Document:

Employment Agreement

    Exhibit
      10.1

     

     

    EMPLOYMENT
      AGREEMENT

     

    This
      Employment Agreement (this “Agreement”)
      is
      made on the 24th
      day of
      October, 2006 by and between Electric Aquagenics Unlimited, Inc., a Delaware
      corporation (the “Company”),
      and
      Wade R. Bradley, an individual resident of the State of Georgia (the
“Employee”).

     

     

    RECITALS

     

    A.  The
      Employee and the Company are entering into this Agreement in connection with
      the
      hiring of the Employee.

     

    B. The
      Employee will be actively involved in the development of the plans for the
      business operations and customer development initiatives of the Company, and
      the
      efforts of the Employee are expected to be of great importance to the successful
      implementation of such plans.

     

    C. The
      Company owns or has access or rights to certain confidential and proprietary
      information, including, without limitation, its customer list and other
      information relating to its customers, which information is vital to the success
      of the Company, and the Company wishes to protect and maintain this information,
      which has been or may be developed by or which has or may become known to
      Employee during his employment by the Company and which, if disclosed to the
      Company’s competitors or if used in a competitive way, would be detrimental to
      the Company’s business.

     

    D. The
      Company has developed and continues to develop important business relationships
      with its customers, and Employee recognizes and acknowledges that he has and
      will play a role in the development and maintenance of these relationships,
      all
      of which are vital to the Company’s business, and the Company wishes to protect
      and maintain these relationships.

     

    E. The
      Company will employ individuals and engage consultants in which it will invest
      substantial time and money in training in ways to make the Company competitive
      and successful, and such Employees and consultants will possess important skills
      and knowledge which will be obtained by them during their employment or
      engagement, and the Company wishes to protect and maintain its relationships
      with its Employees and consultants in order to further its
      business.

     

    
      
        
        

      

      
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    AGREEMENTS

     

    In
      consideration of the employment of Employee by the Company, and the mutual
      agreements set forth herein, the parties hereby agree as follows:

     

    1.  Definitions.

     

    Capitalized
      terms used in this Agreement, unless otherwise defined herein, shall have the
      meanings set forth in Schedule
      1
      attached
      hereto.

     

    2.  Terms
      of Engagement; Duties; Board of Directors.

     

    (a)  The
      Company hereby employs Employee and Employee hereby accepts employment by the
      Company, upon the terms and conditions contained herein. Employee shall be
      employed as the Chief Executive Officer and President of the Company with
      overall charge and responsibility for the business and affairs of the Company,
      and shall report to and perform all of the executive duties as may from, time
      to
      time, be determined and assigned to him by the Board of Directors of the Company
      provided
      that
      such duties shall be consistent with Employee’s title(s). The obligations of
      Employee to start work and the obligations of the Company hereunder shall
      commence not later than November 6, 2006 (“Effective
      Date”).

     

    (b)  Throughout
      the term of this Agreement, Employee shall:

     

    
      	(i)  	
              devote
                all of Employee’s business effort, time, energy and skill (permitted
                vacations and reasonable absences due to illness excepted) to the
                duties
                assigned by the Company and to the promotion of the Company’s
                interests;

            

    

     

    
      	(ii)  	
              faithfully,
                loyally and industriously perform such duties, subject to the control
                and
                supervision of the Company’s Board of
                Directors;

            

    

     

    
      	(iii)  	
              diligently
                follow and implement all lawful policies and decisions of the Company
                that
                are communicated to Employee; 

            

    

     

    
      	(iv)  	
              not
                engage in, or otherwise be interested in, directly or indirectly,
                any
                other business or activity that would adversely affect the Company
                Business or Employee’s ability to perform his duties under this Agreement;
                and

            

    

     

    
      	(v)  	
              be
                expected to travel extensively on behalf of the Company (both domestically
                and internationally).

            

    

     

    (c)  The
      Company shall nominate Employee for election to the Company’s Board of Directors
      at the Company’s first annual shareholders’ meeting after the Effective Date.
      Subject to approval by the Company’s shareholders, the Employee shall be elected
      to and shall serve as a member of the Company’s Board of Directors. The Employee
      shall not participate in any vote of the Board of Directors that relates to
      Employee’s employment by the Company, including without limitation, the scope of
      Employee’s duties and any increase in Employee’s Base Salary or other
      compensation and benefits. For the avoidance of doubt, whenever this Agreement
      calls for any decision or consent to be made by the Company, Employee may not
      make such decision or grant such consent on the Company’s behalf, such decision
      or consent shall only be made or granted at the direction of the Company’s Board
      of Directors.

     

     

    
      
        
        

      

      
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    3.  Compensation
      and Benefits.

     

    (a)  In
      consideration of the services rendered by Employee pursuant to this Agreement,
      the Company shall provide Employee with the following remuneration and benefits,
      which shall be the only compensation payable and benefits provided to Employee
      with respect to his employment hereunder, and, Employee shall not be entitled
      to
      receive any compensation or benefits in addition to the following for any
      services rendered by him in any capacity to the Company, unless agreed to in
      writing by the Company:

     

    
      	(i)  	
              Base
                Salary.
                The Company agrees to pay Employee an annual base salary (“Base
                Salary”)
                of Two Hundred Forty Thousand Dollars and No/100 ($240,000) per year.
                The
                Base Salary shall be payable in accordance with the Company’s standard
                payroll practices for its employees.
                The Company’s Board of Directors shall annually review the Employee’s Base
                Salary and, in its sole discretion, may (but shall not be obligated
                to)
                increase such Base Salary. The Employee shall have no authority to
                increase his Base Salary or any other compensation and benefits payable
                to
                Employee.

            

    

     

    
      	(ii)  	
              Bonus.
                The Company’s Board of Directors, with input from the Employee, shall
                develop an annual bonus plan pursuant to which Employee as well as
                other
                Company employees may earn a bonus on an annual basis. The Employee
                and
                the Company’s Board of Directors shall jointly develop the performance
                benchmarks for determining whether or not Employee (or any other
                employees) have earned a bonus. If Employee meets the performance
                benchmarks that are developed, Employee shall be eligible to earn
                a bonus
                at the end of the fiscal year of the Company of up to thirty percent
                (30%)
                of his Base Salary. Any bonus earned by Employee shall be paid to
                Employee
                within ninety (90) days after the end of the applicable fiscal year.
                Employee shall not be eligible for a bonus for the Company’s fiscal year
                ending December 31, 2006.

            

    

     

    

      	(i)  	
              Options.
                On the Effective Date, the Employee shall be granted options
                (“Option”)
                to purchase five hundred thousand (500,000) shares of the Company’s common
                stock (“Shares”),
                which the Company represents constitutes approximately 2.17% of the
                Company’s fully diluted capital stock. The Option shall vest in
                installments in accordance with the schedule below:
                

            

       

      	·  	
              100,000
                Shares shall vest on February 6, 2007

            

       

      	·  	
              100,000
                Shares shall vest on November 6, 2007

            

       

      	·  	
              100,000
                Shares shall vest on November 6, 2008

            

       

      	·  	
              100,000
                Shares shall vest on November 6, 2009

            

       

      	·  	
              100,000
                Shares shall vest on November 6, 2010

            

       

      The
        exercise price per Share for the Option shall be equal to the closing sale
        price
        of the Company’s common stock on the date of this Agreement first written above.
        The number of Shares subject to the Option will be equitably adjusted in
        the
        event of any stock split, stock dividend, reverse stock split or other similar
        event. The definitive terms and conditions of the Option shall be set forth
        in a
        separate option grant agreement to be entered into by the Employee and the
        Company substantially in the form attached hereto as Exhibit
        A.
        

       

    

    
      
        
        

      

      
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      	(iv)  	
              Benefit
                Plans and Programs.
                Employee shall be eligible to participate in all profit-sharing,
                pension
                and other retirement plans, health insurance and other benefit programs,
                and management incentive, stock option and bonus plans as are from
                time to
                time established by the Company and which are made available to the
                Company’s senior management. In the event any plan or program of
                whatsoever nature is developed or maintained by the Company in the
                future,
                the Employee shall have no right therein by virtue of this Agreement;
                such
                right, if any, will only be granted by any such future plan or program.
                Nothing in this Agreement shall preclude the Company from terminating
                or
                amending any of such plans or programs at any time or from time to
                time.
                

            

    

     

    
      	(v)  	
              COBRA.
                Until Employee is eligible for health coverage under the Company’s group
                health insurance plan, the Company will reimburse Employee for his
                (and
                not any dependents) health insurance costs under Employee’s prior group
                health insurance plan pursuant to COBRA; provided that the Company
                shall
                not be obligated for more than four (4) months of COBRA expenses
                commencing on the Effective Date.

            

    

     

    
      	(vi)  	
              Vacation
                and Company Recognized Holidays.
                Employee shall be entitled to twenty (20) business days paid vacation
                per
                calendar year, which vacation shall be earned (accrued) ratably throughout
                the calendar year. Vacation days must be used by the Employee during
                the
                calendar year in which they are earned. The Employee is not entitled
                to
                carry over earned vacation days from one calendar year to the next
                and any
                earned vacation time that the Employee does not use during the calendar
                year in which they were earned will be forfeited. In addition, the
                Company
                recognizes twelve (12) national and state holidays. Upon termination
                of
                this Agreement, unused accrued vacation will be not be paid to Employee
                except in accordance with Section 13 of this
                Agreement.

            

    

     

    
      	(vii)  	
              Company
                Car.
                The Company shall reimburse Employee for the amount required to lease
                an
                automobile of Employee’s choice up to a maximum of Five Hundred Dollars
                ($500) per month. In addition, the Company will reimburse Employee,
                up to
                a maximum of One Thousand Dollars ($1,000) per year, for the following
                properly documented expenses related to such automobile: (i) service,
                (ii)
                maintenance, (iii) repair and (iv) excess mileage fees required by
                the
                automobile lease, if such excess mileage is the result of required
                business travel by the Employee on behalf of the Company.
                

            

    

     

     

    
      
        
        

      

      
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      	(viii)  	
              Reimbursable
                Expenses
                The Company shall reimburse the Employee for any and all reasonable,
                ordinary, and necessary business expenses incurred by him in the
                course of
                performing his duties under this Agreement which are consistent with
                the
                Company’s policies in effect from time to time with respect to travel,
                entertainment and other business expenses, subject to the Company’s
                requirements with respect to reporting and documentation of
                expenses. 

            

    

     

    (b)  Employee
      acknowledges that, as a condition of his employment and continued employment
      by
      the Company, he has been asked to assign certain rights, and has been asked
      not
      to engage in certain activities which would be detrimental to the Company
      Business, either during his employment or during certain periods following
      termination of his employment, and Employee understands and acknowledges that
      the compensation and benefits to be provided to him by the Company under Section
      3(a)
      above is
      being provided in part for his agreement to these conditions, which are set
      out
      below.

     

    4.  Agreement
      Not to Solicit Employees or Consultants.

     

    During
      the term of Employee’s employment by the Company and for a period of one (1)
      year following the termination of such employment, regardless of the reason
      for
      or manner of termination, Employee shall not, either directly or indirectly,
      on
      Employee’s own behalf or on behalf of others, solicit, divert or hire away, or
      attempt to solicit, divert or hire away, any person employed by the Company,
      whether or not such Employee is a full-time or temporary Employee of the Company
      and whether or not such employment is pursuant to a written agreement for a
      determined period of time or at will, or any consultant engaged by the
      Company.

     

    5.  Agreement
      Not to Solicit Customers.

     

    During
      the term of Employee’s employment by the Company and for a period of one (1)
      year following the termination of such employment, regardless of the reason
      for
      or manner of termination, Employee shall not, either directly or indirectly,
      on
      Employee’s own behalf or on the behalf of others, solicit, divert or
      appropriate, or attempt to solicit, divert or appropriate any customer or
      actively sought prospective customer of the Company, to or on behalf of any
      Competing Business, with
      a
      view to selling or providing any product, equipment or service competitive
      with
      any product, equipment or service sold or provided by Company, provided that
      the
      restrictions set forth in this section shall apply only to customers or actively
      sought prospective customers of the Company with which Employee
      has
      had
      material contact. For purposes of this section, “material contact” means contact
      between Employee and each customer or actively sought prospective customer:
      (1)
      with whom Employee dealt; or (2) whose dealings with the Company have been
      directly supervised by Employee.

     

     

    
      
        
        

      

      
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    6.  Restrictions
      on Use and Disclosure of Company Information

     

    (a)  Employee
      agrees that during the term of his employment hereunder:

     

    
      	(i)  	
              he
                will receive and hold all the Company Information in trust and in
                strictest confidence;

            

    

     

    
      	(ii)  	
              he
                will protect the Company Information from disclosure and will in
                no event
                take any action causing any of the Company Information to lose its
                character as Company Information, or fail to take the action necessary
                in
                order to prevent any Company Information from losing its status as
                Company
                Information; and

            

    

     

    
      	(iii)  	
              except
                as required by Employee’s duties in the course of employment by the
                Company, he will not, directly or indirectly, use, publish, disseminate
                or
                otherwise disclose any Company Information to any third party without
                the
                prior written consent of the Company, which may be withheld in the
                Company’s absolute discretion.

            

    

     

    (b)  The
      restrictions on Employee’s use or disclosure of Company Information, as set
      forth in Section 6(a) above, shall survive, with respect to Confidential
      Information, for a period of three (3) years following any termination of this
      Agreement.

     

    (c)  The
      restrictions on Employee’s use or disclosure of Company Information, as set
      forth in Section 6(a) above, shall survive, with respect to Trade Secrets,
      for
      so long as such Company Information is a trade secret under applicable
      law.

     

    (d) If
      Employee (or anyone to whom Employee transmits Company Information) becomes
      legally compelled to disclose any Company Information covered by this Agreement
      through subpoena, court order, or any other compulsory process, Employee shall
      first promptly notify the Company so that it may either seek a protective order
      (or other appropriate remedy) or waive compliance with the applicable provisions
      of this Agreement. If such protective order (or other remedy) is not obtained,
      or the Company waives compliance with the applicable provisions of this
      Agreement, Employee (or anyone to whom Employee transmits Company Information)
      shall furnish only that portion of the Company Information which Employee (or
      anyone to whom Employee transmits Company Information) is advised by its counsel
      is legally required to be disclosed, shall disclose them only to the parties
      in
      favor of whom the relevant order or waiver is obtained, and shall exercise
      reasonable efforts to obtain reliable assurances that confidential treatment
      will be accorded to such disclosed information.

     

    7.  Inventions.

     

    (a)  Employee
      agrees that all Subject Inventions and all patent and other intellectual
      property and trade secret rights in and to Subject Inventions will become the
      property of the Company, and Employee hereby irrevocably assigns to the Company
      all of Employee’s rights to all Subject Inventions, including all derivative
      works thereof and in all media.

     

     

    
      
        
        

      

      
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    (b)  Employee
      agrees that if he develops or reduces to practice an Invention during his
      employment and there is a reasonable basis to believe that the Invention is
      a
      Subject Invention, Employee will promptly provide a written description of
      the
      Invention to the Company adequate to allow evaluation for a determination as
      to
      whether the Invention is a Subject Invention.

     

    (c)  Employee
      further agrees that he will cooperate with attorneys or other persons designated
      by the Company by explaining the nature of any Subject Invention for which
      the
      Company elects to file an application for patent protection, reviewing
      applications and other papers and providing any other cooperation required
      for
      prosecution of the patent applications. The Company will be responsible for
      all
      expenses incurred for the preparation and prosecution of all patent applications
      on Subject Inventions assigned to the Company. 

     

    8.  Copyrights.

     

    (a) The
      Company shall own all right, title and interest in and to any Works. In
      furtherance of the foregoing, Employee acknowledges that each Work is a
“work-made-for-hire” as defined under the U.S. Copyright Act (as amended). The
      Company shall for copyright purposes be considered the sole and original author
      of each Work, and shall have the sole and exclusive right (and may grant to
      others the right) in perpetuity throughout the universe, to copyright, use,
      transmit, broadcast, modify, change, adapt, edit or exploit each Work by any
      means, for any purpose, in any media now or hereafter known. Employee warrants
      and represents that each Work to Employee’s knowledge is an original creation
      and that to Employee’s knowledge does not violate any law, or infringe any
      copyright or other right of any person or entity. Employee waives any and all
      rights (e.g.,
“moral
      rights”) Employee may have in each Work, including but not limited to the right
      to acknowledgment as author. Employee agrees not to use or include in any Work
      any copyrighted, restricted or protected code, specifications, concepts, trade
      secrets, or confidential information of any third party or any other information
      that Employee would be prohibited from using by any confidentiality,
      non-disclosure or other agreement with any third party. Employee
      agrees to fully and promptly disclose in writing to the Company any Works as
      such Works from time to time may arise.

     

    (b) In
      the
      event a court of competent jurisdiction ever determines that any Work is not
      a
“work made for hire” then, and regardless, Employee hereby irrevocably assigns
      all right, title and interest in and to that Work to the Company (and/or its
      successors or assigns). The foregoing assignment includes all worldwide rights
      of any kind in and to each Work (whether or not such rights are recognized
      in
      the United States or any other country in the world), including without
      limitation, all rights incident to patent, trademark or copyright ownership
      (including renewals or extensions), to claims for damages by reason of past,
      present or future infringement and to the right to sue and recover such damages
      for the use and benefit of the Company. If any such rights cannot be assigned
      to
      the Company, then Employee waives the enforcement of such rights, and if any
      such rights cannot be assigned or waived, then Employee hereby grants to the
      Company an exclusive, irrevocable, perpetual, worldwide, fully paid license,
      with right to sublicense through multiple tiers, to such rights.

     

     

    
      
        
        

      

      
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    (c) Employee
      shall execute and deliver such confirmatory assignments, instruments, or
      documents as Company deems necessary or desirable to protect, maintain,
      establish or confirm Company’s rights to each
      Work
      without
      requiring company to provide any further consideration therefor, failing which
      Employee hereby appoints Company (and its successors or assigns) as his
      attorney-in-fact to execute such documents. In this regard, Employee shall,
      without charge to the Company other than reimbursement of Employee’s reasonable
      out-of-pocket expenses, execute and deliver all such further documents,
      including applications for patents and copyrights, and perform such acts, at
      any
      time during or after the term of this Agreement as may be necessary, to obtain
      patents or copyrights in respect of each
      Work
      and to
      vest title to each
      Work
      in the
      Company, its successors, assigns or designees. Without limiting the generality
      of the foregoing, Employee further agrees, during the Employment Period and
      after the termination, cancellation, expiration or non-renewal thereof, without
      regard to the reason for the termination, cancellation, expiration or
      non-renewal, to give all lawful testimony which may be required in connection
      with any proceedings involving each
      Work
      so
      assigned by Employee.

     

    (d) Employee
      shall promptly notify the Company of any unauthorized use, known to the
      Employee, of the Works. The Company shall have the right, in its sole and
      absolute discretion, to determine whether or not to institute any type of action
      against such unauthorized use.

     

    9.  Ability
      to Earn Livelihood.

     

    Employee
      expressly agrees and acknowledges that the covenants and restrictions contained
      in Sections 4, 5, 6, 7, and 8 hereof do not preclude Employee from earning
      a
      livelihood, nor do they unreasonably impose limitations on Employee’s ability to
      earn a living. In addition, Employee agrees and acknowledges that the potential
      harm to the Company of their non-enforcement outweighs any harm to the Employee
      of their enforcement
      by
      injunction or otherwise.

     

    10.  Contracts
      or Other Agreements.

     

    Employee
      represents and warrants that he is not a party to any contract, employment
      agreement or other agreement with a former employer, business partner or any
      other business with which Employee has been associated which prohibits Employee
      during a period of time which includes the date of Employee’s commencement of
      employment with the Company from: (i) competing with, or in any way
      participating in a business which competes with such former employer or
      business; (ii) soliciting personnel of such former employer or business to
      leave
      such former employer’s employment or to leave such business; or (iii) soliciting
      customers of the former employer or business on behalf of another business.
      If
      Employee is the subject of any such agreement, and has any doubt as to its
      applicability to Employee, Employee will immediately provide a copy of such
      agreement to the Company so that the Company can make a determination as to
      its
      effect on Employee’s ability to undertake employment with the Company. Employee
      will not disclose to the Company, or use or induce the Company to use, any
      proprietary information or trade secrets of others.

     

     

    
      
        
        

      

      
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    11.  Return
      of Materials.

     

    All
      Materials are the property of the Company. Employee will not remove from the
      Company’s premises or copy or reproduce any Materials (except as Employee’s
      employment by the Company shall require), and at the termination of Employee’s
      employment, regardless of the reason for or manner of such termination, Employee
      will leave at the principal office of the Company, or immediately return to
      the
      Company, all Materials or copies or reproductions thereof in Employee’s
      possession, power or control. This Section 11 shall survive any expiration
      or
      termination of this Agreement.

     

    12.  Term
      and Termination of this Agreement.

     

    (a)  Term.
      The
      term of the Employee’s employment shall commence on the Effective Date and
      expire on the third (3rd) anniversary of the Effective Date, unless sooner
      terminated as provided in this Agreement. On the third (3rd)
      anniversary of the Effective Date, and on each one year anniversary thereafter,
      this Agreement shall automatically extend for an additional one year term unless
      either party delivers written notice to the other not less than sixty (60)
      days
      prior to the end of the then current term of its desire for this Agreement
      to
      not be so extended.

     

    (b)  Termination.
      This
      Agreement and Employee’s employment by the Company hereunder may be terminated:
      (i) immediately by the Company For Cause; (ii) upon ten (10) days written notice
      by the Company to Employee for any reason other than For Cause; (iii)
      immediately by Employee for Good Reason; or (iv) upon ten (10) days written
      notice by Employee to the Company for any reason other than for Good Reason.
      This Agreement and Employee’s employment by the Company shall automatically
      terminate without action by the Company upon Employee’s death or Permanent
      Disability. 

     

    13.  Effect
      of Expiration and Termination.

     

    (a)  Rights
      Following Expiration.
      At
      expiration of the term of this Agreement, this Agreement shall be terminated
      and
      the last day of such term shall be deemed to be the effective date of
      termination for purposes of this Agreement, and neither party shall have any
      further obligation to the other except
      for
      those rights and obligations of the parties hereto which survive the termination
      as expressly set forth in this Agreement. 

     

    (b)  Termination
      For Cause.
      In the
      event of termination of the Employee by the Company For Cause, the Company
      shall
      have no further obligation to Employee except for the payment of unpaid Base
      Salary under Section 3(a)(i)
      hereof
      through the date of termination, such amount being due and payable to Employee
      within thirty (30) days following the effective date of termination. Employee
      shall not be entitled to the payment of any unpaid bonus, whether or not earned,
      or any unused accrued vacation days, if Employee is terminated For Cause. In
      addition, all unvested Options shall immediately terminate and the previously
      vested Options, must be exercised by Employee during the sixty (60) days
      immediately following the date of termination (and if not so exercised, all
      such
      Options shall automatically and irrevocably terminate). The payment of the
      Base
      Salary pursuant to this section is expressly conditioned upon Employee observing
      all covenants contained in this Agreement that survive termination and Employee
      shall forfeit any payment due hereunder in the event of such
      breach.

     

     

    
      
        
        

      

      
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    (c)  Termination
      without Cause; Resignation for Good Reason; Non-renewal of Agreement by the
      Company.
      In the
      event of termination of the Employee by the Company other than For Cause,
      resignation by Employee for Good Reason, or non-renewal of this Agreement
      pursuant to Section 12(a) above because of a written notice delivered by the
      Company to Employee pursuant to such section (other than a non-renewal For
      Cause), the Company shall have no further obligation to Employee except that
      (1)
      all unvested Options shall immediately vest and, together with the previously
      vested Options, must be exercised during the sixty (60) days immediately
      following the date of termination (and if not so exercised, all such Options
      shall automatically and irrevocably terminate) and (2) the Company shall be
      obligated to Employee for the payment of the following:

     

    (i)  Base
      Salary.
      Unpaid
      Base Salary under Section 3(a)(i) hereof through the date of termination, such
      amount being due and payable within thirty (30) days following the date of
      termination; and

     

    (ii) Vacation.
      Any
      earned but unused vacation days for the year in which Employee is terminated,
      such amount being due and payable within thirty (30) days following the date
      of
      termination; and 

     

    (iii) Severance.
      The
      Severance Payment, which shall be paid ratably over the twelve month period
      immediately following the date of termination, in accordance with the Company’s
      then standard payroll practices and procedures and subject to applicable Federal
      and state tax withholdings. 

     

    To
      secure
      the Company’s obligation to make the Severance Payment, within seven (7) days
      after the Effective Date, the Company shall deposit, at its election, either
      (1)
      cash in the amount of Two Hundred Forty Thousand Dollars ($240,000) or (2)
      an
      irrevocable letter of credit with a face amount of Two Hundred Forty Thousand
      Dollars ($240,000), with an agreed upon escrow agent (“Escrow
      Agent”)
      who
      shall hold such funds (or letter of credit) in escrow pursuant to the terms
      and
      conditions contained in that certain Escrow Agreement substantially in the
      form
      of Exhibit
      B
      attached
      hereto. The Company shall be entitled to all interest earned on such escrowed
      funds.

     

    The
      payment of the Base Salary pursuant to this section is expressly conditioned
      upon Employee observing all covenants contained in this Agreement that survive
      termination and Employee shall forfeit any payment due hereunder in the event
      of
      such breach.

     

    (d)  Termination
      Due to Death or Permanent Disability.
      In the
      event of termination of this Agreement and Employee’s employment by the Company
      due to Employee’s death or Permanent Disability: (1) the Company shall have no
      further obligation to Employee except the Company shall be obligated to Employee
      for the payment of the following:

     

    (i)  Base
      Salary.
      Unpaid
      Base Salary under Section 3(a)(i) hereof through the date of termination, such
      amount being due and payable within thirty (30) days following the date of
      termination; and

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (ii)  Vacation.
      Any
      earned but unused vacation days for the year in which Employee is terminated,
      such amount being due and payable within thirty (30) days following the date
      of
      termination; and

     

    (2)
      all
      unvested Options shall immediately terminate and all vested Options must be
      exercised, if at all, within sixty (60) days immediately following the date
      of
      death or Permanent Disability, and thereafter such Options shall automatically
      and irrevocably terminate.

     

    (e)  Resignation
      by Employee.
      In the
      event of termination by reason of Employee’s resignation (other than for Good
      Reason), the Company shall have no further obligation to Employee except for
      the
      payment of unpaid Base Salary under Section 3(a)(i)
      hereof
      through the date of termination, such amount being due and payable to Employee
      within thirty (30) days following the effective date of termination, and upon
      such resignation, all options (vested and unvested) shall immediately and
      automatically terminate. The payment pursuant to this section is expressly
      conditioned upon Employee not breaching the covenants and restrictions contained
      in Sections 4, 5, 6, 7, 8 or 9 hereof, and Employee automatically forfeits
      any
      and all remaining payments due hereunder in the event of such
      breach.

     

    (f)  Effect
      of Termination.
      Upon
      termination of this Agreement and Employee’s employment by the Company
      hereunder, regardless of the reason for or manner of termination, Employee’s
      covenants in Section
      4
      (Agreement Not to Solicit Employees or Consultants), Section 5
      (Agreement Not to Solicit Customers), Section 6 (Restrictions on Use and
      Disclosure of Company Information)
      hereof
      shall survive the termination of Employee’s employment hereunder for so long as
      and to the extent provided therein, and Employee’s representations, warranties
      and covenants under Section
      7 (Inventions), Section 8 (Copyrights), Section 10 (Contracts or Other
      Agreements) and Section 11 (Return of Materials)
      of this
      Agreement shall survive without limitation the termination of Employee’s
      employment hereunder.

     

    14.  Remedies.

     

    Employee
      agrees that the covenants contained in Sections 4, 5, 6, 7, 8, 10 and 11 of
      this
      Agreement are of the essence of this Agreement; that each of such covenants
      is
      reasonable and necessary to protect and preserve the business, interests and
      properties of the Company, and that irreparable loss and damage will be suffered
      by the Company should Employee breach any of such covenants. Therefore, Employee
      agrees and consents that, in addition to all the remedies provided at law or
      in
      equity, the Company shall be entitled to a temporary restraining order and
      temporary and permanent injunctions to prevent a breach or contemplated breach
      of any of such covenants. The existence of any claim, demand, action or cause
      of
      action of Employee against the Company shall not constitute a defense to the
      enforcement by the Company of any of the covenants or agreements
      herein.

     

    15.  Severability.

     

    The
      parties agree that each provision in this Agreement is separate, distinct and
      severable from the other and remaining provisions of this Agreement, and that
      the invalidity or unenforceability of any Agreement provision shall not affect
      the validity and enforceability of any other provision or provisions of this
      Agreement. Further, if any provision of this Agreement is ruled invalid or
      unenforceable by a court of competent jurisdiction because of a conflict between
      such provision and any applicable law or public policy, such provision shall
      be
      valid and enforceable to the extent such provision is consistent with such
      law
      or public policy.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    16.  Further
      Action.

     

    The
      parties agree to perform all further acts and execute, acknowledge and deliver
      any documents which may be reasonably necessary, appropriate or desirable to
      carry out the provisions of this Agreement.

     

    17.  Assistance
      in Litigation.

     

    Employee
      agrees that following the termination of his employment hereunder, regardless
      of
      the reason for or manner of such termination, other than death or a Permanent
      Disability that prevents his cooperation, he shall, upon reasonable notice,
      to
      the extent that it does not unreasonably interfere with Employee’s business or
      personal affairs, furnish such information and give such assistance (not
      requiring travel) to the Company in any controversy or matter involving
      litigation as may reasonably be requested by the Company. The Company shall
      compensate Employee for all reasonable expenses and Employee’s time incurred
      while so assisting the Company. Employee is not obligated to assist in any
      controversy or litigation between the Company and Employee.

     

    18.  Notices.

     

    Any
      notice, request, demand, or other communication required to be given hereunder
      shall be made in writing and shall be deemed to have been fully given if
      personally delivered or if mailed by overnight delivery to the parties at the
      following addresses, or at such other addresses as shall be given in writing
      by
      either party to the other party hereto:

     

    If
      to the
      Company:

    

    Electric
      Aquagenics Unlimited, Inc.

    1890
      Cobb
      International Blvd., Suite A

    
      	 	
              Kennesaw,
                GA 30152

            

    

    
      	 	
              Attention:
                Mr. Jay Potter

            

    

    

    With
      copies to:

    

    Arnall
      Golden Gregory LLP

    171
      17th
      St.,
      NW

    Suite
      2100

    Atlanta,
      Georgia 30363

    Attn:
      Michael D. Golden

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    

    If
      to
      Employee:

    

    Wade
      R.
      Bradley

    914
      Curie
      Drive

    Alpharetta,
      GA 30005-8369

     

    With
      copies to:

    

    Bell,
      Boyd and Lloyd LLC

    70
      W.
      Madison Street

    Suite
      3100

    Chicago,
      Illinois 60602

    Attn:
      Craig C. Bradley, Esq.

    

    Notices
      sent hereunder shall be deemed delivered (i) if by hand or local courier, when
      delivered to the address for the party to whom such notice is sent and such
      delivery is accepted or refused by such party, or (ii) if sent by overnight
      courier, on the next business day (i.e., a day which is not a Saturday, Sunday
      or other day on which national banks are not open for business in Atlanta,
      Georgia) after being delivered to such courier.

     

    19.  Assignment.

     

    All
      covenants and agreements contained in this Agreement by or on behalf of any
      of
      the parties hereto will bind and inure to the benefit of any of the parties
      and
      their respective heirs, executors, administrators, personal representatives,
      successors and assigns, whether so expressed or not; provided
      that the
      Employee may not assign his rights or delegate his obligations under this
      Agreement without the prior written consent of the Company (to be granted or
      withheld in the Company’s sole discretion). The Company may assign its rights
      under this Agreement.

     

    20.  Waiver.

     

    No
      consent or waiver by a party with respect to any breach or default by the other
      party hereunder shall be effective unless in writing, and no such waiver or
      consent shall be deemed or construed to be a consent or waiver with respect
      to
      any other breach or default by such party of the same provision or any other
      provision of this Agreement. Failure on the part of a party to complain of
      any
      act or failure to act of the other party or to declare such other party in
      default shall not be deemed or constitute a waiver of any rights
      hereunder.

     

    21.  Governing
      Law.

     

    This
      Agreement shall be governed and construed as to both substantive and procedural
      matters in accordance with the laws of the State of Georgia, without regard
      to
      the conflict of laws principles thereof; provided however, if enforcement of
      any
      part of this Agreement is sought in a jurisdiction other than Georgia, this
      Agreement shall be governed and construed as to both substantive and procedural
      matters in accordance with the laws of such jurisdiction, without regard to
      the
      conflict of laws principles thereof.

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    22.  Interpretation.

     

    Should
      any provision of this Agreement require a judicial interpretation, it is agreed
      that the judicial body interpreting or construing this Agreement shall not
      apply
      the assumption that the terms of this agreement shall be more strictly construed
      against one party by reason of the rule of legal construction that an instrument
      is to be construed more strictly against the party which itself or through
      its
      agents prepared the agreement. The parties acknowledge and agree that they
      and
      their agents have each had the opportunity to participate equally in the
      negotiations and preparation of this Agreement, and Employee acknowledges that
      he has had the opportunity to consult legal counsel regarding the terms
      hereof.

     

    23.  Reasonableness.

     

    Employee
      acknowledges that he has carefully read this Agreement and has given careful
      consideration to the restraints imposed upon the Employee by this Agreement,
      and
      is in full accord as to their necessity for the reasonable and proper protection
      of the Company Information. The Employee expressly acknowledges and agrees
      that
      each and every restraint imposed by this Agreement is reasonable with respect
      to
      subject matter, time period and geographical area, as applicable.

     

    24.  Modification.

     

    No
      amendment or modification of this Agreement shall be valid or binding upon
      the
      Company or Employee unless made in writing and signed by the parties hereto.
      Notwithstanding the foregoing, the parties further agree that if a judicial
      or
      quasi-judicial entity declares the agreement invalid in whole or in part, it
      may
      modify the terms of the Agreement and give effect to the Agreement as
      modified.

     

    25.  Attorney’s
      Fees.

     

    In
      the
      event of any dispute between the parties arising out of or in any way connected
      with this Agreement resulting in any litigation or arbitration, then the
      prevailing party in such litigation or arbitration shall be entitled to recover
      its costs of prosecuting and/or defending same, including, without limitation,
      reasonable attorneys’ fees at trial and all appellate levels. The provisions of
      this Section shall survive the termination of this Agreement. 

     

    26.  Withholdings;
      Setoff.

     

    All
      compensation and benefits to Employee hereunder shall be reduced by all Federal,
      state, local and other withholdings and similar taxes and payments required
      by
      applicable law. Upon ten (10) business days written notice to Employee, the
      Company may withhold and use any amounts due under this Agreement to Employee,
      at its option, to offset any damages, losses, costs in expenses suffered by
      the
      Company as a result of any act or omission whatsoever of Employee; provided,
      however,
      that if
      Employee within
      five (5) business days after receiving any such notice by the Company gives
      the
      Company written notice that Employee disputes
      that the Company has been so damaged by his acts or omissions, then such
      compensation and benefits shall be paid the Escrow Agent (defined by Section
      13(c)(iii),
      and held
      there until either the earlier of (a) the written approval of both Employee
      and
      the Company, or (b) a court order directing that such compensation and benefits
      be paid to Employee or retained by the Company. Initially the fees of the escrow
      agent shall be shared equally by the parties, and upon resolution of the dispute
      the non-prevailing party shall reimburse the prevailing party for its share
      of
      such fees. The provisions of this Section 26 shall constitute a complete and
      absolute right of setoff against any such payments which may become due to
      Employee from the Company.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    27.  Headings.

     

    Titles
      and captions contained in this Agreement are inserted only as a matter of
      convenience and for reference and in no way define, limit or extend or describe
      the scope of this Agreement or the intent of any provision contained in this
      Agreement.

     

    28.  Entire
      Agreement.

     

    This
      Agreement embodies the entire agreement of the parties on the subject matter
      herein. All prior understandings and agreements relating to the subject matter
      of this Agreement are hereby expressly terminated. Employee acknowledges that
      during the term of his employment by the Company the protections afforded the
      Company under this Agreement dealing with the solicitation of customers and
      Employees of the Company may, as a condition of his continued employment,
      require changes to the provisions in such sections relating to job description,
      business, and titles. Accordingly, Employee agrees to promptly enter into
      modifications to such sections as are reasonably requested by the Company and
      as
      are mutually agreed upon from time to time during the term of this
      Agreement.

     

    29.  Arbitration.

     

    With
      the
      sole exception of injunctive relief contemplated by Section 14 of this
      Agreement, and any injunctive relief sought by Company against Employee for
      breaches of Sections 4, 5, 6, 7, and 8 of this Agreement, any controversy or
      claim arising out of any aspect of the relationship of the parties hereto will
      be settled by binding arbitration in the State of Georgia by a panel of three
      arbitrators, of which Company will choose one arbitrator, Employee will choose
      one arbitrator, and those arbitrators will choose the third arbitrator, who
      will
      act as Chair of the panel. The arbitrators will select the rules and procedures
      under which the arbitration will be conducted. Judgment upon any arbitration
      award may be entered in any court having jurisdiction thereof, and the parties
      consent to the jurisdiction of the courts of the State of Georgia for this
      purpose.

     

    Initials:_____  Initials:_____

     

    THIS
      AGREEMENT, AS A CONDITION OF EMPLOYEE’S EMPLOYMENT WITH THE COMPANY, CONTAINS AN
      ASSIGNMENT OF CERTAIN PATENT, COPYRIGHT AND RELATED RIGHTS AND MAY AFFECT
      EMPLOYEE’S RIGHTS TO INVENTIONS OWNED BY EMPLOYEE AT THE TIME EMPLOYMENT BY THE
      COMPANY BEGAN AND CONTAINS RESTRICTIONS ON EMPLOYEE’S ACTIVITIES AND EMPLOYEE’S
      USE OR DISCLOSURE OF CERTAIN INFORMATION OF THE COMPANY BOTH DURING AND
      FOLLOWING EMPLOYMENT BY THE COMPANY. EMPLOYEE EXPRESSLY REPRESENTS AND WARRANTS
      THAT HIS EXPERIENCE AND CAPABILITIES ARE SUCH THAT NONE OF THE PROVISIONS OF
      THIS AGREEMENT WOULD PREVENT HIM FROM EARNING A LIVELIHOOD FOLLOWING TERMINATION
      OF HIS EMPLOYMENT BY THE COMPANY.

     

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company and Employee have each executed and delivered
      this
      Agreement as of the date first shown above.

     

    

     

    EMPLOYEE:

    

    

                                                   /s/
      Wade R. Bradley

                                   Wade
      R.
      Bradley

    

    

    

    THE
      COMPANY:

    

    ELECTRIC
      AQUAGENICS UNLIMITED, INC.

    

    By: 
      /s/ Jay S. Potter      

    Name: 
      Jay S. Potter       

    Title: CEO
      - Interim       

    

    [Please
      Initial Paragraph 29]

     

     

    
 

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1

     

    (a)  “Company
      Information” means Confidential Information and Trade Secrets.

     

    (b)  “Company’s
      Business” means the business of developing, manufacturing and
      marketing specialized equipment which uses water electrolysis to
      create fluids which are used in commercial, residential and industrial cleaning,
      disinfecting, remediating, hydrating and moisturizing property, equipment
      and food supplies.

     

    (c)  “Competing
      Business” means any business organization of whatever form engaged in any
      business or enterprise which is the same as, or substantially the same as,
      the
      Company’s Business.

     

    (d)  “Confidential
      Information” means any information learned by Employee as a result of employment
      with the Company relating to the Company’s services and equipment; customer
      names, addresses and locations; customer contacts at each location; current
      and
      previous sales; customer service dates, and any and all information gathered
      by
      the Company or the Employee relating to potential customers; Company route
      sheets, invoices, daily activity reports, price lists and supplements; Company
      routes or territories; Company sales volume, strategy and marketing information;
      information relating to research, production, development, compositions, methods
      or other secret or confidential matters of the Company or of its customers;
      all
      computer software, computer programs, listings, codes, flowcharts, and
      printouts; all inventions, ideas, designs, processes, drawings or models; all
      formulas, reports, and business documents; any of the Company’s copyrighted and
      copyrightable, technical or scientific know-how; and/or any other confidential
      information relating to the Company’s business. Confidential information does
      not include information which has been voluntarily disclosed to the public
      by
      the Company, been independently developed and disclosed to the general public
      by
      others, or otherwise entered the public domain through lawful
      means.

     

    (e)  “For
      Cause” means one or more of the following:

     

    
      	(i)  	
              Employee
                commits fraud, theft or embezzlement against the
                Company;

            

    

     

    
      	(ii)  	
              Employee’s
                conviction of, confession to, or pleading guilty or “no contest” to, a
                felony under any state or Federal statute;

            

    

     

    
      	(iii)  	
              Employee’s
                failure to observe or perform any covenant, condition or provision
                of this
                Agreement, and such failure is not remedied within ten (10) business
                days
                after notice from the Company which describes in reasonable detail
                the
                nature of such failure and the actions which can Employee can take
                to cure
                such failure; provided that Employee shall not be entitled to notice,
                and
                shall have no right to cure any breach of Section 4, 5, or 6 of this
                Agreement;

            

    

     

    
      	(iv)  	
              Employee,
                in the performance of his duties under this Agreement, engages in
                conduct
                or activities that has a material adverse effect on the reputation
                of the
                Company or its business;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	(v)  	
              Employee
                appropriates (or attempts to appropriate) a material business opportunity
                of the Company; or

            

    

     

    
      	(vi)  	
              Employee
                abuses alcohol or drugs while on Company
                business.

            

    

     

    (f)  “Good
      Reason” means one or more of the following has occurred without the Employee’s
      consent:

     

    
      	(i)  	
              Employee’s
                title (Chief Executive Officer and President) is
                reduced;

            

    

     

    
      	(ii)  	
              Employee
                is (A) not elected as a director of the Company at the Company’s next
                annual stockholder’s meeting immediately following the Effective Date, (B)
                not re-elected during the term of this Agreement as a director of
                the
                Company at any subsequent stockholder’s meeting, or (C) removed as a
                director of the Company without
                cause;

            

    

     

    
      	(iii)  	
              The
                Employee is required to relocate to a principal place of employment
                more
                than fifty (50) miles from his principal place of employment with
                the
                Company in Kennesaw, Georgia, as of the Effective Date;
                

            

    

     

    
      	(iv)  	
              Employee’s
                Base Salary or eligibility to earn the bonus is reduced;
                or

            

    

     

    
      	(v)  	
              a
                failure by the Company to comply with any material provision of this
                Agreement which has not been cured within 10 business days after
                written
                notice of such noncompliance has been given by Employee to the
                Company.

            

    

     

    (g)  “Invention”
      means any invention, discovery, or idea, whether or not patentable, including,
      but not limited to, any useful process, method, formula, technique, machine,
      manufacture, composition of matter, algorithm or computer program, design,
      know-how, technical information or data, as well as improvements thereto, which
      is new or which the Employee has a reasonable basis to believe may be
      new.

     

    (h)  “Materials”
      means all documents or tangible or intangible materials, including computer
      data, prepared by or at the direction of Employee or provided to or obtained
      by
      Employee during the course of employment by the Company which contain Company
      Information.

     

    (i)  “Permanent
      Disability” shall mean that, due to physical, mental or emotional problems of
      the Employee, Employee is unable, after reasonable accommodation by the Company,
      to perform his normal duties for the Company for ninety days in any period
      of
      one hundred eighty consecutive days.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (j)  “Person”
      means any person or entity, or subsidiary, division or department
      thereof.

     

    (k)  “Severance
      Payment” shall mean an amount equal to twelve (12) months of the then current
      Base Salary of Employee.

     

    (l)  “Subject
      Invention” means any Invention which is conceived or first practiced by the
      Employee, alone or in a joint effort with others, during the Employee’s
      employment by the Company, whether prior to or following execution of this
      Agreement, which (i) may be reasonably expected to be used in a product or
      service of the Company, or a product or service similar to a Company product
      or
      service; (ii) results from work that the Employee has been assigned as part
      of
      his or her duties as Employee for the Company; (iii) is an area of technology
      which is the same as or substantially related to the areas of technology with
      which the Employee is involved; or (iv) is useful, or which the Employee
      reasonably expects may be useful, in any manufacturing or product or service
      design process of the Company.

     

    (m)  “Trade
      Secrets” means information of the Company, without regard to form, including,
      but not limited to, technical or nontechnical data, formulas, patterns,
      compilations, programs, devices, methods, techniques, drawings, processes,
      financial data, financial plans, product or service plans or lists of actual
      or
      potential customers or suppliers which is not commonly known by or available
      to
      the public and which information (i) derives economic value, actual or
      potential, from not being generally known to, and not being readily
      ascertainable by proper means by, other persons who can obtain economic value
      from its disclosure or use; and (ii) is the subject of efforts that are
      reasonable under the circumstances to maintain its secrecy.

     

    (n)  “Work”
      means a work of authorship, whether or not copyrightable, and in whatever form
      or medium and all derivative works thereof, which are, have been or will be
      created, made, or developed by Employee for the Company.Option Agreement

    Exhibit
      10.2

    
 

    Exhibit
      A

     

    Form
      of Stock Option Agreement

     

    NONQUALIFIED
      STOCK OPTION AGREEMENT

     

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED PURSUANT TO THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE OR OTHER
      SECURITIES LAW.  SUCH SECURITIES MAY NOT BE OFFERED, REOFFERED, SOLD,
      ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED OF OR
      DISTRIBUTED, DIRECTLY OR INDIRECTLY, UNLESS THEY ARE REGISTERED AND QUALIFIED
      IN
      ACCORDANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
      OR
      IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO ELECTRIC AQUAGENICS
      UNLIMITED, INC., SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED UNDER
      SUCH
      LAWS.

     

     

      
        

      

    

     

    Award
      Summary

     

    Optionee: 
      WADE R. BRADLEY

    Number
      of
      Options: 500,000

    Exercise
      Price per Option Share: $1.30

    

     

      
        

      

    

    

     

    THIS
      NONQUALIFIED STOCK OPTION AGREEMENT (the “Agreement”),
      made
      this _____ day of October, 2006, evidences the award of 500,000 nonqualified
      stock options (each an “Option”
or
      collectively the “Options”)
      that
      have been granted to you, WADE R. BRADLEY (“Optionee”),
      effective as of November 6, 2006 (the “Grant
      Date”),
      in
      fulfillment of the obligations of Electric Aquagenics Unlimited, Inc., a
      Delaware corporation (“Company”),
      under
      Section 3(a)(iii) of that certain employment agreement entered into between
      the
      Optionee and the Company on October _____, 2006 (the “Employment Agreement”)
      and
      subject to and conditioned upon the Optionee’s agreement to the terms described
      below.  Each Option entitles the Optionee to purchase one share of common
      stock, par value $.0001 per share, of the Company (“Common
      Stock”)
      at
      $1.30 per share, the closing price reported on the NASDAQ OTC Bulletin Board
      Service on the date hereof.  An
      executed copy of this Agreement must be returned to the Company within 10 days
      of the date hereof.  If not, the Options will be null and
      void.

     

    WHEREAS,
      pursuant to the Employment Agreement, the Optionee is employed by the Company,
      and the Company desires to have the Optionee remain in such employ or capacity
      and to afford the Optionee the opportunity to acquire stockownership in the
      Company so that the Optionee may have a direct proprietary interest in the
      Company’s success; 

     

    NOW
      THEREFORE, in consideration of the premises and of the mutual covenants and
      agreements hereinafter set forth, the parties hereto hereby mutually covenant
      and agree as follows:

     

    1. Terminology

     

    Capitalized
      terms used in this Agreement not otherwise defined herein shall have the
      meanings set forth below:

     

    (a) “Change
      in Control”
means
      (i) the acquisition (other than from the Company) in one or more
      transactions by any Person, as defined below, of the beneficial ownership
      (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50%
      or
      more of (A) the then outstanding shares of the securities of the Company,
      or (B) the combined voting power of the then outstanding securities of the
      Company entitled to vote generally in the election of directors (the
“Company
      Voting Stock”);
      (ii)
      the closing of a sale or other conveyance of all or substantially all of the
      assets of the Company; or (iii) the effective time of any merger, share
      exchange, consolidation, or other business combination involving the
      Company if immediately after such transaction persons who hold a majority of
      the
      outstanding voting securities entitled to vote generally in the election of
      directors of the surviving entity (or the entity owning 100% of such surviving
      entity) are not persons who, immediately prior to such transaction, held the
      Company Voting Stock.  For purposes of this definition, a “Person”
means
      any individual, entity or group within the meaning of Section 13(d)(3) or
      14(d)(2) of the Exchange Act, other than employee benefit plans sponsored or
      maintained by the Company and other than individuals, entities or groups to
      whom the Company has issued on or prior to the date of this Agreement any
      registered or unregistered security in any form whatsoever, including, without
      limitation, any stock options or warrants. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
               “Committee”
                means the Compensation Committee of the Board of Directors of the
                Company,
                if any (if there is no Compensation Committee, it means the Board
                of
                Directors of the Company as a
                whole).

            

    

     

    
      	 	
              (c)

            	
               “Exchange
                Act”
                means the Securities Exchange Act of 1934, as
                amended.

            

    

     

    
      	 	
              (d) 

            	
              “Fair
                Market Value”
                means, with respect to a share of the Common Stock for any purpose
                on a
                particular date, the value determined by the Committee in good faith.
                However, if the Common Stock is registered under Section 12(b) or
                12(g) of
                the Exchange Act, and listed for trading on a national exchange or
                market,
                “Fair Market Value” means, as applicable, (i) either the closing price or
                the average of the high and low sale price on the relevant date,
                as
                determined in the Committee’s discretion, quoted on the New York Stock
                Exchange, the American Stock Exchange, the NASDAQ Global Select Market,
                or
                the NASDAQ Global Market; (ii) the last sale price on the relevant
                date
                quoted on the NASDAQ Capital Market; (iii) the last sale price on
                the
                relevant date quoted on the NASDAQ OTC Bulletin Board Service or
                by the
                National Quotation Bureau, Inc. or a comparable service as determined
                in
                the Committee’s discretion; or (iv) if the Common Stock is not quoted by
                any of the above, the average of the closing bid and asked prices
                on the
                relevant date furnished by a professional market maker for the Common
                Stock, or by such other source, selected by the Committee.  If no
                public trading of the Common Stock occurs on the relevant date but
                the
                shares are so listed, then Fair Market Value shall be determined
                as of the
                next preceding date on which trading of the Common Stock does occur. 
                For all purposes under this Agreement, the term “relevant date”
                as used in this definition of Fair Market Value means either the
                date as
                of which Fair Market Value is to be determined or the next preceding
                date
                on which public trading of the Common Stock occurs, as determined
                in the
                Committee’s discretion.

            

    

     

    
      	 	
              (e)

            	
               “Securities
                Act”
                means the Securities Act of 1933, as
                amended.

            

    

     

    
      	 	
              (f)

            	
               “Service”
                means the Optionee’s employment with the Company pursuant to the
                Employment Agreement.

            

    

     

    2. Grant
      of Options

     

    Subject
      to the terms and conditions set forth herein, the Company hereby grants to
      Optionee, as of the Grant Date, Options to purchase shares of the Common Stock
      of the Company.  The number of shares of Common Stock that may be purchased
      and the Exercise Price per share at which such shares may be purchased is
      specified above.

     

    3. Exercisability
      of Option

     

    
      	 	
              (a)

            	
              Subject
                to the terms and conditions described in this Agreement, the Options
                become vested and exercisable in installments in accordance with
                the
                schedule below:

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Number
                of Options

            	
              Date
                Vested and Exercisable

            
	 	 	 
	 	
              100,000

               

            	
              February
                6, 2007

               

            
	 	
              100,000

               

            	
              November
                6, 2007

               

            
	 	
              100,000

               

            	
              November
                6, 2008

               

            
	 	
              100,000

               

            	
              November
                6, 2009

               

            
	 	
              100,000

               

            	
              November
                6, 2010

               

            

    

    

     

    
      	 	
              (b)

            	
               To
                the extent not exercised, installments shall be exercisable by the
                Optionee, in whole or in part, at any time on or before the Expiration
                Date or the earlier termination of the
                Options.

            

    

     

    
      	 	
              (c)

            	
               If
                Service ceases on account of the Optionee’s death, Permanent Disability
                (as defined in the Employment Agreement) or termination of Optionee
                by the
                Company For Cause (as defined in the Employment Agreement) all unvested
                Options shall immediately
                terminate.

            

    

     

    
      	 	
              (d)

            	
              If
                Service ceases on account of resignation by Optionee (other than
                for Good
                Reason (as defined in the Employment Agreement)) all vested and unvested
                Options shall immediately
                terminate.

            

    

     

    
      	 	
              (e)

            	
               If
                Service ceases on account of the Optionee’s termination by the Company
                other than For Cause, resignation by the Optionee for Good Reason
                or
                non-renewal of the Employment Agreement pursuant to Section 12(a)
                of the
                Employment Agreement because of a written notice delivered by the
                Company
                to Optionee pursuant to such section (other than a non-renewal For
                Cause)
                vesting and exercisability of all unvested Options shall be accelerated
                so
                that the 100% of the Optionee’s Options shall be fully vested and
                exercisable.

            

    

     

    
      	 	
              (f)

            	
               The
                Options may be exercised only in multiples of whole shares of Common
                Stock
                and may not be exercised at any one time as to fewer than one hundred
                (100)
                shares of Common Stock, unless the number of shares of Common Stock
                purchased at such time is the total number of shares of Common Stock
                in
                respect of which the Options are then
                exercisable.

            

    

     

    
      	 	
              (g)

            	
              Upon
                the occurrence of a Change in Control, vesting and exercisability
                of the
                Options shall be accelerated so that the 100% of the Optionee’s Options
                shall be fully vested and exercisable as of the date of, and in connection
                with the, closing of the Change in Control
                transaction.

            

    

     

    
      	 	
              (h)

            	
               In
                no event shall the Options be exercisable for a fractional
                share.

            

    

     

    4. Method
      of Exercising Option and Payment of Exercise Price

     

    
      	 	
              (a)

            	
               The
                Options, to the extent exercisable, may be exercised at any time
                (the
                “Exercise
                Date”)
                on or before the Expiration Date or the earlier termination of the
                Options, unless otherwise provided under applicable law.  The Options
                may be exercised by delivering to the Secretary of the Company or
                its
                delegate, from time to time, notice, in such manner and form as the
                Committee may require from time to time, specifying the number of
                shares
                of Common Stock to be purchased (the “Notice”),
                and either (i) cash, certified or cashier’s check, money order or other
                cash equivalent acceptable to the Committee, in its discretion, to
                the
                order of the Company for an amount in United States dollars equal
                to the
                Exercise Price multiplied by the number of shares of Common Stock
                specified in the Notice (the “Total
                Exercise Price”),
                such payment to be delivered with the Notice, (ii) properly executed,
                irrevocable instructions, in such manner and form as the Committee
                may
                require from time to time, to effectuate a broker-assisted cashless
                exercise in accordance with Regulation T of the Board of Governors of
                the Federal Reserve System through a brokerage firm approved by the
                Committee, (iii) any other method delivering the Total Exercise Price
                as
                approved by the Committee, or (iv) any combination of the foregoing. 
                An exercise will not be effective until the Secretary of the Company
                or
                his or her delegate receives all of the foregoing items. 
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
               As
                soon as practicable after the Exercise Date, the Company shall, subject
                to
                the receipt of the Total Exercise Price and withholding tax, if any,
                issue
                the number of shares of Common Stock with respect to which such Options
                shall be so exercised, and shall deliver a certificate (or certificates)
                therefore, or deliver shares of Common Stock electronically or in
                certificate form to a designated broker, for the shares issued upon
                exercise of the Options.  Any share certificates delivered will,
                unless the shares of Common Stock are registered or an exemption
                from
                registration is available under applicable federal and state law,
                bear a
                legend restricting transferability of such shares of Common
                Stock.

            

    

     

    5. Expiration
      Date

     

    The
      Options shall terminate and be of no force or effect after 5:00 p.m. Eastern
      Time on the last business day coincident with or prior to November 6, 2016,
      unless fully exercised or terminated earlier (the “Expiration
      Date”).

     

    6. Termination
      of Service

     

    
      	 	
              (a)

            	
              If
                the Optionee’s Service with the Company ceases for any reason, the Options
                that, after giving effect to the provisions of Section 3, are then
                unexercisable will terminate immediately upon such
                cessation.

            

    

     

    
      	 	
              (b)

            	
              If
                the Optionee’s Service with the Company ceases for any reason other than
                Optionee’s resignation (other than for Good Reason), the Options that,
                after giving effect to the provisions of Section 3, are then exercisable
                shall terminate as of the sixtieth (60th)
                calendar day following the date of termination or, if earlier, upon
                the
                Expiration Date.  Provided however, that if all or any portion of the
                60-day exercise period shall be a period during which the Optionee
                is
                prohibited from trading in the Common Stock, then such 60-day exercise
                period shall be extended by an amount of time equal to any such prohibited
                period, but in no event beyond the Expiration Date. In the event
                of death,
                the exercisable Options may be exercised by the Optionee’s executor,
                personal representative or the person(s) to whom the Options are
                transferred by will or the laws of descent and
                distribution.

            

    

     

    
      	 	
              (c)

            	
              Notwithstanding
                anything in this Agreement to the contrary, the Options shall terminate
                in
                their entirety, regardless of whether the Options are then exercisable,
                immediately upon the Optionee’s resignation other than for Good
                Reason.  

            

    

     

    
      	 	
              (d)

            	
              If
                the Company and Optionee dispute the reason that Optionee’s Service with
                the Company has ceased, for purposes of this Agreement, such reason
                shall
                be determined by the Committee in good faith. Any determination made
                by
                the Committee with respect to any matter referred to in this Section
                6
                shall be final and conclusive on all persons affected thereby. For
                example, if pursuant to the Employment Agreement, the Optionee gives
                notice to the Company that he is resigning for Good Reason and the
                Company
                disputes that there is a Good Reason, for purposes of this Agreement,
                the
                Committee shall determine, in good faith, whether or not the Optionee’s
                resignation is for Good Reason, which determination shall be final
                and
                conclusive on all persons affected
                thereby.

            

    

     

    
      	
              7.

            	
               Intentionally
                Deleted

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              8.

            	
               Coordination
                With Other Agreements

            

    

     

    To
      the
      extent that the Optionee is a party to any agreement with the Company that
      contains covenants the same as or similar to those set forth in this Agreement
      (hereinafter referred to as the “Other
      Agreement”),
      the
      Optionee and the Company expressly agree that any remedy available to the
      Company under this Agreement is in addition to, and does not limit the
      enforceability of, any remedy available to the Company under such Other
      Agreement.

     

    9. Assignability

     

    Except
      as
      otherwise provided herein, these Options are not transferable otherwise than
      by
      will or the laws of descent and distribution or to an entity, for estate
      planning purposes, which is directly controlled by the Optionee and are
      exercisable during the Optionee’s lifetime only by the Optionee or, during the
      period the Optionee is under a legal disability, by the Optionee’s guardian or
      legal representative.  No assignment or transfer of these Options, or of
      the rights represented thereby, whether voluntary or involuntary, by operation
      of law or otherwise, except by will, the laws of descent and distribution or
      except as provided above, shall vest in the assignee or transferee any interest
      or right herein whatsoever, but immediately upon any attempt to assign or
      transfer these Options the same shall terminate and be of no force or
      effect.

     

    10. Non-Guarantee
      of Employment or Service Relationship

     

    Nothing
      in this Agreement will alter the at-will or other employment status or other
      service relationship of the Optionee with the Company, nor be construed as
      a
      contract of employment or service relationship between the Optionee and the
      Company, or as a contractual right to continue in the employ of, or in a service
      relationship with, the Company for any period of time, or as a limitation of
      the
      right of the Company to discharge the Optionee at any time with or without
      Cause
      or notice and whether or not such discharge results in the failure of any of
      the
      Options to become exercisable or any other adverse effect on the Optionee’s
      interests under this Agreement.

     

    11. No
      Rights as a Stockholder

     

    The
      Optionee shall not be deemed for any purpose to be a stockholder of the Company
      with respect to the shares represented by these Options until these Options
      shall have been exercised, payment and issue have been made as herein provided
      and the Optionee’s name has been entered as a stockholder of record on the books
      of the Company.

     

    12. The
      Company’s Rights

     

    The
      existence of these Options shall not affect in any way the right or power of
      the
      Company or its stockholders to make or authorize any or all adjustments,
      recapitalizations, reorganizations or other changes in the Company’s capital
      structure or its business, or any merger or consolidation of the Company, or
      any
      issue of bonds, debentures, preferred or other stocks with preference ahead
      of
      or convertible into, or otherwise affecting the Common Stock or the rights
      thereof, or the dissolution or liquidation of the Company, or any sale or
      transfer of all or any part of the Company’s assets or business, or any other
      corporate act or proceeding, whether of a similar character or
      otherwise.

     

    13. Adjustments

     

     If
      there
      shall occur any change with respect to the outstanding shares of Common Stock
      by
      reason of any recapitalization, reclassification, stock dividend, extraordinary
      dividend, stock split, reverse stock split or other distribution with respect
      to
      the shares of Common Stock, or any merger, reorganization, consolidation,
      combination, spin-off or other similar corporate change, or any other change
      affecting the Common Stock, the Committee shall, in the manner and to the extent
      that it deems appropriate and equitable to the Optionee, cause an adjustment
      to
      be made in (i) the number and type of securities subject to the Options, (ii)
      the Exercise Price of the Options, (iii) the vesting schedule of the Options,
      and (iv) any other terms of the Options that are affected by the
      event.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    14. Preemption
      by Applicable Laws or Regulations

     

    Anything
      in this Agreement to the contrary notwithstanding, if, at any time specified
      herein for the issue of shares of Common Stock, any law, regulation or
      requirements of any governmental authority having appropriate jurisdiction
      shall
      require either the Company or the Optionee to take any action prior to or in
      connection with the shares of Common Stock then to be issued, sold or
      repurchased, the issue, sale or repurchase of such shares of Common Stock shall
      be deferred until such action shall have been taken.

     

    15. Resolution
      of Disputes

     

    Any
      dispute or disagreement which shall arise under, or as a result of, or pursuant
      to, this Agreement shall be resolved by arbitration as set forth in the
      Employment Agreement.

     

    
      16. Invalidity
        or Unenforceability.

    

     

    It
      is the
      intention of the Company and the Optionee that this Agreement shall be
      enforceable to the fullest extent allowed by law.  In the event that a
      court having jurisdiction holds any provision of this Agreement to be invalid
      or
      unenforceable, in whole or in part, the Company and the Optionee agree that,
      if
      allowed by law, that provision shall be reduced to the degree necessary to
      render it valid and enforceable without affecting the rest of this
      Agreement.

     

    
      17. Waiver.

    

     

    No
      delay
      or omission by the Company in exercising any right under this Agreement shall
      operate as a waiver of that or any other right.  A waiver or consent given
      by the Company on any one occasion shall be effective only in that instance
      and
      shall not be construed as a bar or waiver of any right on any other
      occasion.

     

    18. Amendments

     

    This
      Agreement may be amended from time to time in a written document signed by
      the
      Optionee and the Company.  The Optionee and the Company agree that this
      Agreement shall be subject to any provision necessary to assure compliance
      with
      federal and state securities laws.

     

    19. Notice

     

    Any
      notice which either party hereto may be required or permitted to give to the
      other shall be in writing, and may be delivered personally or by mail, postage
      prepaid, addressed as follows:  to the Company at
      ____________________________ (Attention:  _____________________), or at
      such other address as the Company, by notice, may designate in writing from
      time
      to time; to Optionee, at the address as shown on the records of the Company,
      or
      at such other address as Optionee, by notice to the Secretary of the Company,
      may designate in writing from time to time.

     

    
      20. Tax
        Withholding

    

     

    At
      the
      time the Options are exercised, in whole or in part, or at any time thereafter
      as requested by the Company, Optionee hereby authorizes withholding from payroll
      or any other payment of any kind due to Optionee and otherwise agrees to make
      adequate provision for foreign, federal, state and local taxes required to
      be
      withheld, if any, which arise in connection with the Options.  The Company
      may require a cash payment to cover any withholding tax obligation as a
      condition of exercise of the Options or issuance of share certificates
      representing shares of Common Stock.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Committee may, in its sole discretion, permit satisfaction, in whole or in
      part,
      of any withholding tax obligation which may arise in connection with the Options
      either by electing to have the Company withhold from the shares of Common Stock
      to be issued upon exercise that number of shares, or by electing to deliver
      to
      the Company already-owned shares, in either case having a Fair Market Value
      equal to the amount necessary to satisfy the statutory minimum withholding
      amount.

     

    21. Fractional
      Shares

     

    Any
      fractional shares concerning an Option shall be eliminated at the time of
      exercise by rounding down for fractions of less than one-half (1/2) and rounding
      up for fractions of equal to or more than one-half (1/2).  No cash
      settlements shall be made with respect to fractional shares eliminated by
      rounding.

     

    22. Governing
      Law and Consent to Jurisdiction

     

    The
      parties agree that the formation, validity, interpretation and performance
      of
      this Agreement shall be governed and interpreted by the substantive laws of
      Delaware, without reference to its rules of conflicts of law. 

     

    
      23. Intentionally
        deleted

    

     

    24. Reservation
      of Shares

     

    The
      Company will reserve and set apart and have at all times, free from preemptive
      rights, a number of authorized but unissued shares of Common Stock deliverable
      upon the exercise of the Options sufficient to enable it at any time to fulfill
      all its obligations hereunder.

     

    25. Nonqualified
      Nature of Agreement

     

    The
      Options are not
      intended
      to qualify as incentive stock options within the meaning of section 422 of
      the
      Code, and this Agreement shall be so construed.  Optionee acknowledges
      that, upon exercise of the Options, Optionee will recognize compensation income
      in an amount equal to the excess of the then Fair Market Value of the shares
      of
      Common Stock over the Total Exercise Price and must comply with the provisions
      of Section 20 of this Agreement with respect to any tax withholding obligations
      that arise as a result of such exercise.

     

    26. Regulatory
      Compliance

     

    
      	 	
              (a)

            	
               No
                Common Stock shall be issued hereunder until the Company has received
                all
                necessary regulatory approvals and has taken all necessary steps
                to assure
                compliance with federal and state securities laws or has determined
                to its
                satisfaction and the satisfaction of its counsel that an exemption
                from
                the requirements of the federal and applicable state securities laws
                are
                available.  The Company shall have no obligation to effect any
                registration or qualification under federal or state laws of the
                Common
                Stock subject to this Agreement.

            

    

     

    
      	 	
              (b)

            	
               The
                Company may require that the Optionee, as a condition to exercise
                of the
                Options, and as a condition to the delivery of any share certificate,
                make
                such written representations (including representations to the effect
                that
                such person will not dispose of the Common Stock so acquired in violation
                of federal or state securities laws) and furnish such information
                as may,
                in the opinion of counsel for the Company, be appropriate to permit
                the
                Company to issue the Common Stock in compliance with applicable federal
                and state securities laws.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    27. Investment
      Representations

     

    The
      Optionee represents, warrants and covenants that:

     

    
      	 	
              (a)

            	
               Any
                shares purchased upon exercise of the Options shall be acquired for
                the
                Optionee’s account for investment only and not with a view to, or for sale
                in connection with, any distribution of the shares in violation of
                the
                Securities Act or any rule or regulation under the Securities Act,
                and
                that he will not distribute the same in violation of any state or
                federal
                law or regulation.

            

    

     

    
      	 	
              (b)

            	
               The
                Optionee has had such opportunity as he has deemed adequate to obtain
                from
                representatives of the Company such information as is necessary to
                permit
                the Optionee to evaluate the merits and risks of her investment in
                the
                Company.

            

    

     

    
      	 	
              (c)

            	
               The
                Optionee is able to bear the economic risk of holding shares acquired
                pursuant to the exercise of the Options for an indefinite
                period.

            

    

     

    
      	 	
              (d)

            	
               The
                Optionee understands that (i) the shares acquired pursuant to the
                exercise
                of the Options will not be registered under the Securities Act or
                under
                the securities laws of any state and are “restricted securities” within
                the meaning of Rule 144 under the Securities Act; (ii) such shares
                cannot
                be sold, transferred or otherwise disposed of unless they are subsequently
                registered under the Securities Act, and such registration or
                qualification as may be necessary under the securities laws of any
                state,
                or an exemption from registration is then available; and (iii) there
                is as
                of the date of this Agreement no registration statement on file with
                the
                Securities and Exchange Commission with respect to the Common Stock
                subject to this Agreement and the Company has no obligation or current
                intention to register any such shares acquired pursuant to the exercise
                of
                the Options under the Securities
                Act.

            

    

     

    By
      making
      payment upon exercise of the Options, the Optionee shall be deemed to have
      reaffirmed, as of the date of such payment, the representations made in this
      Section 27.

     

    28. Entire
      Agreement

     

    This
      Agreement contains the entire agreement between the parties with respect to
      the
      Options granted hereunder and controls over any inconsistent provision in the
      Employment Agreement.  Any oral or written agreements, representations,
      warranties, written inducements, or other communications made prior to the
      execution of this Agreement with respect to the Options granted hereunder will
      be void and ineffective for all purposes.

     

    

     

    [remainder
      of page intentionally left blank]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
      duly authorized officer, and you, as the Optionee, have hereunto set your hand
      and seal, on the dates set forth below.

     

    
      	 	
              ELECTRIC
                AQUAGENICS UNLIMITED, INC.

               

            
	 	 
	 	 
	 	
              By:
                /s/ Jay Potter

               

            
	 	
              Title: 
                Interim CEO

               

            
	 	
              Date:  10/24,
                2006

               

            

    

    

     

    

     

    

     

    
      	 	
              THE
                OPTIONEE:

               

            
	 	 
	 	
              /s/
                Wade R. Bradley

               

            
	 	
              Name
                WADE R. BRADLEY

               

            
	 	
              Date: 
                10/24, 2006

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