or pleas of “guilty” or “no contest” to a felony offense or commission of any unlawful or criminal act which would be detrimental to the reputation or character of CDTI; (C) participation in fraud or an act of dishonesty against CDTI; (D) intentional material damage to or misappropriation of CDTI property; material breach of company policies or regulations, or (E) material breach of this Agreement that is not cured to CDTI’s reasonable satisfaction within five (5) days after written notice thereof to Executive (provided that any such breach which is not capable of cure, shall immediately constitute “Cause”);

 

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(iv)                              This Agreement shall terminate immediately upon Executive’s death or Disability.  “Disability” means Executive’s physical or mental incapacity to perform a substantial portion of his duties and responsibilities for any period or periods which, in the aggregate, total 90 or more calendar days within any 12-month period; or

 

(v)                                 Executive may resign for Good Reason.  For purposes of this Agreement, Executive will have Good Reason to terminate Executive’s employment with CDTI upon the occurrence of any of the following:  (A) a material diminution in the nature or scope of Executive’s responsibilities, duties or authority; (B) CDTI’s requirement that Executive be based at any location more than 50 miles from CDTI’s office location in Oxnard, CA; (C) any other action or inaction that constitutes a material breach by CDTI of this Agreement; or (D) a material diminution in Executive’s Base Salary unless such reduction is part of an across-the-board reduction for the Chief Executive Officer and his/her direct reports (except that an across-the-board reduction resulting in the diminution in Executive’s Base Salary due to or within six (6) months of a Change in Control is excluded and still constitutes Good Reason). Executive may not resign for Good Reason unless (A) Executive provides written notice of Executive’s intent to resign to the Board and of the occurrence of a condition constituting Good Reason for resignation under this paragraph within ninety (90) days of the initial existence of such, (B) CDTI has not remedied the alleged violation(s) within thirty (30) days of receipt of such written notice, and (C) Executive’s employment terminates no later than one hundred twenty (120) days following the initial existence of such condition.  For purposes of this paragraph written notice must include a detailed description of the facts and circumstances of the violation allegedly constituting Good Reason and such notice must be given in accordance with applicable CDTI policy, or in the absence of such policy, to the Chair of the Board or the General Counsel of CDTI.

 

(b)                                 Payments Upon Termination.  Upon termination of Executive’s employment for any reason, Executive shall be entitled to receive any salary and benefits that are accrued and unpaid as of the date of termination.

 

(i)                                     Termination for Cause or Resignation.  If Executive resigns Executive’s employment for any reason other than for Good Reason pursuant to Paragraph 4(a)(v) above, is terminated by CDTI or the Board for Cause pursuant to Paragraph 4(a)(iii), or is terminated by mutual agreement of the parties pursuant to Paragraph 4(a)(ii) above, all compensation and benefits will cease immediately and Executive will receive none of the Severance Benefits (as defined below) or any other severance pay.

 

(ii)                                  Termination Without Cause or Executive’s Resignation for Good Reason.  If Executive resigns for Good Reason under Paragraph 4(a)(v) above or Executive’s employment with CDTI is terminated by CDTI for any reason other than for Cause (and not as a result of Executive’s death or Disability) or Disability or by mutual agreement of the parties pursuant to Paragraph 4(a)(ii) above, subject to Paragraph 4(c) below, Executive will receive the following compensation (“Severance Benefits”):

 

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(A)                               an amount equal to six (6) months of Executive’s current base salary at the time of termination (less required withholdings) payable in installments pursuant to the Company’s regular payroll practices commencing on the first payroll date occurring on or after the later of the expiration of the revocation period of the Release (as defined below) or 35 days after Executive’s termination date;

 

(B)                               for a period of six (6) months following Executive’s termination date, Company payment of continuation coverage under COBRA (section 4980 of the Internal Revenue Code of 1986) of Executive’s medical, dental and vision coverage under the Company’s group health plan as in effect immediately before Executive’s termination, after which Executive may elect continuation coverage at his own expense under COBRA and the California Continuation Benefits Replacement Act (“Cal-COBRA”); provided, however, that such extended Company-paid coverage will only be provided to the extent that it is not determined by the Company to be discriminatory under section 105(h) of the Code or under any other section of the Code or other applicable law.  If the extension of such Company-paid coverage is determined by the Company to be discriminatory under section 105(h) of the Code or other applicable law, (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying the COBRA premiums for such continuation coverage, the Company, in its sole discretion, may elect to instead pay Executive on the first day of each month of any remaining portion of such twelve-month period, a fully taxable cash payment equal, on an after-tax basis, to the COBRA premiums for that month, subject to applicable tax withholdings (such amount, the “Special Severance Payment”), for the remainder of such period.  Executive may, but is not obligated to, use such Special Severance Payment toward the cost of COBRA premiums; and

 

(C)                               an amount equal to a prorated portion (based on the number of full months of Executive’s employment during the year of termination) of Executive’s Annual Bonus for the year in which the termination occurs calculated and payable pursuant to the terms of the applicable bonus program in effect as determined by the Board; provided, however, that such payment shall be made to the Executive no later than 45 days from the date on which audited financial statements covering such calendar year are filed on Form 10-K.

 

(iii)                               Disability.  If Executive’s employment is terminated due to Disability, subject to Paragraph 4(c) below, Executive will receive the following compensation (“Severance Benefits”):

 

(A)                               an amount equal to three (3) months of Executive’s current base salary at the time of termination (less required withholdings) payable in installments pursuant to the Company’s regular payroll practices commencing on the first payroll date occurring on or after the later of the expiration of the revocation period of the Release (as defined below) or 35 days after Executive’s termination date;

 

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(B)                               for the period of three (3) months following Executive’s termination date, Company payment of continuing coverage under COBRA of medical, dental and vision coverage under the Company’s group health plan in effect immediately before Executive’s termination, after which Executive may elect continuation coverage at his own expense under COBRA (and Cal-COBRA; provided, however, that such Company-paid extended coverage will only be provided to the extent that it is not determined by the Company to be discriminatory under section 105(h) of the Code or under any other section of the Code or other applicable law.  If the extension of such Company-paid coverage is determined by the Company to be discriminatory under section 105(h) of the Code or other applicable law, (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying the COBRA premiums for such continuation coverage, the Company, in its sole discretion, may elect to instead pay Executive on the first day of each month of any remaining portion of such six-month period, a fully taxable cash payment equal, on an after-tax basis, to the COBRA premiums for that month, subject to applicable tax withholdings (such amount, the “Special Severance Payment”), for the remainder of such period.  Executive may, but is not obligated to, use such Special Severance Payment toward the cost of COBRA premiums; and

 

(C)                               an amount equal to a prorated portion (based on the number of full months of Executive’s employment during the year of termination) of Executive’s Annual Bonus for the year in which the termination occurs calculated and payable pursuant to the terms of the applicable bonus program in effect as determined by the Board; provided, however, that such payment shall be made to the Executive no later than 45 days from the date on which audited financial statements covering such calendar year are filed on Form 10-K.

 

Notwithstanding the foregoing, any benefits that Executive shall become entitled to receive under CDTI’s long-term disability insurance program as it may from time to time be in effect shall reduce the Severance Benefits payable under this Paragraph 4(b)(iii).

 

(c)                                  Release and Commencement of Severance Benefits.  As a condition of receiving any Severance Benefits under this Paragraph 4, Executive is required to sign (and not revoke) a Severance Agreement and Release of All Claims (“Release”) against CDTI and related entities and individuals, in a form to be provided by CDTI, within 45 days after his termination date.  Payment of Severance Benefits shall not commence until after the time for revocation of the Release has expired (if the period for signing and not revoking the Release begins in one taxable year for the Executive and ends in the subsequent taxable year, the payment of any Severance Benefits will begin in the second taxable year).

 

(d)                                 409A.  The parties intend that the Severance Benefits provided under this Agreement will be deemed not to be deferred compensation subject to section 409A of the Code (“section 409A”) to the maximum extent provided in the exceptions provided in the Treasury Regulations for short term deferrals (section 1.409A-1(b)(4)) and separation pay plans (section 1.409A-1(b)(9)).  All Severance Benefits shall be paid within the period ending no later than the last day of the second taxable year of the Executive following the taxable year in which the Executive’s separation from service occurs, in conformance with section 1.409A-1(b)(9) of the Treasury Regulations.  To the extent that the payment of any amount under this Paragraph 4 constitutes deferred compensation, any payment or benefit due upon Executive’s termination of employment will only be paid or provided to Executive once Executive’s termination qualifies as a “separation from service” under section 409A.  If Executive is a “specified employee” within the meaning of section 409A, any such payment scheduled to occur during the first six (6) months following Executive’s separation from service shall not be paid until the earlier of the date of Executive’s death or the first regularly scheduled payroll date following the six (6) month anniversary date of such separation from service and shall include payment of any amount that was otherwise scheduled to be paid prior thereto. It is the intent of the Company and Executive that any right of Executive to receive installment payments hereunder shall, for all purposes of Section 409A, be treated as a right to a series of separate payments. While the Company intends that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A, the Company does not guarantee any particular tax effect for income provided to Executive pursuant to this Agreement.  In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Executive, the Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Executive pursuant to this Agreement.

 

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(e)                                  Return of Property.  Upon termination of Executive’s employment or whenever requested by CDTI, Executive will immediately return all CDTI property, tangible or (where returnable) intangible, in Executive’s possession.

 

(f)                                   Upon termination of Executive’s employment with CDTI for any reason, Executive shall promptly resign from any position as an officer, director or fiduciary of CDTI.

 

5.                                      Protection of Confidential Information.

 

(a)                                 Executive acknowledges that in connection with his employment with CDTI, Executive will be given access to or will obtain Confidential Information (as defined below) with respect to CDTI’s business and employees.  Executive will use the Confidential Information only to carry out Executive’s job duties under this Agreement.  Executive will hold this information strictly confidential and will not use or disclose it, except in performance of Executive’s obligations to CDTI, without CDTI’s express written consent.  Executive’s obligation to maintain the confidentiality of the Confidential Information of CDTI and to refrain from using such information for any improper purpose will continue during Executive’s employment with CDTI and at all times thereafter, unless and to the extent that such Confidential Information (i) was otherwise available to Executive from a source other than CDTI, (ii) becomes generally known to, and available for use by, the public other than as a result of the acts or omissions of the Executive in contravention of this Paragraph 5, or (iii) is required to be disclosed by applicable law, court order or other legal process.

 

(b)                                 Executive shall deliver to CDTI at the termination of his employment, or at any other time CDTI may request, all memoranda, notes, plans, records, reports, computer tapes, printouts and software and other documents and data (and copies thereof) relating to the Confidential Information, Work Product (as defined below) or the business of CDTI which Executive may then possess or have under Executive’s control.

 

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(c)                                  “Confidential Information” includes but is not limited to the following:  (i) trade secrets, ideas, processes, formulas, data, programs, other works of authorship, knowhow, improvements, discoveries, developments, designs and techniques; (ii) information regarding plans for research, development, new products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices, costs, supplies, customers and information regarding the skills and compensation of other employees, directors or consultants of CDTI or any Affiliate; (iii) confidential marketing information (including without limitation marketing strategies, customer or client names and requirements for product and services, prices, margins and costs); and (iv) other confidential business information of CDTI or any Affiliate.  For purposes of this Agreement, “Affiliate” means any trade or business under common control with CDTI, as that term is defined in sections 414(b) and 414(c) of the Code.

 

(d)                                 The U.S. Defend Trade Secrets Act of 2016, as amended (the “DTSA”), provides that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in (A) confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law, or (B) a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal. In addition, the DTSA provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

 

6.                                      Protection of Intellectual Property.

 

Executive agrees that all inventions, innovations, improvements, developments, methods, techniques, processes, algorithms, data, databases, designs, analyses, drawings, reports, and all similar or related information, all software, copyrights, and other works of authorship, all other intellectual property or proprietary rights (including any patents, registrations or similar rights that may issue from the foregoing), and all tangible embodiments of any of the foregoing (in any form or medium, whether now known or hereafter existing), which relate to CDTI’s or any Affiliate’s actual or anticipated business, research and development or existing or future products or services and which are conceived, developed, contributed to, or made by Executive while employed by CDTI or any Affiliate thereof (collectively, “Work Product”), belong to and are the property of CDTI or such Affiliate, as applicable, and Executive hereby assigns to CDTI or such Affiliate, as applicable, any right, title and interest Executive may have in and to the Work Product, free and clear of any claims for compensation or restrictions on the use or ownership thereof.  Executive will promptly disclose such Work Product to CDTI and perform all actions reasonably requested by CDTI (whether during or after his employment) to establish, record, perfect and otherwise confirm such ownership, and protect, maintain and enforce CDTI’s and the Affiliate’s rights, as applicable, in such Work Product (including, without limitation, by executing assignments, consents, powers of attorney, and other instruments and providing affidavits and testifying in any proceeding).

 

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7.                                      Post-Employment Covenants.

 

(a)                                 Non-Solicitation of Employees.  For a period of two (2) years following termination of Executive’s employment with CDTI, Executive shall not knowingly solicit or encourage, directly or indirectly, in person or through others, any employee of the Company whom Executive worked with at the Company or any Affiliate to terminate his or her relationship with the Company or its Affiliate or to alter his or her relationship with the Company to the Company’s detriment; provided, however, that generalized advertisement of employment opportunities including in trade or industry publications (not focused specifically on or directed in any way at the employees or an employee of CDTI) shall not be deemed to cause a breach of this Paragraph 7(a).

 

(b)                                 Non-Solicitation of Customers. For a period of two (2) years following termination of Executive’s employment with CDTI, Executive shall not knowingly solicit, divert or take away, or attempt to solicit, divert or take away, any person, firm or company that was, at any time during the period of twelve (12) months preceding the termination of Executive’s employment, a client of CDTI and with whom during that twelve (12) month period Executive had business dealings on behalf of CDTI or any Affiliate, for the purpose of selling or providing a product or service that competes with or displaces a product or service of CDTI that Executive had some material involvement in or received Confidential Information about while employed by CDTI.

 

(c)                                  If, at the time of enforcement of this Paragraph 7, a court of competent jurisdiction holds that the restrictions stated herein are unreasonable under circumstances then existing with respect to (i) any part of the time period covered by these covenants, (ii) any activity covered by these covenants, or (iii) any other aspect of these covenants, any adverse determination will be implemented as narrowly as possible and will not affect these covenants with respect to any other time period, activity or other aspect covered by these covenants.

 

(d)                                 Enforcement.  Each of the parties acknowledges that (i) the covenants and restrictions contained in this Paragraph 7, and the protections for Confidential Information and Work Product under Paragraphs 5 and 6, are necessary, fundamental and required for the protection and continued conduct of CDTI’s business, (ii) such covenants and restrictions relate to matters which are of a special, unique and extraordinary character and which give these covenants a special, unique value and (iii) breach of these covenants may cause CDTI or its Affiliates irreparable harm which cannot be adequately compensated by monetary damages, and therefore in the event of a breach or threatened breach of this Agreement, CDTI or its Affiliates or their applicable successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or immediate injunctive or other relief in order to enforce, or prevent any breaches of, the provisions of this Agreement.  Executive agrees that the restrictions contained in Paragraphs 5, 6 and 7 are reasonable.

 

8.                                      General Provisions.

 

(a)                                 Arbitration.  Except for claims for injunctive relief brought pursuant to Paragraph 7, any dispute or controversy arising out of or relating to this Agreement, or the employment relationship created by this Agreement, including the termination of that relationship and any allegations of unfair or discriminatory treatment arising under state or federal law or otherwise, will be resolved exclusively by final and binding arbitration, except where the law specifically forbids the use of arbitration as a final and binding remedy.  The arbitration shall be administered by the Judicial Arbitration and Mediation Service (“JAMS”) (www.jamsadr.com) and shall be conducted exclusively under the then-current Employment Arbitration Rules & Procedures and JAMS Policy on Employment Arbitration Minimum Standards of Procedural Fairness, and the California Code of Civil Procedure (available at www.jamsadr.com). The arbitration will take place before a single neutral arbitrator in Ventura, California.  CDTI shall be responsible for the fees and expenses of the arbitrator in connection with the Arbitration.  Executive shall be responsible for his attorney fees and any costs required by JAMS necessary to commence the arbitration, if so commenced at Executive’s request, but in no event shall Executive be responsible for any costs beyond those which Executive would be required to incur if Executive filed a civil action in court concerning the dispute or controversy.  The parties shall have all the rights, remedies and defenses available in a civil action for the dispute or controversy.  The arbitrator shall issue a written award that includes the arbitrator’s essential findings and conclusions, and shall have the authority to assess attorneys’ fees and costs of the prevailing party to the losing party.  The arbitrator will not have the authority to amend, modify, supplement or change the terms and conditions of employment as set forth in this Agreement.  This arbitration provision will not prohibit either party from seeking injunctive relief pending the outcome of the arbitration or an order confirming or vacating the award in a court of competent jurisdiction.

 

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(b)                                 Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

(c)                                  Complete Agreement.  This Agreement embodies the complete agreement and understanding of the parties with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or oral, which may have related to the subject matter hereof.  There are no other agreements or understandings, written or oral, in effect between the parties relating to the subject matter of this Agreement, unless expressly referenced in this Agreement.

 

(d)                                 Counterparts.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.  Facsimile or scanned and emailed counterpart signatures to this Agreement shall be acceptable and binding on the parties hereto.

 

(e)                                  Successors and Assigns.  Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by Executive, CDTI and their respective successors and assigns; provided that the rights and obligations of Executive under this Agreement shall not be assignable.

 

(f)                                   Governing Law and Jurisdiction.  All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits hereto shall be governed by, and construed in accordance with, the laws of the State of California.  Except as provided in Paragraph 8(a), each of the parties hereto submits to the exclusive jurisdiction and venue of any state or federal court sitting in the County of Ventura, California.

 

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(g)                                  Waiver of Jury Trial.  AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

 

(h)                                 Amendment and Waiver.  The provisions of this Agreement may be amended or waived only with the prior written consent of CDTI (as approved by the Board) and Executive.

 

(i)                                     Representations and Warranties of Executive.  Executive hereby represents and warrants that Executive’s employment with CDTI on the terms and conditions set forth herein and Executive’s execution and performance of this Agreement do not constitute a breach or violation of any other agreement, obligation or understanding with any third party.  Executive represents that Executive is not bound by any agreement or any other existing or previous business relationship which conflicts with, or may conflict with, the performance of Executive’s obligations hereunder or prevent the full performance of Executive’s duties and obligations hereunder.

 

(j)                                    No Strict Construction.  The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party.

 

(k)                                 No Third Party Beneficiaries.  Nothing in this Agreement, express or implied, is intended or shall be construed to give any Person other than the parties to this Agreement and their respective heirs, executors, administrators, successors or permitted assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.

 

(l)                                     Notices.  All notices, requests and other communications under this Agreement must be in writing and shall be deemed to have been duly given only if delivered by email or facsimile transmission, personal delivery with written receipt, or mail delivery by overnight courier prepaid, using the following contact information:

 

	
If to Executive:
    	
Matthew Beale
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
email:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If to CDTI:
    	
CDTi Advanced Materials, Inc.
    	
 
    
	
 
    	
1700 Fiske Place
    	
 
    
	
 
    	
Oxnard, CA 93033
    	
 
    
	
 
    	
Attention:
    	
 
    	
 
    
	
 
    	
Fax:
    	
 
    	
 
    
	
 
    	
email:
    	
 
    	
 
    
						

 

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(m)                             Survival.  The covenants contained in Paragraphs 4(b), 5, 6 and 7 will survive any termination or expiration of this Agreement.

 

(n)                                 Review and Enforceability of Agreement.  Executive represents and warrants that prior to executing this Agreement, Executive reviewed each and every provision of this Agreement and understands same, and that Executive had a full opportunity to have this Agreement review by legal counsel of Executive’s own choosing.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above.

 

	
MATTHEW BEALE, Executive:
    	
CDTI ADVANCED MATERIALS, INC.,
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lon E. Bell
    
	
/s/ Matthew Beale
    	
 
    	
 
    	
Lon E. Bell, Ph.D.
    
	
[Signature]
    	
Title:
    	
Chairman of the Board
    
					

 

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